Code Share Agreement in Air Transport Industry

June 13, 2023

In the air transport industry, code share agreements have become increasingly common. These agreements allow airlines to cooperate on certain routes and offer passengers more options for travel. Code sharing can also provide cost savings for airlines and enhance their global reach.

Code sharing is essentially a marketing arrangement in which one airline puts its flight number on another airline`s flight. This allows the airline to sell seats on that flight as if it were their own, even though they do not actually operate the flight.

There are two types of code share agreements: reciprocal and unilateral. Reciprocal agreements are the most common, where two airlines agree to put their flight numbers on each other`s flights. Unilateral agreements occur when one airline puts its flight number on another airline`s flight, but the other airline does not reciprocate.

Code sharing allows airlines to expand their route networks without investing in additional aircraft or opening new routes. It also provides passengers with more options, as they can book flights on multiple airlines for a single trip. This is particularly important for smaller airlines that cannot afford to offer flights to all destinations.

Code sharing can also provide cost savings for airlines. By sharing flights, airlines can reduce operating costs such as fuel, maintenance, and crew expenses. This can result in lower ticket prices for passengers.

In addition, code sharing can enhance an airline`s global reach. By partnering with other airlines, airlines can extend their reach into new regions and markets. This can be particularly important for airlines that do not have a large presence in certain regions or markets.

Code sharing also has its drawbacks. Passengers may experience confusion or delays if there are issues with flight operations, such as delayed or cancelled flights. It can also be difficult for passengers to determine which airline is operating the flight and which airline to contact for customer service issues.

Overall, code sharing is a common practice in the air transport industry. It allows airlines to expand their route networks and provide passengers with more options for travel. While there are some drawbacks to code sharing, its benefits outweigh its drawbacks and it will continue to be an important aspect of the air transport industry moving forward.