Part III Case Study (15 points) CLOSING CASE: Will American Airlines' North Atlantic Joint Venture Fly? In 2011, American Airlines and Japan Airlines began sharing routes that connected mainland North American to East Asia. It was similar to other joint ventures. In 2008, American Airlines, British Airways, and lberia sought approval for a nonequity joint venture. These types of relationships are not new but have increased in recent years due to profit pressures. The major reasons airlines enter into these agreements are to better control capacity, avoid price competition, and improve gate utilization. No single airline has the capacity to serve the whole world, yet passengers want to travel the whole world with a seamless experience. Although deregulation of the airline industry occurred in the u.s., the government continues to play a large role in oversight and intervention in the airline industry. These three airlines can overcome antitrust provisions that prevent them from discussing and coordinating schedules, fares, and routes already belong to the Oneworld Alliance but want to enter into this joint venture so they Questions 1. Both the Star and Sky Team alliances have depended more on mergers and acquisitions (M&A) than has the Oneworld alliance. For instance, Delta and Northwest (Sky Team) have merged, and Continental and United (Star) are in process of merging at this writing. What are the advantages and disadvantages of M&A versus non-equity alliances in this industry? ho thar providas prolcch