Code-Share and Interline Agreement between Air France, KLM and SAS, a new step in both groups integration

Starting from September 1, 2024, a new code-share and interline agreement between Air France, KLM, and Scandinavian Airlines (SAS) promises to transform the experience of frequent flyers. This long-awaited strategic partnership aims to optimize services and connections for travelers of the three airlines. This article explores the details of this agreement, its implications for frequent flyers, and its potential effects on the aviation sector at large.

Code-Share and Interline, what is it?

What is Code-Share?

Code-share is a common practice in the airline industry where two or more airlines share the same flight. In this case, one airline operates the flight while the others place their flight numbers on the same flight. This allows airlines to offer more destinations without having to operate additional aircraft.

What is Interline?

Interline, on the other hand, is an agreement between airlines that facilitates the transfer of passengers and baggage from one flight to another, even when operated by different airlines. This includes services such as issuing single tickets and joint management of connections.

The Details of the Agreement

The agreement between Air France, KLM, and SAS includes both of the aforementioned aspects. Flights operated by one of the three airlines can be marketed by the other two, thus offering an extended range of destinations and flight frequencies. Additionally, passengers will benefit from simplified transfers and harmonized services throughout their journey.

Impacts for Frequent Flyers

Extended Access to Destinations

For frequent flyers, one of the biggest advantages of this agreement is the expanded access to destinations. Thanks to the code-share, travelers can now book flights to destinations served by the three airlines on a single platform. For instance, a KLM passenger can easily book a flight from Copenhagen to Tokyo via Paris, with flights operated by SAS and Air France respectively.

Better Connectivity and Flexible Schedules

Increased connectivity is another positive outcome of this agreement. Passengers will have access to a greater variety of connections, reducing waiting times and making travel more convenient. Schedules will be better synchronized to minimize transfer times and offer more flexible travel options.

Loyalty Programs

The frequent flyer programs of the three airlines – Flying Blue for Air France and KLM, and EuroBonus for SAS – will be harmonized, allowing passengers to earn and use miles on flights operated by all three airlines. This means that Flying Blue members can earn miles on a SAS flight and use them for a KLM flight, and vice versa. This integration will enhance the appeal of these programs and encourage customer loyalty.

Ground and In-Flight Services

Frequent flyers will also benefit from harmonized services both on the ground and in-flight. The lounges of the three airlines will be accessible to members of the loyalty programs of all three partners, regardless of which airline operates the flight. In-flight, passengers can expect unified service standards, including meal options, entertainment, and consistent customer service.

Benefits for the Airlines

Resource Optimization

For the airlines, this agreement means better utilization of resources. By sharing flights and infrastructure, they can reduce operational costs and increase efficiency. This is particularly crucial in a context of rising fuel costs and environmental pressure to reduce emissions.

Increased Competitiveness

This agreement will also enhance the competitiveness of the three airlines against other major alliances and competitors. By combining their networks and strengths, Air France, KLM, and SAS can offer more attractive and competitive services, thus attracting more passengers.

Response to Environmental Challenges

In a context where the aviation industry faces increasing pressure to reduce its carbon footprint, collaboration between airlines can also contribute to more sustainable operations. By optimizing flights and reducing overlaps, they can decrease fuel consumption and CO2 emissions.

Challenges to Overcome

Systems Integration

The integration of the IT and reservation systems of the three airlines is a major challenge. Ensuring a smooth transition for passengers will require close coordination and substantial investments in technology.

Managing Service Standards

Maintaining consistent service standards across the three airlines is also a challenge. Each airline has its own service protocols and cultures, and harmonizing these aspects while preserving their unique identities will require concerted efforts.

Market Reactions

Finally, market and passenger reactions are variables to consider. Although the agreement offers numerous benefits, it will be crucial to monitor passenger perceptions and adjust strategies based on their feedback.

Bottom Line

The code-share and interline agreement between Air France, KLM, and SAS, effective from September 1, 2024, marks a significant milestone for the aviation industry. For frequent flyers, this agreement promises a smoother and more flexible travel experience, with extended access to destinations and enhanced loyalty benefits. For the airlines, it is an opportunity to optimize resources, increase competitiveness, and address environmental challenges. However, the success of this agreement will depend on the ability of the three partners to overcome challenges related to systems integration and managing service standards. Nevertheless, this agreement represents a new dawn for air travelers and the industry as a whole.