INTERACT PARTY - Codesharing: a practical example

[bukatino2000]

Let' us work on some practical considerations on how to implement a codesharing system.

Assuming that such a system is very complex to be implemented, followings comments could represent a very basic structure for successive developments:

I' m presenting an example based on actual business information related to my company. At moment some total/partial unutilized demand are going to be left on the ground. It would be then of interest offering for example Rome /FCO – Phoenix /PHX. At present 140 pax/day are available on this leg. If you do not want to invest on a direct flight you may take into consideration offering this as a codesharing route. This would be able to happens via London Heatrow /LHR, already served from my BIX489 arriving daily at 06.25 AM.
               
               

From London Heatrow /LHR the second leg to Phoenix /PHX would be operated by codesharing partner Trans International Airline, member of same alliance (if not within the alliance would rise the lead question: WHY an alliance??). This is the flight plan to PHX:

--3----    TIA1335    0840    1255    B763    TRANS INTERNATIONAL AIRLINES

-----6-    TIA1142    0945    1335    MD11    TRANS INTERNATIONAL AIRLINES

-2-----    TIA1156    1345    1735    MD11    TRANS INTERNATIONAL AIRLINES


A rule stating a time interval from arriving to departure (example 8 hours but could be also shorter) would allow codesharing on scheduled days. Passengers for the codesharing would be assigned as percentage of the 140 pax for PHX, calculated as it is now based on prices , both two route image, both two company image, alliance image, departure time and so on. Then added to the passengers demand assigned to FCO – LHR leg. It means also that total passenger demand for a specific route would always be a sum of the specific route demand + possible total route demand in codesharing.

Both A/C involved in the codeshare must agree to set up operations.

Some obstacles to avoid  "sunday codeshare" have to be inserted like a one shot charge at the beginning for authorisation/software setup/taxes, calculated on total kilometers and –yeah! even a loss of image profit if demand increment generated by codesharing remains not satisfied because previous LF was yet near to 100%.
In the edit route mask a link to a "codesharing page" must provide the possibility to insert flight no. (one or more) TIA1335; TIA1142 of the codeshared flights. Same to be done on the other side. More codesharing agreements must be allowed for each company and must be included an option for return flight and rescission from the agreement.

Some graph on the route planning mask to Phoenix /PHX must also shows the codeshared daily demand, near by the general demand.

I am sure this is not the only way to introduce such a tool but surely it would bring a lot of fun and excitement here around. Let'us see who is placing other useful comments.

[Kontio]

What you are proposing has more to do with connecting passengers than codesharing. I would think it was a bit odd that I could offer connecting flights in co-operation with an alliance partner but I coudn't offer connecting flights through my hub. I would really like to see a similar tool where I could connect my own flights through my hub with similar rules you propose. However, there are problems.

What I fear is that it would get very complicated with your alliance offering the routing you suggest, another alliance offering the flight via Atlanta, and maybe someone even offering a direct flight. You might also want to offer a flight to Denver via Heathrow with your alliance. Now your FCO-LHR flight has passengers flying from FCO to LHR, FCO to PHX via LHR, and FCO to DEN via LHR. What if you don't offer enough seats for all of these passengers at suitable times? How does the system decide which passengers get priority? What about cancellations and delays, now the system just cancels a flight but with connections enabled it also has to check which connecting flights are affected. You mention the passenger numbers, with specific route demand + codeshare demand, but really the codeshare demand is only for flights at a certain time window and it gets even more complicated if you have multiple codeshares (like PHX and DEN). How do you show that in a graph?

[bukatino2000]

you´re right and maybe connecting own flights would come teorical first but one of the nice things is that connecting flight with other players woud rise the interaction enormous ==> game fun, the same is not to be found in other case. That´s why I use the term codeshare more than connection.

I know this feature would be very complicated but more than ever what were to have at the end. We could limit the flights to only two so that for example Denver do not play any active role in my example. For a connection to Denver you may open another codeshare leg Rome/FCO - London /LHR - Denver /DEN completally self-sufficient. The problem is if the system would support more codeshares also from different airlines on the same route as I would suppose giant supply would arise on main routes. Minor problems would be cancellations/delay management and a graph suited to the job.

Other comments?

[iwa]

I would like to comment on the pricing structure for connecting/codesharing flights.

I think there would be a need to set different prices for the flight depending on the final destinations of the passengers.  In the real world, connecting flights are always cheaper than direct flights because there's inconvenience for the passengers. Using your example, the price for FCO-LHR-PHX should be less than a direct FCO-PHX flight.  However, if you simply add the price of FCO-LHR and LHR-PHX, I am quite sure it is more expensive, and no one would want to fly it (unless demand is super high).  Therefore, for the FCO-LHR flight you would need to set different prices for passengers who are actually travelling to LHR and for passengers who are moving on to PHX.

Actually, I will be quite excited if there's the connecting/codesharing flights feature because it adds a whole new dimension of realism to the game, but the more thinking I do, I realized it's just very complicated and would need careful consideration and planning.

[toyotaboy95]

Further comment. I've searched "codeshare airline game" on Google and found a free airline simulation game has already implemented codesharing on 6 May 2009. I think sami should speed it up a little (not trying to give u pressure here ). Their concept is as follows:

An icon where you can send a codeshare offer to another airline. Only airlines with over 100 rating (not AWS!) can send codeshare offers to airlines, but only airline with under 100 rating can get those offers. When a codeshare is accepted, each airline gives 2% of their earnings on each route to the codeshare airline. Codeshare agreements will increase passengers onboard by 5% for both airlines in the agreement.

Reasons for Codeshare:
1.It gives the bigger airliners a chance to help out the small airliners
2.The 5% on both PAX and Cargo helps out both airlines and you can make more money
3.Little Airliners can get more improvments and planes with the help of the bigger airline

^ It's been really positive among the players.

[Budjet]

Sounds good, I think some form of code sharing system should be set up on the game.

I would really love to codeshare with Aether on my Larnaca to Athens route  

This is well worth a read: http://en.wikipedia.org/wiki/Codeshare_agreement

[samomuransky]

One question for sami. When codeshare will be done, will codeshared route affect company image?

I mean, somebody buy ticket in A for flight with A and B. A flight is with new aircraft, ontime.. OK. Flight operated by B will be served with crap and it will be delayed or cancelled. Will this affect company image of company A? Thanks

[toyotaboy95]

One question for sami. When codeshare will be done, will codeshared route affect company image?

I mean, somebody buy ticket in A for flight with A and B. A flight is with new aircraft, ontime.. OK. Flight operated by B will be served with crap and it will be delayed or cancelled. Will this affect company image of company A? Thanks

Yeah. I strongly agree. For example, CX830 to New York from Hong Kong is operated by Cathay Pacific, codeshare with American Airlines 6090. American Airlines's image might go up due to the excellent service from CX (some pax thinks it's operated by AA ) while the opposite for inter-USA routes.