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Code Share Agreement Meaning

The aviation industry is one of the most competitive industries in the world. Many companies in this sector are making losses. This is mainly because of their inefficiency. Because the success of the aviation industry relies exclusively on efficiency, many companies have explored unconventional opportunities to increase profitability. Such an option is a code-sharing agreement between airlines. The second type of code-sharing agreements is block space. Code-sharing agreements are the easiest way for airlines to access a market without entering into an over-the-counter contract. In this case, the bulk agreement will be used especially when the participating airlines are not part of the same alliance. He`s a complex guy.

Code sharing can be a useful way to book flights, earn miles and go where you need to go. However, before you buy, read the fine print. Do you always know which airline is actually flying your flight and how its policies regarding mileage collection, on-board service and other important factors can affect your trip. Most major airlines today have codeshare partnerships with other airlines, and code sharing is an essential feature of major airline alliances. In general, code-sharing agreements are also part of trade agreements between airlines in the same alliances. The small code-sharing supplement on the ticket „operated by… can be worth up to 600 euros. So it`s worth paying attention to. In 1967, Richard A. Henson joined the country`s first codeshare relationship with US Airways` predecessor, Allegheny Airlines. [2] The term „codeshare“ was coined by Qantas and American Airlines in 1989[3] and in 1990, the two companies made available their first codeshare flights between a number of Australian and American cities. Since then, the sharing of parts of codes has spread in the aviation sector, particularly as part of the formation of major airline alliances. These alliances have extensive code-sharing and network loyalty programs.

In assessing the benefits of the public interest, the Department examines whether code-sharing operations are included in a bilateral agreement between the United States and the national government of the foreign air carriers concerned, the benefits of extending services and fare options to the public, and the impact of code share on airline competition. Before code-sharing operations can be conducted, the U.S. airline must conduct a security audit of its foreign carrier code-sharing partner to ensure that operations meet acceptable international standards and submit the results of that audit for verification by the Federal Aviation Administration.