Airline distribution Travel technology glossary

CodeshareCode-sharing agreement

Also called code sharecode-sharingcodeshare flightmarketing carrier

Definition

A codeshare is an arrangement in which an airline sells seats under its own flight number on a flight operated by another airline. The selling airline is the marketing carrier, the airline that flies the aircraft is the operating carrier, and one flight can carry several partner flight numbers.

What Codeshare means

Codesharing lets airlines extend their networks without adding aircraft. A carrier can show a partner's flight in its own schedule, sell it under its own two-letter IATA code and connect it to its own flights. In the airline's PSS, codeshare flights are managed in inventory alongside the airline's own services.

US federal rules give a clear legal definition. Under 14 CFR Part 257, a code-sharing arrangement is one in which a carrier's designator code identifies a flight operated by another carrier. Airlines and ticket agents must disclose the operating carrier: online, its name must appear next to each codeshare flight on the first results screen; at purchase, the confirmation must say "Operated by" followed by the operating carrier's corporate name; and agents selling by phone must tell the customer.

The US Department of Transportation notes that airline alliances nearly always include codesharing. Where partners hold antitrust immunity, they can go further and coordinate fares, services and capacity in covered markets as if they were one airline.

Codesharing is related to, but different from, interlining. Codeshare partners normally interline as well, because the marketing carrier's ticket has to be accepted by the operating carrier.

How Codeshare works

A codeshare flight is sold by one airline and flown by another, so data and money have to flow between both.

  1. Partners agree termsThe airlines sign a codeshare agreement covering which flights carry the partner code and how seats are made available.
  2. Schedules are publishedThe marketing carrier publishes the partner's flight under its own flight number, flagged as operated by the partner.
  3. The seat is soldA travel agency or website sells the marketing flight number, and the booking is passed to the operating carrier's system.
  4. The operating carrier fliesThe operating airline usually handles check-in, boarding and onboard service for the flight.
  5. Revenue is settledThe airlines settle the fare between them under the terms of their agreement.

Codeshare in practice

Illustrative display: a GDS or booking site shows flight XX 1234 from London to Doha with the note "Operated by YY Airways". XX is the marketing carrier that issued the ticket, YY is the airline flying the aircraft, and the same flight may also appear as YY 5678 under its own number.

US disclosure wording: under 14 CFR 257.5, a ticket confirmation for a US-regulated sale must include the words "Operated by" followed by the operating carrier's corporate name. Roll-over or pop-up disclosures do not satisfy the online display rule.

Agency practice (illustrative): before issuing, an agent checks the operating carrier's baggage allowance and check-in deadline, because these can differ from those of the marketing airline whose code is on the ticket.

Who uses it

AirlinesCarriers use codeshares to offer more destinations and frequencies under their own brand and connect them to their own network.
Travel agenciesAgents must identify the operating carrier, disclose it to the customer and check which carrier's rules apply to bags and check-in.
RegulatorsAuthorities such as the US DOT require disclosure of the operating carrier and review codeshare agreements involving foreign airlines.
TravellersPassengers see more flight choices under a familiar airline name and can often earn that airline's loyalty points.

Advantages and limitations

Advantages

  • Airlines can enter new markets and offer more connections without operating extra aircraft.
  • Joint schedules make connections across partners easier to sell and to display in booking systems.
  • The operating carrier fills more seats through its partners' sales channels.

Limitations

  • Passengers can be confused about which airline they are actually flying and where to check in.
  • Baggage, seat selection and change rules may differ between the marketing and operating carriers.
  • Agencies face disclosure obligations, and in the US enforcement action is possible if the operating carrier is not shown.

Frequently asked questions about Codeshare

What does 'operated by' mean on a flight booking?

It means the flight is a codeshare. The flight number on your booking belongs to one airline, but another airline, the one named after "operated by", actually flies the aircraft. That operating airline usually handles check-in, boarding and the onboard product, so travellers should follow its airport and baggage guidance.

Why do airlines codeshare?

Codesharing lets an airline sell destinations and frequencies it does not fly itself, under its own brand and flight number. It helps fill partners' aircraft, makes connections easier to market and supports alliance and joint venture strategies. It also means a carrier can appear in more search results for routes it does not operate.

Which airline's baggage rules apply on a codeshare flight?

It depends on the itinerary and the carriers involved, so it should always be checked. The marketing airline, the operating airline and the airline that issued the ticket can each have different policies, and the rule that applies varies by journey. Agents should confirm the allowance shown in the booking or the fare rules before travel.

Do travel agents have to disclose codeshare flights?

In the United States, yes. Federal rules in 14 CFR Part 257 require ticket agents and airlines to name the operating carrier in online displays, in oral sales and in the written confirmation, using the words "Operated by". Other countries have their own consumer rules, and clear disclosure is good practice everywhere.

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Sources and further reading

  1. eCFR — 14 CFR Part 257, Disclosure of change-of-gauge and code-share services
  2. US Department of Transportation — Alliance and codeshare agreements
  3. Amadeus — Altéa Passenger Service System (inventory incl. codeshares)