Types Of Code Share Agreement

A codeshare agreement is the next step in cooperation between airlines. This is when two airlines realize that there is value in cooperation, and they decide that they want to place their « codes » on each other`s flights. As a general rule, the main advantage is that it allows airlines to partner in a codeshare agreement. The term « code » refers to the identifier used in a flight plan, usually the IATA double-digit designation code and the flight number. Thus, xx224 (airline flight number 224 XX) could also be sold by YY568 and by ZZ as ZZ9876. In this case, YY and ZZ are referred to as « airline marketing » (sometimes abbreviated MKT CXR for « Marketing Carrier »). The connection process is like the example above with Ethiopian Airlines and GOL. This is when an airline sells a ticket between A and C, but only goes to point B. Then, the codeshare partner steals the second step between B and C. Note that this list consists only of carriers whose code-sharing relationships are of a new or continuous basis. Sleeping code-sharing relationships to the widely known extent have been removed. A codeshare agreement, also known as codeshare, is a common commercial agreement in the aviation industry, in which two or more airlines publish and market the same flight under their own airline manager and flight number (the « flight code ») as part of their published flight plan. Typically, a flight is designated by an airline (technically referred to as the « administration company »[1]), while seats are sold by all airlines that have cooperated with their own name and flight number.

As a rule, there are 3 types of code sharing relationships or chords. Code sharing is a marketing agreement in which an airline places its encryption code on a flight made by another airline and sells tickets for that flight. Airlines around the world continue to form code-sharing agreements to strengthen or strengthen their market presence and enhance their competitiveness. U.S. and foreign air carriers wishing to operate code-sharing services must first obtain authorization from the Department in the form of a declaration of authorization pursuant to Part 212 of the Department`s Economic Regulations, 14 CFR Part 212. The Department approves the application when it finds that it is in the public interest. Parallel operations involve two airlines serving the same line and using each other`s codes as their own. In assessing the benefits of the public interest, the Department examines whether code-sharing operations are included in a bilateral agreement between the United States and the national government of the foreign air carriers concerned, the benefits of extending services and fare options to the public, and the impact of code share on airline competition. Before code-sharing operations can be conducted, the U.S.

airline must conduct a security audit of its foreign carrier code-sharing partner to ensure that operations meet acceptable international standards and submit the results of that audit for verification by the Federal Aviation Administration. There are now so many different types of agreements in the aviation sector. While the exact terms vary with each partnership, I think the simplest way to summarize it is that an interline agreement is like a friendship, a codeshare agreement is like an engagement, a joint venture is like a wedding, and an alliance is like a big family to do with any kind of thing. Parallel operation: A parallel code-sharing agreement is an operation between two airlines that use the same route. For example, if United Airlines and Delta Airlines fly from New York to Miami, a codeshare agreement between them can be characterized as a parallel operation. This is due to the fact that this code release is carried out in parallel with its own operations.