Air Canada, United lean on Emirates to fill network white spots
By AARON KARP
North American Star Alliance members Air Canada and United Airlines say their new codeshare partnerships with Emirates Airline will give them access to a part of the world they could not otherwise serve, particularly with any network depth.
Air Canada and Emirates commenced codesharing late last year, while United is awaiting regulatory approval to begin codeshare flights with the Dubai-based carrier.
Air Canada VP-international affairs, network and partnerships Mary-Jane Lorette told Routes the Emirates partnership is a response to shifting immigration trends. She explained that “Canada is a multicultural country” with the share of European immigrants coming to Canada dropping as immigration from the Middle East, India and Asia rises.
Immigrants to Canada from “the Indian subcontinent region are growing to the tune of about 10% annually, so it's clear to us that immigration to Canada is going to continue to fuel international passenger demand,” Lorette said. “So where is this all taking us? You've got Dubai that's an established global hub, well positioned geographically within four hours of one-third of the world's population. Emirates offers vast network options and extensive connectivity, operating widebodies beyond Dubai into the Indian subcontinent.”
She added: “With these fast-growing markets fueled by immigration, it makes sense that we have these regions covered. There are some spots where we wouldn't be able to have capacity: Pakistan, Bangladesh, points in the Middle East. And so we are leaning on Emirates for regions that are underserved to tap into this growing immigration demand into Canada.”
United, which is part of an antitrust-immunized transatlantic joint venture (JV) with Air Canada and Lufthansa, similarly said it is partnering with Emirates to fill a network void the JV and Star Alliance cannot fill.
The United-Emirates codeshare deal “is very targeted,” United managing director-international network planning Matt Stevens told Routes. “With Emirates, we are very intentionally trying to highlight areas of opportunity where we really weren't effectively competing. We're not flying directly to that region and so we’re missing out on a lot of traffic.”
The Air Canada-United-Lufthansa JV “just didn't have coverage” in the Middle East and on beyond routes to the Indian subcontinent, he said.
Stevens explained that while United has no immediate plans for another outside-Star partnership, it is open to more such agreements if they give its passengers access to a more comprehensive network.
“We're taking a very intentional look at where we are across regions and if there is an opportunity and a place where we see a white spot, we're going to try to address it,” he said. “But I would say that, first and foremost, we're going to work with existing partners to see what can be done.”
