A study of international airline code sharing
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A study of international airline code sharing

Filetype[PDF-668.24 KB]


English
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  • Corporate Creators:
  • Corporate Contributors:
    United States. Dept. of Transportation. Office of Aviation and International Economics
  • Subject/TRT Terms:
  • Publication/ Report Number:
    NTIS-PB97199772
  • Resource Type:
    Research Paper
  • TRIS Online Accession Number:
    675250
  • Corporate Publisher:
    GRA, Incorporated
  • NTL Classification:
    NTL-AVIATION-Aviation Economics and Finance;NTL-AVIATION-Aviation Planning and Policy;
  • Abstract:
    Most international airline service to and from the United States today is provided by network carriers that move passengers through their gateway airports. In some cases, a carrier will take passengers to a foreign gateway and turn them over to a foreign carrier for distribution to interior points. Until recently, much of the traffic destined for non-gateway cities in the U.S. and foreign countries was handed off from one carrier to another on an interline basis. Although carriers put forth substantial efforts, they were not highly successful in coordinating interline service. Today many passengers move from domestic spoke points to the gateway and beyond on one carrier. Competitive service exists between U.S. and foreign gateways and also exists between U.S. gateways and other points within this country. However, there generally are fewer alternatives available and less competition for service behind foreign gateways. Carriers are seeking to access behind-gateway traffic by integrating two or more existing networks through international airline alliances. Alliances allow carriers to expand the reach of their networks and offer service to many parts of the world where it may not be economical or where they may lack the authority to operate their own flights. Code sharing has become one means for two or more international carriers to increase the reach of their networks. The U.S. Department of Transportation (DOT) has taken the position that code sharing between U.S. and foreign airlines requires approval by DOT. There have been no broad-based studies of the effects of code sharing on the U.S. airline industry, and the DOT has been criticized for approving such agreements without a full understanding of their effects. As a result, DOT engaged Gellman Research Associates, Inc. (GRA) to study the effects of international code sharing. The DOT set forth the following objectives for the study: (1) develop a methodology to assess the effects of code sharing on the level and distribution of traffic among carriers. The DOT wanted the capability to measure the effects of future code-sharing agreements; (2) examine the effects of code sharing on the costs and profitability of

    airlines; (3) assess the effects of code sharing on consumers of airline services; (4) project the future use and impact of code sharing over the next twenty years.

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