lCAO CIRCULAR 269.11 I o CIRCULAR IMPLICATIONS OF AIRLINE CODESHARING Approved by the Secretary General and published under his authority INTERNATIONAL CIVIL AVIATION ORGANIZATION MONTREAL CANADA
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FOREWORD In a rapidly changing global economy, the international air transport industry must continuously find new ways to adapt to trends and to changing and increasingly competitive conditions. Codesharing and other related forms of airline co-opeiative ventures have been adopted by many international carriers either to extend their global reach . or simply to survive in the more competitive environment, enabling them to be better placed in the marketplace. Such agreements have proliferated in the past years and the recent trend shows no sign of abatement. Not all carriers have embraced codesharing, however, and the practice has been contested by some. Because codesharing involves much more than simple marketing or operational techniques, its wide application raises a certain number of potential regulatory concerns, mainly on the consumer and competitive aspects. Such developments have focused the wider attention of the aeronautical community on codesharing and at the same time generated a number of national and regional studies, some of which are still under way. When the ICAO World-wide Air Transport Conference convened in Montreal from 23 November4 December 1994 to explore the future regulatory framework of international air transport, it identified a number of aspects on which further studies were needed. Codesharing was among the topics selected to be examined by the Organization. This study was prepared by the Secretariat in 1996, drawing on available published information, including estimated 1995 data where .necessary, specific studies already published for the Governments of the United States and Germany as well as for the European Commission, and ICAO's own documentation and research, with input provided by the European Civil Aviation Conference ECAC and by different Contracting States. Since codesharing is a relatively recent phenomenon - at least in its international application - and the situation is constantly evolving, any study on the subject is liable to be quickly overtaken or outdated by new factors. Moreover, the recentness of some of the agreements makes it difficult, in certain instances, to obtain any useful perspective on their results. Subject to these reservations, this study examines the present situation, seeks to address comprehensively the implications of codesharing and identifies certain areas where caution should be exercised by regulatory authorities. This study has been approved by the Secretary General and published under his authority.
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of ICAO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.