CALGARY, ALBERTA--WestJet today announced its Board of Directors has approved a stock split on the basis of three common shares for each two common shares held. The stock split is subject to shareholders' approval. The Board has also approved the purchase of two additional Next-Generation Boeing 737-700 series aircraft to be delivered in November and December of 2002.
The airline has also signed a preliminary agreement for the short-term lease of two Boeing 737-800 series aircraft. These aircraft will be in service with WestJet for approximately seven months, commencing in May 2002.
The record date for the stock split will be on or about May 3, 2002, with the shares commencing trading on a split basis at the opening of business on or about May 1, 2002. The stock split is proposed to be considered at WestJet's Annual and Special Meeting to be held on Thursday, April 25, 2002 at the company's Calgary hangar.
WestJet's plan to purchase two additional new Boeing 737-700 series aircraft in November and December of this year will bring the total number of aircraft added to the airline's fleet in 2002 to ten. These two 737-700 series aircraft are eligible for financing as part of WestJet's $744 million (USD) commitment from the Export-Import Bank of the United States.
The two 737-700 series aircraft announced today are a part of the previously announced 48 optional aircraft arrangement with Boeing signed in August 2000. The airline is maintaining its plans to acquire 26 aircraft under its firm purchase arrangement with Boeing in addition to the two announced today.
The Boeing 737-800 series aircraft, with its 150-person capacity, is virtually identical to the B737-700 the airline currently operates.
Clive Beddoe, WestJet Chairman, President and Chief Executive Officer said today: "We are proposing that our shareholders approve this stock split at our Annual and Special Meeting in April. We believe that this will ensure that the price level and ownership of our airline remains accessible to our many and varied investors. We continue to have tremendous support from our guests and the investment community and we see this as one way to ensure that our shares remain more available to an increasing number of people.
"We are also excited to announce our plan to purchase two additional Next-Generation Boeing 737-700 aircraft this year as well as the lease of the 737-800 series aircraft that will bridge our operations until the 700's arrive. The B737-800 aircraft will provide us with additional capacity to meet the growing demand for WestJet's low-fare service throughout the busy summer travel season.
"With the substantial capacity we will be adding to the market this year, we have dramatically increased our expansion options. Although we have not yet made any final decisions on where we will apply this additional capacity, we are looking forward to adding more destinations and strengthening our current network with greater connectivity and frequency. Announcements regarding our summer schedule will be made in the coming weeks."
WestJet serves the 21 Canadian cities of Victoria, Comox, Vancouver, Abbotsford/Fraser Valley, Prince George, Kelowna, Calgary, Edmonton, Grande Prairie, Fort McMurray, Saskatoon, Regina, Winnipeg, Thompson, Sudbury, Sault Ste. Marie, Thunder Bay, London, Ottawa, Hamilton and Moncton. WestJet currently operates a fleet of 28 Boeing 737 aircraft, featuring five state-of-the-art Next-Generation 737-700 aircraft. WestJet is publicly traded on the Toronto Stock Exchange under the symbol WJA.
I like that they are expanding but I can't help but wonder if they are going to fast? What do you guys think?
Gmonney From Canada, joined Jan 2001, 2159 posts, RR: 20
Reply 12, posted (12 years 10 months 1 week 5 days 5 hours ago) and read 2290 times:
How about range....?? No problem, which aircraft has better range? Will they use lets say the 700 on YYZ-YYC because the range and efficiency is better. As well the loads may be better in the west, you never know the reception here in YYZ. So, it would make a lot of sense to have aircrafts with less capacity in an unfarmiliar market.
So, if logic has it, we will be seeing the 700's here in YYZ based on unpredictable loads, and predictable loads in the west and the 800 will be filled!!!
Just my thought....Can't wait to see these awesome aircrafts here at YYZ.
The -800 is just a bigger 737. I wonder if the 150 passengers are in a two section aircraft. Probably looking over 150 maybe 160 passengers. I wonder if there is a possibility of getting some 737-800's for routes with higher yields, converting some options. They have cancelled their options for the -600.
Fallingeese From Canada, joined Apr 2001, 2097 posts, RR: 17
Reply 18, posted (12 years 10 months 1 week 5 days 4 hours ago) and read 2259 times:
Westjet HAD options for the 737-600 but since it is less economical and Westjet doesn't have problems filling their (absolutely beautiful) planes, they changed the options to 700's. I wonder if they are happy with the -800 if there is a chance of changing some -700 orders into -800. What is the range of the -800? How much do the winglets improve range?
Fallingeese From Canada, joined Apr 2001, 2097 posts, RR: 17
Reply 20, posted (12 years 10 months 1 week 5 days 3 hours ago) and read 2228 times:
Westjet_737...ah yes you're in the separate system. I hope it doesn't last too long because then it'll be cram... I'm only in grade 10 now so it's not too much of a problem. Hey Bo, since you'll be reading this soon, how are you affected?
WJV04 From Canada, joined Jun 2001, 584 posts, RR: 4
Reply 21, posted (12 years 10 months 1 week 5 days 3 hours ago) and read 2216 times:
This is from a internal westjet source. But the 738s are from delta. And will only be painted in limited WestJet colors, so the chrome on the bottom will remain, and the rest will be westjet.
Man you guys are lazy look up some info
if the planes are from delta, then 154 passengers, range is not a issue for nither planes, and heres a comparison of size.