Capacity Purchase Agreement: an agreement between two or more air carriers under which one of the air carriers purchases or reserves for sale to its own customers all of the seating capacity aboard one or more aircraft operated by other air carriers in the agreement.

Commercial Agreement: A “Commercial Agreement” is a Codeshare Agreement or Joint Venture Agreement

1. A Codeshare Agreement is an agreement under which an air carrier other than the Company may carry customers ticketed under a flight number bearing a designator code then in use by the Company.

2. A Joint Venture Agreement is an agreement under which the Company receives revenues from the carriage of Customers aboard flights operated by another air carrier.

3. An Industry-Standard Interline Agreement is not a Commercial Agreement

Industry Standard Interline Agreement: an agreement between two airlines whereby:
1. either airline can sell tickets for travel on one or more flights operated either by itself and the other airline or operated only by the other airline;
2. neither airline can place its designator code or flight numbers on the flight or flights operated by the other airline under those tickets;
3. each airline will accept the other’s tickets as valid for travel;
4. baggage transfer and liability under those tickets are covered; and
5. the two airlines will realize proceeds from the sale of a ticket by way of sales commission, if any, plus:
a. an amount determined by pro-rating the ticket value according to the distance operated by each airline under the ticket;
b. an amount determined by prorating the ticket value according to each airline’s sector fare for the segment it operates; or c. an amount determined by prorating the ticket value according to the fare class and a banded-distance rate for the segment operated by each airline under the ticket.