This research focuses on services based on alliance and devises a novel concept called service alliance. Service alliance uses service as the unit that companies can exchange, furnish, and share services in the alliance. Service alliance emphasizes on the representation and exchange for value of single service from an individual company. This research utilizes game theory to discuss the best action of service alliance in competition. We use airline industry as the example and expect to contribute to any service industry. The results show that four strategies are similar to the process from competition to cooperation. The best case is that the members in the alliance co-fund a new service team to serve all members. We hope the proposed concept can be applied to all service industry and create a new operation model for alliance.
