West Jet Airlines Case Analysis On February 29, 1996, WestJet Airlines came to life. They became the face of low-cost, short-haul, point-to-point airline in Western Canada. The organization began when entrepreneur Clive Beddoe, president of the Hanover Group of Companies purchased an aircraft for personal use. Beddoe later made his aircraft available to other business people through Morgan Air, owned and operated by Tim Morgan. Tim Morgan, along with Calgary businessmen Don Bell and Mark Hill found an opportunity to start an airline. They all reached out to David Neelman, who was president of Morris Air and asked for assistance with writing the business plan for WestJet. They joined forces and WestJet Airlines came to life. Each of the …show more content…
Smith was used to working with hostile unions and tried to demonstrate that in a different culture. This behavior later led Smith to suddenly resign in September of 2000. As stated before, WestJet’s culture and their employees are one of their main reasons for their great success. If not careful, this could be the cause of their downfall. WestJet Airlines seem to connect their culture with their hiring process. West Jet is known as a fun, enthusiastic, and playful environment. During the hiring process, they look for employees who have a great sense of humor and are new to the airline field. Often employees play jokes on passengers and amongst each other. As WestJet continues to expand, they will not be able to keep their culture as is.
WestJet is known for their nice and playful environment. They have even stated that employees tend to play jokes on one another, this could lead to future complications. For example, the vice president of the airlines would send the new employees to get the keys of the airplane, knowing the airplane does not need keys to fly. This is all clean fun, however, what 's not to say that employees might make a joke that is out of line taking into consideration they are new to this field. For example, the legal case of Fuerschbach vs. Southwest Airlines where a prank was taken way out of line. Southwest was also known for their fun-loving spirited company, just like WestJet. The employees were also known to play jokes on one another. One day,
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.
“Customer care” is what WestJet Airlines says in their ads. WestJet entire corporate culture has been built around caring for their customers, by providing a great
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 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
• 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 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.
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.
WestJet operates in a non-union environment which means they have lower labour costs and a relatively low risk of labour disputes.
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.
Westjet Airlines has achieved considerable success in the past few years, winning estimable rewards related to its service, gaining loyal customers and, of course, increasing market shares. It devotes to a “high-value, low-fare airline” which provides humanized services to customers. Another pride of Westjet is its IT, which designs all systems in-house and is operated based on the business demands.
Organizations like the Southwest Airlines all have a culture, which demonstrates how the organization works and usually acts as its motivational tool. An organizational culture is important to the organization, as it is the major element in helping attain the organization's goals and objectives. Cultures in organizations are vast, with different organizations adopting their own type of culture. The examples of culture include; club cultures, where employees of the organization are assisted to fit into the culture. This is the most common type adopted by most organizations. There is also the academy culture, where the organization keeps its most skilled employees. The skills are developed by the company and an example of the organization that mostly uses this culture is the large corporations like the Southwest Airlines. The base team culture is designed to maintain high skilled employees, as these employees have great skills and can work for many other organizations. Other organizations have cultures that are highly discouraged, like the fortress culture, where employees hardly know their fate, and can be laid off any time. These organizations often undergo changes through reorganization, and only the specialized skilled people have chances for positions in the organization. Despite these many types of the cultures, management should ensure culture that is reputable, and