Air Transat and Porter have just announced plans to launch a joint venture, which sure has some interesting implications for Canadian aviation…
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Air Transat & Porter plan close partnership
In October 2022, Air Transat and Porter launched a codeshare agreement. The airlines now plan to take that cooperation to the next level, and want to launch a joint venture. The airlines claim that this will transform the current Canadian aviation landscape, by combining both airlines’ complementary networks.
For those not familiar with the two airlines:
- Air Transat is a Canadian leisure airline operating a fleet of 36 Airbus A320 and Airbus A330-family aircraft, with flights across the Atlantic and within the Americas
- Porter is a Canadian regional airline operating a fleet of 52 De Havilland Dash 8 Q400 and Embraer E195-E2 aircraft, exclusively within Canada and to the United States
So, what’s the intent of this alliance? According to the airlines, the goal is to expand service between North, Central, and South America, Europe, North Africa, Mexico, and the Caribbean, by integrating the complementary networks of Air Transat and Porter at both Toronto Pearson (YYZ) and Montreal Trudeau (YUL).
The goal is essentially to have a feeder network strategy, which will allow both airlines to expand in their respective markets — domestic and transborder short haul flights for Porter, and international medium and long haul flights for Air Transat.
With a joint venture, the two airlines would be able to coordinate their schedules and routes, to optimize connections. The goal is for this joint venture to be implemented throughout 2024.
Here’s how Annick Guérard, CEO of Air Transat, describes this partnership:
This historic agreement constitutes a significant step forward in executing Transat’s strategic plan and an important milestone in developing a more sustainable competitive network. We are delighted to further extend our collaboration with Porter, a partner that shares our customer-centric approach and values. Through this Alliance, we will accelerate the expansion of our transatlantic footprint by allowing us to leverage the domestic market served by Porter, while allowing for a more efficient use of our fleet.”
Meanwhile here’s how Michael Deluce, CEO of Porter, describes this partnership:
“Porter is in the midst of disrupting the North American market through a significant continental expansion that will only be amplified by this Alliance. The flow of passengers on both carriers means that Porter will be able to develop a more robust network by increasing flight frequency on key domestic and transborder routes, and entering into new markets with less point-to-point traffic. As we continue receiving deliveries of up to 100 new Embraer E195-E2 aircraft, our options for deploying this fleet are even greater based on this collaboration with Air Transat.”
My take on this expanded Air Transat & Porter partnership
Canada is an incredibly challenging aviation market, and the country has a lot of airlines. Canada is a huge country (marginally larger than the United States in terms of land mass) with only 40 million people. The country is highly seasonal, and the population is heavily concentrated in several major cities (roughly 13 million people live in the greater Toronto, Montreal, and Vancouver areas).
Despite that, Canada has an ever-growing number of airlines, serving virtually all market segments. We’ve seen a lot of attempted consolidation in Canada, but with mixed results. In 2019, it was announced that Air Canada intended to acquire Air Transat, though that ended up being called off, after the two airlines had issues with getting regulatory approval for the deal.
What’s my take on Air Transat and Porter trying to cooperate this closely? While their route networks are complementary, their business models are very different. Air Transat is an airline that competes on price and is pretty no frills, while Porter is an airline that offers free Wi-Fi, free drinks and snacks, etc.
If you ask me, this partnership isn’t exactly the perfect match in terms of business models. However, I suspect the airlines view it as better than nothing, since there’s value in partnering in order to fill seats, given the amount of competition there is.
I have to imagine that we’re going to see some more major changes in Canadian aviation in the next couple of years, as there are just so many players in the market…
Bottom line
Air Transat and Porter have announced plans to form a joint venture. The intent is that Porter will provide short haul feed for Air Transat’s long haul flights out of Toronto and Montreal. While the two airlines have complementary networks, they otherwise have very different business models.
This doesn’t seem like the perfect partnership in terms of how the airlines position themselves, though I guess it’s better than nothing, as the Canadian aviation market just keeps getting more and more competitive.
What do you make of this Air Transat & Porter joint venture?
AirTransat is a great airline, great inflight service and mostly on time! Since I don't like to fly on small planes, Porter is of no interest to me.
Booked last year out of Halifax to Punta Cana with Air Transat partner flight Porter out of Halifax to Connect in Toronto.They canceled both and the flights were listed for sale for same flights individually! I like Air Transat however they lost 2 Guests.
Porter seems pretty determined to turn into a LCC lately so at this point Air Transat would fit them like a glove. Air Transat will be the new medium haul, long haul, and snowbird arm of Porter and vice versa. Maybe they could have airside bus transfers between YTZ and YYZ or something to make the connections seamless.
First of all Porter has the worst customer service on par with many of the other Canadian airlines. They have no qualms of stranding you in another city and canceling the last flight due to a light load. They promise hotel reimbursement then reneg, and list the cancellation as mechanical to try and avoid paying. Transit is a leasure/lcc. This JV is pretty meaningless to most travelers. Both offer limited fleets with limited flights on...
First of all Porter has the worst customer service on par with many of the other Canadian airlines. They have no qualms of stranding you in another city and canceling the last flight due to a light load. They promise hotel reimbursement then reneg, and list the cancellation as mechanical to try and avoid paying. Transit is a leasure/lcc. This JV is pretty meaningless to most travelers. Both offer limited fleets with limited flights on the international, and both have poor reputations if you are caught in an irop. In the race to the bottom of the customer service ladder in Canada, Porter in my experience actually beats AC and WS.
Gee, maybe we'll get some more flights out of Halifax. Last year WestJet flew nonstop to Europe from Halifax. (I flew them roundtrip to Paris. Service was minimal and unprofessional. And there was no Business Class. But hey, I didn't have to fly two hours west to Toronto or Montreal, sit for several hours and then fly east again.) This year WestJet announced they would not be flying to Europe from Nova Scotia, and in...
Gee, maybe we'll get some more flights out of Halifax. Last year WestJet flew nonstop to Europe from Halifax. (I flew them roundtrip to Paris. Service was minimal and unprofessional. And there was no Business Class. But hey, I didn't have to fly two hours west to Toronto or Montreal, sit for several hours and then fly east again.) This year WestJet announced they would not be flying to Europe from Nova Scotia, and in fact, were basically pulling-out of Halifax to focus on the western half of Canada. So any increase of service by Porter, with connections to Air Transat's international flights would be very welcome here!
Canada's population surpassed 40 million last year, and continues to grow at one of the fastest rates in the developed world.
Unfortunately Canada is attracting the wrong immigrants, it's no more the country I was proud to call home.
While Air Transat may not be perceived as premium by some of the American markets it hopes to tap into with Porter, the average Canadian economy flyer generally has a positive perception of the brand compared to Sunwing, Flair, or the late Swoop and Rouge. Most fares include a checked bag & the economy experience is comparable to WS/AC.
Absolute CRAP! When I try to get to Montreal (RESTAURANT SCENE) I PAY A FORTUNE because of how bad the market in Canada is with NO COMPETITION. SO NOW THE AIRLINES GANGING UP ON PEOPLE????? WHAT A JOKE
9-abreast A330s though. At the same time their A321LRs are golden. Their Club Class is a steal.
I thought Porter was focused on connecting Toronto with US business markets
Porter is now flying from Toronto to Tampa, Orlando, Fort Myers and Fort Lauderdale. The new Embraers have a range of over 4,000 kms
This is the best lemonade they could make. When Porter gets permission to use jets at YTZ, or when they join an alliance, or when they develop a meaningful loyalty program or when they implement premium cabins they'll have a shot at greatness. They've already built public affection for the brand, but only among civilians. Anyone into loyalty points ignores them. As for Transat, they're very set in their ways. They're a basic leisure airline...
This is the best lemonade they could make. When Porter gets permission to use jets at YTZ, or when they join an alliance, or when they develop a meaningful loyalty program or when they implement premium cabins they'll have a shot at greatness. They've already built public affection for the brand, but only among civilians. Anyone into loyalty points ignores them. As for Transat, they're very set in their ways. They're a basic leisure airline with lots of planes, established markets and practices, unlikely to make big changes, even for survival. Transat is big and boring. Porter is interesting but frustrating. Meanwhile Canada has only one airline in any alliance, which is absurd for the size of its aviation market. If Porter had permission for jets at Toronto Island YTZ when they first asked, a decade ago, they might be in oneworld by now, although I'm not sure they see the value in that. Seriously their slogan right now is "actually enjoy economy". Sigh
Meanwhile Canada has only one airline in any alliance, which is absurd for the size of its aviation market.
Is it though?
The entire country has a smaller population than just the state of California, and similar levels of air service; but only one full-service nationwide carrier.
WS isn't just a LoCo anymore, but also hasn't gone all-in on longhaul connection service; nor shown any interest in joining SkyTeam despite being partners with DL...
Meanwhile Canada has only one airline in any alliance, which is absurd for the size of its aviation market.
Is it though?
The entire country has a smaller population than just the state of California, and similar levels of air service; but only one full-service nationwide carrier.
WS isn't just a LoCo anymore, but also hasn't gone all-in on longhaul connection service; nor shown any interest in joining SkyTeam despite being partners with DL for 13yrs and AF for nearly 7.
What else is there?
West Jet's problem is that it doesn't know what it wants to be. On one hand they want to preserve their low cost routes but on the other they are trying to show that they are a global airline now. The end result is that when you fly with them you feel like you are paying major carrier prices but getting a low cost carrier experience.
It's a shame because when they decide to...
West Jet's problem is that it doesn't know what it wants to be. On one hand they want to preserve their low cost routes but on the other they are trying to show that they are a global airline now. The end result is that when you fly with them you feel like you are paying major carrier prices but getting a low cost carrier experience.
It's a shame because when they decide to make the investments you can see that if they wanted to they could give AC a run for its money. Their flagship Elevation Lounge in YYC is excellent and in my opinion is the best lounge in Canada right now. They just seem timid to make the full leap from ex-LCC to major airline.
Or they're right not to. It's not in Westjet's DNA to be a full-service carrier, in an alliance, with aspirational redemptions in premium classes. On reflection, I think CondordeBoy's challenge to me, above, is right. Canada is a backwater of bargainhunters. Airlines have plenty of data to support the decisions they make, including not offering First Class to Canadians. CX and JL offer F in ORD but not in YYZ, despite Toronto being a bigger,...
Or they're right not to. It's not in Westjet's DNA to be a full-service carrier, in an alliance, with aspirational redemptions in premium classes. On reflection, I think CondordeBoy's challenge to me, above, is right. Canada is a backwater of bargainhunters. Airlines have plenty of data to support the decisions they make, including not offering First Class to Canadians. CX and JL offer F in ORD but not in YYZ, despite Toronto being a bigger, richer population area than Chicago. Why? Because oneworld. Because AA. Sterile Transit would fix this. AAFAIK in North America, only YVR has it.
Sterile Transit would fix this. AAFAIK in North America, only YVR has it.
PTY has international-to-international sterile transit.
Haven't been in a while, but used it quite a bit for LAX to Colombia, pre-Covid.
WS problem though is that they indicate that they want to become a full service airline though they never make the full leap. It goes back to my point that they want to be all things to all people and it comes across as them lacking a specific direction. They need to pick one and stick with it, which they aren't doing now.
Actually Chicago has a higher concentration of wealth than Toronto which...
WS problem though is that they indicate that they want to become a full service airline though they never make the full leap. It goes back to my point that they want to be all things to all people and it comes across as them lacking a specific direction. They need to pick one and stick with it, which they aren't doing now.
Actually Chicago has a higher concentration of wealth than Toronto which explains why airlines prioritize offering F there. There isn't enough of a market in Toronto.
https://www.wealthprofessional.ca/news/industry-news/toronto-among-global-cities-with-the-most-millionaires/369798
If sterile transit were ever to become a thing Toronto might (emphasis on the word "might") make sense for the Star Alliance airlines that offer F. Being an AC hub you could have people connecting off AC flights onto F flights with one of their partners. This is unlikely to happen any time soon so it boils down to the market for F, which is smaller in YYZ than it is in ORD.
Canada is a very large country with major population centers spread across. It's difficult to run an airline in such conditions profitable.
Fares are higher compared to the USA, due to low population spread over a large territory.