A landmark codeshare deal between low cost carriers Southwest Airlines and WestJet is being delayed as Southwest aims to focus on near-term revenue opportunities.
The two carriers tabled the deal in 2008, and were targeting the introduction of a full-fledged codeshare in late 2009 or early 2010.
Earlier this year Southwest introduced what it deems as a "pre-codeshare distribution" scheme with both WestJet and its other prospective codeshare partner Mexican carrier Volaris that links to the two carrier's websites.
But today Southwest executive vice president strategy and planning Bob Jordan said: "In response to the current economic environment, Southwest is focusing its immediate attention on several critical objectives, including increasing our revenues."
Jordan stresses Southwest is still committed to the WestJet codeshare agreement, and "will do all we can to minimize the impact on our previously stated codeshare plans".
In a recent interview with ATI Southwest management explained an opportunity to drive significant revenue was not the driving force in its decision to forge codeshare deals with WestJet and Volaris.
While Southwest's previous codehshare with defunct ATA Airlines generated a high of $50 million annually carrier senior director of planning and distribution Richard Sweet said the "Canadian opportunity isn't as great". The decision to partner with WestJet was driven more by having a "partner that thought like us".
WestJet has expressed its support for Southwest's decision through a formal statement issued earlier today declaring its understanding of Southwest's decision. "Both airlines remain committed to minimizing delays and are focused on generating revenue as quickly as possible," says the carrier.
Source: Air Transport Intelligence news