Southwest, WestJet Ink Code-Share Pact
Southwest (LUV) and Canadian carrier WestJet say they have reached an initial agreement on a code-share deal that would create a cross-border low-fare partnership.
The two carriers have "completed the first step in creating a relationship
Details were scant, but the carriers intend to announce flight schedules and additional features by late 2009. Certain aspects of the agreement require approval by regulators in both countries.
Founded in 1996, WestJet is Canada's principal low-fare airline, serving 49 destinations in Canada, the U.S., Mexico and the Caribbean. Like Southwest, its fleet consists entirely of Boeing 737 jets. It has 75 jets now, and 46 more are expected by 2013."This is a defining moment for WestJet," said CEO Sean Durfy, in a prepared statement. "When you examine our network in Canada and Southwest's network in the United States, and the potential to significantly improve both organizations' market access, this is indeed a great day." The deal is not surprising. Southwest has been saying for months that it is seeking an international partner, and aviation consultant George Hamlin says WestJet resembles Southwest in so many ways, "it is an obvious first place to look." Hamlin says the ability to offer frequent service in its markets has been key to Southwest and is likely to be a part of the new code-share. In any market, "they would like to be in the top two or three" carriers, he says.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV