Travel Distribution In Canada
Duncan Bureau, Vice President Sales, and
Owner, WestJet
Kevin Mitchell, Chairman, Business
Travel Coalition Jean Covelli, Travel Administrator, Rich
Products Corporation; President, The Travel
Team, Inc.
Duncan Bureau, Vice President Sales, and Owner
WestJet Overview»Canada’s leading low fare airline»Currently 38 destinations with scheduled service
within Canada, the United States and the Caribbean
»WestJet employs over 6,000 people»Guest Experience and Performance
– Top five North American on-time performance, completion rate and baggage rates
– Employee ownership and a company wide commitment to our guest experience
WestJet Overview continued…» WestJet operates the most modern fleet in North
America (average age 2.5 years) currently a fleet of 65 Boeing Next-Generation 737 aircraft
» An additional 21 Boeing Next-Generation 737 aircraft committed for delivery between 2007 and 2009
» WestJet named Canada's most admired corporate culture in 2006
» WestJet Vacations» WestJet Lounges
63 Schedule and Charter Destinations
In 11 years WestJet has built a significant network; growing from five scheduled destinations to 65 scheduled and charter.
Charter & Scheduled Transborder as % of Total ASMs
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jan-0
6
Feb-06
Mar-06
Apr-06
May-06
Jun-0
6Ju
l-06
Aug-0
6
Sep-0
6
Oct-06
Nov-06
Dec-06
Jan-0
7
Feb-07
Mar-07
Apr-07
May-07
Jun-0
7Ju
l-07
Aug-07
Sep-07
Oct-07
% Transborder % Charter
*Jan – Dec 2006 based on actual data; Jan 2007 – Oct 2007 based on scheduled and Business Plan data
Winter Schedule Winter Schedule
Summer ScheduleSummer Schedule
Matching our capacity to demand leverages seasonality of travel to maximize revenue
Strategic Fleet Deployment
Fleet Growth
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
ASM
s (0
00,0
00)
Projected Growth
57%55%
48%
30%
19%
17%13%
15%
10%
10%
Fleet Count 22 27 35 44 54 56 63 70 76 86 92
Estimates
We plan for continued ASM growth and fleet expansion to 92 aircraft by 2010
Domestic Market Share Growth - RPMs 1999 – 2006
8% 11%17%
23%26%
29%32% 34%
0%
10%
20%
30%
40%
1999 2000 2001 2002 2003 2004 2005 2006
WestJet expects to continue its profitable market share growth.
Consistent Annual Revenue Growth
WestJet Among the Top Airlines in North America – Q1 2007
1Q07 Pre-tax margin (Incl. Interest & Profit Share / excl. Non-recurring expenses)
11%10%
7%
2%1% 1% 1% 1%
-3% -3%
-5%
-7%
-10%
-5%
0%
5%
10%
15%
Record Year-End Results 2006» Record net earnings of $114.7 million » RASM increased 9.2 % to 14.2 cents
– Increased load factor 3.6 percentage points to 78.2%– Yield increased 3.4% to 18.1 cents– Increased ASMs 17.3% to 12.5 billion
» Growth– Twelve new aircraft– Announced two new destinations West Palm Beach,
Florida & Nassau, Bahamas – Ancillary revenue
• Continued success of buy on board products• Launch of WestJet Vacations
Record earnings for any year in WestJet history.
Financial and Growth» Achieve an average annual compound
growth rate in available seat miles of 10%Continued fleet expansionContinue commercialization of scheduleContinue expansion of domestic, transborder and international destinations
Bundle pricingWestJet VacationsPoint-of-sale U.S.InterlineAncillary Revenues
Margins and Costs»Have the lowest sustainable cost per
available seat mile, excluding fuel, in North America
Sustained focus on cost control and reduction Increased fleet utilization Most modern fleet in North America
Guest Experience and Performance» Deliver on guest interaction that is unique
to WestJet
» Achieve top five North American on-time performance, completion rate and baggage rates
• Through employee ownership and a company wide commitment to our guest experience
People and Culture»People and Culture
– Highly engaged and committed employee base– Employee share purchase plan participation
rate over 80%– Profit share of $94,922,491 paid to WestJetters
up to March 31, 2007– Commitment to training and development
»Over 2,000 people hired in 2006»Still receive over 1,000 resumes per week
1,964,1898,0511,304,7794,89739%$659,4103,154Totals:
$ ZZZ,ZZZ #$ YYY,YYY #0.00%$$ XXX,XXX#YVR-YYJ
$ ZZZ,ZZZ #$ YYY,YYY #53.31%$$ XXX,XXX#YEG-YYC
$ ZZZ,ZZZ #$ YYY,YYY #36.62%$$ XXX,XXX#YEG-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #49.88%$$ XXX,XXX#YHZ-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #19.18%$$ XXX,XXX#YOW-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #33.01%$$ XXX,XXX#YWG-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #38.41%$$ XXX,XXX#YVR-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #60.98%$$ XXX,XXX#YVR-YYC
$ ZZZ,ZZZ #$ YYY,YYY #48.93%$$ XXX,XXX#YYC-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #21.69%$$ XXX,XXX#YUL-YYZ
Ttl Mkt Value($ X + $ Y)Ttl Mkt FltsOther Mkt ValueOther Mkt
FltsWS Air Mkt ShareAvgTicket
WS Air MktValue
WS Air Mkt FltsMarket Pair
June 01, 2005 - May 31, 2006
A COMPANY
WestJet Market pair
1,964,1898,0511,304,7794,89739%$659,4103,154Totals:
$ ZZZ,ZZZ #$ YYY,YYY #0.00%$$ XXX,XXX#YVR-YYJ
$ ZZZ,ZZZ #$ YYY,YYY #53.31%$$ XXX,XXX#YEG-YYC
$ ZZZ,ZZZ #$ YYY,YYY #36.62%$$ XXX,XXX#YEG-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #49.88%$$ XXX,XXX#YHZ-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #19.18%$$ XXX,XXX#YOW-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #33.01%$$ XXX,XXX#YWG-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #38.41%$$ XXX,XXX#YVR-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #60.98%$$ XXX,XXX#YVR-YYC
$ ZZZ,ZZZ #$ YYY,YYY #48.93%$$ XXX,XXX#YYC-YYZ
$ ZZZ,ZZZ #$ YYY,YYY #21.69%$$ XXX,XXX#YUL-YYZ
Ttl Mkt Value($ X + $ Y)Ttl Mkt FltsOther Mkt ValueOther Mkt
FltsWS Air Mkt ShareAvgTicket
WS Air MktValue
WS Air Mkt FltsMarket Pair
June 01, 2005 - May 31, 2006
A COMPANY
WestJet Market pair
Corporate Agreement Structure» WestJet requires the following reporting:
Air Carrier Validation Report (WestJet vs. Other) Total net domestic spend Total net transborder spend
» WestJet does a financial gap analysis / cost of sale internally and determines opportunity
Corporate Agreement Structure (cont’d)» WestJet creates corporate proposal
Revenue share incentive payments based on achieved volume target
Discounted at source net programs
» Present proposal» WestJet will draft contract and send to Corporation
via email for review» Contracts are discussed and approved by both
parties, then circulated for signatures » Contracts reviewed quarterly based on reporting
Thank you!
For More Information…
Bryan Wolfenden, Director, National and Corporate Accounts, WestJet Tel: 905-364-2018 [email protected]://www.westjet.com/
Jean Covelli, Travel Administrator, Rich Products Corporation; President, The Travel Team, Inc.Tel: [email protected] http://www.thetravelteam.com/
Kevin Mitchell, Chairman, Business Travel CoalitionTel: [email protected]://businesstravelcoalition.com/
Association of Canadian Travel Agencieshttp://www.acta.ca/September 18, 2007