Subsidiary vs Larger Fleet

Hi all,

Just a very simple question with a (potentially) simple answer here.

If I create a subsidiary, I understand that this will then require an interlining agreement with my main operator. As far as the reservation system is concerned, will these flights be seen unfavourably owing to not all being with the same carrier? Further, would I see a reduction in demand if I were to transfer a flight (in other words, create a new route in the subsidiary and close it in the mainline operator) to the subsidiary?

I appreciate the subsidiary allows me to expand aircraft types without the increase in maintenance cost, but will the fact it’s not the same company negatively impact bookings to the extent I may as well just expand the mainline anyway?

Is there any difference depending on reservation system (eg: old ORS vs Individual travel requests)?

zero negative impact through utilisation of an IL, regardless of intra-holding or external.

so replacing a flight by sub A with a flight by sub B will not, in itself, have any impact on rating.

since company image, aircraft type and age, …. have an impact on the final rating (directly or indirectly) the resulting ORS rating could still vary. but that would not be based on the fact that pax switch carriers in itself.

you sound like you thought through the entire m/x costs vs. founding a sub, I will not go into detail, also there are tens of threads about it anyway, but if it is just about a fourth m/x category, in most scenarios, it makes no sense to found a sub from a purely financial point of view.

Many thanks for the reply.

Having done some quick maths here, could you advise the staff that would be duplicated by establishing a subsidiary? I can only really see network planning and administration, otherwise I assume all staff simply scale with each additional airframe/departure?