Coopetition strategies for airlines based on game theory

This study focuses on the game theory aiming to create coopetition strategy for airlines based on various forms of cooperation. Airlines have created networks of alliances and signed code sharing agreements in order to increase the competitive advantages and customer benefits, which include increasing number of destinations, reducing costs, promoting innovation, increasing the level and standards of customer service, and increasing company's brand recognition that individual companies cannot provide. 

Previous literature studies on coopetition strategy focus on the interaction analysis of only two players in the game, the setting is limited to the symmetric pure Nash strategy equilibrium. However, the main objective of this study is to create the coopetitive strategic games for Emirates Airlines and Etihad Airways based on the different types of cooperation with non-opposite interests that allows to identify which games can be played in each conflict of interest and situation in future development faced by airlines in their operating environments.

Keywords: game theory,  cooperation,  coopetition strategy,  airline, Emirates Airlines,  Etihad Airways. 
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