Published at Sunday, March 31st, 2019 - 07:12:27 AM. Type of airline. By Adriane Lorenz.
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.
A second financial issue is that of hedging oil and fuel purchases which are usually second only to labor in its relative cost to the company. However with the current high fuel prices it has become the largest cost to an airline. Legacy airlines compared with new entrants have been hit harder by rising fuel prices partly due to the running of older less fuel efficient aircraft. 44 While hedging instruments can be expensive they can easily pay for themselves many times over in periods of increasing fuel costs such as in the 2000–2005 period.
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