Do airlines pay each other?

[Flying Fox]

I recently heard a story about a passenger who was flying SYD - LAX in J on UA. UA had problems with the aircraft such that it was grounded. He flew SYD - LAX in J on QF (apparently UA organised this for him).

Now I am assuming that UA would have to pay QF for the ticket (happy to be corrected) but how much would they pay?

I just check QF for SYD - LAX in J one way and came up with $10K so is that what UA would pay QF?

And if this happens in bulk, doesn't the airline with the problem become very non-profitable since they have to pay to get the repairs done plus pay another airline to carry its passengers?

Thanks for any information.

 

[Evan]

Yes, airlines do have agreements for such situations, but the cost is a lot less than retail i would imagine, Been in the situation myself where AY bumped me to SQ.

Also i have seen LH and SQ have an agreement on the FRA-SIN route that LH can over sell J and people get bumbed to the same times SQ flight, so there must be commercial agreements around that as well.

As you point out though i am sure its not the best thing for the bottom line to be bumping people to another airline. (Exceptions may be between close partner, eg QF & BA where the cost may be even)

E

 

[Petch]

Also i have seen LH and SQ have an agreement on the FRA-SIN route that LH can over sell J and people get bumbed to the same times SQ flight, so there must be commercial agreements around that as well.

Wow, clever strategy - for an airline alliance with many airlines and varying product quality.

Using Lufthansa to basically sell Singapore J at a discount. Allowing Singapore to only market their J at their premium price, but still fill, otherwise empty, seats with Lufthansa's "discount J passengers" (Of course it only works if passengers paying for J on Lufthansa, consider a bump to Singapore good value.)

 

[Keith009]

Using Lufthansa to basically sell Singapore J at a discount. Allowing Singapore to only market their J at their premium price, but still fill, otherwise empty, seats with Lufthansa's "discount J passengers" (Of course it only works if passengers paying for J on Lufthansa, consider a bump to Singapore good value.)

That already happens without the bumping - codesharing. In this case SQ and LH codeshare on the Australia-SIN and SIN-FRA routes. You can fly MEL-SIN-FRA-Europe almost entirely on SQ metal but on an LH fare and LH flight numbers. LH buys a seat from an SQ flight and sell it to pax as an LH seat, and vice versa. LH also has a similar agreement via BKK with TG.

 

[Evan]

I understand the code share, but in our case we have a number of staff booked on the LH metal flight and turned up at the airport and more or less just been handed SQ boaridng passes for the other flight.

Either way from LH to SQ i would consider and upgrade to Thai etc i am not so sure.....

E

 

[Keith009]

I understand the code share, but in our case we have a number of staff booked on the LH metal flight and turned up at the airport and more or less just been handed SQ boaridng passes for the other flight.

Depending on whether their FFPs allow original routing credit, they might even get miles for both flights.

FWIW I'd rather be on TG J over LH J, but I reckon TG F would be somewhat of a downgrade from LH F based on my experiences - though TG seems to have picked up their game in recent weeks from all accounts. Still - the FCT is unbeatable.

 

[Evan]

Depending on whether their FFPs allow original routing credit, they might even get miles for both flights.

hehehe, i wish, but no reports from anybody i work with being able to pull of a double credit. Me i try to avoid both LH and SQ generally since i am usually flying whY and will route to Germany via LHR, eg SIN-LHR-STR so i can have my bags checked all the way though... and for the SC's

E

 

[dajop]

hehehe, i wish, but no reports from anybody i work with being able to pull of a double credit.

Probably much more likely if the the rebooked carrier is part of a different alliance to the original carrier. Has happened to me many moons ago when rebooked from QF onto an AN service, I simply gave the AN person my GR number (fat lot of good that did me though....).

 

[GDSman]

Carriers pay each other via the IATA BSP and use either agreed standard or specially negotiated rates. Typically this occurs on code shares, or where there are secondary carriers involved - e.g. QF 081 ticket SYD-DFW where LAX-DFW is AA metal on AA flight number - and thirdly the unforseen bump to accommodate pax in a hurry/emergency. Rates are significantly lower than retail and are calculated on a 'per mile per booking class' basis, so not only would J be more than Y, but Y would be more than H. One thing the carriers don't like about this is the sometimes massive delay in receiving the funds - up to 18mths is not unheard of....

 

[milehighclub]

Qantas just paxed (deadheaded) me from Los Angeles to San Francisco (originally on American but then it changed to United) and it cost AUD$405

Certainly not as cheap as I believe AA would of been had my pattern remained the same but I guess the AA flight was full and they had to change it.

 

[Flying Fox]

Thanks for your replies.

Then I guess there is the issue of SC and FFP. So if Mr UA was collecting UA points & SCs I would guess that he would have to contact their FF Service and beg for the points for the trip even though he flew QF?

 

[serfty]

... Then I guess there is the issue of SC and FFP. So if Mr UA was collecting UA points & SCs I would guess that he would have to contact their FF Service and beg for the points for the trip even though he flew QF?

The phrase "Original Routing Credit" comes to mind.

 

[Keith009]

The phrase "Original Routing Credit" comes to mind.

Not all airlines have 'original routing credit' policy though.