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Code‐sharing Agreements and Interconnections in Markets for International Flights

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  • Orit Hassin
  • Oz Shy

Abstract

The paper investigates the consequences of code‐sharing agreements among airline firms competing on international routes, where some passengers interconnect to flights originating or terminating at cities not served by foreign airlines. The authors calculate the precise market share captured by flights operated under code sharing. They compare airfares, market shares, profits, and passengers’ welfare before and after the implementation of a code‐sharing agreement and demonstrate that code sharing is Pareto‐improving.

Suggested Citation

  • Orit Hassin & Oz Shy, 2004. "Code‐sharing Agreements and Interconnections in Markets for International Flights," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 337-352, August.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:3:p:337-352
    DOI: 10.1111/j.1467-9396.2004.00453.x
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