RPT-UPDATE 2-WestJet strikes transport deal with Air France-KLM

(Refiles to delete extraneous words in paragraph 4)

* Agreement "important strategic move", WestJet says

* Could expand into broader code-share deal

* WestJet shares end C$0.01 lower at C$9.99 (Adds details, analyst comments)

by Susan Taylor

OTTAWA, July 16 (Reuters) - WestJet Airlines Ltd (WJA.TO) said on Thursday it has struck a deal with Air France-KLM (AIRF.PA) that lets passengers board the European carriers' planes and travel to a final destination in WestJet's Canadian network with a single ticket.

WestJet, Canada's second-biggest airline, said the interline agreement is an "important strategic move" and could lead to a full code-share deal, in which the airlines sell seats on each other's flights.

"Is this significant from a revenue point of view? No question," said independent airline consultant Rick Erickson. "It's almost gravy on your bottom line."

Erickson said that Air Canada (ACa.TO) executives have said on conference calls that as much as 15 percent to 20 percent of gross revenue comes from alliance partners.