How Do Codeshare Agreement Work

A large number of companies established in this sector are making losses. This is due in the first place to their lack of efficiency. Since the success of the aviation industry relies exclusively on efficiency, many companies have explored unconventional options to increase their profitability. One such option is a codeshare agreement between airlines. Normally, low-cost carriers do not participate in interline agreements, so be aware of this. It makes sense to purchase a codeshare ticket at an additional cost of 100 $US compared to separately booked tickets, for example if the value of the flight exceeds 2,000 $US. In this way, the airline is legally obliged to redirect passengers if you miss a connection. Another way to make code-sharing work is on connecting flights where a traveler makes part of the trip with one airline and switches to a second airline during a stopover for the next part. Both parts of the trip are issued in the form of an airline ticket issued by an airline, a codeshare partner with the second airline.

There are three types of codeshare agreements: parallel operation, connection operation, and unilateral exploitation. Finally, how do you know if you`re on a codeshare flight? For flights to and from the United States, airlines must notify their passengers when using a codeshare service. Most airlines will sell the ticket as “flight XX123, operated by XYZ” codeshare agreements are often used in the aviation industry.