Airline Codeshare Alliances

Max Gerlach (), Catherine Cleophas and Natalia Kliewer

Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, 2013, vol. 5, issue 3, 153-163

Abstract: The paper juxtaposes the challenges that airline codeshare alliances create for analytical information systems on the one hand and their motivation from a marketing perspective on the other. The authors review the state-of-the-art literature on potential marketing benefits and analyze the impact on airline planning systems. In this regard, revenue management systems are of particular interest. Based on a simulation study, the authors infer a severe impact of decentralized codeshare controls as currently widely implemented in the industry on revenue management performance. In the scenarios examined, complementary codesharing reduces alliance-wide revenues by up to 1 %. Losses increase when a carrier experiences high local demand or a high degree of codeshare demand, and disseminate over the whole network. Virtual codeshares also cause losses of 0.3 % to 1.5 % depending on the discount level offered by the marketing carrier and on the demand structure. Finally, the authors formulate a set of managerial implications based on these findings. Copyright Springer Fachmedien Wiesbaden 2013

Keywords: Revenue management; Information systems; Airline alliances; Codesharing; Simulation; Marketing (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s12599-013-0262-8

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