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WestJet 2008 Annual Report 37
following table as the lease agreement has not yet been
signed; however, if included, our future deliveries would be
121 aircraft by 2013.
As at December 31, 2008, we had existing commitments to
take delivery of an additional 44 aircraft as summarized below:
delayed, and, based on our new fl eet schedule, we expect
delivery of nine leased aircraft in 2009.
On February 29, 2008, we signed a Letter of Intent to lease
an additional 737-800 aircraft scheduled for delivery in
2011. This has not been refl ected as a commitment in the
Series
600s 700s 800s Total fl eet
Leased Owned Total Leased Owned Total Leased Owned Total Leased Owned Total
Fleet at December 31, 2007 — 13
13 16 35
51 5 1
6 21 49
70
Fleet at December 31, 2008 — 13
13 18 38
56 6 1
7 24 52
76
Commitments:
2009 — —
— 6 —
6 3 —
3 9 —
9
2010 — —
— 5 2* 7 2 —
2 7 2
9
2011 — —
— 3 2* 5 — —
— 3 2
5
2012 — —
— 1 12* 13 — —
— 1 12
13
2013 — —
— — 8* 8 — —
— — 8
8
Total commitments — — — 15 24
39 5 —
5 20 24
44
Committed fl eet as of 2013 — 13 13 33 62
95 11 1
12 44 76
120
*We have an option to convert any of these future aircraft to 737-800s.
As at December 31, 2008, our total purchased aircraft
commitment, including amounts to be paid for live satellite
television systems on purchased and leased aircraft, was
$1,266.5 million (US $1,039.8 million). Additionally, our
commitment relating to aircraft operating leases was
$1,543.4 million (US $1,267.2 million) as at December
31, 2008, to be funded through our operating cash fl ow.
Amounts relating to the previously mentioned unsigned
lease have not been included in these commitments.
During the year ended December 31, 2008, we signed
a three-year revolving operating line of credit with a
syndicate of three Canadian banks. The line of credit is
available for up to a maximum of $85 million commencing
May 1, 2009, is subject to various customary conditions
precedent being satisfi ed, and will be secured by our new
Campus facility. The line of credit will bear interest at prime
plus 0.50 per cent per annum or a bankers acceptance rate
at 2.0 per cent annual stamping fee, and will be available
for general corporate expenses and working capital
purposes. We are required to pay a standby fee of 15 basis
points, based on the average unused portion of the line
of credit for the previous quarter, payable quarterly and
commencing on August 1, 2009. As at December 31, 2008,
no amounts were drawn on this facility.
Contingencies
We are party to certain legal proceedings that arise
during the ordinary course of business. It is the opinion of
management that the ultimate outcome of these matters
will not have a material effect upon our fi nancial position,
results of operations or cash fl ows.
Normal course issuer bid
On March 12, 2008, we fi led a notice with the Toronto Stock
Exchange (TSX) to make a normal course issuer bid to purchase
outstanding shares on the open market. As approved by the
TSX, we are authorized to purchase up to 2,500,000 shares
(representing approximately 1.9 per cent of our issued and
outstanding shares at the time of the bid) during the period
of March 17, 2008 to March 16, 2009, or until such earlier
time as the bid is completed or terminated at our option.
Any shares we purchase under this bid will be purchased
on the open market through the facilities of the TSX at
the prevailing market price at the time of the transaction.
Shares acquired under this bid will be cancelled.
During the year ended December 31, 2008, we purchased
2,005,084 shares under the bid for total consideration
of $29.4 million. The average book value of the shares
repurchased of $7.1 million was charged to share capital
with the $22.3 million excess of the market price over the
average book value charged to retained earnings.
During the year ended December 31, 2007, we purchased
1,263,500 shares under our previous normal course issuer
bid, which expired on February 27, 2008, for total consideration
of $21.3 million. The average book value for the shares
repurchased of $4.3 million was charged to share capital
with the $17.0 million excess of the market price over the
average book value charged to retained earnings.