WestJet 737 deferral not hurting Boeing, exec says

WestJet’s deferral of three Boeing 737s isn’t causing the U.S. airplane manufacturer any financial headaches, a Boeing executive confirmed Tuesday.

Gregg Saretsky, CEO of the Calgary-based carrier, had said in early August he’s pushing back delivery of three planes because of the sluggish economic recovery.

But the backlog of orders for the popular plane, Boeing executive Randy Tinseth said on his visit to Calgary, “has helped us manage though that process.”

Tinseth, head of marketing for commercial planes, said Boeing has 5,000 orders for the newest type of Boeing 737s, with a backlog of about 2,000 planes.

That’s a reflection, he said, of a “really robust demand, even through this downturn in the market. We’ve been able to deliver at high rates through the downturn.”

Boeing has 14 airline customers in Canada, of which Air Canada and WestJet are the largest. Calgary-based Enerjet, too, flies Boeing 737s.

On his Canada trip, which also includes a stop in Montreal, where Air Canada is headquartered, Tinseth said he won’t meet with the airlines. He said his trip is primarily a media tour and to talk to aviation analysts.

“It’s going to be an important market for us in the future,” Tinseth said, noting Boeing consider Canada among the top 20 countries in terms of potential airplane demand.

Over the next 20 years, Boeing estimates North American demand for its planes at 7,200 aircraft, valued at $700 billion. Canada’s share of that total is 10%.

Outside of North America, however, Boeing appears to be losing another customer with the demise of Mexicana.

The airline, one of Mexico’s two largest carriers, has had financial troubles for some time and has grounded all operations, including its flights between Calgary and Mexico City, last weekend.

“I don’t know how that is going to play out,” Tinseth said.