Overall Analysis Of Code-Share Agreements In Global Markets

Code sharing on international markets has become a significant opportunity for airlines which has grown rapidly in recent years across the airline industry. Considering the impossibility for one airline to provide customers demand of seamless service and from anywhere to anywhere service on its own aircraft, code sharing appears to be a reasonable and practical alternative. In order to meet customer demands at feasible costs, airlines started to seek commercial partners to contribute them provide the required network and service coverage. Since, cross-border mergers, which are ordinary in other industries, may be prohibited for airlines in many jurisdictions, alliance relationships between airlines have extended to satisfy an obvious need for network cooperation, as a close substitute for mergers.