CaptW5
31st Aug 2006, 17:46
http://www.theglobeandmail.com/servlet/story/RTGAM.20060831.wxrwestjet31/BNStory/Business/home
WestJet looks to fly higher with Oneworld
BRENT JANG
From Thursday's Globe and Mail
WestJet Airlines Ltd. is holding preliminary talks to join Oneworld, a global alliance that would lift the carrier into aviation's major leagues.
The early-stage discussions come as WestJet tries to narrow the gap between it and the country's largest carrier, Air Canada, a member of the rival Star Alliance. Air Canada, with the advantage of garnering connecting Star Alliance passengers, typically fills more seats than WestJet does.
In the first seven months of this year, Air Canada's load factor -- the proportion of available seats filled -- averaged 81.7 per cent, compared with WestJet's 78.9 per cent.
With Oneworld in its sights, Calgary-based WestJet is seeking to graduate beyond its roots as a regional niche player. Over the past two years, the discount carrier has introduced frills such as leather seats and satellite television. WestJet marketing campaigns are aimed increasingly at business travellers.
WestJet is seeking to forge a special arrangement that would allow it to retain its scheduling flexibility while capturing connecting Oneworld passengers, said Sean Durfy, WestJet's executive vice-president of marketing, sales and airports.
Oneworld members include some of the industry's heavyweights, including American Airlines Inc., British Airways PLC, Cathay Pacific Airways Ltd., Aer Lingus Group PLC and Qantas Airways Ltd.
Montreal-based Air Canada is able to fill more of its seats because it attracts extra traffic from travellers transferring to and from Star Alliance carriers such as Deutsche Lufthansa AG, United Airlines Inc., US Airways Group Inc. and Singapore Airlines Ltd.
"Certainly, we've talked with Oneworld. That alliance is missing a Canadian partner, and we are a pretty natural fit," Mr. Durfy said in an interview.
"There is an opportunity to be involved in that relationship in some respect. It makes a lot of sense to talk about these things."
Canadian Airlines International Ltd. belonged to Oneworld before Air Canada acquired the carrier in early 2000, but WestJet has operated largely as an independent since it started flights in 1996.
WestJet currently has co-operation agreements with Japan Airlines and Air China, but a Oneworld deal would boost passenger loads more.
"WestJet is already larger today than Canadian Airlines ever was domestically," Mr. Durfy said. "When I look to the future, I'm excited by what I see. We're setting up a strong foundation."
A new computer reservations system, expected to be unveiled in mid-2007, would make it possible for WestJet to handle bookings that require transfers to and from Oneworld members. WestJet flies to 35 destinations in Canada and the United States, including Hawaii.
It is adding the Toronto-Bahamas route in November, but doesn't yet have any other overseas destinations in its commercial schedule.
"WestJet is really the only carrier with a significant cross-Canada network that would work" with Oneworld, travel consultant Robert Kokonis said.
An industry insider, who asked not to be named, said WestJet explored the idea of forming an alliance with American Airlines several years ago. But WestJet walked away from the talks -- a sign that it won't join Oneworld at any cost.
"Oneworld needs WestJet more than WestJet needs them. The devil is in the details, but the bottom line is WestJet can drive a great deal, especially on the mechanics of the arrangement with Oneworld," the insider said.
WestJet intends to stick with its single cabin of economy-class seats, eschewing business class.
Lower-profile alliances with dozens of Canada's small commuter carriers are also possible, said Mr. Durfy, who took over responsibility for WestJet's airport operations in April from Donald Bell. Mr. Bell, a WestJet co-founder, has retained his duties as executive vice-president in charge of corporate culture.
Mr. Durfy added that WestJet wants to raise its profile, especially in Central Canada. The airline has hired Deborah Knight, who runs a public relations company in Toronto, as its manager of public relations and communications.
Airline alliances
These partnerships seek to attract travellers to their member carriers by allowing consumers to book flights and make connections smoothly, with baggage transferred and faster check-in. Fares on many connecting routes are lower than if booked separately. Frequent-flier programs offer redemptions within an alliance. Besides full-fledged members, there are also other categories such as regional and associate members.
Oneworld: Eight members serving more than 600 destinations in 135 countries. Members include American Airlines Inc., British Airways PLC, Cathay Pacific Airways Ltd. and Qantas Airways Ltd. Smallest alliance.
Star Alliance: The largest alliance with eighteen members serving more than 840 destinations in 152 countries. Members include Air Canada, Deutsche Lufthansa AG, United Airlines Inc. and Singapore Airlines Ltd.
SkyTeam: The second-largest alliance with 10 members serving more than 725 destinations in 149 countries. Members include Air France-KLM, Continental Airlines Corp., Northwest Airlines Corp. and Delta Air Lines Inc.
WestJet looks to fly higher with Oneworld
BRENT JANG
From Thursday's Globe and Mail
WestJet Airlines Ltd. is holding preliminary talks to join Oneworld, a global alliance that would lift the carrier into aviation's major leagues.
The early-stage discussions come as WestJet tries to narrow the gap between it and the country's largest carrier, Air Canada, a member of the rival Star Alliance. Air Canada, with the advantage of garnering connecting Star Alliance passengers, typically fills more seats than WestJet does.
In the first seven months of this year, Air Canada's load factor -- the proportion of available seats filled -- averaged 81.7 per cent, compared with WestJet's 78.9 per cent.
With Oneworld in its sights, Calgary-based WestJet is seeking to graduate beyond its roots as a regional niche player. Over the past two years, the discount carrier has introduced frills such as leather seats and satellite television. WestJet marketing campaigns are aimed increasingly at business travellers.
WestJet is seeking to forge a special arrangement that would allow it to retain its scheduling flexibility while capturing connecting Oneworld passengers, said Sean Durfy, WestJet's executive vice-president of marketing, sales and airports.
Oneworld members include some of the industry's heavyweights, including American Airlines Inc., British Airways PLC, Cathay Pacific Airways Ltd., Aer Lingus Group PLC and Qantas Airways Ltd.
Montreal-based Air Canada is able to fill more of its seats because it attracts extra traffic from travellers transferring to and from Star Alliance carriers such as Deutsche Lufthansa AG, United Airlines Inc., US Airways Group Inc. and Singapore Airlines Ltd.
"Certainly, we've talked with Oneworld. That alliance is missing a Canadian partner, and we are a pretty natural fit," Mr. Durfy said in an interview.
"There is an opportunity to be involved in that relationship in some respect. It makes a lot of sense to talk about these things."
Canadian Airlines International Ltd. belonged to Oneworld before Air Canada acquired the carrier in early 2000, but WestJet has operated largely as an independent since it started flights in 1996.
WestJet currently has co-operation agreements with Japan Airlines and Air China, but a Oneworld deal would boost passenger loads more.
"WestJet is already larger today than Canadian Airlines ever was domestically," Mr. Durfy said. "When I look to the future, I'm excited by what I see. We're setting up a strong foundation."
A new computer reservations system, expected to be unveiled in mid-2007, would make it possible for WestJet to handle bookings that require transfers to and from Oneworld members. WestJet flies to 35 destinations in Canada and the United States, including Hawaii.
It is adding the Toronto-Bahamas route in November, but doesn't yet have any other overseas destinations in its commercial schedule.
"WestJet is really the only carrier with a significant cross-Canada network that would work" with Oneworld, travel consultant Robert Kokonis said.
An industry insider, who asked not to be named, said WestJet explored the idea of forming an alliance with American Airlines several years ago. But WestJet walked away from the talks -- a sign that it won't join Oneworld at any cost.
"Oneworld needs WestJet more than WestJet needs them. The devil is in the details, but the bottom line is WestJet can drive a great deal, especially on the mechanics of the arrangement with Oneworld," the insider said.
WestJet intends to stick with its single cabin of economy-class seats, eschewing business class.
Lower-profile alliances with dozens of Canada's small commuter carriers are also possible, said Mr. Durfy, who took over responsibility for WestJet's airport operations in April from Donald Bell. Mr. Bell, a WestJet co-founder, has retained his duties as executive vice-president in charge of corporate culture.
Mr. Durfy added that WestJet wants to raise its profile, especially in Central Canada. The airline has hired Deborah Knight, who runs a public relations company in Toronto, as its manager of public relations and communications.
Airline alliances
These partnerships seek to attract travellers to their member carriers by allowing consumers to book flights and make connections smoothly, with baggage transferred and faster check-in. Fares on many connecting routes are lower than if booked separately. Frequent-flier programs offer redemptions within an alliance. Besides full-fledged members, there are also other categories such as regional and associate members.
Oneworld: Eight members serving more than 600 destinations in 135 countries. Members include American Airlines Inc., British Airways PLC, Cathay Pacific Airways Ltd. and Qantas Airways Ltd. Smallest alliance.
Star Alliance: The largest alliance with eighteen members serving more than 840 destinations in 152 countries. Members include Air Canada, Deutsche Lufthansa AG, United Airlines Inc. and Singapore Airlines Ltd.
SkyTeam: The second-largest alliance with 10 members serving more than 725 destinations in 149 countries. Members include Air France-KLM, Continental Airlines Corp., Northwest Airlines Corp. and Delta Air Lines Inc.