Types of Codeshare Agreement

Codeshare agreements are contracts between two airlines that allow them to share their flights with passengers. Essentially, one airline puts its code on a flight operated by another airline, making it look like it’s its own flight. This is popular among airlines as it saves costs on operating flights, and it provides passengers with more travel options.

There are three main types of codeshare agreements:

1. Block Space Codeshare

In a block space codeshare agreement, one airline reserves a block of seats on another airline’s flights and markets them as their own. The airline that reserves the block space then sells the tickets to its passengers. This type of agreement is advantageous as it allows airlines to sell a more comprehensive network of destinations without having to operate the flights themselves.

2. Free Flow Codeshare

A free flow codeshare agreement is where both airlines market the same flight with their own flight number. This means the passengers can book their ticket with either airline, but the flight is operated by only one airline. The two airlines share the revenue of the flight but the operating airline is responsible for the costs of the flight.

3. Joint Venture Codeshare

A Joint Venture Codeshare agreement is used when two airlines form a partnership or alliance, and they operate certain flights together. The airlines share the costs and revenue of the flights in an agreed-upon proportion, and they usually coordinate their schedules and prices. This type of agreement is advantageous as it allows airlines to have a larger global network of flights and destinations.

In conclusion, codeshare agreements are a great way for airlines to provide their passengers with more travel options without having to operate the flights themselves. Whether it’s a block space codeshare, free flow codeshare, or joint venture codeshare, these agreements result in benefits for both the airlines and their passengers. By understanding the different types of codeshare agreements, passengers can make more informed decisions when booking their flights.

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