Commercial Agreement

In the context of aviation, a Commercial Agreement refers to a legally binding contract between two or more parties, typically airlines, that outlines the terms and conditions of their business relationship. These agreements can cover a wide range of topics, including but not limited to, code-sharing, interline agreements, joint ventures, and leasing arrangements. Code-sharing agreements allow airlines to sell seats on each other's flights, thereby expanding their network reach. Interline agreements, on the other hand, enable passengers to travel across the networks of multiple airlines with a single ticket. Joint ventures are more comprehensive and involve a high level of cooperation in scheduling, pricing, and revenue management. Leasing arrangements allow airlines to lease aircraft from other airlines or leasing companies. Commercial agreements in aviation are crucial for airlines to expand their network, increase their operational efficiency, and improve their financial performance. They are governed by international aviation law and are subject to approval by regulatory authorities to ensure fair competition.