Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

Easterbrook, Circuit Judge. Like other major aircarriers, United has entered into code-sharingagreements with regional airlines, which flysmaller planes for shorter distances to less-populated destinations. The major carrier permitsthe commuter carrier to use its service marks andlogos for flights to and from its hub airports,and it lists the connecting flights in itscomputer reservation system under its name,carrier code, and flight numbers, such as “UA2345″ (hence the term “code-share,” see 14 C.F.R.sec.257(c)). The commuter carrier also receivespart of the revenue from through traffic thatuses both carriers’ facilities. In exchange, thecommuter carrier is subject to substantialdirection: it tailors its schedules so that theymesh with the major carrier’s arrivals anddepartures at the hub, provides planesappropriate to the traffic generated by the majorcarrier, and agrees to accept revenue that themajor carrier controls. (Contracts set thepercentage of through rates that the commutercarrier receives, but the major carrier sets thetotal fares, and thus determines the commutercarriers’ revenues.) Major carriers could usetheir discretion to make commuter carriers’operations unprofitable, but that would hurt themajors’ business by drying up local service anddriving passengers to other carriers that providebetter connecting flights. Market forces thusconstrain the exercise of contractual powers.

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

GlobeSt. Multifamily Spring 2023

March 27, 2023 - March 28, 2023
Miami, FL

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Learn More

The Asia Legal Awards (ASLA) 2023

March 30, 2023

Where the region's top lawyers, law firms and in-house teams will gather to celebrate their most stellar achievements of the year.

Learn More

GlobeSt Net Lease Spring 2023

April 03, 2023 - April 04, 2023
New York

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Learn More

Associate Attorney

Looking for an Associate Attorney with 2 to 5 years experience to handle Labor and Employment Law, Pension Appeals and Workers Compensation....

Apply Now ›

Health Law Associate CT

Health Law Associate CT Shipman is seeking an associate to join our national longstanding health law practice. Candidates must have t...

Apply Now ›

Litigation Associate (Hybrid Schedule)

Duane Morris LLP has an opening for Litigation Associate with 2-3 years of experience to join its Trial Practice Group in Houston. The candi...

Apply Now ›



Aaronson Rappaport Feinstein & Deutsch, LLP mourns the loss of cofounder and original Managing Partner, Mark B. Feinstein.

View Announcement ›



Lawyers of Distinction would like to announce...

View Announcement ›



Snyder Sarno D'Aniello Maceri & daCosta would like to announce that...

View Announcement ›