CODE SHARE AGREEMENT OF AIRLINES WITHIN THE COUNTRY

Code share agreement is an aviation business where two or more airlines share the same flight.
The each airline operates the flight under its own airline designator and flight number differs
according to the destination. A seat can be purchased on each airlines designator, but it actually
operated by only one of these cooperating airlines and its called as Administrating Carrier.
Worldwide airline alliances are Star, SkyTeam and oneworld.
For example, BA786 operated by British airways, might also sold by DL2229 because both
Delta airline and British airways have code share partnership agreement, so the seat can be sold
either in Delta airlines or British airways. The advantage of code share is, though there is less
traffic in particular destination the airline can be operated by code share agreement.
There are three different types of code shares online code-shares, network extension code-shares,
interline code-share.
For example: If British airways is operating from London Gatwick to New York with high
passenger traffic, but Boston to Phoenix with less passenger traffic, there is no prerequisite of
flying from Boston to Phoenix, so the airline introduce the concept of network extension code
share.
LGW
BA786
BOS
DL2229
PHX
The Advantages of Code Share Agreement.
The seats of Delta airlines are shared with British airways so that British airway is also able to
sell Delta seats. These partnerships have also meant a tremendous cost saving to regional/
commuter airlines, and in short they have become an integral part of the national air-
transportation system, they can conveniently sell each others seat as their own, thus reducing
the competition.
If the airline BA is not serving city PHX, via code share agreement now the airline can expand
their destinations. The two interlining airlines produce the opportunity to offer a high
competitive joint fare, so the customers are attracted to it, the revenue will be shared by both the
airlines according to the seats sold in Delta airlines by British airways. These code share
agreements are used to extend their destinations and increase their revenue.
Airlines which come under the alliances only can trail the concept of code share agreement.
Airlines which are not participating in alliances are cannot trail the code share concept, the
concept to mint money for non-alliance airlines are to participate in Intra Code-Share Concept
(intra- within the country ) the concept of code share within the country. For example:
the Combination of AA UA, B6 DL.

THE CONCEPT OF INTRA CODE-SHARE AGREEMENT OF AIRLINES
IN INDIA
In India the number of various airlines over the last few years indicate that there are not too
many takers for full-service carriers, certainly not enough to be profitable. According to the
CAPA report, in 2014, so far about 6.1 crore flew domestically. Out of this, only one-third, i.e.,
2.2 crore took the full-service carriers Air India and Jet Airways (Kingfisher is grounded for two
years). The low-cost carriers flew about 3.9 crore (two-third of the total flyers). The economic
downturn has made not only individual travellers cut costs, but the so-called suave corporate
travellers too are cautious about spending. In most cases, companies prefer to book low cost
carriers for their executive, barring only the senior most. This has impacted the occupancies of
the full service airlines. Unfortunately, the trend is expected to go on meaning challenging times
for the full service airlines. - (Stated in 24 aug 2014, TOI).
India's aviation sector has been going through rough skies. The last few years had the biggest
names bleeding in the airline space in India. According to the Centre for Asia Pacific Aviation
(CAPA) India Aviation Outlook report, the last seven years have been quite challenging for the
Indian airline sector with its cumulative total loss (in these seven years) about $10.6 billion.
To sustain in the market, each and every airlines are following multiple strategies, only few are
successful in Indian market. Airlines started to implement the concept of no frill airlines, but still
airlines are facing continues losses. In India there are only few airlines are operating Full Service
operation, day by day full service operations are fading. Airlines are turning themselves as low
cost carrier. The reason is fuel hike in the market, and that fuel hike leads to increase in fare.
People cannot afford to buy the tickets.

By introducing the concept of intra code share, the airlines can expand their destinations and also
fuel can be saved. For example: if Indigo is flying from Bombay to Jodhpur via New Delhi,
If the passenger traffic is high in BOM DEL and DEL JDH passenger traffic is low, so the
airline can go with the intra code share agreement with an airline which has high passenger
traffic with that particular sector.
BOM
6E
DEL
SG
JDH

By applying the network extension code share in the concept of intra code share (code share
within the country) the revenue will be shared by both the airlines. So the airlines can offer lower
fares in India, and people can afford to buy an air ticket, and finally our dream comes true.
Every One Can Fly