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Showing posts with the label Airline Code Sharing & Special Prorate Agreements (SPAs)

Airline Code Sharing & Special Prorate Agreements (SPAs)

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Special Prorate Agreements (SPAs) Special Prorate Agreements (SPAs) are agreements between two or more airlines that govern the sharing of revenue and expenses on specific routes. SPAs are often used when airlines codeshare on a route, but they can also be used in other situations, such as when airlines have a joint venture on a route or when one airline leases aircraft to another airline. SPAs can be complex, but they typically cover the following areas: Revenue Sharing : SPAs typically specify how revenue from shared flights will be divided between the airlines. This can be done on a number of different bases, such as the number of seats each airline sells, the distance each airline flies or the type of aircraft each airline uses. Cost Sharing : SPAs typically also specify how the costs of shared flights will be divided between the airlines. This can include costs such as fuel, landing fees and crew costs. Marketing and Sales : SPAs