INTRODUCTION
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
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West Jet managed to keep their debt to a minimum, even though they purchased its own well-used jets rather than lease new ones. Commercial flight operations began with three planes on February 29, 1996. Vancouver, Kelowna, Calgary, Edmonton, and Winnipeg were the first cities served and many more cities were added within the first year of operation (Jarvis, 2006). West Jet 's fares were often more than 50 percent less than its competition. However; services such as digital tickets, in-flight meals, frequent flier program, airport lounges, different flying classes, computer reservation systems used by travel agents were not offered. This business plan worked very well as consumers were primarily price driven and it resulted in a profit of 2.5 million in the first six months of operation. Not all was well in 1996, Canadian transport officials found West Jet 's maintenance record-keeping program inadequate and forced them to suspend operations. The suspension lasted 17 days, costing them $300,000 a day and stranding many passengers (Jarvis, 2006). However West Jet recovered quickly, in its first fiscal year they produced a profit of $36.7 million in revenues and they carried over 760,000 passengers. West Jet began operating charters in October 1997. There first client was a major tour operator which resulted in
r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American Airlines
This report was made up for the purposes for pursuing our client and make him understand why he should invest in our company. This report will contain a swat analysis, strengths and weakness, vision statement, mission statement. These are going to a sure that we has a company aren’t only advertising our strengths but we will also show our weakness and things that need to be improved. The history of WestJet and the current points will also be shown, from when WestJet was founded and too, what’s WestJet’s main focus now will be shown in this analysis for our client. Another thing west jet wants to represent is all of the financial resources and the finical information for our client and of course a company overview will be provided has well.
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.
Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its
Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.
• WestJet views its employees as its most valuable asset. Therefore, it aims to ensure that employees’ work experience is fun, challenging and rewarding. Encourages employees to interact positively with customers to try to earn repeat customers.
WestJet’s executive compensation program is administered by the People and Compensation Committee on behalf of the Board. Its executive pay practices are designed to be prudent and well-aligned with our culture and
WestJet became one of significant air transportation companies since its birth in 1996.After conquering all Canadian destination, WestJet have chance to compete in the international scene. Today it has not that many destinations outside of North America,
WestJet develop their IT operation early and force them get the lead in the aviation businesses. However, as the global economic and the change of people’s demand, the strategic plan of WestJet need to be change to follow the change of the world. Compare with other aviation business, the IT structure of WestJet is small and keeps running on their pervious operation before Smith join into the organization. There are some risks coming out if WestJet continue these IT operations.
For instance, Canada's federal government has delegated the responsibility for airports to local authorities. As a result, many Canadian airports have transformed into brighter, cleaner, and more modern facilities that have become more expensive to operate 3. Canada’s airports have spent more than $9.5 billion on improvements since 19922. According to the CEO of Transat A.T. Inc, “it costs three times as much for an airline to land in Pearson Airport in Toronto as at Charles-de-Gaulle in Paris” 2. Such high landing fees have made Pearson and other major Canadian airports less desirable landing destinations; increasing costs for airlines, and as a result, often increasing prices for consumers. Pearson Airport is West Jet’s “second-largest hub and main connection point in Eastern Canada” and almost half of its destinations are to Canadian airports2, Such high costs of landing in major Canadian cities require that WestJet finds more ways to cut costs and remain the cost leader in its industry.
Not capitalizing on the share that they have. WestJet could be charging more for fares, albeit at the risk of losing the loyalty of their guests.
Air Canada’s early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards their staff felt underappreciated. Their customers felt as though their feedback wasn’t being heard but in the eyes of Air Canada as long as their business was expanding, they were satisfied.
➢ Unique Corporate Culture: The main competitive advantage that WestJet had was their unique culture. Even the executives and pilots help the customer whenever necessary; encourage employees to share suggestions for improvement. They maintained the policy of Care for People.
JetBlue has been one of the most successful airlines since it first entered the industry in December of 1999. Founder, David Neeleman, set out to succeed by offering low-cost air travel in hopes of perpetuating his services to as many people as he could across the US. He was very adamant about having a very customer oriented business that catered to the needs of all. In doing so he wanted to emphatically promote his obligation to safety, caring, integrity, passion, while allowing the customers to have fun while traveling. There motto helps portray Neeleman’s belief stating “You Above All”. His primary goals had been to follow Southwest’s objectives of offering low rates to customers, focusing on customer’s needs and comforts while distinguishing itself with their amenities. Neeleman’s other goal was to establish his low-cost leadership strategy by concentrating his airline in a large popular metropolitan area that already is already correlated with high airfare (Peterson, 2004). He then began operating based out of the New York metropolitan area at John F. Kennedy International airport with his secondary locations in Washington D.C., Boston and Los Angeles.
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.