Ciro
Topic Author
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

Interlining Question

Fri May 02, 2003 1:08 am

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!


Ciro
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
FutureFO
Posts: 2811
Joined: Sat Oct 06, 2001 10:58 pm

RE: Interlining Question

Fri May 02, 2003 2:28 am

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.
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RJNUT
Posts: 1182
Joined: Thu Dec 30, 1999 1:58 am

RE: Interlining Question

Fri May 02, 2003 4:10 am

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.
 
SegmentKing
Posts: 3224
Joined: Sun Aug 27, 2000 7:16 am

RE: Interlining Question

Fri May 02, 2003 8:23 am

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...

-n
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Ciro
Topic Author
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RE: Interlining Question

Fri May 02, 2003 9:55 pm

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?

Cheers!

The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
patroni
Posts: 1372
Joined: Sat Aug 14, 1999 7:49 am

RE: Interlining Question

Sat May 03, 2003 2:30 am

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.

Cheers,

Thomas
 
Ciro
Topic Author
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Joined: Mon Aug 16, 1999 5:00 pm

RE: Interlining Question

Mon May 05, 2003 9:12 pm

Thank you all for the valuable insights!
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