Codeshare Agreement Meaning
One of the most common types of code sharing is free-share, which is also the most difficult to manage from an airline perspective. In this type of agreement, both airlines conclude a contract for the publication of the other airline`s flights. This type of agreement mainly involves no restrictions or very few rules for a number of seats that it can sell on the flight within capacity limits. When a flight is sold under multiple identification and flight numbers, as described above, the flight published by the “administration company” is usually referred to as “Prime Flight” (unlike a codeshare marketing flight). You have purchased a ticket for a flight. You go to the airport and find your flight number on the departure panel. For now, everything is normal. But if you show up at the door, the airline you thought you were flying is nowhere and it`s the logo of another airline on the side of the plane. You just saw code sharing. This type of codeshare agreement is less formal than other types of contracts based on revenue participation. This type usually covers a number of partner flights and is very diverse. In this case, it is the exporting airline that has the most control over issues such as flight plan changes, seat assignments, etc.
(www.aa.com/content/uk/agency/partners/codeshares.jhtml) All major airlines are parties to one or more codeshare agreements. There are well-known codeshare alliances, for example “Star Alliance” with (currently) 27 member airlines, including Lufthansa, SAS, Singapore Airlines and Swiss. The codeshare agreement helps passengers by providing them with clearer itinerary options and allowing them to book one- to three-point trips under an airline`s code. This is advantageous if the customer books from point one to two under one code, then from two to three under the other code. This case saves passengers the time they have to spend between connections. This type of agreement offers airlines that do not use their operation or aircraft on a given route a good way to position themselves in the market by displaying their flight numbers. It is also true that when an airline sacrifices its capacity to airlines other than codeshare partners, its operating costs are usually reduced to zero. In 2011, the DOT made it mandatory for airlines to clearly disclose when a flight was made as codeshare.
In this case, the words “operated by” and the name of the other airline appear on all ticketing information. Most major airlines use codeshare agreements in cross-sector partnerships and alliances. On a codeshare flight, two or more airlines offer a flight under their own flight number and sell each of the seats, but the actual flight is only operated by one airline. . . .