Southwest announces two new international ‘gateways’ ahead of Icelandair partnership
Southwest Airlines will launch its first international airline partnership next month and expand its short list of international “gateways” to Denver and Nashville, the airline announced.
Baltimore was announced as the first such gateway, setting the stage for Southwest to officially sign an interline agreement with Icelandair at a ceremony in nearby Washington on Wednesday.
TPG was on hand as executives signed a pact cementing the partnership between the two carriers, a deal that will eventually allow Southwest loyalists to buy out Quick rewards points on flights to Iceland, Europe and beyond.
The ceremony, held inside the residence of Iceland’s ambassador to the United States, marked what Southwest is building as the first tangible step in series of major changes the Dallas-based carrier drafted last year. That transformation will eventually bring about the first Assigned seats and extra legroom to Southwest’s Boeing 737s.
However, the first thing to mention is the cooperation with Icelandair.
“Interline partnerships are very common in the airline industry,” said Southwest CEO Andrew Watterson. But this is our first relationship so it’s very exciting for us.”
A gentler start to the partnership
EQUAL TPG reported in SeptemberThe Southwest-Icelandair connection will initially be more limited.
Starting in February, travelers will be able to book itineraries with seamless connections between the two carriers through Icelandair’s website.
From the outset, the partnership will focus on just one gateway on the U.S. side: Southwest’s Baltimore/Washington Thurgood Marshall International (BWI) Airport base.
Daily newsletter
Gift your inbox with the TPG Daily newsletter
Join over 700,000 readers to get the latest news, in-depth guides and exclusive offers from TPG experts
However, Southwest executives revealed Wednesday that the airlines plan to soon expand their setup to Denver International Airport (DEN) and Nashville International Airport (BNA).
“We will continue to do this in phases,” Ryan Green, the Southwest executive responsible for overseeing the airline’s wholesale changes announced last year, told TPG on Wednesday. paragraph”.
Deeper relationships begin next year
Expect the two airlines’ relationship to grow in 2026, once Southwest implements assigned seats; Green said the logistics of developing its technology systems to facilitate partnerships in the open seating era — and again after the move to assigned seating – is meaningless.
However, once assigned seats become available, Southwest plans to begin selling Icelandair seats through its booking channels. At that time, customers will be able to book flights to Keflavik Airport (KEF) and top European destinations through Southwest’s website.
“We will add components… like monetization and [redeem] with Rapid Rewards and Loyalty,” Green added. “And we will continue to grow.”
Pomp and circumstances
The launch of this partnership in DC was filled with pomp and ceremony.
Leaders of Southwest and Icelandair exchanged gifts. The Reykjavik-based carrier has launched a piece of molten rock from a newly formed lava field in Iceland. Southwest has come up with a decorative version of its signature logo.
1 belong to 3
SEAN CUDAHY/POINT
Afterwards, the leaders of both companies toasted (“Skál!”) to Brennivin, the national drink of Iceland.
“This is going to be a great partnership,” Svanhildur Hólm Valsdóttir, Iceland’s ambassador to the United States, said during the festival.
Southwest vies for global reach
Southwest plans to announce at least one additional international airline partner by 2025, executives reiterated Wednesday. Additionally, the carrier hopes its growing list of partners will give Rapid Rewards members more destinations to choose from.
“We are talking to both the transatlantic carriers as well as the transpacific carriers,” Green admitted. “Ultimately, this is about giving customers choices that expand the reach and breadth of the Southwest Airlines brand beyond the reach of the 737.”
Of course, not so long ago, this wouldn’t have been possible.
In recent years, the airline has poured money into modernizing its notoriously outdated technical infrastructure – investments aimed at doing everything to prevent another holiday The 2022 crisis to pave the way for changes like Southwest’s First red-eye flight next month. Not to mention, of course, allowing Southwest to begin its most global foray yet — a once unimaginable partnership with an international partner.
“This is a new capability we have,” Watterson said. And that is what transformation is about.” “And then we’ll use this as a normal business process, we’ll add more gateways. Second partner. Third partner.”
Stay tuned…
Related reading: