Emirates and United Airlines now codeshare. It allows travellers to make long distance flights, such as Dubai to Hawaii, under one ticket. Photo: David Buerk Photo
Emirates and United Airlines now codeshare. It allows travellers to make long distance flights, such as Dubai to Hawaii, under one ticket. Photo: David Buerk Photo
Emirates and United Airlines now codeshare. It allows travellers to make long distance flights, such as Dubai to Hawaii, under one ticket. Photo: David Buerk Photo
Emirates and United Airlines now codeshare. It allows travellers to make long distance flights, such as Dubai to Hawaii, under one ticket. Photo: David Buerk Photo

What is a codeshare agreement and why should travellers care about them?


Hayley Skirka
  • English
  • Arabic

This week's aviation headlines have been filled with news of a codeshare agreement between two of the world’s biggest airlines.

Emirates and United Airlines announced their new partnership in Washington on Wednesday.

Emirates airline's president Tim Clark said the move was “a significant partnership that will unlock tremendous consumer benefit" and bring the UAE and the US closer.

Scott Kirby, chief executive at United Airlines, added: “This agreement unites two iconic, flag carrier airlines who share a common commitment to creating the best customer experience in the skies."

But how exactly does a partnership between two airlines impact travellers and why should holidaymakers care about codeshare announcements?

What is a codeshare?

Codesharing is an agreement between two or more airlines to sell seats for the same flight. Reuters
Codesharing is an agreement between two or more airlines to sell seats for the same flight. Reuters

Have you ever purchased a flight ticket with one airline, only to arrive at the airport to discover you’re actually flying with another airline? If so, chances are you’ve just experienced a codeshare partnership.

Codesharing is an agreement between two or more airlines to sell seats for the same flight. And, while multiple airlines can then issue their own tickets for a codeshare flight, only one airline will actually operate the plane and provide the crew. This is why travellers might find themselves flying with an airline other than the originally booked one.

Why do airlines codeshare?

Most major airlines have codesharing partnerships with other airlines, and there are myriad reasons why.

As a business arrangement between airlines, a codeshare can help expand into markets where they might not be as well known, extend their network coverage for a greater global reach and ultimately offer more opportunity to increase profits by selling tickets on more flights.

How do codeshare agreements impact travellers?

Travellers flying on a codeshare can book all their travel on one ticket and will only need to collect baggage at their final destination. Photo: Changi Airport Group
Travellers flying on a codeshare can book all their travel on one ticket and will only need to collect baggage at their final destination. Photo: Changi Airport Group

While codeshare agreements sound like industry jargon, there are a few reasons why travellers might want to know about them.

Perhaps the most obvious advantage is being able to earn frequent flyer miles, even when flying on a flight operated by another carrier.

For instance, a member of the Etihad Guest frequent flyer programme flying on Swiss Airways would not normally earn miles. However, as these two airlines have a codeshare, passengers earn credit for those miles.

To be eligible, the flight booked needs to have been sold and marketed by Etihad — an easy way to know if this is the case is to look for the airline's code at the start of the flight number. In this example, if the flight number starts with EY — then it's eligible for Etihad miles.

Travellers can check the airline code on their ticket to find out which airline sold the ticket. AFP
Travellers can check the airline code on their ticket to find out which airline sold the ticket. AFP

Another big advantage is being able to book an entire trip on one ticket. This is especially useful for multiple connections. When no codeshare exists, travellers often have to book separate tickets with individual airlines for each leg of a lengthy journey.

This means collecting baggage at each connection point, paying attention to the different weight allowances for each airline and checking-in at each airport. If there's a codeshare, all flights are booked on one ticket, with check-in once. Then the collection of luggage happens at the end of the journey.

Codesharing also allows travellers to book flights on a platform they are familiar with to destinations not typically operated to by specific airlines. This is the case with Emirates's new agreement as travellers can book flights from Dubai to Hawaii on Emirates, or from New York to Karachi with United Airlines.

Finally, premium passengers flying on a codeshare ticket can access more lounges, which can be useful flying from or through a destination by using the lounge belonging to the partner airline.

What are the disadvantages of flying on a codeshare?

Travellers flying on a codeshare ticket are less likely to get a free upgrade. Photo: Etihad Airways
Travellers flying on a codeshare ticket are less likely to get a free upgrade. Photo: Etihad Airways

Whether flying on a codeshare or not, there are a couple of drawbacks for travellers booking such tickets.

The main disadvantage is that codeshare flights can be difficult to rebook or alter should travel plans change. This is because the airline passengers originally booked with doesn't have the final authority to make that change, instead it must coordinate with the operating airline to update any itinerary.

Getting a free upgrade when flying on a codeshare ticket is also difficult. This is because as much as airlines are working in a partnership, they are still competitors and each airline would much rather prioritise a customer that has given money directly to them, than paid airfare to their competition.

How do I know if I’m booking a codeshare ticket?

If you've booked a codeshare ticket, make sure you go to the correct check-in desk at the airport. Silvia Razgova / The National
If you've booked a codeshare ticket, make sure you go to the correct check-in desk at the airport. Silvia Razgova / The National

Airlines don’t hide the fact that a flight they are offering to sell is a codeshare.

During the booking process, double check the operator for the flight. This information will be listed in the booking confirmation, as well as on the ticket.

If booking a codeshare flight, make sure to go to the correct terminal to check-in. This might mean going to the terminal for the operating airline, not the airline that's been booked with.

Top 10 airlines by passenger traffic — in pictures

  • 1. American Airlines, US. Getty Images
    1. American Airlines, US. Getty Images
  • 2. Delta Air Lines, US. EPA
    2. Delta Air Lines, US. EPA
  • 3. United Airlines, US. Reuters
    3. United Airlines, US. Reuters
  • 4. Southwest Airlines, US. Bloomberg
    4. Southwest Airlines, US. Bloomberg
  • 5. Ryanair, Ireland.
    5. Ryanair, Ireland.
  • 6. China Southern, China. Unsplash / Scarbor Siu
    6. China Southern, China. Unsplash / Scarbor Siu
  • 7. Emirates, UAE. Getty Images
    7. Emirates, UAE. Getty Images
  • 8. Qatar Airways, Qatar. AP Photo
    8. Qatar Airways, Qatar. AP Photo
  • 9. China Eastern Airlines, China. EPA
    9. China Eastern Airlines, China. EPA
  • 10. Turkish Airlines, Turkey. Photo: Turkish Airlines
    10. Turkish Airlines, Turkey. Photo: Turkish Airlines
The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Super heroes

Iron Man
Reduced risk of dementia
Alcohol consumption could be an issue

Hulk
Cardiac disease, stroke and dementia from high heart rate

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Agility reduces risk of falls
Increased risk of obesity and mental health issues

Black Panther
Vegetarian diet reduces obesity
Unknown risks of potion drinking

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He's a god

The flights: South African Airways flies from Dubai International Airport with a stop in Johannesburg, with prices starting from around Dh4,000 return. Emirates can get you there with a stop in Lusaka from around Dh4,600 return.
The details: Visas are available for 247 Zambian kwacha or US$20 (Dh73) per person on arrival at Livingstone Airport. Single entry into Victoria Falls for international visitors costs 371 kwacha or $30 (Dh110). Microlight flights are available through Batoka Sky, with 15-minute flights costing 2,265 kwacha (Dh680).
Accommodation: The Royal Livingstone Victoria Falls Hotel by Anantara is an ideal place to stay, within walking distance of the falls and right on the Zambezi River. Rooms here start from 6,635 kwacha (Dh2,398) per night, including breakfast, taxes and Wi-Fi. Water arrivals cost from 587 kwacha (Dh212) per person.

THE%20SPECS
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World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204-cyl%20turbo%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C600rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C500-4%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.9L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh119%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

UAE v Ireland

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Manchester United v Brighton, Sunday, 6pm UAE

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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYango%20Deli%20Tech%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EUAE%0D%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3E2022%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ERetail%20SaaS%0D%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ESelf%20funded%0D%3Cbr%3E%3C%2Fp%3E%0A
PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: September 15, 2022, 2:55 PM