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Travel Distribution In Canada Duncan Bureau, Vice President Sales, and Owner, WestJet Kevin Mitchell, Chairman, Business Travel Coalition Jean Covelli, Travel Administrator, Rich Products Corporation; President, The Travel Team, Inc.
WestJet Overview • Canada’s leading low fare airline • Currently 38 destinations with scheduled service within Canada, the United States and the Caribbean • WestJet employs over 6,000 people • Guest Experience and Performance • Top five North American on-time performance, completion rate and baggage rates • Employee ownership and a company wide commitment to our guest experience
WestJet Overview continued… • WestJet operates the most modern fleet in North America (average age 2.5 years) currently a fleet of 65 Boeing Next-Generation 737 aircraft • An additional 21 Boeing Next-Generation 737 aircraft committed for delivery between 2007 and 2009 • WestJet named Canada's most admired corporate culture in 2006 • WestJet Vacations • WestJet Lounges
63 Schedule and Charter Destinations In 11 years WestJet has built a significant network; growing from five scheduled destinations to 65 scheduled and charter.
Winter Schedule Winter Schedule Strategic Fleet Deployment Summer Schedule Summer Schedule *Jan – Dec 2006 based on actual data; Jan 2007 – Oct 2007 based on scheduled and Business Plan data Matching our capacity to demand leverages seasonality of travel to maximize revenue
Fleet Growth Projected Growth 10% 10% 15% 13% 17% 19% 30% 48% 55% 57% Estimates We plan for continued ASM growth and fleet expansion to 92 aircraft by 2010
Domestic Market Share Growth - RPMs1999 – 2006 WestJet expects to continue its profitable market share growth.
Record Year-End Results 2006 • Record net earnings of $114.7 million • RASM increased 9.2 % to 14.2 cents • Increased load factor 3.6 percentage points to 78.2% • Yield increased 3.4% to 18.1 cents • Increased ASMs 17.3% to 12.5 billion • Growth • Twelve new aircraft • Announced two new destinations West Palm Beach, Florida & Nassau, Bahamas • Ancillary revenue • Continued success of buy on board products • Launch of WestJet Vacations Record earnings for any year in WestJet history.
Financial and Growth • Achieve an average annual compound growth rate in available seat miles of 10% • Continued fleet expansion • Continue commercialization of schedule • Continue expansion of domestic, transborder and international destinations • Bundle pricing • WestJet Vacations • Point-of-sale U.S. • Interline • Ancillary Revenues
Margins and Costs • Have the lowest sustainable cost per available seat mile, excluding fuel, in North America • Sustained focus on cost control and reduction • Increased fleet utilization • Most modern fleet in North America
Guest Experience and Performance • Deliver on guest interaction that is unique to WestJet • Achieve top five North American on-time performance, completion rate and baggage rates • Through employee ownership and a company wide commitment to our guest experience
People and Culture • People and Culture • Highly engaged and committed employee base • Employee share purchase plan participation rate over 80% • Profit share of $94,922,491 paid to WestJetters up to March 31, 2007 • Commitment to training and development • Over 2,000 people hired in 2006 • Still receive over 1,000 resumes per week
Corporate Agreement Structure • WestJet requires the following reporting: • Air Carrier Validation Report (WestJet vs. Other) • Total net domestic spend • Total net transborder spend • WestJet does a financial gap analysis / cost of sale internally and determines opportunity
Corporate Agreement Structure (cont’d) • WestJet creates corporate proposal • Revenue share incentive payments based on achieved volume target • Discounted at source net programs • Present proposal • WestJet will draft contract and send to Corporation via email for review • Contracts are discussed and approved by both parties, then circulated for signatures • Contracts reviewed quarterly based on reporting
For More Information… Bryan Wolfenden, Director, National and Corporate Accounts, WestJet Tel: 905-364-2018 email@example.com http://www.westjet.com/ Jean Covelli, Travel Administrator, Rich Products Corporation; President, The Travel Team, Inc. Tel: 716-862-7630 firstname.lastname@example.org http://www.thetravelteam.com/ Kevin Mitchell, Chairman, Business Travel Coalition Tel: 610-341-1850 mitchell@BusienssTravelCoalition.com http://businesstravelcoalition.com/ Association of Canadian Travel Agencies http://www.acta.ca/ September 18, 2007