Westjet 2005 Annual Report Download - page 23

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2005 WESTJET ANNUAL REPORT
21
Flight Operations and Inflight
The flight operations and inflight categories relate to
the cost of WestJetters onboard our aircraft, including
pilots and flight attendants – their training salaries,
wages, stock option expenses and travel costs. We also
include the costs of the supporting infrastructure for those
flight crews, such as our dispatch, operations control and
crew scheduling functions.
The cost per ASM for flight operations (excluding
navigational charges) increased in 2005 by 9.2% or 0.07
cents over 2004, largely due to an increase in stock-based
compensation expense for our pilot group. In 2005, we
recognized $16 million in stock-based compensation
expense, an increase of 45.5% as compared to $11 million
in 2004. In 2005, inflight cost per ASM increased 2.0%
over 2004. Our inflight team grew 7.9% in 2005, which
correlates directly to the growth of our business.
On April 14, 2005, we introduced our
convenient and cost efficient online
check-in service for domestic travellers.
WHEN DEMONSTRATING OUR CONTINUED
COMMITMENT TO PROVIDE GUESTS WITH THE SAFEST,
MOST RELIABLE AIR TRAVEL, CERTAIN BASIC SAFETY
PRECAUTIONS SHOULD BE OBSERVED (AS THEY WERE
BY WESTJET IN 2005), INCLUDING THE FOLLOWING:
1. DO SURPASS the technical and operational hurdles
necessary to achieve 180 Minute ETOPS certification for the
Boeing Next-Generation 737 aircraft from Transport Canada
after 18 months of adhering to the certification process.
2. MANAGE TO earn Transport Canada’s full confidence
with respect to proving our ability to flight plan and
train our pilots correctly and to maintain our aircraft
to high standards.
3. AS A RESULT, ENSURE that we are granted access to
cost-saving direct routings to any part of the world.
figure 21-A
Safety instructions –
please read carefully