Code shares: same metal, different prices
#1
Original Poster




Join Date: Jun 2006
Location: California
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Posts: 4,240
Code shares: same metal, different prices
What is the point of airlines offering code shared flights where the flights on the same metal are differently priced depending on which airline they are bought through? Especially when the airlines are frequent flyer partners, so there is no reason to choose to buy from one airline over the other besides price. Sometimes, the "real" airline is cheaper, while other times, a code share airline is cheaper than the "real" airline.
#2
Join Date: Feb 2001
Location: Austin, TX
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What's the point of paying a different price for the same toothpaste at Ralphs vs. Vons? We pay different prices for the same thing from different sellers all the time.
The whole idea of codeshares is that the different marketers can charge whatever prices they want. I'd be more surprised if they always matched up exactly than if they were different.
However, having said that, one reason why the tickets might be of different actual value to you is that the fare rules could be different based on whom you buy the ticket from. But that might also be why you buy from one store over another too, maybe you like the return policy better.
The whole idea of codeshares is that the different marketers can charge whatever prices they want. I'd be more surprised if they always matched up exactly than if they were different.
However, having said that, one reason why the tickets might be of different actual value to you is that the fare rules could be different based on whom you buy the ticket from. But that might also be why you buy from one store over another too, maybe you like the return policy better.
#3
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With the exception of NW/KL codeshares, which have received broad anti-trust exceptions, codeshare partners are competing for customers. The governments allow codeshares, but don't let them to collude on price settings. If the seats are going for the same rate all the time, then something's wrong - again except for NW/KL.
#4




Join Date: May 2005
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Originally Posted by rkkwan
With the exception of NW/KL codeshares, which have received broad anti-trust exceptions, codeshare partners are competing for customers.
#5
Join Date: Aug 2006
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Originally Posted by rkkwan
The governments allow codeshares, but don't let them to collude on price settings. If the seats are going for the same rate all the time, then something's wrong - again except for NW/KL.
#7
Join Date: Jan 2006
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I regulalry now buy my tix out to SFO as an HP flight, although it is US metal because it is cheaper. ....... what makes this funnier of course is that HP is now US, one airline, one web site, no matter how you slice it , it is the same company, but HP on the ticket makes it cheaper
#8
FlyerTalk Evangelist


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Originally Posted by im_blue
But airlines often match ticket prices as part of competition, so codesharing airlines should be no different.
#9
Join Date: Apr 2005
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Same metal, different price
For specific dates SEA-PVD (R/T)
AS 1559 (Operated by AA 1196)
AS 4111 (Operated by AA 4153)
AS 4266 (Operated by AA 4119)
AS 1262 (Operated by AA 0425)
AS price = $373
AA price = $446 (for the same flights!)
AS 1559 (Operated by AA 1196)
AS 4111 (Operated by AA 4153)
AS 4266 (Operated by AA 4119)
AS 1262 (Operated by AA 0425)
AS price = $373
AA price = $446 (for the same flights!)
#11
Join Date: Apr 2005
Location: Here! (Or there - I'm not sure)
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Posts: 4,358
Originally Posted by nerd
Why should they be the same price?
#12
Join Date: Feb 2001
Location: Austin, TX
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Just remember that AS doesn't have to cover the overhead costs of empty seats when they sell a ticket, but AA does.
If code shares work the way I think they do, then AS has a fixed cost for each seat they sell. Their profitability on the flight is very straightforward: Ticket Price - Negotiated Seat Cost.
AA's ultimate profitability on the overall revenue for the flight / cost of operating the flight. This can change rapidly with fuel prices, load factor, seniority of the crew, etc. Yield Management can at any time decide to change the available inventory of fares to reflect the current conditions, while AS can continue to offer the ticket at stable prices. Sometimes AA will be better, sometimes AS will be better.
If code shares work the way I think they do, then AS has a fixed cost for each seat they sell. Their profitability on the flight is very straightforward: Ticket Price - Negotiated Seat Cost.
AA's ultimate profitability on the overall revenue for the flight / cost of operating the flight. This can change rapidly with fuel prices, load factor, seniority of the crew, etc. Yield Management can at any time decide to change the available inventory of fares to reflect the current conditions, while AS can continue to offer the ticket at stable prices. Sometimes AA will be better, sometimes AS will be better.
#13
Join Date: Aug 2004
Location: Raleigh, NC (RDU)
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Posts: 578
I noticed this same thing when booking some travel earlier this year to Mexico from DFW in that it was almost 2 for 1 tickets when booking the same flight with the Mexicana codeshare. I can see a few dollar difference but that was ridiculous.
So much for AA's "Lowest Fare Guarantee"...
--DD73
So much for AA's "Lowest Fare Guarantee"...
--DD73
Last edited by Dudleydog73; Aug 28, 2006 at 9:18 pm

