Westjet 2009 Annual Report Download - page 34

4 WestJet 2009 Annual Report
certain key performance measures with respect to the new
reservation system;
• our expectation that the new WestJet Vacations Softvoyage
reservation system will allow WestJet Vacations to
successfully expand its sales and distribution channels was
based on the functionalities and technical requirements of
the new system;
• our expectation that WestJet Vacations will be a key
contributor to the future success of our airline was based
on our current strategic plan and forecast;
• our hedging expectations and intent to hedge anticipated
jet fuel purchases was based on our current approved
hedging strategy;
• our sensitivity to changes in crude oil and fuel pricing was
based on our fuel consumption for our existing schedule
and historical fuel burn, as well as a Canadian-US dollar
exchange rate similar to the current market rate;
• our expectation that aircraft maintenance costs will increase
as our fleet ages was based on requirements specified
in our maintenance program and the number of aircraft
off warranty;
• our sensitivity to the change in the value of the Canadian dollar
versus the US dollar was based on forecasted US-dollar spend
for 2010, excluding a percentage of aircraft leasing expense
hedged under foreign exchange forward contracts and option
arrangements, as well as the exchange rate for the Canadian
dollar similar to the current market rate;
• our expected effective tax rate for 2010 was based on
forecasted fi nancial information, tax rates based on current
legislation and expectations about the timing of when
temporary differences between accounting and tax bases
will occur;
• our expectation of future aircraft deliveries was based on
an aircraft delivery schedule from Boeing;
• our assessment that the outcome of legal proceedings in the
normal course of business will not have a material effect
upon our fi nancial position, results of operations or cash
fl ows was based on a review of current legal proceedings
by management and legal counsel;
under the heading “Outlook” on page 40; our belief that, as we
move forward into 2010, it is unclear whether or not the initial
indications of economic improvement are here to stay, referred
to under the heading “Outlook” on page 40; our belief that we
will continue to see pressure on yield in the fi rst quarter, as fi rst
quarter RASM appears to be tracking to year-over-year declines
of less than fi ve per cent, referred to under the heading “Outlook”
on page 40; our belief that 2009 demonstrated our ability to
survive extreme challenges, referred to under the heading
“Outlook” on page 40; our expectation that our strong balance
sheet and low-cost structure will help us successfully navigate
through 2010, referred to under the heading “Outlook” on page
40; our expectation that we are prepared if the recovery is long
and drawn out, referred to under the heading “Outlook” on page
40; and our expectation that our WestJetters are committed to
the continued growth and success of our airline, and our belief
that they will make the best of 2010, referred to under the
heading “Outlook” on page 40. These forward-looking statements
typically contain the words “anticipate,” “believe,” “estimate,”
“intend,” “expect,” “may,” “will,” “should,” “potential,” “plan”
or other similar terms.
Readers are cautioned that our expectations, estimates,
projections and assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
With respect to forward-looking statements contained within this
MD&A, we have made the following key assumptions:
• our expectation that seasonal non-stop service will commence
to Kindley Field, Bermuda, and Samana, Dominican Republic,
in May and June 2010, respectively, was based on our current
and forecasted commercial schedule;
• our expectation that our new reservation system will ensure
we can properly support our evolving business model and
will enhance our ancillary revenue opportunities and airline
partnerships was based on the functionalities and technical
requirements of the new system;
• our belief that we are well on our way back to delivering the
world-class guest experience our guests deserve and have
come to expect was based on our current experiences and