Franchise, Codeshare and Subsidiary

[ASCIL]

Sorry to be acting the dum fool, but could someone help me to define a Franchise, Codeshare and Subsidiary...? :sad:

Thank you :)

[CentreFix25]

Put all of those words into a search engine one at a time and you'll find your answer.

[In trim]

1. Franchise - A separate airline (which may or may not have an element of ownership from the main carrier) who operates in the carriers colours (or a derivative), and essentially operates the service as if it was the main carrier or subsidiary. It is bound by the main carrier to work in a particular way.
e.g. Judging by your 'ASCIL' name I guess the most familiar franchises would be how CityFlyer Express and other franchises operated in BA colours for years, even though there was (at the time) no BA ownership.

2. Codeshare - Marketing partnership between 2 carriers, who block an allocation of seats on each other's flights and sell under their own fllight number. e.g. Continental and Emirates....EK lights ex-UK also carry CO flight numbers. This enhances the ability to sell to the American Market for passengers travelling USA-LON-AUH-....

3. Subsidiary - Owned by the main carrier.
May be operated as a separate entity, particularly to keep costs down, and may have a totally separate management team, albeit the ownership and board level are dictated by the main carrier. This is typical in many regional subsidiaries which need to be run as a separate entity in order to keep costs and operational focus at 'regional' rather than 'international' levels.

There are some grey areas....returning to my first example, Brymon were for years (part-)owned by BA, but the relationship was managed in the same way as the other franchise airlines, therefore Brymon effectively came under (3) but for consistency with others, was largely managed as (1).

Hope this makes sense!

[The SSK]

I don't believe, although I may be mistaken, that codeshare agreements normally involve blocked-space agreements.

Codesharing is essentially a way to improve the way a journey is displayed on the Computer Reservations Systems (CRS) screens. Usually nonstops are displayed at the top of the screen, then through services, then online (i.e. same airline) connections, then interline (different airline) connections.

The great majority of bookings are made from the first screen. A codeshare - for example a BA London-Edinburgh carrying an Iberia flight number - allows an interline connection MAD-(IB)-LON-(BA)-EDI to be displayed as an IB online connection and thereby boosting it up the pecking order.

In the same way an airline might take an online connection between two of its flights and give it a false flight number to make it look like a through flight (with the annotation 'plane change at intermediate stop')

[In trim]

desk jockey, you are correct, my error.

[ASCIL]

:O

In Trim - Thank you, that makes 1 and 3's definitions make sence to me now. You clearly know your stuff! I'm still a little confuddled (!) about codeshares though. Does it mean the airlines share their ckin/lounge/gates facilities and inflight services???

:)

[In trim]

ASCIL,

No, not necessarily. Whilst partners in an alliance (e.g. Oneworld) may (though not always) tend to share facilities, and will often be handled in the same area and by the same handling agent, codeshares are often a lot looser than this....it is primarily a marketing tool for enhanced availability on the res systems, as explained by desk jockey.

At LGW there are numerous codeshare examples, with the likes of CO, EK, BE, etc. and others all participating in codeshare agreements, but essentially making there own handling, lounge, and check-in arrangements.

Regards to all at ASCIL!!

In trim.