Is WestJet a potential partner with Southwest?

Thursday, 29 May, 2008 0

Southwest Airlines was modeled after WestJet and now there are rumors the two companies will merge.

The move would allow Southwest to start serving international destinations, including Canada, on a code-share basis.

“However, with WestJet Airlines Ltd. putting the final touches in place to allow for such strategic partnerships, David Newman, National Bank Financial analyst, said he sees the potential for a tie-up between the Calgary carrier and Southwest,” speculated Canwest News Service.

“While a US alternative to ATA may present itself, we believe WestJet would be the natural choice for a Southwest code-share partner to Canada,” Mr Newman said in a note to clients.

Not only do the two airlines share a similar low-cost, customer-service-oriented business model, but there is significant overlap at Southwest’s major hubs which include Las Vegas, Phoenix and other areas.

Southwest, with its vast domestic network, could be an important partner, could provide WestJet with the US point of sale required for a major push south of the border.

WestJet’s management said their new reservation system that will allow for such code-share deals electronically is up and running, but it is still updating some its back room systems to allow them to recognize code-share revenue electronically. 

by David Wilkening



 

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