Cpt. Underpants
15th Sep 2004, 00:41
WestJet, Cathay consider alliance
By BRENT JANG
TRANSPORTATION REPORTER
Cathay Pacific Airways Ltd. is holding talks with WestJet Airlines Ltd. to form a strategic alliance in a bid to raise the Hong Kong carrier's Canadian profile and form a common front against Air Canada.
"We've had some exploratory chats with WestJet," said Philippe Lacamp, the new head of the foreign airline's Canadian operations. "It's going to be important that there is as close a match as possible. It's certainly something that I will continue to explore. I think we're quite a good fit."
Preliminary discussions between Cathay and Calgary-based WestJet began six months ago, and if all goes smoothly, the two sides could be partners in the Canadian market within a year, Mr. Lacamp said.
Mr. Lacamp said in an interview his airline wants to defend its turf against incursions from Air Canada's new international strategy, notably its plan to bolster Asia-Pacific traffic.
Montreal-based Air Canada, which is scheduled to emerge from bankruptcy protection Sept. 30, has indicated in its restructuring plan that it will bank on its Asian flights to help it return to profitability.
"Air Canada's most lucrative area is the transpacific. That's no secret," Mr. Lacamp said.
Using wide-body aircraft, Cathay currently offers two daily non-stop flights to Hong Kong from Vancouver and one daily flight to Hong Kong from Toronto, via Vancouver.
Cathay also offers one daily non-stop flight to New York from Vancouver. And depending on demand, Cathay could add an extra daily flight to Hong Kong from Toronto.
The goal is to make it possible for a passenger booking a flight to Hong Kong from smaller Canadian centres -- such as Calgary, Ottawa, Montreal and Halifax -- to board WestJet and connect to Cathay seamlessly on one booking.
"There are important concentrations of the Asian travelling community throughout Canada," Mr. Lacamp said. Luggage destined for Hong Kong would be transferred by baggage handlers instead of having WestJet customers collect and recheck their bags.
WestJet, in business since 1996, stands to benefit from a partnership with Cathay by attracting more passengers on domestic routes into Vancouver and Toronto.
Cathay recognizes the importance of Canada-Hong Kong relations, and also wants to persuade more Canadian travellers to use Hong Kong as the gateway to China and other Asian centres, Mr. Lacamp said.
Last week, Cathay won the right to gain greater access to China's bustling market. The mainland government has been restricting the carrier to three flights a week to Beijing from Hong Kong.
Cathay, which resumed service to Beijing last December after a 13-year absence, will be able to offer daily flights to the Chinese capital from Hong Kong.
While Air Canada has the advantage of an extensive domestic network that feeds into its Vancouver and Toronto hubs, Cathay is seeking to woo some of that domestic traffic through WestJet.
"If WestJet is putting in a product which is superior to Air Canada, and we already believe our product is superior, hopefully that's an offering that the travelling public is going to enjoy," said Mr. Lacamp, who will meet WestJet chief executive officer Clive Beddoe this fall.
WestJet spokeswoman Siobhan Vinish declined to discuss the Calgary carrier's specific talks with possible partners, but she said WestJet "continues to talk to different airlines on an ongoing basis about opportunities for the future."
A major obstacle to any partnership would be WestJet's "ticketless" reservation system that secures bookings but provides confirmation by fax or e-mail instead of a conventional ticket, she said.
Cathay belongs to the One World Alliance and sees WestJet as a prospective partner because the discount carrier is independent.
Air Canada, by contrast, is a partner in the rival Star Alliance.
By BRENT JANG
TRANSPORTATION REPORTER
Cathay Pacific Airways Ltd. is holding talks with WestJet Airlines Ltd. to form a strategic alliance in a bid to raise the Hong Kong carrier's Canadian profile and form a common front against Air Canada.
"We've had some exploratory chats with WestJet," said Philippe Lacamp, the new head of the foreign airline's Canadian operations. "It's going to be important that there is as close a match as possible. It's certainly something that I will continue to explore. I think we're quite a good fit."
Preliminary discussions between Cathay and Calgary-based WestJet began six months ago, and if all goes smoothly, the two sides could be partners in the Canadian market within a year, Mr. Lacamp said.
Mr. Lacamp said in an interview his airline wants to defend its turf against incursions from Air Canada's new international strategy, notably its plan to bolster Asia-Pacific traffic.
Montreal-based Air Canada, which is scheduled to emerge from bankruptcy protection Sept. 30, has indicated in its restructuring plan that it will bank on its Asian flights to help it return to profitability.
"Air Canada's most lucrative area is the transpacific. That's no secret," Mr. Lacamp said.
Using wide-body aircraft, Cathay currently offers two daily non-stop flights to Hong Kong from Vancouver and one daily flight to Hong Kong from Toronto, via Vancouver.
Cathay also offers one daily non-stop flight to New York from Vancouver. And depending on demand, Cathay could add an extra daily flight to Hong Kong from Toronto.
The goal is to make it possible for a passenger booking a flight to Hong Kong from smaller Canadian centres -- such as Calgary, Ottawa, Montreal and Halifax -- to board WestJet and connect to Cathay seamlessly on one booking.
"There are important concentrations of the Asian travelling community throughout Canada," Mr. Lacamp said. Luggage destined for Hong Kong would be transferred by baggage handlers instead of having WestJet customers collect and recheck their bags.
WestJet, in business since 1996, stands to benefit from a partnership with Cathay by attracting more passengers on domestic routes into Vancouver and Toronto.
Cathay recognizes the importance of Canada-Hong Kong relations, and also wants to persuade more Canadian travellers to use Hong Kong as the gateway to China and other Asian centres, Mr. Lacamp said.
Last week, Cathay won the right to gain greater access to China's bustling market. The mainland government has been restricting the carrier to three flights a week to Beijing from Hong Kong.
Cathay, which resumed service to Beijing last December after a 13-year absence, will be able to offer daily flights to the Chinese capital from Hong Kong.
While Air Canada has the advantage of an extensive domestic network that feeds into its Vancouver and Toronto hubs, Cathay is seeking to woo some of that domestic traffic through WestJet.
"If WestJet is putting in a product which is superior to Air Canada, and we already believe our product is superior, hopefully that's an offering that the travelling public is going to enjoy," said Mr. Lacamp, who will meet WestJet chief executive officer Clive Beddoe this fall.
WestJet spokeswoman Siobhan Vinish declined to discuss the Calgary carrier's specific talks with possible partners, but she said WestJet "continues to talk to different airlines on an ongoing basis about opportunities for the future."
A major obstacle to any partnership would be WestJet's "ticketless" reservation system that secures bookings but provides confirmation by fax or e-mail instead of a conventional ticket, she said.
Cathay belongs to the One World Alliance and sees WestJet as a prospective partner because the discount carrier is independent.
Air Canada, by contrast, is a partner in the rival Star Alliance.