To: Ursula Krone
From: Michael Sørensen
Subj: Code Sharing with Other Airlines
At our recent executive management meeting, we discussed our long-term strategy for growth. As you recall, our goal is to increase passenger miles 10 percent each year. One of the ways to help realize that goal is to partner with a major airline through code sharing. Code sharing is a way to leverage the marketing power and branding of a large airline to fill seats on our flights. There is a revenue split with the other airline, and that is something that is worked out in negotiations.
Can you investigate the feasibility of pursuing this, and recommend an airline that we might partner with?
To: Michael Sørensen
From: Ursula Krone
Subj: RE: Code Sharing with Other Airlines
There are two parts to this strategy. First you find the right airline partner, one that serves the same demographic that we do. Second, you have to have the systems in place to be able to market a particular flight using different flight number from two airlines. You then need to be able to split the passenger revenue correctly.
I spoke to Rasmus about the challenges associated with the second issue. Our current flight and ticketing systems were not designed to handle code sharing. He is concerned that there would be significant effort involved with implementing this capability.