Tag Archives: fleet plan

WestJet to acquire 65 Boeing 737 MAX aircraft

WestJet (Calgary) announced today it has entered into a letter of intent (LOI) to purchase 65 737 MAX aircraft from Boeing, consisting of 40 737 MAX 8 and 25 737 MAX 7 aircraft, with delivery scheduled to begin in September 2017.

The 737 MAX aircraft will be equipped with CFM International LEAP-1B engines, and is expected to reduce fuel burn and CO2 emissions by 13 per cent as compared with the most fuel-efficient single-aisle aircraft currently available. Additional design updates, including Boeing’s Advanced Technology winglets and the Boeing Sky Interior, will also contribute to these improvements in fuel efficiency and WestJet’s overall guest experience. Boeing currently has firm orders from five other airlines in North America for its 737 MAX aircraft.

The airline will substitute 15 of its existing Boeing Next-Generation 737 aircraft orders currently scheduled to deliver between December 2014 and 2018, with Boeing 737 MAX aircraft, for a net increase of 50 committed deliveries to its fleet plan. Including this pending order, WestJet’s future Boeing 737 aircraft deliveries total 92, with commitments for the proposed Boeing 737 MAX 7 and MAX 8 aircraft, including substitution rights to the 737 MAX 9, scheduled for delivery from 2017 through 2027. WestJet notes that as a result of the flexibility built into its fleet plan, which includes its lease renewal options but excludes any potential sales other than the previously announced sale of 10 737 Boeing Next-Generation aircraft in 2014 and 2015, the fleet could be as large as 162 737 Boeing aircraft or as few as 120 737 Boeing aircraft a decade from now.

As a result of this pending order, WestJet now anticipates its capital expenditures to range between $210 million and $220 million for the third quarter of 2013, and between $690 million and $710 million for the full-year 2013. Previously, WestJet’s guidance was between $100 million and $110 million for the third quarter of 2013, and between $610 million and $630 million for the full-year 2013. The increase in full-year 2013 capital expenditure incorporates reduced deposits forecasted in the fourth quarter of 2013 as a result of the Boeing Next-Generation 737 aircraft substitutions. Including this pending order, WestJet’s cumulative aircraft capital expenditures from 2014 to 2017 will be lower than previously expected due to the substitution of 15 existing Boeing Next-Generation 737 aircraft orders that were scheduled to deliver between December 2014 and 2018 to Boeing 737 MAX aircraft delivering in 2017 and beyond.

WestJet expects that a definitive purchase agreement will be entered into prior to September 30, 2013.

Copyright Photo: Bruce Drum/AirlinersGallery.com. WestJet’s current fleet consists of 103 Boeing Next-Generation 737 aircraft. Boeing 737-8CT C-GWSA (msn 34153) approaches Las Vegas’ McCarran International Airport.

WestJet:

Hawaiian signs a contract for 16 new Airbus A321neo aircraft

Hawaiian Airlines (Honolulu), having reached key labor agreements with its pilot and flight attendant unions on the introduction of new aircraft, today announced that it has signed a definitive purchase agreement with Airbus to acquire 16 new A321neo aircraft between 2017 and 2020, with rights to purchase an additional nine aircraft.

The transaction, which finalizes the Memorandum of Understanding announced in January, is the latest step in Hawaiian’s phased fleet plan designed to supplement its current wide-body fleet of 26 aircraft, expand its long-range fleet, and enable it to open new domestic and international nonstop services to Hawaii. The long-range, single-aisle A321neo will complement Hawaiian’s existing fleet of wide-body, twin-aisle aircraft used for long-haul flying between Hawai’i and the U.S. West Coast.

Terms of the purchase agreements were not disclosed. The order has a combined list-price value of approximately $2.8 billion if all purchase rights are exercised.

Hawaiian’s A321neo aircraft will seat approximately 190 passengers in a two-class configuration (First and Coach) and have an operating range of 3,650 nautical miles. Hawaiian’s A321s will offer the more comfortable seat widths found in its twin-aisle A330s.

The A321 fleet expansion is expected to generate roughly 1,000 additional jobs at Hawaiian.

Hawaiian currently operates a fleet of 44 aircraft, comprised of 26 wide-body, long-haul aircraft (294-seat Airbus A330-200 aircraft and 264-seat Boeing 767-300 ER aircraft), and 18 narrow-body 123-seat Boeing 717-200 aircraft for Neighbor Island flights.

Hawaiian’s existing aircraft orders include an additional 12 new A330s between 2013 and 2015, and six next-generation, longer-range A350XWB-800 aircraft starting in 2017. The existing fleet of 16 Boeing 767s will phase out over the next 10 years.

Image: Airbus.

Hawaiian Airlines:

Air Canada to add two additional Boeing 777-300 ERs, 15 Embraer ERJ 175s to be transferred to Sky Regional Airlines

Air Canada (Montreal) yesterday (October 1) unveiled a fleet plan providing for international growth at both the mainline carrier and its new low-cost leisure airline to be launched in 2013.

Air Canada will add two new Boeing 777-300 ER aircraft to the mainline carrier’s widebody fleet in order to pursue strategic growth opportunities for its international network. With the addition of these two aircraft, to be delivered in June and September 2013, Air Canada’s Boeing 777 fleet will consist of 20 aircraft comprising the latest generation of 300 ER and 200 LR models. Air Canada currently operates 56 widebody aircraft and 149 narrowbody aircraft.

The arrival of these new Boeing 777s, along with the 787 Dreamliners in 2014, will allow AC to introduce new routes for the mainline carrier and release aircraft from the existing fleet to the new low-cost leisure carrier. Air Canada’s mainline carrier will continue to grow internationally as it launches new routes, while the leisure carrier will pursue opportunities in markets where we are not adequately cost competitive under the mainline brand, according to the carrier.

On September 20, 2012, Air Canada announced that it will hire more than 900 employees over the next 12 months to meet its planned workforce requirements at the main airline. In addition, 200 new jobs will be created for flight attendants and pilots at the airline’s new leisure carrier.

New international services to be introduced with the addition of two Boeing 777 aircraft at the main network carrier will be announced at a future date, as will further details of its leisure carrier low cost unit.

Consistent with Air Canada’s focus on pursuing international growth opportunities and its on-going cost transformation initiatives, the airline and Sky Regional Airlines, Inc. (Air Canada Express) (Toronto) have agreed to the transfer of 15 Embraer 175 aircraft, the smallest aircraft in Air Canada’s fleet, from Air Canada to Sky Regional to operate the aircraft on behalf of Air Canada under the capacity purchase agreement between the parties. The aircraft will continue to be operated on short-haul regional routes, primarily from Toronto and Montreal to destinations in the northeast United States, under the Air Canada Express banner. The transfer of the 15 regional aircraft is expected to be made between February and June 2013. The agreement is subject to a number of conditions. Sky Regional has operated Air Canada Express service between Billy Bishop Toronto City Airport and Montreal Trudeau Airport since May 2011. In addition to Sky Regional, Air Canada has capacity purchase agreements with its other regional airline partners, Jazz, Air Georgian and EVAS, that operate regional Air Canada Express flights on behalf of Air Canada.

Top Copyright Photo: Keith Burton. Boeing 777-333 ER C-FIUV (msn 35248) climbs away from the runway at London (Heathrow).

Air Canada:

Bottom Copyright Photo: Brian McDonough. The 15 Embraer ERJ 170-200SUs (ERJ 175s) will leave the mainline AC fleet and will be operated now as Air Canada Express aircraft by lower-cost Sky Regional. C-FEJD (msn 17000090) prepares to land at Washington (Reagan National).