Westjet Case Analysis Essay

2197 WordsAug 15, 20119 Pages
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…show more content…
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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