Aviation Capital Group Leases 13 Boeing 737-10s to WestJet

Strategic Fleet Expansion

Aviation Capital Group (ACG) has finalized a long-term lease agreement with WestJet for 13 Boeing 737-10 aircraft. This transaction marks a significant placement from ACG’s direct orderbook, providing the Canadian carrier with additional capacity to support its evolving network. The agreement reinforces the strategic reliance of major carriers on leasing partners to manage fleet flexibility and capital expenditure during periods of high demand.

This deal supplements WestJet’s aggressive commitment to the largest MAX variant. As of September 2025, the airline maintained a direct orderbook of 107 aircraft of the same type, Boeing and WestJet Announce the Airline's Largest-Ever Order for 67 Airplanes. The integration of these 13 leased frames into the fleet highlights the carrier's focus on scaling operations through both direct ownership and strategic leasing arrangements.

Stakeholder Impact and Operational Rationale

For WestJet, the inclusion of these 13 aircraft offers a path to lower cost-per-seat economics on high-density routes without the immediate capital outlay required for direct purchases. "This long-term lease agreement for 13 Boeing 737 aircraft with Aviation Capital Group supports WestJet's growth plans and gives us added flexibility as we scale to meet guest demand," said Mike Scott, Chief Financial Officer and Executive Vice President of the WestJet Group.

For ACG, a premier global full-service aircraft asset manager with approximately 500 owned, managed, and committed aircraft, the deal ensures long-term revenue streams. It also underscores the lessor’s role in placing high-demand narrowbody inventory. Boeing Commercial Airplanes benefits from the deal as well, as it serves as further market validation for the 737-10 program during its ongoing certification phase.

737-10 vs 737-8: Key Specifications

The Path to Certification

Operations remain contingent on the Federal Aviation Administration (FAA), which is responsible for issuing the type certification for the Boeing 737-10. Because the aircraft has not yet received its final certification, deliveries of the 13 leased units to WestJet are strictly tied to the successful completion of this regulatory process. Industry analysts note that while the 737-10 offers the lowest cost per seat of any single-aisle airplane, the ongoing FAA scrutiny and certification delays present significant fleet planning risks for carriers with heavy commitments to the type.

Historically, this partnership builds upon the relationship established in February 2026, when ACG successfully delivered two 737-8s to WestJet under a sale-and-leaseback transaction. That event served as a precursor to this larger-scale 737-10 commitment, demonstrating a stable, recurring partnership between the lessor and the airline.

Pending FAA Certification Milestones

Looking ahead, the timeline for these deliveries is dictated by two primary milestones. First, the 737-10 must achieve FAA type certification, an event currently expected between late 2026 and 2027. Second, once certification is secured, the physical handover of the 13 aircraft from ACG to WestJet will commence. These events represent the next critical phase in WestJet’s fleet modernization, as the airline continues to prioritize the largest available narrowbody variants to maximize slot efficiency and reduce emissions per passenger.