When WestJet Airlines Ltd. secured a contract with Aviation Partners Boeing last Monday, it was another example of why WestJet remains a solid long-term investment in an industry fraught with volatility, analysts say.

The deal, which will see Aviation Boeing install Blended Winglet Technology on WestJet's growing fleet of Boeing 737-700 series aircraft, will make WestJet the first North American airline to employ this technology on the new planes. The equipment is expected to improve the aerodynamic and handling performance of the jets, boost range and reduce fuel burn by 4 per cent.

Such moves -- picking up on a new technology and applying it to improve their bottom line -- are typical of WestJet, said Desjardins Securities Inc. analyst Nadi Tadros.

"On the cost side, they're much more competitive [than other Canadian airlines]," he said. "They will keep piling on more and more of these things to shrink their costs."

Despite a growing fleet of 737s -- the company currently flies 38 Boeing 737s, 19 737-200s and 19 737-700s, and plans to add seven new planes while retiring one old one to finish 2003 with 44 aircraft -- as well as the addition of more routes at a time when capacity is not at a premium, WestJet president and chief executive officer Clive Beddoe said the company is actually shrinking its cost base.


http://makeashorterlink.com/?N218534D4

The fact that they are continuing to cut costs has to concern those at AC, at least those responsible for the AC LCC. It would be foolish to expect people to flock to the new AC LCC just because it is AC. They will need to differentiate themselves from WJ with something other than price. I don't think FF miles will do it.

Doesnt ATA (America Trans Air) have the winglets on its new -800's? Or is meaning that WS will be the first in North America to have them on the -700?

I saw a 737 in MSP a few weeks ago with the winglets (I think it was ATA but could be wrong). What struck me was how tall the winglets were - looked proportionally much taller than 747 or Airbus equivalents.

------------------
Saturday nights should be spent with family.

ATA indeed has (and still does have) winglets on its 738s. I guess the press/news release must have referred to the -700s. Winglets were not offered on any 737NG models other than the -800 and BBJs until the last few months.

I'd imagine WS must have talked to ATA and QF among others about the cost effectiveness of the winglets.

The winglets on the 737NGs may look huge (some FTers have said they look ugly) compared to those found on A320-family, 744s and A330/340s but they're quantified to be very effective.

I dont see the problem with the look. And they sure do the trick. Look at what COPA has done with its winglet equiped -700s.