WestJet is reportedly in talks with Delta Air Lines to form a codeshare agreement after an agreement with Southwest Airlines was placed on hold indefinitely in May-2009 (Reuters, 30-Mar-2010). WestJet is expecting to receive five daily slots at New York LaGuardia Airport from Delta if a slot agreement with US Airways and other carriers is approved by the US DoT.
WestJet reportedly in talks with Delta Air Lines to form codeshare deal
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China-US air growth slows as Xiamen Airlines flies Fuzhou-New York, making the world a smaller place
The world becomes a smaller place on 15-Feb-2017 with the launch of Xiamen Airlines' Fuzhou-New York JFK service. The route is a not a headline grabber like the ultra long hauls of Singapore-San Francisco or Doha-Auckland. But linking the two cities brings a nonstop flight to what is, by some calculations, the largest unserved trans-Pacific market.
The new flight reflects on current themes in the market between Asia and North America: the growth from China's secondary cities, more Chinese airlines being catapulted onto the world stage, and impacts to one stop competitors.
Fuzhou-New York will initially be only flown three times a week, supporting competitors' retorts that they have a frequency advantage – or at least for now. Competitors have also claimed a better product, but Xiamen's 787-9 is China's fifth widebody to offer direct aisle access business class. Soft service is catching up, and likewise for commercial planning: Xiamen's 787-9s do away with first class. This report looks at the growth of China and the rest of Asia to North America as growth momentum slows with China's bilateral capacity being reached.
Branded fares: a philosophical shift to preserve premium product pricing for large US airlines
The Basic Economy trend sweeping the US airline market is fostering speculation about the exact results that American, Delta and United hope to achieve by introducing new tiered pricing structures into the market place. On the surface, the pricing structures are tools for those airlines to compete more effectively with ULCCs in the market. But more strategically, new pricing segmentation provides the large three US global airlines an avenue to execute their revenue management more effectively, preventing pricing dilution of their more higher end offerings.
Even the rivals that American, Delta and United are targeting with their bare bones product offerings believe that ultimately their new pricing schemes could create pricing stability in the US market – which appears on a fragile path to recovery. The logic for that conclusion rests on the ability of the Big 3 for product upsales that drive up pricing for all fares in the market.
One challenge the large US airlines face in the expansion and roll out of their new tiered pricing structures is ensuring the correct product attributes are communicated correctly through distribution channels outside their respective websites. Proper execution is key in order for American, Delta and United to realise the billions in potential revenue that they believe exists from the overhaul of their pricing structures.