Airline Code Sharing: Understanding Alliances & Airlines - Essay Sample

Introduction

Code sharing refers to an agreement based involving the implementation of identification of codes on other airline flights. The code generally is a two-character identification code that appears on the computerized systems. A code-share flight is a flight that is marketed by a single carrier and operated by another. While the foreign airline alliance, this is an arrangement between airlines agreeing on a substantial level. The major alliances are Star Alliance, Sky Alliance, and One World. An airline should belong to a particular alliance, but it requires code-sharing for it to give passengers access to more destinations ("Alliances and Code-shares | U.S. Department of Transportation", 2020). For example, United Airline needs to make flights to China-Hong Kong, yet there are no star alliances available; therefore, the United Airline code has to share on Cathay pacific routes from China-Hong Kong to other destinations across the Asian continent to give their passengers access to different destinations ("Interline Agreements Vs. Codeshare Agreements Vs. Alliances Vs. Joint Ventures | One Mile at a Time", 2020).

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Most airlines that have contract carriers engage in code-sharing agreements for commercial purposes. The agreement allows them to expand their services without any additional resources. In code sharing, operational cost is reduced since one airline sacrifices its capacity to another airline. Passengers can connect flights through a clear routing system. It allows customers to book travel from one point to another via point some other point under one carrier's code.

In the domestic market, contract carrier services are made available and accessible to the government, which are accompanied by additional services. It is strictly for code-share partners involved in the contract carrier. The primary motivation involved in domestic market code-sharing is the increase in the number of flights for passengers, which in turn boosts business for the airlines. In foreign alliances, you can fly one network of the airline to almost any location hence increasing the number of destinations. For example, United Airlines does not fly to South Africa, but South African Airways does, and both airlines are members of the same alliance. The passenger will fly from New York to London on the united airline and then from London to Cape Town on the South African Airways using the same ticket ("Code Share Fact Sheet", 2020). In alliances, airlines need to pay dues. Paying dues enables them to be part of the global airlines. Also, benefits are now delivered to their passengers.

Alliances focus on customer satisfaction; hence there are more benefits like priority boarding, mileage earning, and priority check-in. In the alliances, there is sharing of maintenance facilities and operational facilities, thus reducing the operational cost. In alliances, there are reduced travel times due to the presence of optimized transfers. Most of the airlines that are part of alliances do participate in code sharing.

References

Interline Agreements Vs. Codeshare Agreements Vs. Alliances Vs. Joint Ventures | One Mile at a Time. One Mile at a Time. (2020). Retrieved 8 March 2020, from https://onemileatatime.com/interline-codeshare-alliances-joint-ventures/.

Alliances and Code-shares | U.S. Department of Transportation. Transportation.gov. (2020). Retrieved 8 March 2020, from https://www.transportation.gov/policy/aviation-policy/competition-data-analysis/alliance-codeshares.

Code Share Fact Sheet. Gsa.gov. (2020). Retrieved 8 March 2020, from https://www.gsa.gov/travel/plan-book/transportation-airfare-pov-etc/airfare-rates-city-pairs-programs/resource-library/code-share-fact-sheet.