WestJet will expand its reach into the massive U.S. market after signing an interline deal with American Airlines.
The deal comes after failed attempts with two other U.S. carriers and shortly after a code-share agreement was inked with Hong Kong-based Cathay Pacific.
Airline analyst Rick Erickson of RP Erickson and Associates told the Calgary Herald that the agreement is big news for Canada`s second-largest airline. "The U.S. market is very important to them. They want to increase the number of U.S. business destinations they fly to. . . . It is a long, slow process. This American deal will `big bang’ that."
Erickson says American Airlines` large proportion of business travel passengers will add substantially to WestJet’s bottom line.
Interline agreements allow one airline's passengers and baggage to transfer seamlessly onto connecting flights. WestJet hopes to expand the partnership into a full-fledged code-share agreement, similar to the one signed with Cathay earlier this month. With code-share agreements airlines are each allowed to sell tickets on the other under their own brand.
Hugh Dunleavy, WestJet's executive vice-president of planning and strategy, told the Herald that the deal is the first step in building a relationship with AA, which flies to 250 cities in 40 countries.
"We do see potential for significant continued growth of WestJet into the United States market," he said. "And we believe having a strong U.S. partner will help facilitate that.”
Initially, connections will take place at American's six existing Canadian gateways. By December the two airlines expect to add further opportunities.
WestJet also has interline agreements with Air France-KLM and China Airlines, and has signed a memorandum of understanding with British Airways. But the U.S. market – the world’s largest – is considered key to the airline`s future growth and success.
Erickson said a market such as Latin America will likely be part of future talks. "We have them partnered in Europe, partnered most recently in Asia and now, finally, their American partner," he said. "I think it's going to make abundant sense to both carriers to have this kind of arrangement in play.”
