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#520025

AllOverTheGaff
Participant

Hi Tim

Thanks for your answer.

I had *assumed* much the same, that if you book on AA.com to go LHR – JFK then most of that revenue would go to AA with a percentage to BA, and the same with BA.com on the same route.

In the example I chose earlier of EDI – LHR – JFK it would be expected that AA pays BA for the EDI – LHR route and perhaps a higher percentage of the transatlantic fare as BA might argue that I’d not have used AA had I not been able to book a through fare.

I’m struggling to accept that 50% of the revenue from each airline on these routes is divvied up, it would have to be based on margin and not revenue IMO to make it even viable. If AA are flying a half-empty plane to JFK and they lose money on the flight, I can’t imagine they’d pony up a bundle of Ben Franklins to BA.

I guess we’ll never know the definitive answer as I should imagine this agreement would be strictly private and confidential, and back to my original point, clearly AA are investing a lot of cash in both new planes and whilst they’ve ‘copied’ the seat design in both business and first, they are both desirable products. I wonder for how much longer they’re willing to invest to see their market share improve only to have to split that revenue with a non-investing partner.

Rgds.
AOTG.