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I am aware of the advantages that codesharing has on airlines such as - allowing airline to expand operations without physically flying to that destination

  • creating perception of large flight network

  • reduced operation costs from seat transfers e.g KLM & Kenya Airways on the NBO-AMS route

However my concern is ;

  • are there any other further benefits ?

  • do codeshares reduce competition?

  • can codesharing airlines compete ? (e.g Star Alliance members, Lufthansa & Thai Airways)

  • do alliances reduce competition ?

  • can airlines of the same alliance compete ? (e.g Oneworld members, British Airways & American Airlines)

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    $\begingroup$ Of course they mess with and drastically reduce competition. They kind of manage to convince national authorities it's going to usher in a new era of efficiency. $\endgroup$ – Deer Hunter Oct 13 '15 at 10:06
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Alliances are the airline industry's way of corporate mergers. Since national airlines are still regarded as a symbol of national pride and often are part-owned by the respective governments, eradicating the proud name from the industry would be too hard to swallow. Therefore, alliances are formed in which tariffs and schedules are harmonized. The effect for you, the customer, is the effective removal of competition, resulting in monopoly pricing on routes which are served exclusively by carriers of the same alliance.

This can be compared to the car industry: Chevrolet is not competing with Pontiac or Cadillac, regardless of what the advertisements say. You might think that the wider choice of brands is a benefit, but in the end the benefits are mainly on the side of the industry.

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  • $\begingroup$ I agree with your answer, however your car industry analogy is purely theoretical. You need to read up on some GM history and the in-fighting between the divisions and the dealers. That, however, is a topic for another SE. ;) $\endgroup$ – FreeMan Oct 13 '15 at 12:31

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