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Old 07-08-2008, 10:11 AM   #1
mykalberta
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Default WestJet's partnering with Southwest.

http://cnrp.ccnmatthews.com/client/w...8&releaseSeq=0

http://ctv2.theglobeandmail.com/serv...N/ctv-business
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Old 07-08-2008, 10:16 AM   #2
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I have to say I am very surprised at the announcement. Given the two buisness models it doesnt seem to fit.

I would have bet any money on a OneWorld partnership.

I dont see how this really benefits Westjet with the exception of a very few number of airports (Phoenix, Las Vegas, Los Angeles, etc.) as Southwest doesnt serve the type of buisness airports that Westjet has inidicated they want.

The only way I see this really having any material beneifit for Westjet is if Southwest decides to use Westjet as their International Carrier to the carribean etc via the bilaterals 5th freedom (ie Calgary -> Phoenix -> South America). There by keeping Southwests costs low so not introducing International fligths with their own metal and crews and funneling all that to Westjet and having a profit sharing agreement.

Also, strange they made it official now, althought it might be to further entrench in the media's minds that the two respective carriers are the only ones relatively healthy in the buisness.
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Old 07-08-2008, 10:24 AM   #3
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It's just scuttlebutt, but OneWorld got tired of WJA's total inability to create a system that allowed them to integrate with their system. Apparently programming is too hard at WJA.
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Old 07-08-2008, 10:51 AM   #4
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Does this mean those horrible Westjet commercials will end for good?
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Old 07-08-2008, 10:59 AM   #5
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Maybe Airline on A&E will include some westjet footage?
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Old 07-08-2008, 11:19 AM   #6
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Quote:
Originally Posted by Shazam View Post
It's just scuttlebutt, but OneWorld got tired of WJA's total inability to create a system that allowed them to integrate with their system. Apparently programming is too hard at WJA.
I figured that's what the reservation issues were all about. Westjet not thinking the monetizing costs for Sabre were justified so tried to do a cheaper version.
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Old 07-08-2008, 12:58 PM   #7
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The codeshare wouldn't even start until late 2009. That's probably not enough time for the massively incompetent WJA IT folks to get it working.

Also, lost among all this hubub is that WJA's load factor went down. Smiles and jokes can't protect a company from macroeconomic factors.
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Old 07-08-2008, 03:27 PM   #8
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The codeshare wouldn't even start until late 2009. That's probably not enough time for the massively incompetent WJA IT folks to get it working.

Also, lost among all this hubub is that WJA's load factor went down. Smiles and jokes can't protect a company from macroeconomic factors.
As one of the "massively incompetent WJA IT folks", I'd like to thank you for the vote of confidence. Why the vitriol?

Don't let our decrease in load factor get lost in the fact our ASMs increased by 20% ... and thus, our RPMs still INCREASED even with 5 more planes. We're still profitable in a very tough time for airlines and that's something to be proud of.
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Old 07-08-2008, 03:55 PM   #9
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Quote:
Originally Posted by Shazam View Post
The codeshare wouldn't even start until late 2009. That's probably not enough time for the massively incompetent WJA IT folks to get it working.

Also, lost among all this hubub is that WJA's load factor went down. Smiles and jokes can't protect a company from macroeconomic factors.
I heard that particular job was outsourced. And if thats the case then good on WJ for getting out when costs started to skyrocket. Reminded me of an SAP article on CP a while ago about costs related to Waste Managements implementation.

Market wise WJA has very little to worry about compared to AC.

I am just surprised they partnered with the ugly sister when they were perfectly poised to exploit AA's union issues with 5th freedom flying. I will likely divest myself of 1/2 my current holdings. Keep the rest until I hear more of what this SWA arrangement is - my initial thinking is that it wont bring in the type of revenue the OW partnership would have.

If anyone has ever flown on an extended 3+ hour SWA flight and a WJA flight, they know there is a severe degrade in comfort from WJA to SWA.

The only thing that would save this deal for me would be if SWA used WJA as their ATA and had WJA fly 5th freedom flights via us ports.

Also, from someone who works in IT...

IT = hardware, backend (servers, email, networking etc), IS is programming so in fact it was the IS group who screwed up, not IT.
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Old 07-08-2008, 03:57 PM   #10
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Originally Posted by mykalberta View Post
I figured that's what the reservation issues were all about. Westjet not thinking the monetizing costs for Sabre were justified so tried to do a cheaper version.
Sabre is crappy, I like Westjet's current system much better.
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Old 07-08-2008, 04:10 PM   #11
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Originally Posted by r00t View Post
As one of the "massively incompetent WJA IT folks", I'd like to thank you for the vote of confidence. Why the vitriol?
What vitriol? I used to work at WJA back in 2002. They were looking at a system (custom made, off the shelf, whatever) back then. Fast forward SIX years later... Nothing, except for some HPCs making money.

Codesharing would be a HUGE boon for WJA. Yet, time and time again, nothing happens. God, the minute WJA codeshares for international flights, that would be the absolute end of AC.

Quote:
Don't let our decrease in load factor get lost in the fact our ASMs increased by 20% ... and thus, our RPMs still INCREASED even with 5 more planes. We're still profitable in a very tough time for airlines and that's something to be proud of.
Historically, WJA has been able to expand and keep load factor up.

Quote:
Also, from someone who works in IT...

IT = hardware, backend (servers, email, networking etc), IS is programming so in fact it was the IS group who screwed up, not IT.
Whatever. There is no real definition of what "IT" encompasses, and the ITAA's definition certainly includes software. And apparently "backend" has no software, right?
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Old 07-08-2008, 07:13 PM   #12
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Well, Southwest as the cheapest fuel contract in the industry, so if Westjet can benefit from that, this will be a big cost saver for them.
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Old 07-08-2008, 07:49 PM   #13
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Sabre is crappy, I like Westjet's current system much better.
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Old 07-08-2008, 08:19 PM   #14
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Originally Posted by mykalberta View Post
If anyone has ever flown on an extended 3+ hour SWA flight and a WJA flight, they know there is a severe degrade in comfort from WJA to SWA.
There is a downgrade in comfort from West Jet?

I did not think that was possible.
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Old 07-09-2008, 12:18 AM   #15
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There is a downgrade in comfort from West Jet?

I did not think that was possible.
Are you kidding me? If I take my average experience on several airlines still in operation, starting with the best, ending with the worst, it looks like this:

Lufthansa
Swiss
Westjet
Air Canada
KLM
Northwest
United
Czech Airlines
Delta
Sky Europe

By far the best North American carrier I've ever been on, although Air Canada has really made strides recently.
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Old 07-09-2008, 12:23 AM   #16
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Quote:
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There is a downgrade in comfort from West Jet?

I did not think that was possible.
Before Air Canada began to refurbish their entire fleet of aircrafts, there was absolutely no way I was going to fly with them... because thats partially due to how highly I thought of WestJet when it came to service and comfort after flying with them for the first time, and partly due to the service attitude of Air Canada employees on the ground and in the air.

Recently, Air Canada's fleet is getting better for comfort, but service could still use improvement.
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