52 • CASES IN ORGANIZATIONAL BEHAVIOR
revisited the vision statement. The upcoming weeks would be crucial because Matthew wondered if the still-nascent state of OP4.com 's culture at its Vancouver head office would survive this restructuring.
NOTE
1. Source: Jupiter Communications, 2000.
WESTjET AIRLINES (A): THE CULTURE
THAT BREEDS A PASSION To SuccEED
Prepared by Ken Mark under the supervision of Professor Gerard Seijts
Copyright© 2001, lvey Management Services
INTRODUCTION
It was April 17, 2001, and WestJet 's market capitalization had just surpassed that of Air
Canada 's, the country 's leading airline. "We 're in the hospitality business and our culture is everything to us," stated Don Bell, co-founder and senior vice-president
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In June 1996, the airline purchased its fourth
Boeing 737 aircraft and added service to the new market of Regina. In August that year, Saskatoon was added. In June 1997, Abbotsford-Fraser
Valley was added, making WestJet the only scheduled carrier to operate at that airport. March 1999 saw the addition of the two new destinations of
Thunder Bay and Prince George, and in September
1999, WestJet added Grande Prairie to its service area. WestJet met a major business goal when, in
July 1999, it completed its initial public offering of 2.5 million common shares. The share price
at closing was Cdn$1 0. It was an exciting day for all WestJetters, representing the achievement of a major goal and raising the necessary capital for expansion of the company in the coming years. The capital raised from the offering,
Cdn$25 million before post-closing adjustments, would be used for the purchase of additional aircraft, as well as the building of new head office and hangar facilities in Calgary, in order to meet the needs of the company 's expanding workforce.
In 1999, unprecedented changes and restructuring were seen in the airline industry in Canada
(e.g., plans for a merger between Canadian Airlines and Air Canada, small carriers that discovered
Over 35 years ago, Rollin King and Herb Kelleher decided to create a different type of airline. They began with the simple notion: If you get your passengers to their destinations when they want to get there, on time and at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. They were right (Southwest Airlines, 2004)!
Westjet, established in1996, is a low-cost Canadian airline company specializing in flights to various destinations in Canada, the United States, the Caribbean and Mexico. It is a non-union, self-run employee organization that focuses on world-class guest experience at an affordable rate. Westjet prides itself on a corporate culture that blends devoted employees with efficient service.
Data center adjacent to a runway, at its WestJet headquarters will cause the risk of losing data and key
r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American 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.
Stereotypes are a common tool used to judge others before fully understanding a situation or considering different points of view. Writers often use or create these stereotypes to get their own point across. Mencken, a writer that covered the Scopes trial, is an example of how stereotypes of southerners such as the Tennesseans, were used to compromise the outlook on how the trial was conducted and portrayed. Evidence shows that urban writers, such as Mencken himself, unfairly portrayed Tennesseans throughout the Scopes trial by insulting their intelligence and their overall demeanor.
WestJet launched in 1996, originally based on the Southwest low-cost-carrier model, and grew rapidly to
In July 1999 WestJet completed its initial public offering of 2.5 million common shares which was the turning point of WestJet’s future developments. In December 1999, WestJet announced that they are extending their successful low-fare airline across Canada. During March and June 2000, the company added services to Eastern
How has SWA (a) responded to the “Shuttle By United” initiative (half page 5 points); and (b) what assessments can be made about SWA’s market and financial position on competitive routes based on 1994 4th quarter results (half page 5 points)?
The last part of industry analysis is about rivalry. In aviation industry, the rivalry is very drastic. This industry develops slowly or even stagnant and it is mature in recent period. There is no new company established in developed areas and also there is no major firm going broken. Most of survivals are big companies. All of them have abundant capital and ample operating experience and hold a relatively fixed percentage of market. In long run, the number of airline companies does not change. In another word, the cake is divided up. However, people define business with a ward, for profit. If airline companies want to share more percentage of market, they must seize other companies’ part.
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.
Air Canada benefited from a slow growing economy, as Canadians had the spending money for travel. The airline has had record profits for two straight years, with a revenue of $531 million in 2014. In a recovering economy, interest rates will rise, and middle-class families will have less money for travel, which should mean lower profits. However, the changing economic climate greatly benefits Air Canada. Lower fuel prices means profit windfall; it is predicted the airline's predicting pre-tax profit could rise 50% to surpass $1 billion. The low Canadian Dollar has also brought a surge of international travellers to Canada for cheaper holidays. Furthermore, they are expected to gain a $50-$75 million profit, with their $25 check-in fee. This
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.
1. When Cheryl Smith, the new CIO, arrived at WestJet she was asked by the CEO to advise whether the company had adequate IT or not. What aspects did she assess? What is your view on the strengths and weaknesses of this assessment? What is your view on her resulting priorities?
happen with no advanced notice in most cases. While these are the “worst case scenarios” for