UPDATE 1-Southwest plans Canada pact with WestJet

NEW YORK, July 8 (Reuters) - Southwest Airlines Co (LUV.N: ) said on Tuesday it plans to start a codeshare partnership with Canada's WestJet Airlines Ltd (WJA.TO: ), marking the U.S. No. 1 domestic carrier's first foray into the Canadian market. Under the codeshare, which will be put together by late next year for regulatory approval, the two airlines will sell seats on each others' flights, which means both get access to new customers with lower marketing costs. Southwest, which invented the low-cost carrier model and has a range of valuable fuel hedges on its books, is one of the few airlines expected to expand routes in the next year or two as the major carriers cut back on flights to reduce fuel costs. WestJet, founded in 1996 as a western Canadian regional airline, is Canada's leading low-cost carrier, flying to the... [read full story]