Is the Decision to Code-Share a Route Different for Virtual and Traditional Code-Share Arrangements?

Abstract

This paper analyzes factors that determine whether individual routes remain in or leave a code-share agreement in different scenarios: pooled, purely traditionally code-shared routes, purely virtual code-shared routes and routes both traditionally and purely codeshare. The code-share alliance between Continental and America West Airlines is used as the case study for this analysis. Empirical results show that factors affecting alliance firms’ code sharing decision significantly differ for virtual versus traditional code share agreements.