Domestic code-sharing agreements and on-time performance: Evidence from the US airline industry

Abstract

A key concern to policymakers when appraising code-sharing partnerships between airlines hinges on how such arrangements affect prices and service levels. Naturally, most studies on code-sharing have disproportionately focused on its price effects. This paper examines the impact of domestic code-sharing on flight delay. Using a methodology that enables us to match airline on-time performance data to passenger itinerary data, we find that codeshare products—virtual and traditional—are consistently associated with less arrival delay. These results are robust to different measures of on-time performance, even after controlling for product and market characteristics, and irrespective of market hauls.