Topic Author
Posts: 1953
Joined: Mon Nov 12, 2001 7:51 pm

Codeshare Costs

Fri Sep 19, 2003 7:17 pm

Do airlines that codeshare on another airline's flight have to pay a section of the costs in return for the revenue generated by selling the seats on that flight? Or does all the money just go to the airline flying the flight?
Posts: 15080
Joined: Thu Aug 14, 2003 4:36 pm

RE: Codeshare Costs

Fri Sep 19, 2003 8:01 pm

I would imagine it depends on the type of codesharing arrangmement, but the marketing carrier will certainly get some of the money. If it is a Block Space agreement, the marketing carrier will buy a block of seats from the operating carrier at a fix price, and sell them for whatever money they can get. If it is a freeflow agreement, where the marketing carrier continues selling space on the operators flight until the operator closes the flight for sale, then I would imagine some kind of revenue sharing is in place, either or a per seat sold basis or for the whole flight.

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