A joint venture is a deeper partnership between a few airlines that share revenue on defined markets and plan their schedules together.
A joint venture is a deeper partnership between a few airlines that share revenue on defined markets and plan their schedules together.
Also called: Joint business agreement.
How it works#
Because the partners share the revenue, they no longer compete on price across those routes and instead coordinate capacity and fares. For travellers that means fewer price differences between the partners, but through fares and aligned connections. Regulators approve such agreements with conditions, since they reduce competition in the markets concerned.
Not to be confused with#
A joint venture is not the same as a codeshare: a codeshare concerns whose flight number sells the seat, a joint venture concerns shared revenue.
In German#
The German term is Joint Venture. German version of this term
Related terms#
- Airline alliance: An airline alliance is a grouping of carriers that credit each other’s miles, recognise each other’s status and allow award bookings across the group.
- Codeshare: A codeshare is a flight sold by one airline under its own flight number while a different airline actually operates it.
- Revenue management: Revenue management is the process by which an airline distributes seats across price levels in order to maximise total revenue on a flight.
Articles that use this term#
TopicEvery article and term onStatus and lounges.