Boeing, WestJet firm up order for 65 737 MAX Airplanes

By BA Staff

Boeing and WestJet announced today that they have firmed up an order for 65 737 MAX airplanes, fulfilling the carrier's letter of intent to purchase the airplanes announced on Aug 29. The order, valued at $6.3 billion at list prices, consists of 40 737 MAX 8s and 25 737 MAX 7s. The airplanes are a key component of the Calgary-based airline's fleet renewal initiative.

WestJet President and CEO Gregg Saretsky said:

"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. 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 in-flight 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."

The 737 MAX brings the most advanced engine technologies to the world's best-selling airplane, building on the strengths of today's Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see a 13 percent fuel-use improvement over today's most fuel-efficient single-aisle airplanes. The order brings the total number of 737 MAX orders to date to 1,567 airplanes.

Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes said: 

"The 737 MAX is an excellent complement to the WestJet fleet and its low-cost business model. The airplane's efficiency, reliability and passenger amenities will enable WestJet to continue to provide its customers high-quality service at a low cost."

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WestJet orders 65 Boeing 737 MAX

by Vinay Bhaskara

Image Credit: Boeing

Canadian low cost carrier (LCC) WestJet announced today that it has signed a letter of intent (LoI) to purchase 65 Boeing 737 MAX aircraft (40 737 MAX 8 and 25 737 MAX 7) from Boeing, in a deal worth $6.3 billion at list prices.

Deliveries of the 737 MAX will commence from September of 2017, and the order marks a net addition of 50 frames to WestJet's order book, as 15 of the orders have been converted from existing WestJet orders for the Boeing 737NG. WestJet currently operates a fleet of 107 aircraft (103 Boeing 737 NG and 4 Bombardier Dash 8 Q400 turboprops operated for regional subsidiary WestJet Encore), with 123 more on order (65x 737 MAX, 42x remaining 737 NG, and 16 more Q400s for Encore).

WestJet President and CEO Gregg Saretsky had this to say about the order

We are proud to continue our long-standing relationship with Boeing and are thrilled that we will be among the first North American airlines to fly the new 737 MAX in its first year of commercial operation. This pending order reinforces our strategy of maintaining the flexibility in our fleet plan while enabling us to introduce new fuel-efficient technology and enhance our inflight guest experience... Our strong balance sheet allows us the opportunity to support our low-cost business model and contribute to our profitable growth through the renewal of our fleet with a lower operating cost aircraft. 

Said Brad McMullen, Vice-President of North America Sales, Boeing Commercial Airplanes:

We are pleased to see that the 737 MAX will continue the tradition of supporting WestJet's vision to be one of the most successful international airlines in the world. The 737 MAX's efficiency, reliability and passenger amenities will be a successful combination with WestJet's famous customer service.

WestJet expects that a definitive purchase agreement will be signed before 30th September 2013.

The order from WestJet marks a victory for Boeing in the ever heated competition with rival Airbus' A320neo, though an expected one (given WestJet's large fleet of 737NGs). The order brings the 737 MAX to a solid 1,602 purchase commitment (1498 firm orders, 104 MoUs). But the MAX still lags behind the A320neo, which has racked up a massive 2,455 purchase commitments to date (2380 firm, 75 MoU - albeit having been offere for a full year longer than the 737 MAX).

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WestJet introduces Plus

Earlier today, Canadian LCC Westjet announced the launch of Plus, a part of the airline's fare bundle roll-out, offering several benefits. Find the details below.

19th August 2013

CALGARY, Aug. 19, 2013 /CNW/ - WestJet today announced the market launch of Plus, an important part of the airline's fare bundle roll-out, offering additional flexibility, comfort and convenience to guests looking for more options.

Plus includes:

• complimentary flight change and cancel options
• extra baggage allowance (two free checked bags)
• extra legroom (36-inch seat pitch)
• a complimentary food item and alcoholic beverages from our inflight menu
• advance boarding and overhead bin space
• priority security screening at available airports

"Plus is the answer for a growing market of travellers who have asked for more choice and flexibility at lower fares than exist today," said Bob Cummings, WestJet Executive Vice-President, Sales, Marketing and Guest Experience. "The introduction of Plus allows us to offer guests the same guest experience they have always enjoyed while providing additional features to meet their needs. What WestJet includes in Plus is offered at a price much lower than what competitors have made available to date and I am proud that WestJet continues to drive value for the travelling public. Plus is an excellent choice for business travellers and guests who require greater flexibility, more amenities and less planning around their travel dates."

Plus completes the fare bundle launch that began earlier this year with the fleet reconfiguration, creating additional legroom in the first three rows of seating in all of WestJet's 103 Boeing Next Generation 737 aircraft. Guests can now choose Econo, Flex, or Plus fares at time of booking at westjet.com, via our Sales Super Centre at 1-888-WESTJET (937-8538), or through their preferred travel agent based on individual itinerary and travel requirements. By offering three fare levels, WestJet continues to provide Canadians with affordable travel options along with its signature fun, friendly and caring service.

"Plus is the latest investment WestJet has made for the business traveller," concluded Bob Cummings. "Our ever-improving schedule enhanced through our airline partnerships and the launch of WestJet Encore provides the connectivity our business guests need. WestJet Rewards is a simple and transparent rewards program backed by one of the most trusted brands in Canada."

To ensure availability, guests wishing to purchase Plus are encouraged to do so in advance of their flight. Based on availability, guests who purchase Econo and Flex fares may select a seat in Plus for a fee at check-in and receive priority boarding, first access to overhead bin space, added legroom and complimentary food and beverages or on board the aircraft to receive additional legroom and complimentary food and beverages.

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.

About WestJet Vacations
WestJet Vacations provides guests with affordable, reliable and easy-to-book travel experiences to 55 destinations in 18 countries, including the United States, Mexico and the Caribbean. Leveraging WestJet's fun and friendly image, extensive network and remarkable guest experience, WestJet Vacations offers guests a great flight schedule and a wide variety of hotel and resort options to create fun and affordable vacation experiences.  For more information visit www.westjetvacations.com.

About WestJet Rewards
WestJet Rewards members earn WestJet dollars on WestJet flights, vacation packages and more. WestJet dollars can be used like cash towards the purchase of WestJet flights and WestJet Vacations packages on any date to any WestJet or WestJet Encore destination with no blackout periods, even on seat sales. More flights equal more benefits, including bonus WestJet dollars and Jet-Aways. Guests who use their WestJet RBC MasterCard will earn WestJet dollars even faster.

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