WestJet Rewards - WS Orders 20 Bombardier Dash 8-Q400s, Options 25 More

Westjet PR:
http://westjet2.mediaroom.com/index.php?s=43&item=659

Airline to take delivery of up to 45 new turboprop aircraft over the next six years

CALGARY, May 1, 2012 /CNW/ - WestJet today announced it has selected Montreal-based Bombardier Inc. to supply aircraft for its new regional airline, expected to launch in the second half of 2013. The airline will fly the Bombardier Q400 NextGen to new cities, existing destinations not currently connected by WestJet, and will allow for schedule improvements on certain routes where a smaller aircraft can efficiently provide greater frequency.

"We are very impressed with the Q400," commented Gregg Saretsky, WestJet President and CEO. "Both ATR and Bombardier put forward excellent proposals and ultimately we believe the Bombardier Q400's combination of range, speed and seat density is the best choice to meet the needs of the market and how we plan to operate the regional airline. We look forward to working with another great Canadian company."

"This is a very proud day for Bombardier," said Mike Arcamone, President, Bombardier Commercial Aircraft. "We are thrilled that WestJet has selected the Q400 NextGen aircraft for its fleet expansion requirements. The Q400 NextGen aircraft has long been recognized as the turboprop best suited to perform in the robust Canadian and U.S. landscape and environments. Our new-generation turboprop aircraft fits perfectly into this iconic Canadian airline's brand and we are pleased to welcome WestJetters and their guests to our Bombardier family."

WestJet has signed a letter of intent to purchase 20 Q400s with the option to purchase a further 25 aircraft. The airline expects to announce its initial regional schedule using the Q400s later in 2012.

Forward-looking information advisory
This news release contains certain information and statements that may constitute forward-looking information within the meaning of applicable securities laws. The use of any of the words ''expect", ''will", ''schedule'' and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to: WestJet's expectation that it will launch its regional airline in the second half of 2013, the expectation that the regional airline will fly the Bombardier Q400 NextGen to new cities and existing destinations not currently connected by WestJet, the expectation that the regional airline and Bombardier Q400 NextGen will allow for schedule improvements on certain routes where a smaller aircraft can efficiently provide greater flight frequency, expected synergies between Bombardier's new-generation turboprop aircraft and WestJet's brand and its expectations for operation of the regional airline and WestJet's expectation that it will announce its initial schedule utilizing the Q400's later in 2012.

The forward-looking information contained in this news release reflects several material factors and expectations and assumptions of WestJet including, without limitation, WestJet's current strategic plan, capital budget and forecast, WestJet's analysis of the market for and requirements of its short-haul regional airline including fleet type and size and network design, WestJet's experience in creating and growing a low-cost domestic airline, and currently available implementation plans.

WestJet believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: general economic conditions, the competitive environment for a short-haul regional airline, regulatory requirements, aircraft manufacturer information, changes in domestic airline industry conditions, volatility of fuel prices, WestJet's ability to access sufficient capital from internal and external sources, the improvements and synergies currently expected upon the launch of the regional airline using the Q400 may not occur in the manner or to the extent currently anticipated, the launch of the regional airline or the announcement of the regional airline flight schedule may not occur on the timelines currently anticipated, and other factors and risks described in WestJet's public reports and filings. WestJet's public reports and filings are available on WestJet's profile at www.sedar.com.

The forward-looking information contained in this news release speaks only as of the date of this news release, and WestJet does not assume any obligation to publicly update or revise such information to reflect new events or circumstances, except as may be required pursuant to applicable laws.


Commentary from Globe and Mail:
http://www.theglobeandmail.com/report-on-business/westjet-picks-bombardier-plane-for-regional-service/article2418751/

WestJet Airlines Ltd. (WJA-T14.23-0.37-2.53%) has selected the Bombardier Q400 to be the turboprop for its new regional carrier, choosing the Canadian-built plane over the French-Italian ATR 72-600.

The Calgary-based airline will order up to 45 of the Q400s over the next six years, WestJet chief executive officer Gregg Saretsky said Tuesday.

Surprising...absolutely no one.

Look forward to seeing them in the sky, and the competition they will bring to the west coast routes.

Will this news affect planned deliveries of 737's?

Will this news affect planned deliveries of 737's?

I would expect not as the mainline is still growing. In fact, 3 planned lease returns have been cancelled to accommodate Thomas Cook charter flights. Also, the Regional airline will be operating on a separate operating certificate from that of Westjet.

...and will allow for schedule improvements on certain routes where a smaller aircraft can efficiently provide greater frequency.

I suppose that means we can expect to see the Q400 on the YEG-YYC route, the same way AC flies mostly DH3's.

I suppose that means we can expect to see the Q400 on the YEG-YYC route, the same way AC flies mostly DH3's.

The Q400 would be good on that route. It's comfortable, it's quieter than other turboprops and with the lower seating capacity, WestJet could dial up the frequency on the route very easily. IFE doesn't have a lot of value on a <1-hour flight when most people own laptops and tablets these days.

That's why I was curious about scheduled 737 deliveries as with the downgauging on some current mainline routes such as YEG-YYC plus continued delivery of new 737's whether WS would have an oversupply of that aircraft. Or will mainline expansion and partnerships with TCook soak up any oversupply?

I suppose that means we can expect to see the Q400 on the YEG-YYC route, the same way AC flies mostly DH3's.

I hope so! Those DH3s have seen better days...Some of them are pushing 20, almost 30 years old!

Considering how many 737's they can put on this route, I'm sure they could fill 1.5 or 2x as many 74 seat DH4s! that could actually put them in, dare I say it, real competition with AC on the route! Right now, I don't know many business pax. who will sit at the airport for hours waiting for one of 7 or 8 daily flights on Westjet when AC offeres AT LEAST hourly service...Add that to the flythru service offered in YEG (for any airline's pax doing an intra-Alberta day trip), and it could look very good for Westjet!!!

Very good news for travel to/from many "secondary" markets where AC/Jazz currently holds a stranglehold.

Q400 is a much nicer aircraft than the DH3's.

Any chance that WestJet will open new routes with the Q400s or will they stick to existing routes? Maybe WestJet will expand to NW cities like SEA, PDX, GEG, BOI or as far as SLC from Calgary??

Any chance that WestJet will open new routes with the Q400s or will they stick to existing routes? Maybe WestJet will expand to NW cities like SEA, PDX, GEG, BOI or as far as SLC from Calgary??

I would imagine so. Looking at their route map, they have the NE, SE and SW covered quite well with their codeshares with AA. The NW is the big gap and there isn't any feasible way to codeshare to the destinations you mentioned. It would make sense to build up the YYC hub with nearby US cities.

Does anybody else see a little irony in WestJet flying a turboprop?

Does anybody else see a little irony in WestJet flying a turboprop?

I suspect they will come up with a new brand.

But to be pedantic ;) , is a turboprop really the opposite/converse of a "jet" to support the usage of the term "irony"?

However, they did have a habit of using the term "all-jet" service when issuing press-releases in the past for new routes.

WestProp
WestTurbo


or re-brand the whole thing to WestTurbine so it applies to both jets and turboprops.

FWIW I think they'll leverage the WS brand and make it something like Westjet Regional.

Does anybody else see a little irony in WestJet flying a turboprop?

Well, to the general public, that may seem like an irony.

But in the technical sense, these days the propellers on most airline sized aircraft are spun by a jet engine (and called turboprops). Long gone are the DC-7 days of transport aircraft with piston powered propellers. You have to get down to to a plane of about an 8 passenger capacity for it to not be jet driven.

And on the other hand, also long gone are the pure turbojets of the 707 / DC-8 era. Those original engines developed into turbofans and today's jet engines are now called high bypass turbofans. With each generation, more and more of the engine's power comes from a spinning fan in front of the engine, not high velocity exhaust being spewed out the back. The concept of a fan is the same as a propeller.

To throw another spin (no pun intended) to the discussion, when the Lockheed Electra (1st widely used turboprop) was introduced, the airlines were very adamant in advertising it as "jet powered". Indeed, there was a lot of differences between flying an Electra vs a DC-7.
That advertising spin quickly lost muster when shortly afterwards the 707 hit the market with a roar (pun intended). That turbojet was such a radical change that the public couldn't perceive anything with a propeller as being "new" technology. I guess that same misguided perception lives on today.

FWIW I think they'll leverage the WS brand and make it something like Westjet Regional.

Actually, the industry standard of using "xxx Express" for naming regional carriers has a better phonetic sound in this instance. "WestJet Express" :)

Actually, the industry standard of using "xxx Express" for naming regional carriers has a better phonetic sound in this instance. "WestJet Express" :)

Quite so as AC regional carrier Jazz adopted this new moniker. However while I'm very often wrong I just can't see why WS would pick one so similiar to it's competition when it has always created and cultivated it's own brand identity. Just MHO of course.

Very good news for travel to/from many "secondary" markets where AC/Jazz currently holds a stranglehold.

Q400 is a much nicer aircraft than the DH3's.

Secondary markets like YSB?:D Would be nice to have WJ back here.

Secondary markets like YSB?:D Would be nice to have WJ back here. They already fly to YSB.....they call it Porter;) !

Secondary markets like YSB?:D Would be nice to have WJ back here.

WJ/Air Labrador served YSB ??

They already fly to YSB.....they call it Porter;) !

lol :) i wonder how long till AC will fly to YSB if both west Jet and Porter fly there???

AC will stop flying quickly.:eek:

http://www.calgaryherald.com/business/WestJet+unveils+Bombardier+planes+regional+service/6856178/story.html

The Bombardier Q400 planes, which have a list price of $30 million apiece, seat 70 to 80 passengers and are specifically designed for short-haul flights. Before settling on Bombardier, WestJet also looked closely at aircraft manufacturer ATR and its 72-600 plane.

“It was a very tough competition, and it is a very, very big deal for us to be able to work with WestJet for the next 20-25 years,” said Bombardier spokesperson Marc Duchesne, who was also in Calgary for Thursday’s event. “We’re very proud. For us, we look at it as, it’s a Canadian airline, and we wanted to be part of that.”

http://www.ainonline.com/aviation-news/aviation-international-news/2012-09-03/westjet-q400-order-goes-firm

Calgary-based low-fare airline WestJet last month converted a conditional order for 20 Bombardier Q400s to firm status. In the process, it secured options on another 25 of the turboprops, potentially raising the value of the order to $1.59 billion based on list prices.