Kenya airways, Air France and KLM are member airlines of Sky Team, an alliance that is
dedicated to providing passengers with a seamless travel experience at every step of
their journey. The three airlines are competing to be the best provider of air transport
experience for customers in East and Central Africa. Market data base maintained by Sky
Team reveals the following customers’ purchasing behavior regarding the three airlines.
Current Preference Previous Prevalence Number of Customers
Kenya Airways Air France 240
KLM KLM 300
Air France Kenya Airways 150
KLM Air France 125
Kenya Airways Kenya Airways 600
Air France KLM 60
KLM Kenya Airways 75
Kenya Airways KLM 390
Air France Air France 450
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i) Make use of the information provided to advise management of Sky Team on the
behavior of market share of member airlines after the first three purchases.
(4 marks)
ii) Analyze the implications of the long-run customers purchasing behavior to
operations of the three airlines? (4 marks)