Skip navigation

A codeshare agreement, as Upgraded Points wrote, “is a business agreement in which two or more airlines publish and market the same flight under their own company name and flight number as part of their published flight plan or flight plan.” The Office has also carried out a joint study on transatlantic air alliances with the Directorate-General for Competition for the European Union. Alliance agreements, which almost always contain a code-sharing component, are often accompanied by requests for exemption from antitrust legislation that would otherwise prevent airlines from cooperating on certain aspects of their common services, such as fares and capabilities, as if they were a single airline. Important code-sharing and alliance agreements require careful consideration of their impact on competition both domestic and international. There are three types of code-sharing agreements: parallel operation, connection process and unilateral operation. Code-sharing dates back to the 1960s. In 1967, Allegheny Airlines (USAir) entered into the first codeshare with a commuter airline in the United States. This practice became increasingly popular following the deregulating of the U.S. domestic market in the 1970s. Major U.S. and foreign carriers may comply with 49 U.S. carriers.

C 41308-41309 seek immunity from U.S. antitrust law to operate certain business alliances. Immunity allows these airlines to coordinate their fares, services and capacity, under certain conditions, as if it were a single airline in those markets. U.S. airlines are required to submit cooperative service agreements to the Department between them, such as code-sharing, common access to frequent flyers and lounges, and joint marketing, for verification before implementing these agreements. 49 USC 41720. The department does not approve or reject the agreements. On the contrary, the department is reviewing the agreements to ensure that they do not harm the public and that they are not anti-competitive.

The Department may, as part of its legal jurisdiction, take steps to maintain competition at 49 USC 41712. In addition, an interline agreement includes baggage handling, check-in agreements or even the possibility of re-quitting via another airline in the event of flight cancellation. The Interline agreement smoothes the customer experience. This type of agreement will prove crucial in the coming months as the recovery of the current crisis continues. Airlines are reducing the size of their fleets and reducing routes, so a codeshare agreement will help maintain some kind of global connectivity. The concept of a codeshare agreement was created in 1989 with Qantas and American Airlines. They offered a hub and spoke service with their homes at airports in Los Angeles, Sydney and Melbourne. Jan K. Brueckner, a professor of economics at the University of California, commissioned the Office of Aviation Analysis to study the effects of various forms of air cooperation on international routes.

DOT commissioned the study, co-authored by Ethan Singer, as part of its commitment to overseeing recognized international alliances. The study focused on price effects and did not examine the non-tariff effects of airline cooperation. The study was conducted by the authors independently of the department`s influence in order to provide a third-party assessment. Although the Department does not support the study, its methods or its conclusions, it has been tasked with promoting independent and scientific research on the evaluation of alliances of immune airlines. In Europe, code-sharing agreements became popular in 1993 as a result of EU deregulation. In 2007, the European Commission published a final report on the impact of code-sharing agreements on competition. The document shows that 100 out of 100 airlines surveyed have already signed a codeshare with one or more airlines around the world. Finally, unilateral operation is the case when an airline is not involved in the operations.