Research on the Economical Evaluation for Airlines Code Sharing

Code share agreements, whereby an airline can market seats on some of its partners´ flights, have been a common practice in the airline industry for the past thirty years. The quantitative analysis is very valuable for China civil aviation to research the economics of code sharing. In this paper, based on relevant assumptions, the Maximum Profit Function (MPF) among different code sharing options has been established , in which the optimum fare can be gained to calculate the airlines maximum profit. Then the results would be tested by the air passengers´ welfare function. Finally, the method is applied in practice successfully.