Codesharing
Codesharing is a marketing arrangement where two or more airlines share the same flight. Under this agreement, flights are operated by one airline (the operating carrier) but are marketed and sold by the other(s) as well. This practice allows airlines to expand their network reach without additional operational costs, providing passengers with more flight options and potentially more competitive pricing.
History
The concept of codesharing emerged in the late 1960s when airlines started to realize the benefits of interlining. However, it wasn't until the deregulation of the airline industry in the 1970s in the United States that codesharing began to take shape. The first formal codeshare agreement was established between Alitalia and KLM Royal Dutch Airlines in 1989. This arrangement allowed both airlines to offer flights between Italy and the Netherlands under their respective codes.
How It Works
- Flight Designation: The operating airline assigns a flight number, but the marketing airline(s) can also assign their own flight number to the same flight. For example, a flight operated by Delta Air Lines might also be sold by Air France with their flight number.
- Seamless Travel: Passengers can book a single itinerary that includes flights operated by different airlines, often appearing as a single journey on the ticket.
- Marketing and Sales: Airlines share revenue from ticket sales, but the specifics of these agreements can vary widely.
- Check-in and Baggage: Passengers check-in once for their entire journey, and their baggage is checked through to the final destination, simplifying travel across multiple airlines.
Benefits
- Expanded Network: Airlines can offer flights to destinations they do not serve directly.
- Increased Passenger Traffic: By offering more destinations, airlines can attract more passengers.
- Operational Efficiency: Sharing routes can lead to better utilization of aircraft and crew.
- Customer Convenience: Passengers benefit from more options, potentially lower fares, and easier connections.
Challenges
- Complexity: Managing codeshare agreements can be complex due to different operational procedures, standards, and legal frameworks.
- Customer Confusion: Sometimes, passengers might not be aware they are traveling on a different airline for part of their journey, leading to potential dissatisfaction if expectations differ.
- Regulatory Oversight: Codesharing agreements are subject to regulatory scrutiny to ensure they do not violate competition laws.
Regulation and Oversight
Many countries have regulations overseeing codesharing to prevent anti-competitive practices. For instance, in the United States, the Department of Transportation (DOT) and the Federal Aviation Administration (FAA) have oversight, while in the European Union, the European Commission plays a similar role.
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