Southwest, ATA expand code-share pact: Travel Weekly

Southwest, ATA expand code-share pact

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DALLAS -- Southwest will begin selling some ATA-only flights through Southwests Web site and call centers under an amended code-share agreement the two carriers expect to implement in the first quarter of 2006.

For example, a customer visiting Southwest.com will be able to book an ATA seat on an ATA flight between Chicago (Midway) and New York (LaGuardia).

Under the current arrangement, the only ATA-related bookings done by Southwest are when a customer books a Southwest-coded seat on an ATA flight.

Southwest has never sold another airlines seats on its Web site before, but it will get some benefit other than boosting the revenue of its code-share partner. ATA will pay Southwest a commission for each booking, according to Southwest spokesman Ed Stewart.

The amended code-share agreement will also let Southwest customers use their Rapid Rewards credits for seats on some ATA flights and will let ATA grant Rapid Rewards credits to its customers.

The amendment is part of ATAs restructuring under bankruptcy, under which ATA has been cutting its scheduled service dramatically. ATA is pulling out of Indianapolis in January, and its Chicago operations have been scaled back so much it now only needs one Midway gate instead of eight (Southwest will get four of them, and three will go to the City of Chicago).

But ATA said it expects to maintain its schedule from Chicago to New York and Washingtons Reagan National, anticipating sales will increase when the services become bookable via Southwests distribution channels.

ATA also plans to increase its service to Hawaii and all but eliminate its already declining reliance on tour operators to sell some of those seats. ATA said it can do that, in part, because Southwest customers are connecting to ATAs Phoenix-Hawaii and Las Vegas-Hawaii flights via code-sharing, and by downsizing the service from 757 aircraft that can seat up to 247 people to 737s that seat 160 in a two-class configuration.

ATA also is expecting that Southwests sales support will increase the bookings on its Hawaii flights from Los Angeles and San Francisco, even though Southwest customers cannot connect to those routes.

ATAs new business plan, part of its effort to emerge from Chapter 11 by the end of February, calls for greater reliance on its military charter business.

Military charters historically have generated a third of ATAs revenue, but the airline projects it will account for 52% in 2006. ATA, however, said it expects the military charter percentage to decline after next year, as it rebuilds its scheduled service.

To contact reporter Andrew Compart, send e-mail to [email protected].

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