The special agreement is a special example of an interline agreement that defines precisely the distribution of fees and the billing of ticket costs between air carriers. While a regular interline agreement is a widely understood agreement between two (or more) airlines allowing a trip with a ticket, the BSG sets the terms of financing, distribution and billing of fees paid by the passenger (or by the buyer) and pays the ticket money only to one of the carriers involved. Signatory airlines may vote at Propere meetings. Non-signatories may attend meetings, but cannot vote. If you cannot vote, this can have a negative impact on your interline performance, as decisions are made at adjacent meetings. Revenue optimization revenue in short and medium sectors is not secret, but doing it right requires experience. it is true that the terms of an adjacent agreement can provide, at no additional cost, a few percentage points of additional revenue. Interline traffic flows need to be analyzed for optimal settings. Well-designed Special Agreements (SPAs) allow an airline to offer additional markets and destinations to the market at competitive prices, which is made possible by an acceptable cost of acquisition. LOT Polish Airlines is also negotiating sharing agreements with other partners to facilitate travel to Southeast Asia and Australia.
It is rumoured that Singapore Airlines is one of these potential partners. Shakeel Adam is the managing partner of Aviado Partners, a global airline business consulting firm, including helping airlines maximize the potential of SPA, Codeshare, Allianz and GU partnerships. Follow him on Twitter @shakeeladam There are more than 200 airlines signing for the AAP. The AAP signatory is required before you can sign one or both multilateral agreements. The Prorate Agency maintains passenger and cargo protection agreements on behalf of the airlines that signed the Prorate Agency (PAA) agreement. The AAP is an agreement between the airlines and IATA, which allows the creation of the Prorate Agency to take these agreements into account on behalf of the signatories. The agency Prorate is based in Geneva and consists of three people. All partnerships focus on interline agreements and prorate specific agreements (SPAs) that allow airlines to expand their reach and be more competitive. During their development, these types of agreements provided a de facto guarantee for the addition of incremental profitable revenues.
Yet the industry seems to be swept away. An analysis of global data shows tens of thousands of competing routes and overlapping routes between airlines and their combinations of partners through non-stop, one and multistop options Airlines operating in passenger and freight lines need transaction agreements to help determine each airline`s revenues. These agreements are called the multilateral Prorate Agreement-Passenger and the Multilateral Prorate Agreement-Cargo. Unfortunately, few, if any, airlines are able to measure with confidence whether their agreements result in a positive increase in revenues. Many airlines misinterpret Interline`s growth in passenger traffic and traffic. The proliferation of competing routes, due to significant and often uncontrolled code-sharing and prorating, leads to significant cannibalization.