Neha Jain: http://canadaaviationnews.blogspot.com/m 5

Snowstorms, such as this one which hit Halifax on Feb. 9, contributed to a drop in Air Canada's load factor during the month.

WestJet has steadfastly refused to engage in the overselling practice; the same can't be said for American Airlines.

1. UPDATE 1-Air Canada flies lesser passengers in Feb
* Air Canada system load factor down 2.5 percentage points

* System traffic up 3.1 pct (Adds details)

(Reuters) - Canada's biggest airline Air Canada said passenger levels for February dipped, adding last year its planes were fuller due to the Vancouver Winter Olympics.

On Thursday, WestJet Airlines Ltd , the nation's No.2 airlines, said it flew more passengers in February.

Air Canada said load factor fell 2.5 percentage points to 75.9. System traffic rose 3.1 percent on a system-wide capacity increase of 7.1 percent, the company said.

"We experienced continued traffic increases in the key transborder and Pacific markets and overall traffic growth system-wide," Chief Executive Calin Rovinescu said.

Shares of Air Canada closed at C$2.83 on Friday on the Toronto Stock Exchange.

2. Air Canada load factor falls in February
Airline clears hurdle to offer service from Toronto Island
Air Canada's planes were 75.9 per cent full on average in February, a drop of 2.5 points from the same month a year earlier, Canada's largest airline reported late Friday.

The drop came as the airline increased capacity by 7.1 per cent, as it flew more flights to U.S. and international destinations, but overall traffic grew less, at 3.7 per cent.

"Comparisons to last year are challenging due to the impact of the Vancouver Winter Olympic Games in 2010," CEO Calin Rovinescu said in a release.

"I want to thank our employees for their ongoing hard work and dedication in safely transporting customers to their destinations, particularly given the challenging winter weather we have faced this year."

The airline also announced Friday it has reached a deal which will open the way for it to offer 15 flights a day between Toronto's island airport on the city's waterfront and Montreal beginning in May.

The agreement with City Centre Terminal Corp, which is owned by rival Porter Airlines Holding Corp., covers the terms for leasing terminal space and opens the way for Air Canada to sign an operating agreement with the Toronto Port Authority, which runs the airport.

On Thursday, Porter and WestJet reported load factor increases in February, compared with the same period in 2010.

WestJet said its planes flew 83.6 per cent full on average, a record February load factor, and Porter's was up by 4.1 points to 50.6 per cent.

3. Yedlin: WestJet's smiles suffer with American
WestJet Airlines, Canada's second largest airline, announced a code sharing arrangement with American Airlines this week.

This is an arrangement that makes much sense on one level, increasing traffic, but it doesn't on another.

These are two airlines with very different brands.

WestJet has a strong brand that it has worked very hard to develop. Its staff is known for its friendly, 'can-do' attitude and willingness to truly help passengers enjoy their flights. It's a difference WestJet management acknowledges but Hugh Dunleavy, executive vice-president of strategy and planning for the airline notes that they are not the first airline to code share with American, and that the practice of code sharing always presents a challenge on both sides.

"We are code sharing with Cathay Pacific. They offer first class, business class and economy class and we offer one class. That's something we have to manage," he said.

That said, Dunleavy also pointed out that WestJet has emphasized the importance of the guest experience in discussions with American.

In a perfect world, airlines would partner with other airlines offering the same service but it doesn't work that way. "We know there will always be differences but we try to get as close as we can," said Dunleavy.

The reality is American Airlines, from the passenger perspective, doesn't enjoy the same reputation as WestJet on many levels.

Here's one example. American Airlines has a habit of overbooking flights and then trying to get passengers to take vouchers in return for being bumped.

While one can understand that many airlines overbook flights in order to minimize the prospect of having an empty seat during peak business travel it's another thing entirely when they also do it - as American does - during holiday season.

When people have a fixed time for holidays, it's simply unconscionable.

This columnist bore witness to such a situation prior to catching a Dallas during the Christmas travel season a couple of years back. The gate agent kept trying to get people to take the voucher in return for getting off the plane but when it's holiday time, the number of passengers willing to take the offer is zero. The end result was an ugly yelling match between passengers and the gate agents, not to mention a number of people being inconvenienced - even though they had vouchers for future use.

WestJet, to its credit, has steadfastly refused to engage in the overselling practice. When the flight is full, that's it. No one is sold a ticket on false expectations that they are guaranteed to board - when it's anything but a sure thing. What happens, for example, to the WestJet passenger bumped from an over-booked American Airlines flight? What does it do the next time the passenger needs to travel?

That's one big difference between the two corporate philosophies.

Another is the type of aircraft American flies.

For the WestJet traveler, getting off one of the airline's relatively new Boeing 737-600, 737-700 or 737-800 and boarding an American plane is going to be a disappointing experience. Obviously, the opposite will be true for the American traveler linking up with a WestJet flight.

The bulk of the American fleet is comprised of old MD-80s. These don't offer in-flight entertainment, though some are offering Internet service. While these aircraft are in the process of being replaced with the 737-800 series, it'll be a while before the fleet turnover is complete.

WestJet management obviously recognizes the differences between the two companies but it still needs to increase traffic originating from the US into Canada and the reality is simple economics drive decisions.

WestJet has made it clear it wants to ink as many code share arrangements as possible in order to broaden its reach - without actually having to expand its route structure or take on new planes, not to mention deal with the time it would take to build traffic on those routes.

Last year it was Cathay Pacific, now it's American Airlines and it has also spoken with Emirates; this despite the cold war between Dubai and Ottawa over increased frequency. The goal of company chief executive officer, Greg Saretsky is to ink one deal per quarter with other airlines around the globe in order to expand its reach.

It's not unlike filling up one's dance card in days of yore

WestJet also wants to increase its value proposition by being able to offer Canadian business travelers access to more destinations that it doesn't fly to directly. With the initial destinations being Chicago and Boston, it's clear WestJet is looking to make a dent in the so-called 'golden horseshoe' routes between Toronto, Ottawa and Montreal. This follows on an initiative launched last month in eastern Canada that saw WestJet boost its flight frequency between the three cities during peak travel times.

The deal with American means a traveler from Calgary can seamlessly connect to Boston through Toronto with one check-in. And, because American Airlines is the world's fourth largest airline, as well as a member of the Oneworld alliance, one surmises its global reach could benefit WestJet.

4. 2nd UPDATE: WestJet, American Airlines In Codeshare Partnership

TORONTO (Dow Jones)--Canada's WestJet Airlines Ltd. (WJA.T) inked a codeshare deal with AMR Corp.'s (AMR) American Airlines in a move that enables both carriers to expand their cross-border reach.

Calgary-based WestJet said Monday the deal will give American Airlines' customers connecting service to up to 20 Canadian cities not currently served by American or its American Eagle affiliate. WestJet will initially place its code on American or American Eagle flights from Canada to Chicago and Boston, with expanded service throughout American Airlines' network expected ...

By
Neha Jain

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