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A codeshare agreement, also known simply as codeshare, is a business arrangement, common in the aviation industry, in which two or more airlines publish and market the same flight under their own airline designator and flight number (the "airline flight code") as part of their published timetable or schedule. Typically, a flight is operated by one airline (technically called an "administrating carrier" or "operating carrier") while seats are sold for the flight by all cooperating airlines using their own designator and flight number. The term "code" refers to the identifier used in a flight schedule, generally the two-character
IATA The International Air Transport Association (IATA ) is a trade association of the world's airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airlines, IATA also organized tariff ...
airline designator code and flight number. Thus, XX224 (flight number 224 operated by the airline XX), might also be sold by airline YY as YY568 and by ZZ as ZZ9876. Airlines YY and ZZ are in this case called "marketing airlines" (sometimes abbreviated MKT CXR for "marketing carrier"). Most of the major airlines today have code sharing partnerships with other airlines, and code sharing is a key feature of the major
airline alliance An airline alliance is an aviation industry arrangement between two or more airlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airline codeshare connections within c ...
s. Typically, code-sharing agreements are also part of the commercial agreements between airlines in the same airline alliances.


History

In 1967, Richard A. Henson joined with
US Airways US Airways (formerly USAir) was a major United States airline that operated from 1937 until its merger with American Airlines in 2015. It was originally founded in History of aviation in Pittsburgh, Pittsburgh as a mail delivery airline called ...
predecessor
Allegheny Airlines Allegheny Airlines was a regional airline that operated out of Pittsburgh, Pennsylvania, from 1952 to 1979 with routes primarily located in the eastern U.S. It was the forerunner of USAir that was subsequently renamed US Airways, which itself me ...
in the nation's first codeshare relationship. The term "code sharing" or "codeshare" was coined in 1989 by
Qantas Qantas Airways Limited ( ) is the flag carrier of Australia and the country's largest airline by fleet size, international flights, and international destinations. It is the world's third-oldest airline still in operation, having been founded ...
and
American Airlines American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...
, and in 1990 the two firms provided their first codeshare flights between an array of Australian cities and U.S. domestic cities. Code sharing has become widespread in the airline industry since then, particularly in the wake of the formation of large
airline alliance An airline alliance is an aviation industry arrangement between two or more airlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airline codeshare connections within c ...
s. These alliances have extensive codesharing and networked
frequent flyer programs A frequent-flyer program (American English) or frequent-flyer programme (British English) is a loyalty program offered by an airline. Many airlines have frequent-flyer programs designed to encourage airline customers enrolled in the program ...
.


Terminology

Under a code sharing agreement, the airline that administers the flight (the one holding the operational permissions, airport slots and planning/controlling the flight and responsible for the
ground handling In aviation, aircraft ground handling defines the servicing of an aircraft while it is on the ground and (usually) parked at a Gate (airport), terminal gate of an airport. Overview Many airlines subcontract ground handling to airports, han ...
services) is commonly called the ''operating
carrier Carrier may refer to: Entertainment * ''Carrier'' (album), a 2013 album by The Dodos * ''Carrier'' (board game), a South Pacific World War II board game * ''Carrier'' (TV series), a ten-part documentary miniseries that aired on PBS in April 20 ...
'', often abbreviated OPE CXR, even though the IATA SSIM term "administrating carrier" is more precise. The reason for this is that a third carrier may be involved, typically in the case that the airline originally planning to operate the flight needs to hire a subcontractor to operate the flight on their behalf (typically a wet lease, meaning an aircraft is leased with crew and all facilities to fly, commonly due to capacity limitations, technical problems etc.) In this case, the airline carrying the passenger should be designated the operating carrier, since it is the one carrying the passengers/cargo. When a flight is sold under several designators and flight numbers as described above, the one published by the "Administrating carrier" is commonly called a "prime flight" (as opposed to a codeshare marketing flight).


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.


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 non-serviced 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.


Types of code sharing

There are several types of code sharing arrangements: * Block space codeshare: A commercial (marketing) airline purchases a fixed number of seats from the administrating (operating/prime) carrier. A fixed price is typically paid, and the seats are kept away from the administrating carrier's inventory. The marketing airline decides on its own which booking classes the seats are sold in (the block of seats are optimized just like another aircraft cabin). * Free flow codeshare: The airlines' inventory and reservation systems communicate in real-time by messaging, commonly IATA AIRIMP/PADIS messaging (TTY and EDIFACT). A booking class mapping is defined between the airlines. No seats are locked to any of the airlines, and any airline can sell any number of seats. * Capped free flow: Basically the same as above, but capping (maximum number of seats) is defined for each of the marketing airlines participating in the codeshare with the administrating carrier.


Competitive concerns

Much competition in the airline industry revolves around ticket sales (also known as "seat booking") strategies (
revenue management Revenue management is the application of disciplined analytics that predict consumer behaviour at the micro-market levels and optimize product availability, leveraging price elasticity to maximize revenue growth and thereby, profit. The primary ...
,
variable pricing Variable pricing is a pricing strategy for products. Traditional examples include auctions, stock markets, foreign exchange markets, bargaining, electricity, and discounts. More recent examples, driven in part by reduced transaction costs using ...
, and geo-marketing). Criticism has been leveled against code sharing by consumer organizations 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 arrangements between
airlines An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in whic ...
and
railway companies This is an incomplete list of the world's railway operating companies listed alphabetically by continent and country. This list includes companies operating both now and in the past. In some countries, the railway operating bodies are not compani ...
, formally known as
air-rail alliance There are four main types of airline-railway business alliance or codeshare agreements: dedicated services, entire network access, Night&Fly, and re-protection agreements. The currently active air-rail alliances are listed in the tables below. D ...
s, and commonly marketed as "Rail & Fly" due to the popularity of the
Deutsche Bahn The (; abbreviated as DB or DB AG) is the national railway company of Germany. Headquartered in the Bahntower in Berlin, it is a joint-stock company ( AG). The Federal Republic of Germany is its single shareholder. describes itself as the se ...
codeshare with many airlines. They involve some integration of both types of transport, e.g., in finding the fastest connection and allowing the transfer between plane and train using a single ticket. This allows passengers to book a whole journey at the same time, often for a discounted price compared to separate tickets.


See also

*
Change of gauge (aviation) In air transport, a change of gauge for a passenger or cargo flight is a change of aircraft that retains the same flight number.Interlining Interlining, also known as interline ticketing and interline booking, is a voluntary commercial agreement between individual airlines to handle passengers traveling on itineraries that require multiple flights on multiple airlines. Such agreement ...


References


External links

* Snyder, Brett.
This isn't the airline I signed up for
" ''
CNN CNN (Cable News Network) is a multinational cable news channel headquartered in Atlanta, Georgia, U.S. Founded in 1980 by American media proprietor Ted Turner and Reese Schonfeld as a 24-hour cable news channel, and presently owned by ...
''. July 11, 2011.
Article on prospect of codesharing between North American rail and airline connections
{{Authority control Airline tickets