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Old 19th Nov 2007, 16:02
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Interline for WJ

WestJet seeks deal with Air France
Strategic partnership would intensify Calgary airline's rivalry with Air Canada in Montreal firm's backyard
BRENT JANG

From Monday's Globe and Mail

November 19, 2007 at 2:21 AM EST

PARIS — — WestJet Airlines Ltd. [WJA-T] is holding talks with Air France to forge a strategic partnership that would give new ammunition to the Calgary-based carrier, intensifying the battle against Air Canada [AC.A-T]in its own Quebec backyard.

The negotiations are aimed at reaching an “interline” pact, with Air France and WestJet likely to co-operate on services such as baggage transfer, saving time for passengers on connecting flights, industry sources say.

Details are being ironed out to first clear the way for WestJet to accept inbound Air France electronic tickets by mid-2008. Air France would accept outbound WestJet e-tickets by the end of 2008. The outbound arrangement means Canadian consumers could eventually book a flight to Paris through WestJet, with Air France getting part of the fare revenue after the French carrier flies passengers overseas.

For WestJet, founded in 1996 as a carrier that focused solely on the West, an alliance with Air France will bolster efforts to woo connecting passengers away from Air Canada in its home base in Montreal. WestJet, which added Montreal to its route network in 2003, is gearing up to start service to Quebec City in late 2008 or early 2009, sources say.


WestJet Airlines


Air Canada has long had an extensive presence in Alberta. WestJet is gradually mounting a counter-offensive to target Quebec. It now has 425 bilingual flight attendants, up from 330 earlier this year.

The Air France-WestJet partnership is expected to mark the start of a series of breakthroughs, as WestJet seeks to sign more co-operation deals with foreign carriers, notably Cathay Pacific Airways Ltd. and British Airways PLC.

Air France merged with KLM Royal Dutch Airlines in 2004, but the two carriers still fly under their own banners.

Air France showed its hospitality when it welcomed WestJet executives aboard a Friday demonstration flight of a packed 519-seat Airbus A380 double-decker plane from Montreal to Paris.

Hugh Dunleavy, WestJet executive vice-president of commercial distribution, took the special six-hour A380 flight with Duncan Bureau, WestJet vice-president of sales, and Ferio Pugliese, WestJet executive vice-president of people (human resources). The three men were among 12 guests invited to enjoy the superjumbo's first-class section.

Air France and WestJet declined to give details on this past weekend's talks in Paris, where Air France chief operating officer Pierre-Henri Gourgeon joined discussions.

But Mr. Dunleavy confirmed in an interview yesterday in Paris that WestJet's “discussions with Air France have been very positive, and there is a strong desire by both airlines to move ahead on an interline traffic agreement. WestJet is entering and implementing interline in a measured and quality way.”

He said WestJet will announce “substantive airline partners” in 2008, adding that “WestJet's brand equity and growth plans bring a lot to the table for prospective partners.”

WestJet is quietly enjoying the fruits of a low-profile interline pact with China Airlines of Taiwan, he pointed out. “Check-in, baggage handling and airport operations have been working smoothly,” Mr. Dunleavy said.

Christian Herzog, Air France vice-president of the Americas, said in an interview that no WestJet-Air France deal has been inked yet, but “Canada is an important market for us. WestJet would be a good partner.”

Christian Lahccen, Air France vice-president for Canada, expressed regard for WestJet's growing network, a sign of “an excellent company.”

WestJet will initially benefit by attracting Air France passengers arriving in Montreal and Toronto, but who want to connect to other cities, said Michael Merrithew, chief executive officer of Toronto-based tour operator Merit Travel Group Inc.

Mr. Merrithew was among a group of about 50 tour operators and other officials from the travel industry aboard the A380, at the invitation of Air France and airline manufacturer Airbus SAS.

There had been speculation that WestJet was favouring partnerships with the Oneworld alliance that includes Cathay and British Airways. Some observers say that a WestJet-Air France partnership might seem like strange bedfellows, but it makes sense for both sides. The pairing comes as a surprise because the French airline is a member of the SkyTeam alliance of carriers.

In dealing with SkyTeam's Air France, WestJet is signalling that it wants to remain an independent carrier, and not be tied down to a single alliance, opting instead to pick and choose individual airline partnerships, observers say.

Air Canada belongs to the Star Alliance, the largest of the world's three airline groups, ahead of SkyTeam and Oneworld.

Some insiders say Air France is gravitating toward WestJet at the same time that it distances itself, where possible, from Air Canada.

A WestJet-Air France partnership would have come in handy for passengers who caught WestJet from Toronto to Montreal last week to connect to the historic A380 trip, the first flight on the double-decker jet to carry a planeload of Canadians.

WestJet passengers had to pick up their own luggage in Montreal, and take their bags to the Air France check-in counter for the A380 flight.
le soixante neuf is offline  
Old 19th Nov 2007, 19:50
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So are talks still ongoing with BA and One World?
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Old 20th Nov 2007, 16:06
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Not with OneWORLD per se... We are talking with the carriers that make sense to our business plan. Cathay and British Airways would be Airlines we would like to work with, but not by becoming a "member" of OneWORLD. We wish to avoid any restrictions or barriers that joining might entail.

SouthWest and Volaris would also be Airlines we would like to work with, they are not part of any "Alliance".

Cheers.
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