Case Study West Jet Airlines

WestJet Airline was founded in 1996 by Clive Beddoe and a team WestJet airlines were started with the philosophy that just because you pay less doesn’t mean you should get less.

Westjet came into the air travel business in 1996, offering fares up to 50% cheaper than there competition. They strived for an excellent relationship between the employee and the employer by creating an ecstatic, friendly work environment. Westjet is one of the most successful airlines as it did start out with the most start up capital any airline has ever experienced, as well as keeping their debt to a minimum. With such commercial success, Westjet was questioned with their actions towards Air Canada as one of the founders employed a travel agent to find out certain information about Air Canada which gave them a competitive advantage so they knew exactly what price would be a noticeable difference, which would attract

United Airlines and Continental Airlines, two major airlines companies, agreed to a merger that would create the world’s largest airline. Such important deal has a lot of problems to be dealt with, from technical, for example how to put the companies databases together, to more fundamental, like how the company should be ruled.

JetBlue is an American airline company whose headquarter is located in the New York City. They are a low-cost airline who is rapidly growing in the Unites States. According to Wikipedia, “David Neeleman founded the company in February 1999, under the name "NewAir.” Many of their approach come from Southwest Airlines include low prices airfares. However, they differ in the amenities offered to the customers.

WestJet is a Canadian low-cost carrier, which was founded in 1996 and headquartered in Calgary, Alberta. WestJet is Canada’s second largest airline with high per cent of the domestic market. It provides scheduled and charter air service to 86 destinations in Canada, the United States, Mexico, the Caribbean and Central America. WestJet operates an average of 425 flights and carrying over 45,000 passengers per day. In 2012, WestJet carried 17,453,352 passengers, making it the ninth-largest airline in North America by passengers carried.One of WestJet’s main values is to be positive, passionate and entertaining in everything they do which make them different from any different airlines.

The airline industry rides a train that is propelled by many different factors, such as the state of the economy, jet fuel prices, people’s view of the industry itself and the image of the individual airline entity. Founded by Clive Beddoe, Don Bell, Mark Hill and Tim Morgan, WestJet has been riding a different train from the get-go since its inauguration in 1996,. Nobody would have thought that a bottom-up management structure in an airline business would work so well. The culture that they have built is now part of their brand and they are proud of it.

I think their model of low operating costs, between smaller hubs, with only one kind of airplane was a great strategy to get them where they are now. However, I can in vision in the next 10-15 years WestJet stepping up to include a larger airplane that can travel into more foreign destinations because long-haul flights generate the most amount of money.

WestJet airlines was founded in 1996 by Clive Beddoe, a successful Albertan entrepreneur who was desperate to find a solution to the rising costs of business travel expenses (WestJet, n.d.a). Beddoe combined a small group of Canadian business savvy investors with a regional airline President and together they sought the experience of successful industry leader David Neeleman, founder of Morris Air and developer of the One Skies passenger reservation system (Pederson, 2001). Often referred to as the Southwest Plan, WestJet’s original business model was simple; offer passengers a superior experience at a price that was comparable to driving or taking the bus. This was easily accomplished by operating one type of aircraft, removing excess frills, hiring employees whose personality fit a specific type, and by developing a company culture that focused on safety and taking care of the guests (WestJet, n.d.a.).

WestJet Airlines is a Canadian based airline that offers low-cost airfares coupled with excellent customer service. The founders of WestJet Clive Beddoe, Don Bell, Mark Hill, and Tim Morgan successfully established its original headquarters in Calgary, Canada in 1996. Through researchingother successful airlines throughout North America, the founders were highly inspired by the low-cost carriers of Southwest Airlines. As a result, the founders contacted David Neeleman, president of Morris Air, which later become apart of Southwest Airlines for help in developing a business plan for WestJet.

WestJet Airline is a Canadian economical airline that is publicly traded on the Stock Exchange of Toronto. Established in 1996, WestJet is presently the second largest Canadian Carrier. The airline operates in about 70 cities located in Mexico, North America, and the Caribbean. Further, WestJet employs more than 8000 employees. The head office of the airline is in Calgary. Munro and Khan (2013) claim that WestJet Airline operates a standard of 420 flights and manages to carry 40000 passengers on a daily basis. WestJet’s operating model replicates the Southwest Airline model that has an exclusive fleet of Boeing 737s. In 2010, WestJet (2013) mentions that the company’s fleet comprised on 91 aircraft.

This article discusses the growth and success of Canadian airline WestJet. The company was established in 1994 by Clive Beddoes who stumbled upon an opportunity to collaborate with fellow businessmen: Tim Morgan, Don Bell, and Mark Hill to create a cost-effective and very profitable airline in western Canada. Together they achieved a concept of an airline that would be low-fare but rich in culture to maintain its integrity. With the help of David Needleman, president of Morris Air, the team developed a business plan and visualized what is now WestJet Airlines. They built an integrative, financial model and business plan which included only three aircraft and features of being: direct, cost-effective, and short-haul. Within 30 days of constructing a business plan the needed capital was raised and the foundation for WestJet airlines kicked off. In 1995 WestJet was established and began rapidly integrating into eastern Canada.

JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.

This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost

With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.

The project requires the student to carry out a research, analysis and discussion on how a Singapore listed company can access to the country’s financial system and how it benefits the company in achieving its business objective. The research will cover the various types of financial services offered by financial intermediaries whom the corporation can access to.