Porter, Air Transat launch joint venture to gird against domestic competition

Porter Airlines and Air Transat have announced a joint venture, as the two carriers look to expand their range of destinations, tap each other's markets and gear up for a battle with Canada's biggest carrier. For Toronto-based Porter, the deal will open the gate to Europe and the sunny southern getaways currently being served by Air Transat. Meanwhile, the Montreal-based airline, which largely operates tour package trips, can benefit from access to Porter's rapidly growing network in Canada and the United States. Announced Tuesday, the “alliance” allows the carriers to co-ordinate pricing and schedules along with revenue sharing, and builds on a year-old code-share agreement, which enables airlines to sell one another's flights to their own customers. Air Transat said the prior arrangement increased its traveller tally by 60,000 this year. The deal also comes as competition ramps up on major domestic routes and sun destination flights, even amid uncertain travel demand. By the end of next year, Flair Airlines aims to increase its fleet to 26 planes from 21, and Lynx Air to 17 aircraft from its current nine. Porter Airlines plans to grow its fleet to 79 by 2025 from 46 currently. “Porter is in the midst of disrupting the North American market through a significant continental expansion that will only be amplified by this alliance,” CEO Michael Deluce said. Annick Guerard, CE of Transat A.T., which owns Air Transat, said the joint venture will shore up its transatlantic presence “by allowing us to leverage the domestic market served by Porter.” “We will be able to better connect our schedules to facilitate stopovers for passengers,” Guerard added in an interview. “That's not something we could do with the code-share agreement. The price will be more competitive, too.”<br/>