Travel

Does Code Sharing Mean Caring for Air Travelers?

 

While the effect on the once-a-year flyer isn't totally clear, the carriers and consumer groups agree that frequent flyers stand to benefit the most, able to rack up mileage much faster since Delta's miles will be honored at Northwest. Not only will they be able to share miles, but frequent flyers will also have more of those private airport lounges to choose from.

Yet uncertainly looms for frequent flyers as well. Because a larger pool of travelers will be sharing the same planes and the same airport lounges, some say the increased convenience might be short-lived. "Under the expanded frequent flyer programs, club access could get hammered with three different streams of customers all crowding the same clubs," said Mitchell. "Even a positive benefit could be mitigated as they get implemented."

Unfortunately, handicapping the effect such an unprecedented marketing agreement will have on travelers is impossible. But from an economic and historical perspective, the code-share agreement isn't likely to improve the situation because tickets are relatively cheap, and in order for the airline industry to survive, higher prices are necessary.

Consider that in January 1980, a 1,000-mile domestic flight at the major airlines cost $111.65, according to the Air Transport Association. Nearly 23 years later, in December 2002, that same ticket cost only $117.79 -- and that's without accounting for the effect of inflation.

"The cost today vs. 30 years ago is just unbelievable. In the late 1960s, when I got started, a cross-country, round-trip flight was $200. Look hard today and you can find similar prices," said Thomas Nulty, industry veteran and retired president of Navigant International, a corporate travel management company. "We're about to pay the price for all the good times we've been having."

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