Codesharing is the name given to a
common airline industry marketing practice where, by mutual
agreement between cooperating carriers, at least one of the airline
designator codes used on a flight is different from that of the
airline operating the aircraft. In one version, two or more
airlines each use their own designator codes on the same aircraft
operation. Although only one airline operates the flight, each
airline in a codesharing arrangement may hold out, market, and sell
the flight as its own in published schedules. Codesharing also
refers to other arrangements, such as when a code on a passenger's
ticket is not that of the operator of the flight, but where the
operator does not also hold out the service in its own name. Such
codesharing arrangements are common between commuter air carriers
and their larger affiliates, and the number of arrangements between
U.S. air carriers and foreign air carriers has also been
increasing. Arrangements falling into this category are similar to
leases of aircraft with crew (wet leases). The Department
recognizes the strong preference of air travelers for on-line
service (service by a single carrier) on connecting flights over
interline service (service by multiple carriers). Codesharing
arrangements are, in part, a marketing response to this demand for
on-line service. Often, codesharing partners offer services similar
to those available for on-line connections with the goal of
offering ''seamless'' service (i.e., service where the transfers
from flight to flight or airline to airline are facilitated). For
example, they may locate gates near each other to make connections
more convenient or coordinate baggage handling to give greater
assurance that baggage will be properly handled. Codesharing
arrangements can help airlines operate more efficiently because
they can reduce costs by providing a joint service with one
aircraft rather than operating separate services with two aircraft.
Particularly in thin markets, this efficiency can lead to increased
price and service options for consumers or enable the use of
equipment sized appropriately for the market. Therefore, the
Department recognizes that codesharing, as well as long-term wet
leases, can offer significant economic benefits. Although
codesharing and wet-lease arrangements can offer significant
consumer benefits, they can also be misleading unless consumers
know that the transportation they are considering for purchase will
not be provided by the airline whose designator code is shown on
the ticket, schedule, or itinerary and unless they know the
identity of the airline on which they will be flying. The growth in
the use of codesharing, wetleasing, and similar marketing tools,
particularly in international air transportation, had given the
Department concern about whether the then-current disclosure rules
(14 CFR 399.88) protected the public interest adequately and led
the Department to adopt specific regulations requiring the
disclosure of code-sharing arrangements and long-term wet leases on
March 15, 1999. (14 CFR part 257) These regulations required U.S.
airlines, foreign airlines and travel agents doing business in the
United States, to notify passengers of the existence of
code-sharing or long-term wet lease arrangements. It also required
U.S. airlines, foreign airlines and travel agents to tell
prospective consumers, in all oral communications before booking
transportation, that the transporting airline is not the airline
whose designator code will appear on travel documents and identify
the transporting airline by its corporate name and any other name
under which that service is held out to the public.
US Code:
49
USC 41712 Name of Law: Unfair and deceptive practices and
unfair methods of competition
The program reporting
requirements have not changed since the previous request for
Extension of a Previously Approved Collection submitted in 2005.
Although, an adjustment has been made to the Information Collection
Request while the number of affected tickets has increased, the
estimated number of respondents has decreased. Both changes reflect
the changing nature of the passenger airline industry: increased
use of Internet booking sites, decreased numbers of and commissions
paid to travel agents, increased numbers of air travel journeys,
and increased number of codesharing agreements and global airline
alliance participation. Although the total hour burden has
increased, we estimate that the average cost per ticket, for both
airlines and travel agencies, has decreased from $0.56 to $0.38 per
ticket. This decrease reflects efficiencies inherent in industry
practice changes.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
60_Day_Notice_2105-0537_Disclosure_of_Code_Sharing_Arrangements_09.16.2011-23770.pdf
SupportingStatement_2105_0537_New Additions BS AB.doc
30-day FRN.htm
Disclosure of Code Sharing Arrangements and Long-Term Wet Leases