Low Cost Carrier WestJet Adds to Fleet

Canadian based WestJet Airlines recently announced in a press release, that they have signed a contract for the purchase of 20 additional Boeing aircraft. This purchase will allow for more service from Canada to locations across North America. The purchase is for 20 Boeing 737-700's with the option to convert the aircraft to 737-800 if so desired by WestJet. 14 of the 737's will be delivered in 2012 and the remaining 6 will be delivered in 2013. The Boeing 737-700 will allow WestJet to accommodate 136 passengers while traveling a distance of 3,800 miles.

WestJet vice-president Ken McKenzie said the following, "Consumer demand for WestJet continues to grow. We have had a significant impact on the North American airline industry and require these additional aircraft to satisfy the demands of our guests for our services in Canada, the United States, the Caribbean and Mexico." Based upon statements of the airline, it could be concluded that the airline plans to expand significantly outside of Canada. WestJet hopes to expand to serving over 60 destinations after the delivery of the aircraft.

WestJet operates a fleet of Boeing 737 aircraft, including the 737-600, -700 and -800. The smallest aircraft in the fleet allows for 119 passengers to travel 3,500 miles. WestJet's largest aircraft is the 737-800, allowing for transport of 166 passengers, over a distance of 3,500 miles. The Boeing 737 is one of the most popular airliners used in the world today, with over 6,000 having been produced to date.

WestJet is a relatively new airline, having being founded in 1996, by four entrepreneurs in Calgary, Canada. Flights began in February of 1996 with three Boeing 737-200 aircraft. Initially WestJet offered service to five Canadian cities: Vancouver, Kelowna, Calgary, Edmonton and Winnipeg. After quick success in the commercial transportation world, WestJet added more cities in 1997, 1998 and 1999. An IPO (Initial Public Offering) with a total of 2.5 million shares of stock being offered. WestJet ordered 4 Boeing 737-700's in 2001, and began service to many cities across Canada, including Ottawa, Montréal, and Halifax. Today, WestJet serves 23 Canadian destinations, as well as 10 within the United States, and Bermuda. WestJet could be compared to Southwest Airlines, utilizing the same strategy of using a single aircraft type in a low cost format. However, WestJet provides in-seat entertainment of live TV offered by Bell ExpressVu satellite. WestJet is a publically traded company on the Toronto Stock Exchange under the symbol WJA.