Porter Airlines and Air Transat Launch Joint Venture

This week, Porter Airlines and Air Transat announced the creation of a joint venture, which builds upon the airlines’ pre-existing code-sharing agreement in place since October 2022. 

The airlines, neither of which currently belong to an alliance, claim that this move will transform the competitive landscape in Canada, by offering passengers enhanced travel options across multiple regions.

Porter Airlines and Air Transat Launch Joint Venture

On November 28, 2023, Porter Airlines and Air Transat announced an extension to their pre-existing code-sharing agreement, and the creation of a joint venture. 

Code-sharing agreements are arrangements through which two or more airlines market the same flight using their own flight number, even if the other carrier operates the flight. Travellers can also check in for both flights, and are protected in the event of a delay or cancellation.

For example, Porter Airlines might market an Air Transat flight from Montreal to Lisbon through the code-sharing agreement, and it could also sell a connecting flight from Toronto on the same booking.

On the other hand, a joint venture takes the partnership to another level, as the airlines co-ordinate flight schedules and pricing, and enter into a revenue-sharing agreement. 

For passengers, this means that there will be greater integration between Porter and Air Transat flights, who will use a “feeder” network strategy to leverage each airline’s networks. 

For example, a passenger might fly from Victoria to Toronto with Porter, before connecting onward to Marrakech with Air Transat. Such an itinerary would be bookable on a single ticket, and both airlines would benefit from the joint venture.

Air Transat is a leisure-focused airline based out of Montreal but also with a strong presence in Toronto, offering flights to Europe, Morocco, the Caribbean, Mexico, Central America, and South America.

Porter Airlines is a Toronto-based airline servicing a growing list of destinations across Canada and the United States, with future plans to expand as it takes delivery of new aircraft.

Through the joint venture, Porter and Air Transat aim to spur competition in the Canadian market, by offering travellers options to combine Porter’s growing domestic and transborder short- and medium-haul network, with Air Transat’s medium- and long-haul international leisure destinations.

The joint venture is set to be gradually implemented throughout 2024, and passengers can expect to see more options in the coming months.

New Options for Canadian Travellers

It’s very interesting to see Porter and Air Transat enhancing their pre-existing relationship by forming a joint venture. Porter and Air Transat have had an active codeshare agreement since October 2022, and this move suggests the two airlines are looking to collaborate on a longer-term basis.

For the last year or so, Porter Airlines has been on a tear with new route announcements, as it’s been taking delivery of Embraer E195-E2 aircraft. Whereas the airline previously only flew to destinations in Eastern Canada and the United States, it now offers flights across Canada, and to destinations including California and Florida, with more to come.

Some of its operations have also shifted to Toronto Pearson (YYZ), from which the new jets operate, and also to a few other Canadian airports, from which it offers direct flights to a handful of destinations.

Interestingly, Porter Airlines positions itself as a “premium” economy experience, as passengers are guaranteed free Wi-Fi and no middle seats on jets, and are served complimentary beer and wine in glassware. 

On the other hand, Air Transat isn’t exactly known as a premium airline, as it caters to leisure travellers, and offers a rather no-frills experience in exchange for preferable pricing when compared to some mainline carriers.

However, through an enhanced collaboration, Porter and Air Transat are offering travellers more options to choose from when planning a trip abroad.

In a market that doesn’t have nearly as many options to choose from as, say, the United States, hopefully the intention to spur competition will become a reality and result in more choice and lower fares for travellers.

Conclusion

Porter Airlines and Air Transat have extended their code-sharing agreement, and launched a joint venture.

With this development, the airlines will collaborate on flight schedules and revenue sharing, offering passengers easier connectivity with the airlines’ complementary networks.

The joint venture is expected to be gradually implemented throughout 2024.