Competition Impact Of Airline Codeshare Agreements

By 15 Settembre 2021Senza categoria

The relationship between U.S. and foreign airlines plays an important role in the participation and competitive position of the U.S. aviation industry in the “global” market. A study by the Office of Aviation Analysis served as the economic basis for the development of the department`s international aviation policy to promote international alliances and spread the benefits of deregulation to global markets. As a result, codeshare agreements between U.S. airlines and foreign airlines have grown significantly, as have broader alliances of U.S. carriers (cooperative service and marketing agreements) with foreign airlines. The Office has also launched a joint study on transatlantic airline alliances with the European Union`s Directorate-General for Competition. Immunity allows those airlines to coordinate, under certain conditions, their fares, services and capacities as if they were a single airline in those markets.

The connection service is as in the example below 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 will pass the second step between B and C. For airlines, the importance of codeshare agreements is access to new markets. For example, the GOL would not be able to travel to the Middle East with its current fleet. With the codeshare it signed with Ethiopian this month, its passengers can now fly to Ethiopia and beyond. U.S. air carriers are required to submit to the Department specific service agreements that they have entered into with each other, such as. B mutual code-sharing, common access to frequent flyers and lounges, and joint marketing, for verification before implementing these agreements.

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