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Westjet Airlines is the most successful low-cost carrier in Canadian history, serving Canada and N.America. Corporate information, company history and reservation information.
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Westjet Airlines
Westjet Airlines is the most successful low-cost carrier in Canadian history, and in 2000 was the second most profitable airline in North America, just after Southwest Airlines.
Westjet Airlines was founded in 1996 by Clive Beddoe, Mark Hill, Tim Morgan and Donald Bell, four Calgary entrepreneurs 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 Airlines world. In 1996, Westjet Airlines added Victoria, Regina and Saskatoon to its route network. In 1997, Westjet Airlines began service to Abbotsford/Fraser Valley, and in 1999 WestJet added Thunder Bay, Prince George, and Grande Prairie to its service area.
Westjet Airlines 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 Airlines 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 Airlines to expand its service beyond its current route structure. In December 1999, Westjet Airlines 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 Airlines four 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 Airlines people and shareholders. In 2001, Westjet Airlines 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, Clive, Don, Mark, and Tim received an International Entrepreneurship award for Outstanding Teamwork.
In 2002, Westjet Airlines 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.
On January 23, 2003, Westjet Airlines announced the beginning of service to the new market of Windsor on April 1. On February 12, WestJet announced new service to the markets of Montreal on April 24, St. John's on June 16, and Gander on June 17. Also in February, WestJet began serving the new market of Halifax. In addition to adding new aircraft and improved route frequency, WestJet celebrated its 27th quarter of profitability with its third quarter 2003 results.
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Westjet Airlines