THE interlining arrangement by Air Kiribati and Our Airline of Nauru is a system that is coming to stay, says Director Civil Aviation Akuila Waradi.
Mr Waradi said interlining arrangements see one airline engaging another airline for seat allocation.
"The marketing carrier then sells seats in an operating carrier as a connecting sector to one of its own routes," he said.
Mr Waradi said the move taken by the two airlines was bold and innovative. "The Air Kiribati and Our Airline interline arrangement, though not entirely a new phenomenon, nevertheless ushers in a cost effective air transport service," he said.
Because of that, Mr Waradi said interlining was an arrangement that was being increasingly used by international air operators.
"The rules of interlining are clearly spelt out and international air carriers are aware of the implications if they work outside such stipulations -- breaches can and have resulted in operators' international air licenses being cancelled," he said.
He said the marketing airline selling seats on another airline would have to use the operating airline's designation code.
"It cannot under established IATA rules use its own airline designation."
Mr Waradi said the marketing airline was more-or-less acting like a sales agent and would pay an agreed interline rate to the other carrier.
He said the operating carrier took most of the rewards in this arrangement but it was a good way for carriers to drive traffic onto their services.
