Financial Services Industry
Industry: Email Alert RSS FeedA bargain hunter's tour of Asia: the region's financial bust is a boon for U.S. travelers and shoppers
Kiplinger's Personal Finance Magazine, August, 1998 by Lynn Woods
RELATED ARTICLE: AN AIRLINE MATCH MADE IN HEAVEN
QUICK TRAVEL QUIZ: You've booked a westbound flight on what you thought was United Airlines. Suddenly, you find yourself boarding a Delta plane. You: a) grabbed the wrong ticket; b) took the wrong tram in the terminal; c) will be heading eastward if you don't make a quick U-turn.
Answer: Probably none of the above. Chances are you're flying Delta because that airline and United have reached an agreement to buy blocks of seats on each other's planes and sell tickets on the same flights. Continental and Northwest, and American and US Airways, have announced similar relationships, all of which are to be phased in by next year.
Most PopularCBS MoneyWatch.com Articles
Such agreements, known as code sharing, let airlines expand their networks and increase their revenues without actually adding new routes or merging with other carriers. For example, as a result of their agreement, Delta plans to serve 17 additional U.S. cities, and United will add 39 locations.
That's clearly a benefit to travelers because it increases the number of destinations you can reach on your preferred carrier and lets you earn and redeem frequent-flier miles on more flights. A Delta passenger booking a flight from, say, Savannah, Ga., could fly to Green Bay, Wis., on a single ticket, earning Mileage Plus credit (on United) or Delta Skymiles for the entire route--even though segments of the flight might be on the other airline's planes. Delta will not code share with United on international routes.
Along with the expanded routes, however, travelers should also "expect increased confusion and inconvenience when making connections that require a change in airlines," says Tom Parsons, editor of Best Fares Discount Travel Magazine (www.bestfares.com). A connecting flight may depart from a different terminal or, on foreign flights, you may discover that although you booked a flight on a major U.S. airline, your seat is actually on a carrier from South America or Ukraine.
Code sharing can also result in hassles for travelers whose bags get lost en route or whose flight is canceled. (Department of Transportation rules require that the last airline that carried a passenger find a lost bag. Similarly, the carrier that canceled or delayed your flight is responsible for rebooking you.)
When booking a flight, ask if the flight is a code share and which airlines are participating. Code sharing carriers often price their tickets differently, even for the same flight, so call both airlines to find the lower fare. America West and Continental have had an agreement for some time, yet "we've found situations where a flight between Houston and Sacramento is $797 on Continental and $217 on America West, even though it's the same airplane," says Terry Tripler, publisher of Airfare-Report, corn, in Minneapolis (www.rulesoftheair.com).
Northwest has had a long and successful association with KLM, but the new alliances may not be so smooth, says Joseph Berman, senior aviation analyst at Avmark, an aviation research firm. Berman predicts that, as partners, Continental and Northwest will get along well because their equipment is similar and there's little overlap in their routes. But American and US Airways may have a bumpier relationship because of differences in their aircraft and frequency of service.
- How to choose the right insurance carrier for your business
- Real Estate: Prepare your properties to weather what lies ahead
- Technology: Be prepared if part of your global supply chain goes missing
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- LIFO vs. FIFO: a return to the basics
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
- Design a commission plan that drives sales - Sales Commissions



