The Globe and Mail reports in its Wednesday edition that Porter Airlines and Transat AT are forming a joint venture aimed at boosting seat sales by using each other's networks as feeder lines. The Globe's Eric Atkins writes that the agreement builds on a cross-selling arrangement the two carriers began last year as the industry struggled to emerge from the pandemic. Executives at the airlines said in a joint interview that the arrangement, to be phased in next year, will allow the carriers to better co-ordinate schedules, offer more competitive fares and share revenues at a time of intense competition. Jobs and fleet sizes are expected to increase as the partnership drives growth, they said. The marketing alliance does not include any change in ownership nor any investment between the partners. Porter, with an extensive domestic and cross-border network, will feed into Transat's sun destination and transatlantic routes. "The feeder network strategy accelerates both airlines' expansion in their respective markets," said RBC analyst Walter Spracklin. "This allows Porter to enter into more markets through a hub and spoke model." He added that the joint venture will heighten competition, putting pressure on Air Canada.
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