Westjet 2003 Annual Report Download - page 5

I
Dale Tinevez, Director, Airports: He enjoys
water sports in his speedo at Sylvan Lake.
“”
of June 2004. We outfitted the first aircraft of our entire
fleet of 737-700s with blended winglets in September
2003. These wingtip extensions will decrease our costs and
increase the range of our aircraft. The installation of live
satellite television on all of our 700-series aircraft is now
expected to commence in the first quarter of 2004 and
although delayed by a few months, is expected to be
completed by the summer of 2004.
In 2003, we expanded our relationship with the
AIR MILES®loyalty program to offer our guests the ability
to earn AIR MILES reward miles for bookings made on
westjet.com. With an AIR MILES cardholder base of over
seven million people, this reward program provides us
access to a significant percentage of the Canadian
population and is a strong tool for enticing them to choose
WestJet on their next trip.
Throughout 2003 we increased the
accessibility of our fares and schedule
through partnerships with external
distribution channels. Most recently
we commenced a relationship with
Worldspan, a global distribution system
that provides access to our fares and
schedule to thousands of travel agents
worldwide. We also strengthened our
relationship with Expedia.ca, making
WestJet fares available to be
booked on this growing
travel website.
PRESIDENT’S MESSAGE
TO THE SHAREHOLDERS
WestJet completes Initial Public Offering in July 1999, raising $25.9 million (net).
8| 2003 WestJet Annual Report Agreement with Boeing reached for acquisition of new Next-Generation 737 aircraft on February 24, 2000.
WestJet in 2003
“I am pleased to report that not only was 2003 the most profitable year in
our history, but December 31st also marked the completion of our 28th
consecutive quarter of profitability. This record is especially gratifying
given the multiple challenges that we faced throughout the year. ”
2003 WestJet Annual Report |9
“”
It is not an exaggeration to say that 2003 was one of the
toughest years we have faced in our eight-year history.
Demand for travel was affected by a lack of snow in the
west that reduced skiing tourism earlier in the year, two
SARS outbreaks, war in Iraq, a lingering fear of terrorism,
the North American appearance of mad cow disease, and
higher fuel prices which added even greater pressure to an
already depressed yield environment.
Our proficiency at successfully navigating these challenges
is a credit to the people of WestJet and their dedication to
our airline. Not only did this dedication allow us to
withstand this difficult environment, but it resulted in a
number of important accomplishments that will position
WestJet for our next phase of growth.
In 2003, we added service to the communities of Windsor,
Ontario; St. John’s and Gander, Newfoundland; Montréal,
Quebec; and Halifax, Nova Scotia. We also increased our
number of weekly departures by 18 per cent from
December 2002 to December 2003. In 2003 we added
11 new 737-700 aircraft to our fleet and retired two
737-200s, ending the year with a total of 44 aircraft, up
from 35 aircraft in December 2002.
By the end of 2003, WestJet had secured an approximate
25 per cent share of the Canadian domestic market, which
has only been achieved by our people working exceedingly
hard to meet our guests’ expectations and our own goals for
reliability and efficiency. In 2003, we carried almost seven
million people across our network, which is a 19 per cent
increase over 2002.
We were pleased to report the attainment of a significant
industry milestone, achieving the second highest on-time
performance rating in North America, just 0.9-percentage
points shy of the top spot. In 2003, 86.7% of all WestJet
flights arrived within 15 minutes of their scheduled time,
a significant accomplishment given the size of our network
and the impact that the weather in Canada can have on
our operations.
Along with the expansion of our schedule and our record
on-time performance, we added a number of features to
our aircraft in 2003 that will build on our position as a
market leader. Our new fleet of 737-700 series aircraft are
now all equipped with leather seats and our program to
increase legroom to provide even more comfort for our
guests is well underway with an expected completion date
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