Westjet 2015 Annual Report Download - page 5

WestJet Annual Report 2015 | 3
We continued to evolve our fare bundles product in 2015. In September, we launched enhancements to our Plus
product, including two-by-two seating for more space and privacy, and upgraded amenities and meal options on
longer flights. These new features are in addition to priority boarding and security screening as well as flight change
flexibility that are offered as part of WestJet's Plus product. While these added features provide exceptional value to
our guests, we also expect the enhancements to support ancillary revenue growth on a go-forward basis. So far,
market response to these enhancements has been very positive.
In July, we launched WestJet Connect, our new inflight entertainment system, which we first announced in early
2014. WestJet Connect features wireless broadband internet connectivity and more than 450 movies and television
programs. Guests can access WestJet Connect using their laptops, or via the WestJet app downloaded onto their
mobile devices. Seats on WestJet Connect equipped aircraft have 110 - volt and USB power outlets, allowing all
guests the opportunity to charge or power their devices. We have installed and activated WestJet Connect on 34 of
our Boeing 737s, and two of our Boeing 767s and expect installations to be completed on the majority of our Boeing
737 & 767 fleet by the end of 2016.
We were honored in 2015 to receive several awards highlighting our remarkable brand and culture, as well as the
friendly caring service for which WestJet is known. Among these awards, Waterstone Human Capital named WestJet
one of Canada's 10 most-admired corporate cultures for a record sixth time. The value of our brand was recognized
by several organizations in 2015, as both WestJet and WestJet Vacations received the highest brand equity scores
among airlines and vacation package suppliers in a Nielson EquiTrend study, Brand Finance ranked WestJet in the
top 100 Canadian brands, and CanadianBusiness.com recognized us as having one of Canada’s Best Brands. We were
also pleased that for the third consecutive year, the WestJet/RBC World Elite MasterCard was rated first in the travel
rewards category by MoneySense magazine, remaining Canada’s top travel rewards card because of its high value,
flexibility, premium features and connection to our WestJet Rewards program.
As always, WestJetters are the foundation of WestJet’s success. In 2015, we were pleased to have reached new five-
year agreements with our flight attendants and WestJet Encore pilots. We also welcomed several new members to
our executive team in 2015, including Mark Porter, as Executive Vice President (EVP), People and Culture, Harry
Taylor, as EVP, Finance and Chief Financial Officer and Cam Kenyon, returning as our interim EVP, Operations.
We remain committed to returning value to shareholders. In 2015, we repurchased and cancelled 3,200,000 shares
under our normal course issuer bids (“NCIB”), and in February 2015, announced a 17 per cent increase in our
quarterly dividend, from $0.12 to $0.14. Combined, we returned almost $200 million to shareholders under these
programs in 2015. In February 2016, we announced an amendment to our existing NCIB to increase the maximum
number of shares available for repurchase under the bid from 4 million to 6 million shares, demonstrating our
continued confidence in WestJet’s proven business model and the financial strength of our airline.
Turning to 2016, we continue to feel the impact of economic weakness in Alberta and the Prairie Provinces as well as
the weakening of the Canadian dollar to US dollar exchange rate on our business. We are taking actions to respond
to this economic environment, including adjusting our schedules and redeploying capacity from softer Alberta
markets to markets of greater strength. As we move forward in 2016, we are focused on a number of new initiatives
to evolve our business which we expect to bring value to guests and shareholders alike. These initiatives include:
• Launching an expanded Plus section across our fleet to better penetrate the business and premium leisure
segments;
• Continuing to reconfigure our fleet with larger aircraft to drive down seat mile costs;
• Growing our airline partnerships to expand our network utility; and
• Further enhancing our WestJet/RBC MasterCard program to include new companion benefits to Southern
and European destinations.
Notwithstanding the challenges we are seeing so far in 2016, WestJet has a proven track record of profitability, we
have built the right management team to guide our airline through this period of economic weakness, and we are
confident in delivering on our long-term plan. We are focused on managing the business responsibly for our
shareholders and our ROIC target of 13 to 16 per cent while maintaining the only investment grade credit in the
Canadian airline industry.