ACG WestJet Boeing MAX 10
Canada’s WestJet still had options on 25 Boeing MAX 10s directly with the OEM. But it has decided not to take them up yet and, instead, lease 13 MAX 10 from Aviation Capital Group (ACG). This will bring the fleet to 73 aircraft of the biggest MAX variant.
WestJet placed an order for 60 MAX 10s plus 25 options in September last year, while also buying seven 787-9s plus four options. This brought the airline’s order backlog to 123 firm and 40 options, with deliveries extended through 2034. It already took delivery of two MAX 8s leased from ACG in February.
The Canadian carrier had hoped to take delivery of the first MAX 10s already this year, but this plan had to be delayed as certification of the type is still not complete. Based on what Boeing and the FAA have been saying recently, all signs point to certification happening in the coming months.
“This long-term lease agreement for 13 Boeing 737 aircraft with Aviation Capital Group supports WestJet’s growth plans and gives us added flexibility as we scale to meet guest demand. Shifting deliveries to the 737-10 is a strategic step that helps ensure we have the right aircraft in our fleet to serve our guests reliably over the long term”, Mike Scott, CFO and Executive Vice President of the WestJet Group, said in a media statement.
ACG is in the same position of uncertainty. In January, the lessor doubled its order for the MAX 10 to 50 aircraft and bought 25 more MAX 8s. Deliveries are scheduled between 2026 and 2033. The latest deal with WestJet includes aircraft from ACG’s own backlog, so they aren’t sale-and-leasebacks. ACG hasn’t disclosed other lessees for its MAX 10s.
ACG first ordered the MAX 10 in September 2023, buying six aircraft. It added 15 to the backlog at the 2024 Farnborough Airshow. Including 8s, the lessor has 121 MAX on order.
Strike vote
The timing of the announcement (by ACG, not WestJet) comes at a moment of social unrest within the airline. Later today, a strike vote ends that was opened on July 9 by the Canadian Union of Public Employees (CUPE). The union demands a better collective labour agreement for the airline’s 4.400 flight attendants. Discussions have been ongoing since September last year. Indications are that there is a solid majority to support a strike, which could occur on August 2 at the earliest.
CEO Alexis van Hoensbroech said on LinkedIn last night that he had visited a picket event in Calgary. “We value and respect our Cabin Crew and remain committed to the bargaining process to reach a collective agreement that recognises their contributions and professionalism, while making sure WestJet remains competitive and sustainable.”
Views: 0
