Pie in the Sky?

September 2008
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Sorting the details of three major carriers’ expanded code-sharing plan

As we read a mid-August press release announcing that American Airlines, British Airways, and Iberia had signed a joint business agreement governing flights between North America and Europe, two questions crossed our minds: Will AAdvantage members be allowed to accrue and redeem mileage on transatlantic British Airways flights, and will Executive Club members get to do the same on AA flights? After pushing our eyes over the densely worded document, we were still in the dark.

The three carriers have also applied for anti-trust immunity, making it clear that they want to vastly expand code-sharing, claiming it would provide “easy, seamless and convenient travel to more global destinations with better connections, improved flight schedules, and enhanced frequent-flyer benefits.”

We found answers to our big questions by emailing American Airlines Corporate Communications. Their response: “Under today’s announced agreement and ATI application, customers would be able to both earn and redeem miles on BA flights across the transatlantic route in either direction. The agreement calls for fully reciprocal frequent- flyer arrangements.” That will be great if the seats are actually there.

The real meaning of the press release might lie in this passage: “The joint business agreement will enable the airlines to reduce costs and attract new customers, helping to mitigate pressure on fares from record fuel costs.” This sounds like a formula for using expanded code-sharing to reduce the number of flights, thereby raising fares and reducing award seats. You’ll recognize the formula because it was fine-tuned in this country. Now it’s ready for export.

Longer term, the question is: will BA, a Premium Service Carrier (PSC) and a leader in premium cabin innovation, rub off on American, or will American, a Mass Market Carrier (MMC) and a laggard when it comes to Business Class, get BA to lower its ambition? Wouldn’t it be loverly if BA could turn Eliza Doolittle into a lady?

Sorting the details of three major carriers’ expanded code-sharing plan

As we read a mid-August press release announcing that American Airlines, British Airways, and Iberia had signed a joint business agreement governing flights between North America and Europe, two questions crossed our minds: Will AAdvantage members be allowed to accrue and redeem mileage on transatlantic British Airways flights, and will Executive Club members get to do the same on AA flights? After pushing our eyes over the densely worded document, we were still in the dark.

The three carriers have also applied for anti-trust immunity, making it clear that they want to vastly expand code-sharing, claiming it would provide “easy, seamless and convenient travel to more global destinations with better connections, improved flight schedules, and enhanced frequent-flyer benefits.”

We found answers to our big questions by emailing American Airlines Corporate Communications. Their response: “Under today’s announced agreement and ATI application, customers would be able to both earn and redeem miles on BA flights across the transatlantic route in either direction. The agreement calls for fully reciprocal frequent- flyer arrangements.” That will be great if the seats are actually there.

The real meaning of the press release might lie in this passage: “The joint business...

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