Finally, the small airline benefits too because its partner will act as its global General Sales Agent and a substantial increase in bookings should be the result.
- For the large airline, the advantages are also clear. It will be able to charge substantial franchising fees, and such fees will constitute useful incremental revenue. Even more significantly, it will gain important feed into its long-haul traffic system, without the costs of providing such feed itself. Large airlines generally find it difficult to achieve competitive costs on thin routes, mainly because these routes require small aircraft which in turn do not allow high operating costs to be spread over a large number of seats. Smaller airlines, with lower pilot salaries in particular, will be much
better placed to be cost efficient suppliers.