Two important studies by the Office of Aviation Analysis have played a key role in the development of the department`s current international alliance policy: when a flight is sold between several aespics and flight numbers, as described above, the administrative carrier is often referred to as „Prime Flight“ (unlike a codeshare marketing flight). U.S. airlines are required to submit cooperative service agreements to the Department between them, such as code-sharing, common access to frequent flyers and lounges, and joint marketing, for verification before implementing these agreements. 49 USC 41720. The department does not approve or reject the agreements. On the contrary, the department is reviewing the agreements to ensure that they do not harm the public and that they are not anti-competitive. The Department may, as part of its legal jurisdiction, take steps to maintain competition at 49 USC 41712. There are several types of code-sharing agreements: alliance agreements, which almost always contain a code-sharing element, are often accompanied by requests for exemption from antitrust legislation that might otherwise prevent airlines from cooperating on certain aspects of their common services, such as fares and capabilities, as if they were a single airline. Important code-sharing and alliance agreements require careful consideration of their impact on competition both domestic and international. In 1967, Richard A. Henson joined the country`s first codeshare relationship with US Airways` predecessor, Allegheny Airlines. [2] The term „codeshare“ was coined by Qantas and American Airlines in 1989[3] and in 1990, the two companies made available their first codeshare flights between a number of Australian and American cities.
Since then, the sharing of parts of codes has spread in the aviation sector, particularly as part of the formation of major airline alliances. These alliances have extensive code-sharing and network loyalty programs. A codeshare agreement, also known as codeshare, is a common commercial agreement in the aviation industry, in which two or more airlines publish and market the same flight under their own airline manager and flight number (the „flight code“) as part of their published flight plan. Typically, a flight is designated by an airline (technically referred to as the „administration company“[1]), while seats are sold by all airlines that have cooperated with their own name and flight number. Major U.S. and foreign carriers may comply with 49 U.S. carriers. C 41308-41309 seek immunity from U.S. antitrust law to operate certain business alliances. Immunity allows these airlines to coordinate their fares, services and capacity, under certain conditions, as if it were a single airline in those markets.