Quote:
Originally Posted by Cage
WS badly needs to get into SkyTeam alliance and get a few frequencies handed to them. YYC-AMS on WS handed over from KL. AF 2nd frequency on YYZ-CDG over to WS.
To get into SkyTeam, WS will have to give up their long standing complaint against traditional prorates.
For the non network planning geeks, prorates are used to price out combined itineraries on a single ticket and price. So YVR-YYC on WS combined with the YYC-AMS on KL. Traditionally some form of distance has been used to calculate the revenue split. This heavily punishes the smaller sector. The idea is that equal partners will lose in their shorthaul network equal proportion.
WS enterred into agreements with either a fixed price or floor price scheme. The was because with no international transoceanic network, WS was always on the losing end of the prorates calculation. This is why some traditional European and Asian airlines went back to AC after trying things out with WS.
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Really, really interesting insights Cage. Good stuff here — that helps explain a lot about why WestJet is the way they are. Thanks!
What’s your gut feeling in WestJet’s current view on pro-rates?
It seems they absolutely would need to get over this issue if they’re to grow. And since they’re signalling more (compared to the current “zero”!) reciprocal benefits with partner airlines, that would seem to indicate more interlining, more code-sharing, and an impending alliance membership.
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