A WestJet Boeing 737 Max takes off from Calgary for Vancouver on Jan. 21, 2021. (Jeff McIntosh/The Canadian Press)
WestJet is encountering indefinite delays in the delivery of numerous new aircraft following a panel blowout incident on a Boeing 737 Max plane last month, prompting a pause in production expansion at the U.S. aircraft manufacturer.
The Calgary-based airline procured 42 Boeing 737 Max 10 jetliners in 2022, with options for an additional 22, alongside nearly two dozen earlier Max orders still in the works.
These multi-billion-dollar deals aimed to enhance WestJet's fleet with at least 65 planes, including 50 Max 10s, by 2029, a move the airline hailed as a significant step to reduce fuel expenses and bolster growth.
However, the Max 10 awaits final certification, and following the panel incident, U.S. regulators announced a suspension of production expansion at Boeing until a thorough investigation concludes—a process that may extend over a year.
The U.S. Federal Aviation Administration temporarily grounded all 737 Max 9s for inspection and initiated an inquiry after a panel called a door plug detached from the fuselage of an Alaska Airlines aircraft mid-flight on January 5, leading to an emergency landing and creating a hole in the cabin wall.
WestJet assured it could manage the production disruptions, stating, "We continue to work closely with Boeing on all aspects of aircraft delivery and timelines. We believe our order book and fleet planning have the built-in flexibility to support WestJet's growth plans," according to spokeswoman Madison Kruger.
The Max 10, the largest aircraft in the latest 737 series, boasts 20% fewer carbon emissions per passenger than its predecessor. Fleet modernization is crucial for enhancing efficiency, reducing costs—particularly in jet fuel and labor, which are airlines' primary expenditures—and demonstrating commitment to environmental objectives.
John Gradek, an aviation management instructor at McGill University, noted, "The ability of WestJet to do that is compromised by Boeing," emphasizing that an aging fleet becomes costlier and less efficient over time.
WestJet's order of 65 new aircraft represents nearly 40% of its current fleet, with many expected to replace some of the 88 planes from the previous generation of 737s gradually.
The list price for the 42 Max 10s ordered in 2022 amounted to $7.6 billion, although significant discounts typically accompany large purchases.
During the deal announcement in September 2022, both Boeing and WestJet emphasized its significance. Stan Deal, head of Boeing's commercial airlines division, highlighted the 737-10's potential as "a game changer" with low costs per seat, fostering WestJet's low-cost positioning and affordability for Canadians.
WestJet stated that the planes would strengthen its presence in Western Canada and support growth in transcontinental and leisure offerings from Eastern Canada.
