Southwest may enter Canada solo
NEW YORK, April 7 (Reuters) - Southwest Airlines Co. is willing to tackle the Canadian market alone if its current pact with WestJet Airlines Ltd comes undone, a senior executive with the Dallas-based airline said.
''If a partnership with WestJet were to unravel, then we would take a step back and reevaluate whether a partnership is more appropriate or serving Canada directly ourselves would be more appropriate,'' Bob Jordan, executive vice president of strategy and planning, said in an interview on Monday.
WestJet said last month that it was in talks with other airlines, including Delta Air Lines, about partnerships to widen its travel network.
A possible deal between WestJet and Delta would violate an existing code-share agreement with Southwest, Jordan said.
Southwest and WestJet inked a code-share agreement in 2008, which would have given Southwest a foothold in the Canadian market and helped WestJet expand. But the deal was put on hold in May 2009 as air travel declined in the recession.
Code-shares allow airlines to sell tickets on flights operated by another airline, limiting costs but broadening a single carrier's reach.
Southwest is in the process of hammering out a code-share agreement with Mexican airline Volaris. It is wants to launch the code-share with WestJet in late 2010.
Jordan emphasized that Southwest's pact with WestJet was still in place, but said if the deal fell through, Southwest would prepare to go into a market alone or with another partner.
''The code-share is a lower risk way to enter those markets, Jordan said. But, he added, ''We never said the partnerships with Volaris or WestJet took serving those countries ourselves off the map.''
Jordan said finding a partner to enter Canada would be ''difficult'' given the market is dominated by Air Canada and WestJet.



