This paper evaluates the triangular business relationship among regional authorities, airports and airlines by analyzing the business relationship between the state of Saxony, Leipzig/Halle airport and DHL.
The case study under investigation is the relocation process of the European hub of DHL to Leipzig/Halle airport known as ‘project Pegasus’. The paper contributes to the existing literature by offering a model of interdependencies of a triangular business relationship and by arguing that constructing interdependencies is crucial for successful and positive business relationships among regional authorities, airports and airlines. The interdependency of each party on its counterparts creates commitment, builds trust and constitutes strong governance mechanism for executing joint investment initiatives.
During negotiations, the three parties should incorporate each party’s individual strategy into the triangular group’s overall strategy, thus achieving a positive end result for future collaborations.
Content
1. Introduction
2. Literature Review
2.1. Regional authorities - airports interaction
2.2. Ownership and governance
2.3. Regulatory and financial support
2.4. Regional authorities - Airlines interaction
2.4.1. Regulation
2.4.2. Aid to airlines
2.5. Airports - Airlines interaction
2.6. Airlines-Airports empirical analysis
3. Case Study - The Relocation of the DHL Hub to Leipzig/Halle
3.1. The parties of the triangular
3.1.1 The state of Saxony
3.1.2 Leipzig/Halle airport
3.1.3 DHL
3.2. The relocation process
3.2.1. Background
3.2.2. The components of the relocation agreement
3.2.3. Success Factor
4. Discussion
4.1. Evaluation of the triangular business relationships
4.1.1. Benefits and criticism
4.1.2. The Interdependencies of the triangular relationship
4.2. Triangular negotiations
4.2.1. Positive triangular negotiations
4.2.2. Roadmap for future triangular negotiations
5. Conclusion
References
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