Tuesday | October 16, 2018
-(Calgary, Alberta) American-legacy carrier Delta and Canadian low-cost carrier WestJet have announced six new routes under their new joint-venture, which will promise at least a 20% growth in the market if approved. The carriers are quoted on the pact would open “new or expanded service on 20 non-stop routes.” This is projected to bring in a total revenue of around $241.0 Million USD. Delta and WestJet are both aiming to appeal to cross-markets in the U.S. and Canada with lower fares and increase connectivity. Delta and WestJet represent the second and fourth spots in the US-Canada market, respectively operating a combined 27% of all seats in the market combined. Air Canada led with 45.5% and United represents the third spot with 11%, as they have an “integrated relationship,” which is slightly more than a codeshare. United and Air Canada are reevaluating this and trying to find ways to strengthen it to compete with WestJet and Delta. Delta is expected to make increases in flights to Vancouver, Calgary, and Toronto, as WestJet will increase flights to Atlanta, Minneapolis/St. Paul, Seattle-Tacoma, Detroit, and Salt Lake City. Other key route expansions they are planning include Chicago-Toronto, New York-Toronto, Los Angeles-Toronto, and Los Angeles-Vancouver. WestJets ultra-low-cost carrier Swoop is going to be used as a “competitive tool” in this market. There is no definite timeline but it is not expected to happen in 2019.
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