Companies Can't Come To Terms On Modified Agreement

Southwest Airlines notified WestJet last week of its intent to terminate the agreement to offer connecting service between the United States and Canada with WestJet.

WestJet had recently requested significant changes to the agreement that the two airlines have had in place since 2008, and has since reaffirmed and clarified its request. Southwest says it cannot agree with the modifications to the confidential agreement.

"We prefer the existing terms of our agreement with WestJet. Upon reviewing the number of changes that WestJet has requested, we have decided that it is in the best interest of both parties to move forward independently," said Southwest's Executive Vice President of Strategy and Planning Bob Jordan. "We remain interested in exploring the possibility of one day offering service to Canada if it makes sense for Southwest and for our Customers. That would not rule out future codeshare relationships with Canadian carriers, or flying north of the border ourselves."

www.southwest.com