DL and WS New Transborder Joint Venture

Old Jul 19, 18, 6:47 pm
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DL and WS New Transborder Joint Venture

Delta and WestJet to Create New Transborder Joint Venture - Jul 19, 2018

U.S./Canada joint venture to offer more choices for travel between the U.S. and Canada

ATLANTA and CALGARY, July 19, 2018 /CNW/ - Delta Air Lines (NYSEAL) and WestJet (TSX: WJA) have signed a definitive agreement to create a comprehensive transborder joint venture arrangement that will offer customers an extensive route network within the U.S. and Canada.



"Delta's future is global and together with WestJet, we can augment the two airlines' capabilities and bring together our strengths in this important trans-border market," said Ed Bastian, Delta's CEO. "Combined, we will be able to offer more destinations to customers with an integrated network, superior airline products, improved airport connections and significantly enhanced frequent flyer benefits. The JV will provide an unmatched passenger experience for customers travelling between the U.S. and Canada."

"WestJet continues its drive toward becoming a global airline, and the signing of this agreement marks a major milestone in that journey," said Ed Sims, WestJet President and CEO. "Working together with Delta, the premier U.S. carrier, we are looking forward to providing enhanced offerings and more choice for guests. The joint venture will allow us to maximize our existing partnership with Delta to benefit customers by bringing greater competition to the trans-border market."

The agreement deepens the existing codeshare partnership between the carriers and follows the signing of a memorandum of understanding in December 2017 announcing the intention to form a joint venture. The joint venture will provide substantial reach into Canada and the U.S. with transborder service to more than 30 cities covering over 95 per cent of U.S.-Canada demand, providing customers of both airlines with more travel choices than ever before. The new JV will also enable Delta and WestJet to compete more effectively against other carriers.

Upon receipt of regulatory approvals in Canada and the U.S., Delta and WestJet will work together to implement all aspects of the enhanced cooperation including expanded codesharing, more closely aligned frequent flyer program and reciprocal elite benefits, joint growth across their U.S./Canada transborder network, and co-location at key hubs with more seamless passenger and baggage transit. The agreement will also include the ability to cooperate on cargo accompanying passenger flights as well as corporate contracts.

Delta has a strong track record of partnering with airlines around the globe, in Europe, Latin America, Asia, Australia and now Canada. These joint ventures connect complementary networks, allowing the carriers to expand service options, add more convenient connections, and provide a more seamless customer experience than would otherwise have been possible.

As WestJet continues its global transformation, its airline partners connect the growing WestJet network to an extensive list of international destinations. WestJet has one of the youngest fleets in the airline industry and continues to provide award-winning guest experience, recently being named Canada's Best Airline by TripAdvisor and North America's Best Low-Cost Airline 2018 by Skytrax.

Further information about Delta Air Lines and WestJet is available at delta.com and westjet.com.

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Old Jul 19, 18, 6:53 pm
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I put a new thread cause the JV is now finalized.

If you TLR, the important points are:
- 30 city pairs covering 95% of the transborder market.
- enhanced FFP bennies to rollout later.
- Subject to gov't approval. the Canadians have all ready signaled their approval through the Transport Canada Modernization Act. So now Bastian and Sims have to dance with Americans.
- Co-location at key hubs to offer a seamless travel experience. I guess this means WS has modernized SabreSonic so that it can integrate with Deltamatic.
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Old Jul 19, 18, 8:39 pm
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Finally. WestJet flights actually earning MQMs could actually be a big game changer since I don't see WestJet reinventing its own program to match Delta's.

It will be interesting to see whether upgrades will be part of the FFP bennies because that's been the case so far for Aeromexico, Air France-KLM, and to a limited extent Virgin and Korean Air.
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Old Jul 20, 18, 8:49 am
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Does this mean (or even imply) that Skyteam membership is around the corner?
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Old Jul 20, 18, 9:17 am
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Originally Posted by Frequentlander View Post
Does this mean (or even imply) that Skyteam membership is around the corner?
It would only be likely if the existing codeshare agreements WestJet has with OneWorld and Star Alliance members could be maintained.
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Old Jul 20, 18, 12:09 pm
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Originally Posted by aerobod View Post
It would only be likely if the existing codeshare agreements WestJet has with OneWorld and Star Alliance members could be maintained.
That's useful information. I'm watching this closely because if WS were to join Skyteam, that would cause me to change my first choice of airlines for domestic travel.
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Old Jul 20, 18, 2:34 pm
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Originally Posted by Frequentlander View Post
Does this mean (or even imply) that Skyteam membership is around the corner?
It does not.

Virgin Atlantic, Virgin Australia, GOL never joined Skyteam despite extensive Delta meddling.
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Old Jul 20, 18, 4:43 pm
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Originally Posted by keitherson View Post
It does not.

Virgin Atlantic, Virgin Australia, GOL never joined Skyteam despite extensive Delta meddling.
OK, then I'll settle for an early morning YVR to ATL departure year round.
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Old Jul 20, 18, 6:50 pm
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Originally Posted by Frequentlander View Post
OK, then I'll settle for an early morning YVR to ATL departure year round.
I think they're much more likely to do a redeye to feed into Delta's flights, like they currently have right now.
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Old Jul 20, 18, 10:00 pm
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Originally Posted by keitherson View Post
I think they're much more likely to do a redeye to feed into Delta's flights, like they currently have right now.
I'm too old for that s**t
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Old Jul 21, 18, 6:35 pm
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I find YHZ is very undeserved in the trans border market.
YHZ-BOS (WS) year round
YHZ-LGA (DL) seems sporadic.... sometimes we get it, sometimes we don't.

Anyone think this new announcement could mean more trans border routes for YHZ?
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Old Jul 21, 18, 9:57 pm
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Originally Posted by pilotboy1985YYC View Post
I find YHZ is very undeserved in the trans border market.
YHZ-BOS (WS) year round
YHZ-LGA (DL) seems sporadic.... sometimes we get it, sometimes we don't.

Anyone think this new announcement could mean more trans border routes for YHZ?
The problem with YHZ is that these routes just don't seem to have worked, and I say that begrudgingly having lived there a few years and completely empathising with you.

YHZ has lost so much service, but carriers don't dump routes that are profitable, or at least more profitable than other alternatives with the aircraft and slots. Fares at YHZ are high, even by Canadian standards, but no one seemed keen to drop them to stimulate traffic (and though anecdotal, most trans-border flights I took out of YHZ were full at those high fares and still they've been cut). The loss of smaller equipment among the big US carriers' regionals definitely has to have been a big factor for a lot of lost service. [Also worth noting that the US carriers never did themselves any favours by seeming to cancel YHZ on a whim whenever the slightest bit of IRROPS surfaced (I took the added time through YYZ or YUL on a few occasions when I felt I just couldn't risk it, especially in winter).]

If DL can somehow overcome what hasn't worked in the past, that will be great, but I'd be cautious there; WS' operation isn't exactly massive in YHZ. They may get some feed traffic to routes in Atlantic Canada and a few low-yield tourists to WS' translantic flights, but I'd say it's still going to be a challenge. That said, it's bizarre to think that YHZ has so much less service than even just a few years ago even though the industry has had record profits; it was only 2014 or so when I remember several flights to PHL and UA had 3-4 daily to EWR. You'd hope someone could make something work, but costs are rising again and economics less stabile, so it'll be an uphill climb.
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Old Jul 24, 18, 11:56 am
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I am not sure about YVR since they already have seasonal Delta service but I can see YYC-ATL on a 737. YYC is at present WS's largest hub (it trades back and forth with YYZ), so from a connectivity perspective if it's feeder traffic YYC makes more sense than YVR. However, WS often launches split routes (4x YYC, 3x YVR or dual launches) of routes. From documentation I've seen, 50% of WS traffic thru YYC is now connecting.
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Old Jul 24, 18, 2:04 pm
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Originally Posted by YXUFlyboy View Post
I am not sure about YVR since they already have seasonal Delta service but I can see YYC-ATL on a 737. YYC is at present WS's largest hub (it trades back and forth with YYZ), so from a connectivity perspective if it's feeder traffic YYC makes more sense than YVR. However, WS often launches split routes (4x YYC, 3x YVR or dual launches) of routes. From documentation I've seen, 50% of WS traffic thru YYC is now connecting.
My main (only) interest in ATL service is to be able to connect to secondary and tertiary airports in the US SE. I'm not too interested in having to connect in YYC to connect again in ATL. Early morning YVR-ATL would get me to ATL in enough time to connect to (make your own joke) in the US SE....and I'm not remotely interested in depending on a red-eye to get me to work.
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Old Jul 24, 18, 2:41 pm
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Originally Posted by Frequentlander View Post
My main (only) interest in ATL service is to be able to connect to secondary and tertiary airports in the US SE. I'm not too interested in having to connect in YYC to connect again in ATL. Early morning YVR-ATL would get me to ATL in enough time to connect to (make your own joke) in the US SE....and I'm not remotely interested in depending on a red-eye to get me to work.
In winter you don't have many options from YVR. You either go thru YYZ or you go thru a US hub. If there's no YVR option for WS the question will be whether you prefer YVR-YYC-ATL or YVR-XXX-ATL, but either way you have to connect somewhere without a direct flight. In general I always prefer to connect trans-border through a U.S. airport so I can get the security and customs hassle done in YYC and I've not connected thru YYC but supposedly there is OSS, so perhaps it's not that painful.
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