WestJet
TSX : WJA

WestJet

July 19, 2007 08:30 ET

WestJet and Travelport Agree to Discontinue Negotiations for aiRES Contract

CALGARY, ALBERTA--(Marketwire - July 19, 2007) - WestJet (TSX:WJA) today announced that they have reached agreement with Travelport to discontinue negotiations on the amendment of the aiRES contract. As a result, WestJet will incur a non-cash write-down of $31.9 million pre-tax ($22.2 million after tax) for the assets associated with WestJet's aiRES reservation system project. This write-down will be accounted for in the airline's quarterly results for the period ended June 30, 2007.

Sean Durfy, WestJet President commented, "As we stated in our January 10, 2007 news release where we first announced suspension of the aiRES implementation, we recognized the potential for this one-time write-down. Unfortunately, the possibility of implementing a future version of aiRES in the timeframe needed to meet WestJet's requirements is highly unlikely.

"Our current reservation system has been upgraded and is fully supported to meet our strategic plan for the remainder of 2007 and throughout 2008. All of the key functionalities we require to achieve our objectives are available to us. We will review our options for a new reservation system, from a variety of companies including Travelport, to meet our strategic plan beyond 2008."

WestJet will announce its second quarter results on August 1, 2007.

WestJet is Canada's leading low-fare airline offering scheduled service throughout its 38-city North American and Caribbean network. Named Canada's most admired corporate culture in 2005 and 2006, WestJet pioneered low-cost high-value flying in Canada. With increased legroom and leather seats on its modern fleet of Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu on the majority of its fleet, WestJet strives to be the number one choice for travellers.

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