Reading an interview with the president and CEO of WestJet, the (somewhat) regional low-cost carrier in Canada reminded me again that those who think frequent flyer programs have overstayed their need in the airline industry should at least acknowledge that WestJet Airlines, is not alone in debunking that myth. Sean Durfy, the WestJet head executive hinted that the airline would formally launch their new program in the second quarter of 2009. What’s interesting is that the airline will no longer award Air Miles miles when booking flights with the airline after Dec. 31, 2008. This certainly means that rather than renew an existing contract with Air Miles, the airline decided to go without any rewards incentive for at least three months while they scurry to complete the technology portion of their new program.
It’s been a while since Air Canada has had any real competition for the business traveler in Canada and with this program in hand, at least one of the top three differentiators of choosing one airline over another will likely be somewhat mitigated. I say “somewhat” because it is clear that the new WestJet program, no matter how rich, has a real challenge against the behemoth Aeroplan and of course their previous partner, Air Miles.
While long ago the subject of jokes in Canada, today’s WestJet with expanding service into the U.S. and flights to Mexico, just could be that niche of a airline with a valid frequent flyer program that can compete with the basic reward demands of the average business traveler.
Mr. Durfy did hint at alliances - and of course the method of how they will pay for their frequent flyer program - a loyalty credit card!
This will be an interesting watch, given the news in early 2008 that WestJet and Southwest Airlines are going to do some codesharing.