CODE-SHARING AGREEMENTS IN AZERBAIJAN AIRLINES: REGULATORY REQUIREMENTS AND REVENUE DISTRIBUTION METHOD

Abstract

Code-sharing agreements promote a strategic collaboration model between airlines, aimed at enhancing customer satisfaction and increasing operational efficiency. This agreement model allows airlines to present each other's flights under their own brands. As a result, passengers have access to a wider range of routes, more convenient travel options, and the ability to plan more efficiently while saving time. These agreements, which play a crucial role in the development of the aviation industry, not only increase passenger traffic but also enable airlines to manage their resources more effectively. Code-sharing was first introduced in 1967 in aviation history and gained wider application from 1989 onwards. In Europe, these agreements expanded further after 1993. Over time, this approach has also created a competitive advantage for airlines in the market, allowing them to establish broader service networks. In the modern era, code-sharing agreements are not only economically efficient but also pay attention to legal requirements and security issues. Data security and encryption requirements, cybersecurity protocols, accurate definition of ownership rights, and compliance with international legal standards are crucial components of these agreements. Therefore, code-sharing allows airlines to collaborate not only on passenger transportation but also in legal and technological matters. Other factors that enhance the efficiency of these agreements include customer service integration, fair revenue distribution, and dispute resolution mechanisms. The modern requirements of code-sharing agreements enable airlines to operate more efficiently and in a more contemporary manner. This, in turn, increases customer satisfaction, strengthens airlines' market positions, and accelerates the sector's growth. These collaborations, which support sustainable development in the aviation sector, not only provide higher-quality services to customers but also expand airlines' participation in the global market. This model also offers broader coverage and higher efficiency at lower costs, resulting in benefits for both passengers and airlines. Code-sharing agreements are a strategic approach that enhances customer satisfaction by allowing airlines to present each other’s flights under a unified code. The article discusses the importance of code-sharing agreements in the context of modern aviation, focusing on compliance with information security, property rights, and international standards. It also emphasizes how fair collaboration is ensured through proper revenue calculation and distribution mechanisms. Thus, meeting these requirements strengthens airlines' participation in the transportation market and increases customer trust. The article highlights the necessity of making strategic decisions aligned with modern demands to forecast the future of the aviation sector.