One of the most common types of code sharing is free sharing, which is also the most difficult to manage from the airlines` point of view. In this type of agreement, the two companies enter into a contract for the publication of the other airline`s flights. This type of agreement does not have very few restrictions or rules for a number of seats that it is allowed to sell on the flight within capacity limits. In addition, an interline agreement includes baggage handling, check-in agreements or even the possibility of re-quitting via another airline in the event of flight cancellation. The Interline agreement smoothes the customer experience. Airlines around the world participate in various codeshare agreements. This will strengthen the airline`s market presence and competitiveness. There is an authorization requirement from the Department in the form of a declaration of authorization, pursuant to Part 212 of the Department`s economic regulations, 14 CFR Part 212 for U.S. and foreign air carriers, if they wish to operate code-sharing services.
In 1967, Richard A. Henson joined the country`s first codeshare relationship with US Airways` predecessor, Allegheny Airlines.  The term “codeshare” was coined by Qantas and American Airlines in 1989 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. Codeshare flights with the same ticket will protect consumers in terms of baggage management offerings, ground services and more. From a comfort point of view, interline and code-sharing agreements are a major asset for travellers. This type of code-sharing agreement is less formal than other types of revenue-sharing contracts.
This species generally covers a number of partner flights and is very diverse. In this case, the airline manager has the largest share of control over issues such as schedule changes, seat allocation, etc. Customers can purchase a ticket from an airline, but travel with a number of other airlines as long as the airlines have a commercial relationship known as the codeshare agreement. As a result, customers have more autonomy in choosing their flight plan, depending on what is best for them. The connection process is like the example above with Ethiopian Airlines and GOL. This is when an airline sells a ticket between A and C, but only goes to point B. Then the codeshare partner steals the second step between B and C. How? Read our guide to codeshare flights to find out. Another important drawback is that alliances involve less competition, which always affects prices.
Already in 2014, documents on code-sharing agreements were written to increase the price of flights. If you couldn`t tell by my previous article about codeshares, I`m not a fan for the most part. Some of it comes from the traveller`s experience, and some of it comes from my current work in the IT company. I`ll have a future article on the technical details around codeshares, how they work, why they are a pain to deal with, and so on. Let`s focus on the basics for now. 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. For airlines, the importance of code-sharing agreements is access to new markets.