Westjet 2000 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2000 Westjet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 40

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40

MANAGEMENT’S DISCUSSION & ANALYSIS
OF FINANCIAL RESULTS
Page09
Overview
WestJet’s financial performance in 2000, while notable, was only part of a larger story of
the Corporation’s continued preparation for the future by building infrastructure,
managing risk, positioning for opportunities and securing its competitive advantage and
reputation in a rapidly changing industry environment.
As in the four previous years, WestJet continued on a flight plan of controlled and
carefully managed growth. We added six aircraft, introduced 52.6% more available seat
miles into the Canadian marketplace, attracted 411 new full time equivalent employees,
increased revenues by 63.3% to $332.5 million and improved bottom line performance by
91.1% to $30.3 million.
WestJet’s people participated in some new and exciting initiatives as well, which have set
the stage for our continued growth. We expanded our friendly, low-fare service to reach
Canadians on both the Pacific and Atlantic coasts and 15 cities in between. We completed
deals with Boeing and General Electric for the acquisition of 36 new generation 737-700
aircraft to be delivered over the next five years. We purchased two flight simulators, one
for the existing fleet of 737-200 aircraft and another to ensure that our pilots can train,
cost effectively, here at WestJet, for the 737-700s. We watched the construction of our
new hangar and our new administrative headquarters and call centre in Calgary and our
people have moved into the latter, with the move to the hangar set for early 2001. We also
saw some changes made to our senior management team to enhance our culture,
strengthen leadership roles and to ensure the consistency of management style. We
secured the U.S. Government’s Export-Import Bank’s commitment for $1.2 billion ($744
million US) in loan guarantees to assist the financing of our new airplanes. We completed
a successful offering of shares at a time when equity markets were volatile and uncertain,
raising $52.1 million net to further strengthen our balance sheet. Most importantly, our
people celebrated our success and were rewarded with two record distributions of profit
sharing. Throughout the year, WestJetters reinforced a powerful alignment of their