tcook052
Aug 7, 09, 9:04 am
http://www.theglobeandmail.com/report-on-business/westjet-postpones-boeing-deliveries/article1244241/
WestJet Airlines Ltd. is putting the brakes on its growth strategy, slowing delivery of new Boeing 737s as the recession lingers in the airline industry.
The Calgary-based carrier, which already has 79 Boeing 737s in its fleet, had been scheduled to receive another 42 planes between this month and the end of 2013.
But WestJet chief executive officer Sean Durfy said yesterday that the economic downturn continues to erode demand for flights and hurt the airline sector, and even his own company has chopped its travel and entertainment budget by more than 25 per cent.
Boeing Co. is still slated to deliver another seven planes this year, and some of the eight aircraft on order for 2010 should make their way to WestJet as planned. But the order book of seven planes in 2011, 14 in 2012, and six in 2013 will be revised, although details have yet to be finalized with the aircraft manufacturer and leasing firms.
"The attempt is to smooth the delivery of aircraft," Mr. Durfy said in an interview.
WestJet Airlines Ltd. is putting the brakes on its growth strategy, slowing delivery of new Boeing 737s as the recession lingers in the airline industry.
The Calgary-based carrier, which already has 79 Boeing 737s in its fleet, had been scheduled to receive another 42 planes between this month and the end of 2013.
But WestJet chief executive officer Sean Durfy said yesterday that the economic downturn continues to erode demand for flights and hurt the airline sector, and even his own company has chopped its travel and entertainment budget by more than 25 per cent.
Boeing Co. is still slated to deliver another seven planes this year, and some of the eight aircraft on order for 2010 should make their way to WestJet as planned. But the order book of seven planes in 2011, 14 in 2012, and six in 2013 will be revised, although details have yet to be finalized with the aircraft manufacturer and leasing firms.
"The attempt is to smooth the delivery of aircraft," Mr. Durfy said in an interview.