WestJet announces significant fleet-plan enhancements
24-Aug-2009 WestJet today announced enhancements to its fleet plan, which include the rescheduled delivery of 16 aircraft and the purchase of an additional 14 Boeing Next-Generation 737 aircraft. These changes provide for a smoother aircraft delivery schedule and a more flexible fleet plan. The revised delivery schedule is as follows:
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Revised delivery Lease expiries/ Total fleet size
schedule potential renewals at year-end
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Remainder 2009 5 - 86
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2010 5 - 91
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2011 7 - 98
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2012 7 - 105
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2013 6 3 108 to 111
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2014 6 - 114 to 117
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2015 10 12 112 to 127
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2016 8 8 112 to 135
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Total 54 23 112 to 135
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"Thanks to our strong partnerships with Boeing and Aviation Capital Group (ACG), we were able to revise our aircraft delivery schedule to better match our strategic plans," said WestJet President and CEO Sean Durfy. "Our previously published schedule saw us growing to a fleet size of 121 aircraft by 2013. The combination of deferred delivery dates on our existing orders, 14 new orders and 23 leases expiring between 2013 and 2016 - each with the option to renew - gives us the flexibility to end 2016 with a fleet size between 112 and 135 aircraft."
WestJet's revised fleet plan aligns with the current and planned launch of interline and code-share partnerships, the continued rapid growth of its WestJet Vacations business and the airline's plans to grow its share of the business-traveller market. WestJet assessed aircraft buying opportunities in the current market and placed the order for the 14 additional aircraft from Boeing, to be delivered in 2015 and 2016, to help offset lease expiries and provide greater fleet flexibility. With this revised fleet plan, WestJet's capacity growth is expected to be between five and 10 per cent in 2010.
"Our strong WestJet brand and loyal guests provide us with the confidence to keep expanding our network. We believe we will continue to increase our market share profitably. It is clear that additional aircraft are needed to meet our strategic growth plans, and we feel comfortable in the capacity and balance-sheet flexibility this improved fleet plan provides," continued Sean Durfy. "Orders for new aircraft get placed years in advance of delivery dates and, as we have seen, the economic conditions can change rapidly. Shifting the new aircraft delivery dates allows us to spread our growth out more evenly between 2010 and 2016. It also helps to even out our pre-delivery payment schedule for aircraft deposits and gives us the time and flexibility to make decisions around our financing options for these aircraft. Our goal is to provide WestJet with maximum flexibility and our guests with one of the most modern fleet of aircraft in the world."