Established airlines formed strategic alliances such as SkyTeam, Oneworld, and Start, in order to be more competitive both locally and globally. Airlines partnered with one another not only to achieve network size economies through initiatives such as code sharing, but also to achieve scale economies in the purchase of fuel and even of aircraft. A new entrant faced a potentially high cost of operation because it took a long time to gain access to these types of arrangements and take advantage of the cost reductions that resulted from alliance building.