ExpertFlyer Hot Topics — Where the Rubber Meets the Runway
Understanding esoteric subjects, like code sharing, yield management, and confounding airline pricing schemes could easily become a full-time job for the diligent. With the help of former pilot, air travel and insurance expert, Jonathan Breeze, we’ve uncovered — and hacked — a troublesome pricing pitfall among the airlines.
WATCH our Video Interview with Jonathan Breeze
Don’t get caught by code sharing ticket price mark-ups
First, let’s define what Code Sharing is. Wikipedia defines a Code Share Agreement as an aviation business arrangement where two or more airlines share the same flight; meaning that each airline publishes and markets the flight under its own airline designator and flight number as part of its published timetable or schedule. This is a common practice among major airlines belonging to major airline alliances, such as Star Alliance, Sky Team and Oneworld.
So, let’s assume for a moment that you are an American Airlines frequent flyer. You need to fly to Lima, Peru. So, as a loyal AA customer, you go straight to their site to see what’s available.
Departing on August 15th and returning on August 23rd, the results yield a lowest fare of $3,025 for a non-refundable seat in Business Class. In this particular example, LAN Airlines (LATAM Airlines Group) is the operator of the flight. American Airlines and LAN have a code share agreement and are both part of the oneworld Airline Alliance. That said, the assumption would be that the price would be the price, right? But if you visit LAN’s website and query the same departure and arrival information for the dates above, as you can see there is quite a BIG difference in price — $1,834 vs. $3,025.
Jonathan advises air travelers to be mindful and wary of this yield management practice. If you see that a flight is being operated by a partner of your preferred airline, do a quick cross-check on their website to be sure you are getting the best possible price — if they are partners in a major airline alliance your ability to accrue points/miles will not be affected.