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Airline Codeshare Alliances

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  • Max Gerlach
  • Catherine Cleophas
  • Natalia Kliewer

Abstract

The paper juxtaposes the challenges that airline codeshare alliances create for analytical information systems on the one hand and their motivation from a marketing perspective on the other. The authors review the state-of-the-art literature on potential marketing benefits and analyze the impact on airline planning systems. In this regard, revenue management systems are of particular interest. Based on a simulation study, the authors infer a severe impact of decentralized codeshare controls as currently widely implemented in the industry on revenue management performance. In the scenarios examined, complementary codesharing reduces alliance-wide revenues by up to 1 %. Losses increase when a carrier experiences high local demand or a high degree of codeshare demand, and disseminate over the whole network. Virtual codeshares also cause losses of 0.3 % to 1.5 % depending on the discount level offered by the marketing carrier and on the demand structure. Finally, the authors formulate a set of managerial implications based on these findings. Copyright Springer Fachmedien Wiesbaden 2013

Suggested Citation

  • Max Gerlach & Catherine Cleophas & Natalia Kliewer, 2013. "Airline Codeshare Alliances," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(3), pages 153-163, June.
    • Handle: RePEc:spr:binfse:v:5:y:2013:i:3:p:153-163
    DOI: 10.1007/s12599-013-0262-8
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    References listed on IDEAS

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    Cited by:

    1. Fukushi, Mitsuyoshi & Delgado, Felipe & Raveau, Sebastián & Santos, Bruno F., 2022. "CHAIRS: A choice-based air transport simulator applied to airline competition and revenue management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 297-315.
    2. Daniel Fürstenau & Catherine Cleophas & Natalia Kliewer, 2020. "How Do Market Standards Inhibit the Enactment of Digital Capabilities?," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(4), pages 279-287, August.
    3. Gerlach, Max & Kliewer, Natalia & Cleophas, Catherine, 2016. "A note on effective code-share management in practice," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 202-205.

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