In a news release on July 8, 2008, Southwest announced it’s plans of joining the international market by entering a relationship with WestJet, Canada’s leading airline. While the rest of the US airline companies are faltering and constantly raising flight costs to be able to keep up with the rising oil prices, Southwest, who is already the countries leading low-fare carrier, is sure to soar even higher as a result of the new partnership with WestJet.
As of yet, the companies are being tight-lipped about the full details of the marriage, but plan on unveiling a fully integrated operation by the beginning of 2009, sharing a variety of services.
According to GADLING, these services will include shared flight paths, schedules and fares, as well as the ability for customers to book flights on WestJet through the Southwest website and vice versa.
The two companies will even share frequent-flier programs allowing passengers to combine their frequent flier miles.
As CNNMoney.com reports, the deal is likely to be profitable one for both carriers. WestJet is looking to increase their capacity by 16%, while Southwest plans to increase their seat capacity by 4% by the close of the year – and while Southwest has eliminated 31 flights, they are planning on adding 40 new ones. “Sean Durfy, WestJet’s chief executive, said ‘the potential to significantly improve both organizations’ market access’ makes the deal a great move for the two airlines.”
This merger between the carriers is good news for travellers in Canada as well as the US, since the shared companies’ costs will allow them to keep their prices down. There doesn’t seem to be a silver lining in it, however, for other US carriers who are now likely to be left in an even bigger shadow cast by Southwest.
Photo:© Matt Hebert
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