Westjet 2005 Annual Report Download - page 26

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24
YOUR OWNERS’ MANUAL
Depreciation and Amortization
In 2005, our depreciation and amortization expense
increased 35.3% to $106.6 million from $78.8 million
(excluding the impairment loss) in 2004. Depreciation and
amortization as a percentage of total operating costs was
8.0% compared to 7.7% in 2004 (excluding the impairment
loss). This increase reflects the transitioning of our fleet
from the older 737-200s to new Next-Generation aircraft,
and our continued investment in equipment and technology.
This resulted in a per-unit increase in our depreciation
and amortization expense from 0.88 cents (excluding the
impairment loss) in 2004 to 1.0 cent in 2005.
In December 2005, the purchaser of our 737-200
aircraft took possession of the 13th and last of these
aircraft they purchased from us. In early 2006, this
transaction will be completed with the transfer of the
remaining spare engines, spare parts and the 737-200
simulator that were part of the sales agreement.
At year-end, we operated a total of 55 Boeing 737
aircraft of which 51 are Next-Generation 737 aircraft. The
Average Age of Aircraft at Year-End
0
5
10
15
20
Years
2001 2002 2003 2004 2005
THIS AIRLINE CAN BE USED FOR PURPOSES OTHER
THAN JUST FLIGHT, LIKE ENTERTAINMENT, AS WAS
DEMONSTRATED BY WESTJET IN 2005. HERE’S HOW:
1. BY EQUIPPING 30 aircraft with live seatback television,
bringing the total number of aircraft equipped with this
product to 45.
2. BY CONTINUING EFFORTS to equip our entire fleet
with this service which consists of 24 channels of live
seatback satellite television provided by Bell ExpressVuTM
and four pay-per-view channels on all 700s and four
out of five 800-series aircraft.
3. BY OFFICIALLY LAUNCHING a pay-per-view program
called “WestJet Movies in the Sky.” A service that, at a
cost of only $5 per guest, offers them the chance to view
newly released movies before they come out on DVD.
4. BY BEING THE PREMIER provider of inflight
entertainment in Canada (e.g. offering guests
something more gripping to watch than clouds).
figure 24-A
In case of boredom