Originally Posted by LostInPA

It's a pro-rate agreement. Colgan assumes all risk for operating the flight. from the Pinnacle Airlines Corp. Annual Report, page 12:

Form 10-K, dated 2/26/10
"
US Airways Express Agreement


We operate ten Saab 340 aircraft under a code-share agreement with US Airways (the “US Airways Agreement”). Colgan entered into the US Airways Agreement in 1999 to provide passenger service and cargo service under the name “US Airways Express.” The US Airways Agreement provides us use of the US Airways flight designator code to identify flights and fares in computer reservations systems, permits use of logos, service marks, aircraft paint schemes, and uniforms similar to those used by US Airways and coordinated scheduling and joint advertising. The US Airways Agreement is structured as a revenue pro-rate agreement for which we receive all of the fares associated with our local passengers and an allocated portion of connecting passengers’ fares. We pay all of the costs of operating the flights, including sales and distribution costs. We control all scheduling, inventory and pricing for each local market we serve. The current three-year US Airways Agreement became effective on October 1, 2005 under terms similar to the 1999 agreement. Since the end of the three-year term in 2008, the US Airways Agreement continues to automatically extend for multiple six-month periods until either party provides notice to terminate. "