Westjet 2010 Annual Report Download - page 9

WestJet 2010 Annual Report 7
Financial Reporting Standards (IFRS) and the impact of adopting
IFRS on WestJet’s consolidated financial statements, referred
to under the heading “Recent accounting pronouncements
and changes” on page 43; our expectation that in 2011 we will
continue to build our key strategic initiatives that include
expanding airline partnerships, enhancing our focus on the
business traveller, growing WestJet Vacations (WVI) revenue and
increasing our market penetration for the co-branded WestJet
Credit Card and WestJet Frequent Guest programs, referred to
under the heading “Outlook” on page 51; our expectation that we
will sign additional interline agreements, referred to under the
heading “Outlook” on page 51; our expectations regarding first
quarter 2011 fuel costs, referred to under the heading “Outlook”
on page 51; our anticipation that, in the first quarter of 2011,
cost per available seat mile (CASM), excluding fuel and profit
share, will be flat year over year, referred to under the heading
“Outlook” on page 51; our expectations around year-over-year
capacity increases for the first quarter of 2011 and for the full
year of 2011, referred to under the heading “Outlook” on page
51; our belief that we will take delivery of three aircraft during
the first three months of 2011 and three more throughout the
remainder of the year, ending 2011 with a fleet of 97, referred to
under the heading “Outlook” on page 51; our anticipation that
we will continue to direct additional capacity into the transborder
and international markets in the first quarter of 2011, referred
to under the heading “Outlook” on page 51; our expectations
regarding our overall domestic capacity, referred to under the
heading “Outlook” on page 51; our expectations around our
total 2011 capital expenditures and the majority of the spending
relating to aircraft deposits and rotables, referred to under
the heading “Outlook” on page 51; our expectations regarding
WestJet’s ability to weather fuel price uncertainty, referred to
under the heading “Outlook” on page 51; the expectation that
we will continue to capitalize on the recent investments in our
new revenue systems, referred to under the heading “Outlook”
on page 51; and our confidence in WestJet’s ability to continue
to achieve profitable growth, referred to under the heading
“Outlook” on page 51. These forward-looking statements
typically contain the words “anticipate,” “believe,” “estimate,”
“intend,” “expect,” “may,” “will,” “should,” “potential,” “plan” or
other similar terms.
Readers are cautioned that our expectations, estimates,
projections and assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
With respect to forward-looking statements contained within
this MD&A, we have made the following key assumptions:
•
our expectation that we will continue to develop our partnership
strategy was based on our current strategic plan;
• our expectation that our partnership strategy will enable us
to meet our strategic objective of becoming one of the top five
airlines in the world by 2016 was based on our past and current
experiences and understanding of the airline industry;
• our plan to operate a leased Boeing 757-200 from North
American Airlines to provide non-stop services between
Calgary and Honolulu, Calgary and Maui, and Edmonton and
Maui between February 12 and April 30, 2011 was based on
an agreement entered into with North American Airlines and
our current and forecasted commercial schedule;
• our expectation that our temporary lease agreement will
provide additional capacity for non-stop service from
Alberta to Hawaii was based on our current and forecasted
commercial schedule;
• our sensitivity to changes in crude oil and fuel pricing was
based on our fuel consumption for our existing schedule
and historical fuel burn, as well as a Canadian-US dollar
exchange rate similar to the current market rate;
• our plan to have a WestJet service ambassador onboard each
757-200 flight to ensure that the WestJet guest experience is
consistently delivered to our standards and expectations was
based on our strategic plan with respect to our 757-200 flights;
• our expectation that our checked baggage policy will help
offset the impact of rising fuel costs was based on our
preliminary financial analysis;