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#520024

TimFitzgeraldTC
Participant

Hi AOTG / IFH

My guess on revenue split (and this is only a guess) is that the airlines keep most of the revenue sold under the flight codes sold. So if you buy a BA flight operated by BA, they keep most of this, whereas if you buy a BA flight number operated by AA, then BA keep some of it – and AA get some as the operating carrier. As they are supposedly sharing base costs of operations across the atlantic there will be some formula worked out which involves capacity by flight numbers operated, along with the mix of booking classes and seats available. I can’t see American getting any revenue on Premium Economy sales when they have no premium for example. Likewise there must be an incentive for AA to significantly improve there Business Class offering, so if they sell more of this under the AA flight numbers then they should get more revenue.

Availability does vary by which code you look under. For example if you look on BA, it may say AA operated flights are sold out when if you check AA then it still has a few economy seats left and vice versa. Also (more so in Business Class) if you look on BA it may show a higher business class fare on the AA operated flight than if you go onto the AA site and check the same plane. In the case of the new 77W’s with AA, the BA flight numbers only seem to sell these on the much higher booking classes whereas from experience the codeshare flight often had the cheapest Business Class booking codes available (I can see this on the GDS). Throw in the fact that you also have IB flights numbers on these (in the past I have got some cracking fares using these flight numbers in economy and business) and it gets very complex indeed.

I guess there must be some incentive to sell more of there own flights than the other carriers in the partnership, but I guess any formula is a private affair.

Before anyone shoots me down – this is an educated guess and in no way 100% accurate or correct!