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WestJet B737-600 Order Fails to Halt Slide in Values

August 23, 2004

The order for six B737-600s from WestJet has failed to reverse the continued decline in values of the type. Values of the B737-700 and -800 have continued to experience improvement over the last quarter while those of the -600 and indeed, the -900, have fallen. The lack of orders for the -600 over the past few years has reflected the difficulty of the type in meeting the needs of operators and a changing market structure. The A318, B717, and B737-600 all straddle two market segments. The three types offer operating weights too great for the regional carriers and a capacity too small for the mainline carriers seeking to maximize expensive resources such as flight crews and enhanced service levels. Operators in this segment of the market are usually low fare carriers with considerable emphasis on minimizing direct operating costs.

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