People travelling by air these days sometimes find themselves without notification, on a flight with a different number, operated by a company other than that with which they’d booked … it’s called code sharing.

This can often cause confusion and even anger, if passengers find themselves on an airline that they consider to be inferior to the one they had chosen. Let’s explain how this circumstance can come about.

Code sharing originated in 1990 when Qantas Airways of Australia and American Airlines combined their services, between a number of US and Australian cities. This preceded the formation of airline alliances, which also use code sharing in a very comprehensive way.

The first alliance, Star Alliance was started in 1997. Thai Airways International was one of the five founding members, and the only one from Asia. This was followed by Oneworld which included Qantas and American Airways and Skyteam led by KLM-Air France.

Most airlines now also have code sharing agreements with other operators. The term ‘code’ is the identifier used in the flight schedule; generally the two character International Air Transport Association (IATA) airline designator code and a flight number.

For example, Flight XX123 operated by the airline XX, might also be sold by airline YY as YY456, and by airline ZZ as ZZ789. Airlines may participate in a code sharing arrangement for several reasons:

1. Connecting flights. This provides clearer routing for the customer allowing a customer to book travel from point A to C through point B under one carrier’s code instead of a booking from point A to B under one code and from point B to C under another.
2. Flights from two airlines that fly the same route. This gives an apparent increase in the frequency of service on the route for both airlines.
3. Perceived service to unserved markets. This allows carriers who do not operate their own aircraft on a given route to gain exposure in the market through display of their flight numbers. Under a code sharing agreement, the airline that actually operates the flight (the one providing the ’plane, the crew and ground handling services) is called the operating carrier and the airlines that sell tickets for that flight but do not actually operate it are called marketing carriers.

Most passengers and travel agents prefer flights which provide a direct connection and code sharing gives this impression. It can, however, be annoying for passengers as the Global Distribution Systems (Sabre, Amadeus, Galileo and Worldspan) often do not differentiate between direct flights and code sharing flights.

Alastair Carthew, a Phuket based writer and communications advisor.

Posted under Lifestyle, Travel & Tourism

According to Forbes magazine, Warren Buffet, the CEO of giant American investment fund Berkshire Hathaway, is the world’s second richest man. He’s made a fortune for himself and his fellow shareholders by investing in the world’s stock markets over many decades. The great stock market crash of 2008 began in September. Many people cringed when Buffet went back into the markets aggressively the following month, well before the markets bottomed in February this year. The point I’m trying to make is that if the world’s most successful investor of all time doesn’t know when the markets have bottomed, then what chance for the rest of us? It’s well-nigh impossible to second guess share price movements, and this is why I’m a keen advocate of unit cost averaging. The so-called drip-feeding approach, investing a little at a time, can be very beneficial whatever the markets are doing. It can make a big difference to the performance of a portfolio, whether it’s a lump sum investment or a regular savings plan generating a pot for retirement, school fees etc. This is how you can benefit from volatility and price fluctuations.

Volatility is inherent in equity investing. It’s important for you to realise that market fluctuations are normal and you should therefore be aware of the risks. Fluctuating share prices obviously mean that the unit prices of funds will also fluctuate, thereby impacting on the value of your portfolio. This is where a strategy of regular investing or drip-feeding really pays off.
The following example demonstrates what can happen when investing in periods of high volatility.


Key points

• The effect of the fluctuating unit price has meant that Example B has ended up with a higher fund value than in a steadily increasing market. Even though the unit price is actually lower at the end of the example than it is at the start.
• To reap benefits from stock markets an investor need not necessarily have a large lump sum to invest.
• Unit cost averaging holds obvious benefits for investors making regular savings/premiums.
• It is important to consider the risks associated with all types of investment, particularly those associated with equity markets.

With the above in mind I think it appropriate to show again how the markets have performed over the recent past. As you can see there have been periods of high volatility. Unit cost averaging has worked during this time to great effect, and no doubt will do so again in the future.

The bigger picture
The case for investing in equities
Taking into account the effects of any short term volatility, the case for investing in equities remains as strong today as it has ever been for those investors with a long-term investment horizon. Over the last 25 years, an investment in the S&P 500 would have grown to almost 20 times its original value.

George Lindsay, Wealth Manager at Expat Solutions

Posted under Investments & Financial Opportunities, Lifestyle, Property News

The oldest club of any kind on Phuket, Phuket Yacht Club, turns 40 this year – and is gearing up to celebrate in style at Royal Phuket Marina.

Phuket Yacht Club is located in one of the safest and most idyllic bays on the island, Ao Yon on Cape Panwa. The club is reminiscent of days long gone, when expats would laze away a Sunday afternoon over cold beers and varied conversation, undisturbed by jet-skis, mass tourism or… well, anything for that matter.

Of course, if lazing isn’t your thing, there is the sailing…The aim of the club – essentially a small boat/dinghy sailing club – is to introduce people to the sport of sailing and encourage others to participate in sailing, club racing and other water activities.

The club offers recreational sailing, club racing, boat rental and family day barbeques – as well as racing lessons to children. In co-operation with Topper Sail, a whole range of sail training is also available for children as well as adults. Those ‘in the know’ when it comes to sailing say that people who start out in dinghies make absolutely the best sailors.

The club’s community contributions include links with Sunshine Home in Koh Sirey; the club invites the Sunshine children to learn about sailing and participate in free lessons, racing and family days at the club. It is the club’s aim that these children have the opportunity to participate in Optimist racing events around Thailand – and possibly even further afield.

The club’s history goes back 40 years and it’s recognised as the oldest yacht club in Thailand. It has always been based in Ao Yon and has always concentrated on teaching sailing and water sports to as many as possible from all walks of life.

This year is the club’s 40th birthday and, on Saturday, November 21st from 5.30 pm, Skippers in Royal Phuket Marina will be hosting a celebration of four decades of promoting sailing – a celebration that should appeal to all ages. Children’s entertainment, a buffet dinner, silent auctions, happy hour bar, music and raffle prizes from some of Phuket’s most prominent hotels and businesses – not to mention revelers from every walk of life and every part of the island – should make for a party worthy of the occasion.

Apart from the celebratory nature of the party, the objective is to raise funds to promote junior and youth sailing on Phuket and to continue the work providing sailing opportunities to underprivileged children.

Tickets are at 600 baht for adults and 150 baht for kids. Tickets are available on the day. Just show up and enjoy!

Posted under Lifestyle, Travel & Tourism