WestJet starts retiring 737-700 fleet as FTAI buys 27 aircraft

WestJet has begun retiring its remaining Boeing 737-700s after FTAI Aviation agreed to buy 27 of them from the Canadian carrier. FTAI called it one of the largest aircraft transactions it has completed.

Its second special purpose vehicle, set up in 2026, took 17 of the 737-700s that were on lease to WestJet under a sale-leaseback arrangement. The other 10 came off lease and will go to FTAI's Aerospace Products business, which the company said will add to its stock of CFM56-7B engines and modules for customers.

The SPV sits within FTAI's Strategic Capital unit, formed to pick up on-lease, mid-life 737NG and A320ceo aircraft.

WestJet Group executive vice-president and chief financial officer Mike Scott said the deal marks the start of the 737-700 fleet's retirement and that the airline expects to work with FTAI again. FTAI president David Moreno said it shows how Strategic Capital and Aerospace Products combine to give airlines fleet solutions, from sale-leaseback financing for aircraft still in service to an exit route for those leaving the fleet.

In June 2026, WestJet chief executive Alexis von Hoensbroech said high fuel prices had led the airline to speed up the withdrawal of its oldest 737-700s.