Skift Take

Canada's Air Transat and Porter Airlines see themselves as stronger together under a planned new alliance.

It's not a merger, but Air Transat and Porter Airlines plan a new joint venture that would allow the Canadian companies to join forces to grab a larger marketshare.

The pact unveiled Tuesday would allow Porter and Transat to coordinate routes, schedules, and fares across their networks. In short, it would allow the airlines to essentially merge their respective operations without the cost or hassle of actually combining. And, as Porter and Transat see it, it would enable future expansion while offering travelers "significant benefits," including more flight options and easier connections.

Porter has orders for as many as 100 Embraer E195-E2s that it plans to fly on domestic Canada or U.S. routes.

Transat sees the tie up as a way to "accelerate the expansion of our transatlantic footprint," said CEO Annick Guérard. The carrier doubled down on its core airline business and moved away from being an integrated travel company in 2021.

Stronger Competitive Position in Canada

The tie up would also allow Porter and Transat to better compete with market leader Air Canada. The Star Alliance carrier dominates the Canadian market with a 41% share of domestic and international seats this year, Cirium Diio schedule data show. Air Ca