Fleet Replacement Analysis

This assignment has three objectives:

  1. Obtain and interpret operational cost data for commercial aircraft.
  2. Use data to estimate future operating costs for new and older airline aircraft.
  3. Learn how net present value analysis is used in capital acquisition decision-making.

WestJet, Canada’s second-largest airline behind Air Canada, has engaged the aviation consulting firm IFC International to evaluate whether it should continue its expansion to Europe with used Boeing 767-300ERs (ER stands for extended range; this model entered service in 1988) or purchase new Boeing 787-9 aircraft. You are the senior financial analyst with IFC assigned to this project and will prepare a memorandum with your analysis and recommendations to Mr., WestJet’s Chief Financial Officer.

Don't use plagiarized sources. Get Your Custom Essay on
Fleet Replacement Analysis
Just from $13/Page
Order Essay

This assignment has detailed requirements similar to those that would be given to a financial analyst. Read the requirements very carefully before beginning work. Ensure that your submission includes all required elements.


WestJet was founded in 1996 based on the low-cost carrier model. It has since grown rapidly, expanding to the US and the Caribbean with a fleet of Boeing 737 aircraft. In 2016, WestJet began service to Europe utilizing used Boeing 767-300s. The start-up of European service was plagued by delays and cancellations, in part due to the lower reliability of older aircraft. Mr. Taylor, new to WestJet, has questioned whether the operational problems might have been avoided had the airline opted for new Boeing 787 aircraft rather the 25-year-old Boeing 767s. He believes that his staff may not be able to conduct an unbiased assessment having participated in the selection of the Boeing 767, so he has contracted with IFC to develop a financial comparison of the two aircraft types.

As with all older aircraft, the B-767 burns more fuel per available-seat-mile and requires more maintenance than new generation aircraft of equal mission capability. Though well-used, the B-767 still has a remaining useful life of at least 15 years. The Boeing 787-9 Dreamliner is much more expensive to purchase but promises better reliability and reduced fuel burn per seat-mile.

Note: WestJet did subsequently order new B-787-9s as a B-767 replacement, so imagine yourself conducting the analysis prior to this decision. Do not assume, however, that your analysis will necessarily conclude that the B-787-9 is the best financial choice for WestJet. It may or may not.

Your team has developed a template which is provided as an attachment for conducting your net present cost analysis

Academic Heros
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.

Professional and Experienced Academic Writers

For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.

Free Unlimited Revisions

Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.

Prompt Delivery and 100% Money-Back-Guarantee

All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.

Original & Confidential

Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.

24/7 Customer Support

Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.


Essay Writing Service

It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.


Admission Essays & Business Writing Help

A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.


Editing Support

Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.


Revision Support

If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.