Southwest Airways will launch its first worldwide airline partnership subsequent month, and develop its brief record of worldwide “gateways” to Denver and Nashville, the airline introduced.
Baltimore had already been introduced as its first such gateway, which set the stage for Southwest to formally ink an interline settlement with Icelandair at a ceremony in close by Washington on Wednesday.
TPG was readily available as executives signed a pact cementing the tie-up between the 2 carriers, one that can finally permit Southwest loyalists to redeem Speedy Rewards factors on flights to Iceland, Europe and past.
The ceremony, held contained in the residence of Iceland’s ambassador to the U.S., marked what Southwest is framing as the primary tangible step in a collection of huge adjustments the Dallas-based service outlined final yr. That transformation will finally deliver the primary assigned and further legroom seats to Southwest’s Boeing 737s.
Up first, although, is that this joining-of-forces with Icelandair.
“Interline partnerships are quite common within the airline business. However it’s our first one, so it’s totally thrilling for us,” Southwest chief working officer Andrew Watterson mentioned moments earlier than the 2 carriers made their partnership official.
A softer launch to the partnership
As TPG reported in September, the Southwest-Icelandair tie-up can be extra restricted at first.
Beginning in February, vacationers will be capable of e book itineraries that includes seamless connections between the 2 carriers by way of Icelandair’s web site.
From the outset, the partnership will consider only one gateway on the U.S. facet: Southwest’s Baltimore/Washington Worldwide Thurgood Marshall Airport (BWI) base.
Every day Publication
Reward your inbox with the TPG Every day e-newsletter
Be a part of over 700,000 readers for breaking information, in-depth guides and unique offers from TPG’s consultants
Nonetheless, the carriers plan to quickly develop the setup to Denver Worldwide Airport (DEN) and Nashville Worldwide Airport (BNA), Southwest executives revealed Wednesday.
“We’ll proceed to do that in phases,” Ryan Inexperienced, Southwest’s government charged with overseeing the airline’s wholesale adjustments introduced final yr, advised TPG Wednesday.
Deeper ties start subsequent yr
Anticipate the 2 airways’ ties to develop in 2026, after Southwest launches assigned seats; the logistics of evolving its tech methods to facilitate a partnership in its open seating period — and once more after shifting to assigned seats — did not make sense, Inexperienced mentioned.
As soon as assigned seating is reside, although, Southwest plans to start promoting Icelandair seats by its reserving channels. At that time, prospects would be capable of e book flights to Keflavik Airport (KEF) and prime European locations by Southwest’s web site.
“We’ll add elements … like earn and [redeem] with Speedy Rewards, and loyalty,” Inexperienced added. “And we’ll simply form of proceed to layer on.”
Pomp and circumstance
The ceremonial launch of this partnership in D.C. was filled with pomp and circumstance.
Southwest and Icelandair leaders exchanged items. The Reykjavik-based service supplied up a chunk of molten rock from a freshly-formed lava discipline in Iceland. Southwest got here with an ornamental model of its signature emblem.
1 of 3
SEAN CUDAHY/THE POINTS GUY
Then, leaders from each carriers raised glasses for a toast (“Skál!”) of Brennivin, Iceland’s nationwide drink.
“This can be an exquisite partnership,” Svanhildur Hólm Valsdóttir, Iceland’s ambassador to the U.S., mentioned throughout the festivities.
Southwest vies for international attain
Southwest plans to announce at the very least one extra worldwide airline associate in 2025, executives reiterated Wednesday. Past that, the service hopes a rising record of companions will give Speedy Rewards members extra locations to choose from.
“We’re having conversations with each extra transatlantic carriers in addition to transpacific carriers,” Inexperienced acknowledged. “In the end, that is about giving prospects decisions, to develop the attain and breadth of the Southwest Airways model past the attain of the 737.”
In fact, not too way back, none of this is able to have been doable.
In recent times, the airline has poured money into modernizing its notoriously outdated technical infrastructure — investments meant to do the whole lot from stopping one other vacation 2022-esque meltdown to paving the way in which for adjustments like Southwest’s first redeye flights subsequent month. To not point out, in fact, permitting for Southwest to kick off its most international foray but — a as soon as hard-to-imagine tie-up with a global associate.
“It is a new functionality we’ve got. And that is what transformation is all about,” Watterson mentioned. “After which we are going to make use of this as a traditional course of enterprise, we’ll add extra gateways. A second associate. Third associate.”
Keep tuned …
Associated studying:
