Westjet Case Analysis Essay

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Table of Contents

Executive Summary i
Table of Contents 1
About WestJet 1
Market Share 2
Domestic 2
International 3
Market Position and SWOT Analysis 5
WestJet Key Financial Ratios 7
Accounting, Finance, Legal and Environmental Issues 8
Shareholders and Company Ownership 8
Accounting Policy and Internal Control 9
Legal 9
Environmental 11
Investor Recommendations 12
Bibliography 13

THE COMPANY AND ITS POSITION IN THE MARKET
Competitive Landscape

Markets where WestJet competes:
• Airlines
• Consumer Services
• Travel Agencies & Services
• Transportation Services
• Air Cargo Services

Direct competitors
• Air Canada
• Air Transat
• Porter Air
• Central Mountain Air

Key Financial Data 2010 2009 2008
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r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American Airlines

Strengths Weaknesses
• Current strategic plan built on four pillars o People and Culture o Guest Experience o Revenue and Growth o Costs
• Canadian based airline, support of Canadians
• Newer, more comfortable airplanes
• Numerous code-sharing partnerships
• Vertical integration with WestJet Vacations • Aggressive expansion in extremely competitive international market
• Canadian based airline may find it hard to find strong support from US and International customers
• Limited number of markets, many markets are seasonal
• Customers loyalty may be limited to fares and seat sales

Opportunities Threats
• Continual expansion in local market share
• Continual expansion of code-sharing agreements
• Expansion of WestJet Vacations to preferred vacation destinations
• Code-sharing opportunities with Asian carriers and other International carriers • New entrants with a similar business model
• Volatile fuel costs and changes in interest and exchange rates
• Weather conditions
• Acts of terrorism
• Changes in airline legislation and labor laws

TABLE 2 SOURCE:

WestJet Key Financial Ratios
5-year Financial Ratios 2010 2009 2008 2007 2006 Profit Margin 5% 9% 11% 14% 9% Return on equity 9% 15% 27% 4.85% 4.89% Debt/Total Assets 0.58 0.60 0.67 0.20 0.17 Interest coverage 3.27

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