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Ahead of its return to Canada next month, Virgin Atlantic is laying the groundwork with a new commercial agreement.
Earlier this week, the British carrier announced an enhanced partnership with Calgary-based WestJet. The codeshare deal will start on March 30 to coincide with the launch of Virgin’s new London to Toronto route.
A codeshare allows airlines to sell seats on a flight operated by the other with each company using their own flight number. For passengers, it means a more streamlined journey with single-ticket itineraries and more efficient baggage handling. For airlines, it broadens the pool of potential customers and should boost sales.
A Bigger Prize on the Horizon?
While the deal is an important step towards making Virgin’s new route a commercial success, there’s an even bigger prize in the airline’s sights. In a media release issued on Monday, India was mentioned on four separate occasions. No other countries – aside from Canada and the United Kingdom – were directly referenced. So what’s going on?
Canada’s large Indian diaspora is a key factor. According to India’s Ministry of External Affairs, there are almost 1.7 million “overseas Indians” in Canada. India is Canada’s top source country for permanent residents, accounting for around a quarter of overall admissions in recent years. It is also a top source country for temporary foreign workers and international students.
New Permanent Residents In Canada (2023)Origin CountryNew Permanent ResidentsIndia139,775China31,780Philippines26,955Afghanistan20,180Nigeria17,455Pakistan11,860Cameroon11,685Iran10,680Eritrea10,675United States10,640Source: Immigration, Refugees and Citizenship Canada
The growing Indian population in Canada fuels demand for business and leisure travel between the two countries. Air Canada and Air India serve Delhi nonstop from Toronto, however, there are no year-round nonstop flights to Mumbai.
Indian routes from other Canadian cities typically make a tech stop in London, adding to overall journey times. Connecting options via the Middle East are limited compared to those from European or U.S. cities.
With all of this in mind, Virgin is hoping that it can tap its existing Indian network to funnel WestJet passengers through Toronto and Heathrow.
The Branson-backed carrier has been serving India for almost 25 years and flies to Delhi, Mumbai, and the southern city of Bengaluru from London. Its five daily flights offer more than a million seats to and from India annually, which Virgin calls “a key strategic market.”
Juha Jarvinen, Chief Commercial Officer at Virgin Atlantic recently described India as “a huge opportunity” for the airline, adding that the company is “anticipating a huge growth in demand for international travel from the region.”
Based on current schedules, the Indian Subcontinent is Virgin Atlantic’s third-largest overseas market.
Regulatory Hurdles Remain
The agreement brings new options for 13 Canadian cities to and from London Heathrow via Toronto. The two carriers will be based at Terminal 3 at Toronto Pearson International Airport to improve transit times. Virgin is also partnering with stakeholders including the Greater Toronto Airports Authority and Canada Border Services Agency, “to support customer connections onwards via eligible cities.”
Unfortunately for Virgin Atlantic, this week’s WestJet deal doesn’t (yet) extend to Indian flights. Describing the agreement as a “first phase,” the British carrier confirmed to Skift that such itineraries are still pending regulatory approvals. A WestJet spokesperson also told Skift that work is continuing to secure the relevant permissions needed to add its code to other Virgin Atlantic services.
If – or when – realized, the rewards could be significant. For example, a passenger from Edmonton could fly on a WestJet aircraft to Toronto, before connecting to Virgin’s network to London and India.
In a statement, John Weatherill, Chief Commercial Officer at WestJet, hinted that further developments will follow, noting that the airlines “look forward to building closer ties in the months ahead, providing more options to connect Canada with the world.”
The deal marks the latest stage in a deepening partnership between the carriers. Notably, Virgin Atlantic lacks a member of its SkyTeam alliance in Canada. As a workaround, in recent years it has struck a series of agreements with WestJet.
The Canadian airline does not belong to any of the big three airline alliances, meaning it can make ad-hoc partnerships with a range of global carriers. These include big-name brands such as Delta, Cathay Pacific, Qantas, and Emirates. Loyalty partnership program benefits across both Virgin Atlantic Flying Club and WestJet Rewards are also expected to roll out before the end of 2025.
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