UPDATE 4-Southwest, WestJet to forge codeshare pact

By Scott Haggett CALGARY, Alberta, July 8 (Reuters) - Southwest Airlines Co (LUV.N: ) said on Tuesday it will start a codeshare partnership with Canada's WestJet Airlines Ltd (WJA.TO: ), marking the No. 1 U.S. domestic carrier's first foray into the Canadian market and a key boost for WestJet's expansion plans and its stock. Under the agreement, which will be put together by late next year for regulatory approval, the two airlines will sell seats on each other's flights, which means both get access to new customers with lower marketing costs. WestJet shares rose C$1.35, or 11 percent, to C$14.04 on the Toronto Stock Exchange on Tuesday. The stock had dropped 19 percent in the 12 months before the agreement. It's Southwest's first international codesharing agreement though it had a domestic arrangement with ATA Airlines, which... [read full story]