SEATTLE, Sept. 27, 2013 — Boeing (NYSE: BA) and WestJet announced today that they have completed 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.
“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,” said WestJet President and CEO Gregg Saretsky. “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 737 MAX is an excellent complement to the WestJet fleet and its low-cost business model,” said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes. “The airplane’s efficiency, reliability and passenger amenities will enable WestJet to continue to provide its customers high-quality service at a low cost.”
The WestJet order continues the momentum of the 737 MAX in the marketplace. The order brings the total number of 737 MAX orders to date to 1,567 airplanes.
| Year | WestJet Boeing Fleet Schedule | |||||||
| Boeing 737 Commitments (a) (b) | Total Commitments | Boeing 737-700 NG Disposals (c) | Subtotal | Lease Renewal Options | ||||
| NG 700 (d) | NG 800 | MAX 7 | MAX 8 | |||||
| Q4 2013 | – | 2 | – | – | 2 | – | 2 | – |
| 2014 | – | 7 | – | – | 7 | (5) | 2 | (3) (e) |
| 2015 | 5 | 5 | – | – | 10 | (5) | 5 | (12) |
| 2016 | 7 | – | – | – | 7 | – | 7 | (8) |
| 2017 | 1 | – | – | 4 | 5 | – | 5 | (6) |
| 2018 | – | – | – | 7 | 7 | – | 7 | (4) |
| 2019 | – | – | 2 | 10 | 12 | – | 12 | (5) |
| 2020 | – | – | 4 | 2 | 6 | – | 6 | (3) |
| 2021 | – | – | 2 | 3 | 5 | – | 5 | (3) |
| 2022 | – | – | 1 | 4 | 5 | – | 5 | – |
| 2023 (f) | – | – | 1 | 4 | 5 | – | 5 | – |
| 2024-2027 | – | – | 15 | 6 | 21 | – | 21 | – |
| Total | 13 | 14 | 25 | 40 | 92 | (10) | 82 | (44) |
| (a) | As of September 26, 2013. |
| (b) | WestJet also has options to purchase an additional 10 Boeing 737 MAX aircraft between the years 2020 and 2021. |
| (c) | Sale of 10 Boeing 737-700 aircraft to Southwest Airlines as announced on May 7, 2013. |
| (d) | WestJet has an option to convert any of these 737-700 Next Generation future commitments to 737-800 Next Generation aircraft. |
| (e) | WestJet expects to renew one of the three lease renewal options on its Boeing 737 aircraft set to expire in 2014. |
| (f) | Based on total commitments and lease renewal options, WestJet’s fleet could be as large as 162 737 Boeing aircraft or as few as 120 737 Boeing aircraft by 2023. |
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