Will WestJet join Oneworld?

Old Jul 1, 08, 10:43 pm
  #1  
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Will WestJet join Oneworld?

I think this would be a great idea, considering all the best airlines are part of Oneworld. WestJet could still maintain all its domestic routes and codeshare with British Airways to Europe, Cathay Pacific and Japan Airlines to Asia, Qantas to Australia and American Airlines to the US... Anyone know any inside info or have any educated guesses on whether this may one day happen?
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Old Jul 2, 08, 8:22 pm
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They won't be joining Oneworld. They will be partnering with Oneworld airlines, though. BA and Cathay will probably be the first to be announced.
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Old Jul 2, 08, 8:36 pm
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Originally Posted by Hypnotize View Post
They won't be joining Oneworld. They will be partnering with Oneworld airlines, though. BA and Cathay will probably be the first to be announced.
Excellent! The two I was hoping for... Any idea when this may happen?
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Old Jul 3, 08, 11:26 am
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We keep getting told "soon". Over the past 7 months our reservation system was getting upgrades every other month and I believe we're fully capable now. China Airlines and Westjet have been interlining for 12-16 months now and they've been the test for us on the IT/people/facilities side of things. I think you'll see something announced by Q4, but that's just my opinion.
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Old Jul 4, 08, 10:30 am
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If I can get miles and (tier points) for flying westjet on my BA Exec card I will be moving my business to WS from AC like a flash!
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Old Jul 4, 08, 4:21 pm
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Is it possible that they will join an alliance and develop relationships with alternative partners... (ie. Sky Team plus BA)?

I still say it would be nice to see them piggyback the AS program!
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Old Jul 5, 08, 1:59 am
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One of these things is not like the other...one of these things just ain't the same...

American Airlines
British Airways
Cathay Pacific
Finnair
Iberia
JAL Japan Airlines
LAN
Malév Hungarian Airlines
Qantas
Royal Jordanian Airlines
Westjet

Sounds pretty cheap (not in the good way) when you put it in a list of this calibre. Maybe if we put "Royal" in front of it..."Royal Westjet Airlines"...

I think this would be great for Westjet - Qantas wouldn't have to fly their 747's up here from SFO anymore.
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Old Jul 5, 08, 2:23 am
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Originally Posted by YVR72 View Post
I think this would be great for Westjet - Qantas wouldn't have to fly their 747's up here from SFO anymore.

Qf have now stopped the seasonal YVR flights
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Old Jul 6, 08, 10:09 am
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Originally Posted by Hypnotize View Post
They won't be joining Oneworld. They will be partnering with Oneworld airlines, though. BA and Cathay will probably be the first to be announced.
It's been "announced" every other month for the past two years. Hardly a secret or surprise. But I agree WS will not become a ONEWORLD partner in the immediate future, though it will have reciprocal mileage collection with its various "soon to be announced" partner airlines. Joining an alliance has no real benefits for WS, and adds lots of costs...one of the reasons AerLingus dropped out.
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Old Jul 6, 08, 10:11 am
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Originally Posted by Shareholder View Post
It's been "announced" every other month for the past two years. Hardly a secret or surprise. But I agree WS will not become a ONEWORLD partner in the immediate future, though it will have reciprocal mileage collection with its various "soon to be announced" partner airlines. Joining an alliance has no real benefits for WS, and adds lots of costs...one of the reasons AerLingus dropped out.

More cost effective to run a FF program in-house or source it out?
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Old Jul 7, 08, 9:44 am
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Originally Posted by OnMedic View Post
More cost effective to run a FF program in-house or source it out?
That element doesn't really make any difference since WS pays the contractor's costs in any case, or its own inhouse costs. Contractor would likely have profit built in, though if currently operating other programs, would have some cost advantages having software and only incremental staffing needs to do a WS contract.

But the main cost is the money WS has to pay to other airlines to buy their miles/points when a WS program member flies on that carrier. Plus pay out the membership costs of being a part of a larger alliance, versus bilateral marketing agreement.
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Old Aug 21, 08, 7:31 pm
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Originally Posted by Hypnotize View Post
They won't be joining Oneworld. They will be partnering with Oneworld airlines, though. BA and Cathay will probably be the first to be announced.
It sounds like Westjet's a little too arrogant for the legacy carriers. Listen to Durfy's comments:

"The legacy guys seems rigid" Durfy complains. "They seem to have certian models with hard and fast rules about alliances with other airlines". Frequent flyer reciprocity and revenue spiltting are the biggest hang-ups..."
http://www.flightglobal.com/articles...ld-rookie.html

Waa, waa, waa. Just imagine, CX and BA don't want to play by WS's rules
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Old Aug 22, 08, 6:17 am
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I thought we were going to see WS join with Southwest and offer Rapid Rewards? That would preclude FF mileage reciprocity in OneWorld. Southwest is a better match anyway.
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Old Aug 22, 08, 12:03 pm
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Originally Posted by YXUFlyboy View Post
I thought we were going to see WS join with Southwest and offer Rapid Rewards? That would preclude FF mileage reciprocity in OneWorld. Southwest is a better match anyway.
WestJet will not be offering Rapid Rewards except in instances where a passenger books using the Southwest Codeshare on WestJet metal. The codeshares will only be on the transborder and not on the domestic network.

Read the whole article and then try to extrapolate the reasoning behind some of the statements.

Here's a few lines to rehash:

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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Old Aug 22, 08, 12:20 pm
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Standby for another "major" announcement soon.
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