US A333 PIT
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Details Regarding How Code-share Agreements Work

Fri May 23, 2003 2:19 am

In the Star Alliance do all the participating airlines allocate a certain number of seats on certain flights to be sold by partner airlines? For example, in the sky team alliance, does Delta give a percentage of their seats on their LAX-OGG route to Air france to be sold by them? Does air france basically own that percentage of seats on that flight? If Air france doesn't sell all of those seats, does Delta have the right to sell them? Please explain as much about codesharing as possible. If they're different kinds, please tell me the differences. Thanks.
 
artsyman
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RE: Details Regarding How Code-share Agreements Work

Fri May 23, 2003 2:52 am

When an airline actually holds seats for the partner to sell, this is a little more than a standard codeshare. Continental and Virgin did that sort of an arrangment where Continental actually owned seats on the Virgin flight and Virgin owned seats on the Continental flight. Virgin had to pay Continental for those seats whether they were sold or not. This is called a hard block agreement.

Standard codesharing means that the partners can sell as many seats on that flight as they can. The benefit is that two airlines manage to sell tickets for the same flight meaning more customers have access to the seats, and airlines have more access to customers.

Jeremy
 
US A333 PIT
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RE: Details Regarding How Code-share Agreements Work

Fri May 23, 2003 3:29 am

Yea, but if US Airways sells 75% of the seats on a United flight, say DEN-SNA, and UA has to operate and pay for the flight, how does UA see any benefit? They're only receiving revenues from 25% of that airplane and are stuck incurring all the cost to operate it.
 
artsyman
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RE: Details Regarding How Code-share Agreements Work

Fri May 23, 2003 4:47 am

Yea, but if US Airways sells 75% of the seats on a United flight, say DEN-SNA, and UA has to operate and pay for the flight, how does UA see any benefit?
*************
Us doesn't get the revenue for those flights, UAL gets it. Even though 75% were sold via US air. US and UAL will have an agreement that the other gets a % of the revenue for the sale, but it isnt a lot of total.
 
762er
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RE: Details Regarding How Code-share Agreements Work

Wed May 28, 2003 12:14 pm

Regardless of what airline name (UA or US) is on the ticket, only the airline operating the flight gets the revenue. I can't confirm how it works for other alliances.
 
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RE: Details Regarding How Code-share Agreements Work

Thu May 29, 2003 11:37 am

Above response not true- the revenue would be shared between the selling carrier and the operating carrier. As indicated above, there are different types of code-sharing deals in terms of allotments.