Westjet 2012 Annual Report Download - page 5

WestJet 2012 Annual Report / 5
China Eastern Airlines, and British Airways were
added to our roster of code-share partners. We expect
this momentum to continue in 2013 as we evolve two
to four interline agreements into new code-shares
and pursue a handful of new interline relationships.
Our loyalty program, WestJet Rewards, continued to
evolve in 2012, with new opportunities for members to
earn WestJet dollars by flying on American Airlines,
and by making hotel and car rental bookings directly on
our website. We increased the value offered to holders
of the WestJet RBC World Elite MasterCard, including
a welcome bonus of 250 WestJet dollars and an annual
$99 round-trip companion flight, making this credit
card even more competitive.
We also announced our new fare bundles in 2012
as part of our strategy to increase the options we
provide our guests and to allow them to choose the
comfort, convenience and flexibility that best matches
their budget. Guests can now choose the bundle that
provides them with the best value and amenities.
These initiatives will increase the added value we offer
business travellers, which is part of our integrated
strategy of capturing a greater share of the corporate
travel market, while continuing to provide our leisure
travellers with increased travel options.
A key foundational component of the successful launch
of these initiatives is the significant investment of
$40 million we’ve made in our IT systems over the last
two years. I’m excited about these enhancements,
which include a new digital storefront with increased
customizability for guests as they book, improvements
to our self-service kiosks, and mobile flight notifications.
WestJetters’ tremendous efforts in preparing for
the introduction of WestJet Encore, our new regional
airline, have set the stage for a successful launch in
June 2013. Our survey of WestJetters in early 2012
showed overwhelming support of the new airline.
Since then, we’ve selected the Bombardier NextGen
Q400 aircraft for the new fleet, and the focused
dedication of the entire WestJet team makes us
confident that WestJet Encore will be a success.
We look forward to bringing WestJet’s friendly, caring
service and low fares to smaller communities.
On February 11, 2013, we announced WestJet Encore’s
first two communities—Nanaimo and Fort St. John, BC.
I’m confident that we are prepared to implement these
exciting initiatives with the support and commitment of
more than 9,000 proud WestJetters; 2012 was a great
year for WestJet, and I expect to see more continued
success in the years ahead. Our core values continue
to remain the same—we are leveraging our strengths
in continuing to bring low fares, with friendly and
caring service to all of the communities we serve,
while working hard to keep costs low. As part of that
focus on low costs, we recently concluded a series of
meetings with WestJetters across Canada, to present
our business transformation initiative to reduce costs
by $100 million over the next three years.
I’m proud of the recognition WestJetters have earned
as a result of demonstrating the strength of our culture
every day. In 2012, WestJet was once again ranked as
Canada’s preferred airline by TNS Canada and as a
top 10 international airline in Aviation Week. WestJet
Vacations announced a Leger Marketing survey
showing we have the highest guest satisfaction and
loyalty among Canadian tour operators and in late
2012, WestJet was named one of Canada’s Top 100
Employers in Mediacorp’s annual study of Canada’s
best workplaces. We also achieved an all-time high
score in our internal “We Hear You” survey in 2012.
Certainly these are recognitions that would not have
been possible without the commitment to safety and
care delivered by our over 9,000 WestJetters.
WestJetters also continued to give back in many ways,
including our first two Hero Holidays in April and
October 2012 where two groups of 50 WestJetters
each built five homes for families living in extreme
poverty in Puerto Plata, Dominican Republic. We also
continued our focus on reducing our environmental
footprint, and released our second corporate
sustainability report in December.
We were pleased to continue returning value to
shareholders in 2012. In February and August of 2012,
we announced increases to our quarterly dividend from
$0.05 to $0.06 and then to $0.08 per share. In February
2013, we announced our third increase, to $0.10 per
share. In 2012, we also completed our second normal
course issuer bid. Since we began paying a quarterly
dividend in 2010, and including our two completed
normal course issuer bids, we have returned more than
$290 million to our shareholders as of the end of 2012.
On February 14, 2013, the Toronto Stock Exchange
approved our notice for a further normal course issuer
bid that will allow us to purchase and cancel up to five
per cent of our outstanding shares over the next year.
On behalf of the Board of Directors, the Executive
team, and more than 9,000 WestJetters, thank you for
your continued support of our airline.
Gregg Saretsky
President and Chief Executive Officer
March 19, 2013
/ President’s message