Southwest drops out of deal with WestJet

Southwest Airlines said Friday it is dropping plans to sell travel to Canada in a partnership with Calgary-based WestJet.

Southwest based in Dallas said it pulled out after the Canadian carrier asked for changes in the agreement that the two reached back in 2008.

WestJet would have done all the cross-border flying, and both airlines would have sold seats on each other's flights.

Southwest doesn't fly anywhere outside the U.S., but it said it's still interested in serving Canada either by itself or with a partner airline.

The partnership appeared troubled earlier this month, when Southwest said it was surprised to learn from media reports that WestJet was discussing a similar partnership with Delta Air Lines Inc. Delta would transfer some takeoff and landing slots at New York's LaGuardia Airport to the Canadian carrier.

WestJet CEO Gregg Saretsky said at the time that Southwest wasn't ready for the planned cross-border operation, which Southwest officials disputed.

WestJet closed down25 cents, or twoper cent, at $13.55 in a market already weighed down by news that the U.S. government had charged Wall Street giant Goldman Sachs with civil fraud.