Hi All,
Some media mainstream bringing codesharing initiative between United and Emirates to many Flights to Latin America into their headline.
The initial partnership was tied to the launch of United’s new nonstop flights from Newark to Dubai along with a codeshare agreement that allowed United passengers to seamlessly connect to flights flying to over 100 different cities. Emirates passengers flying into the United States to United hubs had easy access to many cities served by United. Interline agreements were put in place where United did not operate a hub but both carriers flew to.(Airline Geek News).
Code-sharing is a business arrangement in the aviation industry where two or more airlines share the same flight. A seat can be purchased from an airline on a flight that is actually operated by another airline under a different flight number or code). The purpose of such arrangements is to expand each airline’s network reach without the need for additional resources or infrastructure.
Code-sharing agreements have several advantages for both airlines and passengers. For airlines, these agreements allow them to expand their service offerings and geographic reach. By sharing services with other airlines, an airline can sell tickets for flights it does not operate. This arrangement allows airlines to offer flights to regions where they do not have landing rights or the necessary infrastructure, thus increasing their market reach.
Passengers also benefit from code-sharing agreements. They get an expanded choice of destinations, often with seamless connections. Code-sharing can also mean more frequent flights, giving passengers more options for departure and arrival times. Furthermore, travelers can earn and redeem frequent flyer miles on code-shared flights, enhancing customer loyalty programs.
Codesharing in the airline industry involves a wide scope of work and coordination between the involved airlines. Some of the main components include:
- Ticketing and Reservations: One of the main tasks in a codeshare agreement is synchronizing ticketing and reservation systems. Both airlines need to ensure that passengers can book tickets seamlessly, regardless of which airline’s code is on the ticket.
- Flight Operations: The operating airline is responsible for the actual flight operations, including flight crew, aircraft maintenance, ground handling, and fueling. The marketing airline sells tickets for these flights but does not operate them.
- Scheduling: Both airlines work together to align schedules, ensuring that codeshare flights fit into each airline’s broader schedule. This process involves careful timing to facilitate easy connections for passengers.
- Customer Service: Both airlines need to coordinate their customer service efforts. This includes handling baggage, customer complaints, ticket changes, and other customer-facing aspects of the airline business.
- Marketing and Sales: The marketing airline is responsible for advertising and selling the codeshare flights. They include these flights in their marketing materials, on their website, and in other sales channels.
- Loyalty Programs: One of the benefits of codesharing is the ability for passengers to earn and redeem frequent flyer points on codeshare flights. Both airlines need to work together to ensure that their loyalty programs are integrated and that points and benefits are correctly awarded.
- Legal and Regulatory Compliance: Codeshare agreements involve complex legal and regulatory considerations. Both airlines need to ensure that the agreement complies with all relevant laws and regulations, including those related to competition and consumer protection.
- Revenue Sharing: The airlines involved in a codeshare agreement need to determine how to divide the revenue from ticket sales. This division usually depends on the specific terms of the codeshare agreement.
- Performance Monitoring and Management: Once a codeshare agreement is in place, both airlines need to monitor its performance. This involves tracking sales, customer satisfaction, punctuality of codeshare flights, and other key performance indicators. Based on these observations, the airlines can make necessary adjustments to the agreement or operations.
The selection of code-share partners is a strategic decision that airlines make based on various factors. These factors can include network compatibility, fleet compatibility, and membership in the same airline alliance.
Network compatibility refers to the extent to which the routes offered by the potential partners complement each other. For example, an airline that primarily serves the North American market may choose to partner with an airline that has a strong presence in Asia to offer more comprehensive global services.
Fleet compatibility is another essential factor. If the potential partner’s fleet can accommodate the airline’s passenger demand and operational standards, it becomes a viable partner.
Finally, membership in the same airline alliance can also influence the selection of code-share partners. Airlines in the same alliance often share similar standards and practices, making it easier to cooperate. Examples of such alliances include Star Alliance, SkyTeam, and Oneworld.
Code-sharing is a beneficial strategy in the airline industry that allows airlines to expand their service offerings and geographic reach without significant investment in new resources or infrastructure. The strategic selection of code-share partners is based on various factors, including network compatibility, fleet compatibility, and membership in the same airline alliance. As the airline industry continues to evolve, code-sharing will likely remain a critical tool for airlines to maintain competitiveness and meet passenger needs.Codesharing involves a broad scope of work and requires significant coordination between the involved airlines.
Salam Sehat Semangat Sukses
Bambang Purnomo , SS-BA, CSCA, CAVM Solution Consultant
