WestJet News - Is this good or bad for hiring?

[Airbrake]

CALGARY, ALBERTA, Feb 11, 2005 (CCNMatthews via COMTEX) -- WestJet (TSX:WJA) announced today it has finalized a plan that was approved by its Board of Directors in December 2004 to replace its entire fleet of 737-200 series aircraft over the next 12 months with 16 Next-Generation 737 aircraft. The 737-200 fleet consists of 15 operating aircraft and three spares.

As a result of this accelerated replacement schedule, the airline will incur a $47.6 million write-down against its 2004 fourth quarter financial statements to reflect the early replacement of these aircraft. WestJet will realize significant savings by operating a full fleet of Next-Generation aircraft as these aircraft are capable of greater utilization and share a common parts pool, pilot and flight attendant training programs, flight decks, and interchangeable crews and maintenance personnel.

The Next-Generation Boeing 737 aircraft are approximately 30% more fuel efficient on an available seat mile basis compared with Boeing 737-200 aircraft. The decision to replace the 737-200 fleet will significantly lower WestJet's long-term unit operating costs.

Clive Beddoe, WestJet's President and CEO, commented: "We are pleased to be able to pursue this replacement strategy that, upon its completion, will likely result in WestJet having the lowest cost per available seat mile in North America. Furthermore, our guests will be able to enjoy a uniform product on the newest fleet in Canada, equipped with live satellite television, more legroom and leather seats."

[TopperHarley]

In the long term (and assuming everything goes according "to their plan" and vision of the future), this is good news. More efficient aircraft will lead to lower costs, as Bedoe explained, and this will improve profitability. If their costs go down even more, they can further reduce fares, thus stimulating more traffic and increased crew utilization.

Of course, a large investment like this can also involve a lot of risk. If the industry takes a sudden unexpected down-turn again, it could be bad news. Only time will tell.

[Schlem]

My take is that there won't be any hiring for a long time... not until the -200 crews are all typed on the -700... maybe next spring?

[Typhoon pilot]

Late summer or fall if they really push the training through and increase the simulator utilization. Hiring may start again in the fall. I think hiring will continue slowly (albetit really really slowly) all the time. Who knows there maybe more attrition as guys/gals realise the upgrades maybe much longer than expected and just can't afford $$ to wait around. These are just thought's.

[peeelot]

They are also getting 600 and 800 to go with the 700's so I am sure they will still be looking for pilots. I talked to one of the guys who hire for westjet and he said he only has half the resumes that he normally has on his desk. This is good news better chances

[hazatude]

Rumour has it that they will be adding more flights out of YHM.

[greenwich]

Don't worry kiddies, hiring 80 to 100 new pilots in 2005

G