Code-sharing, a practice in which partner airlines put their own code on each other’s flights and then market them to their customers, is a topic that gets people both confused and riled up. Critics say code-sharing misleads the public: If a flight isn’t being operated by Delta Airlines, why should it be listed in Computer Reservation Systems and on departure boards as a Delta flight. The airlines claim that the practice is necessary to be profitable, and that it contributes significantly to the bottom line. Savvy travelers often seem least fussed about it, as they can benefit from reciprocal loyalty program benefits.
What nobody points out is that code-sharing leaves the impression that fares are the same no matter which airline you book...THEY’RE NOT.
In fact, my research shows that fares can vary up to 62%. And when there is a fare discrepancy, it’s usually the airline operating the flight that’s charging less.
Why? Because the operating airline manages more seats, more actively. The partner carrier, with fewer seats allocated to sell, never really has much of a surplus, so it has little incentive to put seats on sale. The partner carrier’s selling point is one of convenience, a seamless connection with another flight.
But who cares about the technicalities? The point is that if you book Business Class on Asiana OZ201 (Los Angeles Seoul), you’ll pay $2,866. Book United UA4661, the same flight, and you’re out $3,434. In fact, my research shows that you’ll find the best deals by looking at code-sharing partnerships like this one—between a first-tier and a second-tier carrier (and I don’t mean that pejoratively). The reason is that the first-tier carrier prices the seat as though it were operating the flight, in line with its fare structure—usually higher than the second-tier carrier.
Here’s another sterling example: American Airlines and Turkish Airlines code-share the New York-Istanbul route, the latter operating the flight. A Business Class ticket from Turkish Airlines will cost you $3,570, while Biz Class on American will cost $5,434—a difference of 52% or $1,864!
I spoke to Robert McGurk, VP of Corporate Travel Services at Turner Broadcasting who is in charge of getting CNN’s journalists around the world, and he added a very interesting detail to be aware of. McGurk says that when there is a code-share partnership between a first-world carrier and a carrier from a lesser developed country, it’s often best to have your ticket issued on the local carrier. The reason: It gives you much more weight should something go awry, as a ticket ‘plated’ with the local carrier will command more attention from its employees than a ticket from one of its overseas partners. Regarding the airfares, McGurk said, “It takes an experienced international agent to have a handle on the pricing of these fares. It’s still a learning process for the airlines. You ask two airlines what code-sharing means, and you’ll get two different answers.”
When published fares are the same, but available fares are different
Let’s say that the fares do happen to be the same. That doesn’t necessarily mean the available fares will be. The allocation of seats at a certain fare level (referred to as ‘fare buckets’) can make a big difference in the fare you’re quoted.If there are two different Business Class fares in a certain market, one carrier may only have seats available at the highest fare level on the flight you’re looking at, while the other carrier might still have seats available at its lowest fare levels.
The difference can amount to thousands.
Without doing the comparison, you’ll never know. (Another reason a good travel agent can be worth his weight in gold.) See the table below for more examples of code-share discrepancies.
What about upgrades?
You may have to balance savings with perks, however. On domestic flights, you may not be able to use elite or mileage upgrades, if your primary carrier is not operating the flight. Delta Medallion members, for example, cannot upgrade on flights with code-share partners Northwest and Continental. However, Continental OnePass elites can upgrade code-share flights with partner Northwest. Mileage upgrades work similarly.[table_opt id="4959" style="blue-header" alignment="thleft" heading="thcenter" rows="tdcenter" responsive="all"]
Code-sharing, a practice in which partner airlines put their own code on each other’s flights and then market them to their customers, is a topic that gets people both confused and riled up. Critics say code-sharing misleads the public: If a flight isn’t being operated by Delta Airlines, why should it be listed in Computer Reservation Systems and on departure boards as a Delta flight. The airlines claim that the practice is necessary to be profitable, and that it contributes significantly to the bottom line. Savvy travelers often seem least fussed about it, as they can benefit from reciprocal loyalty program benefits.
What nobody points out is that code-sharing leaves the impression that fares are the same no matter which airline you book...THEY’RE NOT.
In fact, my research shows that fares can vary up to 62%. And when there is a fare discrepancy, it’s usually the airline operating the flight that’s charging less.
Why? Because the operating airline manages more seats, more actively. The partner carrier, with fewer seats allocated to sell, never really has much of a surplus, so it has little incentive to put seats on sale. The partner carrier’s selling point is one of convenience, a seamless...