Alliances and Codeshares
The US domestic market codesharing is different from US foreign airline alliances. The reason is that not all airlines comprise of the codesharing component in their agreements. Code-sharing is the public relations agreement where an airline company places its code on the flight operated by another company to strengthen its brand and expand its market. Here, the latter sells tickets for the airline, which eventually increases its connectivity. An airline alliance is an industrial agreement between two or more airlines to work together on a considerable level. Therefore, for airline alliance, passengers from airline X can fly on flight Y and still use mileage. With codesharing, passengers on X can only fly on specific routes used by Y. Notably, airline alliances may or may not use codeshares in their operations since they may be looking to increase the load factor rather than increasing profits.
Furthermore, codesharing is only beneficial to the airlines, while alliances consider the passengers and the carriers. With codesharing, the airlines obtain increased connectivity, which results in profits from ticket arbitrage. Here, the passengers suffer high flight tickets since the airline has to get its cut of the profits. Besides, the airline that is listed to codeshare markets the airline and increases shared profits. On the other hand, alliances benefit the passengers such that they get decreased price tickets when interlinking cities since they use one ticket during such instances. This is due to the massive number of passengers that increased the aircraft’s load factor, thus serving the interests of both parties involved.
In conclusion, the US domestic market codesharing differs from the US foreign airline alliance. This is because the former is more advantageous towards the carriers, while the latter is beneficial to both parties. Code-sharing is conducted to market an airline and generate profits from increased connectivity. On the other hand, alliances are agreed upon to aid in cutting trip costs when interlinking cities.