The U.S. domestic market code-sharing is considered as being the same as the U.S. foreign airline alliances because they are both considered commercial agreements on how they can merge their services and offer them to the people in the local and international markets. The flight codes are put in the computerized reservations systems in which the carriers are allowed to operate on. According to Transportation.gov (2015), both of these partnerships are required by the Unites States air carriers for submission of cooperative service agreements including joint marketing, lounge access and joint frequent flyer, and the reciprocal code sharing to the Department. The reason for this requirement is for ensuring that the agreements do not, in any way, affect the public and that they are not anti-competitive ( Transportation.gov, 2015).
Additionally, the U.S Domestic Code-sharing and the U.S Foreign Airline alliance compare in that they are both able to harmonize capacity, services, and fares and operate like a single carrier in various specified markets as per the agreed conditions. This helps to enhance their competitive edge in the market and offer quality services. Moreover, both of them make agreements that enable carriers to increase their services without having to incur extra costs, equipment, and resources. This allows them to incur minimal costs and resources while maximizing profits (GSA, n.d).
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The difference between these two is that the U.S Domestic Code-sharing will operate mainly in the domestic markets while the U.S Foreign Airline Alliances will operate only on international markets. The U.S Domestic code-sharing allows the government to have access to its services, with contract carriers being the only ones providing extra services on code-share partners. On the other hand, the U.S Foreign Airline Alliances operates at international markets and makes all services provided on the code share available to all awarded markets ( Transportation. gov, 2015).
References
GSA. (n.d). Code Share Fact Sheet. U.S. General Services Administration. Retrieved from:
https://www.gsa.gov/travel/plan-book/transportation-airfare-rates-pov-rates/airfare-rates-city-pairs-programs/resource-library/code-share-fact-sheet
Transportation. gov. (2015). Alliances and Codeshares. U.S. Department of Transportation. Retrieved from: https://www.transportation.gov/policy/aviation-policy/competition-data-analysis/alliance-codeshares
