THE DETERMINANTS OF CODESHARING AGREEMENTS BY LOW COST CARRIERS

摘要

In 2011 almost one-third of low cost carriers (LCCs) engaged into code-sharing agreements (CSs);;although the traditional low cost business model does not consider this practice in its original model.This study aims at understanding the determinants of LCCs’ codesharing agreements by lookingboth at firm and market level determinants. Beyond the traditional reasons that may induce anincreasing attitude towards inter-organizational cooperation (e.g. the sharing of costs and risks;;theaccess to complementary resources);;we focus also on the role played by the hybridization processthat affects LCCs’ business model and the increasing level of competition that affects LCC markets.An econometric analysis is carried out on a route-level dataset related to European and Americanlow cost airline industry. Its results highlight that two important drivers are the airline networkstructure and the complementarity between networks. The competition landscape as well as theairline‘s ability to compete are further determinants of codesharing practices. The airline businessmodel hybridization mainly matters on the propensity to engage codesharing as marketing carrier.