Reveals Plans In Quarterly Earnings Statement

Canadian carrier WestJet says it plans to order 10 Boeing 737-800 aircraft as part of a fleet modernization effort.

In its quarterly earnings statement posted online, WestJet said it has entered into an agreement with a third party under which WestJet will sell 10 of its oldest Boeing Next-Generation 737-700 aircraft to that party in 2014 and 2015, and that the third party concurrently entered an agreement with Boeing to purchase 10 Boeing Next-Generation 737-800 aircraft in 2014 and 2015, effectively reducing the average age of WestJet's fleet by approximately one year.

WestJet has deferred the delivery of five Boeing Next-Generation 737-700 aircraft from 2014 and 2015 to 2016 and 2017. "These agreements are part of our strategy to optimize and modernize our fleet mix, which will improve CASM, while maintaining fleet flexibility going forward," said WestJet president and CEO Gregg Saretsky.

Boeing acknowledged that it is aware that the deal is in the works. In a statement, the planmaker said it is "delighted that WestJet has committed to order 10 Next-Generation 737-800s. The commitment, with a current list-price value of $891 million, is a key component of the Calgary-based carrier’s strategy to optimize and modernize its fleet.

"Boeing looks forward to working with WestJet to finalize the order in the coming days. When finalized, the agreement will be posted to the Boeing Orders & Deliveries web site as a firm order."

FMI: www.westjet.com, www.boeing.com