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Old 07-08-2008 | 10:41 PM
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Default SWA and Westjet unveil codeshare

Southwest and WestJet unveil alliance

By Bernard Simon in Toronto and Justin Baer in New York

Published: July 9 2008 00:03 | Last updated: July 9 2008 00:03

Southwest Airlines and WestJet, the biggest US and Canadian low-cost carriers, have agreed to an operating and marketing partnership that will extend their reach into neighbouring international markets.

The co-operation, which is expected to include co-ordinated and shared flight schedules, reciprocal frequent-flyer programmes and joint ground-handling operations, marks Southwest’s first alliance with a foreign carrier, while broadening WestJet’s horizons in its rivalry against Air Canada.

Sean Durfy, WestJet’s chief executive, said the deal made sense “when you examine our network in Canada and Southwest’s network in the US, and the potential to significantly improve both organisations’ market access”.

Calgary-based WestJet has been modelled on Southwest since it started flying in 1996.

Both fleets consist entirely of Boeing 737s, with Southwest operating about 500 aircraft and WestJet 75.

The carriers plan to announce details of the partnership late next year. Some elements are conditional on US and Canadian government approval.

Most of Southwest’s and WestJet’s traditional rivals are members of three main international alliances: Oneworld, SkyTeam and Star Alliance, enabling them to offer a wider range of destinations and connections through partner airlines.

Star, which counts Air Canada and United Airlines as members, recently welcomed a third large US carrier, Continental Airlines.

The pace of Southwest’s discussions with WestJet accelerated in April, when its alliance with ATA Airlines unravelled following ATA’s collapse.

Copyright The Financial Times Limited 2008
Old 07-08-2008 | 10:46 PM
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