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* Economic rationale for Code-sharing

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* Economic rationale for Code-sharing

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Old 23rd Oct 2005, 11:27
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Question * Economic rationale for Code-sharing

I've heard that operational costs are all born by the operating airline which would make C-S only a revenue sharing plan which confuses me...does anyone have information about the economic rationale of Code-sharing.
any links/documents are welcome.
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Old 23rd Oct 2005, 19:36
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There is no book with "how to operate a code share"it is a deal that is made in as many variantes as there are code shares. You can get them as punisdhing or as profitable as you imagin for either party.
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Old 25th Oct 2005, 09:03
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From a recent post on passengers & SLF:

quote
Codesharing is a way to boost an airline's position on the reservations computer screen. Generally speaking, when a prospective passenger asks for a particular journey, travel options are listed in the following order:

Nonstop flights
Direct multi-sector flights
Online (=same-airline) connections
Interline (=different airline) connections

Codesharing effectively changes an interline connection into an online connection, moving it up the screen where it's more likely to be proposed by the agent.
unquote

So codesharing is essentially aimed at attracting traffic from a competing network, the revenue for which will be shared pro rata between the two partners as if it were an interline connection.
 
Old 25th Oct 2005, 10:26
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So codesharing is essentially aimed at attracting traffic from a competing network, the revenue for which will be shared pro rata between the two partners as if it were an interline connection.
Totally disagree. that is only the case if the bilateral says so. But again it is what you put in the contracts and they vary.
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