Author Information

Xueqian ChenFollow

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Authors' Class Standing

Xueqian Chen, Senior

Lead Presenter's Name

Xueqian Chen

Faculty Mentor Name

Li Zou

Abstract

Codesharing has been a widespread strategy favored by many airlines worldwide because they believe that this strategy can be employed to increase the traffic as well as bring the company more financial benefits. There has been plenty of research studying the effect of codesharing on the airfare using both analytical and empirical models. However, the effect of codesharing on airlines’ performances has not been fully studied. In this paper we study how codesharing strategies may contribute to the performance differences of a group of sampled airlines from 2004 to 2014. The codesharing strategies are characterized by the number of codesharing partners, the number of codesharing routes and types of codesharing, etc. The performances of airlines are measured by operating margin, load factor, and the growth rate of traffic and revenue. Other variables considered include the number of passengers, load factor, revenue passenger miles, available seat miles, passenger yield, and unit operating cost.

Did this research project receive funding support (Spark or Ignite Grants) from the Office of Undergraduate Research?

Yes

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The Effect of Codesharing Alliances on Airline Performances

Codesharing has been a widespread strategy favored by many airlines worldwide because they believe that this strategy can be employed to increase the traffic as well as bring the company more financial benefits. There has been plenty of research studying the effect of codesharing on the airfare using both analytical and empirical models. However, the effect of codesharing on airlines’ performances has not been fully studied. In this paper we study how codesharing strategies may contribute to the performance differences of a group of sampled airlines from 2004 to 2014. The codesharing strategies are characterized by the number of codesharing partners, the number of codesharing routes and types of codesharing, etc. The performances of airlines are measured by operating margin, load factor, and the growth rate of traffic and revenue. Other variables considered include the number of passengers, load factor, revenue passenger miles, available seat miles, passenger yield, and unit operating cost.

 

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