WestJet turns towards American market

WestJet, Canada’s second largest airline, has decided to expand its presence in the United States, putting it in direct competition with its largest rival, Air Canada, as well as a small handful of American legacy carriers. Yet WestJet is not doing this on its own. Earlier today it announced the formation of a new partnership with Southwest, the largest discount carrier in the US.

According to the terms of the agreement, WestJet will be permitted to sell seats on Southwest flights, and the Canadian airline’s new US partner would be given the same privileges. Sean Durfy, WestJet’s chief executive officer, referred to this strategic alliance as “a great marriage.” Durfy is also aware that this partnership represents a very significant opportunity for WestJet, as Southwest is a much larger airline, offering a staggering 3,400 flights per day within the US.

Although Air Canada is still dominant when it comes to trans-border (Canada/US) flights—as it continues to control 50 percent of the market—WestJet is looking to give the flag carrier a run for its money. If everything goes according to plan, WestJet expects to take a 25 percent stake in this market, thus turning into a major player.

WestJet and Southwest expect to have the code-sharing system in place no later than in the second half of 2009.

www.westjet.com