{"id":187,"date":"2020-03-12T13:49:57","date_gmt":"2020-03-12T13:49:57","guid":{"rendered":"http:\/\/www.airfarebooking.ca\/blog\/?p=187"},"modified":"2023-10-17T17:25:52","modified_gmt":"2023-10-17T11:55:52","slug":"airline-flight-codeshare","status":"publish","type":"post","link":"https:\/\/airfarebooking.ca\/blog\/airline-flight-codeshare\/","title":{"rendered":"Understanding Airline Flight Codeshare Types, and Effects"},"content":{"rendered":"

If you fly often or are involved in the aviation industry, you may have heard about airline codeshare.<\/p>\n

Although the word is self-explanatory, it is a little more complicated than that. This article will guide you about the business arrangement between different airlines known as codeshare agreements.<\/p>\n

Basically, two or more airlines share the flight code and market fares for the same flight.<\/p>\n

Don\u2019t worry if you are confused, by the end of the article, you will not only understand how codesharing works, but also how it affects the passengers and airlines.<\/p>\n

So, let\u2019s begin:<\/p>\n

Understanding Codesharing<\/strong><\/h2>\n

To know about codeshare and how it works, you must first understand some other terms. Let\u2019s get straight into it:<\/p>\n

1. Flight Coupon:<\/strong><\/h3>\n

Any flight itinerary is composed of one or more flight coupons. In simple terms, a flight coupon represents the journey from one airport to the other.<\/p>\n

So, for instance, if the Toronto to Delhi flight<\/strong><\/a> itinerary comprises of a single flight coupon, there is only one airline operating nonstop flights from Toronto to Delhi.<\/p>\n

Similarly, if there are two flight coupons between the destinations, it means the flight has a stop between Toronto and Delhi, say, Ahmedabad. So Toronto to Ahmedabad<\/strong> ticket<\/strong><\/a> is operated by one air carrier, and flights from Ahmedabad to Delhi by another.<\/p>\n

2. Online Flight: <\/strong><\/h3>\n

This term describes all the flights on an indirect route with one airline only.<\/p>\n

3. Interline Flight: <\/strong><\/h3>\n

An interline flight means a flight on an indirect route that is operated by two or more airlines.<\/p>\n

4. Flight Designator Codes<\/strong>:<\/h3>\n

These are unique codes used for the reservation and other reasons. This alphanumerical code is comprised of two alphabets followed by a number. This signifies the airline and the destination.<\/p>\n

Keeping these in mind will help you understand codesharing better.<\/p>\n

What is Code-Sharing?<\/strong><\/h2>\n

Codesharing is a means to sell seats on partner airlines. Code-sharing serves many purposes. One reason is to gain access to untapped markets indirectly. Others include the expansion of the network and enhancing service quality.<\/p>\n

Airline codesharing involves two types of airlines. This includes operating airline and marketing airline.<\/p>\n

The airline that provides aircraft on a particular route is the operating airline.<\/p>\n

However, the airline that sells the seat on a flight is the marketing airline. In simple words, the airline that markets the seat to the passenger, but doesn\u2019t use its aircraft is the marketing airline.<\/p>\n

For every flight coupon, there is a single operating airline and one or more marketing airlines.<\/p>\n

Types of Codeshare Agreements<\/strong><\/h2>\n

Codeshare agreements follow many different formats. However, you will find two main categories of codesharing formats or types below. Let\u2019s start with the most common:<\/p>\n

1. Free-sale<\/strong><\/h3>\n

Under the free-sale codeshare agreement, both the airlines agree to sell seats on each other\u2019s aircraft with no or little capacity restrictions.<\/p>\n

The free-sale format dictates no restrictions on the number of seats a marketing airline may sell. The marketing carriers also have the power to decide their own fare structure.<\/p>\n

On the other hand, the operating airline has greater control over the seat assignment and schedule changes.<\/p>\n

The reason behind the free-sale codeshare agreement being so common is that it is the least formal and has a broader scope.<\/p>\n

2. Block-Space<\/strong><\/h3>\n

This is different from the free-sale in the sense that both the airlines, marketing, and operating divide the seating capacity.<\/p>\n

The marketing carrier blocks a particular number of seats on the operating airline\u2019s aircraft by purchasing them. The marketing airline then sells the block of seats to the passengers and retains the revenue earned.<\/p>\n

Also, both airlines determine their own fare structure. Block-Space agreement usually takes places between airlines that have no partner history<\/p>\n

Codesharing and Interlining<\/strong><\/h2>\n

1. Codesharing: <\/strong><\/h3>\n

As established earlier, the codeshare agreement mutually benefits the participating airlines by sharing the same flight number. The check-in process on codeshare flights may confuse some.<\/p>\n

Check-in with the operating airline, rather than the marketing airline. That means, even though you may have booked Air Canada flight tickets to India from Toronto<\/strong><\/a>, but if the flight number on your ticket is of a Lufthansa aircraft, then you will check-in with the latter.<\/p>\n

The same goes for your baggage. The baggage check-in instructions will be on the ticket.<\/p>\n

2. Interlining<\/strong>:<\/h3>\n

This type of agreement is different from codesharing. Under Interlining participating airlines agree to handle passengers whose itineraries include both of the concerned airlines.<\/p>\n

This means cooperating in baggage handling and passenger check-in process from the origin to the destination.<\/p>\n

Another key difference between interline booking and codeshare flights is that the former is a flight that is a part of a wider itinerary. On the other hand, the latter is the whole flight.<\/p>\n

You only have to check-in once for interline flights. The airline which operates the first flight or leg of the itinerary checks you in.<\/p>\n

Similarly, you will check-in baggage with the departure airport and collect it from your final destination.<\/p>\n

Effects of Codesharing<\/strong><\/h2>\n

1. Passengers<\/strong>:<\/h3>\n

From the customer standpoint, codesharing effects connecting flights. For instance, if you travel on New Delhi to Toronto flight ticket via Mumbai, you can travel on a single ticket and under the same flight code.<\/p>\n

This means you don\u2019t have to book two tickets for New Delhi to Mumbai and Mumbai to Toronto flights.<\/p>\n

2. Airlines<\/strong>:<\/h3>\n

Airlines can expand its flight network to the extent that the participating airlines wouldn\u2019t have able to cover on their own.<\/p>\n

Codesharing also creates the opportunity for airlines to compete in markets without actually allocating resources like aircraft fleet.<\/p>\n

Moreover, air carriers have the opportunity to increase the frequency of flights on a particular route. Codesharing<\/a> also helps air carriers to cut down costs.<\/p>\n

The first codeshare agreement dates back to 1967. However, the term came to life when Qantas Airways and American Airlines proposed the codeshare business arrangement.<\/p>\n

Fast forward to today, and you hear the term everywhere. Although you do not have to be a guru on the codeshare matter, it helps you in becoming a smarter passenger as you would know what to expect.<\/p>\n

So, next time you book flights for one airline and end up boarding aircraft of another airline, you will know exactly what is going on.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you fly often or are involved in the aviation industry, you may have heard about airline codeshare. 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