Southwest Airlines and ATA Code Share Q&A
General Code Share
Q. When does the code share agreement begin?
A. The Bankruptcy Court Judge has ruled in favor of Southwest Airlines bid for
some of ATA’s assets, and the term sheet presented to the Judge expresses
Southwest and ATA’s intent to enter into a code share agreement. Once both
airlines sign the code share agreement (which is expected to happen soon), the
agreement must then be submitted to the Department of Transportation (DOT)
for their review and approval. DOT has up to 30 days to review and approve the
agreement. Until we have DOT’s approval, neither airline can advertise, market,
or sell code share service. The first travel date with the code share connections
through MDW will be February 4, 2005.
Q. Is this a merger or acquisition?
A. No, this was a bid for certain ATA Airlines assets. Each airline will operate
independently. The code share agreement involves select routes and allows
Customers even more freedom to fly.
Q. What does it mean that Southwest has entered into a code share
agreement?
A. A code share is an agreement between two airlines to sell seats and tickets on
each other’s select flights, which would produce scheduled connections—one
flight from Southwest and one flight from ATA. The entire transaction is in one
reservation/PNR and can be completed through SWA or ATA by calling
Reservations or booking online through either carrier’s web site or reservations
number. In addition to the convenience of being able to book and purchase this
service through one carrier, the Customer’s baggage will also be transferred
between the two code share airlines.
Q. Does this mean that Southwest and ATA are partners?
A. No. ATA and Southwest remain separate, independent airlines even though
there is a code share agreement in place. Each carrier makes its own decisions
independently on what markets they serve and what fares they charge.
Q. What cities will be part of the code share agreement?
A. Initially, we (and ATA) will offer connecting code share service through MDW.
Future code share connection-city opportunities are possible through LAS, LAX,
MCO, PHX, and SEA pending evaluation of the potential relocation of gates and
facilities to make Customer connections and baggage handling more convenient.
Q. Are all destinations served by both airlines out of the code share cities
covered under the code share agreement?
A. Not necessarily. Once ATA has restructured its schedule and operation, we
will have to see how ATA’s schedule syncs with Southwest’s schedule to
determine future destination possibilities.
Q. What would be the benefit of the code share agreement to our
Customers?
A. The agreement allows us to offer our Customers service to destinations
beyond the existing Southwest route network on a single ticketing option.
Q. What is the benefit to Southwest of a code share?
A. This code share agreement could have the potential of an annual estimated
revenue return of approximately $25 to $50 million for Southwest Airlines alone
and allow us passenger traffic growth of around one percent annually.
Q. Why would Southwest want to have a code share agreement with an
airline that’s currently in bankruptcy?
A. Ordinarily, we wouldn’t. We were competing with other bidders for Midway
gates. This was our best opportunity to win the bid for more gates. ATA was
willing to sell us some gates if they could profitably restructure their operation on
their remaining eight gates. With our code share agreement, ATA believes it can
be successful. The code share is a win-win for SWA, ATA, the City of Chicago,
and our Customers.
Q. Does Southwest have any requirements for gate usage on the six gates?
A. Yes. Most airports, including Chicago Midway, typically have requirements for
operations out of preferential use gates. We intend to expand in Chicago over the
next 18 months to meet the gates usage requirement.
Q. Has Southwest ever had a code share or partnership in our history?
A. Not really. For a very brief period of time we had a single route marketing
agreement with Icelandair that connected passengers from a few Southwest
destinations to Iceland.
Q. In the past, Southwest has avoided code share agreements because of
added operational complexities that could increase costs. What has
changed to make this code share agreement palatable?
A. First, this enables us to acquire six more MDW gates. Without the code
share, we couldn’t. Second, ATA is one-tenth the size of Southwest. Code
share passengers are projected to be less than one percent of total Southwest
passengers. The effect should be minimal yet the revenues added are very
meaningful. We will still carry a relatively small number of connecting
passengers and continue to focus on point-to-point, nonstop traffic. We are not
changing our aircraft scheduling, at all.
Operations and Contract of Carriage
Q. What will happen on routes where ATA and Southwest both offer
service?
A. We do not plan to offer code share itineraries on overlapping flights.
Q. If a Customer wants to book a nonstop flight on ATA, can he/she do so
through Southwest?
A. Not at this time. The Customer must be departing on one of the airlines and
“connecting” in one of the code share cities to the other airline.
Q. Will Customers be able to book nonstop flights through ATA on
Southwest?
A. Not at this time. If the Customer is traveling nonstop, he/she could contact the
airline of choice that operates that particular market.
Q. How will Southwest Customers purchase an itinerary that has an ATA
connection?
A. Customers may call SWA Reservations or book online at southwest.com. The
selected code share flights will show on an origin and destination basis in the
availability through SAAS and QIK and on the Select Flight page on
southwest.com.
Q. Will the Customer’s baggage be checked all the way to the final
destination?
A. Yes. A code share requires that we exchange baggage when Customers are
traveling on code share connections.
Q. Southwest doesn’t transports pets and ATA does. How will pets be
handled on code share flights?
A. No pets will be accepted for travel on code share flights. ATA will continue to
accept pets on ATA-only itineraries.
Q. Will Unaccompanied Minors (UMs) be accepted for travel on code share
flights?
A. Since all code share itineraries will involve a connection in a code share city,
UMs may not travel on code share flights.
Q. Will SWA’s and ATA’s Contracts of Carriages need to be changed?
A. In most cases, ATA will change policies outlined in their Contract of Carriage
to mirror Southwest’s policies.
Q. If a Customer’s bag is lost or damaged on a code share flight, whose
responsibility is it to handle the claim?
A. Whichever baggage service office is first contacted by the Customer should
fill out the Baggage Report and begin with the tracing process or the repair
process. The Central Baggage Service Offices will work together to determine
who is responsible for the delay/loss/damage after the Customer has been
handled.
Q. ATA currently interlines with Chicago Express. Will our code share
agreement include Southwest flights connecting with ATA and then
connecting with Chicago Express?
A. No. The code share agreement is between Southwest and ATA flights only.
Q. Will our nonrev privileges change with ATA now that we code share?
A. The good news is that the nonrev pass agreements will remain the same as
they are today.
southwest.com
Q. Will code share flights be available online?
A. Yes. Once the agreement has been approved by DOT and we can begin
offering code share flights for sale, a Customer can book either on
southwest.com or on ata.com.
Q. If a Customer has a Rapid Rewards Online account set up on
southwest.com, can itineraries that include an ATA flight be saved under
“My Frequent Trips?”
A. Yes.
Q. Will itineraries including a flight on ATA show up under “Next Scheduled
Flight?”
A. Yes, assuming the Member was logged into his/her Rapid Rewards Online
account at the time the reservation was made.
Frequent Flyer Programs
Q. How will the code share agreement affect the two airlines’ frequent flier
programs?
A. We are interested in finding a mutually agreeable relationship with our
frequent flyer programs, but we aren’t sure what that will look like at this time.
So, initially, the code share won’t affect the two airlines’ frequent flyer programs.
The Member will receive frequent flyer credits under the frequent flyer program
associated with whichever airline the Customer books and purchases travel. For
Members, connecting code share flights will be awarded one credit (unless
Members take advantage of a Bonus Credit promotion) for each origin and
destination flight, just as they receive for connecting flights today.
(cont)
General Code Share
Q. When does the code share agreement begin?
A. The Bankruptcy Court Judge has ruled in favor of Southwest Airlines bid for
some of ATA’s assets, and the term sheet presented to the Judge expresses
Southwest and ATA’s intent to enter into a code share agreement. Once both
airlines sign the code share agreement (which is expected to happen soon), the
agreement must then be submitted to the Department of Transportation (DOT)
for their review and approval. DOT has up to 30 days to review and approve the
agreement. Until we have DOT’s approval, neither airline can advertise, market,
or sell code share service. The first travel date with the code share connections
through MDW will be February 4, 2005.
Q. Is this a merger or acquisition?
A. No, this was a bid for certain ATA Airlines assets. Each airline will operate
independently. The code share agreement involves select routes and allows
Customers even more freedom to fly.
Q. What does it mean that Southwest has entered into a code share
agreement?
A. A code share is an agreement between two airlines to sell seats and tickets on
each other’s select flights, which would produce scheduled connections—one
flight from Southwest and one flight from ATA. The entire transaction is in one
reservation/PNR and can be completed through SWA or ATA by calling
Reservations or booking online through either carrier’s web site or reservations
number. In addition to the convenience of being able to book and purchase this
service through one carrier, the Customer’s baggage will also be transferred
between the two code share airlines.
Q. Does this mean that Southwest and ATA are partners?
A. No. ATA and Southwest remain separate, independent airlines even though
there is a code share agreement in place. Each carrier makes its own decisions
independently on what markets they serve and what fares they charge.
Q. What cities will be part of the code share agreement?
A. Initially, we (and ATA) will offer connecting code share service through MDW.
Future code share connection-city opportunities are possible through LAS, LAX,
MCO, PHX, and SEA pending evaluation of the potential relocation of gates and
facilities to make Customer connections and baggage handling more convenient.
Q. Are all destinations served by both airlines out of the code share cities
covered under the code share agreement?
A. Not necessarily. Once ATA has restructured its schedule and operation, we
will have to see how ATA’s schedule syncs with Southwest’s schedule to
determine future destination possibilities.
Q. What would be the benefit of the code share agreement to our
Customers?
A. The agreement allows us to offer our Customers service to destinations
beyond the existing Southwest route network on a single ticketing option.
Q. What is the benefit to Southwest of a code share?
A. This code share agreement could have the potential of an annual estimated
revenue return of approximately $25 to $50 million for Southwest Airlines alone
and allow us passenger traffic growth of around one percent annually.
Q. Why would Southwest want to have a code share agreement with an
airline that’s currently in bankruptcy?
A. Ordinarily, we wouldn’t. We were competing with other bidders for Midway
gates. This was our best opportunity to win the bid for more gates. ATA was
willing to sell us some gates if they could profitably restructure their operation on
their remaining eight gates. With our code share agreement, ATA believes it can
be successful. The code share is a win-win for SWA, ATA, the City of Chicago,
and our Customers.
Q. Does Southwest have any requirements for gate usage on the six gates?
A. Yes. Most airports, including Chicago Midway, typically have requirements for
operations out of preferential use gates. We intend to expand in Chicago over the
next 18 months to meet the gates usage requirement.
Q. Has Southwest ever had a code share or partnership in our history?
A. Not really. For a very brief period of time we had a single route marketing
agreement with Icelandair that connected passengers from a few Southwest
destinations to Iceland.
Q. In the past, Southwest has avoided code share agreements because of
added operational complexities that could increase costs. What has
changed to make this code share agreement palatable?
A. First, this enables us to acquire six more MDW gates. Without the code
share, we couldn’t. Second, ATA is one-tenth the size of Southwest. Code
share passengers are projected to be less than one percent of total Southwest
passengers. The effect should be minimal yet the revenues added are very
meaningful. We will still carry a relatively small number of connecting
passengers and continue to focus on point-to-point, nonstop traffic. We are not
changing our aircraft scheduling, at all.
Operations and Contract of Carriage
Q. What will happen on routes where ATA and Southwest both offer
service?
A. We do not plan to offer code share itineraries on overlapping flights.
Q. If a Customer wants to book a nonstop flight on ATA, can he/she do so
through Southwest?
A. Not at this time. The Customer must be departing on one of the airlines and
“connecting” in one of the code share cities to the other airline.
Q. Will Customers be able to book nonstop flights through ATA on
Southwest?
A. Not at this time. If the Customer is traveling nonstop, he/she could contact the
airline of choice that operates that particular market.
Q. How will Southwest Customers purchase an itinerary that has an ATA
connection?
A. Customers may call SWA Reservations or book online at southwest.com. The
selected code share flights will show on an origin and destination basis in the
availability through SAAS and QIK and on the Select Flight page on
southwest.com.
Q. Will the Customer’s baggage be checked all the way to the final
destination?
A. Yes. A code share requires that we exchange baggage when Customers are
traveling on code share connections.
Q. Southwest doesn’t transports pets and ATA does. How will pets be
handled on code share flights?
A. No pets will be accepted for travel on code share flights. ATA will continue to
accept pets on ATA-only itineraries.
Q. Will Unaccompanied Minors (UMs) be accepted for travel on code share
flights?
A. Since all code share itineraries will involve a connection in a code share city,
UMs may not travel on code share flights.
Q. Will SWA’s and ATA’s Contracts of Carriages need to be changed?
A. In most cases, ATA will change policies outlined in their Contract of Carriage
to mirror Southwest’s policies.
Q. If a Customer’s bag is lost or damaged on a code share flight, whose
responsibility is it to handle the claim?
A. Whichever baggage service office is first contacted by the Customer should
fill out the Baggage Report and begin with the tracing process or the repair
process. The Central Baggage Service Offices will work together to determine
who is responsible for the delay/loss/damage after the Customer has been
handled.
Q. ATA currently interlines with Chicago Express. Will our code share
agreement include Southwest flights connecting with ATA and then
connecting with Chicago Express?
A. No. The code share agreement is between Southwest and ATA flights only.
Q. Will our nonrev privileges change with ATA now that we code share?
A. The good news is that the nonrev pass agreements will remain the same as
they are today.
southwest.com
Q. Will code share flights be available online?
A. Yes. Once the agreement has been approved by DOT and we can begin
offering code share flights for sale, a Customer can book either on
southwest.com or on ata.com.
Q. If a Customer has a Rapid Rewards Online account set up on
southwest.com, can itineraries that include an ATA flight be saved under
“My Frequent Trips?”
A. Yes.
Q. Will itineraries including a flight on ATA show up under “Next Scheduled
Flight?”
A. Yes, assuming the Member was logged into his/her Rapid Rewards Online
account at the time the reservation was made.
Frequent Flyer Programs
Q. How will the code share agreement affect the two airlines’ frequent flier
programs?
A. We are interested in finding a mutually agreeable relationship with our
frequent flyer programs, but we aren’t sure what that will look like at this time.
So, initially, the code share won’t affect the two airlines’ frequent flyer programs.
The Member will receive frequent flyer credits under the frequent flyer program
associated with whichever airline the Customer books and purchases travel. For
Members, connecting code share flights will be awarded one credit (unless
Members take advantage of a Bonus Credit promotion) for each origin and
destination flight, just as they receive for connecting flights today.
(cont)
