WestJet and Southwest Airlines are delaying indefinitely the implementation of their codeshare agreement, proposed last summer and initially slated to go into effect by the end of this year.
Though the carriers did not specify a timeframe, a Southwest spokesperson said, "We don't anticipate delivery of the codeshare happening before the second half of 2010."
In a statement issued Monday, WestJet said Southwest led the decision to postpone the agreement's execution, noting the U.S.-based low-cost carrier "has decided to redirect a portion of its resources dedicated to the codeshare project towards other near-term revenue opportunities," given the severe economic downturn.
The carriers last year embarked on a plan to enact the codeshare arrangement by the end of 2009, seeking to coordinate other reciprocal arrangements, including ground handling, corporate account cultivation, frequent flyer programs and purchasing
(BTNonline, July 8, 2008).
"WestJet understands the decision made by Southwest," WestJet executive vice president of commercial distribution Hugh Dunleavy said in a statement. "Our continued U.S. expansion is a key strategy for our airline, but codesharing is only one element of this. Both airlines remain committed to minimizing delays and are focused on generating revenue as quickly as possible. We have already implemented our distribution agreement and are close to starting a cargo program with Southwest."
Southwest executive vice president of strategy and planning Bob Jordan said the carrier is reallocating resources to cultivate more immediate revenue-generating opportunities, though he stressed the carrier remains committed to a codeshare.
WestJet said it remains on track to launch its new SabreSonic reservations platform by the end of the year, which the carrier calls the key to enabling codesharing capabilities. With the Southwest deal delayed, WestJet said it "will transition resources to begin interline revenue generation with Air France and KLM." Those carriers in February signed a memorandum of understanding to launch a codeshare agreement later this year or early 2010.