"The alliance with air Berlin is attractive for me. I can use the whole sales network of the air Berlin and 24 percent of my own airline at air Berlin sold"

In the quote by Niki Lauda, the accomplished Formula 1 chauffeur and air travel entrepreneur, he reflects on a strategic business choice worrying his airline enterprise. Lauda is going over an alliance formed with Air Berlin, which he defines as beneficial or "appealing" for himself.

First of all, the partnership allows Lauda to tap into Air Berlin's extensive sales network. This access represents a significant expanding of market reach and customer base for his airline. Sales networks in the airline company market are important, encompassing relationships, contracts, and marketing channels that can considerably improve ticket sales and brand name presence. For Lauda, leveraging such a recognized network suggests instant operational benefits, including expense performances and market penetration that would otherwise take considerable time and resources to develop independently.

Secondly, Lauda mentions selling "24 percent of my own airline at Air Berlin". This statement most likely refers to the sale of a 24% stake in his airline, FlyNiki, to Air Berlin. By divesting this part of ownership, Lauda gains capital, which can be reinvested into other company areas or used to support financial standings. This relocation shows a calculated risk-and-reward scenario, where Lauda sacrifices some control over his airline company in exchange for financial gain and strategic partnership advantages.

Furthermore, such an alliance could offer functional synergies. Air Berlin and Lauda's airline might mutually benefit from shared resources, decreased functional redundancies, and improved service offerings. Resource sharing, like code-sharing agreements, cost-sharing on routes, and joint ventures in maintenance or procurement, are common in airline alliances. These can result in economies of scale, directly impacting profitability and competitiveness.

In summary, Niki Lauda's quote underscores a strategic decision to line up with Air Berlin, utilizing their network to enhance his operations, while likewise taking in monetary gains by offering a stake in his airline. This move denotes tactical foresight, looking for instant benefits and long-term sustainability in a highly competitive industry.