Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Introduction After 1990s there was a major transformation in the commercial world. All the organizations across industry sectors have started using information technologies to maximize their productivity and profitability. Organizations started using technologies like mainframes, PCs, telecommunications and the internet along with the goods and services which they offered to the consumers. This process has […]
What are Smart Cities and How They Have the Potential to Revolutionize Urban Living We often hear the term Smart Cities mentioned in the media. We also come across excited business leaders and politicians as well as urban planners and members of think tanks breathlessly talk about how Smart Cities would transform the way we […]
How Facebook can be used to Influence and Interfere in Elections Worldwide It is a known fact that social media, while easing communications and connecting Billions of people worldwide, can also be used by political parties, unscrupulous and malevolent actors, and even businesses and corporate entities to manipulate public opinion and to influence the outcomes […]
Privatization of airports is not a new idea. Many politicians have implemented it as an important economic policy. Margaret Thatcher was one of the first politicians to use privatization as an important policy measure. Her government privatized essential entities like the British Airways as well as the Heathrow airport in the 1970’s. Donald Trump has […]
Introduction Supply-chain management plays a pivotal role in ensuring goods, and services are delivered on time to customers. Within supply-chain management, inventory management plays a central role. Inventory involves various cost, investment, space management, etc. Also there are chances that stored inventory may get damaged or get stolen adding to extra cost to the company. […]
The airline industry is one of the most competitive industry in the entire world. A large number of incumbents in this industry are making losses. This is primarily because of their lack of efficiency. Since success in the airline industry is solely based on efficiency, many companies have explored unconventional options in order to increase their profitability. One such option is a code-sharing agreement between airlines.
In this article, we will understand what code-sharing agreements really are and how they provide benefits to both the consumer and to the airlines involved.
Code sharing agreements are used extensively in the airline industry. In the aviation industry, the term code refers to the two-digit XX which is used as a prefix in flight numbers. For instance, flight no UA123 is a United Airlines flight. The code UA helps identify the airline involved. These codes are given by IATA which is an international travel and tourism body.
A code-sharing arrangement therefore refers to a situation when an airline is sharing its code with another. In simpler words, this means that if United Airlines shares its code UA with Emirates, then such an arrangement will be called code sharing. The flight will actually be operated by Emirates. However, for marketing and sales purposes, the flight will be addressed with the prefix UA.
In such an arrangement, the responsibility of marketing the flights lies with one of the airlines called the marketing partner. At the same time, the other airline is 100% responsible for operating the flight and hence they are called the operating partner.
There are many types of code-sharing arrangements which are common in the airline industry. Some of these arrangements have been listed below.
Parallel Operation: A parallel code-sharing arrangement is an operation between two airlines that fly the same route. For instance, if both United Airlines and Delta Airlines fly from New York to Miami, a code-sharing arrangement between them may be called a parallel operation. This is because this code sharing runs in parallel to their own operations. Simply put in such a situation, the airlines will use each other’s codes as well as their own.
Connecting Operation: A connecting operation is an arrangement under which an airline has a code-sharing arrangement with another airline which does not operate on the same sector but provides connections to other flights. For instance, British Airways sells tickets for London to Chicago. However, the entire flight is not operated by them. In most cases, British Airways carries passengers from London to New York. From New York, a connecting partner takes passengers to Chicago.
The difference between a codeshare agreement and a traditional connecting flight is the way it is marketed. A traditional connecting flight will show two carriers when the passenger is booking the ticket. On the other hand, code sharing specifies one carrier and mentions the other in the fine print. Many times customers don’t even realize that they have purchased code sharing tickets.
Unilateral Operation: A unilateral operation is where one airline is not involved in the operations in any way. This means that the airline is not flying that particular route either directly or via a connection. Here, one airline tries to leverage the brand of another in order to get passengers to fly with them.
Your email address will not be published. Required fields are marked *