The US domestic market code-sharing and the US foreign airline alliances may well be considered one in the same time. Owing to the existing cooperative agreements, alliances, and code sharing internationally travel has grown to be a somewhat uninteresting experience for people. Still, one needs to understand the dynamics of the operations. An analysis of the situation on the ground shows that passengers heading to London from La Crosse city in Wisconsin are unable to take direct flights for instance. Nonetheless, if the passengers book their flights on the American Airlines website, they can easily be flown directly to London with British Airways. Indeed, the developments of domestic market code-sharing services to facilitate the initiative of a given company to operate the flights of another company while operating under the original business name from the perspective of the consumers. Another example of the demonstration is a flight from La Crosse to the city of Chicago conducted by Envoy Air yet the consumers paid for the service under American Airlines. Such incidents occur and have become a norm due to partnerships among regional airlines.
Undeniably, alliances or agreements of market code-sharing come with a number of advantages that airline companies cannot afford to disregard. Indeed, the most important considerations lie in aspects of profitability and efficiency by on-time performance (Zou & Chen, 2017). The substantial cooperation was initially conceived and observed as small-scale prospects of opportunities between two airline companies. With time, however, the alliances among airline companies have advanced to become huge projects. The code-sharing and alliances can be observed as one and the same since the mentioned alliances initiatives involve the extension of the network to the consumers via options that are known as “codeshare” or “codeshare agreements” (Yimga, 2017). The involved option forms the foundation of the agreements or alliance that allow an airline to operate in a given route transporting passengers of another airline that is an ‘ally’ and vice versa. The major alliances today are the Sky Team, Star Alliance, and One World.
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References
Yimga, J. O. (2017). Airline code-sharing and its effects on on-time performance. Journal of Air Transport Management , 58 , 76-90. Retrieved from https://www.sciencedirect.com/science/article/pii/S0967070X18302117
Zou, L., & Chen, X. (2017). The effect of code-sharing alliances on airline profitability. Journal of Air Transport Management , 58 , 50-57. Retrieved from https://www.sciencedirect.com/science/article/pii/S096969971630206X
