WestJet - Southwest Hub?

[invertedattitude]

With the upcoming plan for WestJet and Southwest to go "Interline" or "Codeshare" whatever it's called, I assume there's got to be a place, or places for passengers to entire the others route network.

Any news or rumours on the planned bases for this? Obviously either SWA will have to start flying to Canada, or WestJet would need service to somewhere like BWI or MDW?

[bmc]

No particular need for a hub per se to interline. Interlining is the acceptance of each others tickets and baggage. An interline agreement enables carriers to sell flights on each other. Since the world is e-ticket based, each carriers system needs to "talk" to the other in order to see availability and make a sale.

Code sharing is placing one airlines code on another operating airline. You need to have an interline agreement in place before you can proceed with a code share. Carriers can put their code on routes both carriers operate or on routes flown by the other carrier.

Computer reservation systems used by travel agents have a hierarchy of preference of flight shown. Non stop o a single airline takes precedence over an online connection, which has precedence over an interline connection. Such sequencing of displays place online flights higher, resulting in more sales opportunities. Therefore, having your code all over the place, will give you more bookings, whether you operate or not. In the code share world, there are marketing airlines and operating airlines. The marketing airline is the one putting its code on the operating airline.

[invertedattitude]

Ok, but I have to ask, what is the point for me to buy a ticket on WestJet's website to fly on Southwest if I can't connect to that Southwest flight via a WestJet flight on an easy and regular basis?

[Jastapilot]

the price? your bags are connected too?

[ravensrule]

We currently fly to the current focus cities of Southwest:
# McCarran International Airport
# Los Angeles International Airport
# Orlando International Airport
# San Diego International Airport (seasonally, but maybe year around we'll see)
# Tampa International Airport
# Phoenix Sky Harbor International Airport

LAS gets the most daily flts year around. MCO gets its fair share of daily flts in the winter and I think one flt from yyz in the summer IIRC.

Rumours we are flying to these soon:
# Chicago Midway International Airport
# Dallas Love Field (not sure exactly which Dallas/Texas airport so I'll list both)
# Austin-Bergstrom International Airport

The rest of SWA cities are:
# Baltimore-Washington International Thurgood Marshall Airport
# William P. Hobby Airport
# Oakland International Airport
# Pittsburgh International Airport
# Philadelphia International Airport
# Nashville International Airport
# Denver International Airport

I do agree we will have to increase the amount of flights to them and start flying year around to these destinations.
***Just wanted to add the list is compliments of wikipedia.

[bmc]

The thing about partnerships is understanding the drivers of your customers and how to attract them. If you have a loyal customer base, a frequent flyer programm and your service is the leading driver in carrier selection, having your code all over the place will help attract more customers. If your customer base is driven by price, it matters little what the price is, what colour the planes are or if you get a bunwich and a coke. If the price is cheapest, the selling airline gets the business.

This partnership is intriguing in that it involves two LCC airlines. The original model for low cost avoided interlining. The cost to support interline transfers, automation to link into each carriers availability, etc, was something to be avoided.

I see the low cost and the legacy models moving closer together over time. Take a look at Aer Lingus and take a look at AC. Good examples of this.

The Westjet / Southwest deal is interesting as it strays from their core business model. In my mind, both of these carriers positioned as low cost/low fare airlines. I don't see the added value of putting code on each other. Joint fares all over the USA, sure. The piece I don't know is what portion of their total sales is driven by travel agents versus online. If agents make up the bulk, it's important to show first screen aviability.

Both of these carriers are smart operators. They usually don't do things that don't make business sense.

[CanadaEH]

Given the current cities both airlines fly, LAS is positioned to be the main transfer point. LAX will grow in the future but we are currently in a different terminal and would need SWA to provide us with gates in their terminal for that city to function as a transfer point. We apparently had 35% of our capacity this winter allocated to transborder/Carribean and that number is could grow closer to 45% next year. It's probably safe to assume that'll include new destinations that can be used as a transfer point between the two carriers.

Phase one of the "agreement" is the ability to sell WJ flights on swa.com. It's a temporary setup right now, as you have to click on a "Canada" tab and then connect to westjet.com. The next phase is for SWA to sell WJA tickets directly on its website without having to click on a separate tab. The third phase would be to go fully live with interlines/codeshares.

bmc, you said "Both of these carriers are smart operators. They usually don't do things that don't make business sense."
There's an obvious reason to this agreement (and the others with Air France/KLM and another soon-to-be-announced carrier) in that it helps boost market share and increase revenue. I'm not even going to begin to wrap my head around how much, where, or why, but our Company has spent a lot of time making sure that they do this right and I have no doubt that they will and all for the right reasons. The LCC/legacy models aren't what they used to be and I think that's a function of adapatation and evolution; the weak get weaker and the strong get stronger.

[bmc]

The LCC/legacy models aren't what they used to be and I think that's a function of adapatation and evolution; the weak get weaker and the strong get stronger.

You are absolutely correct. I'm not crazy about terms like "low cost airline" and "legacy". It puts both parties on different sides of the river as the river moves on. What we have been seeing emerging is what I call "next generation airlines" that blends the USP's of both models: low cost, quick turn arounds, single acft type, simple, simple, to be blended with network, select strategic interlining and partnerships based on low settlement values (which can only be agreed to if your cost base is in line). These, to me, and the forward thinking carriers. I keep coming back to Aer Lingus and AC as good examples. Two old dinosaurs that took aggressive, brave, very tough decisions to survive. Incredibly difficult for employees to shoulder and watch what were once high class, high quality airlines. And money losers too. Airlines had to sit up and take notice of the LCC model for two reasons. First, it was stealing their business and second, it was a profitable business model.

Your sentence, I have pasted above sums it up brilliantly. It's forward looking, which is what we all have to do.

[WS739]

Rumours we are flying to these soon:
# Chicago Midway International Airport
# Dallas Love Field (not sure exactly which Dallas/Texas airport so I'll list both)
# Austin-Bergstrom International Airport

Not allowed into Love Field due to restrictions ( only state to state and no more than X amount of seats , SWA has grandfather clause) and DFW is a major hub of a few other carriers and impossible to codeshare through, so im not sure what WS will do in Texas) I hope they find a suitable airport because there are tons of travel between alberta and Texas.

SWA just announced LGA which is weird because WJA goes to NEWARK. Maybe SWA will build the slots domestically and give them to WJA later on.

the price? your bags are connected too?

Price will probably won't be cheaper but affordable, with someone being able to book any city SWA flies to (almost) through westjet.com it will be a huge success for them. They will essentially double their network overnight allowing tons of flexibility for the summer/winter utilization and also providing great ways to get to the US.

I think what you will see is a North American alliance ( SWA, WJA, Volaris ) IMO.

[invertedattitude]

If WJA-SWA is going to succeed, you will need to have easy connections from YYZ. Connections from YYC only eliminates the biggest cities in the country and the east coast from using the service.

[jjj]

I suppose networks can link up in LAX, SFO, LAS, and PHX to name a few which isn't a bad start for western stuff.

Networks can also link up in FLL and MCO which then brings YYZ into the mix quite nicely.

Not sure where else our networks cross over.

[flystraightin]

Never in a million years will SWA build capacity and give away slots or gates to WJA. These are two separate companies with completely different visions for the future. WJA and SWA will continue to seek opportunities that benefit both airlines, but neither company is going to make decisions based on the other.

At this time, SWA is not looking to fly to Canada. I think we will see YYZ and YYC to MDW with our aircraft. Also, I'd bet WJA will open DEN, a city that SWA has been aggressively marketing.

I don't think we'll touch Dallas. I think we'll fly to MDW and DEN, and have to go through MCI or OKC to get there.
YYC-DEN-OKC-DAL....talk about milk run...not very appealing to the businessman. I think we'll seriously consider HOU or AUS.

Like most, I think Vegas will be the biggest transfer point. There's a market for LAS (as end traffic, for obvious reasons) from every Canadian city. End traffic (routes that can make money standing alone) will be the key to WJA's transfer points. We'll also build up PHX (snowbirds) and LAX. Eventually, though, I think SWA will have to fly to our Tier 1 bases, or at least YVR, YYC and YYZ, for those connections that WJA will not fly to.