December 6, 2017
Delta and WestJet to Form a Joint Venture

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Delta has been creating joint ventures like crazy this past year. It signed a joint venture with Virgin Atlantic and Air France/KLM over the summer and another one with Korean Air just a few weeks ago. It just announced another joint venture with Canadian based WestJet. The agreement is still subject to board and regulatory approval.

The WestJet joint venture will offer flyers across both airlines a wider route network, greater frequent flyer benefits, and shared airport facilities and amenities. The airlines can offer new nonstop flights, expanded code sharing, more convenient connections across their joint networks, and reciprocal frequent flyer benefits.

Joint Ventures have positive and negative sides to them. Frequent flyers enjoy reciprocal benefits across both airlines and can access a wider route network. Connecting flights to new destinations and smaller markets also becomes much easier. On the other hand, the airlines essentially stop competing with one another, which can lead to higher prices. What do you make of this joint venture?

Featured Image Courtesy of Delta