Westjet 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.

In this cash flow we can see that the amount of cash earnings from operating activities is higher in 2012 than in 2011. WestJet had more sales and more net income in 2012 compared to 2011. Overall in flow of cash is also higher which a positive sign is for any company. That mean the company’s operating income is higher than the sales.

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?

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)!

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

Data center adjacent to a runway, at its WestJet headquarters will cause the risk of losing data and key

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)?

WestJet Airlines is a Calgary-based discount airline founded in 1996 by Clive Beddoe, Don Bell, Mark Hill and Tim Morgan. WestJet Airline began its business with only three aircrafts. The company is now “Canada’s leading high-value, low-fare airline.” WestJet established their company based on two main factors; low-cost structure and exceptional customer service. The airline’s founders believe that in order to be able to offer fares that are 50% lower than the average for industry you need to keep your operational costs low. The way that WestJet has managed to maintain its low costs was through an exceptional organizational culture which gives authority and acknowledges employees through the decision process. “It is the culture that

In order to incorporate transformational changes, the aspect of core competency must be kept in mind. WestJet’s core values are that it is a cost-effective airline and aims at providing excellent guest service. The airline has faced many problems related to business-IT alignment and its governance structure in spite having a bunch of exceptionally talented and technically sound employees. There are managerial issues in the organization which has led to slow growth of the organization. Recommendations and suggestions on what could be done to counteract the identified issues and how to gloss the change management process to the employees is also showcased in the report. Benefits can be derived if the recommendations offered as a part of this

The rivalry amongst Canadian air carriers is intense. WestJet is in constant battle with Air Canada to provide the lowest cost air transportation to travellers both domestically and abroad. The services offered by both airlines are quite similar. Both have on-board entertainment available for passenger enjoyment, and both have similar price points. An objective way to compare the performance of both airlines is to examine the Load Factor. Load Factor is calculated using the following method:

Southwest Airlines clearly outlines their values in their corporate mission statement: The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit (www.southwest.com). This mission both describes the company 's approach to its workforce, and the customer at large. Rather than focusing on the financial side of the business, Southwest has been successful in creating an organization centered in fostering positive relationships with its employees and customers. The airline is also known for its ‘zany corporate culture ',

* Founder of founders experience in the industry/ are of high potential and with experience. All products are specially hand made and designed. The experience is due to the many years of this type of work as a hobby that had eventually seen its potential as a growing business.

Southwest Airlines (SWA) is a “passenger airline company, principally focused on offering scheduled air transportation in the U.S.” (Logistics Business Review, 2010). SWA also offers a supply chain of travel services to its passengers such as air, car, hotel, cruise and vacation packages and other services including selling credits to various business partners that include credit card companies, hotels, telecommunication companies and rental car agencies (Logistics Business Review, 2010).

happen with no advanced notice in most cases. While these are the “worst case scenarios” for

While the major airlines in the United Stated were making a lost of approximately $8 billion, Southwest was the only airline company that was profitable as well as facing a rapid grow-with a 25 percent sales increase in 1992. In 2005, Southwest was the sixth largest airline in United Stated. The success of Southwest is mainly linked to its pricing strategy, it positioned itself as a low-price, short hauls and bare bones operation.