JetBlue and WestJet

A major operational cost saving involved entering the major air industry with a new fleet of Airbus aircraft. Although European made, Airbus was chosen due to their fuel efficiency, easier maintenance, and five-year warranty (Gajilan, 2003). Neeleman realized that quick turnaround time was a crucial factor in maximizing profits by simply keeping the new planes in the air longer than the competition. Because JetBlue worked largely out of secondary airports (Midway vs. O’Hare), its flights avoided more

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 is a Calgary-based discount airline founded in 1996. Starting with only three aircrafts in 1996, the company is now “Canada’s leading high-value low-fare airline.” The management of WestJet Airlines assumes that the success of the business is anchored in the culture of the corporation and the welcoming service provided to its customers. Beddoe, the president and the CEO of WestJet, is proud of the airlines performance and the customer service it offers. He believes that the corporate culture was the key to success and the company’s attainment. WestJet’s culture is very entertaining, hassle-free, unperturbed, and relaxed. The ratings of the customer satisfaction are higher than those of the other airlines. Top management

Southwest Airlines and United Airlines have been direct competitors in the airline business for a number of years. As time has passed, we have seen Southwest take a more Servant Leadership minded approach, while United decided upon a more traditional style of Leadership. From their mission statements, along with reviews from flyers and profitability, to the overall culture of the companies, we look to see how these two airlines compete, and which one comes out on top.

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.

The power of airline passengers is relatively low. Air travel is not easily substituted in Canada. There are alternatives, such as rail and road transportation, but these are simply not a viable means of travel in many cases. Travellers have become increasingly price sensitive though, and there is little cost in switching airlines. Loyalty programs are employed by both WestJet and Air Canada, but a study by Deloitte conducted in August 2013 concluded that only 14% of travellers surveyed are completely loyal to their preferred brand.

WestJet’s low-cost pricing advantage mainly attracts price-sensitive consumers within the middle to upper-middle class. These are individuals who can’t afford the more luxurious flights and/or those who are just looking for a cheap but comfortable ride to their next destination. Travelers can conveniently purchase airfare through WestJet’s website directly, through global travel websites (i.e. Expedia, Trivago), or through travel agencies. Within the airline industry, the main concern of consumers is the price as many airlines already offer similar features

The biggest issue with Air Canada is their need to always innovate to be the best airline that they can be and connect Canada to the world. Some of the major factors that play a part in Air Canada’s problem is that they are always in competition with any company that provides transportation whether it be an airplane or transportation company. They strive to uphold their status as the leading innovator in the field through the use of Information Technology systems. Another factor that plays a part of Air Canada’s problem is that 95% of their IT services are now being outsourced while only 5% of the services remain in-house. This could result in major issues which will be discussed later in the analysis. Another problem that arises is that the contracts that are being made with companies that do not fully benefit Air Canada. They require them to share information with their competitors which hurts them in the long run and challenges their core competencies. The key to sustaining the competitive

The objective of this research paper is to describe how the 21St Century utilized concepts , such as corporate social responsibility in relation with triple bottom line, to shift the airline industry into becoming a forward-thinking industry embedding sustainability into their core of business operations to create shared value for business and society. I will define corporate social responsibility and areas of social responsibility in the airline industry at the beginning of the paper and proceed with how it ties into the bottom line concept. Next, I will give brief examples of airlines such as JetBlue Airways, and British Airways how they apply these concepts into their mission. In conclusion, I will express my own thoughts about how different generations based their purchases and career decisions on these concepts.

The airline needs to find innovative ways of improving its technology by keeping up to date with the current trends, online chats to assists consumers, permitting consumers to utilise data whilst on air. A proper marker research needs to be conducted to establish the preferences of the consumers. Employees need to be trained on technology upgrades.

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

The technology to communicate between the airlines is available and the customers do expect that the airlines share their passenger information for connecting flights.

WestJet faced problems in transferring files containing data on transactions for customers who had already purchased their tickets before the system upgrade. They could not access the passenger bookings and this caused delays because it took time to transfer the files. Another problem they faced was angry customers who flooded their site and

Because what JetBlue did was stop thinking about looking right customers for their business, this way they devoted himself to transform the company to focus on its customers, so used all the basics of marketing which seeks that customers have an important value in the company so that they can better understand consumers and achieve satisfy in the best way, this is the ideology that drives this company, the most important thing for them is that the customer are happy with JetBlue and does not change the company for any reason, and then for the next plans they came back.

Fast, user-friendly online reservation system by facilitating e-ticketing and reducing staffing requirements at telephone reservation centers and airport counters. (Kuzmicki, 2009)