143k views
3 votes
Delta Airlines' management of U.S. sales for the KLM Royal Dutch Airlines is an example of a marketing alliance. True or False?

User Honorable
by
7.0k points

1 Answer

4 votes

Final answer:

True, Delta Airlines' management of U.S. sales for KLM Royal Dutch Airlines is an example of a marketing alliance. Such alliances are common in the airline industry to expand market reach and should not be confused with predatory pricing, which is a separate issue.

Step-by-step explanation:

Delta Airlines' management of U.S. sales for KLM Royal Dutch Airlines is indeed an example of a marketing alliance. A marketing alliance is an agreement between two or more companies to cooperate in marketing, sales, or other aspects of business to advance mutual goals. The airline industry, including companies such as United Airlines, Delta Airlines, and American Airlines, often forms alliances and partnerships to expand their market presence and improve competitive positioning. True.

These alliances can sometimes lead to concerns regarding competition, as evidenced by accusations of predatory pricing among larger airlines towards smaller competitors. This is a practice where large airlines may set prices below average costs to oust competitors, which has raised legal issues and prompted lawsuits in the past. However, alliances like the one between Delta and KLM are typically aimed at synergizing efforts and expanding reach rather than diminishing competition through predatory practices.

User Cfulton
by
8.6k points