Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
In previous articles, we looked at the humungous benefits that the BPO phenomenon brings to the economies of the host and the target nations. Mainly, we focused on how cost savings for the companies outsourcing their back office work and increased revenues for the companies doing the outsourced work have been actualized leading to a […]
An economy consists of many sectors. However, infrastructure is known to be the backbone of any economy. Roads, railways, electricity, and banking services are the very bedrock on which the modern economy grows. Until and unless a nation has robust infrastructure, any other industry will find it difficult to grow and prosper. In this article, […]
Project integration management refers to the process of tying everything in place. Integration management deals with: Developing the Project Charter and Project Scope statement (Initiating Process Group), Develop Project Management Plan (Planning process group), Direct and Manage project execution (Executing Process group). Hence this is process that integrates all the disparate processes and provides a […]
In previous articles, we talked about how the ongoing global economic crisis coupled with domestic pressures affect the outsourcing of back office operations. In this article, we look at a hot topic and a burning issue in the West i.e. the hue and cry over outsourcing and shipping jobs overseas especially at a time when […]
Development of Global Business Organizations, Multi National Corporations and the Corporate has always found a lot of academicians as well as the think tanks and Management Experts taking interest in analyzing the past, the present trends and prophesying the future trends. The study of growth of trade, the industries and the Organizations and the various […]
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 *