Southwest backs out of code-sharing deal with WestJet

Dallas-based Southwest said it couldn't go along with changes to the agreement requested by WestJet, which wants to begin a code-sharing deal with Delta Air Lines Inc. from New York LaGuardia Airport.

"We prefer the existing terms of our agreement with WestJet," said Bob Jordan, Southwest's executive vice president of strategy and planning. "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."

Delta, which wants to swap landing and takeoff slots with US Airways Inc., has proposed giving WestJet five pairs of slots at LaGuardia. Southwest chairman and chief executive Gary Kelly said the existing Southwest-WestJet agreement wouldn't allow WestJet and Delta to code-share out of LaGuardia.

Code-sharing is an airline industry practice of putting one airline's flight number, or code, on another carrier's flights so that each can feed their passengers to the other carrier's flights.

Southwest and WestJet originally planned to launch their partnership in 2009, but delayed the implementation until 2010 at Southwest's request.

ENERGY

Constellation to buy 2 power plants in Texas

HOUSTON — Constellation Energy Group Inc., the Baltimore-based utility owner, agreed to buy its first power plants in Texas from Navasota Holdings Texas Partners LP for $365 million.

Constellation is buying the Colorado Bend Energy Center near Wharton and the Quail Run Energy Center near Odessa. The natural-gas-fired plants can generate 550 megawatts each and can be expanded by 275 megawatts, the company said.

The purchase will give Constellation power capacity in Texas markets, where it already sells electricity to customers. Constellation has said it will spend $1 billion during the next two years to increase generation assets in areas where it delivers power.

"These modern, well managed natural-gas assets represent an important addition to our generation portfolio and are an ideal fit to support our expanding commercial businesses in Texas," Chief Executive Officer Mayo Shattuck said in a statement.

Navasota is a closely held energy development company based in Magnolia.

Following state and federal regulatory approvals, the purchase may close by the end of June, Constellation said.