Topic: Growth Stocks

WESTJET AIRLINES $16.47 – Toronto symbol WJA

WESTJET AIRLINES $16.47 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 126.2 million; Market cap: $2.1 billion; Dividend yield: 1.5%) has signed a code-sharing agreement with China Eastern Airlines, one of that country’s largest carriers.

Under these agreements, two airlines co-operate on flights and baggage handling. Code-sharing agreements are especially valuable for attracting business passengers. That’s because these agreements let customers seamlessly connect between flights and gain frequent-flyer points for the entire distance travelled.

As well, WestJet currently only has Boeing 737s in its fleet. That limits how far it can fly, so it relies on code-sharing and other agreements to attract international travellers.

WestJet is still a buy.

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