1. Take a situational view of organization design: What roles have technology and environment played in the development of alliances and virtual organizations in the airline industry? In what ways does the corporate-level strategy of joining an alliance affect an airline's organizational functions?

2. In what ways might the divisional (M-form) designs of most airlines lend themselves to the requirements of alliance membership? In what ways might they be compatible with the organizational needs of the alliances themselves?

3. According to one industry analyst, "in a scale business ... size does matter." What does he mean by "a scale business"? Why is the airline industry "a scale business"? Once you've thought about these two questions, how would you describe the "specific opportunity" which, as virtual organizations, airline alliances are designed to exploit?

4. Have you ever been on a flight that involved a code sharing arrangement? Did you notice then or do you realize now - that there were advantages to the practice of code sharing? Based on what you know about airline travel, list a few of the possible advantages of code sharing for passengers.