2014 Annual Information Form March 18, 2015

2014 ANNUAL INFORMATION FORM MARCH 18, 2015

WestJet 2014 Annual Information Form

OUR DESTINATIONS AT MARCH 18, 2015

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WestJet 2014 Annual Information Form

TABLE OF CONTENTS

CORPORATE STRUCTURE ...... 4

DEVELOPMENT OF THE BUSINESS ...... 5

DESCRIPTION OF THE BUSINESS ...... 8

INDUSTRY OVERVIEW ...... 25

REGULATORY ENVIRONMENT ...... 26

CAPITAL STRUCTURE ...... 29

DIVIDEND POLICY ...... 36

MARKET FOR SECURITIES ...... 36

DIRECTORS AND EXECUTIVE OFFICERS ...... 37

AUDIT COMMITTEE DISCLOSURE ...... 45

MATERIAL CONTRACTS ...... 46

LEGAL PROCEEDINGS ...... 47

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ...... 47

INTERESTS OF EXPERTS ...... 47

RISKS AND UNCERTAINTIES ...... 47

PRIVACY ...... 55

TRANSFER AGENT AND REGISTRAR...... 55

ADDITIONAL INFORMATION ...... 55

DEFINITION OF KEY OPERATING INDICATORS ...... 56

NON-GAAP MEASURES ...... 56

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION ...... 56

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WestJet 2014 Annual Information Form

ADVISORY

The following Annual Information Form (AIF) dated March 18, 2015, should be read in conjunction with the cautionary statement regarding forward-looking information below, as well as the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Results (MD&A), for the years ended December 31, 2014 and 2013. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Additional information relating to WestJet Airlines Ltd., including periodic quarterly and annual reports and press releases, filed with Canadian securities regulatory authorities, is available on SEDAR at sedar.com and our website at westjet.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This AIF contains “forward-looking information” as defined under applicable Canadian securities legislation. Forward-looking information may be identified by words such as “anticipate”, “believe”, “estimate”, “intend”, “expect”, “may”, “will”, “should”, “potential”, “plan” or other similar terms. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information. We can give no assurance that any of the events anticipated will transpire or occur or, if any of them do, what benefits or costs we will derive from them. By its nature, forward-looking information is subject to numerous risks and uncertainties including, but not limited to, the impact of general economic conditions, changing domestic and international airline industry conditions, volatility of fuel prices, terrorism, pandemics, currency fluctuations, interest rates, competition from other airline industry participants (including new entrants, capacity fluctuations and the pricing environment), labour matters, government regulations, stock market volatility, the ability to access sufficient capital from internal and external sources, and additional risk factors discussed in this AIF in other documents we file from time to time with securities regulatory authorities, which are available on SEDAR at sedar.com or, upon request, without charge from us.

The forward-looking information contained in this AIF is expressly qualified by this cautionary statement. Please refer to page 56 of this AIF for further information on our forward-looking information including assumptions and estimates used in its development.

Our assumptions and estimates relating to the forward-looking information referred to above are updated in conjunction with filing our quarterly and annual MD&A and, except as otherwise required by law, we do not undertake to update any other forward-looking information.

NON-GAAP MEASURES

Certain measures in this AIF do not have any standardized meaning as prescribed by generally accepted accounting principles (GAAP) and, therefore, are considered non-GAAP measures. These measures are provided to enhance the reader’s overall understanding of our current financial performance. They are included to provide investors and management with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between periods. These measures are not in accordance with, or an alternative to, GAAP and may not be comparable to similar measures presented by other entities. See Non-GAAP Measures on page 56 of this AIF.

EXPLANATORY NOTES

Consolidation - References to “WestJet”, “the Corporation”, “our Company”, “our”, “we”, and “us” refers to WestJet Airlines Ltd. and its subsidiaries, including WestJet, an Alberta partnership (the Partnership) and the accounts of six consolidated structured entities (CSE), which are utilized to facilitate the financing of aircraft, except where the context otherwise requires. We have no equity ownership in the CSEs; however, the substance of the relationship between WestJet and the CSEs indicates that we control the CSEs. Accordingly, all intercompany balances and transactions have been eliminated.

Currency - All currency amounts are stated in Canadian dollars, unless otherwise noted.

Effective Date - All information is stated at December 31, 2014, unless otherwise indicated.

DEFINITIONS

Various terms used throughout this AIF are defined at page 56 under the heading Definition of Key Operating Indicators.

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WestJet 2014 Annual Information Form

CORPORATE STRUCTURE

Name, Address and Incorporation

WestJet Airlines Ltd. was incorporated under the provisions of the Business Corporations Act (Alberta) (ABCA) on June 27, 1994 as 616373 Alberta Ltd. Our Company’s name was changed to WestJet Airlines Ltd. by Articles of Amendment dated May 30, 1995. On June 21, 1995, our Articles were further amended to alter our share capital, to delete the private company provisions and to affect certain other amendments to facilitate our offering of common shares for sale to the public. On August 30, 2005, we further amended our Articles to alter our share capital to create Common Voting Shares to be owned and controlled by Canadians and Variable Voting Shares to be owned or controlled by non-Canadians (Common Voting Shares and Variable Voting Shares are referred to collectively as the Voting Shares).

Our principal business address is 22 Aerial Place NE, Calgary, Alberta T2E 3J1 and our registered office is Suite 2400, 525 – 8th Avenue SW, Calgary, Alberta, T2P 1G1. Our website address is westjet.com.

Intercorporate Relationships

WestJet has four directly wholly-owned subsidiaries: WestJet Investment Corp., WestJet Operations Corp., WestJet Vacations Inc. and WestJet Encore Ltd. (WestJet Encore), all of which were incorporated under the ABCA, as well as the Partnership, an indirect, wholly-owned Alberta partnership, established under the laws of Alberta. Our airline business is operated by the Partnership. Similar to the operations of WestJet Vacations Inc., all of the sales and marketing of our low-cost, regional carrier, WestJet Encore, are conducted by the Partnership.

WestJet Airlines Ltd. TSX: WJA & WJA.A

WestJet Investment WestJet Operations WestJet Vacations WestJet Encore Corp. Corp. Inc. Ltd. Alberta 100% Alberta 100% Alberta 100% Alberta 100%

91% 9%

WestJet, An Alberta Partnership Alberta

WestJet also utilizes six CSEs to facilitate the financing of owned aircraft supported by the Export-Import Bank of the United States (Ex-Im Bank). Each CSE covers a group of owned aircraft. As noted under the heading Explanatory Notes, the CSEs are consolidated in our financial statements.

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WestJet 2014 Annual Information Form

DEVELOPMENT OF THE BUSINESS

Three-Year History

The following table sets out select financial and operating information depicting the results of our business over the past three years:

($ in thousands, except per unit data) 2014 2013 2012 Financial summary Revenue 3,976,552 3,662,197 3,427,409 Earnings before income taxes 390,307 372,085 340,229 Net earnings 283,957 268,722 242,392 Adjusted net earnings(ii) 317,188(i) − − Basic earnings per share 2.22 2.05 1.79 Diluted earnings per share 2.20 2.03 1.78 Adjusted diluted earnings per share(ii) 2.46(i) − − Cash and cash equivalents 1,358,071 1,256,005 1,408,199 Total assets 4,646,433 4,143,463 3,746,615 Total long-term liabilities 1,530,630 1,147,163 1,086,457 Cash dividends declared per share 0.48 0.40 0.28 Operational summary ASMs 25,584,033,077 23,970,921,260 22,063,583,754 RPMs 20,828,992,613 19,591,173,039 18,262,554,881 Load factor 81.4% 81.7% 82.8% Yield (cents)(iii) 19.09 18.69 18.77 RASM (cents)(iii) 15.54 15.28 15.53 CASM (cents)(iii) 13.68 13.61 13.83 CASM, excluding fuel and employee profit share (cents)(ii) 9.15 9.06 9.12 Fuel consumption (litres) 1,214,001,002 1,144,937,872 1,079,108,614 Fuel costs per litre (cents) 90 91 92 Segment guests 19,651,977 18,485,144 17,423,352 Average stage length (miles) 936 976 978 Utilization (hours) 11.8 12.0 11.9 Number of full-time equivalent employees at period end 8,698 8,000 7,742 Fleet size at period end 122 113 100

(i) 2014 net earnings and diluted earnings per share are adjusted for an after-tax non-cash loss associated with 10 aircraft being classified to assets held for sale in our consolidated statement of financial position associated with the sale of aircraft to Southwest Airlines (Southwest). (ii) Refer to page 56 for a reconciliation of non-GAAP measures (iii) Refer to page 56 for a definition of key operating indicators

2012

In 2012 we announced plans to move ahead with the launch of our low-cost, short-haul, regional airline, WestJet Encore, in the second half of 2013. We selected the Bombardier Q400 NextGen aircraft for Encore’s launch and we placed an order with Bombardier Inc. for 20 aircraft to be delivered through 2015 and options to take an additional 25 aircraft between 2015 and 2018.

2012 also saw the addition of three Boeing 737 NG 800 series aircraft during the year bringing our fleet size to 100 at year end. Over the course of 2012, we launched scheduled service to 10 new destinations: Antigua and Barbuda; Aruba, Netherlands Antilles; Chicago, Illinois; Costa Rica; Curacao; Kingston, Jamaica; New York City (LaGuardia), New York; Manzanillo, Mexico; Trinidad and Tobago; and Whitehorse, Yukon.

Keeping with our strategy to establish strong partnerships with airlines from all major geographic regions around the world, we entered into several additional interline agreements and initiated four new code-share partnerships in 2012: Delta Air Lines, Korean Air, China Eastern Airlines and British Airways.

From a capital management perspective, we increased our dividend twice in 2012 from $0.05 to $0.06 per Voting Share for the first and second quarters and from $0.06 to $0.08 per Voting Share for the third and fourth quarters.

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WestJet 2014 Annual Information Form

We commenced a seat reconfiguration project for our Boeing 737 NGs to support service and product enhancements planned for 2013. The seat reconfiguration project included adding a Plus section of three rows of 36 inches of leg room seating across the entire Boeing 737 NG fleet, with the remaining rows being standardized to 31-32 inches, in line with our North American competitors. Furthermore, our Boeing 737 NG 800s were outfitted with eight more seats while maintaining a comfortable, industry standard, seat pitch.

2013

In January 2013, we launched a three-year company-wide business transformation initiative with the goal to reduce annual costs by $100 million originally by the end of 2015. We achieved this goal of future annual cost savings in 2014 and we continue to remain focused on reducing future costs under our business transformation initiative. Our long-term vision is to ensure WestJet’s CASM are competitive with other low-cost North American airlines, allowing us to continue to offer low fares to our guests.

We completed the seat reconfiguration program and the commercial launch of fare bundles and the Plus product to the market in 2013. While the fare bundles – Econo, Flex and Plus – provide guests with the ability to pay for options they want, the Plus fare guest gained additional flexibility, comfort and convenience through a full list of amenities and options offered by the Plus product. The Plus product includes complimentary flight change and cancellation options, extra baggage allowance, extra legroom, complimentary food and drinks, advance boarding and overhead bin space and priority security screening at certain airports.

In May 2013, we reached an agreement to sell 10 of our oldest Boeing 737 NG aircraft to Southwest Airlines between 2014 and 2015. Concurrent with the sale to Southwest Airlines, we entered into an agreement with Boeing to purchase 10 Boeing 737 NG 800 series aircraft for delivery between 2014 and 2015. The transaction has allowed us to reduce the average age of the Boeing 737 NG aircraft in our fleet by approximately one year as well as reduce our maintenance cost and increase our fuel efficiency related to these 10 aircraft.

In June 2013, we successfully launched our short-haul regional airline, WestJet Encore and we took delivery of our first two Bombardier Q400 aircraft. We ended 2013 with a total of eight Bombardier Q400 aircraft. Also during 2013, we expanded our network and launched service to six new destinations: Myrtle Beach, South Carolina; Dallas, Texas; Nanaimo, Fort St. John and Terrace, British Columbia; and Brandon, Manitoba. We also expanded our network through additional airline partnerships by entering into several additional interline agreements and initiated two new code-share partnerships with Air France and China Southern Airlines.

In September 2013, we entered into an agreement with Boeing to purchase 65 737 MAX aircraft. This transaction consisted of firm commitments to take delivery of 25 737 MAX 7 aircraft and 40 737 MAX 8 aircraft, with deliveries scheduled between 2017 and 2027. We also have substitution rights between these aircraft and the 737 MAX 9 aircraft. Of these 65 aircraft, 15 represent substitutions of our previously existing Boeing 737 NG aircraft orders that were scheduled to be delivered between 2014 and 2018, for a net increase of 50 committed aircraft deliveries to our total fleet. We also have options to purchase an additional 10 737 MAX aircraft between the years 2020 and 2021.

2014

Early on in the year, we announced a multi-year agreement with Panasonic Avionics Corporation to provide us with a new inflight entertainment system on board each Boeing 737 NG aircraft that features wireless satellite internet connectivity, live streaming television, on-demand movies and more, which guests will be able to access using their own personal electronic devices. In conjunction with the new inflight entertainment system, we will also have USB/110 volt power outlets, allowing our guests to charge their devices. Implementation across all our Boeing 737 NG aircraft is expected to be completed by the end of 2016 (please refer to the section called Inflight Entertainment System on page 12 of this AIF for further information). Furthermore, following receipt of a Transport Canada exemption in 2014, guests on our Boeing NG 737 aircraft now have full access to their personal electronic devices during all phases of flight in Canada.

In September 2014, we launched our new WestJet Rewards tiers program featuring three levels – Teal, Silver and Gold, each with varying features, as well as a price drop guarantee on WestJet flights and WestJet Vacations packages. These changes to the Rewards Program are anticipated to help WestJet acquire a larger portion of the frequent traveller market.

In October 2014, we implemented a fee for the first checked bag on Econo fares for travel within Canada and between Canada and the US. This change is anticipated to provide us with the ability to offer reduced base fares reinforcing our

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WestJet 2014 Annual Information Form commitment to being Canada’s low-fare leader. Amongst other awards and benefits, WestJet Silver Reward members are able to check one bag at no cost, WestJet Gold Reward members are able to check two free bags and those guests who hold our WestJet RBC® World Elite MasterCard± are also able to check one free bag.

In November 2014, our flight attendants voted against a proposed tentative agreement. We are currently in the process of negotiations with our flight attendant employee group working towards an agreement that will best serve the interests of WestJetters and the business alike. This agreement is intended to replace the current flight attendant memorandum of agreement and is intended to outline compensation and govern certain work terms for flight attendants. In December 2014, we announced that our pilots voted in favour of a new agreement that will expire on April 20, 2019. This agreement includes enhancements to pay and scheduling, among other terms.

During 2014, we reached a major milestone by launching our first transatlantic flights to Dublin, Ireland, with seasonal daily service from June 15, 2014 to October 5, 2014. We continued to expand our overall network into new markets and in 2014 we announced our second destination to Europe, Glasgow, Scotland, with seasonal service offered on daily non-stop flights from Halifax, Nova Scotia beginning in May 2015, to be operated with our Boeing 737 NG 700 series aircraft. The expansion of our transatlantic flights provides a great opportunity for us to bring our brand and guest experience to new routes and new markets.

We also launched service in 2014 to a new western Canadian destination, Penticton, British Columbia, operated by WestJet Encore. In addition, WestJet Encore further expanded east and began servicing its first two central Canadian destinations along with an announcement in July 2014 of its first Maritime destination, Fredericton, New Brunswick, with service from Toronto, Ontario beginning on April 15, 2015. WestJet Encore achieved an important milestone in July 2014, welcoming its one-millionth guest on board. As at December 31, 2014 we have a registered fleet of 122 aircraft with WestJet, including WestJet Encore, offering scheduled service to 93 destinations in North America, Central America, the Caribbean and Europe. Subsequent to December 31, 2014, we announced two new destinations: Houston, Texas, and Gander, Newfoundland, both with service offered from Calgary, Alberta beginning in the summer of 2015.

With the support of our WestJet Pilot Association, in July 2014 we announced our entry into wide-body service and have since selected four Boeing 767 300 ERW series aircraft. We initially expect to deploy the Boeing 767 300 ERW aircraft on routes between Alberta and Hawaii to replace the service currently operated by Thomas Cook. (For further information please refer to the Routes and Scheduling and Fleet sections on pages 10 and 16 of this AIF).

Finally, we entered into several additional interline relationships and initiated two new code-share partnerships: Qantas Airways and China Airlines, in 2014. As of the date of the AIF, we added one more code-share partnership with Philippine Airlines which brings our total airline partnerships to 46. Establishing strong airline partnerships is one of our key strategies and when including our airline partners, we serve over 150 destinations.

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WestJet 2014 Annual Information Form

DESCRIPTION OF THE BUSINESS

History and Business Strategy

WestJet is a Canadian airline based in Calgary, Alberta. We offer scheduled flights, vacation packages and cargo service across North America, Central America, the Caribbean and Europe. In 2015, we are expanding our transatlantic destination offerings with seasonal service to Glasgow, United Kingdom. We plan to continue adding new markets and additional frequencies to our existing markets through the growth of our regional Bombardier Q400 fleet, our narrow body Boeing 737 NG fleet and, for the first time in 2015, four wide-body Boeing 767-300 ERW aircraft.

Our mission is to enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel.

Our vision is to be one of the five most successful international airlines as measured through metrics such as on-time performance, safety, profitability and guest satisfaction.

Guiding us every day towards accomplishing our mission and vision are our core values:

• commitment to safety; • positive and passionate in everything we do; • appreciative of our people and guests; • fun, friendly and caring; • aligning the interests of WestJetters with the interests of the Company; and • honest, open and keeping our commitments. WestJet was founded in 1996 by a team of Calgary entrepreneurs, headed by Clive Beddoe, as a western Canadian regional carrier with three aircraft flying to five cities. As of the date of this AIF, our airline offers scheduled service to 93 destinations in North America, Central America, the Caribbean and Europe with our fleet of 107 Boeing 737 Next Generation (Boeing 737 NG) aircraft and 19 Bombardier Q400 NextGen (Bombardier Q400 or Q400) aircraft. When including our airline partners, we serve over 150 destinations. Our Competitive Strengths

We have built an operating structure that allows us to be a leading high- value, low-cost airline. We established our competitive strengths and business model through:

• a strong corporate culture;

• an engaged and committed workforce;

• a strong and growing relationship with corporate Canada for the business traveller segment;

• a strong and growing WestJet Vacations business model;

• our low-cost, regional carrier, WestJet Encore;

• consistently striving to be among the top carriers for on-time performance, baggage ratio and completion rate;

• a remarkable guest experience resulting from our guest-centric corporate culture; and

• a healthy balance sheet. Corporate Culture and Guest Service

Our corporate culture is one of our foundational elements and we strongly believe it to be a competitive advantage. We strive to maintain a culture where WestJetters act as leaders and owners and are committed to, and passionately pursue, our mission and vision, while living by our values. We foster a unique culture of caring for our guests and fellow WestJetters as

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WestJet 2014 Annual Information Form well as pride and ownership in our Company. We believe that our culture of care sets us apart from our competitors because of the caring experience that WestJetters provide.

WestJetters

As owners, WestJetters know better than anyone why we are not just another airline. It is because of WestJetters’ dedicated efforts that we continue to grow year after year, striving to create a remarkable experience for each of our guests. We are committed to strong employee development and compensation programs that align with our core values. These programs allow us to take care of WestJetters, which in turn, allow them to take care of our guests. Our caring culture and safety priorities are essential to our continued success.

We aim to ensure WestJetters’ work experience is fun, challenging and rewarding. As the industry continually changes and poses new challenges and opportunities, the dedication of WestJetters to our Company and our guests is a key factor in our success. Competitors may be able to replicate our technologies, products and low-cost infrastructure, but it is much more difficult to replicate WestJet’s highly-motivated people and culture. The remarkable and caring guest service provided by WestJetters creates a strong, lasting relationship between our Company and our guests and ultimately results in guests returning to fly with us in the future. Well-trained and highly-motivated employees are critical to the development and execution of our strategy, especially in the highly-competitive airline and transportation industry. Consequently, the ability to attract, train, motivate, develop and retain the right people is very important. To achieve the highest level of guest service, we foster a culture of empowerment and encourage people to find solutions and make decisions to ensure each guest has an outstanding experience when flying with us.

WestJet’s Altitude Leadership Development Program is focused on developing a community of leaders through business-focused, competency-driven development. This program is grounded in our leadership competency model, strategic platform and award-winning culture. Talent management, diversity and inclusion, and employee engagement are some of the key strategic priorities that we emphasize to help reinforce and grow our strong culture.

Pro-Active Communication Team

Unlike many of our peers in the airline industry, our employees do not belong to a union. To help facilitate effective communication between management and non-management employees, the Pro-Active Communication Team (PACT) was formed in 1999 by non-management employees. Since its creation, PACT has been our recognized employee association, representing the interests of all non-management employees. PACT's mission is to represent its diverse membership by balancing their needs and those of the Company through engaging in positive, collaborative, employee relations and experiences (please refer to the Risks and Uncertainties section of this AIF found on page 47). PACT achieves this through interest-based discussions, communication and resolution. The Chair of PACT holds a seat on our Company’s Board of Directors. PACT is comprised of the following six subgroups that represent the diverse interests within our Company:

• Airports Communication Team

• Aircraft Maintenance Engineers Association

• Flight Attendant Association Board (FAAB)

• Contact Centre & Commercial Distribution

• Technical Administrative and Professional Support

• WestJet Pilot Association (WJPA)

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WestJet 2014 Annual Information Form

WestJet has a memorandum of agreement with PACT. Since 2009, we had an agreement with our pilots under which we agreed, on a balance-of-interests basis, to certain work terms. In December 2014, we announced that our pilots voted in favour of a new agreement, which will expire on April 30, 2019. This agreement includes enhancements to pay and scheduling, among other terms.

WestJet Encore

In 2014, WestJet Encore, our low-cost, short-haul, regional airline, achieved its first full year of successful operations, since its launch in June 2013. In the summer of 2014, WestJet Encore began operations in central Canada with flights between Toronto, Ontario and Thunder Bay, Ontario and service between Thunder Bay, Ontario and Winnipeg, Manitoba. Additionally, we announced the first Maritime destination for WestJet Encore, Fredericton, New Brunswick, with service from Toronto, Ontario beginning April 2015. With the addition of the new Maritime destination, WestJet Encore will have operations spanning coast to coast in Canada. Since June 2013, WestJet Encore has added 12 destinations to the original six destinations, which included Calgary, Alberta, Fort St. John, Nanaimo, Vancouver, and Victoria, British Columbia and Saskatoon, Saskatchewan. Since its launch, the WestJet Encore fleet of Bombardier Q400 NextGen aircraft has grown from two to 15 at the end of December 2014.

Routes and Scheduling

WestJet has a comprehensive network that encompasses domestic, transborder and international routes, which we serve using a mix of Boeing 737 NG aircraft, Bombardier Q400 aircraft and, beginning in 2015, Boeing 767 300 ERW aircraft. The Boeing 737 NG aircraft is versatile and is capable of short-haul flying as well as trans-continental flying, the Bombardier Q400 turboprop is most efficiently used for short-haul flying and the Boeing 767 300 ERW provides an opportunity to explore more overseas, long-haul flying. Our average stage length was 936 miles in 2014. Since the introduction of WestJet Encore and the Bombardier Q400 aircraft in 2013, our average stage length decreased slightly as shorter-haul WestJet Encore flights become a more significant portion of our overall flights.

In comparison to the United States of America (U.S.), the volume of domestic travel within Canada is lower, necessitating growth beyond the domestic market. To capture some of this demand, we introduced transborder service in 2004, Caribbean service in 2006, service to Mexico in 2007, service to Central America in 2012, and service to Europe in 2014. At December 31, 2014, our guests could book WestJet operated flights to 22 U.S. destinations and 31 international destinations. On a full year basis in 2014, 46 per cent of our system capacity was allocated to the transborder and international markets, representing a one per cent increase over 2013. In response to periods of weaker domestic demand resulting from Canada’s harsh winters, we allocate a significant portion of our system capacity towards higher-demand transborder and international markets over the peak winter months.

We also have a number of airline partnerships in place that bring additional guests into our network from transborder and international destinations and increase the number of destinations available to our guests. Consequently, our airline partnerships are also able to increase our traffic and help offset seasonal demand patterns. As at the date of this AIF, we have 46 airline partners that allow our guests to access over 150 destinations, including our WestJet operated destinations.

The following table depicts our capacity, measured in available seat miles (ASM), allocation between our domestic and transborder and international markets:

2014 2013 ASMs % of total ASMs % of total Domestic 13,883,212,833 54.3% 13,157,007,097 54.9% Transborder and international 11,700,820,244 45.7% 10,813,914,163 45.1% Total 25,584,033,077 100.0% 23,970,921,260 100.0%

We believe that the network configuration and capacity of an airline is one of the most significant factors in its marketing strategy. Travellers often use criteria such as non-stop service, time of day and flight frequency when selecting an airline. We continuously strive to de sign a network that meets the needs of our guests and provides affordable air travel that stimulates demand. We continue to add non-stop routes to our network to increase the travel convenience for our guests. For markets

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WestJet 2014 Annual Information Form without non-stop service and to supplement non-stop routes, we offer through flights or connection services for our guests. To maximize aircraft utilization, we look for opportunities to operate our fleet during off-peak times when the aircraft would otherwise be idle, to serve markets that may not be as time sensitive or may be better served by evening flights.

Through our network and competitive fares, we aim to stimulate demand from guests who would not otherwise travel or from guests who would select another airline. We estimate that when we enter a new market the net effect to that market is an overall increase in total traffic from the combination of our network, schedule and lower fares. This means we are often able to create new demand when we enter new markets.

With the support of our WJPA, in 2014 we announced our entry into wide-body service and have selected four Boeing 767 300 ERW series aircraft. We initially expect to deploy the Boeing 767 300 ERW series aircraft on routes between Alberta and Hawaii in 2015 in order to replace the service currently operated by Thomas Cook. The addition of wide-body aircraft to our WestJet fleet allows us to explore the expansion of our operations into additional overseas markets.

As our fleet, including our future deliveries of Boeing 737 MAX aircraft (737 MAX) and Boeing 767-300 ERW, continues to expand, we expect to establish additional profitable routes in Canada, the U.S. and internationally. Our evolving aircraft mix has also allowed us to provide increased route frequency, increased non-stop routes and improved scheduling times and connectivity to our guests.

WestJet Vacations WestJet Vacations provides guests with affordable, reliable and flexible travel experiences to 58 destinations in 20 countries, including the U.S., Mexico, the Caribbean, Central America and Europe. Leveraging our fun and friendly culture, extensive network and world-class guest experience, WestJet Vacations offers guests a great flight schedule and a wide variety of resorts, hotels, condos, car rental and tour attraction options to create fun and affordable vacation experiences. Guests can also earn and redeem their WestJet dollars (please refer to the WestJet Rewards Program section on page 13 of this AIF) on WestJet Vacations packages.

WestJet Vacations plays a key role in supporting our network expansion and contributes to our overall profitability. Our WestJet Vacations’ business continues to expand its partnerships with hotels, car rental agencies, tour operators and other travel related partners in order to provide a variety of customized vacation options to meet our guests’ needs.

Cargo

WestJet is a belly-space cargo operator, servicing shippers of non-containerized products in its Boeing 737 NG and Bombardier Q400 aircraft, excluding dangerous goods. Our cargo marketing and sales functions are managed by EXP-AIR Cargo (EXP- AIR). EXP-AIR enables us to automate our cargo handling services, allowing for real-time tracking and tracing of all shipments in our network and electronic transfer of data to our flight planning system. EXP-AIR also provides the opportunities for bilateral transborder and international cargo shipments with electronic transfer of data to both customs and security authorities.

Our cargo operations have active screening of all cargo products traveling on our aircraft. Our efforts in this regard were undertaken independently and in advance of any regulatory requirements to do so. To further enhance security, we have also added screening measures that complement Transport Canada requirements.

We also have a dedicated, stand-alone cargo website, westjet.com/cargo, which allows guests to better utilize our airline’s cargo shipping services. The website has a variety of guest-friendly features while, at the same time, creating additional efficiencies for our cargo operations.

We continue to develop and expand our interline cargo agreements with partners that complement our current network and future growth plans. At the date of this AIF, our cargo operations currently serve 21 domestic cities, nine U.S. cities and 10 international cities with plans to expand to two additional U.S. and two additional international locations in 2015. On February 23, 2015 we announced that WestJet Cargo was named Best Air Cargo Provider 2014 by Canadian supply chain companies. Products and Services

Where price and schedule are equal, the guest’s decision-making process focuses on other aspects of the travel experience, such as the quality of product and guest service. In addition to providing low fares and exceptional guest service, we believe it is important to pursue other means to add value in order to differentiate our product.

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WestJet 2014 Annual Information Form

Our three different fare types, Econo, Flex and Plus, provide our guests the ability to customize their experience by selecting the fare type that best suits their needs. Our Econo fare type offers our lowest fares and is ideal for guests who do not require additional flexibility in their travel plans. The Flex fare type provides our guests with added flexibility, including reduced change and cancel fees, and one complimentary checked bag. Plus fares provide for maximum flexibility, comfort and convenience, and include complimentary flight change and cancellation options, extra baggage allowance, priority screening (at available airports), and seating in our Plus section (except on flights operated by WestJet Encore). Guests seated in our Plus section enjoy advance boarding and first access to overhead bins, extra legroom in the first three rows of the aircraft and complimentary food and beverages from our onboard menu. Further information on our fares can be found under the heading Fares, on page 14 of this AIF. Our Plus product is part of our ongoing effort to enhance our value proposition for business and leisure travellers.

We continue to develop value-added products and services aimed at enhancing our remarkable guest experience. Other products and services we offer include:

• an in-seat entertainment system on the majority of our Boeing 737 NG aircraft that provides live satellite television and pay-per-view options (described further under the heading Inflight Entertainment System below);

• comfortable cabins featuring leather seats;

• self-serve check-in abilities, and self-serve kiosks for baggage tagging at most major airports;

• enhanced web and mobile check-in services, electronic boarding passes and email and text message communications for up-to-date flight information;

• WestJet mobile app for Android devices for quick and easy features to book flights/vacations/car/hotel, check-in, check flight status, contact WestJet and a feature to provide feedback;

• WestJet mobile app for iPhone/iPad, providing the ability to book flights, modify existing reservations, check in for upcoming flights and check flight status information;

• buy-on-board food and beverage products, including the ability to pre-order these products for departures from select airport locations;

• access to a number of airport lounges at select major airports;

• the WestJet Rewards Program, which allows members to earn our reward currency, WestJet dollars, on their WestJet flights and WestJet Vacations packages as well as everyday purchases on the WestJet RBC® MasterCard± (please refer to the section called WestJet Rewards Program on page 13 of this AIF for further information); and

• multiple sales channels for convenient booking options, including westjet.com, WestJet contact centre, mobile devices, travel agencies and travel websites as well as in person at airport counters.

Inflight Entertainment System

On February 14, 2014, we announced a multi-year agreement with Panasonic Avionics Corporation to provide us with a new inflight entertainment system that features wireless satellite internet connectivity, live streaming television, on-demand movies and more, throughout North America, the Caribbean, Central America, Europe and other future WestJet destinations. Guests will be able to use their own personal electronic device to receive live and stored content streamed wirelessly from a server on board each WestJet Boeing 737 NG aircraft. Airtime packages will also be available to provide guests with the ability to surf the internet, access email or plan a vacation on westjet.com. For those guests not travelling with a device, we plan to make tablets or other similar electronic devices available for rent on board the aircraft. The addition of WiFi is a strategic step forward to enable our business travellers to make their time in the air as productive as possible.

We will also install USB/110 volt power outlets in new, slimmer seats on our Boeing 737 NG aircraft to enable guests to charge their devices. With a mix of free and paid content, the new system offerings will create additional ancillary revenue opportunities for our Company.

Installations of the new inflight entertainment system are currently ongoing with installations complete on four WestJet Boeing 737 NG aircraft. Implementation across all our Boeing 737 NG aircraft is expected to be complete by the end of 2016. The inflight entertainment system will be activated once we complete all operational requirements including receipt of operational approval from Transport Canada.

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WestJet 2014 Annual Information Form

Until such time as our new inflight entertainment system is installed, our guests can still enjoy our current in-seat entertainment system on the majority of our Boeing 737 NG aircraft. Our current system provides up to 24 channels of live satellite television from Bell TV on our domestic flights as well as four pay-per-view channels offering new release movies on domestic flights with sufficient flight duration. On our transborder and international flights, where our live satellite television is not available, we offer four channels of complimentary new release movies and other pre-recorded television programming. Our programming is selected to provide relevant and regional content for our guests. On our Boeing 737 NG aircraft that do not have our in-seat entertainment system installed, on flights that exceed three hours and twenty minutes, we offer tablets loaded with a selection of movies and television programs for a small rental fee.

Onboard Service and Sales

On most of our flights, we offer complimentary snacks and non-alcoholic beverages as well as alcoholic beverages and a variety of food products to our guests for purchase. Our guests seated in our Plus section receive complimentary food and beverage from our onboard menu and guests travelling on WestJet Encore receive complimentary beer and wine. We continue to evolve our buy-on-board food and beverage products to meet the changing preferences of our guests while keeping quality and value top-of-mind. Guests have the option to purchase onboard products by using a major credit card or a pre-paid voucher that can be purchased at any of the airports that we serve. We also offer a pre-order program out of select airports that enables guests to pre-order sandwiches online prior to check-in.

WestJet Rewards Program

In 2014, we enhanced our WestJet Rewards Program to include three tiers: Teal, Silver and Gold. With our new tiers, our most frequent guests can earn WestJet dollar rewards at higher rates on WestJet flights, milestone awards and easy-to-use flight benefits. We expect the offer to compliment our strategy to gain a greater share of the frequent traveller market.

The WestJet Rewards Program allows members to earn our reward currency, WestJet dollars on WestJet and WestJet Encore flights as well as WestJet Vacations packages, including hotels, car rentals and tour attractions booked through WestJet Vacations. We have also partnered with RBC Royal Bank® and MasterCard± to offer both a basic and premium credit card product that allows members the opportunity to earn WestJet dollars through their everyday credit card purchases. The WestJet RBC® World Elite MasterCard± demonstrates a strong value proposition with a welcome bonus of $250 WestJet dollars, a $99 annual companion flight (plus taxes, fees and charges), and a free first checked bag for primary card holders and up to eight additional guests travelling on the same reservation.

Members of the WestJet Rewards Program can use their WestJet dollars towards any WestJet flight, including WestJet Encore flights, or WestJet Vacations package with no blackout restrictions. The simplicity of our rewards program has been well received by our guests and continues to increase our brand awareness, guest loyalty and presence in the travel rewards market. In 2014, the WestJet RBC® World Elite MasterCard± and the WestJet RBC® MasterCard± continued to be recognized as top travel rewards cards in Canada. In September 2014, the WestJet RBC® World Elite MasterCard± was recognized as Canada’s best travel rewards card according to MoneySense magazine for the second year in a row and most recently in December 2014, WestJet RBC® World Elite MasterCard± and WestJet RBC® MasterCard± were once again voted as Canada's top travel rewards credit cards in the airline category, according to RewardsCanada.ca.

The WestJet Rewards Program also has a reciprocal frequent flyer agreement with American Airlines (American). Under this arrangement, WestJet Rewards members are able to earn additional WestJet dollars when they fly on flights marketed and operated by American. In December 2014, WestJet announced another reciprocal frequent flyer agreement with Delta Air Lines. The agreement allows WestJet Rewards members to earn WestJet dollars on flights marketed and operated by Delta Airlines, with access to Delta’s extensive global network of more than 300 destinations on six continents. We are continuously looking to enhance the value proposition of our Rewards program by evaluating new airline partners as well as popular non- airline retailers.

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WestJet 2014 Annual Information Form

Marketing and Advertising

Our marketing and advertising strategy builds and maintains awareness of our brand promise, which is to deliver a quality product and experience in a safe, caring, friendly and guest-focused way.

We use various mediums to advertise our brand to the individual consumer and the travel industry. Consumer advertising mediums include print, radio, television, outdoor, digital marketing, point-of-sale signage, digital video boards, elevator TV, news networks, social media and specialty publications. Industry advertising involves dedicated messaging to travel agents in trade magazines and online mediums.

Our marketing and advertising efforts are used to aid new or existing routes, build brand and product awareness, increase sales during non-peak times and support key partnerships. These efforts also include partnerships with local, regional, national and international radio, television and print as well as partnering with car rental, hotel and major tourist attraction companies to reach both potential and existing guests and support our marketing objectives across our entire network.

In 2014, we launched the Above and Beyond campaign, that celebrates great Canadians who make a difference in the lives of everyone they meet. This campaign builds on the Owners Care platform and moves from telling stories about our great WestJetters to celebrating great Canadians going above and beyond. Through the Above and Beyond website (aboveandbeyond.ca), as well as through television, movie theatres, online and on social media, we showcase stories about people within and outside of WestJet who care about each other and their communities and whose actions show that caring makes a difference. These stories inspire us to serve our guests better.

Fares

We strive to offer great value for our fares by providing a high-quality, differentiated product comprised of safe, caring and friendly service as well as a comfortable and entertaining flight experience. We offer three different fare bundles: Econo, Flex and Plus. Fares are based on one-way travel in order to avoid penalizing guests for not booking a round-trip flight. Tickets must be paid for at the time of reservation and are non-refundable after 24 hours, allowing us to avoid overbooking our flights. Guests may cancel or change their itinerary for a fee under our Econo fare and a reduced fee under our Flex fare, while our Plus fare guests have complimentary flight change and cancel options. All guests who cancel or change their itinerary will either pay or be credited the difference in fare, if any. Access to our Plus seats are included in our Plus fares, and Econo fare and Flex fare guests have the opportunity to upgrade to a Plus seat for a fee, if one is available when they check-in for their flight.

Our revenue management process aims to maximize long-term guest revenues by balancing the fares offered with flight demand. This is accomplished by offering multiple fare levels and products to satisfy both our leisure and business guests. Our fare structure is designed to offer value-based everyday low fares with the objective of encouraging guests to purchase flights when they are ready to book, rather than relying on a seat sale.

In 2014 we launched a price-drop guarantee on WestJet flights and WestJet Vacations packages. Guests who see that the price of their flight has dropped more than $25 or the price of their vacation package has dropped by more than $50 since their original purchase can receive the difference in WestJet dollars.

In the fourth quarter of 2014, we began charging a $25 fee for a first checked bag on Econo fares for travel within Canada and between Canada and the U.S. Guests flying to any of our international destinations may continue to check a first bag at no charge. Amongst other awards and benefits, Silver WestJet Rewards members are able to check one bag at no cost, Gold WestJet Rewards members are able to check two free bags and those guests who are primary cardholders of our WestJet RBC® World Elite MasterCard± are also able to check one free bag.

Key Operational Performance Indicators

One of our key objectives is to maintain on-time flight operations in a safe and efficient environment. An important component of high-quality guest service is ensuring all our guests arrive at their destination on time. On-time performance, an important measure of the reliability of an airline, ensures guests are not inconvenienced and that costs associated with delayed flights, such as guest compensation for hotel stays, meals and other incidentals, are minimized.

We continue to strive to rank among the top North American airlines in three key operational performance measures for the industry:

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WestJet 2014 Annual Information Form

• on-time performance: the percentage of scheduled flights that arrive within 15 minutes of the scheduled arrival time or earlier;

• completion rate: the percentage of scheduled flight legs completed, calculated as the number of scheduled flight legs operated divided by the total number of scheduled flight legs; and

• baggage ratio: the number of delayed, lost baggage, damaged or pilfered claims made per 1,000 guests.

On-time performance and completion rates are calculated based on the U.S. Department of Transportation’s standards of measurement for the North American airline industry. The following table depicts our current key operational performance ratios:

2014 2013 Change On-time performance 78.9% 73.9% 5.0 pts. Completion rate 98.6% 98.6% 0.0 pts. Baggage ratio 4.66 4.78 2.5%

Additionally, we have an Operations Control Centre (OCC) that operates 24 hours a day to assist with on-time performance goals by minimizing aircraft ground time through efficient flight, crew, weight and balance planning. The OCC also controls and monitors our aircraft movement across our network. If poor weather conditions, crew delays or mechanical issues force an unexpected change in the schedule, the OCC works in conjunction with our Guest Solutions department to make alternate plans to ensure guests are re-accommodated with as little inconvenience as possible.

Technology

Information Technology (IT) plays a wide-reaching and key role in our business model and day-to-day activities. Among many factors, a strong IT infrastructure enables us to enhance a guest’s experience, increase efficiencies in our airline operations, lower costs and safeguard information.

Some of the significant IT developments in 2014 include:

• the successful expansion of our contact centre work-from-home initiative, enabled by our new telecommunications platform, that has resulted in approximately 70% our contact centre agents being able to work from home;

• continuous enhancements to westjet.com that create a convenient, streamlined and easy-to-use online experience for our guests to manage their entire travel experience from beginning to end including: booking flights, hotels, cars, insurance, earning and redeeming WestJet Rewards, pre-reserved seating, change and cancellation options, and many more online options and features;

• the introduction of a WestJet iPhone app available for free download from the Apple App Store, providing the ability to book new flights, modify existing reservations, check in for upcoming flights and get flight status information.

For 2015, we plan to leverage our new technologies further by bringing more easy-to-use self-service capabilities to our guests, initiating a baggage tracking feature for our guests traveling through numerous airports, and continuing to enhance the reliability and availability of our critical IT airline operations systems.

Contact Centre

Currently WestJet guests are supported by our contact centre located in Calgary. The contact centre is comprised of five divisions (the Sales Super Centre, WestJet group sales, WestJet Vacations, WestJet Vacations groups and Reservation Support Desk). The contact centre provides support 24 hours a day, seven days a week in both English and French.

Our contact centre agents answer over 5 million calls per year. The nature of these calls is diverse and includes sales calls as well as after sales support for both guests and other WestJet operations teams.

As noted under the Technology heading above, the telecommunications platform used in our contact centre has allowed us to implement a work-from-home program where approximately 70 per cent of our contact centre agents work out of their homes. The benefits of this program include cost savings to WestJet, avoiding bad weather and other causes of absenteeism, freeing valuable office space for future growth, enabling flexible work schedules, expanding our access to the language labour pool and reducing environmental impacts associated with employees travelling to work.

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WestJet 2014 Annual Information Form

Travel Agents and Online Travel Agents

We continue to work closely with the travel industry in North America and we plan to further expand our relationships with the travel industry as we enter new international and transborder markets.

Our travel agent partners and the travel agency community are important strategic relationships that help us achieve continued growth. Growing our presence in both the travel agent and online travel agent market contributes to our revenue growth and brand awareness. We continue to recognize and support our travel agent community by paying compensation that is directly tied to revenue targets.

Many of our travel agency partners feed their back-end systems directly from a Global Distribution System (GDS). Our reservation system allows our travel agency partners to make bookings efficiently and effectively via a GDS by allowing them direct, real-time access to our flight inventory. With the continued expansion of our airline partnerships through code-share and interline agreements, the GDS capabilities of our reservation system makes it easier for the travel industry and their corporate partners to conduct business with us.

Airline Partnerships

We remain focused on our strategy of establishing strong partnerships with airlines from all major geographical regions around the world. Over the course of 2014 we entered into several additional interline relationships and initiated two new code-share agreements: Qantas Airways and China Airlines. At the date of this AIF, we have partnership agreements in place with 46 airlines, allowing us to welcome new guests from around the world. Through our ability to sell destinations operated by our airline partners, our guests can currently access over 150 destinations.

We continue to be approached by airlines from around the world asking us to enter into code-share or interline agreements. We will continue to expand our partnerships where we see the opportunity for profitable growth to destinations that complement our existing network.

Fleet

Fleet performance is critical for an airline to be successful and particularly important in an environment of significant fuel costs, navigation charges and landing fees. Fuel remains our most significant cost, representing 31 per cent of total operating expenses in 2014. Selected for their operational success rate and fuel efficiency, the Boeing 737 NG and Bombardier Q400 aircraft are our preferred aircraft and the preferred aircraft of many other successful airlines.

As we continue expanding into new markets, a significant component of our success depends on our ability to match demand with capacity. The population distribution of Canada is spread over large distances between major cities and smaller communities. Accordingly, a fleet consisting of only one aircraft type and series model would not adequately serve Canada’s diverse population distribution and commercial air travel demand environment. To optimize capacity across different demand environments, we have four different aircraft capacity configurations: the Boeing 737 NG 800 series with 174 seats, the Boeing 737 NG 700 series with 136 seats, the Boeing 737 NG 600 series with 119 seats and the Bombardier Q400 with 78 seats. Our 44 leased Boeing 737 NG aircraft also provide us with valuable capacity flexibility through our ability to return or extend lease terms based on our outlook for commercial air travel in the markets we serve and the overall economic environment.

In May 2013, we reached an agreement to sell 10 of our oldest Boeing 737 NG aircraft to Southwest Airlines between 2014 and 2015. As of the date of this AIF, seven of these aircraft were delivered the remainder of which will be delivered in the first half of 2015.

During 2014, we took delivery of seven Boeing 737 NG 800 series aircraft and seven Bombardier Q400 aircraft. We also extended a total of 12 Boeing 737 NG 700 series aircraft leases in 2014 and extended an additional five leases (four Boeing 737 NG 700 series and one Boeing 737 NG 800 series) as of the date of this AIF. This includes three leases previously scheduled to expire in 2014, 10 previously scheduled to expire in 2015 and four previously scheduled to expire in 2016. Additionally, during 2014 we converted 10 of our purchase options with Bombardier to firm orders for Q400 aircraft.

At December 31, 2014, WestJet had a registered fleet of 122 aircraft with a combined average age of our Boeing 737 NG and Bombardier Q400 fleet being 6.8 years. Looking forward, we have firm commitments to take delivery of an additional 18 Boeing 737 NG aircraft, 65 Boeing MAX aircraft and an additional 15 Bombardier Q400 aircraft. In addition, in the fourth quarter of 2014, we agreed with Boeing to lease four 767-300 ERW series aircraft with an option to purchase prior to lease

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WestJet 2014 Annual Information Form commencement, with the first scheduled deliveries expected to occur in 2015. The combination of our firm commitments and the lease renewal options help us to optimize the size and age of our fleet. This provides us with the flexibility within our firm commitments to end 2027 with a fleet size between 171 and 219 aircraft, depending on future decisions to exercise options to purchase and lease renewals.

The following table illustrates our Boeing and Bombardier fleet as at December 31, 2014, as well as our firm commitments by year to 2017, by three-year period from 2018 to 2023, by four-year period between 2024 and 2027 and in total at the end of 2027:

Future Deliveries Dec. 31, Dec. 31, 2018- 2021- 2024- 2015 2016 2017 Total 2027 2013 2014 20 23 27 (viii) Boeing 737-600 NG 13 13 ― ― ― ― ― ― ― 13 737-700 NG(i) 69 64 ― ― ― ― ― ― ― 64 737-800 NG(ii)(viii) 23 30 12 5(iii) 1(iii) ― ― ― 18 48 737 MAX 7(iv)(v) ― ― ― ― ― 6 4 15 25 25 737 MAX 8(iv)(v) ― ― ― ― 4 19 11 6 40 40 767-300 ERW(vi) ― ― 2 2 ― ― ― ― 4 4 105 107 14 7 5 25 15 21 87 194

Disposals(viii) ― ― (5) ― ― ― ― ― (5) (5)

Total Boeing aircraft 105 107 9 7 5 25 15 21 82 189

Lease expiries ― ― (5) (6) (6) (21) (10) ― (48) (48)

Total Boeing aircraft 105 107 4 1 (1) 4 5 21 34 141 after lease expiries

Bombardier

Q400 NextGen(vii)(viii) 8 15 10 5 ― ― ― ― 15 30

Total Fleet 113 122 19 12 5 25 15 21 97 219

Total Fleet after 113 122 14 6 (1) 4 5 21 49 171 lease expiries

(i) At December 31, 2014, of the 64 Boeing 737 NG 700 aircraft in our fleet, 30 are leased (Dec. 31, 2013 – 30) and 34 are owned (Dec. 31, 2013 – 39). (ii) At December 31, 2014, of the 30 Boeing 737 NG 800 aircraft in our fleet, 14 are leased (Dec. 31, 2013 – 14) and 16 are owned (Dec. 31, 2013 – 9). (iii) We have an option to convert five of these Boeing 737 NG 800 future deliveries to Boeing 737 NG 700 aircraft (four in 2016 and one in 2017). (iv) We have options to purchase an additional 10 Boeing 737 MAX aircraft between the years 2020 and 2021. (v) WestJet’s Boeing 737 MAX 7 and MAX 8 aircraft orders can each be substituted for the other model of aircraft, or for Boeing 737 MAX 9 aircraft (vi) We have an option to purchase the Boeing 767 300 ERW series aircraft prior to delivery. (vii) We have options to purchase an additional 15 Bombardier Q400 aircraft between the years 2015 and 2018. (viii) Between December 31, 2014 and March 18, 2015, we took delivery of an additional three Bombardier Q400 aircraft, two Boeing 737 NG 800 series aircraft and have delivered two additional Boeing 737 NG 700 series aircraft to Southwest. Aircraft Financing

We regularly analyze the costs and benefits of lease versus debt-financed purchases of aircraft. As of the date of this AIF, we have a total of 125 aircraft: 44 are financed through operating leases and 81 are owned. Of our 81 owned aircraft, 49 are financed with term loans from chartered banks and debt guarantees from the Ex-Im Bank and 18 are financed with term loans from EDC. We have managed the risk of future foreign currency fluctuations on our debt through securing lending facilities denominated in Canadian dollars and have also managed the risk of future interest rate fluctuations through fixing the interest rates on our debt.

On June 18, 2014, we entered into a credit agreement with a syndicate of banks whereby we initially had access to an unsecured, revolving $250 million syndicated credit facility originally maturing in June 2017. On February 2, 2015, we received Board approval to increase the credit facility to $300 million and extend the maturity to June 2018 The credit facility is available for general corporate purposes, including the funding of future aircraft acquisitions, and now matures in June 2018 with an option to extend the three year term on an annual basis. Funds from the revolving credit facility can be drawn by way of: (i) Canadian dollar prime loans, (ii) US dollar base rate loans, (iii) US dollar LIBOR loans, (iv) Canadian dollar bankers’

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WestJet 2014 Annual Information Form acceptances, and (v) Canadian or US dollar fronted letters of credit. Interest is calculated by reference to the applicable base rate plus an applicable pricing margin based on our debt rating. We also pay a standby fee for the undisbursed portion of the revolving credit facility. At December 31, 2014, no amounts were drawn on the facility.

On July 23, 2014, we successfully completed a private placement offering for $400 million aggregate amount of 3.287% Senior Unsecured Notes, due July 23 2019. We used a portion of the net proceeds from the sale of these notes to repay the amounts drawn under our revolving credit facility during the year with the balance to be used for general corporate purposes, including the funding of future aircraft acquisitions.

The Senior Unsecured Notes were issued pursuant to a Note Indenture dated July 23, 2014 between us and CST Trust Company. The aggregate principal amount of notes which may be issued under the Note Indenture is unlimited. Additional notes with varying maturity dates and interest rates, in each case as determined by us, may be issued under the Note Indenture. The Note Indenture sets out the terms and conditions of the notes and for the future issuance by us of additional notes. Our obligations under our Senior Unsecured Notes and the Note Indenture have been unconditionally and irrevocably guaranteed by the Partnership and WestJet Encore. In addition, each of WestJet Investment Corp. and WestJet Operations Corp. are jointly liable as guarantors each in their capacities as a general partner of the Partnership. The Senior Unsecured Notes are redeemable by us at our option upon not less than 30 days' and not more than 60 days' notice at a specified price and we may, at our option, purchase notes for cancellation. In certain change of control circumstances we are required to offer to repurchase the notes from holders at a purchase price payable in cash equal to 101% of the aggregate outstanding principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase. In addition, as long as there are notes outstanding, the Note Indenture also places certain limitations on us with respect to the treatment of the notes in the case of a transaction or series of transactions involving the sale of all or substantially all of the aggregate property of WestJet and its subsidiaries, taken as a whole.

On March 11, 2013 we entered into an $820 million loan agreement with EDC for the future purchase of Bombardier Q400 aircraft. Under the loan agreement, we are charged a non-refundable commitment fee of 0.2 per cent per annum on the undisbursed portion of the loan. The undisbursed portion of the loan at December 31, 2014, was $575.1 million. Availability of any undrawn amount expires on December 31, 2018. The expected amount available for each aircraft is up to 80 per cent of the net price with a term to maturity of up to 12 years, repayable in quarterly instalments, including interest at a floating or fixed rate, determined at the inception of the loan.

The terms of the EDC and Canadian Chartered Bank financing adhere to the Aircraft Sector Understanding (ASU) that was adopted by a number of participating Organisation for Economic Cooperation and Development countries on September 1, 2011. The ASU sets forth rules applying to export credit support for the purchase and sale of aircraft.

Insurance

We carry aviation and commercial insurance at levels deemed by management to be appropriate and reasonable for the nature of our operations including coverage for aircraft damage and liability resulting from our operations as well as coverage for general liability and property damage.

In addition to the limits that we purchase, the Canadian federal government continues to indemnify us for third-party war- risks liability in excess of the sub-limits purchased. We are unable to predict the certainty of insurance coverage provided by the Federal government on a go-forward basis, and while replacement coverage is now available in the commercial markets, the costs are as yet unknown and it is not known what impact this will have on the future cost of insurance and our future performance.

Fuel Management

Volatile fuel costs can significantly impact our operating results. Our average cost of fuel, including our effective cash flow fuel hedges, over the past three years is as follows:

Fuel Consumption Fuel Cost per Litre Per cent of Operating Year (litres) ($/L) Costs 2012 1,079,108,614 0.92 33 2013 1,144,937,872 0.91 32 2014 1,214,001,002 0.90 31

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WestJet 2014 Annual Information Form

Jet fuel prices had been relatively high since 2011, however prices have drastically decreased in the fourth quarter of 2014 and into the early stages of 2015. In the fourth quarter of 2014, despite a weaker Canadian dollar versus the US dollar on a year-over-year basis, the average market price for jet fuel in Canadian dollars decreased to $114 per barrel compared to $130 per barrel in the fourth quarter of 2013. This decrease was due to the significant decline in the US dollar market price for jet fuel, which was partially offset by the weaker Canadian dollar.

Historically, there has been a correlation between the price of crude oil, jet fuel and the Canadian dollar. As the price of West Texas Intermediate (WTI) crude increases, so does the price of jet fuel, and the Canadian dollar typically strengthens, acting as a natural hedge. Conversely when WTI decreases, so does the price of jet fuel, and the Canadian dollar typically weakens, thereby offsetting some of the benefits of a declining foreign-denominated WTI and jet fuel prices. The average market price for jet fuel in Canadian dollars for full year 2014 remained unchanged compared to 2013 as the decrease in the average US dollar market price for jet fuel was offset by the weaker year-over-year Canadian dollar.

Currently we do not hedge our fuel costs based on our strong financial position and our ability to adjust to volatile fuel prices. We will continue to monitor and adjust to movements in fuel prices and may re-visit a hedging strategy as changing markets and competitive conditions warrant.

We have adopted measures and continually investigate opportunities to mitigate the impacts of high fuel costs. Reducing the weight on our aircraft, improving operating procedures to optimize fuel burn and working with our aircraft and materials suppliers to improve fuel efficiency and reduce into-plane costs are some of the key measures that we have adopted. We have also consolidated our fuel efficiency and performance data into a fuel management and reporting software system. This state- of-the-art system has enhanced our ability to identify new efficiencies by optimizing the amount of fuel carried by our aircraft. Our fuel management process also includes evaluating the security of our supply of jet fuel to avoid potential supply interruptions. To ensure a continuous and reliable source of fuel, we have diversified our fuel sources and have strategically invested in fuel-storage infrastructure.

We continue to be engaged with the Canadian federal government and industry stakeholders to advance the development and production of biofuels for aviation in Canada. We support the development of sustainable aviation biofuels that have a minimal impact on the ecosystem, do not displace or compete with food crops and are economically viable. By accelerating the production of sustainable, Canadian-made aviation biofuel, the aviation industry can achieve further significant emission reductions. This will strengthen the competitiveness of our industry so that we can continue to deliver the affordable, safe and caring service that our guests expect.

Foreign Exchange

Since December 31, 2013, the Canadian dollar has continued to weaken compared to the US dollar. The nature of our business is such that we have exposure to fluctuating foreign exchange rates as we have a number of significant capital and operating expenditures denominated in, or directly correlated to, US dollars, namely certain: aircraft and aircraft part purchases, aircraft leasing costs, aircraft fuel, aircraft maintenance costs, airport operating costs and hotel, tour attraction and car rental costs related to our WestJet Vacations packages. Our WestJet and WestJet Encore flights and WestJet Vacation packages are predominantly sold in Canadian dollars; therefore adverse changes in the exchange rate between the Canadian dollar and the US dollar can negatively impact our margins.

To mitigate the impact of our US dollar exposure, we periodically enter into derivative instruments, such as foreign exchange forward contracts, to fix the future foreign exchange rate on certain future US dollar outflows. Currently our hedging activities relate to US-dollar denominated aircraft lease payments. We continuously monitor and evaluate our financial risk management policies, which include the use of foreign exchange derivative instruments and fare adjustments to our flights and vacation packages, to mitigate the foreign exchange impacts to our margins.

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WestJet 2014 Annual Information Form

Infrastructure

Our real estate infrastructure is comprised of three types of facilities: office space for administrative functions, hangar space for aircraft maintenance and airport terminal space for airport operations. Facility needs are assessed based on fleet growth, aircraft destinations, maintenance requirements and planned expansion of operating departments. Details of our facilities at December 31, 2014 are listed in the table below:

Function Location Size (ft2) Owned or Leased Hangar and Office Calgary, AB 189,000 Owned IT Data Centre (Hangar) Calgary, AB 12,600 Owned Flight Simulators Calgary, AB 14,250 Owned Fred Ring Building (Campus) Calgary, AB 315,000 Owned Hangar Hamilton, ON 51,000 Owned Hangar Calgary, AB 45,000 Leased Hangar Edmonton, AB 37,000 Leased Hangar Toronto, ON 190,000 Leased Hangar Vancouver, BC 75,000 Leased Training/Business Recovery Calgary, AB 13,000 Leased Air Supply(i) Vancouver, BC 7,453 Leased Air Supply(i) Edmonton, AB 5,846 Leased Air Supply(i) Calgary, AB 12,927 Leased Air Supply(i) Winnipeg, MB 4,510 Leased Air Supply(i) Toronto, ON 8,150 Leased

(i) Air supply consists of leased space required to store and deliver products sold on the aircraft. We operate and perform aircraft maintenance activities in hangar facilities in Calgary, Edmonton, Vancouver and Toronto. The collective capacity of all our hangar facilities sufficiently accommodates all of our storage and maintenance needs for the current fleet. Our future needs for additional hangars will be based on our fleet growth and the amount of activity in any given city. Our future plans include the construction of an aircraft hangar in Calgary that will accommodate additional aircraft as well as additional office space for our WestJet Encore operations.

We also maintain check-in, maintenance and minimal administrative office space at each airport in our network. These spaces are leased from the local airport authorities. We continue to have focused discussions with airport authorities who are taking on significant airport development projects to ensure our current and future terminal space requirements are addressed. We expect that our needs will be accommodated by the airport authorities to the best of their ability.

Our head office building, referred to as the Fred Ring Building (Campus), was constructed to Leadership in Energy and Environmental Design (LEED) standards and received gold LEED certification in 2011. Among the efficiencies in place at the Campus are:

• highly efficient water fixtures expected to use 42 per cent less water than traditional water fixtures;

• significant natural light from numerous windows and centre atrium increasing the level of ambient natural light, which automatically reduces interior lighting wattage to save energy;

• the heating, ventilation and air-conditioning system uses a hybrid geothermal system with piping reaching approximately 100 metres below the ground to use heating and cooling energy stored in the earth; and

• rainwater captured by the building’s 277,000 litre water tank is used for irrigating the Campus landscaping, which includes native plants.

Overall, LEED certified facilities are expected to be 25 to 35 per cent more efficient and save approximately 900 tonnes of greenhouse gases on an annual basis as compared to a facility designed to traditional building code standards.

Compensation

Our compensation philosophy is designed to align corporate and personal success. In order to attract and retain the right people, we have created a compensation program whereby a portion of our expenses are variable and tied to our financial and operational results. Our compensation strategy encourages employees to become owners in our Company, which creates a personal, vested interest in our financial and operational results.

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WestJet 2014 Annual Information Form

In addition to a base salary, compensation is enhanced through a profit sharing incentive, an Owners Performance Award (OPA) plan and an Employee Share Purchase Plan (ESPP). These programs are the foundation of our compensation strategy. Profit sharing distributes a percentage of our earnings to employees – the higher our earnings, the higher the profit sharing distributions. The OPA plan distributes a percentage of our earnings to WestJetters based on annual targets in four WestJet key operating metrics: safety, safely performing on time, guest experience and cost. ESPP is a share purchase matching program where eligible employees are permitted to contribute up to 10 per cent or 20 per cent of their gross salary, in which we match dollar for dollar the purchase of Voting Shares at their current fair market value.

We believe employees are more motivated to improve our overall performance and more engaged in the business when they own our shares and share in our profits and success. During periods of successful corporate performance, WestJetters benefit through profit sharing and potential stock appreciation; however, during periods of lower corporate performance, compensation plans automatically yield a lower overall compensation cost to our Company.

At December 31, 2014, we had approximately 8,698 full-time equivalent employees.

Social Policy

We provide a friendly, safe, equitable and rewarding work environment for WestJetters. We attract and retain diverse and outstanding professionals. We provide continuous learning opportunities, encourage performance excellence and develop leaders at all levels.

As a fundamental principle of employment, and in recognition of the Canadian Human Rights Act, we recognize that all persons are equal in dignity and human rights without regard to race, religion, colour, national or ethnic origin, sex, sexual orientation, marital or family status, disability, age, or convictions for which a pardon has been granted. We are committed to the legislative requirements and objectives of the Employment Equity Act and report annually to government authorities on the representation of those designated groups within our Company. WestJet continually explores new and innovative ways to enhance our diversity hiring and talent management initiatives.

We have continued to renew our partnership with Catalyst, the leading non-profit organization expanding opportunities for women and business, each year since our initial signing of the Catalyst Accord in 2012. The Catalyst Accord is a call to action for Canadian corporations to exercise best efforts to increase the overall proportion of FP500 board seats held by women to 25 per cent by 2017. We have always sought to build the strongest slate of Directors for our board and our partnership with Catalyst adds another dimension to our efforts without compromise.

Throughout 2014, and continuing into 2015, WestJet has implemented a strategy with increased focus on gender and language diversity in order to meet the demands of our growing group of WestJetters, guests, and our expanding flight network.

Safety

At the core of our safety focus is our safety and occupational health and safety management systems (SMS & OHSMS). Canada was a leader in introducing SMS through regulation to Canada’s air carriers in 2005. As the first country to mandate SMS, it has allowed both Canada and our Company to be at the leading edge of safety management.

Since then, we have worked in conjunction with Transport Canada to develop and grow our SMS to where it is today; an organized set of programs, principles, processes and procedures to manage operational risks at the forefront of safety management. Our SMS integrates human, technical and financial resources to achieve the highest level of safety through a focus on proactive risk management and quality management processes. However, it is our employees’ daily commitment to our core safety values that ensures our excellent safety performance.

Our SMS also provides internal oversight of our safety programs and provides our leadership teams with a mechanism for the continuous independent evaluation and improvement of our safety performance.

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WestJet 2014 Annual Information Form

In accordance with regulatory requirements, we have a comprehensive SMS in place that includes the following six components in support of our SMS:

(1) safety management plan;

(2) documentation;

(3) safety oversight;

(4) training;

(5) quality assurance; and

(6) emergency response (ER) plan. We have a Safety, Health and Environment Committee (SH&E), which is one of the committees of the Board of Directors. This committee monitors compliance with our safety, health and environmental principles.

We also have a department dedicated towards facilitating safety activities within WestJet. This department works closely with all operational departments and is responsible for identifying and demonstrating conformance to our airline’s safety, security and quality objectives that meet or exceed our regulatory commitments.

Airline operational safety and injury prevention programs are reviewed monthly by the Safety Management Committee (SMC), which is chaired by our Transport Canada Accountable Executive, the President and Chief Executive Officer (CEO), and comprises senior leaders from all departments. All critical safety functions are under the oversight of our Executive team, who establish the overall safety policy and track and approve safety and risk control initiatives.

As a regulated component of our SMS, our ER plan is at the forefront of caring for our guests and employees. This commitment to our guests is not only evident throughout our operations but is the founding principle of our emergency response preparedness. Our ER plan is all about doing the right thing to support our guests, WestJetters and their families.

Effective emergency preparedness requires a strong corporate commitment to ongoing ER training. Formal training for ER team members is provided in classroom and online training environments and is reinforced through the use of mock exercises designed to test and continually improve our readiness. The ER team leads and coordinates our company-wide preparedness, including the development and maintenance of more than 140 ER checklists and the design and delivery of ER training.

Safety awareness is one of our most effective tools in keeping guests and WestJetters safe. In addition to the specialized training for our safety team members, all WestJet employees are required to complete an annual online training course to broaden awareness and understanding about our SMS and OHSMS programs.

We have also invested in the latest aircraft equipment that increases safety, systems reliability and aircraft efficiency. The Boeing 737 NG aircraft, with its industry-leading technology, is well suited for our operations. In addition to the economic and environmental benefits of operating the Boeing 737 NG, there are many safety enhancements that it provides with its high level of technology.

One feature of the Boeing 737 NG aircraft that we have implemented to enhance safety is Required Navigational Performance (RNP) capability. RNP combines the capabilities of global positioning systems (GPS) and automated flight management to allow the aircraft to follow complex lateral and vertical approach paths to any runway. Using RNP capabilities, our Boeing 737 NG aircraft is better able to safely navigate through a tighter corridor in the sky during takeoff, land in more extreme weather conditions and fly safely around various terrains. Up to and including December 31, 2014, we have introduced over 80 RNP procedures into 20 airports across Canada and utilize Federal Aviation Administration RNP approaches at three airports in the U.S.

Safety and reliability were some of the key considerations in the selection of the Q400 aircraft for WestJet Encore. Complementing the high standard of safety features and technologies already present on the Q400 aircraft, we expect to further enhance next-generation approach capabilities, through the implementation of RNP capabilities, on all our Q400 aircraft in the near future.

We are an IOSA registered and compliant airline. IOSA is short for International Air Transport Association (IATA) Operational Safety Audit. IOSA is an internationally recognized and accepted evaluation system designed to assess the operational,

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WestJet 2014 Annual Information Form management and control systems of an airline and the worldwide safety standard for code-share agreements. Being one of more than 350 airlines participating in IOSA supports our current focus on developing new airline alliances.

We have also been recognized by the Alberta Workers Compensation Board as a COR certified company since 2006. COR stands for Certificate of Recognition and recognizes our best-practice in OHSMS. WestJet continues to place employee safety in the forefront by implementing best-practice guest transfer systems and policies and internally developed solutions to support safety across all operational groups. The Occupational Health & Safety policy and injury prevention committees focus on active system program policy and implementing departmental specific injury prevention strategies.

Our SMS and OHSMS ensures a single standard of safety across our organization. Both WestJet and WestJet Encore move in parallel with the evolution and continuous improvement of our safety culture, programs and standards. Both WestJet and WestJet Encore share the same Transport Canada Accountable Executive and Board of Directors who are responsible for ensuring a consistently safe and dependable experience across all our aircraft.

Through the integrated safety programs that comprise our SMS and OHSMS and the advanced safety systems on our aircraft, we strive to maintain the highest level of safety in our operations.

Flight Simulators

Our flight simulator training is a key component of our flight safety standards. We have three in-house Boeing 737 NG flight simulators that support over 1,250 pilots that fly our 600, 700 and 800 series Boeing 737 NG aircraft. Our in-house flight simulator training assists us in ensuring that the highest standards of safety are continuously maintained and also allows us to deliver this training in a cost effective manner. Currently, our Bombardier Q400 flight simulator training is supported by Canadian Aviation Electronics Ltd. and FlightSafety International Inc, however, as of the date of this AIF we have purchased a Q400 flight simulator, with anticipated delivery in early 2016, at which point we plan to start offering in-house training.

Maintenance

Our aircraft maintenance programs are approved by Transport Canada and place emphasis on both safety and aircraft reliability. Our programs meet all requirements of the Boeing and Bombardier maintenance planning documents along with any additional Transport Canada requirements. The programs designed to ensure the completion of all required maintenance checks within prescribed timeframes and provide a maintenance schedule that facilitates long-term fleet utilization planning.

We maintain the highest standards of safety and have in-house reliability programs which monitor aircraft, engine and component performance on both the Boeing 737 NG and Bombardier Q400. In addition, we obtain information directly from Boeing, Bombardier, CFM International, Pratt and Whitney and other original equipment manufacturers relating to any maintenance updates for aircraft, engines and other aircraft components that allow us to continuously enhance our maintenance programs.

We generally carry out our own line maintenance activities. When external agencies do carry out maintenance on our aircraft, we maintain quality oversight and ensure that all such agencies are approved by Transport Canada. Our heavy maintenance activities are carried out by Transport Canada approved external agencies at their facilities.

Maintenance costs on new aircraft are lower in part due to the fact that new aircraft are under warranty for several years. Of our 122 aircraft at December 31, 2014, 36 aircraft remain under warranty, with six coming off warranty in 2015.

Along with our maintenance programs we have an inventory control system intended to reduce the time that an aircraft may be out of service for maintenance and parts replacement. An inventory of rotable, expendable and consumable spares, including engines and auxiliary power units, at strategic locations across the network helps to ensure quick availability and replacement of parts. Inventory levels at each location are based on historic demand and future forecasts of replacement requirements.

Environment

As we pursue our vision to be one of the top five airlines in the world, we are committed to growing responsibly and ensuring that we are an environmentally sustainable airline. We recognize that as our operations grow, inevitably, so does our environmental footprint.

Burning aviation fuel to operate our aircraft and using non-renewable energy sources to heat and power our buildings and operational equipment releases greenhouse gases into the atmosphere. The most direct and tangible control that we can

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WestJet 2014 Annual Information Form implement to mitigate our carbon footprint is to operate our fleet and ground infrastructure as efficiently and safely as possible. Accordingly, our commitment to mitigating our greenhouse gas emissions is focused on three core principles:

(1) we invest in fuel-efficient aircraft;

(2) we invest in technology, infrastructure and procedures that enable us to safely maximize operating efficiency in the air and on the ground; and

(3) we work in good faith with government agencies and regulators to develop rules and policies that further drive our operating efficiency and our ability to grow sustainably.

We are committed to continuing to work with the Canadian federal government in support of the development of aviation emissions policies on a global scale. We recognize and advocate the International Civil Aviation Organization (ICAO) as the appropriate body to set a framework for a global sector approach on reducing aviation emissions. We also support IATA’s ambitious goals of a cumulative global average improvement in fuel efficiency of 1.5 per cent per year through to 2020, carbon-neutral growth from 2020 and a reduction in CO2 emissions of 50 per cent by 2050 as compared to 2005 levels.

Although we operate a fuel-efficient fleet, achieving carbon-neutral growth from 2020 and reducing CO2 emissions by 50 per cent will be a challenge that will require the efforts of not only our airline but our supplier partners such as aircraft manufacturers, airports and government.

Our significant investments in fleet and technology have greatly improved our aircraft fuel efficiency and ability to operate our business more cost effectively. The Boeing 737 NG aircraft has significantly improved our fuel efficiency over our original Boeing 737-200 series aircraft. With the future addition of our Boeing 737 MAX aircraft to our fleet, we expect further fuel efficiencies and a further relative reduction in carbon emissions.

We were an early leader and strong advocate of blended winglet technology. Winglets are wing-tip extensions designed to increase the aircraft range, payload and takeoff performance of our aircraft. All of our Boeing 737 NG 700 and 800 series aircraft are configured with winglets which we estimate have reduced fuel consumption on these aircraft by up to 2.7 per cent per flight. Further improved winglet designs have recently been introduced to the market. Throughout 2014, WestJet started installing Split Scimitar winglets on some of our Boeing 737 NG 800 series and plan to install additional sets throughout 2015. The Split Scimitar winglet introduces a new winglet design that is anticipated to further reduce drag and fuel consumption. Finally, the new Boeing 737 MAX aircraft will have the Advanced Technology winglet, which is specific to the MAX aircraft.

In May 2007, Boeing upgraded the standard CFM engine on the Boeing 737 NG with an improved CFM tech-insertion engine. The advanced technology and improvements in materials, coatings and geometry result in an engine that runs cooler and remains on the wing longer between scheduled maintenance. In addition, these engines have been shown to provide up to one per cent better fuel consumption over the engine’s lifecycle. Our future Boeing 737 MAX aircraft will have the more efficient LEAP-1B engine.

Boeing has incorporated engine and aerodynamic improvements to the standard Boeing 737 NG configuration that we estimate reduce fuel consumption by approximately two per cent. These improvements have been phased into the Boeing 737 NG production, including ours, starting in early 2011.

In an effort to further reduce fuel consumption from operations, we have a fuel-efficiency working group comprised of stakeholders from across our Company with a mandate to implement cost effective initiatives that will safely reduce fuel consumption. The working group focuses on evaluating and establishing policies and procedures to decrease weight on the aircraft through the use of detailed flight planning, improvements to aircraft efficiency and minimizing actual distance flown.

As noted under the heading Fuel Management on page 18, we have installed a fuel management and reporting software system that consolidates fuel efficiency and performance data into useable reports. This state-of-the-art system enhances our ability to identify new efficiencies by optimizing the amount of fuel carried by our aircraft.

Since 2004, we have been using RNP technology. Our primary driver for adopting RNP was its strong safety case. However, the ability to improve our aircraft access and approach routes to various airports to gain operational efficiencies as well as the environmental benefits truly maximized our investment. RNP uses GPS satellites and on-board avionic systems to allow aircraft to fly more direct and efficient precision approaches to and from airports.

We are one of the most experienced air carriers in the world in RNP operations. Our commitment to a fully integrated RNP program means that all of our Next Generation 737 aircraft are RNP certified and all of our pilots are trained to fly RNP

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WestJet 2014 Annual Information Form approach and departure procedures. We were also the first foreign air carrier approved to conduct RNP approaches in the U.S. to fully leverage our RNP strategy across our network.

RNP provides us with the ability to fly low-power descents from cruising altitude all the way to the runway (versus conventional descents that include numerous intermediate step-down altitudes and lengthy level segments). We fly more than 40,000 RNP procedures at over 20 airports across Canada and three airports in the U.S. that result in important fuel consumption savings. We continually evaluate existing and new locations to implement RNP when possible.

Since November 2011, we have partnered with Carbonzero to provide guests with a voluntary carbon offset program that invests in certified projects in locations where we fly. Our guests have the option to calculate and purchase offsets to help mitigate the emissions resulting from their flight.

To date, environmental laws and regulations have not had a material adverse effect on our business or our financial condition. However, changes in government laws and regulations are ongoing and may make environmental compliance increasingly expensive. We are not able to predict future costs which may be incurred in order to comply with future environmental regulations (for further information see Risk and Uncertainties - Government intervention, regulations, rulings or decisions rendered that impose additional requirements and restrictions on operations could increase operating costs or disrupt our operations found on page 54 of this AIF).

INDUSTRY OVERVIEW General

The North American airline industry is highly sensitive to general economic conditions and international events. In addition, our revenue and net earnings are highly susceptible to weather conditions, changes in jet fuel prices, fluctuations in foreign exchange rates, pricing actions taken by competitors, guest demand and industry capacity. We believe sustained profitability for an airline is a function of a healthy economy, a solid business plan, the ability to maintain a low-cost structure, disciplined capacity in the market, high standards in guest service, skill of management, strong corporate culture and adequacy of financing and operating cash flow.

We continued to deliver on our business plan as the fourth quarter of 2014 represented our 39th consecutive quarter of profitability. In the Monetary Policy Report issued on January 21, 2015, the Bank of Canada forecasted real gross domestic product growth for Canada of 2.1 per cent in 2015 and 2.4 per cent in 2016 compared to 2.4 per cent realized in 2014. Should these forecasts prove to be true, such should support our continued profitable growth. Risks and Barriers to Entry

Airlines inherently have high fixed costs relative to revenue earned. We believe profitability within the Canadian airline industry is impeded by restrictive taxes, higher airport infrastructure costs, fees on travellers, significant seasonality in guest demand and geographic dispersion relative to other international airlines (please refer to the Risks and Uncertainties section of this AIF found on page 47).

The Canadian airline industry is characterized by few barriers to entry. The Canadian government has gradually removed economic regulation of commercial aviation within Canada, while the industry has moved towards a more open and competitive environment for domestic, transborder and international airline services, for both scheduled and charter operations. Currently, minimal regulatory barriers exist to prevent a licensed Canadian carrier from serving any Canadian or transborder city-pair market. Additionally, competitors face no government-imposed restrictions regarding prices, aircraft types (except with respect to safety or other issues such as noise restrictions) or frequency of routes. Despite the reduced regulatory barriers to entry, the high-risk nature of the airline industry tends to serve as the largest barrier to entry.

Competition

Within the Canadian domestic market, we primarily compete with scheduled airlines such as Air Canada, Air Canada Express, Air Canada Rouge and regional carriers such as Porter Airlines. The competition in the transborder market comes primarily from Air Canada, Air Canada Express and Air Canada Rouge, as well as larger U.S. airlines such as American Airlines, Delta Airlines, United Airlines and Alaska Airlines. Competition in the international markets comes primarily from Air Canada, Air Canada Rouge, national flag carriers from their respective home nations and Canadian-based charter airlines such as Air Transat. In the vacations space, Air Transat, Sunwing and Air Canada Vacations are major competitors, along with many smaller entities. Canadian markets close to the U.S. border have also seen travellers drive to nearby U.S. border city airports

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WestJet 2014 Annual Information Form in an attempt to avoid higher Canadian air travel taxes. The leakage from these Canadian border cities constitutes another source of competition for us.

We also compete with surface transportation alternatives in short-haul markets, and to a lesser degree, in medium-haul and long-haul markets. Surface transportation primarily consists of automobile, bus and rail transportation. When travellers choose their preferred mode of transportation, price is often a factor that influences their decision and is a competitive factor when contending with transportation alternatives. In addition, improvement in video and teleconferencing alternatives provides the business traveller with more options beyond physical travel, thereby potentially reducing the overall number of travellers.

We continue to monitor the possibilities of new entrants into the Canadian market, including one or more ultra low cost carriers and possible entry by foreign carriers into the domestic Canadian market, but believe we are well positioned to compete should they begin operations primarily due to our strong corporate culture and reputation within the communities we serve as the preferred low-cost airline.

Trends

The North American airline industry realized stronger financial performance in 2014 compared to 2013. Both business and consumer confidence were strong and helped to offset relatively high jet fuel prices in the first half of 2014. Those airlines that performed well were able to manage key input costs such as fuel, cut non-fuel unit costs, optimize aircraft utilization and maximize ancillary revenue opportunities. Those airlines that performed particularly well were also able to concurrently increase load factors and yield. As we move forward in 2015, the Canadian economic outlook appears to have weakened; however, we firmly believe that our fundamental low-cost structure and strong balance sheet position us well to weather fuel price and foreign exchange uncertainty and realize another year of profitable growth.

REGULATORY ENVIRONMENT

In addition to legislation and regulations applicable to most corporations operating in Canada, the airline industry is also subject to additional legislation and regulations.

Domestic

(i) The Aeronautics Act and the Canada Transportation Act In Canada, civil air transportation, including the establishment of aviation policy, the establishment of maintenance and operations standards, safety, and the provision of ground and airways infrastructure, rests wholly within federal government jurisdiction and is the responsibility of the Minister of Transport (the Minister). The Aeronautics Act (Canada), including the applicable regulations, standards, policies and measures made thereunder, is the principle legislation through which the Government of Canada regulates the aviation industry. It gives the Minister the authority to certify air carriers as being adequately equipped and capable of conducting a safe operation. Pursuant to the Aeronautics Act (Canada), we obtained our air operator certificate, which allows us to operate a commercial air service.

The Canada Transportation Act (the CTA) is the legislation pursuant to which the Canada Transportation Agency regulates certain aspects of transportation industries in Canada, including the air transport industry. The Canada Transportation Agency provides oversight and enforcement of the CTA and applicable regulations, orders and measures.

The CTA requires that holders of licenses to operate an air service in Canada be Canadian, controlled in fact by Canadians and at least 75 per cent of their voting interests be owned and controlled by Canadians (as defined in the CTA). In 2005, we amended our Articles to create a class of Variable Voting Shares to be held by persons who are not Canadian, limiting their aggregate voting interests, as a class, to 25 per cent of all voting interests at any time. Refer to the heading Capital Structure for further information on how our voting structure meets the requirements of the CTA.

Commencing January 1988, the deregulation of the airline industry in Canada allowed carriers to establish airfares and conditions of carriage without government regulation, making it easier for new airlines to start up and for existing ones to expand. The principle of free market entry under the CTA is presently limited only by the requirements that the carrier be Canadian, as defined in the CTA, that it hold an operating certificate, that it operate Canadian certified aircraft and that it is suitably insured.

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WestJet 2014 Annual Information Form

In February 2009, legislation was introduced in Parliament to amend the CTA and allow for the creation of regulations stipulating that different classes of non-Canadians would be permitted to own up to 49 per cent of the voting interests of a Canadian air carrier. We are not in a position to determine if or when any such regulations will be passed and brought into force.

In 2014 the federal government announced a statutory review of the CTA. The review is being carried out by a panel operating independently from the federal government. The panel is examining all modes of transportation that fall within federal jurisdiction, including commercial aviation, and is taking submissions from the general public and industry stakeholders. The mandate of the panel is very broad and as such, all aspects of federal aviation policy are potentially open to review. The panel is to report its recommendations to the federal government by December 2015. It will then be up to the federal government to determine what action, if any, it will take on the recommendations.

(ii) Competition Act Competition in the Canadian airline industry is regulated under the Competition Act (Canada) (the Competition Act). This federal statute is designed to maintain and encourage competition in Canada in order to, among other objectives, promote the efficiency and adaptability of the Canadian economy and provide consumers with competitive prices and product choices. Prior to March 12, 2009, the Competition Act contained both general, criminal and civil provisions applicable in all industry sectors as well as several airline specific provisions. These airline specific provisions were enacted to address concerns arising out of the dominance of Air Canada in the airline industry following Air Canada's acquisition of Canadian Airlines in January 2000. WestJet has adopted a Competition Law Compliance Policy.

On March 12, 2009, the Budget Implementation Act (Bill C-10) (Canada) (the Budget Implementation Act) received Royal Assent. The Budget Implementation Act contained significant amendments to the Competition Act, including the repeal of all airline specific provisions. In addition to the repeal of all airline specific provisions, these amendments, among other things:

• increased penalties for deceptive marketing practices;

• introduced administrative monetary penalties for abuse of dominance under section 79 to a maximum of $10 million for the first offense and $15 million for subsequent offences;

• repealed the provisions dealing with price discrimination and predatory pricing and replaced the criminal resale price maintenance provision with a new civil provision to address price maintenance practices that have an adverse effect on competition;

• strengthened the bid-rigging provisions;

• created a more effective mechanism for the criminal prosecution of the most egregious forms of cartel (conspiracy) agreements (for example, price-fixing, market allocation, output restriction) between or among competitors together with increased penalties to better deter these harmful activities; and

• created new civil provisions dealing with agreements or arrangements between and among competitors if the agreements or arrangements result in a substantial lessening or prevention of competition.

(iii) Canadian Air Transport Security The Canadian Air Transport Security Act (Canada) was brought into force in April 2002, and established the Canadian Air Transport Security Authority (CATSA). CATSA is mandated to take actions, either directly or through screening contractors, for the screening of persons accessing aircraft or restricted airport areas, including their carry-on possessions and baggage. CATSA is also responsible for other air transport security functions as the Minister might assign to it from time to time. In connection with providing security functions, CATSA is entitled to enter into agreements with the RCMP for the provision of services, including services on aircraft. Airport authorities are required to maintain, free of charge, such space as CATSA may require in the airport facility to conduct its security operations.

The Aeronautics Act (Canada) establishes the framework under which aviation security regulations and security measures are developed and adopted. Under the Canadian Aviation Security Regulations, the Minister is entitled to make rules in the form of Orders and Measures prescribing security measures applicable to CATSA and air carriers, among others. Extensive security and screening measures for airlines and airports have been enacted and updated under the Security Screening Order, Air Carrier Security Measures and Aerodrome Security Measures. These constitute the minimum security standards to be implemented by CATSA, air carriers and airport operators.

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WestJet 2014 Annual Information Form

(iv) The Security Charge The Air Traveller's Security Charge Act (Canada) (the Security Charge Act) was brought into force in March 2002. The Security Charge Act stipulates that issuers of tickets are obligated to collect, as agent and trustee for the Government of Canada, a security charge (Security Charge). When first enacted, the Security Charge was $12.00 ($11.22 excluding GST) for each chargeable enplanement, which included connecting flights between the point of origin and the point of destination, to a maximum of $24.00 ($22.43 excluding GST) for round trips. We are required to file monthly returns, with respect to each preceding month, detailing prescribed information with respect to Security Charge collections and to pay that amount to the Government of Canada.

At December 31, 2014, the Security Charge for air travel within Canada was $7.12 (December 31, 2013 - $7.12) one-way, plus applicable sales tax. The Security Charge for transborder air travel was $12.10 (December 31, 2013 - $12.10) one-way, plus applicable sales tax, and for other international air travel the rate was $25.91 (December 31, 2013 - $25.91) one-way, plus applicable sales tax.

(v) Airport and Air Navigation Charges Since the privatization of Canada’s major airports in 1992 under the Airport Transfer (Miscellaneous Matters) Act (Canada), and air navigation services in 1996 under the Civil Air Navigation Services Commercialization Act (Canada), Canada’s major airports and NAV Canada, Canada’s air navigation services provider, have been authorized to charge and collect fees from airlines for various airport and air navigation improvements and services.

(vi) Consumer Legislation From time to time legislation is introduced in Parliament dealing with consumer issues impacting the travelling public. Such legislation can seek to impose financial penalties on carriers for such things as flight delays, tarmac delays, overbooking, advertising practices, etc. Currently in Canada consumer rights are being upheld through the application of the carrier’s legally binding terms and conditions of carriage, or tariffs. The U.S. Department of Transportation has imposed certain guest protection provisions with respect to tarmac delays and related consumer protection provisions applicable to non-U.S. carriers. On January 2, 2013, the Air Transportation Regulations – Air Services Price Advertising requirements came into effect, which require airlines to disclose all fees, taxes and surcharges associated with flight ticket prices as one all-in price.

(vii) Aircraft Financing Legislation In 2005, the Government of Canada enacted the International Interests in Mobile Equipment (Aircraft Equipment Act (Canada)) (the CTC Act), in order to ratify and implement the Cape Town Convention and Aircraft Protocol (together, the CTC) in respect of financing aircraft and aircraft engines. Some, but not all, provisions of the CTC Act were proclaimed in 2005. In 2006, the Government of Alberta enacted the International Interests in Mobile Equipment Act (Alberta) (the Alberta CTC Act), to deal with implementation of the provincial law aspects of the CTC.

In December of 2012, the Jobs and Growth Act (Canada), among other things, amended the CTC Act to provide for ratification and implementation of the CTC in Canada on April 1, 2013. The Alberta CTC Act also took effect on April 1, 2013.

We anticipate the CTC will, among other things, simplify enforcement against financed aircraft, including providing provisions similar to Section 1110 in the U.S. Bankruptcy Code, and provide for registration of international interests (security interests) in aircraft and engines in the International Registry, supervised by ICAO in Ireland, and will increase the efficiency and reduce the overall cost of our aircraft financing transactions.

(viii) Wet Lease Policy During 2013, a Wet-Lease Policy was issued by the Minister. This Policy guides the Canadian Transportation Agency’s consideration of wet-lease applications where Canadian air carriers propose to enter into wet-lease arrangements of more than 30 days duration with foreign air carriers to provide international passenger services.

Wet-leasing is a practice in the aviation industry whereby one air carrier (the lessee) obtains aircraft and flight crew from another carrier (the lessor) to operate services offered pursuant to the former’s (the lessee’s) licence. The lessor is in operational control of the flights while the lessee is in commercial control of the flights. This practice is subject to Canadian Transportation Agency oversight. This policy does the following:

• maintain Canadian safety and security standards;

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WestJet 2014 Annual Information Form

• impose a cap of 20 per cent of a Canadian carrier’s fleet that can be wet-leased from a foreign company for periods of more than 30 days;

• require reciprocity for Canadian airlines seeking opportunities in other jurisdictions;

• allow some flexibility for Canadian airlines to meet Canadians’ seasonal demand for air travel; and

• promote a stable and predictable operating environment for the Canadian aviation industry by providing clear limits on the use of wet-leasing.

International and Transborder

International scheduled air services are regulated by the national governments involved. International route rights are obtained through bilateral negotiations between Canada and foreign countries. Bilateral agreements provide for the rights that may be exercised over an agreed routing and the conditions under which the airlines may operate, including, among others, the number of airlines that may operate, the capacity and flight frequencies that may be provided, and the controls over tariffs to be charged. Many bilateral agreements to which Canada is a party provide for the designation of more than one Canadian airline, while some provide for the designation of only one Canadian airline. The Minister has the authority to designate which carriers have the right to serve scheduled international routes, except routes to the U.S., which are governed by the Air Transportation Agreement between Canada and the U.S., originally signed in February 1995 (the Open Skies Agreement).

Under the Open Skies Agreement, the Canadian government may designate as many carriers as it wishes to service U.S. destinations. Prior to commencing service, a designated airline must make an application to U.S. government authorities. The appropriate authorizations and permissions are required to be granted by such authorities with minimal procedural delay, provided Canadian ownership requirements, qualifications under laws normally applicable to international air transportation, and safety and aviation security requirements under the Open Skies Agreement are met by the airline. No restrictions as to capacity, frequency or aircraft size are imposed under the Open Skies Agreement. Designated airlines may, at their option, combine two or more points in the U.S. in a through service. However, the ability of foreign domiciled airlines to carry new guests between domestic points in another country is prohibited in Canada and the U.S.

On November 11, 2005, as a result of negotiations between Canada and the U.S., the Canadian government announced amendments to the Open Skies Agreement. While the 1995 Open Skies Agreement created an open system for air services between the two countries, certain restrictions remained in place. The most significant amendment from the November 2005 negotiations involves the introduction of Fifth Freedom Rights, which refer to the right of an air carrier to carry guest traffic from one country to and from any third country on any flight originating, traversing or ending in its home country. The ability for a Canadian carrier to take advantage of this right requires equivalent rights from the third country. The amendments agreed to in the November 2005 negotiations came into force on March 12, 2007.

In addition to the Open Skies Agreement, we continue to engage with the federal government as it seeks to expand existing or establish new bilateral air agreements with other nations.

The Agreement on Air Transport between Canada and the European Union and its Member States was signed on December 18, 2009, with administrative application immediately enabled. On January 14, 2010, the Canada Transportation Agency granted designation for all Canadian air carriers to offer scheduled air services to the European Union from Canada. While licensing requirements still have to be met for both contracting parties, this grants us access for direct owned aircraft or code- share services from Canada to all 27 member states of the European Union.

Code-Share Agreements

As we enter into code-share agreements with foreign carriers, a foreign carrier’s domestic regulator often requires that safety and operational audits be carried out on the code-share partner before code-share flights can formally commence. It may be necessary, on a case-by-case basis, for us to undertake such audits by foreign carriers in order to demonstrate regulatory compliance for code-share implementation. The audit requirements can vary from country to country.

CAPITAL STRUCTURE

Constraints

Under Canadian law, non-Canadian ownership and control of airline voting shares is limited to 25 per cent of the entity’s

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WestJet 2014 Annual Information Form issued and outstanding shares. To reduce inconveniences in buying and selling WestJet Common Voting Shares and to ensure our continuous compliance with the requirement to qualify as Canadian, we introduced a Variable Voting Share structure into our capital structure, which was approved by shareholders at a special meeting held on August 30, 2005. Common Voting Shares may only be beneficially owned and controlled directly or indirectly by Canadians. Any Common Voting Share beneficially owned or controlled directly or indirectly by a person who is not a Canadian shall be automatically and without any further act of us or the holder, converted to a Variable Voting Share. Variable Voting Shares may only be beneficially owned or controlled directly or indirectly by non-Canadians.

The holders of Variable Voting Shares and Common Voting Shares vote together at any meeting of shareholders and no separate meeting is held for these classes of shares, unless it is to address a matter specific to a class.

We have adopted certain by-laws and procedures to address monitoring and enforcement of ownership requirements established by the CTA and our Articles. In particular, our shareholders approved By-Law No. 2005-1, which sets out general powers of the Board of Directors to enact procedures regarding the issuance, transfer and holding of Voting Shares, power to require declarations regarding ownership status of persons holding Voting Shares and various enforcement provisions regarding Canadian ownership. In addition, we have adopted certain monitoring procedures to ensure compliance with our Articles and by-laws and the maintenance of ownership levels required under the CTA. These procedures establish that our transfer agent will make periodic inquiries of intermediaries holding Voting Shares for non-registered holders to ensure compliance with share holding ownership requirements.

When used in describing our share capital, Canadian has the meaning presently defined in subsection 55(1) of the CTA, being a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act (Canada), a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled, in fact, by Canadians and of which at least 75 per cent, or such lesser percentage as the Governor in Council may by regulation specify, of the voting interests are owned and controlled by Canadians.

Proposed Change to Restriction on Foreign Ownership

On March 12, 2009, Bill C-10, the Budget Implementation Act was assented to by the Canadian Parliament. This Act contains amendments to the CTA, however, at the date hereof these amendments have not been proclaimed into force. When in force, these amendments will replace the current definition of Canadian within the CTA that prescribes a 25 per cent limit on the voting interests owned and controlled by non-Canadians and will instead provide the Governor in Council with the authority to implement new regulations to the CTA specifying the limit on the voting interests owned and controlled by non-Canadians, subject to a limit of 49 per cent on the voting interests owned and controlled by all non-Canadians, or a limit of 49 per cent on the voting interests owned and controlled by any specified class of non-Canadians prescribed in such regulations. These amendments to the CTA will come into force on a date to be fixed by order of the Governor in Council made on the recommendation of the Minister. On October 8, 2009, the Canadian Transportation Agency commenced a consultation process with stakeholders, including us, regarding the implementation of these new regulations, which will be implemented in conjunction with the coming into force of the amendments to the CTA described above. We are unable to predict the form such regulations will take, the timing for their enactment, or the potential effect on us or our capital structure.

Credit Ratings

On February 28, 2014, Standard & Poor’s Rating Services (S&P) assigned our Company an issuer “BBB-” long-term corporate credit rating and on July 16, 2014 S&P assigned a “BBB-” rating to our Senior Unsecured Notes.

As disclosed by S&P, the BBB- issue rating is a forward-looking opinion about our creditworthiness with respect to a specific financial obligation based on our capacity and willingness to meet our financial commitments as they before due, and may assess terms, such as collateral security and subordination, which could affect ultimate payment in the event of default. It also takes into consideration the creditworthiness of guarantors, insurers or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. An obligation rated BBB- by S&P exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. S&P has 10 categories of long-term issue credit ratings – the highest rating is AAA, which indicates that the obligor's capacity to meet its financial commitment on the obligation is extremely strong, and the lowest rating is D, which indicates that the obligation is in default or breach of an imputed promise. The BBB rating is the fourth strongest rating of the 10 ratings available in the long-term issue category. In

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WestJet 2014 Annual Information Form addition to these rating categories, S&P may assign a “+” or “-” rating to the categories “AA” to “CCC” to identify the relative strength of a rating within a particular category.

Credit ratings are intended to provide investors with an external measure of our overall creditworthiness. Credit ratings are not recommendations to buy, sell or hold our securities and do not address the market price or suitability of a specific security for a particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by S&P in the future if, in its judgment, circumstances so warrant.

We have paid service fees to S&P in connection with our assigned long-term issuer credit rating and with respect to the long- term issue rating of our Senior Unsecured Notes and expect to continue to pay service fees for the foreseeable future, in accordance with the S&P fee schedule, for its ongoing credit rating services. Except for these credit rating service fees just described, we do not currently make any other payments to S&P or any other credit rating agency for any other services.

General

Our capital structure consists of an unlimited number of Common Voting Shares; an unlimited number of Variable Voting Shares; an unlimited number of Non-Voting Shares, issuable in series (Non-Voting Shares); an unlimited number of First Preferred Shares, issuable in series (First Preferred Shares); an unlimited number of Second Preferred Shares, issuable in series (Second Preferred Shares); and an unlimited number of Third Preferred Shares, issuable in series (Third Preferred Shares) (the First Preferred Shares, Second Preferred Shares and Third Preferred Shares are collectively referred to as the Preferred Shares).

At March 18, 2015, 126,228,867 Voting Shares are issued and outstanding, consisting of 107,560,264 Common Voting Shares as fully paid and non-assessable and 18,668,603 Variable Voting Shares as fully paid and non-assessable. No Non-Voting Shares or Preferred Shares have been issued. There are no current plans to issue Non-Voting Shares or any class or series of Preferred Shares. On May 5, 2014, the Corporation filed a notice with the Toronto Stock Exchange (TSX) to make a normal course issuer bid to purchase outstanding shares on the open market. As approved by the TSX, the Corporation is authorized to purchase up to 2,000,000 common voting shares and variable voting shares (representing approximately 1.6 per cent of the Corporation’s issued and outstanding shares at the time of the bid) during the period May 8, 2014 to May 7, 2015, or until such time as the bid is completed or terminated at the Corporation’s option. Any shares purchased under this bid are purchased on the open market through the facilities of the TSX at the prevailing market price at the time of the transaction. Common Voting Shares and Variable Voting Shares acquired under this bid are cancelled.

Our shareholders may obtain a copy of the notice filed with the TSX in relation to the bid, free of charge, by contacting our Corporate Secretary at 22 Aerial Place N.E., Calgary, Alberta T2E 3J1; telephone: (403) 444-2600; or by faxing a written request to (403) 444-2604.

Common Voting Shares

Exercise of Voting Rights The holders of Common Voting Shares are entitled to receive notice of and to attend and vote at all meetings of our shareholders, except those at which holders of a specific class are entitled to vote separately as a class under the ABCA. Each Common Voting Share confers the right to one vote at all shareholder meetings.

Dividends

Subject to the rights, privileges, restrictions and conditions attached to any class of our shares ranking prior to the Common Voting Shares, holders of Common Voting Shares are entitled to receive any dividends declared by our Board of Directors at the times and for the amounts that may, from time to time, be determined. The Common Voting Shares, Variable Voting Shares and Non-Voting Shares rank equally as to dividends on a share-for-share basis. All dividends declared shall be declared in equal or equivalent amounts per share on all Common Voting Shares, Variable Voting Shares and Non-Voting Shares then outstanding, without preference or distinction. Rights in the Case of Liquidation, Winding-Up or Dissolution

Subject to the rights, privileges, restrictions and conditions attached to any class of shares ranking prior to the Common Voting Shares, in the case of liquidation, dissolution or winding-up of our Company, the holders of Common Voting Shares,

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WestJet 2014 Annual Information Form

Variable Voting Shares and Non-Voting Shares shall be entitled to receive our remaining property and are entitled to share equally, share for share, in all distributions of such assets.

Conversion

Subject to the foreign ownership restrictions in the CTA, each issued and outstanding Common Voting Share shall be converted into one Variable Voting Share, automatically and without any further act by us or the holder, if such Common Voting Share is or becomes owned or controlled by a person who is not a Canadian.

In the event that an offer is made to purchase Variable Voting Shares and the offer is one which is required, pursuant to applicable securities legislation or the rules of a stock exchange on which the Variable Voting Shares are then listed, to be made to all or substantially all the holders of Variable Voting Shares, each Common Voting Share shall become convertible at the option of the holder into one Variable Voting Share at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation for the offeror to take up and pay for such shares as are to be acquired pursuant to the offer. The conversion right may only be exercised in respect of Common Voting Shares for the purpose of depositing the resulting Variable Voting Shares pursuant to the offer and for no other reason, including notably with respect to voting rights attached thereto, which are deemed to remain subject to the provisions concerning the voting rights for Common Voting Shares notwithstanding their conversion. Our transfer agent shall deposit the resulting Variable Voting Shares on behalf of the holder.

Should the Variable Voting Shares issued upon conversion and tendered in response to the offer be withdrawn by the holder or not taken up by the offeror, or should the offer be abandoned or withdrawn, the Variable Voting Shares resulting from the conversion shall be automatically reconverted, without further intervention on our part or on the part of the holder, to Common Voting Shares.

The Common Voting Shares may not be converted into Variable Voting Shares, or vice-versa, other than in accordance with the conversion procedure set out in our Articles.

Constraints on Share Ownership

The Common Voting Shares may only be beneficially owned and controlled by Canadians.

Variable Voting Shares

Exercise of Voting Rights

Each Variable Voting Share entitles the holder to receive notice of, to attend and vote at all meetings of our shareholders, except those at which the holders of a specific class are entitled to vote separately as a class under the ABCA.

Variable Voting Shares carry one vote per Variable Voting Share held, except where (i) the number of outstanding Variable Voting Shares exceeds 25 per cent of the total number of all issued and outstanding Common Voting Shares and Variable Voting Shares, including securities convertible into such Common Voting Shares and Variable Voting Shares and currently exercisable options and rights to acquire such Common Voting Shares and Variable Voting Shares or such convertible securities (or any higher percentage that the Governor in Council may specify pursuant to the CTA), or (ii) the total number of votes cast by or on behalf of the holders of Variable Voting Shares at any meeting exceeds 25 per cent (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the total number of votes that may be cast at such meeting.

If either of the above-noted thresholds is surpassed at any time, the number of votes attached to each Variable Voting Share will decrease automatically without further act or formality to equal the maximum permitted vote per Variable Voting Share. Under the circumstances described in (i) in the immediately preceding paragraph, the Variable Voting Shares as a class cannot carry more than 25 per cent (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the aggregate of the voting rights attached to all issued and outstanding Common Voting Shares and Variable Voting Shares, including securities convertible into such Common Voting Shares and Variable Voting Shares and currently exercisable options and rights to acquire such Common Voting Shares and Variable Voting Shares or such convertible securities. Under the circumstances described in (ii) in the immediately preceding paragraph, the Variable Voting Shares as a class cannot, for a given shareholders' meeting, carry more than 25 per cent (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the total number of votes that can be exercised at the meeting.

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WestJet 2014 Annual Information Form

If the total number of votes cast by or on behalf of the holders of Variable Voting Shares on any matter on which a vote is to be taken at a shareholders' meeting exceeds 25 per cent (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the aggregate votes that may be cast on such matter, the number of votes attached to each Variable Voting Share will decrease automatically and proportionately such that the total votes attached to the Variable Voting Shares cast on the matter shall not exceed 25 per cent of the aggregate votes.

The constraints described above do not apply to Variable Voting Shares held by a non-Canadian by way of security only, subject to compliance with certain requirements set forth in our Articles, or to Variable Voting Shares held by one or more underwriters solely for the purpose of distributing the Common Voting Shares or Variable Voting Shares to the public, or by any person acting in relation to the Common Voting Shares or Variable Voting Shares solely in its capacity as an intermediary in the payment of funds or the delivery of securities in connection with trades in securities and that provides centralized facilities for the clearing of trades in securities.

Dividends

Subject to the rights, privileges, restrictions and conditions attached to any other class of our shares ranking prior to the Variable Voting Shares, the holders of Variable Voting Shares are entitled to receive any dividends that are declared by our Board of Directors at the times and for the amounts that may, from time to time, be determined. The Variable Voting Shares rank equally with the Common Voting Shares and the Non-Voting Shares as to dividends on a share-for-share basis. All dividends must be declared in equal or equivalent amounts per share on all Variable Voting Shares, Common Voting Shares and Non-Voting Shares then outstanding, without preference or distinction.

Rights in the Case of Liquidation, Winding-Up or Dissolution Subject to the rights, privileges, restrictions and conditions attached to the other classes of our shares ranking prior to the Variable Voting Shares, in the case of liquidation, dissolution or winding-up, the holders of Variable Voting Shares, Common Voting Shares and Non-Voting Shares shall be entitled to receive our remaining property and shall be entitled to share equally, share-for-share, in all distributions of such assets.

Conversion

Each issued and outstanding Variable Voting Share shall be automatically converted into one Common Voting Share, without any further intervention on our part or the holder, if (i) the Variable Voting Share is or becomes beneficially owned and controlled by a Canadian; or if (ii) the provisions contained in the CTA relating to foreign ownership restrictions are repealed and not replaced with other similar provisions in applicable legislation.

In the event that an offer is made to purchase Common Voting Shares and the offer is one which is required, pursuant to applicable securities legislation or the rules of a stock exchange on which the Common Voting Shares are then listed, to be made to all or substantially all the holders of Common Voting Shares in a given province of Canada to which the requirement applies, each Variable Voting Share shall become convertible at the option of the holder into one Common Voting Share at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation for the offeror to take up and pay for such shares as are to be acquired pursuant to the offer. The conversion right may only be exercised in respect of Variable Voting Shares for the purpose of depositing the resulting Common Voting Shares pursuant to the offer, and for no other reason, including notably with respect to voting rights attached thereto, which are deemed to remain subject to the provisions concerning voting rights for Variable Voting Shares notwithstanding their conversion. Our transfer agent shall deposit the resulting Common Voting Shares on behalf of the holder.

Should the Common Voting Shares issued upon conversion and tendered in response to the offer be withdrawn by the holder or not taken up by the offeror, or should the offer be abandoned or withdrawn, the Common Voting Shares resulting from the conversion shall be automatically reconverted, without further intervention on our part or on the part of the holder, into Variable Voting Shares.

Variable Voting Shares may not be converted into Common Voting Shares, and vice-versa, other than in accordance with the conversion procedure set out in our Articles.

Constraints on Share Ownership Variable Voting Shares may only be beneficially owned or controlled by non-Canadians.

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WestJet 2014 Annual Information Form

Non-Voting Shares The Non-Voting Shares may be issued, from time to time in one or more series, each series consisting of such number of Non- Voting Shares as determined by our Board of Directors who may also fix the designations, rights, privileges, restrictions and conditions attaching to the shares of each series of Non-Voting Shares. There are no Non-Voting Shares issued and outstanding.

Dividends

The Non-Voting Shares, the Common Voting Shares and the Variable Voting Shares rank equally as to dividends on a share- for-share basis.

Rights in the Case of Liquidation, Winding-Up or Dissolution

Subject to the rights, privileges, restrictions and conditions attaching to any other class of our shares ranking prior to the Non- Voting Shares, in the case of liquidation, dissolution or winding-up of our Company or other distribution of our assets among our shareholders for the purpose of winding-up our affairs, the holders of Non-Voting Shares, Common Voting Shares and Variable Voting Shares shall be entitled to receive the remaining property of our Company and shall be entitled to share equally, share for share, in all distributions of such assets. Constraints on Voting Except as provided in our Articles or the ABCA, the holders of Non-Voting Shares are not entitled to vote. Conversion Except as described below, the Non-Voting Shares do not have any conversion rights attached thereto.

In the event that an offer is made to purchase Common Voting Shares or Variable Voting Shares, as the case may be, and the offer is one which is required, pursuant to applicable securities legislation or the rules of a stock exchange on which the Common Voting Shares or Variable Voting Shares, as the case may be, are then listed, to be made to all or substantially all the holders of Common Voting Shares or Variable Voting Shares, as the case may be, in a province of Canada to which the requirement applies, each Non-Voting Share shall become convertible at the option of the holder into one Common Voting Share or Variable Voting Share, as the case may be, at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation for the offeror to take up and pay for such shares as are to be acquired pursuant to the offer. The conversion right may only be exercised in respect of Non-Voting Shares for the purpose of depositing the resulting Common Voting Shares or Variable Voting Shares, as the case may be, pursuant to the offer, and for no other reason, including notably with respect to voting rights attached thereto, notwithstanding their conversion. Our transfer agent shall deposit the resulting Common Voting Shares or Variable Voting Shares, as the case may be, on behalf of the holder. If (i) Common Voting Shares or Variable Voting Shares, as the case may be, resulting from the conversion and deposited pursuant to the offer are withdrawn by the holder or are not taken up by the offeror; or (ii) the offer is abandoned or withdrawn by the offeror or the offer otherwise expires without such Common Voting Shares or Variable Voting Shares, as the case may be, being taken up and paid for, the Common Voting Shares or Variable Voting Shares, as the case may be, resulting from the conversion will be re-converted into Non-Voting Shares and a share certificate representing the Non-Voting Shares will be sent to the holder by our transfer agent. Common Voting Shares or Variable Voting Shares, as the case may be, resulting from the conversion and taken up and paid for by the offeror shall be re-converted into Non-Voting Shares at the time the offeror is required under the applicable securities legislation to take up and pay for such shares.

In the event that the offeror takes up and pays for the Common Voting Shares or Variable Voting Shares, as the case may be, resulting from conversion, our transfer agent shall deliver to the holders thereof the consideration paid for such shares by the offeror.

There will be no right to convert the Non-Voting Shares into Common Voting Shares or Variable Voting Shares, as the case may be, in the following cases: a. the offer to purchase Common Voting Shares or Variable Voting Shares, as the case may be, is not required under applicable securities legislation or the rules of a stock exchange on which the Common Voting Shares or Variable Voting Shares, as the case may be, are then listed to be made to all or substantially all holders of Common Voting Shares or Variable Voting Shares, as the case may be, who are in a province of Canada to which the legislation applies, that is, the

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WestJet 2014 Annual Information Form

offer is an exempt takeover bid within the meaning of the foregoing securities legislation; or b. an offer to purchase Non-Voting Shares is made concurrently with the offer to purchase Common Voting Shares or Variable Voting Shares, as the case may be, and the two offers are identical in respect of price per share, percentage of outstanding shares for which the offer is made, and in all other material respects, including in respect of the conditions attaching thereto. The offer to purchase the Non-Voting Shares must be unconditional, subject to the exception that the offer for the Non-Voting Shares may contain a condition to the effect that the offeror not be required to take up and pay for Non-Voting Shares tendered in response to the offer if no shares are purchased pursuant to the contemporaneous offer for the Common Voting Shares or the Variable Voting Shares, as the case may be.

The conversion of Non-Voting Shares to Common Voting Shares or Variable Voting Shares, as the case may be, as contemplated above is subject to certain procedures and formalities, which are described in our Articles, dated May 4, 2011 and are available under our corporate profile on SEDAR at www.sedar.com.

Preferred Shares Issuable in Classes and Series

We may issue Preferred Shares from time to time in any class and in any series as the Board of Directors may determine. The Board of Directors may also fix the designations, rights, privileges and conditions attaching to the Preferred Shares of each class and series. The holders of Preferred Shares are not entitled to vote, except as provided for in the ABCA. Priority The Preferred Shares of each class and each series, with respect to the payment of dividends and distribution of assets in the event of liquidation, dissolution or winding-up of our Company, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding-up our affairs, rank on a parity with the Preferred Shares of every other series in its class and are entitled to preference over the Voting Shares, the Non-Voting Shares and any other shares of any other class ranking junior to such class of Preferred Shares. The First Preferred Shares rank in priority to the Second Preferred Shares and the Third Preferred Shares, and the Second Preferred Shares rank in priority to the Third Preferred Shares.

Potential Constraints under the ABCA

Our Articles provide that in the event any Canadian federal or provincial legislation applicable to our Company is prescribed which implements additional constraints on the Voting Shares, in addition to those described herein, the Articles and the provisions applicable to the Voting Shares set forth therein shall be read as if they included such additional constraints that assist our Company to qualify under such prescribed law to receive licenses, permits, grants, payments or other benefits by reason of attaining or maintaining a specified level of Canadian ownership and control and such specified level of Canadian ownership and control shall be the level of Canadian ownership and control designated by such prescribed law of Canada or a province. The implementation of any such Canadian federal or provincial legislation may have an effect on the voting rights or ownership restrictions applicable to the Voting Shares, and in particular may have an adverse effect on holders of Variable Voting Shares.

Exemptive Relief from Take-Over Bid and Early Warning Rules

On September 21, 2012, we received an exemption to treat our Variable Voting Shares and Common Voting Shares as a single class for the purposes of applicable take-over bid requirements and early warning reporting requirements contained under Canadian securities laws. Pursuant to an application by our Company, the securities regulatory authorities in each of the provinces of Canada granted exemptive relief (the Decision) from (i) applicable formal take-over bid requirements, as contained under Canadian securities laws, such that those requirements would only apply to an offer to acquire 20 per cent or more of the outstanding Variable Voting Shares and Common Voting Shares of our Company on a combined basis, and (ii) applicable early warning reporting requirements, as contained under Canadian securities laws, such that those requirements would only apply to an acquirer who acquires or holds beneficial ownership of, or control or direction over, 10 per cent or more of the outstanding Variable Voting Shares and Common Voting Shares of our Company on a combined basis (or five per cent in the case of acquisitions during a take-over bid), and (iii) applicable alternative monthly reporting requirements, as contained under Canadian Securities laws, such that eligible institutional investors may meet the eligibility criteria for alternative monthly reporting by calculating their security holdings using a denominator comprised of all outstanding Common Voting Shares and Variable Voting Shares on a combined basis, and a numerator including all of the Common Voting Shares or

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WestJet 2014 Annual Information Form

Variable Voting Shares, as the case may be, beneficially owned or controlled by the institutional investor. A copy of the Decision is available on SEDAR at www.sedar.com.

The Decision takes into account our dual class shareholding structure that was implemented to ensure compliance with the foreign ownership requirements of the CTA. An investor does not control or choose which class of our shares it acquires and holds. The class of shares ultimately available to an investor is only a function of the investor's status as a Canadian or non- Canadian (as defined under the CTA). The relatively small number of Variable Voting Shares (the share class for non- Canadians) outstanding prior to the Decision, absent the Decision, may have limited the ability of non-Canadians to acquire shares of our Company in the ordinary course without the apprehension of inadvertently triggering the take-over bid rules or early warning reporting requirements.

DIVIDEND POLICY

Our dividend is reviewed against the Corporation’s dividend policy on a quarterly basis in light of our financial position, financing policies, cash flow requirements and other factors deemed relevant. The declaration, amount and payment of future dividends will be subject to the discretion of our Board of Directors, and to applicable law.

Prior to November 2, 2010, no dividends were paid or declared on any of our shares since the date of incorporation.

The following table sets forth the per share amount of dividends we declared to shareholders during the last three fiscal years:

2014 2013 2012 Common Voting Shares $0.48 $0.40 $0.28 Variable Voting Shares $0.48 $0.40 $0.28

Our Board of Directors declared and paid a quarterly dividend of $0.12 per Voting Share for each quarter in 2014. On February 2, 2015, our Board of Directors declared our 2015 first quarter dividend of $0.14 per Voting Share, a 17 per cent increase from $0.12 per Voting Share in the previous quarter.

MARKET FOR SECURITIES

Our Common Voting Shares and Variable Voting Shares are traded on the Toronto Stock Exchange (TSX) under the symbols WJA and WJA.A, respectively. The following table lists the high and low market prices and trading volume of our Common Voting Shares and Variable Voting Shares for the periods indicated:

Common Voting Shares Variable Voting Shares TSX: WJA TSX: WJA.A 2014 High ($) Low ($) Volume High ($) Low ($) Volume January 28.00 23.81 9,260,372 28.02 23.83 488,923 February 26.78 24.80 10,512,628 26.96 24.92 914,835 March 25.98 22.95 10,062,785 25.96 22.99 336,975 April 26.25 24.24 5,939,435 26.12 24.35 152,647 May 25.24 23.31 6,324,641 25.12 23.30 1,338,041 June 26.89 24.26 6,046,822 26.80 24.16 173,654 July 29.11 25.93 6,389,630 28.97 26.20 396,123 August 29.63 27.81 6,902,018 29.44 28.05 111,498 September 33.33 29.25 9,238,964 33.74 29.56 355,713 October 32.20 26.18 10,560,927 32.14 26.16 1,079,391 November 32.45 29.64 8,536,402 32.36 29.75 208,616 December 34.95 31.15 10,861,956 34.98 30.93 214,889

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WestJet 2014 Annual Information Form

DIRECTORS AND EXECUTIVE OFFICERS

The following information relating to the current Directors and Executive Officers is based partly on our records and partly on information received from each Director or Executive Officer, as applicable, and sets forth the name, residence, age, positions and offices held at WestJet, the year in which he or she was first elected a Director, as applicable, the number of Voting Shares held in our Company and certain additional background information. All Directors are elected for a one year term at the annual general meeting held in May and are subject to re-election each year.

Our Directors and Executive Officers, as a group, own, directly or indirectly, or exercise control or direction over, 3,205,279 (approximately three per cent) of our Voting Shares at March 18, 2015. Information as to Voting Shares beneficially owned, controlled or directed, directly or indirectly, and not within our knowledge has been supplied by the respective individuals and is provided at March 18, 2015, unless otherwise stated.

Board of Directors The following is a list of our Directors at March 18, 2015:

CLIVE J. BEDDOE

Age: 68 Mr. Beddoe is the Chair of the Board of WestJet, President of The Calgary, Alberta, Canada Hanover Group of Companies, a private investment company, and a Chair former Director of Alberta Investment Management Corp. Mr. Beddoe, a Director since: Jun. 21, 1995 successful entrepreneur, brings to WestJet a strong background in Independent financial planning and strategic management. Mr. Beddoe is a private pilot and has been licensed to fly numerous types of aircraft. It was through this keen interest in aircraft that he became involved with the Areas of Expertise: formation of WestJet. Mr. Beddoe served as President of WestJet until Airline industry September 2006 and the Chief Executive Officer of WestJet until Management September 2007. On February 10, 2009, Mr. Beddoe relinquished his role as Executive Chairman of WestJet in favour of acting solely as Chair of the Board. Mr. Beddoe has been the recipient of honorary degrees from the University of Calgary and Wilfred Laurier University and was appointed the 2010/2011 Jarislowsky Resident Fellow in Business Management at the Haskayne School of Business at the University of Calgary. In 2012, Mr. Beddoe was inducted into the Canadian Business Hall of Fame and, in 2013, was inducted into the Calgary Business Hall of Fame.

Voting Shares: 795,346 Deferred Share Units: 1,547

HUGH BOLTON

Age: 76 Mr. Bolton is a Chartered Accountant and Fellow of the Alberta Institute of Edmonton, Alberta, Canada Chartered Accountants, and the former Chairman, CEO and partner of Director since: Aug. 2, 2005 Coopers & Lybrand Canada, Chartered Accountants. Mr. Bolton is Independent currently the non-executive Chair of the Board of Directors of EPCOR Utilities Inc., an integrated energy company. He is also a board member of Teck Resources Limited and Capital Power Corporation and a former board member of the Canadian National Railway Company, TD Bank Areas of Expertise: Financial Group, and Matrikon Inc. Mr. Bolton received his Bachelor of Accounting Arts in Economics from the University of Alberta. In 2006, he was made a Corporate finance fellow of the Institute of Corporate Directors (Canada). In 2010 he Corporate governance received a “Lifetime Achievement Award” from the Alberta Institute of Chartered Accountants.

Voting Shares: 5,000 Deferred Share Units: 19,916

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WestJet 2014 Annual Information Form

RON A. BRENNEMAN

Age: 68 Mr. Brenneman is a corporate director and was Executive Vice-Chairman Calgary, Alberta, Canada of Suncor Energy Inc. (an integrated energy company) from August 2009 Director since: Sept. 8, 2009 until February 2010. He was President and Chief Executive Officer of Independent Petro-Canada from January 2000 until August 2009. Prior to joining Petro-Canada in 2000, he spent more than 30 years with Imperial Oil Ltd. and its then parent company Exxon Corporation. Mr. Brenneman also serves on the boards of Scotiabank and BCE Inc. Mr. Brenneman holds a Areas of Expertise: B.Sc. (in chemical engineering) from the University of Toronto and a Retail business M.Sc. (in control systems) from the University of Manchester Management International business

Voting Shares: 40,000 Deferred Share Units: 2,316

ANTONIO FAIOLA

Age: 40 Mr. Faiola joined WestJet in April 2002 as a flight attendant. He has been Calgary, Alberta, Canada an active member of PACT, WestJet's employee association, through the Director since: Feb. 7, 2012 Flight Attendant Association Board (FAAB) since 2003. In 2008, Mr. Faiola Non-Independent moved into the role of FAAB Vice-Chair before being elected as FAAB Chair in 2009. Mr. Faiola was elected PACT Chair in November 2011 and joined the Board of Directors in early 2012 as WestJet's PACT representative. Areas of Expertise: Originally from Ville LaSalle, Québec, Mr. Faiola is a graduate of Airline industry Concordia University, holding a Bachelor of Commerce and a Masters in Sports Administration.

Voting Shares: 9,585

BRETT GODFREY

Age: 51 Mr. Godfrey is the co-founder and former Chief Executive Officer of Virgin Clayfield, Queensland, Australia Blue (now Virgin Australia), a publicly listed airline. Mr. Godfrey brings Director since: Aug. 22, 2006 valuable experience in the airline industry to WestJet. He has worked for Independent various Virgin Group airlines, starting in the early 1990’s with Virgin Atlantic as its Finance Manager. In 1997, he was appointed Chief Financial Officer of Virgin Express, a low-fare publicly listed airline in Belgium, before launching Virgin Blue, an airline he conceptualized and Areas of Expertise: implemented in 2000 and retired from 10 years later. Mr. Godfrey is a Airline industry board member of Auckland International Airport; Tourism Australia, Accounting Australia’s national tourism marketing agency; and Room to Read Management (Australia), a not-for-profit organization. He holds a business degree from Victoria University and is a Chartered Accountant. Mr. Godfrey was awarded the Australian Centenary Medal for his service to tourism and aviation, was recognized as the Australian Chief Executive of the Year by the Customer Service Institute of Australia, and the Outstanding Chartered Accountant in Business by the Australian Institute of Chartered Accountants.

Voting Shares: 13,700 Deferred Share Units: 2,316

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WestJet 2014 Annual Information Form

ALLAN W. JACKSON

Age: 74 Mr. Allan Jackson is currently the President and Chief Executive Officer of Calgary, Alberta, Canada Arci Ltd., a private real estate investment company, and President and Director since: Jul. 30, 2003 Chief Executive Officer of Jackson Enterprises Inc., a private holding and Independent consulting company. Mr. Jackson serves as Chair of the board of directors for Canadian Western Bank and previously served as a director of Princeton Developments Ltd., a private real estate development and management company. Mr. Jackson received his Bachelor of Arts Areas of Expertise: (Honours) in Business Administration from the University of Western Corporate governance Ontario. Banking Real estate Management Compensation Voting Shares: 25,000 Deferred Share Units: 37,038

S. BARRY JACKSON

Age: 62 Mr. Barry Jackson is a corporate director and was formerly President, Calgary, Alberta, Canada Chief Executive Officer and a director of Crestar Energy Inc. He has Director since: Feb. 24, 2009 worked in the oil and gas industry since 1974 and held senior executive Independent positions with Northstar Energy Corporation and Crestar. Mr. Jackson has a Bachelor of Science degree in Engineering from the University of Calgary and is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. He has served on the boards of Areas of Expertise: several public companies and was made a fellow of the Institute of Compensation Corporate Directors in 2010. Mr. Jackson is the Chair of TransCanada Management Corporation and TransCanada PipeLines Limited. In addition to his public Oil & gas company directorships, Mr. Jackson is also a director of Laricina Energy Corporate governance Ltd.

Voting Shares: 10,000 Deferred Share Units: 23,284

WILMOT L. MATTHEWS

Age: 78 Mr. Matthews has been involved in all aspects of investment banking by Toronto, Ontario, Canada serving in various positions with Nesbitt Burns Inc. and its predecessor Director since: Sept. 17, 1996 companies from 1964 until his retirement in September, 1996, most Independent recently as Vice Chairman and Director. Mr. Matthews is currently President of Marjad Inc., a private investment company, and is also a current member of the Investment Advisory Committee of Imperial Capital, a private equity fund manager. Mr. Matthews received his Areas of Expertise: Bachelor of Arts in Math, Physics and Chemistry from the University of Investments Toronto, his Master of Science in Economics from the London School of Accounting Economics in London, England, and is a Chartered Accountant. Corporate finance Corporate governance

Voting Shares: 2,076,956 Deferred Share Units: 30,304

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WestJet 2014 Annual Information Form

L. JACQUES MÉNARD, C.C., O.Q.

Age: 69 Mr. Ménard is the current Chairman of BMO Nesbitt Burns, an investment Montréal, Québec, Canada advisory and wealth management firm, and President of BMO Financial Director since Aug. 3, 2011 Group, Québec, a highly diversified financial services organization. He Independent currently sits on several boards including Claridge Inc., Stingray Digital, the Montreal Symphony Orchestra and the Montreal Alouettes. He is the former Chairman of Hydro-Québec, the Investment Dealers Association of Canada and the Task Force on Sustainability of the Quebec Health Care Areas of Expertise: and Social Services System. Mr. Ménard is a graduate of Collège Sainte- Investments Marie, holds a Bachelor of Commerce from Loyola College and a Master of Accounting Business Administration from the University of Western Ontario. He has Corporate finance also received honorary doctorates from Concordia University, York Corporate governance University, the Université de Montréal and the Université de Sherbrooke. Mr. Ménard is a Companion of the Order of Canada and an Officer of the Order of Quebec.

Voting Shares: 10,000 Deferred Share Units: 5,225

L.M. (LARRY) POLLOCK

Age: 68 Mr. Pollock is the retired Chief Executive Officer of CWB, a Canadian Edmonton, Alberta, Canada Schedule I bank. He is also the former Chair of Canadian Direct Insurance Director since: Sept. 16, 1999 (a subsidiary of CWB). Mr. Pollock is the Chair of HNZ Group Inc., a Independent helicopter transportation company, and a director of EPCOR Utilities Inc., and Melcor Real Estate Investment Trust. He is a past member of the Executive Council of the Canadian Bankers' Association. Mr. Pollock graduated from the Saskatchewan Institute of Applied Arts & Sciences in Areas of Expertise: Business Administration and has received an honorary Bachelor’s degree Banking in Business Administration from the Northern Alberta Institute of Accounting Technology. Management Corporate Finance Voting Shares: 16,975 Deferred Share Units: 2,316

JANICE RENNIE

Age: 57 Ms. Rennie currently sits on several public company boards and has held Edmonton, Alberta, Canada senior management positions with a number of companies including, Director since: Aug. 3, 2011 most recently, EPCOR Utilities Inc. where she served as Senior Vice- Independent President of Human Resources and Organizational Effectiveness. Prior to 2004, Ms. Rennie was Principal of Rennie & Associates, which provided investment and related advice to small and mid-sized companies. Ms. Rennie holds a Bachelor of Commerce from the University of Alberta and Areas of Expertise: is a Fellow of the Institute of Chartered Accountants of Alberta. In 2012, Investments Ms. Rennie was made a fellow of the Institute of Corporate Directors. Accounting Compensation Corporate governance

Voting Shares: 6,500 Deferred Share Units: 9,500

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WestJet 2014 Annual Information Form

GREGG SARETSKY

Age: 55 President and Chief Executive Officer of WestJet since April 1, 2010. Calgary, Alberta, Canada Gregg Saretsky joined WestJet in June 2009 as Vice-President of WestJet Director since: Apr. 1, 2010 Vacations, before being named Executive Vice-President, Operations, for Non-Independent WestJet in October 2009. Mr. Saretsky began his career in aviation with Canadian Airlines in 1985 as a route development planner and rose through the ranks to the position of Vice-President, Airports, and Vice- President, Marketing, before joining Alaska Airlines in 1998 as Senior Areas of Expertise: Vice-President, Marketing & Planning. He also served as Executive Vice- Airline industry President of Flight Operations and Marketing, responsible for the airline's Marketing flight crews, operations, and consumer programs and activities. Mr. Management Saretsky holds a Bachelor of Science degree in Microbiology and Biochemistry and a Master's Degree in Business Administration from the University of British Columbia (UBC). In 2012, Mr. Saretsky was named Alberta’s Business Person of the Year by Venture Magazine and in 2013 Mr. Saretsky was named top new CEO by Canadian Business magazine. Mr. Saretsky currently sits on the Board of alumni UBC.

Voting Shares: 80,368

Executive Officers

The following is a list of our Executive Officers at March 18, 2015, other than Mr. Gregg Saretsky, President and Chief Executive Officer, who is included under the heading Board of Directors.

VITO CULMONE Vito Culmone joined WestJet as EVP, Finance, and Chief Financial Officer in March 2007. He is responsible for the overall financial management of WestJet, its financial reporting and long-term financial planning, as well as for multiple corporate functions including Audit and Advisory, Controllership, Corporate Real Estate, Fuel, Environment and Government Relations, Investor Relations, Legal and Regulatory, Procurement and Materials, Treasury and Tax.

Prior to joining WestJet, Mr. Culmone enjoyed a 12-year career at Molson Inc. where he worked in a number

of business environments. At Molson Mr. Culmone worked both domestically and internationally in various Executive Vice- senior leadership roles and gained significant experience in negotiating, evaluating and leading strategic President, Finance investment opportunities. His previous roles at Molson included Vice-President, Controller and Corporate and Chief Financial Finance, Molson Inc. (pre-merger with Coors); Vice-President and Chief Financial Officer of Molson U.S.A.; and Officer Vice-President, Commercial Finance at Molson Canada. Calgary, Alberta, Canada Mr. Culmone obtained his Chartered Accountant designation in 1989 while at PricewaterhouseCoopers and holds a Bachelor of Commerce degree from the University of Toronto.

In August 2013, Mr. Culmone joined the board of directors at EPCOR Utilities Inc., an integrated energy company, where he is the Chair of their audit committee and a member of their human resources and compensation committee.

Experience WestJet 8 years; Industry 8 years

Voting Shares: 34,508

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WestJet 2014 Annual Information Form

ROBERT CUMMINGS

Bob Cummings became EVP, Sales, Marketing and Guest Experience, in 2009. His responsibilities include corporate development, network planning and scheduling, revenue management, airline partnerships, marketing and communications, sales, distribution (including call centres), guest experience planning, revenue management and network planning, and WestJet Vacations. Prior to that, he held the title of EVP, Guest Experience and Marketing. Shortly after he joined WestJet in March 2005 as Vice-President, Marketing, Mr. Cummings mobilized his team to create the WestJet owners advertising campaign, which has been WestJet’s most successful brand communications platform to date. Executive Vice- Prior to joining WestJet, Mr. Cummings worked for over eight years in the wireless industry in Canada President, Sales, including a one-year position in Romania launching the country's first mobile phone service. Marketing and Guest Experience Mr. Cummings was named Canada's top marketing executive by Canadian Business magazine in 2008. In 2013, Mr. Cummings was named one of the top six marketing executives in airlines by the Blue Sky Calgary, Alberta, Canada organization.

Mr. Cummings achieved his Bachelor of Arts degree in Economics in 1989 from the University of Victoria, followed by a Masters in Business Administration from Queen's University in 1992.

Experience WestJet 10 years; Industry 10 years

Voting Shares: 33,403

BRIGID PELINO

Brigid Pelino joined WestJet as EVP, People and Culture in August, 2013. Ms. Pelino is responsible for overseeing all aspects of WestJet's People (human resources) department.

Ms. Pelino joined WestJet from Tim Hortons. She started with Tim Hortons in 2001 as Vice President, Human Resources and was appointed Executive Vice President, Human Resources in August 2012.

Prior to her employment at Tim Horton’s, she held increasingly senior human resource roles at Canadian Tire Corporation, Honeywell Aerospace (based in Los Angeles, California) and General Electric.

Executive Vice- Ms. Pelino earned her Honours Bachelor of Arts degree (economics and accounting) and her Masters in President, People and Industrial Relations at the University of Toronto. She was also active in the development of women leaders in Culture the food service industry, having served as Executive Chair of the Women’s Foodservice Forum Calgary, Alberta, Canada

Experience WestJet 1 year; Industry 1 year

Voting Shares: 7,170

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WestJet 2014 Annual Information Form

FERIO PUGLIESE

Ferio Pugliese became EVP and President of WestJet's regional airline, WestJet Encore, in November 2012. Mr. Pugliese joined WestJet in 2007. Serving in his previous role as WestJet's EVP, Culture and Inflight Services, Mr. Pugliese was responsible for overseeing all aspects of WestJet's People (human resources, corporate real-estate and inflight services) department.

Prior to joining WestJet his previous roles included Vice President, Human Resources, at Catalyst Paper Corporation in Vancouver, Director of Human Resources Development at Windsor Casino Ltd., and Director of Human Resources Development at Casino Rama, Carnival Resorts and Casinos. Executive Vice- President and A Certified Human Resources Professional (CHRP), Mr. Pugliese holds a Master of Arts degree in Adult President, WestJet Education from Central Michigan University, an Honours Bachelor of Arts degree in Social Science and an Encore Honours Bachelor of Commerce degree from the University of Windsor, and completed the Richard Ivey School of Business executive development program. In 2007, Mr. Pugliese was recognized by Caldwell Calgary, Alberta, Canada Partners as one of Canada's Top 40 Under 40.

Experience WestJet 8 years; Industry 8 years

Voting Shares: 40,768

ROCKY WIGGINS

Rocky Wiggins joined WestJet as Executive Vice-President and Chief Information Officer (CIO) on June 2, 2014. Mr. Wiggins is responsible for the overarching strategy of WestJet's IT programs and the team's

continuing effort to support both external guest experience and internal productivity.

Mr. Wiggins comes to WestJet with 35 years of experience in the travel industry where he has worked to become a leader in technology innovation. Rocky's previous position was CIO of Sun Country Airlines in Minnesota. Before that he was Senior Vice-President and CIO of AirTran Airways. His career in the airline

industry began with 20 years spent at US Airways where he served in a number of management and director Executive Vice- positions. Mr. Wiggins also spent time working at Sabre Airline Solutions, the company that developed President and Chief WestJet's airline platform. Information Officer Mr. Wiggins studied physics at Guilford University, engineering at Western Kentucky University and has a Calgary, Alberta, Canada Masters of Business Administration from Wake Forest University.

Experience WestJet 1 year; Industry 35 years

Voting Shares: nil

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WestJet 2014 Annual Information Form

Committees of the Board

The Board has an Audit Committee (Audit), a People and Compensation Committee (P&C), a Corporate Governance and Nominating Committee (CGN) and a SH&E Committee. Each Committee reports to the Board with their recommendations for final approval. The following table sets out committee memberships for all Directors as at March 18, 2015:

Committee Members as at March 18, 2015 Audit P&C CGN SH&E Non-Independent Saretsky(1) Faiola  Independent  Beddoe(2) Bolton Chair  Brenneman   Godfrey  A. Jackson  Chair  B. Jackson  Chair Matthews   Ménard   Pollock   Chair Rennie  

Notes: (1) As President and CEO, Mr. Saretsky is not a member of any committee of the Board, but is invited to attend any meeting except those held in camera, sessions for independent Directors only or whenever specifically determined by the committee that the meeting should be closed to the President and CEO. (2) As Chair of the Board, Mr. Beddoe voluntarily attends all committee meetings. Conflicts of Interest There are potential conflicts of interest to which some of the Directors and Officers of our Company will be subject. In connection with our operations, some of the Directors and Officers are engaged in or associated with and will continue to be engaged in or associated with service and supply businesses whose services and products may be utilized by us from time to time. At present, these relationships are immaterial. Conflicts, if any, will be subject to the procedures and remedies as provided for under the ABCA and subject to internal review by the Audit Committee.

Cease-trade, Bankruptcy, Penalties or Sanctions

None of our Executive Officers or Directors is as at the date hereof, or has been in the last 10 years, a director, chief executive officer or chief financial officer of any company (including WestJet) that: (a) was subject to a cease trade or similar order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than 30 consecutive days (an Order) that was issued while that person was acting in that capacity; or (b) was subject to an Order that was issued after such Director or Executive Officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

Other than as disclosed herein, none of our Executive Officers or Directors is as at the date hereof, or has been in the last 10 years, a director or executive officer of any company (including WestJet) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold the company’s assets. In addition, none of our Executive Officers or Directors, has within the last 10 years, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangements or compromises with creditors, or had a receiver, receiver manager or trustee appointed to hold his or her assets.

Mr. Beddoe served as a Director of Darian Resources Ltd. (Darian), a private company, until his resignation in October 2009. Subsequent to Mr. Beddoe’s resignation, on February 12, 2010, Darian obtained an order under the Companies’ Creditors Arrangement Act. On July 2, 2010, the Court of Queen's Bench of Alberta issued its final order approving Darian's Plan of Compromise and Arrangement and the payments to creditors contemplated in the Plan of Compromise have been made.

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WestJet 2014 Annual Information Form

No Executive Officer or Director has been subject to (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

AUDIT COMMITTEE DISCLOSURE

In accordance with its Charter, the primary purpose of the Audit Committee is to assist the Board in fulfilling its responsibilities by overseeing reliable, accurate and clear financial reporting to shareholders and the establishment and maintenance of an adequate and effective system of internal control. Consistent with this purpose, the Audit Committee encourages continuous improvement of, and fosters adherence to, the Corporation’s policies, procedures and practices at all levels. The Audit Committee Charter is attached to this AIF as Appendix A.

Composition of the Audit Committee

The Audit Committee is currently composed of six independent Directors: Mr. Hugh Bolton, Mr. Allan Jackson, Mr. Wilmot Matthews, Mr. Jacques Ménard, Mr. Larry Pollock, and Ms. Janice Rennie. The members of the Audit Committee are all independent and financially literate in accordance with National Instrument 52-110 Audit Committees, and are free from any relationship that, in the opinion of the Board, would interfere with the exercise of his or her independent and objective judgment as a member of the Committee. The Audit Committee met four times during 2014, which meetings included discussions with the auditors in the absence of Management.

Relevant Education and Experience

Mr. Bolton is a Chartered Accountant and Fellow of the Alberta Institute of Chartered Accountants, and the former Chairman, CEO and partner of Coopers & Lybrand Canada, Chartered Accountants. Mr. Bolton is the Audit Committee Chair for Teck Resources Limited, member and former Audit Committee Chair of Toronto Dominion Bank and member of the Audit Committee for Canadian National Railway. Mr. Bolton is a Fellow of the Institute of Corporate Directors (Canada), a member of the joint Canadian Institute of Chartered Accountants (CICA) and Canadian Public Accountability Board Audit Committee Working Group and a member of the CPA Canada Corporate Oversight and Governance Advisory Board.

Mr. Allan Jackson is currently the President and Chief Executive Officer of Arci Ltd., a private real estate investment company, and President and Chief Executive Officer of Jackson Enterprises Inc., a private holding and consulting company. Mr. Jackson serves as Chair of the board of directors for CWB and previously served as a director and member of the Audit Committee of Princeton Developments Ltd., a private real estate development and management company.

Mr. Matthews has been involved in all aspects of investment banking by serving in various positions with Nesbitt Burns Inc. and its predecessor companies from 1964 until his retirement in September, 1996, most recently as Vice Chairman and Director. Mr. Matthews is currently President of Marjad Inc., a private investment company, and is also a current member of the Investment Advisory Committee of Imperial Capital, a private equity fund manager. He has previously served on numerous Audit Committees including Renaissance Energy Ltd., Burns Fry Ltd., R.S. Technologies Inc. and Husky Energy Inc.

Mr. Ménard is the current Chairman of BMO Nesbitt Burns, an investment advisory and wealth management firm, and President of BMO Financial Group, Québec, a highly diversified financial services organization. He currently sits on several boards including Claridge Inc., and the Montreal Alouettes. He is the former Chairman of Hydro-Québec, the Investment Dealers Association of Canada and the Task Force on Sustainability of the Quebec Health Care and Social Services System. Mr. Ménard is also a founding director of the Canadian Public Accountability Board.

Mr. Pollock is the retired Chief Executive Officer of CWB. He is also the former Chair of Canadian Direct Insurance (a subsidiary of CWB). Mr. Pollock is a director of EPCOR Utilities Inc., HNZ Group Inc., a helicopter transportation company, Melcor Real Estate Investment Trust and a past member of the Executive Council of the Canadian Bankers' Association. He has served on the Audit Committees of EPCOR Utilities Inc. and Allianz Insurance and Trafalgar Insurance of Canada, subsidiaries of Allianz of Germany.

Ms. Rennie currently sits on several public company boards and has held senior management positions with a number of companies including, most recently, EPCOR Utilities Inc. where she served as Senior Vice-President of Human Resources and Organizational Effectiveness. Prior to 2004, Ms. Rennie was Principal of Rennie & Associates, which provided investment and related advice to small and mid-sized companies. Ms. Rennie sits on the Audit Committees of Teck Resources Ltd., West

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WestJet 2014 Annual Information Form

Fraser Timber Co. Ltd., Major Drilling Group International Inc. and Methanex Corp. Ms. Rennie is a Fellow of the Institute of Chartered Accountants of Alberta. In 2012, Ms. Rennie was made a fellow of the Institute of Corporate Directors.

Pre-Approval Policies and Procedures

In accordance with its Charter, the Audit Committee reviews and recommends to the Board for approval and public release the annual and quarterly financial statements and notes thereto, approves the scope and timing of the annual audit by our independent external auditors and reviews and approves the audit plans, activities, staffing and organizational structure of the internal audit department. The Audit Committee also reviews and assesses with the independent external auditors the Corporation's internal control over financial reporting and corporate approval procedures. Audit fees and fees paid to the external auditors for non-audit services are reviewed by the committee quarterly. Non-audit services to be provided to us by our external auditors in excess of five per cent of our annual audit fee must be pre-approved by the Audit Committee. External Auditor Service Fees

The Audit Committee annually reviews the performance of our external auditors and makes recommendations to the Board regarding our auditors’ appointment and remuneration. The Committee receives reports, reviews audit findings, approves audit plans and is apprised of future reporting developments from our external auditors. KPMG LLP serves as our external, independent auditors. In aggregate, fees paid, and payable, to KPMG LLP for the years ended December 31, 2014 and 2013 respectively, are detailed below.

2014 2013 Audit fees (i) 705,000 690,000 Audit-related fees (ii) 122,068 70,000 Tax fees (iii) 4,500 12,000 Other(iv) 50,000 13,245 881,568 785,245

(i) Audit fees relate to professional services rendered in connection with the audit of our annual consolidated financial statements and review of our consolidated interim financial statements.

(ii) 2014 audit related fees relate to professional services rendered in connection with the audit of passenger facility charges, the audit of a specific Trust account, specified procedures performed on a particular sales schedule and professional services associated with the July 2014 private placement offering memorandum of Senior Unsecured Notes. 2013 audit related fees relate to professional services rendered in in connection with the audit of passenger facility charges, the audit of a specific Trust account, specified procedures performed on a particular sales schedule and professional services associated with WestJet Internal Audit.

(iii) Tax fees were paid for general tax compliance relating to Canadian taxes and various taxes in the U.S. and international jurisdictions.

(iv) Other fees for 2014 were paid for human resources advisory matters. MATERIAL CONTRACTS

We have entered into the following material contract between January 1, 2014 and the date of this AIF:

• a note indenture made as of July 23, 2014 with CST Trust Company for the private placement offering of $400M 3.287% Senior Unsecured Notes (please refer to the section called Aircraft Financing on page 17 of this AIF for further information).

Prior to January 1, 2014, we entered into the following material contacts which are still in effect as of the date of this AIF:

• an $820 million guarantee loan agreement, entered into on March 2013, with Export development Canada for financing support of the Bombardier Q400s.

• an aircraft purchase agreement entered into in September 2013 with Boeing relating to the purchase of 65 737 MAX aircraft.

• an aircraft purchase agreement entered into in June 2012, with Bombardier relating to the purchase of 20 Q400 NextGen aircraft and the option for an additional 25 Q400 NextGen aircraft.

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WestJet 2014 Annual Information Form

LEGAL PROCEEDINGS

We are party to legal proceedings and claims that arise during the ordinary course of business. It is the opinion of management that the ultimate outcome of these and any outstanding matters will not have a material effect upon our financial position, results of operations or cash flows.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

There were no material interests, direct or indirect, of our Directors or Executive Officers, nor of any nominees for Director or, to our knowledge, any shareholder who beneficially owns, or controls or directs, directly or indirectly, more than 10 per cent of our Voting shares, or any known associate or affiliate of any such persons in any transaction within the three most recently completed financial years or during the current fiscal year, or in any proposed transaction, which has materially affected or is reasonably expected to materially affect us or any of our subsidiaries.

INTERESTS OF EXPERTS

No person or corporation is named as having prepared or certified a statement, report, opinion or valuation described or included in a filing, or referred to in a filing, made under National Instrument 51-102 – Continuous Disclosure Obligations by our Company during, or relating to, our most recently completed financial year, and whose profession or business gives authority to the statement, report opinion or valuation made by the person or corporation, other than KPMG LLP, our auditors. KPMG LLP has advised our Audit Committee that they are independent with respect to our Company in accordance with the auditor's rules of professional conduct of the Institute of Chartered Accountants of Alberta.

RISKS AND UNCERTAINTIES

The risks described below are not intended to be an exhaustive list of all risks facing our Company. Other risks of which we are not currently aware or which we currently deem immaterial may surface and have a material adverse impact on our business.

Risks relating to the business

The airline industry is labour intensive and subject to increasing labour costs and potential unionization.

The labour intensive nature of the airline industry places additional emphasis on our human resource policies such as hiring, retention, working environment and compensation policies. Given the competitive nature of the airline industry we are constantly balancing the interests of our business and the interests of our employees. We have developed strong compensation policies that have both fixed and variable components, a mix of full-time, part-time and contract labour and a share ownership and profit sharing program that align the interests of our employees with the interests of our business. These policies allow our business and our employees to be rewarded in strong operating environments, but also protect and sustain our business and our employees in weaker operating environments. Should our labour costs not be able to suitably respond to changes in the economic and competitive environment, our operations and earnings could be negatively impacted.

We have a non-union workforce that we believe gives us a competitive advantage and helps foster our unique corporate culture. From time to time, certain groups of our employees have been subjected to unionization drives, such as currently the case with our pilots and flight attendants. An internal group of pilots, known as the WestJet Professional Pilots Association (WPPA), along with an internal group of flight attendants, known as the WestJet Professional Flight Attendants Association (WPFAA), each a non-certified trade union, are actively soliciting membership from among our groups of pilots and flight attendants. Each of WPPA and WPFAA have filed an unfair labour practice complaint with the Canadian Industrial Relations Board (CIRB) against WestJet (and in the case of WPPA, also against WJPA). In each set of proceedings, WestJet (and WJPA in the case brought against it) are vigorously defending the allegations.

In the future, the same and other groups of employees may be subjected to further unionization drives that could result in these classes of employees having a collective voice to bargain terms and conditions of employment outside of the scope of our existing employee agreements and our existing employee association. While no application for certification has been filed with the CIRB, the Canada Labour Code provides that a union can be automatically certified where more than 50 per cent of a group of employees sign membership cards. In the event an employee group were to unionize, we would be required to bargain in good faith with the trade union regarding the implementation of a collective agreement. Depending on the ability to reach a collective agreement and the final terms of that agreement, we could be subject to potential disruption in scheduled service, changes to our current work rules and processes and increases to our labour costs. Unionization could also

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WestJet 2014 Annual Information Form fundamentally change the dynamic of our relationship with our employees and may diminish our employee-friendly corporate culture and reputation, which could ultimately have a negative impact on our earnings.

We believe our employee association has played a key role in balancing the interests of the business with the interests of WestJetters through a pro-active approach to identifying and resolving issues that have important implications for our business, our employees and our culture. In December 2014, we announced that our pilots voted in favour of a new agreement that will expire on April 20, 2019. We are currently in the process of negotiations with our flight attendant employee group working towards an agreement that will best serve the interests of WestJetters and the business and alike. Should these negotiations not result in a definitive agreement, we may be subject to further unionization drives and negative impacts to our corporate culture and reputation.

The failure of critical systems on which we rely could harm our business.

We depend on automated systems to operate our business and support our initiatives, including our flight control systems, computerized airline reservation systems, telecommunication systems, aircraft maintenance systems, airport kiosk terminals and website. Our website and reservation systems must be able to accommodate a high volume of traffic and deliver important and accurate flight information. Any disruption to these systems could result in the loss of important data, reallocation of personnel, failure to meet critical deadlines, increased expenses, and could generally harm our business, guest experience and reputation.

Portions of key technology systems, including our revenue accounting system and reservation systems, are outsourced to third parties on whom we are reliant for timely and accurate processing of information critical to our business. In the ordinary course of business, our systems require modifications and refinements to address our growth and business requirements. We could be adversely affected if we are unable to modify our systems as necessary.

Integration of complex systems and technology presents significant challenges in terms of costs, human resources and development of effective internal controls. Integration also presents the risk of operational or security inadequacy or interruption, which could materially affect the ability to effectively operate our business.

As a company that processes, transmits and stores credit card data, we are subject to compliance with certain requirements established by credit card companies. Non-compliance with these requirements, whether through system breaches or limitations, may result in substantial fines or temporary or permanent exclusion from one or more credit card acceptance programs. The inability to process one or more credit card brands could have a material adverse impact on our guest bookings and could harm our business.

We may occasionally experience system interruptions and delays that make our website and services unavailable or slow to respond, which could prevent us from efficiently processing guest transactions or providing services. This, in turn, could reduce our operating revenues and the attractiveness of our services. Our computer and communications systems and operations could be damaged or interrupted by catastrophic events such as fires, floods, tornadoes, power loss, computer and telecommunications failures, acts of war or terrorism, computer viruses, security breaches, and similar events or disruptions. Any of these events could cause system interruptions, delays, and loss of critical data, and could prevent us from processing guest transactions or providing services, which could make our business and services less attractive and subject us to liability. Any of these events could damage our reputation and be expensive to remedy.

We are dependent on the price and availability of jet fuel. Continued periods of high fuel costs, volatility of fuel prices and/or significant disruptions in the supply of fuel could adversely affect our results of operations.

Jet fuel pricing represents a significant risk, as our fuel costs constitute our largest single expense category, representing 31.1 and 31.9 per cent of operating costs in 2014 and 2013, respectively. Fuel prices are affected by a host of factors outside our control, such as significant weather events, geopolitical tensions, refinery capacity and global demand and supply. A small change in the price of fuel can significantly affect our fuel costs and ultimately our earnings.

The ability to protect and grow our earnings in a volatile and rising fuel price environment is affected by our ability to manage fuel costs through key cost initiatives such as investments in fuel efficient aircraft as well as cost effective fuel management IT systems and fuel purchasing and dispensing services. These cost initiatives can only partially mitigate volatile and rising fuel prices, require long lead times to implement, and may or may not create a competitive cost advantage compared to the effectiveness of our competitors’ fuel savings investments and technologies at a given point in time. We discontinued our fuel hedging program in 2012 but may re-visit the program as changing markets and competitive conditions warrant. There is no

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WestJet 2014 Annual Information Form assurance that any new fuel hedging program will be effective in offsetting volatile or rising fuel prices or create a competitive advantage compared to our competitors.

The ability to protect and grow our earnings in a volatile and rising fuel price environment is also affected by our ability to manage fuel costs through revenue management and pricing initiatives. The effectiveness of these initiatives are limited by factors outside our control including the ability of the market to absorb price increases, the competitive pricing actions of our competitors, and the general macroeconomic conditions affecting discretionary consumer spending as it relates to both leisure and business travellers.

There is no guarantee that our fuel cost initiatives and revenue management practices will be effective in offsetting volatile or increasing fuel prices. If we are unable to mitigate volatile or increasing fuel prices, this would have an adverse effect on our earnings and our low cost operation, which significantly contributes to our growth strategy. In turn, this could affect the timing and nature of our growth strategy and initiatives and could also result in the curtailment of scheduled service.

We have a significant amount of fixed obligations and expect to incur significantly more fixed obligations, which could harm our ability to service our fixed obligations, obtain future sources of financing and meet our growth strategy.

Our significant fixed obligations include our working capital requirements, long-term debt, aircraft maintenance provisions, future tax liabilities and certain contractual lease payments for aircraft and other operating assets and services to maintain and expand our operations. We also have significant future firm commitments for new aircraft, engines and other operating assets and services to support our growth strategy. Our existing fixed obligations require significant funds to service interest, principal and other contractual operating obligations. Our future operating performance and cash flows as well as changes in the debt and equity markets will determine whether we are able to continue to successfully service our fixed obligations as well as obtain suitable new sources of financing in the future. Adverse impacts to our future operating performance and cash flows or adverse changes in the debt and equity markets, including any adverse regulatory or government imposed changes, would negatively impact our ability to service our existing fixed obligations as well as obtain new sources of financing on reasonable terms. In turn, this could have adverse effects on our future operations and financial condition and prevent us from achieving our desired growth strategy.

Failure to maintain our low-cost operating model would have adverse effects on our business strategy, financial condition and results of operations.

Our low cost business model is a key factor that enables us to provide low fares to our guests, protect and increase our market share through competitive pricing and fund our future growth initiatives. We continuously monitor and evaluate our operations for current and future cost saving opportunities that enable us to maintain or enhance our low cost business model. Although we have been effective in executing our low cost business model to date, there is no assurance that we will be able to do so in the future, especially related to costs that are outside our control, including fuel, foreign exchange rates, interest rates, government rates and fees, insurance and competitive and inflationary labour market pressures. Should we not be able to maintain a cost advantage over our competitors, this would affect our ability to offer competitively low fares to our guests. We are particularly dependent on the cost-conscious leisure traveller and therefore our ability to profitably offer competitive and low fares is critical to protecting and increasing our market share and funding our future growth initiatives. Should we not be able to accomplish these objectives due to higher costs, our earnings and financial condition would be negatively impacted.

Inability to retain key personnel could harm our business.

Our success will depend, in part, on the retention of management and key personnel. If any of these individuals become unable to continue in their present role, we may have difficulty replacing these individuals, which could adversely affect our business.

Our business is labour intensive and requires large numbers of pilots, flight attendants, mechanics, guest service and other personnel. Our growth and general turnover requires us to locate, hire, train and retain a significant number of new employees each year. There can be no assurance that we will be able to locate, hire, train and retain the qualified employees that we need to meet our growth plans or replace departing employees. Our business would be adversely affected if we are unable to hire and retain qualified employees at a reasonable cost.

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WestJet 2014 Annual Information Form

Loss of contracts, changes to our pricing agreements or access to travel suppliers’ products and services could have an adverse impact on WestJet Vacations.

We depend on third parties to supply us with certain components of the travel packages sold through WestJet Vacations. We are dependent, for example, on a large number of hotels in our transborder and international destinations in the US, Mexico, Central America, the Caribbean and Europe. In general, these suppliers can terminate or modify existing agreements with us on relatively short notice. The potential inability to replace these agreements, to find similar suppliers or to renegotiate agreements at competitive rates could have an adverse effect on the results of WestJet Vacations. Furthermore, any decline in the quality of products or services provided by these suppliers, or any perception by travellers of such a decline, could adversely affect our reputation or the demand for the products and services of WestJet Vacations.

Our operations are becoming increasingly complex as we continue to add different aircraft to our fleet mix and expand into new markets. The complexities of a mixed fleet and new markets could result in unexpected costs, stronger than expected competitive reactions and weaker than expected demand environments, which could adversely affect our financial condition and results of operations.

We plan to continue adding new markets and additional frequencies to our existing markets through the growth of our regional Bombardier Q400 fleet, our narrow body Boeing 737 NG fleet and, for the first time in 2015, the addition of wide- body Boeing 767-300 ERW aircraft.

The continued expansion of our fleet through smaller regional Bombardier Q400 turboprop aircraft and larger wide-body Boeing 767-300 ERW jet aircraft create additional operational complexity, new costs and stronger competition not previously encountered with our single fleet of Boeing 737 NG aircraft. Since we are a relatively new operator in the regional space and have yet to operate any wide-body aircraft, we may encounter unforeseen or unexpected costs and operational complexities that may adversely affect our financial condition, results of operations and guest experience.

The addition of new markets also exposes us to further operational complexity and uncertainty, new competition and new demand environments. Should we not be able to effectively mitigate these additional complexities, competitive forces and new markets this may adversely affect our financial condition, results of operations and guest experience.

A significant change in our unique corporate culture, guest experience or brand could have adverse operational and financial consequences.

Our corporate culture and brand recognition are key competitive advantages for us, especially in the Canadian market. We strive to maintain an innovative corporate culture that results in a unique, safe and caring guest experience that sets our company and our brand apart from our competitors. Failure to maintain our unique corporate culture that results in a safe and caring guest experience could adversely affect our strong brand, our operating results and our financial condition.

If we fail to maintain the privacy and security of our guests’ information, we could damage our reputation and incur substantial costs.

In the ordinary course of our business we receive, process and store vast amounts of information from our guests, often through online operations that depend upon the secure communication of information over public networks and in reliance on third party service providers. Although we maintain systems to protect this information, these systems must be continuously monitored and updated and could be compromised, in which case our guest information could become subject to intrusion, tampering or theft.

Any compromise of our data security systems or the security systems of our third party service providers could have an adverse impact on our reputation, could be costly to remediate and could result in litigation or regulatory sanctions, any of which could have a material adverse effect on our business.

Our financial results are affected by foreign exchange and interest rate fluctuations.

We are exposed to foreign exchange risks arising from fluctuations in exchange rates on our U.S.-dollar-denominated net monetary assets and liabilities and operating expenditures, mainly aircraft fuel, aircraft leasing expense, certain maintenance costs, a portion of airport operation costs, certain IT and computer reservation system fees, and the land components associated with our WestJet Vacations packages. Since our revenues are received primarily in Canadian dollars, we do not have offsetting gains therefore we are fully exposed to fluctuations in the US-dollar exchange rate with respect to these payment obligations.

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WestJet 2014 Annual Information Form

As of the date of this AIF, we are also exposed to fluctuations in the US-dollar exchange rate relating to 18 Boeing 737 NG aircraft purchase commitments and 65 Boeing MAX aircraft purchase commitments. The purchases of our Boeing aircraft are financed by funds drawn in Canadian dollars while the aircraft are paid for in U.S. funds at the date of each aircraft deposit. As a result, we are exposed to foreign currency fluctuations prior to each deposit date.

A significant deterioration of the Canadian dollar against the US dollar would have an adverse effect on our US-dollar operating and capital costs and our earnings would be negatively impacted. In addition, our foreign exchange hedging is currently limited to certain US-dollar operating expenditures and there is no assurance that this hedging will be effective in mitigating the impact of adverse changes in the US-dollar exchange rate on our earnings.

We are also exposed to general market fluctuations in interest rates for our future aircraft purchase commitments that will be financed at prevailing market rates. We continuously review financing alternatives available to us for our future aircraft deliveries. A significant increase in market interest rates would have an adverse impact on our future borrowing costs and earnings and there is no assurance our interest rate hedging program will be effective in mitigating these increases.

Our maintenance costs will increase as our fleet ages.

The average age of our fleet at December 31, 2014, was 6.8 years. Our maintenance costs will increase as our fleet ages and our aircraft warranties expire. Since we began acquiring our Boeing 737 NG and Bombardier Q400 NextGen aircraft, 86 aircraft have come off warranty, with an additional 6 coming off warranty in 2015. Our repair and maintenance programs include larger overhauls to engines, landing gear and airframes in addition to smaller ongoing maintenance requirements. Overhaul costs on owned components are separately capitalized and amortized over the period until the next overhaul whereas smaller ongoing maintenance activities are expensed when incurred. Overhaul costs for leased aircraft are accrued for in our maintenance provision expense and liability until the date of expected overhaul. Certain leased engines also require maintenance reserve payments to the lessor, which we expect to reclaim upon performing eligible engine overhaul activities. Unanticipated maintenance events outside our scheduled programs due to mechanical failures or mandatory aircraft directives from manufacturers or regulators would increase our maintenance costs and could potentially affect our scheduled flying by taking our aircraft out of service, both of which would negatively impact our earnings and guest experience.

Our network and operations are increasingly dependent on a few key markets and airports including YYZ, YYC and YVR.

To efficiently serve our network of destinations we are increasingly dependent on the markets and airport operations at Toronto’s Pearson International Airport, Calgary International Airport and Vancouver International Airport. A significant change in the demand environment in these markets, a significant change to airport rates and fees or significant operational disturbances due to weather or other acts outside our control would have an adverse impact to our operations and financial results.

As we have expanded our use of partnership agreements with other airlines our financial results, network and system integration and guest experience will become more sensitive to the effectiveness of our interline and code sharing arrangements.

We continue to expand our network through interline and codeshare partnerships with other airlines around the world. As our partnerships continue to mature and grow we expect to see a larger volume of traffic being exchanged between us and our partners resulting in a larger impact to our financial results and an increased reliance on our network and systems integration with our partners. Consequently, weaker traffic coming from our partners or unexpected costs or technical issues with our partner network and systems could have an increasingly adverse effect on our operations and financial results.

Our guest experience is also increasingly subject to variation as our guests increase their travel on our partner airlines. This could have an adverse effect on our business and financial results if our guests perceive a lower quality experience on our partners.

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WestJet 2014 Annual Information Form

We are dependent on single aircraft and engine suppliers for our Boeing 737 NG aircraft and separate single aircraft and engine suppliers for our Bombardier Q400 aircraft. Any interruption in the provision of goods and services from these suppliers, or other significant third party suppliers, as well as mechanical or regulatory issues associated with their equipment, could have a material adverse effect on our business, operating results and financial condition.

We secure goods and services from a number of third party suppliers. Any significant interruption in the provision of goods and services from such suppliers, some of which would be beyond our control, could have a material adverse effect on our business.

We are dependent on Boeing as supplier for our Boeing 737 NG aircraft, we are dependent on Bombardier as supplier for our Bombardier Q400 aircraft and we will be dependent on Boeing as supplier for our Boeing 767 aircraft. If we were unable to acquire additional aircraft from these suppliers, or if they were unable or unwilling to provide adequate support for their products, our operations would be materially adversely affected. If either of the suppliers was unable to adhere to its contractual obligations in meeting scheduled delivery dates for our aircraft, we would be required to find another supplier of aircraft to fulfill our growth plans. Acquiring aircraft from another supplier would require significant transition costs and, additionally, aircraft may not be available at similar prices or received during the same scheduled delivery dates, which could adversely affect our business, operating results and financial condition. In addition, we would be materially adversely affected in the event of a mechanical or regulatory issue associated with the aircraft type, including negative perceptions from the travelling community.

We are also dependent on General Electric as the supplier of aircraft engines on our Boeing 737 NG aircraft, and are dependent on Pratt & Whitney Canada as the supplier of aircraft engines for our Bombardier Q400 aircraft and would therefore be materially adversely affected in the event of a mechanical or regulatory issue associated with our engines or if either supplier was unable or unwilling to provide adequate support for their products.

Our ability to obtain parts, materials, inventory, consumables and services from third party vendors and outside service providers on commercially reasonable terms will also impact our low cost operating structure and the loss of any such suppliers or service providers may negatively impact our business.

There are risks associated with our presence in some of our international emerging markets, including political or economic instability and failure to adequately comply with existing legal requirements.

Emerging markets are countries which have less developed economies that are vulnerable to economic and political problems, such as significant fluctuations in gross domestic product, interest and currency exchange rates, civil disturbances, government instability, nationalization and expropriation of private assets and the imposition of taxes or other charges by governments. The occurrence of any of these events in markets served by us and the resulting instability may adversely affect our business.

We continue to expand our service to Mexico, Central America and countries in the Caribbean, some of which have less developed legal systems, financial markets, and business and political environments than Canada and the U.S., and therefore present greater political, economic and operational risks. We emphasize legal compliance through a code of conduct and have implemented policies, procedures and ongoing training of employees to ensure compliance with all legal requirements. However, there can be no assurance that our employees will adhere to our codes of conduct and other policies and as such we may be subject to sanctions, investigation costs and other potential penalties and costs, which could negatively affect our business and ability to continue to operate in certain jurisdictions.

Risks relating to the airline industry

The airline industry is intensely competitive. Reduced market growth rates can create heightened competitive pressures, impacting the ability to increase fares and increasing competition for market share.

The airline industry is highly competitive and particularly susceptible to price discounting, since airlines incur only nominal costs to provide services to guests occupying otherwise unsold seats. We primarily compete with a small number of Canadian airlines in our domestic market and the same Canadian airlines and numerous U.S. and international carriers in the transborder and international markets. The emergence and growth of new low cost and ultra low cost carriers in the Canadian domestic market may result in additional competition and pricing pressures. Other airlines regularly match or price their fares below ours, potentially preventing us from attaining a share of the guest traffic necessary to maintain profitable operations.

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WestJet 2014 Annual Information Form

Our ability to successfully mitigate competitive pricing depends on our ability to operate at costs lower than that of our competitors or potential competitors over the medium to long term. Should we not be able to do this, our financial results and financial condition would be adversely impacted.

Increasing competition further is the ability of guests and wholesale travel agencies to readily shop for travel services through websites with increasingly sophisticated information on product offerings and price comparisons. The growth, popularity and sophistication of Internet distribution channels has increased the overall pricing competitiveness in the airline industry, which in turn, reduces overall yield and can negatively impact revenues and profitability if these price reductions cannot be offset by sufficient increases in load factor and cost saving initiatives.

The proximity of several U.S. airports in cities close to the Canadian border has also presented an additional challenge for us. Higher taxes and fees for guests departing from Canada travelling to the U.S. has redirected appreciable guest traffic away from Canadian airports. Low-cost and ultra-low cost carriers based in the U.S. have and may continue to increase their capacity at these airports to attract Canadian-originating, price-sensitive, leisure guests.

Any major safety incident involving our aircraft or similar aircraft of other airlines could materially and adversely affect our service, reputation and profitability.

A major safety incident involving our aircraft during operations could cause substantial repair or replacement costs to the damaged aircraft, a disruption in service, significant claims relating to injured guests and other parties and a negative impact on our reputation for safety, all of which may adversely affect our ability to attract and retain guests. We have an Emergency Response Plan in the event of an incident occurring.

An air carrier’s liability is limited by applicable conventions, including the Montréal and Warsaw Conventions. Any changes to these or other conventions or treaties could increase our potential liability to guests.

We carry insurance similar to other scheduled airlines operating in the North American market. While we believe our insurance is adequate, there can be no assurance that such coverage will fully protect us against all losses that we might sustain, which could have a material adverse effect on our results of operations. There is no assurance that we will be able to obtain insurance on the same terms as we have in the past.

There is a possibility that a significant terrorist attack, pandemic or geological event could have a material impact on our operations, which could also negatively impact the insurance market and our ability to obtain coverage at current terms.

There is a risk that the Government of Canada may not continue to provide indemnity for third party war risk coverage, which it currently provides to certain air carriers, including WestJet. In the event that the Government of Canada does not continue to provide such coverage, such coverage is now available to us in the commercial markets, but the costs are currently undetermined.

General and macroeconomic conditions may adversely affect our business, operating results and financial condition, especially in markets where we have a significant presence. Weaker economic conditions can lead to a reduction in discretionary spending and a corresponding decrease to our bookings and the price our guests are willing to pay.

Our business is sensitive to changes in economic conditions, particularly as it affects discretionary spending for leisure travel, the larger proportion of our total traffic compared to business guests. Short-haul guests have the option to replace air travel with surface travel while business travellers may use more cost effective measures such as teleconferencing. Weaker economic environments place a greater amount of pressure on our pricing and if we are not able to operate at a competitive and profitable price level, we will experience adverse effects to our operations, financial results, financial condition and future growth plans.

Terrorist attacks or military involvement in unstable regions may harm the airline industry.

The airline industry experienced a decline in guest traffic and revenue and increased security and insurance costs resulting from past terrorist attacks and threats. Any future incidents causing a heightened concern over potential terrorist attacks could cause a decrease in guest traffic and yields, and an increase in security measures and related costs for the airline industry generally. Increasingly restrictive security measures, such as those relating to the content of carry-on baggage, guest identification document requirements, and guest screening procedures could have a material adverse effect on guest demand for air travel and on the number of guests traveling on our flights. It could also lead to a substantial increase in insurance,

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WestJet 2014 Annual Information Form airport security and other costs. Any resulting reduction in guest revenues and/or increases in costs, including insurance, security or other costs could have a material adverse effect on our business, results from operations and financial condition. Additional terrorist attacks would likely have a significant negative impact on our business and the airline industry. Should such an attack occur in Canada, the adverse impact could be material.

Government intervention, regulations, rulings or decisions rendered that impose additional requirements and restrictions on operations could increase operating costs or disrupt our operations.

The airline industry is subject to extensive laws relating to, among other things, airline safety and security, provision of services, competition, environment and labour concerns. Government entities such as Transport Canada, the Competition Bureau, the Canadian Transportation Agency, and other domestic or foreign government entities may implement new laws or regulatory schemes, or render decisions, rulings or changes in policy that could have a material adverse impact on the airline industry in general by significantly increasing the cost of airline operations, imposing additional requirements on operations or reducing the demand for air travel.

Laws relating to data collection on guests and employees for security purposes and counterbalancing privacy legislation have increased costs of operations. Any material changes that add additional requirements to collecting, processing and filing data with, or otherwise reporting data to, government agencies may adversely impact our business.

The increase in security measures and clearance times required for guest travel could have a material adverse effect on guest demand and the number of guests travelling on our flights and, in turn, have a negative impact on our business.

Many aspects of airlines’ operations are subject to increasingly stringent environmental regulations, and growing concerns about climate change may result in the imposition of additional regulation particularly with respect to greenhouse gas emissions. Numerous jurisdictions around the world have implemented or announced measures to penalize for greenhouse gas emissions as a means to deal with climate change. Certain of these measures cover the airline industry or may do so in the future. The impact to us and our industry from such actions is likely to be adverse and could be significant, particularly if regulators were to conclude that emissions from commercial aircraft cause significant harm to the upper atmosphere or have a greater impact on climate change than other industries. We may be directly exposed to such measures, which could result in additional costs that could adversely affect our business. We may not be able to recover the cost of compliance with new or more stringent environmental laws and regulations from our guests, which could adversely affect our business.

Concerns about the environmental impacts of air travel and tendencies towards “green” travel initiatives where guests reduce their travel activities, could have the effect of reducing demand for air travel in Canada and abroad and could materially adversely impact our business.

Governmental fee increases discourage air travel.

All commercial service airports in Canada are regulated by the federal government. Airport authorities continue to implement or increase various user fees that impact travel costs for guests, including landing fees, navigation fees and airport improvement fees. Airport authorities generally have the unilateral discretion to implement and adjust such fees. The combined increased fees, and increases in rents under various lease agreements between airport authorities and the Government of Canada, which in many instances are passed through to air carriers and air travellers, may negatively impact travel, in particular, discretionary travel.

Our operations are affected by a number of external factors that are beyond our control such as weather conditions, local and global pandemics and third party work stoppages.

Delays or cancellations due to severe weather conditions and natural disasters decrease our aircraft utilization, which increases our costs, reduces our revenue and negatively impacts our guest experience. Increases in the frequency, severity or duration of thunderstorms, hurricanes or other severe weather events, including changes in the global climate, can also result in increased fuel consumption by flying through or avoiding such weather, which adversely affects our costs and potentially our on-time performance and guest experience.

Work stoppages or strikes by airport workers, baggage handlers, air traffic controllers and other third party workers not employed by us may also have a material adverse impact on our business depending on the severity of the service disruptions and the extent to which they cause delays, cancellations, increased costs and impact guest experience.

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WestJet 2014 Annual Information Form

A widespread outbreak of communicable disease (whether domestic or international) or any governmental or World Health Organization travel advisories (whether relating to Canadian or international cities or regions) could affect our ability to continue full operations and could materially adversely affect demand for air travel. We cannot predict the likelihood of such a public health emergency or the effect that it may have on our business. However, any significant reduction in guest traffic on our network could have a material adverse effect on our business.

PRIVACY

We are subject to privacy laws regarding the collection, use, disclosure and protection of personal information, including guest and employee personal information, including Canada's federal private sector privacy legislation, the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs the collection, use and disclosure of personal information in the course of commercial activities by a federally regulated business. We have taken steps to develop and maintain a privacy policy and related practices which are designed to meet or exceed the requirements of applicable privacy legislation, primarily focused on PIPEDA, but considering other laws as well. We believe that our privacy policy and practices comply with applicable laws.

We must receive information related to our guests in order to run our business, and our online operations depend upon the secure transmission of information over public networks, including information permitting cashless payments. This information is subject to the risk of intrusion, tampering, and theft. Although we maintain systems to prevent this from occurring, these systems require ongoing monitoring and updating as technologies change, and security could be compromised, confidential information could be misappropriated, or system disruptions could occur. We must also provide certain confidential, proprietary, and personal information to third parties in the ordinary course of our business. While we seek to obtain assurances that these third parties will protect this information, there is a risk the confidentiality of data held by third parties could be breached. A compromise of our security systems could adversely affect our reputation and disrupt our operations and could also result in litigation against us or the imposition of penalties. In addition, it could be costly to remediate.

TRANSFER AGENT AND REGISTRAR

Canadian Stock Transfer Company Inc., at its principal offices in Calgary, Alberta and Toronto, Ontario, is the transfer agent and registrar for our Common Voting Shares and Variable Voting Shares.

ADDITIONAL INFORMATION

Additional information relating to us may be found on SEDAR at www.sedar.com. As well, additional information including restrictions on voting securities, Directors’ and Officers’ remuneration and indebtedness, principal holders of securities of our Company, and securities authorized for issuance under equity compensation plans, will be contained in our Information Circular with respect to the annual meeting of shareholders to be held on May 5, 2015. Additional financial information and discussion of the affairs of our Company is provided in the financial statements and MD&A for the fiscal period ended December 31, 2014, being the most recently completed annual fiscal period, which are included in our annual report for the period ended December 31, 2014. A copy of such documents may be obtained from the SEDAR website at www.sedar.com, our website at westjet.com, or upon request from our Corporate Secretary at our address below.

Shareholders may obtain a copy of the following documents, free of charge, by contacting our Corporate Secretary at 22 Aerial Place N.E., Calgary, Alberta T2E 3J1; telephone: (403) 444-2600; or by faxing a written request to (403) 444-2604:

• our AIF, together with one copy of any document, or the pertinent pages of any document, incorporated by reference in the AIF;

• our comparative financial statements for our most recently completed financial year together with the accompanying report of the auditors and one copy of any of our interim financial statements subsequent to the financial statements for our most recently completed financial year;

• our Information Circular in respect to our most recent annual meeting.

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WestJet 2014 Annual Information Form

DEFINITION OF KEY OPERATING INDICATORS

Our key operating indicators are airline industry metrics, which are useful in assessing the operating performance of our airline.

Flight leg: A segment of a flight involving a stopover, change of aircraft or change of airline from one landing site to another.

Segment guest: Any person who has been booked to occupy a seat on a flight leg and is not a member of the crew assigned to the flight.

Average stage length: The average distance of a non-stop flight leg between take-off and landing as defined by International Air Transport Association (IATA) guidelines.

Available seat miles (ASM): A measure of total guest capacity, calculated by multiplying the number of seats available for guest use in an aircraft by stage length.

Revenue passenger miles (RPM): A measure of guest traffic, calculated by multiplying the number of segment guests by stage length.

Load factor: A measure of total capacity utilization, calculated by dividing revenue passenger miles by total available seat miles.

Yield (revenue per revenue passenger mile): A measure of unit revenue, calculated as the gross revenue generated per revenue passenger mile.

Revenue per available seat mile (RASM): Total revenue divided by available seat miles.

Cost per available seat mile (CASM): Operating expenses divided by available seat miles.

Utilization: Operating hours per day per operating aircraft.

NON-GAAP MEASURES

To supplement our consolidated financial statements presented in accordance with GAAP, we use various non-GAAP and additional GAAP performance measures. The following non-GAAP measures are used in this AIF:

Adjusted net earnings: Net earnings adjusted for the $33.2 million after-tax non-cash loss recorded in the third quarter of 2014, associated with the classification of the 10 aircraft sold to Southwest as assets held for sale in 2014.

Adjusted earnings per share - diluted: We excluded the effect of the $33.2 million after-tax non-cash loss recorded in the third quarter of 2014, related to the 10 aircraft sold to Southwest being classified as held for sale in 2014 from net earnings to calculate an adjusted diluted earnings per share.

CASM, excluding fuel and employee profit share: We exclude the effects of aircraft fuel expense and employee profit share expense to assess the operating performance of our business. Fuel expense is excluded from our operating results because fuel prices are affected by a host of factors outside our control, such as significant weather events, geopolitical tensions, refinery capacity, and global demand and supply. Excluding this expense allows us to analyze our operating results on a comparable basis. Employee profit share expense is excluded from our operating results because of its variable nature and excluding this expense allows for greater comparability.

Please refer to pages 42 to 45 of our 2014 annual MD&A, which pages are incorporated by reference herein for a further description and reconciliation of the non-GAAP and additional GAAP measures, including cost per ASM, excluding fuel and employee profit share.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This AIF contains forward-looking information as defined under applicable Canadian securities legislation, including without limitation, with respect to the following: our plan to begin daily non-stop flights from Halifax, Nova Scotia to Glasgow, Scotland beginning in May, 2015, referred to under the headings Three-year history - 2014 on page 6, History and Business Strategy on page 8 and Routes and Scheduling on page 10; our expectation that our revised WestJet Rewards Program will provide us with a larger share of frequent traveller market, referred to under the headings Three-year history - 2014 on page 6 and WestJet Rewards Program on page 13; our entry into wide-body aircraft and selecting four Boeing 767 300 ERW series aircraft initially expected to be deployed on routes between Alberta and Hawaii in order to replace the service currently

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WestJet 2014 Annual Information Form operated by Thomas Cook, referred to under the heading Three-year history - 2014 on page 6; our plan to begin flights from Calgary, Alberta to Houston, Texas and Gander, Newfoundland in the summer of 2015, referred to under heading Three-year history - 2014 on page 6; our expectation that WestJet Encore will commence service from its first Maritime destination beginning on April 15, 2015, referred to under the headings Three-year history – 2014 on page 6 and WestJet Encore on page 10; our plan to continue adding new markets and additional frequencies to our existing markets through the growth of our regional Bombardier Q400 fleet, our narrow body Boring 737 NG fleet and, for the first time in 2015, the addition of wide- body Boeing 767 300 ERW aircraft, referred to under the heading History and Business Strategy on page 8; our expectation that when we enter a new market the net effect to that market will be an overall increase in traffic, referred to under the heading Routes and Scheduling on page 10; our expectation that we will be able to establish additional profitable routes in Canada, the U.S. and internationally, referred to under the heading Routes and Scheduling on page 10; our expectation that the Boeing 767 300 ERW will enable us to explore additional overseas markets, referred to under the heading Routes and Scheduling on page 10; our plans to expand WestJet Cargo to two U.S. and two international locations in 2015 referred to under the heading Cargo on page 11; upgrades to our inflight entertainment system and features and the expected effect thereof including that our guests will be able to use their own personal electronic device to receive live and stored content streamed wirelessly from a server on board each Boeing 737 NG aircraft, that we will install USB/110 volt power outlets in new, slimmer seats on our Boeing 737 NG aircraft to enable guests to charge their devices while using the entertainment system and that we expect such upgrades to be complete in 2016 as described under the heading Inflight Entertainment System on page 12; our plan to leverage our new technologies further by bringing more easy-to-use self-service capabilities to our guests, initiating a baggage tracking feature for our guests traveling through numerous airports and continuing to enhance the reliability and availability of our critical IT airline operations systems, referred to under the heading Technology on page 15; our plan to continue to work closely with the travel industry in North America and further expand our relationship with the travel industry as we enter new international and transborder markets, referred to under the heading Travel Agents and Online Travel Agents on page 16; our expectations as to expanding our partnerships where we see the opportunity for profitable growth to destinations that complement our existing route network, referred to under the heading Airline Partnerships on page 16; our expectation that we will deliver the remaining three aircraft to Southwest in the first half of 2015, referred to under the heading Fleet on page 16; our expectations that we will purchase 65 Boeing 737 MAX aircraft and that we will take delivery of 18 Boeing Next Generation 737 aircraft and 15 Bombardier Q400 aircraft with deliveries commencing in 2015, referred to under the heading Fleet on page 16; our expectation that we have managed the risk of future foreign currency fluctuations on our debt through our ability to secure lending facilities denominated in Canadian dollars and have also managed the risk of future interest rate fluctuations through our ability to fix the interest rate on our debt, referred to under the heading Aircraft Financing on page 17; that we expect to receive financing from EDC for up to 80 per cent of the net price for each Bombardier Q400 aircraft, referred to under the heading Aircraft Financing on page 17; our plan to continue to monitor and adjust to movements in fuel prices, referred to under the heading Fuel Management on page 18; our expectation that our diversified fuel sources and strategic investments in fuel-storage infrastructure will ensure a continuous and reliable source of fuel, referred to under the heading Fuel Management on page 18; our expectation that, by accelerating the production of sustainable, Canadian-made aviation biofuel, the aviation industry can achieve further significant emission reductions that will strengthen the competitiveness of our industry so that we can continue to deliver the affordable, safe and caring service that our guests expect, referred to under the heading Fuel Management on page 18; our expectation that we will construct an aircraft hangar in Calgary that will accommodate our Q400 aircraft as well as additional office space for our WestJet Encore operations and that our needs will be accommodated by the airport authorities to the best of their ability, referred to under the heading Infrastructure on page 20; our expectation that the high standard of safety features and technologies already present on the Q400 aircraft will be further enhanced by implementing RNP capabilities on all of our Q400 aircraft in the near future, referred to under the heading Safety on page 21; our expectation that WestJet and WestJet Encore will move in parallel with the evolution and continuous improvement of our safety culture, programs and standards, referred to under the heading Safety on page 21; the anticipated delivery of Q400 flight simulator in early 2016, at which point we will offer in house training, referred to under the heading Flight Simulators on page 23; our expectation that achieving carbon neutral growth from 2020 and reducing CO2 emissions by 50 per cent will be a challenge that will require the efforts of not only our airline but our supplier partners such as aircraft manufacturers, airports and government, referred to under the heading Environment on page 23; our plan to install additional Split Scimitar winglets on our Boeing 737 NG 800 aircraft, which design is expected to further reduce drag and fuel consumption, referred to under the heading Environment on page 23; our expectation of further fuel efficiencies and a further relative reduction in carbon emissions with the future addition of Boeing 737 MAX aircraft to our fleet, referred to under the heading Environment on page 23; our expectation that our new Boeing 737 MAX aircraft will have the Advanced Technology winglet, referred to under the heading Environment on

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WestJet 2014 Annual Information Form page 23; our expectations as to profitability within the Canadian airline industry and that we are well positioned to continue our profitable growth, referred to under the heading Industry Overview – General on page 25; our expectations as to economic outlook in 2015 and our belief that our fundamental low-cost structure and strong balance sheet position us well to weather fuel price and foreign exchange uncertainty and realize another year of profitable growth, referred to under the heading Industry Overview – Trends on page 26; our expectation that, among other things, the CTC will increase the efficiency, and reduce the overall cost, of our aircraft financing transactions, referred to under the heading Regulatory Environment – Aircraft Financing Legislation on page 28; our current plan to not issue any Non-Voting Shares or any class or series of Preferred Shares, referred to under the heading Capital Structure – General on page 31; and our expectations as to the lack of material effect upon our financial position, results of operations or cash flows of any legal proceedings to which we are a party, referred to under the heading Legal Proceedings on page 47.

Readers are cautioned that our expectations, estimates, projections and assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. With respect to forward-looking information contained within this AIF, we have made the following key assumptions:

• that we will begin daily non-stop flights from Halifax, • our expectation with respect to the installations of Nova Scotia to Glasgow, Scotland on May 29, 2015; our new inflight entertainment system, power outlets that WestJet Encore will commence service from its and slim seats is based on the assumption that the first Maritime destination beginning on April 15, current installation schedule will be successfully 2015; that we will begin flights from Calgary, Alberta executed; to Houston, Texas and to Gander, Newfoundland in • our plan to leverage our new technologies further by the summer of 2015 is based on the assumption that bringing more easy-to-use self-service capabilities to we will successfully carry-out our current network our guests, initiating a baggage tracking feature for plan; our guests traveling through numerous airports and • that our revised WestJet Rewards Program will continuing to enhance the reliability and availability provide us with a larger share of the frequent of our critical IT airline operations systems is based traveller market is based on our internal assessment on our strategic plan for our IT operations; of how markets will react to this program; • our plan to continue to work closely with the travel • our plan to operate four wide-body aircraft on routes industry in North America and further expand our between Alberta and Hawaii is based on the relationships with the travel industry as we enter assumption that we will be able to deliver on our new international and transborder markets is based fleet plan and on the agreement with Boeing; on our strategic plan to increase our presence and brand awareness in the travel agent industry and • our expectations as to increased demand from our internal assessments of the revenue guests who would not otherwise travel or those opportunities associated with an increased presence guests who would select another airline; our and brand awareness; expectation that when we enter a new market the net effect to that market will be an overall increase • our expectations as to expanding our partnerships in traffic; and our expectation that we will be able to where we see the opportunity for profitable growth establish additional profitable routes in Canada, the to destinations that complement our existing route U.S. and internationally is based on our current network is based on our strategic network plan and approach to assessing new destinations and our profitability objectives; internal assessments of how markets will react to • our expectation that we will deliver the remaining our service and pricing; three aircraft to Southwest in the first half of 2015 is • our expectation that our entry into wide-body based on the assumption that these three aircraft aircraft will allow us to explore more overseas flying will meet the delivery requirements as outlined in is based on our ability to operate wide-body aircraft the purchase and sale agreement with Southwest; and on the agreement with Boeing; • our expectations with respect to our agreement with • our future growth plans and our plans to expand Boeing to purchase 65 737 MAX aircraft and our WestJet Cargo to two U.S. and two international expectations that we will take delivery of 18 Boeing locations in 2015 is based on our current strategic Next Generation 737 aircraft and 15 Bombardier plan and overall profitability objectives; Q400 aircraft with deliveries commencing in 2015 is

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WestJet 2014 Annual Information Form

based on our agreement with Boeing and the experience with RNP on our 737 aircraft and our executing the current delivery schedule; plan for Q400 aircraft RNP implementation;

• our belief that we will receive financing from EDC for • predictions by the Bank of Canada with respect to up to 80 per cent of the net price for each economic growth in Canada; our expectations as to Bombardier Q400 aircraft is based on the profitability within the Canadian airline industry and assumption that our agreement with EDC will remain the impediments related thereto; and our active and that EDC will be able to provide that expectations as to economic outlook in 2015 and our financing; belief that our fundamental low-cost structure and strong balance sheet position us well to weather fuel • our expectation that we will continue to mitigate the price uncertainty and realize another year of risk of movements in fuel prices is based on our risk profitable growth are based on our interpretations management policies and ongoing cost monitoring; and assessments of the economic environment in • our expectation that we will take delivery of a Q400 Canada and our internal projections of profitability flight simulator in 2016 is based on our internal going forward; assessment of current negotiations; • our expectation that the CTC will provide us with • our expectation that our diversified fuel sources and additional alternatives for aircraft financing and will strategic investments in fuel-storage infrastructure increase the efficiency, and reduce the overall cost, will ensure a continuous and reliable source of fuel is of our aircraft financing transactions is based on our based on our fuel management strategy; assessment of the effect of government legislation or policy and what effect, if any, it will have on our • our expectation that, by accelerating the production operations and capital structure; of sustainable, Canadian-made aviation biofuel, the aviation industry can achieve further significant • our expectation that we will not issue any Non- emission reductions that will strengthen the Voting Shares or any class or series of Preferred competitiveness of our industry so that we can Shares is based on our current capital structure continue to deliver the affordable, safe and caring is plans and objectives; and based on our current strategy; • our expectations as to the lack of material effect • our expectation that the high standard of safety upon our financial position, results of operations or features and technologies already present on the cash flows of any legal proceedings to which we are Q400 aircraft will be further enhanced by a party is based on our review of current legal implementing RNP capabilities on all of our Q400 proceedings by management and legal counsel. aircraft in the near future is based on our past

Any forward-looking information incorporated by reference from our 2014 annual MD&A, is subject to and should be read in conjunction with the cautionary statement provided in the MD&A.

Our actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward- looking information. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits or costs we will derive from them. By its nature, forward-looking information is subject to numerous risks and uncertainties, including, but not limited to, the impact of general economic conditions, changing domestic and international industry conditions, volatility of fuel prices, terrorism, currency fluctuations, interest rates, competition from other industry participants (including new entrants and more generally in regards to capacity fluctuations and the pricing environment), labour matters, government regulation, stock-market volatility, pandemics, the ability to access sufficient capital from internal and external sources, the risks set out under the heading Risk and Uncertainties and the additional risk factors discussed in our MD&A and other documents we file from time to time with securities regulatory authorities, which are available through the internet on SEDAR at www.sedar.com or, upon request, without charge from us. The forward-looking information contained in the AIF is expressly qualified by this cautionary statement. Our assumptions relating to the forward-looking information referred to above are updated annually and, except as required by law, we do not undertake to update any other forward-looking information.

Page | 59 WestJet 2014 Annual Information Form Appendix A Audit Committee Charter Purpose

The primary purpose of the Audit Committee (the Committee) is to assist the Board of Directors (the Board) in fulfilling its responsibilities by overseeing reliable, accurate and clear financial reporting to shareholders and the establishment and maintenance of an adequate and effective system of internal controls. Consistent with this purpose, the Audit Committee encourages continuous improvement of, and fosters adherence to, the Corporation’s policies, procedures and practices at all levels. The Audit Committee’s primary duties and responsibilities are to:

(a) Serve as an independent and objective party to monitor the Corporation’s financial reporting process and internal controls over financial reporting; (b) Review and assess the qualifications, independence and audit efforts of the Corporation’s external auditors; (c) Provide an open avenue of communication among the external auditors, management, the internal auditing department, and the Board of Directors; and (d) Report regularly to the Board of Directors on significant results of the foregoing activities. The Audit Committee will primarily fulfill these responsibilities by carrying out the activities enumerated in Section 4 of this Charter.

Composition

The Audit Committee shall be comprised of three or more Directors as determined by the Board, all of whom shall be independent and financially literate in accordance with National Instrument 52-110 Audit Committees, and be free from any relationship that, in the opinion of the Board, would interfere with the exercise of his or her independent and objective judgment as a member of the Committee. Committee members may enhance their familiarity with finance and accounting by participating in educational programs conducted by the Corporation or an outside consultant.

Any member of the Committee may be removed or replaced at any time by the Board and shall automatically cease to be a member of the Committee upon ceasing to be a Director. The Board may fill vacancies on the Committee by election from among its members who are independent Directors. The Board shall fill any vacancy if the membership of the Committee is less than three Directors.

The Board or, in the event of its failure to do so, the members of the Committee, shall appoint a Chair of the Committee from among the members of the Committee.

Professional Advice

Each committee member shall have full, free and unrestricted access to management and employees and to the books and records of the Corporation. The Chair of the Committee shall have the authority to engage independent counsel, consultants or other advisors, with respect to any issue or to assist the Committee in fulfilling its responsibilities without consulting or obtaining the approval of any officer of the Corporation and the Corporation shall provide appropriate funding, as determined by the Chair of the Committee, for any advisors employed by the Committee and for ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

Meetings and Administrative matters

1. At all meetings of the Committee every question shall be decided by a majority of the votes cast. In case of an equality of votes, the Chair of the meeting shall not be entitled to a second or casting vote. 2. The Chair of the Committee shall preside at all meetings of the Committee, unless the Chair of the Committee is not present, in which case the members of the Committee present shall designate from among the members present a chair for purposes of the meeting. 3. A quorum for meetings of the Committee shall be a majority of its members, but not less than two in any event, and the rules for calling, holding, conducting and adjourning meetings of the Committee shall be the same as those governing the Board unless otherwise determined by the Committee or the Board. 4. Meetings of the Committee should be scheduled to take place a minimum of four times per year and at such other times as the Chair of the Committee may determine. Appendix A Page | 1

WestJet 2014 Annual Information Form Appendix A Audit Committee Charter 5. Agendas, approved by the Chair of the Committee, shall be circulated to Committee members along with background information on a timely basis prior to the Committee meetings. 6. The Committee may invite such officers, Directors and employees of WestJet or other subject matter experts as it may see fit from time to time to attend at meetings of the Committee and assist in the discussion and consideration of the matters being considered by the Committee. 7. The Committee will include an in camera session with independent directors only at each Committee meeting. 8. Minutes of the Committee will be recorded and maintained and circulated to Directors who are not members of the Committee or otherwise made available at a subsequent meeting of the Board. Additionally, the Chair of the Committee shall present the findings and discussions of any meeting of the Committee to the Board at the meeting of the Board which is immediately subsequent to such meeting of the Committee. Responsibilities and Duties

To fulfill its responsibilities and duties the Audit Committee shall:

1. Financial Reporting (a) Review with management and the external auditors the annual and quarterly financial statements and notes thereto and recommend to the Board for approval and public release; (b) Review with management the annual and quarterly management's discussion and analysis of financial results and operations and recommend to the Board for approval and public release; (c) Review with management the quarterly earnings press release and recommend to the Board for approval and public release; (d) Review analysis prepared by management, the external auditors and the internal audit department on significant financial reporting issues regarding accounting principles, estimates and judgments made in connection with preparation and presentation of the financial statements; (e) Review any litigation, claim or other contingency and any regulatory or government initiative that could have a material effect upon the financial position or operating results of the Corporation and the appropriateness of the disclosure thereof in the documents reviewed by the Committee; (f) Review with management and the external auditors the results of the audit and follow up on the status of previous audit recommendations; (g) Consider the external auditors' judgments about the quality, consistency and appropriateness of the Corporation’s accounting principles as applied in its financial reporting; (h) Consider and recommend to the Board significant changes to the Corporation’s auditing and accounting principles, policies and practices as recommended by the external auditors, management, or the internal audit department;

2. Internal Auditors (a) Review and approve, in consultation with the Chief Financial Officer and the Director, Audit and Advisory Services, the audit plans, activities, staffing and organizational structure of the internal audit department; (b) Review regular internal audit reports to management prepared by the internal auditing department and management’s response. Ensure an executive summary of internal audit reports is provided to the Board; (c) Review effectiveness of internal audit function, including compliance with the Institute of Internal Auditors’ Standards for the Professional Practice of Internal Auditing; (d) Consult regularly with the Director, Audit and Advisory Services without the presence of management; (e) Review the appointment, replacement or dismissal of the Director, Audit and Advisory Services; (f) Review and approve, at least every two years, the internal audit department’s charter.

Appendix A Page | 2

WestJet 2014 Annual Information Form Appendix A Audit Committee Charter 3. External Auditors (a) Review at least annually the performance of the external auditors and recommend to the Board and the Corporation’s shareholders the retention and, if appropriate, the removal of the external auditors; (b) Approve the annual audit fees to be paid to the external auditors; (c) Pre-approve any fees for non-audit services provided by the external auditor which are cumulatively and annually in excess of five per cent of the audit fee (this responsibility may be delegated to the Chair of the Committee with the requirement of reporting such pre-approvals to the Committee at the next scheduled meeting); (d) Confirm the rotation of the lead audit partner, other audit partners, and if applicable, the audit firm to the extent required by law; (e) Review and discuss at least annually with the external auditors all significant relationships the external auditors have with the Corporation to determine the external auditors’ independence and objectivity; (f) Review with the external auditors without the presence of management, any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information; (g) Review and approve, in consultation with the Chief Financial Officer and the external auditors, the audit scope and plan of the external auditors; (h) Review and approve the Corporation’s hiring policies regarding employees and former employees of the present and former external auditors of the Corporation; (i) Consult regularly with the external auditors without the presence of management, about internal controls and the fullness, accuracy and quality of the Corporation’s financial statements and the appropriateness of the accounting principles used; (j) Review any significant disagreements among management and the external auditors in connection with the preparation of the financial statements and report to the Board any significant unresolved disagreements;

4. Other Responsibilities (a) Discuss with management non-audit services greater than $100,000 performed by any accounting firm other than the external auditors (this responsibility may be delegated to the Chair of the Committee); (b) Review with the external auditors, management and the internal audit department the extent to which changes to or improvements in accounting principles and practices, previously approved by the Audit Committee have been implemented; (c) Establish procedures for the receipt, retention and treatment of complaints received by the Corporation regarding accounting, internal controls or auditing matters and for the confidential, anonymous submission by employees regarding questionable accounting or auditing matters; (d) Conduct and authorize investigations into any matters within the Committee’s scope of responsibilities; (e) Determine that adequate policies and procedures are in place to identify, mitigate, monitor and report all significant business risks on an ongoing, proactive basis; (f) Assist the Board with the oversight of the Corporation’s compliance with applicable legal, regulatory and government requirements; (g) Perform any other activities consistent with this Charter, the Corporation’s by-laws and governing law, as the Committee or the Board deems necessary or appropriate; (h) Ensure that director and officer expense account claims are reviewed at least annually and are approved in accordance with the Corporation’s established policies and processes; and (i) Confirm annually that all responsibilities outlined in this Charter have been carried out. Charter Review

The Committee shall review annually this Charter and make recommendations to the Board, of any proposed changes.

Approved, amended and ratified to: November 5, 2013

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