This is the fifth article in OAG’s series decoding the fundamental technology transition underway in the airline industry. The post explores the shift in airline inventory from traditional code-sharing and network agreements to Virtual Interlining. This transition is arguably one of the most intriguing tech trends reshaping the aviation sector.
In this article, OAG will dive into a transformative shift within the airline industry that is set to have far-reaching impacts not only on airlines but also on travelers: the move from traditional code-sharing and network agreements to Virtual Interlining.
This transformation is reshaping the boundaries of the airline industry and redefining how airlines manage and monetize their inventories. Importantly, it also massively expands the range of options available to travelers.
The exploration will navigate through three main areas:
* The Evolution of Airline Agreements: We will trace the journey from initial code-sharing agreements to formal network agreements, culminating in the advent of Virtual Interlining over the past decade.
* The State of the Virtual Interlining Market Today: We will assess the current market size and its potential for future growth. As well, we will provide an overview of the pioneering Virtual Interlining initiatives by major airlines and airports.
* Tech Ecosystem Surrounding Virtual Interlining: We will highlight the top ten most innovative travel-tech startups in the Virtual Interlining space, illustrating the evolving tech landscape underpinning this trend.
This transformation represents both a challenge and an opportunity for airline managers, necessitating a careful strategy formulation. The reactions to the Virtual Interlining movement have varied significantly among airlines over the past ten years, with some carriers demonstrating more reluctance than others. As we delve deeper into this trend, we aim to shed light on its potential implications and opportunities for the airline sector.
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