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Published at Friday, March 22nd, 2019 - 13:27:26 PM. Type of airline. By Adelle Jäger.

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.

Codesharing is the most common type of airline partnership; it involves one airline selling tickets for another airline s flights under its own airline code. An early example of this was Japan Airlines (JAL) codesharing partnership with Aeroflot in the 1960s on Tokyo–Moscow flights; Aeroflot operated the flights using Aeroflot aircraft but JAL sold tickets for the flights as if they were JAL flights. This practice allows airlines to expand their operations at least on paper into parts of the world where they cannot afford to establish bases or purchase aircraft. Another example was the Austrian–Sabena partnership on the Vienna–Brussels–New York/JFK route during the late 60s using a Sabena Boeing 707 with Austrian livery.



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