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The effects of Code-Share agreements on the temporal profile of airline fares

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Abstract

This paper aims at investigating how the pricing strategy of European airlines is affected by code-share agreements on international routes. Our data cover several routes linking the main UK airports to many European destinations and includes posted fares collected at different days before departure. By analyzing the temporal profile of airline fares, we identify three main results. First, code-share increases fares especially for early bookers. Second, the higher prices in code-shared flights are offered by marketing carriers. Finally, in single operator code-shared flights (unilateral code-share), the pricing profile is flatter than under parallel code-share.

Acceptance Date Apr 1, 2015
Publication Date Apr 18, 2015
Journal Transportation Research, Part A. Policy and Practice
Print ISSN 0965-8564
Publisher Elsevier
Pages 42 -54
DOI https://doi.org/10.1016/j.tra.2015.03.023
Keywords Code-share, Dynamic pricing, Operating carrier, Marketing carrier, Revenue management
Publisher URL https://doi.org/10.1016/j.tra.2015.03.023

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