Code sharing
Encyclopedia
A codeshare agreement, sometimes simply codeshare, is an aviation business arrangement where two or more airlines share the same flight. A seat can be purchased on one airline but is actually operated by a cooperating airline under a different flight number or code. The term "code" refers to the identifier used in flight schedule, generally the two-character IATA airline designator code and flight number. Thus, XX123, flight 123 operated by the airline XX, might also be sold by airline YY as YY456 and by ZZ as ZZ9876. It allows greater access to cities through a given airline's network without having to offer extra flights, and makes connections simpler by allowing single bookings across multiple planes. Most major airlines today have code sharing partnerships with other airlines and code sharing is a key feature of the major airline alliance
s.
Under a code sharing agreement, the airline that actually operates the flight (the one providing the plane, the crew
and the ground handling
services) is called the operating carrier
. The company or companies that sell tickets for that flight but do not actually operate it are called marketing
carriers or validating carrier
s.
joined with US Airways
predecessor, Allegheny Airlines
, in the nation's first codeshare relationship. The term "code sharing" or "codeshare" was coined in 1989 by Qantas
and American Airlines
, and in 1990 the two firms provided their first codeshare flights between an array of U.S. domestic cities and Australian cities. Code sharing has become widespread in the airline industry since that time, particularly in the wake of the formation of large airline "alliances". These alliances have extensive codesharing and networked frequent flyer programs.
sales (also known as "seat booking") strategies (revenue management
, variable pricing
, and geo-marketing
). Most passenger
s and travel agents
have a preference for flights that provide a direct connection. Code sharing achieves this. Computer reservations systems (CRS) also often do not discriminate between direct flights and code sharing flights and present both before options that involve several isolated stretches run by different companies.
Criticism has been leveled against code sharing by consumer organization
s and national departments of trade since it is claimed it is confusing and not transparent to passengers.
. These as more formally known as an air-rail alliance
, but more commonly known as Rail & Fly due to the popularity of the Deutsche Bahn codeshare with many airlines. They involve some integration of both types of transport, e.g., in finding out the fastest connection, allowing exchange between an air ticket and a train ticket, or a step further, the air ticket being valid on the train, etc. See also list of current air-rail alliances
or a list of IATA-indexed railway stations. In Europe these air-rail alliances are used to divide markets by selling these combination tickets abroad for a lower price to attract more customers. The systems also prevent local customers from buying these much cheaper tickets as the customer is only allowed to board the plane with a valid train stamp from a station outside the country.
Airline alliance
An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance...
s.
Under a code sharing agreement, the airline that actually operates the flight (the one providing the plane, the crew
Aircrew
Aircrew are the personnel who operate an aircraft while in flight. The composition of the crew depends on the type of aircraft as well as the purpose of the flight.-Civilian:*Aviator** Pilot-in-command** First officer** Second officer** Third officer...
and the ground handling
Aircraft ground handling
In aviation, aircraft ground handling defines the servicing of an aircraft while it is on the ground and parked at a terminal gate of an airport.-Overview:...
services) is called the operating carrier
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
. The company or companies that sell tickets for that flight but do not actually operate it are called marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
carriers or validating carrier
Validating carrier
In the context of multi-leg flights, the validating carrier is the airline that validates or issues tickets, and the one that receives the money when the flights are booked. In the event of cancellations. This is the carrier with which the flyer has credit...
s.
History
In 1967, Richard A. HensonRichard A. Henson
Richard A. Henson was an American test pilot, flight school operator, and founder of the modern "commuter airline" concept.- Early life :Henson was a test pilot for Fairchild Aircraft Corporation during the Depression...
joined with US Airways
US Airways
US Airways, Inc. is a major airline based in the U.S. city of Tempe, Arizona. The airline is an operating unit of US Airways Group and is the sixth largest airline by traffic and eighth largest by market value in the country....
predecessor, Allegheny Airlines
Allegheny Airlines
Allegheny Airlines was an airline operating out of Pittsburgh, Pennsylvania, United States, from 1952 to 1979. It was a forerunner of today’s US Airways. Its headquarters were located on the grounds of Washington National Airport in Arlington County, Virginia....
, in the nation's first codeshare relationship. The term "code sharing" or "codeshare" was coined in 1989 by Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
and American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, and in 1990 the two firms provided their first codeshare flights between an array of U.S. domestic cities and Australian cities. Code sharing has become widespread in the airline industry since that time, particularly in the wake of the formation of large airline "alliances". These alliances have extensive codesharing and networked frequent flyer programs.
Reasons and advantages
Under a code sharing agreement, participating airlines can present a common flight number for several reasons, including:For passengers
- Connecting flights: This provides clearer routing for the customer, allowing a customer to book travel from point A to C through point B under one carrier's code, instead of a customer booking from point A to B under one code, and from point B to C under another code. This is not only a superficial addition as cooperating airlines also strive to synchronize their schedules and coordinate luggage handling, which makes transfers between connecting flights less time-consuming.
- Shared responsibility between the carriers: When flying between two cities without a single-airline connection, the passenger can pick a codeshared flight over two airlines or two flights booked separately. If the flights are not codeshared, then the second airline has no responsibility if the passenger or luggage misses the second flight due to a delay with the first. Under a codeshared flight, the second airline is unlikely to charge extra fees or deny boarding should the first, cooperating airline cause a delay.
For airlines
- Flights from both airlines that fly the same route: this provides an apparent increase in the frequency of service on the route by one airline
- Perceived service to unserved markets: this provides a method for carriers who do not operate their own aircraft on a given route to gain exposure in the market through display of their flight numbers.
- When an airline sacrifices its capacity to other airlines as a code share partner, its operational cost will generally be reduced to nil.
Competitive concerns
Much competition in the airline industry revolves around ticketAirline ticket
An airline ticket is a document, issued by an airline or a travel agency, to confirm that an individual has purchased a seat on a flight on an aircraft. This document is then used to obtain a boarding pass, at the airport...
sales (also known as "seat booking") strategies (revenue management
Revenue management
Revenue Management is the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of Revenue Management is selling the right product to the right customer at the right time...
, variable pricing
Variable pricing
Most firms use a fixed price policy. That is, they examine the situation, determine an appropriate price, and leave the price fixed at that amount until the situation changes, at which point they go through the process again...
, and geo-marketing
Geo (marketing)
As a general term, Geomarketing is the integration of Geographical intelligence into all marketing aspects including sales and distribution. Geomarketing Research is the use of geographic parameters in research methodology starting from sampling, data collection, analysis, and...
). Most passenger
Passenger
A passenger is a term broadly used to describe any person who travels in a vehicle, but bears little or no responsibility for the tasks required for that vehicle to arrive at its destination....
s and travel agents
Travel agency
A travel agency is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products...
have a preference for flights that provide a direct connection. Code sharing achieves this. Computer reservations systems (CRS) also often do not discriminate between direct flights and code sharing flights and present both before options that involve several isolated stretches run by different companies.
Criticism has been leveled against code sharing by consumer organization
Consumer organization
Consumer organizations are advocacy groups that seek to protect people from corporate abuse like unsafe products, predatory lending, false advertising, astroturfing and pollution.Consumer organizations may operate via protests, campaigning or lobbying...
s and national departments of trade since it is claimed it is confusing and not transparent to passengers.
Air-Rail Alliances
There are also code sharing agreements between airlines and rail linesRail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
. These as more formally known as an air-rail alliance
Air-rail alliance
OverviewThere are four main types of airline-railway alliance or codeshare agreements - dedicated services, Rail&Fly, Night&Fly, and re-protection agreements. The currently active air-rail alliances are listed in the various tables below....
, but more commonly known as Rail & Fly due to the popularity of the Deutsche Bahn codeshare with many airlines. They involve some integration of both types of transport, e.g., in finding out the fastest connection, allowing exchange between an air ticket and a train ticket, or a step further, the air ticket being valid on the train, etc. See also list of current air-rail alliances
Air-rail alliance
OverviewThere are four main types of airline-railway alliance or codeshare agreements - dedicated services, Rail&Fly, Night&Fly, and re-protection agreements. The currently active air-rail alliances are listed in the various tables below....
or a list of IATA-indexed railway stations. In Europe these air-rail alliances are used to divide markets by selling these combination tickets abroad for a lower price to attract more customers. The systems also prevent local customers from buying these much cheaper tickets as the customer is only allowed to board the plane with a valid train stamp from a station outside the country.
See also
- Air-rail allianceAir-rail allianceOverviewThere are four main types of airline-railway alliance or codeshare agreements - dedicated services, Rail&Fly, Night&Fly, and re-protection agreements. The currently active air-rail alliances are listed in the various tables below....
- Airline allianceAirline allianceAn airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance...
- Change of gauge (aviation)Change of gauge (aviation)In air transport change of gauge for a passenger or cargo means a change of aircraft without the change of flight number. The term is borrowed from and in analogy with the rail transport practice of gauge change....
External links
- Snyder, Brett. "This isn't the airline I signed up for." CNNCNNCable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
. July 11, 2011. - Article on prospect of codesharing between North American rail and airline connections