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CO/AC files codeshare with US DOT

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Old Aug 24, 2009 | 2:29 pm
  #16  
 
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Originally Posted by KVS
Don't underestimate the value of an impressive-looking route map that covers the entire planet, while maintaining a fleet that's 30 times smaller than would be required to physically fly those routes.
Ah, gimmickry! I knew it!

There are lots of other benefits too, including getting to keep fuel surcharges, based on the marketing flight numbers.

If AC looses 1 grandmother and gains 10 other PAX, based on their ability to market and sell non-existent AC flights, do you think it would be a tough choice to make?
Well, yeah, you're right -- it does allow more visibility in the reservations system. Instead of just 2 or 3 AC-operated flights showing on a route like YYZ-LAX, there's maybe a dozen that show up, compared to, Westjet's 1 or 2 that get drowned out.

But, on the other hand, doesn't the existence of 15 flights sort of create the perception of competition that really doesn't exist? UA might drop their price on the YYZ-LAX codeshare by $10, and suck sales away from AC. When half a dozen codeshares on the same route, on the same physical aircraft, isn't there almost certainly always at least one of the codeshare partners who offers the flight less expensively than the others? Would this not exert a downward force on pricing overall?

I know that, when I'm out shopping for goods and services, if 7 places are offering the same service, I can approach each of them and attempt to negotiate a lower price, ie: I get 7 'kicks at the can'. Whereas, if the service is only offered by 1 operator, there's not much ability to negotiate, eh?
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Old Aug 24, 2009 | 2:36 pm
  #17  
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Originally Posted by pitz
UA might drop their price on the YYZ-LAX codeshare by $10, and suck sales away from AC.
When was the last time AC.com showed comparative prices using the UA flight numbers (or vice-versa)?
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Old Aug 24, 2009 | 2:44 pm
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Originally Posted by emcampbe
Well, for one thing, they can say they offer service to destinations that they don't fly their equipment to. As a prime example, Air Canada doesn't send their own equipment here to CVG. But they do fly here. I can book AC 5XXX CVG-ORD, and then onward on AC equipment to YYZ.
But booking UAxxxx + ACxxx, if it was cheaper, would be the way you would go, right? I still fail to see how it is to *your* advantage, or even to AC's advantage, to have an AC flight number on your CVG-ORD segment.

Also, often codesharing is coupled with cost and revenue sharing. So, a flight from XXX-YYY might have costs shared equally by AC and Airline YY, while AC keeps the revenue from bookings it secures, while Airline YY keeps the revenue from the bookings it gets, even though its the same aircraft.
Can't this be done behind the scenes, and not dumped out onto the public? I mean, even AC realizes that, in Canada, they were creating a big problem by having both the "Jazz" and the "Air Canada" brand displayed in airports --so they arranged for the title, "Air Canada" to be used on all Jazz flights, in public displays.

Even AC realizes that inconsistent branding and inconsistent service is a major problem, and they've been making, much to their credit, huge (and very successful) strides to correct this.

So, instead of having to have customers connect on another carrier, AC or Airline Y it is codesharing with can both make money serving a destination they never could on their own.
And airlines didn't cooperate in a manner transparent to customers before codesharing?? AC (CP) had no problem booking people onto AI flights back in the 80s, and selling tickets such as YVR-YYZ-YUL-LHR-BOM, acting as an AI agent on the YYZ-YUL-LHR-BOM segments.

It also says on the ticket who's operating the flight (although, i agree, depending on who issued the ticket, this can be more challenging). But it keeps us on our toes, to look who is operating the flight.
I know we take a lot of things for granted these days (ie: nobody calls to 'confirm' flights anymore, like used to be required), but consumers shouldn't have to dissect a bunch of marketing gimmickry, just to figure out whether they're allowed one bag (ie: United), or 2 (AC). Or what website to look at to get a preview of the Buy-on-Board. And when AC puts its code onto, say, UA flights, it seriously dilutes the brand, especially when they read about all the great new AC IFE and on-board service, but get stuck with the typical UA filth.
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Old Aug 24, 2009 | 3:54 pm
  #19  
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How does CO codeshare on routes that AC does not operate but are on the list (eg YYC-YCD)?
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Old Aug 24, 2009 | 11:23 pm
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The day I can book a flight, lets say the following with metal used in brackets, booked as an AC ticket:

YYZ-ORD(AC)-MSP(UA)-ORD(UA)-YYZ(UA)

Arrive 20 minutes early from MSP to ORD on the return leg, with no checked luggage, and get on the FRICKEN AC METAL WHO I BOUGHT THE TICKET FROM that's leaving in 20 minutes instead of waiting 2 hours for the next UA flight, I'll book a codeshare again.

United Agent: "Sir, we can't book you on another airline - would that make sense to you?"

AAAAAARRRRGGGHHHHH

I have no reason to believe this will be any different on CO

</rant>
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Old Aug 24, 2009 | 11:40 pm
  #21  
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How about this as a connection for additional mileage? YXU-YYC-IAH-XXX. Not bad... I wonder if it will show up in the routing rules.

Planned codeshare routes are:

Continental operated by Air Canada
Calgary

* London ON
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Old Aug 25, 2009 | 3:16 am
  #22  
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Originally Posted by YYZ_TVGuy
United Agent: "Sir, we can't book you on another airline - would that make sense to you?"
I think I met that guy in ORD (although I'm sure there are many of them). Only he told me it was unreasonable of me to think that UA would willingly give up revenue and next time I should book directly on AC if that's who I wanted to fly.
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Old Aug 25, 2009 | 8:09 pm
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I thought maybe AC'd codeshare on YOW-EWR. Too bad.
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Old Aug 25, 2009 | 8:15 pm
  #24  
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Originally Posted by pitz
But booking UAxxxx + ACxxx, if it was cheaper, would be the way you would go, right? I still fail to see how it is to *your* advantage, or even to AC's advantage, to have an AC flight number on your CVG-ORD segment.
Sure, but that's a big if, since this would be combining two fares to get to your destination instead of one (one UA fare for the UA segment, and an AC one for the AC segment). This would almost never be cheaper. Codesharing means the fare is done as a through fare from origin to destination.

The question that I was answering was the one asked about the advantage to the airline. And that is, that, dependent on the details of the codeshare agreement, that AC may get the revenue instead of UA, even though UA is operating the flight. For me, it means I can book the whole thing on AC's Web site, and maybe, just maybe, it is cheaper than if I book on UA's Web site, because they may charge a higher fare for those same flights booked on UA's code. So this is more competition, too.

Can't this be done behind the scenes, and not dumped out onto the public? I mean, even AC realizes that, in Canada, they were creating a big problem by having both the "Jazz" and the "Air Canada" brand displayed in airports --so they arranged for the title, "Air Canada" to be used on all Jazz flights, in public displays.

Even AC realizes that inconsistent branding and inconsistent service is a major problem, and they've been making, much to their credit, huge (and very successful) strides to correct this.
Most organizations have huge problems in integrating things within different divisions of the same company. What makes you think AC would be able to properly arrange this on the backend with other carriers? Or that the other carriers are capable of doing this with AC?

And airlines didn't cooperate in a manner transparent to customers before codesharing?? AC (CP) had no problem booking people onto AI flights back in the 80s, and selling tickets such as YVR-YYZ-YUL-LHR-BOM, acting as an AI agent on the YYZ-YUL-LHR-BOM segments.
Yes, but this involves commissions being paid out to the other carrier like AI (though, not sure what the situation is now), and again, a transfer of revenue for the flights that AC might not have to pay if it was a codeshare. AC does do this in some instances, but mostly to destinations it doesn't have its own flights or codeshares to. These are all on international destinations as well, I believe. In this case, AC thinks that by acting as the agent for the connecting flight, this is the best (or perhaps, only) chance they have to make any money whatsoever, by getting the passenger on their own lucrative trans-atlantic or trans-pacific services before interlining them to the another carrier. For example, a customer going to somewhere in Africa is probably much more likely to book the whole trip on LH, BA or AF through Europe if they didn't get any options on Air Canada's Web site.


I know we take a lot of things for granted these days (ie: nobody calls to 'confirm' flights anymore, like used to be required), but consumers shouldn't have to dissect a bunch of marketing gimmickry, just to figure out whether they're allowed one bag (ie: United), or 2 (AC). Or what website to look at to get a preview of the Buy-on-Board. And when AC puts its code onto, say, UA flights, it seriously dilutes the brand, especially when they read about all the great new AC IFE and on-board service, but get stuck with the typical UA filth.
Not sure about the bag comment above (since when does UA only allow 1 bag?) but unfortunately, like it or not, that's the way the system works. AC wants the revenue to as many destinations as possible, even ones they don't have the demand to serve themselves, so they want to put their code on more flights. Other carriers are the same way.
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Old Aug 25, 2009 | 8:24 pm
  #25  
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Originally Posted by jonnyow
I thought maybe AC'd codeshare on YOW-EWR. Too bad.
My *guess* on why this did not happen is that some markets (including YOW-NYC) were excluded (or 'carved out') of the Anti-Trust Immunity agreement given by the US Department of Transportation:

...impose carve outs for nonstop traffic in the Cleveland-Toronto, Houston-Calgary, Houston-Toronto, and New York-Ottawa markets in which competition will be reduced from two carriers to one.
(from DOT-OST-2008-0234)
-Brian

Last edited by briantoronto; Aug 25, 2009 at 8:26 pm Reason: Added link to decision
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Old Aug 25, 2009 | 11:32 pm
  #26  
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Codesharing was sold to the regulators as a way to offer a larger variety and more frequent routes to the customer under the "name" of one airline. This was supposed to be less confusing and more convenient for passengers. Of course we know that is often not the case. The marketing carrier is supposed to be the customers contact and contract/tariff party BUT the airlines were very good at ensuring that the royal-run-around and finger-pointing occurs regularly.

Still, I recently booked an AC flight operated by Lufthansa that would have cost several $thousand more for the same seats on an LH ticket code.
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Old Aug 26, 2009 | 6:12 am
  #27  
 
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I see YYC-YQQ on the list. Air Canada dropped this route last year, are they bringing it back? Coming to YQQ often from YYZ, I'd much rather connect thru YYC then do the CMA flight from YVR.
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Old Aug 26, 2009 | 9:38 am
  #28  
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Originally Posted by briantoronto
My *guess* on why this did not happen is that some markets (including YOW-NYC) were excluded (or 'carved out') of the Anti-Trust Immunity agreement given by the US Department of Transportation:


(from DOT-OST-2008-0234)
-Brian
I'm not sure this is the reason. ORD-YYZ has been a carve out route since the beginning, and continues to be under the new agreement. UA and AC still put their respective codes on almost all, if not every flight between these two markets. Carve out doesn't mean they can't codeshare. It just means they can't coordinate on schedules and pricing. Also, IAH-YYZ/YYC are also on the carve out list, but listed as routes that will be codeshared.
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Old Aug 26, 2009 | 10:35 am
  #29  
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Originally Posted by emcampbe
I'm not sure this is the reason. ORD-YYZ has been a carve out route since the beginning, and continues to be under the new agreement. UA and AC still put their respective codes on almost all, if not every flight between these two markets. Carve out doesn't mean they can't codeshare. It just means they can't coordinate on schedules and pricing. Also, IAH-YYZ/YYC are also on the carve out list, but listed as routes that will be codeshared.
You are right. I should have been more clear. It was a guess on my part *because* the carve outs do not limit code-sharing, but that the carve out was the only obvious reason (to me) why this route would not be code-shared...

Brian
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Old Aug 26, 2009 | 4:13 pm
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Jeez AC is going to run out of flight numbers with all these codeshares... =)
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