Westjet 2001 Annual Report Download - page 10

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08
The delivery of our first new aircraft from Boeing was
celebrated by all WestJetters as it was welcomed into our fleet
during the profit sharing celebration at our new Calgary hangar
on May 25, 2001. To commemorate this historic event, one
hundred WestJetters who had worked on this huge project
joined the executive team at Boeing Field in Seattle for the
ceremony.
With their superior speed, comfort, capacity, reliability, and
30% greater fuel efficiency on a per ASM basis, our new
Boeing 737-700 aircraft have surpassed expectations and are
the ideal aircraft to facilitate WestJet’s continued expansion
across Canada. With four in our fleet at December 31, 2001,
and ten expected in 2002, WestJet will continue to grow
capacity at a rate of approximately 45% in 2002 as we add new
destinations and increase the connectivity of our network.
We continue to reduce the costs associated with our growth
through the further implementation of new technologies. Our
website – www.westjet.com – now generates approximately
40% of our overall bookings, reducing the cost per booking
substantially. As well, our Touch ’N Go kiosks are being installed
and accepted by our guests travelling without luggage in
growing numbers across our network.
Our Changing Environment
Since our inception in February 1996, WestJet has operated
through unprecedented changes in the Canadian airline
industry. Canada has lost seven airlines in five years, and 2001
marked the loss of four of them.
The constantly changing airline industry reached a pinnacle of
transformation in 2001, with all North American carriers now
part of an industry very different from the one of a year ago.
Not only have the events of September 11th changed the way
airlines now operate, many other changes took place in 2001
which changed the landscape of the industry entirely.
Our formula for success, on the other hand, has produced
twenty-one consecutive quarters of profitability. We have
achieved the much-envied position of being the lowest-cost
provider of airline seats in Canada as a result of our strict
adherence to our basic business principles, which are the
foundation of our airline.
Notwithstanding our success, WestJet and our industry as a
whole continues to feel the pressure of increasing fees from
airports, insurance surcharges, Nav Canada fees, and Air
Transportation Security Charges (ATSC). Despite this constant
barrage of new fees, WestJet remains committed to fighting
against these charges on behalf of our customers to keep the
cost of flying as affordable as possible.
Our Approach
With any change, comes new opportunities. A hallmark of
WestJet’s corporate character has always been to capitalize on
change, and as a result we remain poised to react quickly and
adjust our operations to take advantage of these new
opportunities.
WestJet has voiced its strong opposition to the proposed
ATSC, through a national advertising campaign launched in
February 2002. In true WestJet spirit, our pilots also took it
MESSAGE TO SHAREHOLDERS