WestJet begins Boeing 737-700 retirement via FTAI Aviation deal

WestJet has officially begun retiring its Boeing 737-700 fleet following an agreement with FTAI Aviation to acquire 27 aircraft. The transaction is divided into two distinct components.

Under the first part of the deal, FTAI’s Strategic Capital business used a special purpose vehicle to acquire 17 Boeing 737-700 aircraft through a sale-leaseback arrangement. These aircraft will remain on lease to WestJet. The second part involves the acquisition of 10 off-lease Boeing 737-700 aircraft, which will be used to support FTAI’s Aerospace Products business by expanding its supply of CFM56-7B engines and modules.

WestJet Group Executive Vice-President and CFO Mike Scott described the transaction as a “strategic milestone” that marks the start of the airline’s fleet retirement. The decision to accelerate the retirement of older 737-700 models was previously attributed to high fuel prices. FTAI President David Moreno noted that the deal demonstrates how the company’s Strategic Capital and Aerospace Products units work together to provide comprehensive fleet solutions.