How Exactly Does Codeshare Pricing Work?

ntspelich · Wed Aug 20, 2003 1:04 am

This is one that I've been wondering about for a bit. How exactly does codesahre pricing work? For example:

PIT-LAX on 9/10/03 - one way, economy
US01 $386
UA3067 $291

ORD-AMS, 9/10/03 - one way, economy
UA966 $373.90
US6966 $2146.90

LAX-FRA, 1/3/04-1/7/04 - economy
LH457/456 - $866.16
UA8844/8845 - $3047.16

IAD-SAN, 11/10/03-11/15/03 - first
NW1407/277-276/1404 - $1148
CO6407/5277-5276/6404 -$1157

Is it that the non-operating airline has to pay the operator for the right to put their # on those flights, or the operator would simply have people booking through them if they're going to be riding in their metal?

Thanks
NS

artsyman · Wed Aug 20, 2003 3:16 am

Generally the airline that actually carries the passenger gets the revenue. The question people usually ask is why bother having the codeshare then if someone else gets the revenue. Well some of the reasons are:

You get to keep control of your customer by being able to offer them more destinations.

It allows your partner the same priviledge, and you get the revenue when it is their passenger flying with you.

ntspelich · Wed Aug 20, 2003 3:34 am

Then why such drascit price differences, such as the $1773 for the UA/US ORD-AMS, if the rev is going to the operator?

andersjt · Wed Aug 20, 2003 3:41 am

As with any fare, with any carrier, so many seats in each fare class are alloted to code share partners for each flight. In your example of ORD-AMS, UA allocated a certain number of seats to US codeshares; the fare difference you are seeing is coming from US's system as the cheaper fares allocated for that city pair are already booked. As a US frequent flier, you would have to book code share at the higher fare to get your FF miles, and United would keep the revenue.

Vimanav · Wed Aug 20, 2003 5:06 am

Codeshare pricing can work on different principles as determined and agreed upon by the two signing carriers. It may be a revenue share like LH/AC on Germany/Canada vv routes or it may be credited to the operating carrier like in case of LH/UA codeshares. It can also be like the AI codeshares with various international carriers operating from India whereby they have a commercial agreement in which a certain block of seats usually 30-55 depending on aircraft type is given to AI at an agreed price. Sometimes the share is more than just a pound of flesh like in the case of AI/VS where VS actually operates on AI's traffic rights into LON. These are only some examples, there are various other types as well where each airline fixes its share with the codeshare partner on mutually agreed terms for various routes and periods.

rgds//Vimanav

ntspelich · Wed Aug 20, 2003 5:29 am

THanks to everyone for the clarification

NS

How Exactly Does Codeshare Pricing Work?

How Exactly Does Codeshare Pricing Work?

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