The paper juxtaposes the challenges that airline codeshare alliances create for analytical information systems on the one hand and their motivation from a marketing perspective on the other. The authors review the state-of-the-art literature on potential marketing benefits and analyze the impact on airline planning systems. In this regard, revenue management systems are of particular interest. Based on a simulation study, the authors infer a severe impact of decentralized codeshare controls as currently widely implemented in the industry on revenue management performance. In the scenarios examined, complementary codesharing reduces alliance-wide revenues by up to 1 %. Losses increase when a carrier experiences high local demand or a high degree of codeshare demand, and disseminate over the whole network. Virtual codeshares also cause losses of 0.3 % to 1.5 % depending on the discount level offered by the marketing carrier and on the demand structure. Finally, the authors formulate a set of managerial implications based on these findings.
Gerlach, Max; Cleophas, Catherine; and Kliewer, Natalia
"Airline Codeshare Alliances - Marketing Boon and Revenue Management Information Systems Challenge,"
Business & Information Systems Engineering:
Vol. 5: Iss. 3, 153-163.
Available at: http://aisel.aisnet.org/bise/vol5/iss3/4