Monday, July 07, 2008

First Dallas then Dryden...Canada

Gary Kelly of Southwest has stated that the grandfather of LCCs will be announcing a codeshare with a yet-to-be-announced carrier to Canada. WestJet is the first carrier that comes to mind. The LCC business model is predicated on using low-fares to both entice new travelers and steal disloyal passengers from competitors. However, as those markets dry up (there are only so many origin and destination markets that can fill a 737 and still provide a financial return) those LCCs are forced to move into the territory of full-service carriers or find new markets. Southwest has had a presence at various primary airports, Denver and San Francisco, just to name a few, where the airline battled with more traditional carriers. However, it now appears as if international expansion is on the drawing board (click here). Southwest did have a codeshare in place with ATA to Hawaii, however that arrangement fell through with the carrier's demise. Now Canada is a market that Southwest is looking at. Asia and Europe are also mentioned, however a time frame is not given and at the rate that this industry develops it's hard to say how things will develop.

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