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He sees better and more profitable ways to attract business traffic. One is for WestJet to launch its own loyalty plan, which it will do next year when its current contract expires with Air Miles. Air Miles is a multi-party .programme in which WestJet has been one of many retail sponsors and reward partners. Durfy says Air Miles is fine for what it is, but it does not offer WestJet the same flexibility as a programme of its own. "There's some neat stuff you can do if you have control of your own loyalty programme," he says. For instance, he wants a plan that can stimulate travel during slow periods by offering extra points. "We've already done lots of research," he says, adding WestJet's programme will take effect in the first or second quarter of 2009.

A new computer reservation system may be the biggest challenge WestJet faces next year. Launching a loyalty plan is not as dependent as some aspects of multi-fare pricing on a new system, but Durfy sees a next-generation computer system as the key to other strategic goals - particularly interlining with other airlines.

Last year WestJet wrote off its abortive effort to develop and implement a tailor-made AiRes system, and it is committed through this year to Navitaire's upgraded Open Skies. One programme under consideration is the New Skies product that Navitaire will also offer. Durfy predicts WestJet will pick a new system "very soon", and he cautiously hopes to switch over by no later than the third .quarter of next year. Whatever WestJet chooses, he insists, it will not be a .special-built programme. After being burned by the AiRes experience, WestJet will stick with off-the-shelf models. Navitaire's upgraded Open Skies system already allows WestJet to .interface somewhat with the computer .systems of other airlines. "It works for inbound codeshares, but not for outbound," says Durfy. A new system may address this problem, but it will not solve other interline issues that annoy Durfy.

WestJet has talked with a number of foreign carriers, especially oneworld members, that would prefer traffic feed to and from a .Canadian airline other than Star Alliance member Air Canada. WestJet would seem the logical option, but the only overseas carrier so far to interline with WestJet is Taiwan's China Airlines. "The legacy guys seem rigid," Durfy complains. "They seem to have certain models with hard and fast rules about alliances with other airlines." Frequent flyer reciprocity and revenue splitting are the biggest hang-ups, he says. "They seem to be most concerned about who's getting the upper hand."

By contrast, Durfy is enthusiastic about WestJet's memorandum of understanding to form a codeshare alliance next year with Southwest Airlines. The transborder market is worth $4 billion, Durfy says, and the link to Southwest is a key element in WestJet's plan to boost its share of this market. WestJet will operate all transborder flights under this agreement, but will carry Southwest .passengers north-south and feed its own .passengers into Southwest's extensive US .system. In addition to traffic feed and joint marketing, both airlines foresee cost savings through joint purchases and services. "We're spending a lot of time and effort making sure that the Southwest relationship, operational structure, and so forth is working and ready to go by the end of 2009," Durfy says.

Aggressive growth when others are pulling back, multi-fare pricing, a standalone loyalty plan, a computer reservation system designed for full interlining, and an alliance-in-progress with the largest US domestic carrier - these are not the attributes of a timid or traditional low-cost carrier. At a time when the industry is in crisis mode, these represent bold moves. They also prompt the question of what a rookie chief executive will be plotting by the time of his second anniversary.

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