A Note on Effective Code-Share Control in Practice
13 Pages Posted: 12 Feb 2015
Date Written: February 11, 2015
Code-sharing enables airlines to jointly market their inventory and constitutes a central component in alliance strategy. This article discusses a widely applied code-share revenue management process and quantifies the spread of code-sharing based on empirical data provided by Lufthansa German Airlines. We identify decentralization, heterogeneity, information asymmetry, and selfishness as main challenges to the implementation of effective code-share control in the industry. We examine the implications of these challenges from a business as well as from an information systems perspective, and exemplify them in the context of revenue management. Finally, we outline steps to improve code-share control and identify opportunities for future research.
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