Westjet 2005 Annual Report Download - page 16

14
YOUR OWNERS’ MANUAL
increase our yield was impressive in light of our growth in
capacity and load factor. With the failure in March of Jetsgo
Corporation, the market returned to a more rational
pricing environment which, in conjunction with the hard
work of our people, allowed us to return to profitability
albeit at lower levels than we would have liked and lower
than we believe are achievable in the future.
While total fuel cost per litre increased by over 30% in
2005, we were able to limit the increase in our overall
operating costs per ASM to 9.6% year over year. This was
accomplished by innovation and a corporate-wide focus by
our people on productivity, while creating a quality experience
for our guests in the most efficient manner possible.
The retirement of our less efficient 737-200 fleet neared
completion at year-end. At December 31, 2005, all of our
owned 200-series aircraft had been taken out of revenue
service. The remaining leased aircraft were retired from
revenue service on January 8, 2006, as we continued our
transition to a younger, more efficient fleet. The retirement
of our 200-series aircraft was made possible by the addition
of 15 new Next-Generation aircraft during 2005. This
addition to our fleet will contribute to the reduction of our
maintenance expenditures, improve utilization and reduce
fuel costs. We now have the newest, most fuel-efficient
aircraft fleet in North America, with the inherent benefit of
lower maintenance costs and the operational efficiencies
that flow with a state-of-the-art, single-type, aircraft fleet.
Highlights of New Initiatives
The Canadian travel market continues to be quite
competitive notwithstanding the failure and windup of
Jetsgo. To maintain our competitive advantage, we have
continued to reduce our costs through the use of technology
and have expanded our service through increasing the
frequency of our flights to current destinations and by
launching new destinations such as Fort Myers, Maui and
Honolulu. We have also increased our market penetration
by expanding our corporate sales team across Canada,
1. ASSIST WITH the hurricane Katrina disaster, as WestJet
did on August 31, 2005, by operating a charter from
Vancouver to Baton Rouge to help with a Vancouver-based
urban search and rescue team’s timely and heroic efforts.
2. GO BEYOND the call of duty by providing a small
ground-handling team to assist with ground operations.
3. RESPOND within hours on September 22, 2005 to a
request from Le Bas International Air Division
(a US-based charter broker company contracted by the
US government) to provide aircraft for the evacuation of
civilians out of Houston, Texas during hurricane Rita.
4. DEMONSTRATE during both these disasters that we can
overcome the most challenging circumstances to provide
help when help is needed.
figure 14-A
Providing assistance