Quote:
Originally Posted by MalcolmTucker
I wonder whether business class profits be enough to entice WestJet into wide body service to Europe? It might make sense to run a full joint venture between WestJet and Icelandair to allow WestJet to continue building up its domestic operations without further distractions. It would also own all the passenger data, and could decide if and when to introduce direct flights with existing customer already having experience booking European travel via WestJet.
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The proper term for your idea is outbound codeshare whereby WestJet would put their code onto another companies flights. Currently Westjet is only conducting outbound codeshare with American Airlines. All other codeshare operations are inbound only codeshare.
Although my discussions are a few years old, my understanding from Westjet marketing people is that WS is not at all interested in outbound codeshare. Primary problem with outbound codeshare (particularly overseas) is the pro rate formula for determining the ticket split to revenue for both participants. For example $1000 base fare (exclude taxes and fees but include fuel surcharges) codeshare operation involves 500 mile on WS and 5000 mile on BA. BA gets $900 and WS only sees $100 although base fare on the WS sector as O&D pax is $160. With inbound codeshare BA is willing to increase WS prorate terms to compensate WS for the $60 revenue loss because BA needs the Canadian feed to survive.
As to the WS/FI joint venture idea, the double connection issue (connect in both YEG and KEF) would distort the operational results infavour of low yield pax. Most business travellers (and their travel agents) will not entertain 2 connection flights unless absolutely necessary. Its the double connection that also pushes away a lot of Edmonton flyers from using YYC, YVR, and YYZ; similar results could be expected from asking other flyers to double connect through YEG and KEF.