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Interlining Question  
User currently offlineCiro From Brazil, joined Aug 1999, 662 posts, RR: 6
Posted (13 years 1 week 11 hours ago) and read 3549 times:

Hello everyone,

I've been quite puzzled lately... Can one consider interlining agreements between airlines, especially those held for e-ticketing purposes a commercial alliance?

Your inputs will be highly appreciated!


The fastest way to become a millionaire in the airline business is to start as a billionaire.
6 replies: All unread, jump to last
User currently offlineFutureFO From Ireland, joined Oct 2001, 3132 posts, RR: 19
Reply 1, posted (13 years 1 week 10 hours ago) and read 3516 times:

It depends UA has e-ticket agreements with US/CO and DL. None of which are in alliance with the STAR group. Also would it be the same with FF plans? This is a question that coincides with the above posted question.

I Don't know where I am anymore
User currently offlineRjnut From United States of America, joined Dec 1999, 1552 posts, RR: 0
Reply 2, posted (13 years 1 week 8 hours ago) and read 3497 times:

Interline ticketing does assume a certain degree of alliance in that the two (or more) carriers agree to transport you from point a to point b and accept mutual responsibility to accomplish that goal..
American Airlines is going to play hardball with interline agreements , and essentially cancel agreements with carriers that cannot or will not do exclusively "e" ticket arrangements by end of 2004.

User currently offlineSegmentKing From , joined Dec 1969, posts, RR:
Reply 3, posted (13 years 1 week 4 hours ago) and read 3457 times:

Interline agreements basicly state that Airline A can ticket on Airline B, and Airline B can ticket on Airline A. The agreement can also include for seemless transfer of luggage, and employee pass benefits. That's about all an "interline" agreement contains...


User currently offlineCiro From Brazil, joined Aug 1999, 662 posts, RR: 6
Reply 4, posted (13 years 6 days 14 hours ago) and read 3425 times:

My understanding of an alliance among airlines is a common cooperation understanding, which is exclusive between the involved parties and may cover a narrow or broad range of activities. It can be as simple as code-sharing or as complex as a branding, like "Star Alliance".

But, isn't interlining managed by IATA? If not, what is its role on it?


The fastest way to become a millionaire in the airline business is to start as a billionaire.
User currently offlinePatroni From Luxembourg, joined Aug 1999, 1403 posts, RR: 12
Reply 5, posted (13 years 6 days 10 hours ago) and read 3384 times:

An Interline agreement (both pax or cargo) is normally either a bilateral contract between airlines or a multilateral cooperation, like the IATA Multilateral Interline Agreement (MITA - IATA Resolution 660). In an interline agreement, the airlines set rules for the mutual recognition of tickets or Air Waybills, for liabilities and for administrative provisions. Basically, an airline that enters an interline agreement with another one states that they will accept each others tickets.

On top of this basic interline agreement you need two further agreements :

1) a settlement agreement, where it is stipulated how the open amounts between airlines will be invoiced/settled. This can be e.g. via direct billing between the carriers or via the IATA/ATA Clearing Houses which balance the invoices of each airlines against each other.

2) a Prorate agreement. This defines the amount of money or the share of the total journey price is given to which partner. Again there are several possibilities : This can be a participation in the IATA Multilateral Prorate Agreement which splits the revenues according to certain published proration factors (basically comparing the lengths of the concerned sectors and put them into relation) but it can also be a bilateral special prorate agreement where the airlines either negotiate their own proration figures or even net rates which are charged on a flat basis for a certain sector.

An interline agreement can be considered as a very loose form of an alliance. In some cases it forms the first step of such an alliance, followed by codeshare flights etc.



User currently offlineCiro From Brazil, joined Aug 1999, 662 posts, RR: 6
Reply 6, posted (13 years 3 days 15 hours ago) and read 3347 times:

Thank you all for the valuable insights!

The fastest way to become a millionaire in the airline business is to start as a billionaire.
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