Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
CanadaEH
Topic Author
Posts: 1331
Joined: Tue Jul 22, 2003 5:53 am

Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 12:40 pm

CALGARY, ALBERTA--WestJet today announced its Board of Directors
has approved the purchase of two additional Next-Generation
Boeing 737-700 series aircraft to be delivered in June and August
of 2004.

WestJet's plan to purchase two additional new Boeing 737-700
series aircraft in 2004 will bring the number of new aircraft
added to the airline's fleet in 2004 to 11. The two additional
737-700 series aircraft are eligible for financing, subject to
approval, from the Export-Import Bank of the United States
(Ex-Im) as part of WestJet's commitment from Ex-Im.

In 2000, WestJet signed an agreement with Boeing to purchase 26
737-700's with the option to purchase 48 additional aircraft.
With today's announcement, WestJet has now converted six options
into firm orders, bringing the total number of firm purchases to
32.

Clive Beddoe, WestJet's President, CEO and Executive Chairman,
said today: "We are very pleased to announce our plan to purchase
two additional Next-Generation Boeing 737-700 aircraft in 2004.
The fuel efficiency and range of these aircraft will continue to
allow us to expand the size of our network by improving the
connectivity between our current destinations while adding more
cities to our route structure.

"The Next-Generation 737-700's in our fleet have grown from four
in 2001 to 14 in 2002, and by the end of 2003 we will have 25
737-700's for a total fleet size of 44 aircraft. With today's
announcement, we will add a further 11 737-700's to our fleet in
2004. Our growing fleet clearly illustrates our readiness to
serve more people and more destinations in the months and years
ahead as we continue our profitable expansion."

And another news release today..

CALGARY, ALBERTA--WestJet Airlines Ltd. ("WestJet" or the
"Company") announced today that it has entered into an agreement
with a syndicate of underwriters led by CIBC World Markets Inc.,
under which the underwriters have agreed to buy and sell to the
public 5,155,000 Common Shares of the Company from treasury, with
an option to purchase up to an additional 1,031,000 Common
Shares, exercisable at any time prior to closing. The purchase
price of $24.25 per Common Share will result in gross proceeds of
approximately $125 million assuming that the underwriters' option
is not exercised, and approximately $150 million if the option is
fully exercised. Closing is expected on or about October 15,
2003.

The net proceeds from the issue will be used by WestJet to fund
additional aircraft, spare parts, winglets, the installation of
in-flight television service, pre-delivery payments on the new
aircraft, and for general working capital purposes.

The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from the registration requirements. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy securities.


Very good news for us Westjet employees!
EH.
 
User avatar
LN-MOW
Posts: 1692
Joined: Tue Feb 01, 2000 12:24 am

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 12:48 pm

So when will we see WestJet at Sea-Tac and not only at Boeing Field and Everett???

- I am LN-MOW, and I approve this message.
 
WNfan
Posts: 198
Joined: Fri Jul 25, 2003 4:27 am

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 12:59 pm

When will we see WestJet anywhere south of the border?
 
CanadianNorth
Posts: 3264
Joined: Sat Aug 24, 2002 11:41 am

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 1:37 pm

I think what WestJet autta do is get 1 more B737-700, and from may-september run it to YXY here, and the rest of the year have it run south somewhere, that way catching the summer traffic up ere, and the winter traffic to yer mexico or floriday or sometin eh...

CanadianNorth
HS-748, like a 747 but better!
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 2:07 pm

I'd think that WestJet isn't really interested in going head-on with Air North and Canadian North, which have the northern market pretty sewn up between the two of them; but, I've heard and seen them talking of going to YZF, perhaps.

The timetable for transborder service is within six or eight months, given what Clive Beddoe has said before. The extra capacity is probably for "connect the dots" sort of thing - increasing frequencies between existing destinations, in preperation for starting transborder service and having immediate returns from what will be a very competitive transborder market from start-up - at least, that's what it looks like.
"Talk to me, Goose..."
 
gmonney
Posts: 2076
Joined: Fri Jan 12, 2001 2:59 pm

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 2:08 pm

They already are doing charter runns, 008, you know the one with winglets was in St.Maarten on saturday and flew YYZ-SXM-YYZ. I do not know the details of the flight, but a very knowledgable spotter informed me of this flight!

Grant
Drive it like you stole it!
 
CanadaEH
Topic Author
Posts: 1331
Joined: Tue Jul 22, 2003 5:53 am

RE: Westjet Purchases Additional Aircraft

Tue Sep 23, 2003 3:59 pm

Yea, Westjet will be flying to the States within a year, as goose said, as close at eight months from now. If I were to forcast, I'd say any transborder service would commence in May/June and go from there.

The in-stone charter schedule was released internally today, and my god are there a lot of charters!! Charters to Fort Lauderdale, Los Cabos, Manzanillo, Puerto Vallarta, St Martaan, Las Vegas, Veradero, Cancun, Zihuantejo, and a few more that I'm missing.

CanadianNorth, there was talk a while back about Air North having some sort of agreement with Westjet to feed passengers/cargo to eachother (according to Air North people), but that never really materialized. So who knows!
EH.
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 12:58 am

Well, CanadaEH - there's 4 gates under construction @ YYC as part of the D concourse widening - apparently, they are earmarked for transborder use. Air Canada owned those gates before (inheritance from CP), but I'm unsure who will own the gates once the construction is complete, since it's rumoured AC owes the CAA several $M in back rent.

Those new gates are right next door to WestJet's operation on the D Pier; so it's reasonable to assume that the timetable for WestJet's transborder operations is dependant on the new transborder gates opening up in YYC, WS' home base and by far its largest hub. Nearly 50% of WS' pax through YYC are transiting through on connecting flights.

At least, that's my observation and ascertation of what might go on.
"Talk to me, Goose..."
 
Samurai 777
Posts: 2000
Joined: Thu Jan 27, 2000 2:56 pm

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 1:12 am

That's all well and good that more 73Gs are coming in, but what about how much longer WS will keep its older 732s? I thought WestJet is supposed to be retiring them!

Also, what about plans, if any, to convert some orders into 737-800s and 737-600s? I understand that the 737-700 is the best variant of 737NG for most airlines to operate economically. Remember when WestJet wet-leased a couple of 737-800s from Delta Express? I wonder how well they filled on such routes like YYC-YHM. The 738 could be used for routes with higher passenger traffic, while the 736 would be for smaller markets like Fort McMurray or Grande Prairie. I highly doubt WestJet would completely axe service to some certain smaller markets, especially these two cities in Northern Alberta completely, if all those 732s were gone.
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 1:23 am

The retirement schedule for the 732s is very slow. I think they're only expecting to retire one airframe in 2003; the last one is due out in about five or seven years or so.

As for other options; I've heard that WestJet has had serious conversations with Boeing about opting for some -800s, and perhaps some -600s; the -800s would, indeed, be ideal for routes from YYC or YVR to YYZ. The -800s that WS leased from Delta back in 2002 were flown exclusively from YYC to YYZ.

The extra 20 or so pax per flight, if WS were to use -800s, would help the bottom line, no doubt..... but it might complicate things for WS in terms of aircraft utilization; right now, WS' 200s and 700s operate on a very similar break-even point in terms of load factor, and the difference in useable seats between the two variants is only a dozen or so (125 on the 200s vs. 140 on the 700s, but the 700s will have less in a few months when the rows are taken out to improve pitch). So, sending a -700 to YMM or YQU might not be as economically unfeasable as you predict.

The -600s, though.... well, apparently SAS has had some problems making that aircraft viable. WestJet certainly knows that, so they might be leery about buying an aircraft which would have a higher break-even point in terms of load factor. The problem of utilization comes up as well.

I think WS will stick with the -700 for the forseeable future, and might wait until it's consolidated its network in Canada before moving to a larger 737 variant. It's probable, but maybe not in the immediate future. I just don't think the advantages outweigh the possible problems at this point in the game..... WestJet only became a "coast to coast" carrier less than a year ago (with service to YHZ), and YYZ service (biggest airportmarket in Canada) is only a touch over a year old.
"Talk to me, Goose..."
 
gmonney
Posts: 2076
Joined: Fri Jan 12, 2001 2:59 pm

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 1:48 am

Well said Goose, I think to add to your point, WS doesn't want a surplus aircraft sitting around. For example AC could sub in a few different aircraft depending on the load or mechanical problems. As for WS if they had a mechanical problem on a 738 from YYC-YYZ, its hard to sub in a -700 unless it was not full. I think the direction of WS is to keep the aircraft flying as musc as possible and not have to worry too much about what aircraft and where it is.

As for the -200 well it got them into the game and has made it possible for WS to be sucessful! They have their own route that they fly and i have heard that WS flew a 732 into YYZ one day because of a problem, so there you go.

So, expect a lot of -700's and a lot of winglets!

Grant
Drive it like you stole it!
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 1:59 am

Yes, WS has flown 732s to YYZ before; these flights, of course, were not completely full.

As for aircraft sitting around.... they usually have a few on the ground, at the hangar in YYC, namely; they usually keep some spares around in case of a tail-swap due to mechanical problems, or otherwise unforeseen problems. This helps keep their OTP up; it also prevents aircraft from breaking down in bases away from their maintenance hub in YYC - they can pull aircraft out of service and substitute them as soon as they come into YYC, without a noticeable gap or delay in service for their pax.
"Talk to me, Goose..."
 
CanadaEH
Topic Author
Posts: 1331
Joined: Tue Jul 22, 2003 5:53 am

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 4:34 am

Retirement schedule for the -200's are as follows:

By the end of 2003: 19 -200 in fleet
By the end of 2004: 18 -200 in fleet
By the end of 2005: 14 -200 in fleet
By the end of 2006: 9 -200 in fleet
By the end of 2007: 6 -200 in fleet
By the end of 2008: 1 -200 in fleet

Keep in mind, there are a lot of variables that are coming into play in the future. Westjet is expecting a jump in load factor of about 5%+ (JetBlue experienced 10% jump, Frontier 7%). If that expectation is met, retirement's will be sped up, and possibly more options will be converted to cover that void.

There was the rumour a while ago where Boeing offered to take all of our -200's in exchange for -600 and -800's. That rumour seems to have faded away. I would love to see Westjet with an -800 w/winglets, but I can't see that happening in the next 5 years. Westjet is very good at adapting to the ever changing market, so you really just don't know what to expect.

Goose, to clarify things for you: the -800's we leased from Delta were flown not just exclusively on the YYC - YYZ route. We had one -800 layover here every night and fly YVR - YEG - YHM (and back?) or YYZ - YYC - YVR on the return (can't remember). There was also one day of the week where both were here - one leaving and one arriving - at the same time.

In reponse to the 4 gates that are being built, maybe you can do some investigating for us, I haven't heard anything about whether or not we'll be using them or not.  Smile I would expect that a lot of flights would be departing from YVR, as YVR has some cool plans in the making for the future!  Big thumbs up
EH.
 
Guest

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 10:37 am

That is correct CanadaEH. Initially the -800s were expected to be used exclusively between YYZ, YEG+YYC. However as things progressed it got very difficult to do, and they started sending us the -700s. Initially it was always the red-eye from YYC (652-653) that came in that way. However the -800s were always mainly into YYZ, but I know YHM saw them, and even YXU and YOW got them occasionally. They were only configured for 150 seats though (10 more than the -700). As they retained their Delta Shuttle interiors. As for the loads, that first summer in YYZ they were VERY full. We'd send them with 150 in and out. The other nice thing was that they could carry A LOT of cargo (could easily put 10,000lbs.) on the YYZ-YYC/YEg flights. If anyone wants to see pictures, they kept their US reggies as well (N3739P, and N3740C). They were really gorgeous inside, and WestJet even adopted the leather seats with the headrests throughout the entire fleet. Had the chance to try them out with the Delta planes, and they were a huge hit with the guests.
 
Bluewave 707
Posts: 2794
Joined: Thu Jun 07, 2001 8:21 am

RE: Westjet Purchases Additional Aircraft

Wed Sep 24, 2003 11:06 am

From all I have read, Westjet seems to be growing at a pretty good clip. One thing that they must be careful of is expanding too rapidly. That will have a negative effect on service with too many new people in the mix. History has shown that in the 80s & 90s with deregulation here in the US

I have the feeling it won't be too long until Westjet begins US/Canada service.
"The best use of your life will be to so live your life, that the use of your life will outlive your life" -- D Severn
 
User avatar
Goose
Posts: 1773
Joined: Thu Aug 21, 2003 3:40 am

RE: Westjet Purchases Additional Aircraft

Thu Sep 25, 2003 1:14 am

In reponse to the 4 gates that are being built, maybe you can do some investigating for us, I haven't heard anything about whether or not we'll be using them or not. I would expect that a lot of flights would be departing from YVR, as YVR has some cool plans in the making for the future!

There's really not much to investigate, besides observation of the construction currently going on. The gates most likely will be for transborder use, with access to US Pre-Clear in YYC.

As for who will use them - well, I'm going to assume they'll be common-use, if the Calgary Airport Authority takes possession of them once they're built; AC already owns a couple of trans-border gates on the C side of the International pier in YYC. I know that the International Pier is the next target for renovation (the entire thing is slated to be refitted with a new fascade, and with the possible addition of a hammerhead at the end of the pier).... so the new D concourse project could be used to provide room for AA, UA, etc. flights coming in while that project is going on, in about two to four years.
"Talk to me, Goose..."

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos