In today’s aviation industry, partnerships and leasing arrangements allow airlines to expand their networks and manage fleets efficiently. However, terms like codeshare, ACMI, dry lease, and alliance can often cause confusion for travellers. In this guide, we’ll explain these concepts, explain how they impact your travel, and provide practical insights.
To make this guide easy to follow, we’ll use real airline examples like Lufthansa, Swiss, United, and others. Keep in mind that these examples are for illustration only, as alliances and agreements can change over time, and the airlines mentioned are used here simply to demonstrate different partnership types.
Why Do Airlines Partner and Lease Aircraft?
Airlines collaborate and lease aircraft to expand their route networks, adjust to seasonal demand, and manage fleet resources efficiently. Partnerships like codeshares, ACMI (wet leases), dry leases, and alliances give airlines the flexibility to operate routes and adjust capacity without owning every resource directly. Let’s break down what each of these arrangements entails and how they affect your experience as a passenger.
1. What Is a Codeshare?
Definition and Purpose
A codeshare agreement allows two or more airlines to share flights under different flight numbers, creating the appearance that each airline operates the route. For example, a Lufthansa flight from Frankfurt to New York might also display a United Airlines flight number. This arrangement broadens route options for passengers who can book through either airline, even if only one operates the flight.
What Passengers Should Know
When booking a codeshare flight, the ticket will list the marketing carrier (the airline you booked with) and the operating carrier (the airline actually flying the plane). Codeshares impact loyalty benefits, ticketing, and some service aspects. For example, if you book a Lufthansa-coded flight operated by United, the crew will primarily speak English, not German, reflecting United’s standards.
Example Scenario
Imagine booking a Lufthansa ticket from Frankfurt to Boston, only to find your flight operated by United. While some service details may differ, you retain Lufthansa’s ticketing and baggage benefits and can earn miles within the Star Alliance network.
2. What Is ACMI (Wet Lease) and How Does It Work?
Definition and Purpose of ACMI
A wet lease, also known as ACMI (Aircraft, Crew, Maintenance, and Insurance), provides an airline with a fully operational aircraft, including crew, maintenance, and insurance from the leasing airline. The airline leasing the aircraft sells tickets, manages customer service, and handles baggage, while the lessor operates the flight itself. Wet leases are ideal for short-term needs, such as high-demand seasons or when covering fleet shortages.
Passenger Impact
On an ACMI flight, passengers might notice differences in the plane’s branding or crew. For example, German-speaking passengers booking through Lufthansa may expect a German-speaking crew, but if AirBaltic operates the flight, the crew’s language may differ and while crews are usually selected with language in mind, they are usually not native speakers. Still, the lessee airline (e.g., Lufthansa) retains ticketing, lounge access, and loyalty benefits.
Example Scenario
Consider booking a Lufthansa ticket on an AirBaltic-operated flight via ACMI. While AirBaltic’s crew and aircraft provide the flight, Lufthansa manages ticketing, frequent flyer perks, and ground support, ensuring passengers a consistent experience.
Low-Cost Carriers and ACMI
Unlike traditional full-service airlines, Low-Cost Carriers (LCCs) generally avoid alliances and codeshares, but they do make extensive use of ACMI. For example, Ryanair frequently leases planes from its subsidiaries, Lauda and Malta Air, while EasyJet uses EasyJet Switzerland and EasyJet Austria to comply with EU regulations. This approach allows LCCs to expand and comply with regulations cost-effectively.
3. What Is a Dry Lease?
Definition and Purpose of Dry Lease
A dry lease provides only the aircraft itself, without crew, maintenance, or insurance. The airline leasing the plane (the lessee) takes responsibility for staffing, insurance, and maintenance. This setup is often used for long-term fleet expansion, as the aircraft is fully integrated into the lessee’s operations.
Passenger Impact
Dry leases are almost invisible to passengers, as the lessee airline provides its own crew, branding, and service standards. This arrangement makes it easy to manage fleet size without the significant investment required to purchase new aircraft.
Example Scenario
An airline might dry lease a Boeing 737 for several years, using its own crew, livery, and maintenance resources. To passengers, the experience is identical to flying on a plane owned by the airline.
4. What Are Airline Alliances?
Definition and Benefits of Alliances
Airline alliances, such as Star Alliance, SkyTeam, and Oneworld, are large networks that bring multiple airlines together under one brand. These alliances enable passengers to book tickets across multiple carriers in a single transaction, enjoy shared lounges, and earn frequent flyer miles with reciprocal benefits across all member airlines.
Each of the three global alliances requires at least one major U.S. airline partner to ensure strong North American coverage. This requirement effectively limits the market to three major alliances, as there are only three major U.S. carriers: United, Delta, and American Airlines, which anchor Star Alliance, SkyTeam, and Oneworld, respectively.
Passenger Benefits
Alliances allow seamless travel across member airlines, with benefits like elite status perks, extra baggage allowances, and priority boarding. However, language consistency is generally not guaranteed; a Lufthansa-coded United flight will likely have an English-speaking crew due to United’s standards.
Example Scenario
A passenger flying from Zurich to Los Angeles via Frankfurt might fly with Swiss (part of Star Alliance) on the first leg and Lufthansa on the second, enjoying consistent baggage benefits, lounge access, and mileage accrual across both airlines.
Comparison Table: Codeshares, ACMI, Dry Lease, and Alliances
To clarify these partnerships further, here’s a quick comparison of codeshares, ACMI, dry leases, and alliances based on key travel factors:
| Aspect | Codeshare | ACMI (Wet Lease) | Dry Lease | Alliance |
|---|---|---|---|---|
| Operating Airline | Marketing or codeshare partner | ACMI provider | Lessee airline | Alliance member airline |
| Booking & Ticketing | Through marketing airline | Through marketing airline | Through lessee airline | Through any alliance member airline |
| Language Consistency | Dependent on operating carrier | Dependent on ACMI provider | Consistent with lessee airline | Dependent on operating carrier |
| Baggage Policies | Usually set by marketing airline | Set by marketing airline | Set by lessee airline | Set by marketing airline |
| Loyalty Programs | Benefits through marketing airline | Benefits through marketing airline | Benefits through lessee airline | Alliance-wide perks and status recognition |
| Service Standards | Vary by operating carrier | Vary by ACMI provider | Consistent with lessee airline | More consistent across alliance members |
This table serves as a quick reference to understanding the differences and impacts of codeshares, ACMI, dry leases, and alliances.
What Does This Mean for Your Next Flight?
When booking, knowing the differences between codeshares, ACMI, dry leases, and alliances can help you navigate the options and set accurate expectations. Codeshares and alliances expand connectivity, ACMI flights support capacity while leasing, and dry leases allow fleet flexibility. For frequent flyers, understanding these arrangements can enhance your travel experience, helping you anticipate service standards, baggage rules, and loyalty benefits.
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