Great fit for WestJet

Article Excerpt

WESTJET AIRLINES $11.71 (Toronto symbol WJA; SI Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 138.8 million; Market cap: $1.6 billion; No dividends paid) has signed a code-sharing agreement with Hong Kong’s Cathay Pacific Airlines. Code sharing lets airlines sell seats and move luggage under their own name onto another carrier’s flights. So, WestJet can now offer flights into overseas markets. The next step for WestJet is code sharing with a U.S. airline. The company had a deal with Southwest Airlines in 2008, but it fell through. However, the company is now reportedly in talks with American Airlines. The deal with highly regarded Cathay Pacific adds to WestJet’s strong reputation for customer service — an often underappreciated factor in attracting and retaining clients. Another key WestJet advantage is that its workforce isn’t unionized, and many of its employees are shareholders. Many flyers find this leads to friendlier service than they get with unionized workers, who may be bitter after years of labour conflict. WestJet, our Stock…