WestJet Axes Aging Boeing 737-700 Fleet, Replaces with MAX 10s
WestJet, Canada's second-largest airline, is starting to retire its aging Boeing 737-700 fleet. The carrier announced on September 28 that it had sold or leased out 27 of these aircraft to FTAI Aviation in a deal worth tens of millions of dollars.
The move marks the beginning of the end for the 737-700, which has been WestJet's workhorse since its introduction in 2001. The type will be gradually phased out and replaced by newer Boeing 737 MAX 10 aircraft.
FTAI Aviation, a company that specializes in engine and module sales, is buying the 737-700s not for their airframes but for their engines. The CFM56-7B engines on these planes are highly sought after due to their widespread use and high demand for maintenance and repairs.
The sale-and-leaseback structure of the deal will allow WestJet to continue flying the aircraft while it waits for its new MAX 10s to arrive. With softer transborder demand and higher fuel costs, WestJet's CEO Alexis von Hoensbroech has said that accelerating the retirement of the 737-700 fleet was a strategic decision.
The Boeing 737 MAX 10 certification, which is still pending due to a software issue, will determine when WestJet can start taking delivery of its new aircraft. The airline expects to receive its first MAX 10 by the end of 2026, but this timeline may be impacted by the FAA's delay in certifying the type.