WestJet was founded in 1996 by four Calgary entrepreneurs led by Clive
Beddoe, who saw an opportunity to provide low-fare air travel across western
Canada. Through researching other successful airlines in North America - and
in particular low-cost carriers from throughout the continent - the team
followed the primary examples of Southwest Airlines and Morris Air and
determined that a similar concept could be successful in western Canada.
Over the subsequent months, the team worked to develop a comprehensive
business plan and financial model. With this information in hand, a number of
local business people were approached and within 30 days the needed capital
was raised. After purchasing the three original Boeing 737-200 aircraft, a
second offering to retail and institutional investors was completed in January
1996, raising the necessary capital to commence operations.
On February 29, 1996, the airline started flight operations with 220
employees and three aircraft to the cities of Vancouver, Kelowna, Calgary,
Edmonton, and Winnipeg. Since that time, the company has continued to
expand, bringing more western cities into WestJet's world. In 1996, WestJet
added Victoria, Regina and Saskatoon to its route network. In 1997, WestJet
began service to Abbotsford/Fraser Valley, and in 1999 WestJet added
Thunder Bay, Prince George, and Grande Prairie to its service area.
WestJet achieved a major milestone when in July 1999 it completed its Initial
Public Offering of 2.5 million common shares. It was an exciting day for all
WestJetters, representing the achievement of a key business goal and raising
the necessary capital for expansion of the company into the coming years.
With the help of lead underwriters CIBC World Markets and the dedicated
executive team, WestJet has made a successful transition to a public
company. The capital raised from the offering has been used for the
purchase of additional aircraft, as well as the building of new Head Office and
Hangar facilities in Calgary, in order to meet the needs of the company's
expanding workforce.
1999 saw unprecedented change and restructuring in the airline industry in
Canada, offering a window of opportunity for WestJet to expand its service
beyond its current route structure. In December 1999, WestJet announced
that it would be extending its successful low-fare airline across Canada.
Between March and June 2000, the company added service to the eastern
Canadian cities of Hamilton, Moncton, and Ottawa, creating an eastern
network with Hamilton as the hub.
In 2000, WestJet's founders were honoured as 'The Ernst & Young
Entrepreneur of the Year' for Canada, in recognition of the contributions they
have made to Canadian travellers and the lives of all of WestJet's people and
shareholders. In 2001, WestJet added new service to Fort McMurray, Comox,
and Limited Addition flights to Brandon. In 2001, WestJet also added its first
four Next-Generation Boeing 737 aircraft. Also, in 2001, the team of
founders received an International Entrepreneurship award for Outstanding
Teamwork.
In 2002, WestJet added service to two new Ontario destinations, London and
Toronto. In February of 2002, the Corporation successfully offered three
million common shares yielding net proceeds of $78.9 million. The proceeds
will fund aircraft additions, spare parts, and a third flight simulator. WestJet
was named one of Canada's top 100 employers for 2002, and was named
Canada's second most respected corporation for 2003 in an annual survey
conducted by Ipsos-Reid. The survey involved a randomly selected sample of
255 of the leading CEOs in Canada.
The airline operates a growing fleet of 50 aircraft featuring 32 new NextGeneration Boeing 737-700 aircraft with leather seats and more legroom.
Transborder service will commence in fall 2004 to the cities of Los Angeles,
San Francisco, Phoenix, Fort Lauderdale, Tampa, Orlando, and New York.
Service to Palm Springs is scheduled to begin in January 2005. WestJet is
publicly traded on the Toronto Stock Exchange under the symbol WJA.
Discount airline WestJet's first-quarter profits dipped to $512,000, down from
$778,000 a year ago, despite a more than 25 per cent increase in sales.
The Calgary-based airline earned 1 cent a share for the three months ended March
31, compared with a profit of 1 cent per share for the same period a year earlier.
Quarterly revenue grew to $216.7-million from $172.7-million.
WestJet increased capacity in the first quarter by 35.2 per cent.
"Although we are disappointed with the level of profitability we achieved this quarter,
we are nevertheless pleased that we were able to produce our 29th consecutive
quarter of profitability," WestJet CEO Clive Beddoe said in a release.
Shares of WestJet fell $2.15 or 8 per cent to $24.70 Wednesday in Toronto
In the first six months of 2004, the
airline's net earnings were $8.0 million as compared to $15.5
million during the first six months of 2003.