Westjet Places Major Boeing 787-9, 737-10 Order

‍CALGARY — WestJet (WS) today placed a firm order with Boeing for another seven Boeing 787-9 Dreamliner, plus four options, alongside a massive order for 60 more 737-10s with 25 more options.

The order represents the most significant order from the Calgary-based carrier in its history, as well as the largest ever order for Boeing aircraft in Canadian history.

The airline now has a firm order book, the largest in Canada, comprising seven Boeing 787-9s, 15 737-8s, and 102 737-10s. Firm orders total 125 Boeing jets, and with options included, that number tops out at at least 176.

"With the addition of these aircraft, WestJet has the largest order book of any airline in Canada, and will double our fleet of Dreamliners, underpinning our growth plans and our commitment to affordable travel options for Canadians and exciting career paths for our people," said WestJet chief executive officer, Alexis von Hoensbroech. "These highly efficient and comfortable aircraft are critical to the growth and renewal of our fleet and will also significantly improve our fuel consumption."

CEO of Boeing Commercial Airplanes, Stephanie Pope also stated, "We are honored that WestJet has once again placed its trust in Boeing with a major investment that builds on our three decades of partnership and solidifies their fleet for the decades ahead," continuing: "We look forward to supporting WestJet's exciting growth as they leverage the 737 MAX and 787 Dreamliner to serve even more passengers with great efficiency and comfort."

The new order is slated to be fulfilled by 2034; however, a specific timeline hasn’t been announced. As the fleet currently stands, this orderbook represents an over 80% increase in fleet size, with a 113.5% increase including options.

The Significance of the Dreamliner Order

The new 787s will support WestJet’s ambition to grow its long-haul network, as well as improve operational efficiency, alleviating the stress that the current fleet of 7 is under during the peak summer season.

The airline was forced to wet-lease a Boeing 777-200ER from Spanish charter operator Privilege Style, as it had only six aircraft during June. The situation highlighted the strain the fleet was under during the summer, operating a very demanding schedule to eight Asian and European destinations from its hub in Calgary (YYC) with no authentic operational spares for support if one was out for a multi-day period. Many days, it even sees its entire fleet in the air at the same time.

The Boeing 777 had been operating the Calgary to London Heathrow (LHR) leg from late May to late June, as C-GYRS was being repaired in San Antonio (SAT) due to unscheduled maintenance, incurring significant operational costs to the Canadian carrier.

After operating four former Qantas Boeing 767-300ERs from 2015 to 2020, WestJet introduced the 787 to its fleet in 2019, from an original firm order of 10 plus 10 options placed in 2017. The remaining order was cancelled in 2022 after seven deliveries, nine aircraft completed, plus another on the production line in Charleston. The pair of completed airframes found new life at Royal Air Maroc (still with WestJet-branded cabins), while the 10th went to Air Canada.

It’s not yet clear what a 14-unit fleet of widebody aircraft will look like, but this opens the door to potential expansion outside of Alberta if the carrier wants to go further. A significant constraint of the 787 in Calgary (YYC) is the altitude and the heat in the summer.

Let’s use Dubai (DXB) as an example, as WestJet had previously held slots there. The most direct route between the two cities has a flight time of approximately 14 hours; however, due to Russian airspace restrictions, the duration can increase to up to 17 hours, making it one of the longest flights in the world. 

Now, the issue with Calgary is that, while it has the longest runway in Canada at 14,000 feet, the airport is also nearly 3,600 feet above sea level. Combine that with temperatures that can get into the upper 30s (°C), and a route this long is all but impossible with the 787.

If WS wants to travel greater distances with the Dreamliner, it will have to expand operations beyond YYC. YVR is a prime candidate for this, with cooler temperatures on average and an elevation of a whopping 14 feet. Air Canada already flies their Boeing 787-9s to Dubai from YVR. Additionally, Edmonton, Alberta, is served only by KLM (KL) from Amsterdam intercontinentally. 

The airport recently launched a petition for airlines to start a flight to London. WestJet previously served London Gatwick (LGW) from Edmonton with its Boeing 767s, and British Airways served London Heathrow (LHR) with its 787s, until a few years ago.

The Boeing 737-10 at WestJet

WestJet is betting big on the 737-10, which remains to be certified 4 years after its first flight. Certification isn't expected until early next year, pending a design resolution for an issue found in the CFM LEAP-1B’s anti-ice system.

Nonetheless, WS is going all in on the type for its future fleet, likely replacing its older Next Generation 737 jets. As it stands now, WestJet will be the global launch operator for the longest Boeing 737 variant.

The carrier currently plans to operate the MAX 10 with 3 rows of 12 premium seats and 200 economy seats in the back, a configuration similar to Air Canada’s A321ceos, minus a row of J-class seats.

The Canadian carrier placed its initial MAX 10 order in September 2022, comprising 42 firm orders and 22 options. Today, that total grew to 102 firm orders with 47 options, meaning up to 149 737-10s.

Back when that order was placed, WestJet CEO Alexis Von Hoensbroech said, “The 737-10 will be a game changer, with one of the lowest costs per seat among mid-range aircraft. This will foster our low-cost positioning and affordability for Canadians. In addition, with its lower fuel consumption and reduced emissions, the 737-10 will further improve the environmental footprint of our fleet,”.

And, like the announcement almost three years ago, it was emphasized that the WestJet group had one of the youngest fleets among established North American carriers, with an average age of under a decade.

Fending Off Long-Haul Competition

Last month, Alaska Airlines (AS) announced its intention to consolidate all 787 operations within the Alaska Air Group and centralize them in Seattle (SEA). Like WestJet, Alaska’s business model is significantly based on connections through its central hub, located on/near the Pacific coast of North America.

As per last month’s announcement, Alaska’s initial intercontinental network will consist of Seoul (ICN), Tokyo-Narita (NRT), Keflavík-Reykjavík (KEF), London Heathrow (LHR), and Rome (FCO). WestJet flies to all of these destinations. Out of WestJet’s nine intercontinental destinations served from Calgary, there will be overlap with Alaska on more than half of them.

It remains to be seen how this will play out. Still, likely, the two carriers will directly compete for passengers traveling from the western half of the United States, from cities like Los Angeles (LAX), San Francisco (SFO), Phoenix (PHX), and Las Vegas (LAS), to these Asian and European destinations.

AS will initially offer a 2-class product on their 787-9s, featuring 34 lie-flat enclosed suites and 266 main cabin seats, including 79 premium economy seats (elevated soft product with more legroom), totaling 300 passengers. WestJet’s Dreamliners feature less than half the business class seats, 16 reverse herringbone pods up front, and 28 actual premium recliner seats behind that, both ahead of the second doors. 276 economy seats fill sections 2 and 3, totaling 320 seats.

With similar networks, connections, and complex products, as well as similar colour palettes, especially on the outside, it will be interesting to see how the two carriers carve out their market.