News Releases
CALGARY, Sept. 26, 2013 /CNW/ - WestJet (TSX: WJA) announced today it has entered into a definitive purchase agreement for 65 737 MAX aircraft from Boeing. This order was previously announced on August 29, 2013 as a letter of intent to purchase.
This purchase agreement includes commitments for 25 MAX 7 and 40 MAX 8 aircraft with substitution rights to the 737 MAX 9, with deliveries scheduled from 2017 through 2027. As previously announced, the airline will substitute 15 of its existing Boeing Next-Generation 737 aircraft orders currently scheduled to deliver between December 2014 and 2018, with Boeing 737 MAX aircraft, for a net increase of 50 committed deliveries to its fleet plan. (See the updated Boeing Fleet Plan Schedule below).
"We are pleased to announce the finalization of the MAX purchase agreement and look forward to being among the first North American airlines to fly the 737 MAX in 2017," said WestJet President and CEO Gregg Saretsky. "The increased fuel efficiency and enhanced in-cabin amenities provided by the Boeing 737 MAX will contribute to both lower operating costs and a remarkable inflight guest experience which is supportive of our low-cost business model and combined with our lease renewal options, maintains our fleet plan flexibility going forward."
| Year | WestJet Boeing Fleet Schedule | |||||||
| Boeing 737 Commitments (a) (b) |
Total Commitments |
Boeing 737-700 NG Disposals (c) |
Subtotal |
Lease Renewal Options |
||||
| NG 700 (d) | NG 800 | MAX 7 | MAX 8 | |||||
| Q4 2013 | - | 2 | - | - | 2 | - | 2 | - |
| 2014 | - | 7 | - | - | 7 | (5) | 2 | (3) (e) |
| 2015 | 5 | 5 | - | - | 10 | (5) | 5 | (12) |
| 2016 | 7 | - | - | - | 7 | - | 7 | (8) |
| 2017 | 1 | - | - | 4 | 5 | - | 5 | (6) |
| 2018 | - | - | - | 7 | 7 | - | 7 | (4) |
| 2019 | - | - | 2 | 10 | 12 | - | 12 | (5) |
| 2020 | - | - | 4 | 2 | 6 | - | 6 | (3) |
| 2021 | - | - | 2 | 3 | 5 | - | 5 | (3) |
| 2022 | - | - | 1 | 4 | 5 | - | 5 | - |
| 2023 (f) | - | - | 1 | 4 | 5 | - | 5 | - |
| 2024-2027 | - | - | 15 | 6 | 21 | - | 21 | - |
| Total | 13 | 14 | 25 | 40 | 92 | (10) | 82 | (44) |
| (a) | As of September 26, 2013. |
| (b) | WestJet also has options to purchase an additional 10 Boeing 737 MAX aircraft between the years 2020 and 2021. |
| (c) | Sale of 10 Boeing 737-700 aircraft to Southwest Airlines as announced on May 7, 2013. |
| (d) | WestJet has an option to convert any of these 737-700 Next Generation future commitments to 737-800 Next Generation aircraft. |
| (e) | WestJet expects to renew one of the three lease renewal options on its Boeing 737 aircraft set to expire in 2014. |
| (f) | Based on total commitments and lease renewal options, WestJet's fleet could be as large as 162 737 Boeing aircraft or as few as 120 737 Boeing aircraft by 2023. |
Caution regarding forward-looking information
Certain statements set forth in this news release, including, without
limitation, information regarding the anticipated timing of the 737 MAX
deliveries to WestJet's fleet; the substitution of 15 Next-Generation
737 aircraft orders with 737 MAX aircraft; the expected operational and
financial benefits to WestJet of the 737 MAX aircraft; and the expected
renewal of one 737 leased aircraft in 2014; are forward-looking
statements within the meaning of applicable Canadian securities laws.
By their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond WestJet's control.
The forward-looking statements contained in this news release are based
on WestJet's current long-term strategy, the terms and conditions of
the definitive agreement with Boeing, the specifications of the 737 MAX
aircraft, WestJet's existing fleet order schedule along with other
available implementation plans and agreements but may vary due to
factors including, but not limited to, changes in guest demand, changes
in fuel prices, delays in aircraft delivery, changes in aircraft
specifications, general economic conditions, competitive environment,
ability to effectively implement and maintain critical systems and
other factors and risks described in WestJet's public reports and
filings which are available under WestJet's profile at www.sedar.com. Readers are cautioned that undue reliance should not be placed on
forward-looking statements as actual results may vary materially from
the forward-looking statement. Any forward-looking statements contained
in this news release represent WestJet's expectations as of the date of
this news release and are subject to change after such date. WestJet
does not undertake to update, correct or revise any forward-looking
statements as a result of any new information, future events or
otherwise, except as may be required by applicable law.
About WestJet
WestJet is Canada's most preferred airline, offering scheduled service
to 87 destinations in North America, Central America and the Caribbean.
Powered by an award-winning culture of care, WestJet pioneered low-cost
flying in Canada. Recognized nationally as a top employer, WestJet now
has more than 9,600 WestJetters across Canada. Operating a fleet of
more than 100 Boeing Next-Generation 737 and Bombardier Q400 NextGen
aircraft, WestJet strives to be one of the five most successful
international airlines in the world. This year, WestJet launched its
new regional airline, WestJet Encore.
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