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Air Transat and Porter Airlines are pushing forward with their new joint venture (JV) after gaining approval for the tie-up from Canadian regulators a few weeks ago.
The two carriers announced plans to broaden an existing codeshare into a JV late in 2023, which would largely entail Porter feeding into Air Transat’s long-haul service.
The Canadian Competition Bureau looked at the proposed tie-up and said, “no issue here,” Porter Chief Commercial Officer Edmond Eldebs told CAPA TV at the recent CAPA Airline Leader Americas Summit in Calgary.
As soon as Air Transat and Porter secured regulatory approval for the JV, the airlines embarked on coordinating their schedules, and now the partners are continuing the process at Montreal International and Toronto Pearson airports “in a much tighter manner,” Eldebs said.
In some cases, each partner is pricing the O&D (origin and destination) markets that are their strengths, Eldebs said. For Porter, that would be domestic Canada and U.S.; Air Transat is pricing the Canada to Europe markets. “So, we can do that pricing collaboration immediately,” Eldebs added.
At the time the airlines announced their intent to form a JV, the partners estimated that at the 10-year deal’s full potential, Porter’s connecting flights will account for 15-18% of Air Transat’s passenger traffic, based on assumed fleet growth at both airlines.
Porter also exercised options for 25 additional Embraer E195-E2s after the two carriers opted to deepen their relationship. Eldebs said the airline took delivery of an average of 2-3 aircraft per month in 2023, and aircraft are “coming in at different points” in 2024. Porter started this year with a fleet of 58 aircraft including its De Havilland Canada Dash 8-Q400 turboprops.
The airline’s fleet will grow to 74-75 aircraft by year-end, Eldebs said. Porter started this year with 29 E2s and “we’ll end the year with plus 16.”
E195-E2s have been Porter’s growth vehicle since the airline took its first delivery of the jet in late 2022. The airline has E195-E2 bases at Toronto Pearson, Ottawa, Montreal and Vancouver.
Eldebs said, “Ottawa has been a great success for us so far,” noting Porter has deployed considerable capacity from the airport into Western Canada.
In May, Porter is becoming the largest carrier in Ottawa measured by departures and passengers, surpassing Air Canada, Eldebs said. Data from CAPA for the week of May 13 show Porter had 219 departing frequencies from the airport, accounting for a roughly 40% share. Air Canada’s 206 departing frequencies represented a 37.5% share.
Eldebs described Ottawa as a “tremendously successful hub” for the airline.