Delta and Westjet Scrap JV Plans
#1
Original Poster
Join Date: Dec 2016
Programs: Skymiles GM
Posts: 191
Delta and Westjet Scrap JV Plans
#2
FlyerTalk Evangelist
Join Date: Nov 2004
Location: 45° North
Programs: DL DM MM, HH Diamond
Posts: 10,196
Is WestJet about to go exclusive with Delta?
#3
Join Date: Jan 2013
Location: midwest
Programs: DL PM, Marriott Gold
Posts: 920
From Reuters
As to the DL press release, it'll be interesting to see how the Elite+ benefits translate. WIll there be a SkyTeam tie-up (i guess that depends on factors beyond Delta, though). I've been curious about WS's Prem Eco type product on the 763 to Europe. If it's priced right, and earns DL mqms I might consider it.
I had been seeing some airline analysis that had been questioning WestJet's mixed LCC/full serve strategy. I guess we see where they are trying to go. Not sure if this will have any impact on AC's Rouge strategy.
Canada's second-largest carrier said it intends to increase its number of aircraft to 96 by 2020 from 51 at the end of the third quarter, as the airline eyes both price-sensitive passengers and higher-paying customers.
WestJet, which competes against Air Canada, said it struck a preliminary agreement with Delta to coordinate schedules for new nonstop flights in the United States and Canada.
WestJet Chief Executive Gregg Saretsky said in a statement that the company will invest in initiatives that would support its transition from a "low-cost point-to-point model into a high value-based network airline with a global footprint."
WestJet, which competes against Air Canada, said it struck a preliminary agreement with Delta to coordinate schedules for new nonstop flights in the United States and Canada.
WestJet Chief Executive Gregg Saretsky said in a statement that the company will invest in initiatives that would support its transition from a "low-cost point-to-point model into a high value-based network airline with a global footprint."
I had been seeing some airline analysis that had been questioning WestJet's mixed LCC/full serve strategy. I guess we see where they are trying to go. Not sure if this will have any impact on AC's Rouge strategy.
#4
Join Date: Jan 2013
Location: midwest
Programs: DL PM, Marriott Gold
Posts: 920
Some additional discussion going on in this thread as well:
Is WestJet about to go exclusive with Delta?
Is WestJet about to go exclusive with Delta?
WS announced a closer relationship with AF and KL last week with full earn/burn and reciprocity with FlyingBlue.
#5
FlyerTalk Evangelist
Join Date: Jul 2003
Posts: 23,015
Doesn't have to be DL metal to earn MQM's/MQD's. Hawaiian and Great Lakes flights will also earn some MQM's/MQD's after Jan 1.
#6
Join Date: Aug 2000
Location: Flagler County, FL
Programs: Delta Skymiles, Marriott Bonvoy
Posts: 114
The US DoT has given tentative approval for the nearly three-year-old Delta / WestJet JV application.
Reuters Article here
Reuters Article here
#8
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,085
Hopefully this will result in WS becoming a preferred partner, SkyMiles benefits on WS, and DL improving the mileage earning rates to match their other JV partners like AM. WS could end up a good non-JV option for itineraries to LGW for DL fliers.
DL/WS together have to give up eight slot-pairs at LGA, and each slot given up must be matched with an existing WS slot within 30 min. Given that WS currently only flies LGA-YYZ, I don't think they will give up any slots, so DL is probably going to have to cut the eight worst-performing flights that match up.
The DOT did put some limits on who can get the slots -- it has to be new entrants or limited incumbents with less than five percent of LGA slots, and it has to be a blind auction where DL/WS does not know the buyer. I wonder if there might be room for PD to add LGA-YTZ; they currently only fly to EWR but New Yorkers have it in their head that LGA is the close airport. Otherwise, we will probably see WN/B6/F9/NK pick the slots up -- you can bet there is going to be some screaming on the DL end about the AA/B6 partnership if that happens.
I think that this is probably going to push AC/UA into a transborder JV.
DL/WS together have to give up eight slot-pairs at LGA, and each slot given up must be matched with an existing WS slot within 30 min. Given that WS currently only flies LGA-YYZ, I don't think they will give up any slots, so DL is probably going to have to cut the eight worst-performing flights that match up.
The DOT did put some limits on who can get the slots -- it has to be new entrants or limited incumbents with less than five percent of LGA slots, and it has to be a blind auction where DL/WS does not know the buyer. I wonder if there might be room for PD to add LGA-YTZ; they currently only fly to EWR but New Yorkers have it in their head that LGA is the close airport. Otherwise, we will probably see WN/B6/F9/NK pick the slots up -- you can bet there is going to be some screaming on the DL end about the AA/B6 partnership if that happens.
I think that this is probably going to push AC/UA into a transborder JV.
#9
Join Date: Jun 2011
Location: NYC
Programs: AA GLD, AC
Posts: 4,212
Anyway, as nice as it is to have this JV up and running, I remain devastated by WestJet's departure from YQB. LGA-YYZ-YQB was the one route I regularly flew with them, and now it seems to be either UA from EWR (shudder) or AC, with miles that don't do too much for me. DL in the past had a nonstop JFK-YQB service, but for years at least it's only been seasonal (summer and I think some years for a brief period in January during Carnaval). I doubt they'll reinstate that anytime soon given the current situation.
#10
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,085
LGA doesn't do customs/immigration screening, and there's no US preclearance at YTZ, so Porter quite simply can't fly that route. Well, not unless they want to pay to launch a preclearance facility at YTZ itself, and I'm pretty sure that's not part of their business model.
So it's not going to be PD. Among airlines currently at LGA, we are back to F9, B6, WN, and NK. Maybe SY is interested in running flights to MSP?
#11
Join Date: Jul 2003
Location: Atlanta
Posts: 5,173
I had forgotten about that. I believe YTZ wants pre-clearance and is negotiating with the Canadian government, but they have an issue of how to fund it.
So it's not going to be PD. Among airlines currently at LGA, we are back to F9, B6, WN, and NK. Maybe SY is interested in running flights to MSP?
So it's not going to be PD. Among airlines currently at LGA, we are back to F9, B6, WN, and NK. Maybe SY is interested in running flights to MSP?
#12
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,085
Basically, the US government said that all future pre-clearance facilities had to be funded by the country that they are in. Canada operates its airports using revenue from airport operations (I believe it actually makes a slight profit for the government), so the Canadian federal government is not necessarily going to foot the bill. The cost of pre-clearance could be passed on to travelers in a $25 per fare fee, but Billy Bishop does not want to be treated differently cost-wise than Pearson.
#13
Join Date: Jan 2008
Location: NYC, MSY
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Posts: 6,447
Hopefully this will result in WS becoming a preferred partner, SkyMiles benefits on WS, and DL improving the mileage earning rates to match their other JV partners like AM. WS could end up a good non-JV option for itineraries to LGW for DL fliers.
DL/WS together have to give up eight slot-pairs at LGA, and each slot given up must be matched with an existing WS slot within 30 min. Given that WS currently only flies LGA-YYZ, I don't think they will give up any slots, so DL is probably going to have to cut the eight worst-performing flights that match up.
The DOT did put some limits on who can get the slots -- it has to be new entrants or limited incumbents with less than five percent of LGA slots, and it has to be a blind auction where DL/WS does not know the buyer. I wonder if there might be room for PD to add LGA-YTZ; they currently only fly to EWR but New Yorkers have it in their head that LGA is the close airport. Otherwise, we will probably see WN/B6/F9/NK pick the slots up -- you can bet there is going to be some screaming on the DL end about the AA/B6 partnership if that happens.
I think that this is probably going to push AC/UA into a transborder JV.
DL/WS together have to give up eight slot-pairs at LGA, and each slot given up must be matched with an existing WS slot within 30 min. Given that WS currently only flies LGA-YYZ, I don't think they will give up any slots, so DL is probably going to have to cut the eight worst-performing flights that match up.
The DOT did put some limits on who can get the slots -- it has to be new entrants or limited incumbents with less than five percent of LGA slots, and it has to be a blind auction where DL/WS does not know the buyer. I wonder if there might be room for PD to add LGA-YTZ; they currently only fly to EWR but New Yorkers have it in their head that LGA is the close airport. Otherwise, we will probably see WN/B6/F9/NK pick the slots up -- you can bet there is going to be some screaming on the DL end about the AA/B6 partnership if that happens.
I think that this is probably going to push AC/UA into a transborder JV.
#14
Join Date: Nov 2009
Location: PHX
Programs: Delta 2M DM, Southwest A List and CP
Posts: 1,102
It will be interesting to see how DL award travel on DL/WS is going to develop... There used to be 25K R/T award tickets from the US to Canada on a DL/WS flight combination, but they have largely disappeared and are now WS only (flights involving DL tend to be a lot more expensive). DL award travel from the US to YHZ (involving WS) is totally non-existent, even though paid tickets can be purchased. A lot of room for improvement!
#15
Join Date: Jul 2003
Location: Atlanta
Posts: 5,173
It will be interesting to see how DL award travel on DL/WS is going to develop... There used to be 25K R/T award tickets from the US to Canada on a DL/WS flight combination, but they have largely disappeared and are now WS only (flights involving DL tend to be a lot more expensive). DL award travel from the US to YHZ (involving WS) is totally non-existent, even though paid tickets can be purchased. A lot of room for improvement!
Last edited by sydneyracquelle; Oct 25, 2020 at 3:24 pm