WestJet has begun retiring its Boeing 737-700 fleet after FTAI Aviation acquired 27 of the aircraft from the Canadian carrier. The deal splits the fleet between 17 jets that remain on lease to WestJet and 10 off-lease aircraft purchased for FTAI’s Aerospace Products business, while WestJet’s finance chief said the transaction formally starts the retirement process.
The 17 aircraft are being handled through FTAI’s 2026 special purpose vehicle under a sale-leaseback structure, preserving short-term operational continuity for WestJet. The 10 off-lease jets will support FTAI’s aftermarket engine and parts business, including supply of CFM56-7B engines and modules.
The move fits WestJet’s broader fleet modernisation strategy as it shifts away from its older narrowbody type towards newer Boeing 737 MAX aircraft. Earlier this year, the airline had already been accelerating plans to withdraw the 737-700s amid high fuel prices and softer transborder demand, though it had not set a firm end date for the subfleet’s retirement.
No financial terms, aircraft serial numbers or full phase-out timetable were disclosed. The transaction therefore appears to start a phased drawdown rather than an immediate wholesale withdrawal of the type from WestJet’s network.