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Types Of Codeshare Agreements

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. For airlines, the importance of code-sharing agreements is access to new markets. For example, GOL would not be able to fly to the Middle East with its current fleet. With the codeshare she signed this month with Ethiopians, her passengers can now travel to Ethiopia and beyond. As a rule, there are 3 types of code sharing relationships or chords. A codeshare agreement, also known as codeshare, is a common commercial agreement in the aviation industry, in which two or more airlines publish and market the same flight under their own airline manager and flight number (the “flight code”) as part of their published flight plan. Typically, a flight is designated by an airline (technically referred to as the “administration company”[1]), while seats are sold by all airlines that have cooperated with their own name and flight number. 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. 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. This is a very fundamental level of cooperation, there are airlines that have interline agreements that are not partners otherwise. ExpertFlyer shows the airlines that have Interline agreements, here are the airlines with which American has an interline agreement: code-sharing can go back to the 1960s. In 1967, Allegheny Airlines (USAir) entered into the first codeshare with a commuter airline in the United States.