What's Happening?
Canadian discount airline WestJet has announced a significant expansion of its fleet with an order for 67 new aircraft from Boeing. This order includes 60 Boeing 737 Max 10s and seven 787-9 Dreamliners. The Calgary-based airline disclosed the order on September 3, noting that it has also secured options for an additional 25 Max 10s and four 787s. WestJet's chief executive, Alexis von Hoensbroech, stated that the addition of these aircraft will double the airline's fleet of Dreamliners and support its growth plans. The deal was initially recorded in June on Boeing's website as being from an undisclosed customer. WestJet currently operates 147 737s and seven 787s, and its regional subsidiary, WestJet Encore, operates 39 De Havilland Canada DHC 8-400 turboprops.
Why It's Important?
This order positions WestJet as having the largest order book of any airline in Canada, highlighting its ambitious growth strategy. The acquisition of these highly efficient aircraft is expected to significantly improve WestJet's fuel consumption and fleet renewal. The deal also reflects a pragmatic approach to business between Canada and the USA, as noted by Canadian transport and internal trade minister Chrystia Freeland. The agreement is seen as creating new opportunities, economic benefits, and long-term jobs on both sides of the border. Additionally, Canada is one of Boeing's largest international supply bases, providing aerospace parts for all Boeing commercial airplane models in production.
What's Next?
Boeing has not yet achieved certification of the 737 Max 10 but expects to do so by 2026. As WestJet continues to expand its fleet, the airline will likely focus on integrating these new aircraft into its operations and optimizing its routes for efficiency and growth. The ongoing negotiations between the USA and Canada for a long-term trade agreement may also influence future business dealings and economic relations between the two countries.
Beyond the Headlines
The order comes amid strained relations between the USA and Canada, following hefty tariffs imposed by President Trump on Canadian imports earlier this year. This deal may serve as a positive step towards improving bilateral trade relations and fostering economic collaboration. The expansion of WestJet's fleet could also impact the competitive landscape of the airline industry in North America, potentially leading to increased competition and better services for consumers.
