WestJet today announced that it is launching a new dedicated cargo service, using 737-800 Boeing Converted Freights (BCF), as dedicated aircraft, to fulfill the larger-scale needs of Canadian businesses, freight forwarders, shippers and individual customers. The first of these dedicated 737-800BCFs are expected to be in service by the second quarter of 2022.
Throughout 2022, WestJet Cargo will grow its fleet of 737-800BCFs, to work in tandem with the current offering of WestJet’s existing Cargo business. The 737-800 narrow body aircraft is quick to load and fly, enabling WestJet Cargo to offer greater fuel efficiency, flexibility and frequency for its customers. WestJet Cargo routes and scheduled services will accommodate the diverse needs of cargo customers using WestJet’s existing network and highly skilled 737 pilots.
WestJet Cargo’s ability to ship on dedicated freighters or in the cargo hold on commercial routes provides cargo customers with increased reliability, flexibility and capacity to transport their diverse shipments to their chosen destination.
Travellers in the US are set to enjoy more choice in the air, with the formal launch of Breeze Airways announced last week.
Previously known by the code name “Moxy”, the new airline is the brainchild of experienced airline executive David Neeleman, who is renowned for having established four successful airlines during his career.
With the experience of establishing the likes of Morris Air, WestJet, Jet Blue and Azul, each of Neeleman’s new entrants are notable for introducing a variety of innovations to the market.
Today considered commonplace; leading customer experience improvements include e-ticketed bookings, inflight TV streaming and the opening up of routes to city pairs previously not served by existing carriers.
(Reuters) – The Canadian Transportation Agency said on Tuesday Onex Corp will need to amend its by-laws to meet the country’s ownership rules related to its proposed C$3.5 billion buyout deal of Canada’s second-largest carrier WestJet Airlines.
The agency has sought the amendment to Onex’s by-laws to ensure that matters related to WestJet are voted where a majority of Canadian directors are present.
WestJet said it is in the process of reviewing the determination.
Air Canada had challenged Onex Corp’s proposed acquisition of WestJet Airlines, on grounds that the deal may not meet the country’s ownership rules. (https://reut.rs/2LHqQvk)
Air Canada had argued that the likely presence of Onex co-investors such as foreign wealth funds and carriers, and “the opaque nature” of the deal to buy WestJet through company subsidiary Kestrel Bidco, will make it harder to ensure compliance with ownership laws.
Under Canada’s Transportation Act, carriers must be Canadian and controlled by Canadians in order to hold a domestic licence.
Shareholders of WestJet Airlines in July voted in favor of the Onex deal.
Under Canadian rules, foreigners cannot own more than 49% equity in a Canadian airline. The rules further restrict a foreign airline and any single foreign owner from controlling more than a quarter of voting interests in a Canadian carrier.
Onex did not immediately respond to Reuters request for comment.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Uttaresh.V)
WestJet and Delta Air Lines today announced that their proposed U.S. – Canada transborder joint venture has received clearance under Canada’s Competition Act from the Canadian Competition Bureau. The CCB issued a no-action letter confirming that it does not intend to challenge the proposed joint venture agreement between WestJet and Delta Air Lines.
“Today’s clearance by the CCB is an important step towards satisfying the conditions necessary to implement the proposed WestJet-Delta transborder joint venture,” said Ed Sims, WestJet President and CEO. “We thank the CCB for its timely and thorough review. The joint venture will lead to more consumer choice, connectivity, and economic benefits on both sides of the border by growing U.S.-Canada business and tourism travel.”
Ed Bastian, Delta’s CEO, said, “This significant achievement brings us closer to implementing a joint venture that provides a world-class experience for customers travelling between the U.S. and Canada. The joint venture between Delta and WestJet will create an expanded network with more frequencies and destinations, improved airport connections and significantly enhanced frequent flyer benefits.”
The proposed joint venture between the two airlines is still subject to regulatory approval from the U.S. Department of Transportation.
Upon receipt of all regulatory clearances or approvals in the U.S., the new joint venture will enable Delta and WestJet to deepen their existing partnership with expanded codesharing, reciprocal elite frequent flyer benefits, optimized growth across the U.S.-Canada transborder networks, and co-location at key hubs with initiatives designed to deliver a more seamless guest experience. The partners will also begin implementing joint sales and marketing activities and increase belly cargo cooperation.
Further information about WestJet and Delta Air Lines is available at westjet.com and delta.com.
(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).
Including debt, the deal is valued at about C$5 billion.
As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.
The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.
The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.
The deal is expected to close in the latter part of this year or early next year, the company said.
CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.
(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)
Boeing today delivered the first of ten 787 Dreamliners to WestJet, marking the start of the airline’s global expansion. Having long operated a fleet of Boeing single-aisle jets, WestJet will use the super-efficient, long-range 787-9 Dreamliner to profitably serve new international routes.”Today’s delivery marks a new chapter for WestJet,” said Ed Sims, president and CEO of Calgary-based WestJet. “Boeing’s 787 Dreamliner is one of the most technologically advanced aircraft ever flown and is the perfect platform for our transition to a global network carrier. We look forward to bringing Canadians to the world and the world to Canada in comfort and style.”
This spring, WestJet will use the 787-9 – the longest-range Dreamliner that can fly 7,635 nautical miles (14,140km) – to offer the first-ever flight connecting Calgary and Dublin. The airline will also offer non-stop Dreamliner service between Calgary and London Gatwick and Calgary and Paris.
The 787 Dreamliner – the fastest-selling widebody jet in history with about 1,400 orders – allows airlines to reduce fuel use and emissions by 20 to 25 percent and serve far-away destinations. The combination of super fuel efficiency and long range has helped airlines save more than 30 billion pounds of fuel and open more than 210 non-stop routes.
WestJet’s 787-9 will accommodate 320 passengers in a three-class configuration. The Dreamliner’s passenger-pleasing interior, which includes large windows, lower-cabin altitude and smooth-ride technology, complements WestJet’s all-new business cabin featuring the carrier’s first lie-flat seats.
“We are excited to welcome our friends at WestJet to the Dreamliner family. The airline has achieved impressive growth with the Boeing 737 and will now use the 787’s unmatched performance and passenger comforts to profitably launch a new ‘global era’,” said Ihssane Mounir, senior vice president of Commercial Sales & Marketing for The Boeing Company.
In preparation for its new Dreamliners, WestJet recently added digital solutions powered by Boeing AnalytX, to optimize its operations. These include Airplane Health Management, which provides predictive analytics to optimize WestJet’s 787 fleet operations, as well as Toolbox, which delivers real-time information for technicians to quickly resolve maintenance issues and keep airlines on schedule.
(Reuters) – WestJet Airlines Ltd and JetBlue Airways Corp founder David Neeleman is planning to launch a new budget airline in the United States, with $100 million in startup capital, according to a report from the Airline Weekly.
The airline, tentatively called Moxy, has secured orders for 60 Bombardier CS300 aircraft, the publication said, citing people familiar with the matter. (https://bit.ly/2HYULKP)
The report also said that former Air Canada Chief Executive Officer Robert Milton and former International Lease Finance Corp CEO Henri Courpron are among early investors along with Neeleman himself.
Bombardier declined to comment on the report, while Neeleman was not immediately available for comment.
(Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta)
Boeing’s slow-selling 737 Max 7 has a big fan in Western Canada. WestJet Airlines will become the second carrier next year, after Southwest Airlines Co., to operate the smallest version of Boeing’s upgraded workhorse. The Calgary-based company is set to receive five of the single-aisle jetliners next year.
“We love those planes,” WestJet Chief Executive Officer Gregg Saretsky said in an interview, citing the aircraft’s range and 12 additional seats compared with the Boeing 737-700, a linchpin of the airline’s fleet. “It’s great for long, thin markets.”
Canadian aircraft manufacturer Bombardier has been dealt another blow in the company’s search for orders of its new C Series aircraft family. Canada’s WestJet has stated that it does not see a fit for the airplane in its current fleet plans. The new C Series airplane has a seating capacity range of between 100 and 150 seats. WestJet reports that this size aircraft is too small for its main route services going forward, and too big for its regional routes. WestJet is currently focusing on utilizing 168 seat Boeing 737-800 aircraft for its main service routes, and has 25 of the new Boeing 737 Max 7, and 40 of the 737 Max 8 airplanes currently on order. For its regional feeder network, WestJet does operate Bombardier’s Q400 turboprop aircraft. The airline does operate some smaller jet aircraft, but it’s looking to offload these airplanes going forward. The airline recently announced that it sold 10 of its smaller Boeing 737 series 700 airplanes to Southwest Airlines, as part of its strategy to move away from the smaller 130 seat models.
In other WestJet news, the airline has also stated that it’s seeking to slow down the scheduled deliveries of its Bombardier Q400 turboprops it has on order. The giant drop in oil prices has had a devastating effect on the economy of the Canadian province of Alberta, and has resulted in dropping passenger traffic numbers in the effected areas. WestJet also stated it’s in discussions with the Boeing Company to possibly defer delivery of 3 new 737 airplanes, and has plans to return 9 leased aircraft to their owners in the next 2 years.
Bombardier currently has 243 firm orders for the C Series aircraft, with the programs cost $2 billion over its original budget of $3.4-billion. The Quebec government recently stepped in to help shore up Bombardier’s balance sheet, with a $1 billion US financial contribution to the program.
