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Circular 269
Implications of Airline Codesharing
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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
Published in separate English, Arabic, French, Russian and Spanish editions by the International Civil Aviation Organization. All correspondence, except orders and subscriptions, should be addressed to the Secretary General. Orders for this publication should be sent to one of the following addresses, together with the appropriate remittance by bank draft, cheque or money order in U.S. dollars or the currency of the country in which the order is placed. Document Sales Unit International Civil Aviation Organization 999 University Street Montreal, Quebec Canada H3C 5H7 Telephone 5 14 954-8022 Telex 05-245 13 Facsimile 5 14 954-6769 Sitatex YULCAYA Internet sales-uniticao.org Credit card orders American Express, MasterCard and Visa are accepted at the abnve address. Egypt. ICAO Representative, Middle East Office, Egyptian Civil Aviation Complex, Cairo Airport Road, Heliopolis, Cairo 11361 Telephone 20 2 267-4840 Facsimile 20 2 267-4843 Sitatex CAICAYA France. ReprCsentant de I'OACI, Bureau Europe et Atlantique Nord, 3 bis, villa mile-ererat, 92522 Neuilly-sur-Seine Cedex Ttltphone 33 1 46 41 85 85 Ttltcopieur 33 1 46 41 85 00 Sitatex PAREUYA India. Oxford Book and Stattonery Co., Scindia House, New elh hi 110001 or 17 Park Street, Calcutta 700016 Telephone 91 1 1 33 1-5896 Facsmile 91 1 1 332-2639 Japan. Japan Civil Aviation Promotion Foundation, 15-12, 1-chome, Toranomon, Minato-Ku, Tokyo Telephone 81 3 3503-2686 Facsimile 81 3 3503-2689 Kenya. ICAO Representative, Eastern and Southern African Office, United Nations Accommodation, P.O. Box 46294, Nairobi Telephone 254-2 622-395 Facsimile 254 2 226-706 Sitatex NBOCAYA Mexico. Representante de la OACI, Oficina Norteamtrica, Centroam6rica y Caribe, Masaryk No. 29-3er. piso, Col. Chapultepec Morales, Mexico, D.F., 11570 Teltfono 52 5 250-321 1 Facsimile 52 5 203-2757 Sitatex MEXCAYA Peru. Representante de la OACI, Oficina SudamCrica, Apartado 4127, Lima 100 Teltfono 51 14 302260 Facsimile 51 14 640393 Sitatex LIMCAYA Senegal. Reprtsentant de I'OACI, Bureau Afrique occidentale et centrale, Boite postale 2356, Dakar TClCphone 221 23-47-86 T61tcopieur 221 23-69-26 Sitatex DKRCAYA Spain. A.E.N.A. - Aeropuertos Espaioles y Navegaci6n ACrea, Calle Juan Ignacio Luca de Tena, 14, Planta Tercera, Despacho 3. 11, 28027 Madlid Teltfono 34 1 321-3148 Facsimile 34 1 321-3157 Thailand. ICAO Representative, Asia and Pacific Office, P.O. Box 11, Samyaek Ladprao, Bangkok 10901 Telephone 66 2 537-8189 Facsimile 66 2 537-8199 Sittex BKKCAYA United Kingdom. The Printing and Publications Services Limited, Greville House, 37 Gratton Road, Cheltenham, Glos., GL50 2BN Telephone 44 1242 235- 15 1 Facsimile 44 1242 584-139 1 I97 Catalogue of ICAO Publications and Audio-visual Training Aids Issued annually, the Catalogue lists all publications and audio-visual training aids currently available. Monthly supplements announce new publications and audio-visual training aids, amendments, supplements, reprints, etc. Available free from the Document Sales Unit, lCAO
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.
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Table Of Contents
COVER PAGE
FOREWORD
TABLE OF CONTENTS
EXECUTIVE SUMMARY
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5