While other airlines turn back from ambitious expansion plans to shiver in their hangars, Southwest is taking a sharp turn to the north, offering its first international service.
The low-fare carrier has reached a code-sharing agreement with WestJet, a low-fare Canadian carrier. Passengers will be able to book flights through either carrier on the others' routes.
It may be a modest expansion but Southwest's history has been one of small steps that quickly wipe out the tracks of their larger and older rivals. Thanks to crafty fuel-hedging deals reached years ago, Southwest has been enjoying continued profitability while other airlines choke on sky-high fuel costs.
The WestJet partnership comes at just the right time for Southwest. Its service to Hawaii ended abruptly when its previous partner, ATA, flew off into bankruptcy.
WestJet's history is similar to Southwest's in many ways. It was former as a regional carrier serving five cities in western Canada. It now serves 49 Canadian destinations as well as cities in the U.S., Mexico and the Caribbean. Southwest developed as a small regional carrier in Texas and now serves 64 cities throughout the U.S.
Both airlines fly Boeing 737s and have similar operating procedures.
South of the border
Southwest is thought to have its eye on Mexico and Central America as well. Analysts expect a deal one of these days with Avolar, a low-fare Mexican carrier.
The WestJet partnership is expected to more than cover the $50 million or so in revenue lost to Southwest when ATA cratered.
