Published at Tuesday, March 26th, 2019 - 08:11:41 AM. Type of airline. By Adalrik Engel.
One argument is that positive externalities such as higher growth due to global mobility outweigh the microeconomic losses and justify continuing government intervention. A historically high level of government intervention in the airline industry can be seen as part of a wider political consensus on strategic forms of transport such as highways and railways both of which receive public funding in most parts of the world. Although many countries continue to operate state-owned or parastatal airlines many large airlines today are privately owned and are therefore governed by microeconomic principles to maximize shareholder profit.
Since airline reservation requests are often made by city-pair (such as show me flights from Chicago to Düsseldorf ) an airline that can codeshare with another airline for a variety of routes might be able to be listed as indeed offering a Chicago–Düsseldorf flight. The passenger is advised however that airline no. 1 operates the flight from say Chicago to Amsterdam and airline no. 2 operates the continuing flight (on a different airplane sometimes from another terminal) to Düsseldorf. Thus the primary rationale for code sharing is to expand one s service offerings in city-pair terms to increase sales.
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