Air Canada Vs Westjet Case Study
Brief Description of Air Canada and WestJet Airlines
Air Canada is the largest airline in Canada, with its headquarters located in Montreal, Quebec. Formally named Trans-Canada Airlines, the airline was established in 1936 by Canadian federal government. However, in 1988, Air Canada was privatized due to the deregulation of the Canadian airline market. Air Canada serves over 38 million passengers annually and provides direct passenger service to more than 190 destinations on five continents.
WestJet is the second largest airline in Canada based in Calgary, Alberta, providing flights to 80 destinations across Canada, the United States, Mexico, and the Caribbean. It was founded in 1996 as a low-cost carrier, immediately differentiating themselves from the other competitors in the airline industry. The overarching philosophy behind WestJet is “just because you pay less for your flight, does not mean you should get less”.
Ownership and Governance Arrangements
Air Canada and WestJet are both corporate governances. However, their ownerships are completely different. WestJet focuses on employee ownership. Employee ownership can be defined as “allowing …show more content…
The vision of Air Canada is “building loyalty through passion and innovation.” In my opinion, this vision statement is considered weak because this statement does state where Air Canada is going and what is can become in the future, nor does it clarify the long-term direction of Air Canada and its strategic intent. Contrary, the vision of WestJet is “by 2016, WestJet will be one of the five most successful international airlines in the world providing our guests with a friendly and caring experience that will change air travel forever.” Thus, in my opinion, WestJet has a strong vision statement, as it sets a clear and compelling goal that served to unite WestJet’s
Air Canada is the largest airline in Canada, with its headquarters located in Montreal, Quebec. Formally named Trans-Canada Airlines, the airline was established in 1936 by Canadian federal government. However, in 1988, Air Canada was privatized due to the deregulation of the Canadian airline market. Air Canada serves over 38 million passengers annually and provides direct passenger service to more than 190 destinations on five continents.
WestJet is the second largest airline in Canada based in Calgary, Alberta, providing flights to 80 destinations across Canada, the United States, Mexico, and the Caribbean. It was founded in 1996 as a low-cost carrier, immediately differentiating themselves from the other competitors in the airline industry. The overarching philosophy behind WestJet is “just because you pay less for your flight, does not mean you should get less”.
Ownership and Governance Arrangements
Air Canada and WestJet are both corporate governances. However, their ownerships are completely different. WestJet focuses on employee ownership. Employee ownership can be defined as “allowing …show more content…
The vision of Air Canada is “building loyalty through passion and innovation.” In my opinion, this vision statement is considered weak because this statement does state where Air Canada is going and what is can become in the future, nor does it clarify the long-term direction of Air Canada and its strategic intent. Contrary, the vision of WestJet is “by 2016, WestJet will be one of the five most successful international airlines in the world providing our guests with a friendly and caring experience that will change air travel forever.” Thus, in my opinion, WestJet has a strong vision statement, as it sets a clear and compelling goal that served to unite WestJet’s