Utah-based SkyWest [SKYW] will soon be further integrated into the international market as it inks a code-share agreement with Air Canada [ACNAQ].

Initially, the Air Canada code will be placed on flights SkyWest flies for United Airlines [UALAQ] out of Denver to Calgary, Edmonton and Winnipeg. "Ultimately, we expect to get blanket authority to put it on all flights we provide for United out of Denver, Chicago, San Francisco and Los Angeles," said Steve Hart, SkyWest's vice president of market development.

It is not so much that SkyWest has found a new code-share partner in Air Canada, Hart said, but simply an extension of the Star Alliance - the international marketing consortium composed of United, Air Canada, US Airways [UAIR] and major carriers around the globe. SkyWest already flies some United flights with codes from All Nippon Airways [ALNPY], Lufthansa [DLAKY] and US Airways. "We expect to have agreements with the remaining Star Alliance partners shortly," Hart added.

Both United and Air Canada "are interested in making access to each other's services broader and they can do this through the regional carrier agreements. Obviously, given the economic difficulties the industry faces today, these code-shares are a very inexpensive means of putting additional traffic on your trips. There is strong interest in making sure these [agreements] are in place," Hart said.

The impetus for placing the Air Canada codes on SkyWest flights was to end confusion for some travelers. Both SkyWest and Air Wisconsin Airlines share the United Express market out of Denver and the two regional carriers have each been assigned the Denver to Winnipeg routes at different times. While Air Wisconsin has had an agreement with Air Canada, SkyWest has not. When Air Wisconsin has been flying the routes, the coding has been seamless, Hart said. "When we put our plane in the market, we can't put on their code. [United] wants to have equal capabilities to swap airlines on these routes," he noted.

As far as sorting out expenses and revenues on a flight bearing multiple codes, Hart said all the revenue exchange is handled between United and Air Canada. The bottom line for SkyWest is the arrangement is "revenue neutral," he said.

SkyWest also has a code-share agreement with Delta Air Lines [DAL] and via Delta's membership in the SkyTeam alliance. The regional carrier has been exposed to the international market when flying out of Salt Lake City and Dallas.

Less than a year ago, SkyWest signed a limited code-share agreement with AeroMexico. The Mexican member of SkyTeam places its code on select connecting flights out of Dallas and Salt Lake City. While SkyWest does not fly into Mexico, AeroMexico flies into the two Delta hubs to connect with SkyWest.

The involvement of a regional carrier in an international alliance is not unique to SkyWest, Hart said. Several other regional carriers have struck similar arrangements with their major carrier partners.

>>Contact: Steve Hart, SkyWest, (435) 634-3000.<<