Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Questions About Code Share Flights  
User currently offlineAio86 From United States of America, joined Sep 2000, 928 posts, RR: 0
Posted (8 years 1 month 2 weeks 4 days 8 hours ago) and read 2157 times:

Hi all,

I would like to ask a couple questions about code sharing in general.

I understand the premise of an airline puting its code on a flight operated on another airline's metal. My questions are the following:

1. When an airline codeshare's on a flight, and they sell a seat on another flight, do they make any revenue or does it go straight to the operating airline? Do they get allocated a certain number of seats that they can sell per flight until the operating airline sells out or are they given their own stash of X% of the seats to sell. This seems rather difficult when you see a UA flight from LAX-ORD with seven other airlines' codes on it. To give an example, when AS sells a seat on a SFO-LAX flight opperated by AA, who makes the profit?

2. Similar question is how airlines can sell cheaper tickets than on the opperating airline. I wouldn't call it common, but I have looked for tickets and two examples of this come to mind. One, LAX-SFO flights being cheaper when bought through AS than through AA when AA is opperating the flight and LAX/SFO-PEK being sold for less by Air China though operated by United. What happens when Air China is government owned and can (potentially) set prices lower than competition because of its cash resources? Has this ever been a problem (in terms of the case we are discussing here)?

Thank you for your responses and insight.

3 replies: All unread, jump to last
 
User currently offlineAio86 From United States of America, joined Sep 2000, 928 posts, RR: 0
Reply 1, posted (8 years 1 month 2 weeks 3 days 20 hours ago) and read 2088 times:

Any one?

I find it hard to believe that no one on this forum knows these answers.

Thanks again.


User currently offline6thfreedom From Bermuda, joined Sep 2004, 3314 posts, RR: 20
Reply 2, posted (8 years 1 month 2 weeks 3 days 14 hours ago) and read 2067 times:

OK,
this is my understanding.

There are two forms of codeshare. A blocked seat arrangement, or freesale.

On a blocked seat arrangement, the marketing carrier will purchase any given number of seats the operating carrier.

The price is pre arranged for a certain period of time.

So, the marketing carrier might purchase 4 first, 10 business and 20 economy seats at $1000, $800 and $500 respectively. Regardless of whether it sells them or not, it must pay the opearting carrier that amount.

In this scenario the operating carrier might offer them at a good rate, as it provides fixed income regardless of whether they are sold or not.

Under a freesale agreement, the marketing carrier can sell as many seats as long as they are availble in that class. Again, there is a slight reduction to the marketing carrier on the net rate, so that profit goes to them.


2. If an airline has a blocked space arrangement and isn't able to sell those seats, particularly during low season, it is best for them to sell those seats at a loss and earn some revenue, rather than not selling them at all.


I'm no expert in the area, but I hope that helps...


User currently offlineLegacyins From United States of America, joined Aug 2003, 2022 posts, RR: 0
Reply 3, posted (8 years 1 month 2 weeks 3 days 2 hours ago) and read 2032 times:

Well I can tell you that I take advantage of codeshare agreements all the time. I travel from SFO-Beijing about three times per year. I always buy a business class ticket through Air China but fly on UA Aircraft. The average fare for CA is $3500 compared to $5000 on a UA ticket.


John@SFO
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Why Interline Ticketing On Non-code-share Flights? posted Mon Sep 4 2006 07:42:42 by Lrgt
US Airways.com Not Showing Code-share Flights? posted Fri Jul 7 2006 21:01:25 by PHLJJS
Code Share Flights posted Tue Feb 8 2005 01:48:49 by Bkonner
Code-share Flights Info On AA/UA Jet posted Fri Sep 14 2001 17:31:41 by Jiml1126
US Approves Code-share Flights To Vietnam posted Mon Aug 27 2001 06:36:23 by Jiml1126
A Few Questions About Her Majesty's Royal Flights. posted Sun Sep 24 2006 14:05:47 by 8herveg
LF Questions About Flights To ARN And GOT posted Fri Jun 9 2006 12:54:21 by Koper
WN To Code Share On International Flights posted Fri Apr 21 2006 01:58:58 by Wnsocal
UA Honoring Code Share US Flights... posted Sat Oct 16 2004 04:43:12 by BOSugaDL
Qantas Code Share GF Flights From BAH To BEY posted Sun Dec 21 2003 06:28:05 by Yegbey01