WestJet Starts 737-700 Retirements With New FTAI Agreement

Canadian operator WestJet has forged a deal with New York-based aerospace company FTAI for the acquisition of 27 Boeing 737-700s, which marks the beginning of the aircraft’s retirement from the airline’s fleet.

Details of the agreement with FTAI include 17 -700s in a sale-leaseback arrangement and the acquisition of 10 aircraft to support its Aerospace Products business.

WestJet CEO Alexis von Hoensbroech told Aviation Week during the IATA Annual General Meeting in June that a 25% drop in U.S. transborder demand during the last year, Canadian airlines indefinitely suspending flights to Cuba, and the impact of higher fuel prices resulted in the airline opting to accelerate the retirement of the -700s. But he also added no definitive date was in place for the aircraft’s retirement.

Aviation Week’s Fleet Discovery database shows that WestJet has 27 737-700s in service and six inactive.

The carrier’s CFO Mike Scott stated the 27-aircaft transaction is a “strategic milestone that officially marks the start of our retirement of our 737-700 fleet.”

For FTAI, the company said the agreement shows how its Strategic Capital and Aerospace Products units work together to offer airlines comprehensive fleet solutions. Additionally, “the retiring aircraft will add CFM56-7B engines and modules to the exchange pool to support our customers’ maintenance requirements,” FTAI said.