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.