Air Canada And Westjet
Air Canada and WestJet
Operations Management Case
September 25, 2010
Presented by:
Air Canada
For an airline, what are the advantages of having new modern planes? What are the disadvantages?
One advantage of having modern planes is that the new technology can result in subsequent cost savings due to better fuel efficiency, faster response times and ease of automated processes. Fuel is the greatest cost for airlines. A further advantage in line with technology is the ability to provide passengers with different amenities such as internet access and other in-flight services that passengers will be agreeable in paying.
Better technology is allowing planes to remain in the air for longer and this allows an airline to expand into international destinations. Superior safety …show more content…
WestJet focus is on providing low-fare air travel across Canada that is geared to people who chose to fly rather than drive, as long as they are offered low fares.
Winning operational strategies include having just one type of plane being used in conjunction with basic in-flight single class service, no connecting flights and no baggage transfers. WestJet defined “less service for less money” by providing fewer amenities for lower fares instead of decreasing customer service.
To reinforce their award winning customer services, WestJet aligned its objectives with its workforce objectives: it introduced an employee share purchase program allowing employees to allocate twenty percent of their salary, matched dollar for dollar by WestJet, into purchasing WestJet shares. Productivity, job satisfaction and employee empowerment rose as well.
Determine if any of the actions described in the case relate to any of the nine decision-making categories of operation strategy, and identify which
Operations Management Case
September 25, 2010
Presented by:
Air Canada
For an airline, what are the advantages of having new modern planes? What are the disadvantages?
One advantage of having modern planes is that the new technology can result in subsequent cost savings due to better fuel efficiency, faster response times and ease of automated processes. Fuel is the greatest cost for airlines. A further advantage in line with technology is the ability to provide passengers with different amenities such as internet access and other in-flight services that passengers will be agreeable in paying.
Better technology is allowing planes to remain in the air for longer and this allows an airline to expand into international destinations. Superior safety …show more content…
WestJet focus is on providing low-fare air travel across Canada that is geared to people who chose to fly rather than drive, as long as they are offered low fares.
Winning operational strategies include having just one type of plane being used in conjunction with basic in-flight single class service, no connecting flights and no baggage transfers. WestJet defined “less service for less money” by providing fewer amenities for lower fares instead of decreasing customer service.
To reinforce their award winning customer services, WestJet aligned its objectives with its workforce objectives: it introduced an employee share purchase program allowing employees to allocate twenty percent of their salary, matched dollar for dollar by WestJet, into purchasing WestJet shares. Productivity, job satisfaction and employee empowerment rose as well.
Determine if any of the actions described in the case relate to any of the nine decision-making categories of operation strategy, and identify which