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Code shares: same metal, different prices

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Code shares: same metal, different prices

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Old Aug 25, 2006 | 11:53 pm
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tjl
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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.
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Old Aug 26, 2006 | 12:28 am
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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.
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Old Aug 26, 2006 | 7:12 am
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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.
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Old Aug 26, 2006 | 10:32 am
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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.
Not if one carrier is non-USA and one is USA and the passenger is on the US gov'ts $. Then the US carrier can charge extra because there is no competition for that customer.
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Old Aug 27, 2006 | 5:07 pm
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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.
But airlines often match ticket prices as part of competition, so codesharing airlines should be no different.
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Old Aug 27, 2006 | 9:44 pm
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Originally Posted by rkkwan
The governments allow codeshares, but don't let them to collude on price settings.
Isn't that IATA's job
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Old Aug 27, 2006 | 10:50 pm
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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
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Old Aug 28, 2006 | 8:02 am
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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.
While they often match prices, they don't often match inventory.
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Old Aug 28, 2006 | 12:08 pm
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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!)

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Old Aug 28, 2006 | 12:44 pm
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Originally Posted by the_traveler
AS price = $373
AA price = $446 (for the same flights!)

Why should they be the same price?
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Old Aug 28, 2006 | 2:09 pm
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Originally Posted by nerd
Why should they be the same price?
While I agree that it should not necessarily be the same fare - the flights are all operated on AA metal. The fare for an AS ticket (on all 4 flights) is $71 lower than if you purchased an AA ticket!
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Old Aug 28, 2006 | 4:13 pm
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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.
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Old Aug 28, 2006 | 8:21 pm
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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

Last edited by Dudleydog73; Aug 28, 2006 at 9:18 pm
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