WestJet begins 737-700 retirement as FTAI acquires 27 aircraft

WestJet said it has officially begun retiring its fleet of its remaining Boeing 737-700 after FTAI Aviation acquired 27 aircraft operated by the Canadian airline.

On September 28, 2026, FTAI Aviation described the acquisition marks one of the company’s largest aircraft transactions to date.

Under the arrangement, FTAI’s second special purpose vehicle (SPV), launched in 2026, acquired 17 Boeing 737-700 aircraft on lease to WestJet in a sale-leaseback agreement.

FTAI then acquired 10 off-lease Boeing 737-700 aircraft to support its Aerospace Products business.

The 2026 SPV is part of FTAI’s Strategic Capital business, which was formed to acquire on-lease, mid-life 737NG and A320ceo aircraft.

“This 27-aircraft transaction is a strategic milestone that officially marks the start of our retirement of our 737-700 fleet,” said Mike Scott, WestJet Group Executive Vice-President and CFO. “We’re pleased to partner with FTAI Aviation Ltd. to make this happen, and we look forward to building on this relationship for future opportunities.”

In June 2026, WestJet’s CEO Alexis von Hoensbroech told FlightGlobal that due to high fuel prices the airline was accelerating retirement of its oldest 737-700s.

According to FTAI, the 10 off-lease aircraft will expand the company’s supply of CFM56-7B engines and modules available to its customers.

“It demonstrates how our Strategic Capital and Aerospace Products businesses work together to offer airlines comprehensive fleet solutions, from sale-leaseback capital for in-service aircraft to a flexible exit for aircraft transitioning out of the fleet,” David Moreno, President at FTAI, said.

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