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West Jet Case Study

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West Jet Case Study
CASE APPLICATION
TURBULENT FLIGHT PLAN

OVERVIEW:

Air Canada is Canada's largest airline and flag carrier. The airline had founded in 1937. The company is the world's 11th largest passenger airline by fleet size. The Chairman of Air Canada is David Richardson and the President and CEO is Montie Brewer. Air Canada operates flights to 99 destinations in Canada, the USA, Latin America, Europe, Australia and Asia. Combined with its Jazz network, the airline serves 163 destinations worldwide.

In 1996, a new company WestJet is formed. West Jet Airlines Ltd is a Canadian low-cost airlines that flies to most major cities in Canada and serves destinations in the United States, Mexico and the Caribbean. WestJet is the second-largest Canadian carrier behind Air Canada (third-largest including Air Canada Jazz). The present CEO, President of WestJet Airlines is Sean Durfy.

Before West Jet 82% of the market share held y Air Canada. The legislative move was promoted by Air Canada’s competitive attack on West Jet Airlines for moving into markets in eastern Canada. The strategic decision had made by C. Smith, President of West Jet to take the company national. West Jet's fares are an average of 40 percent lower than Air Canada Airlines. West Jet flies one class of jet, the Boeing of 737, which minimizes pilot training, maintenance costs, and gate turnaround time.

[pic][pic] A West Jet Boeing 737-700 Air Canada Boeing 767-300

Q1 WHAT COMPETITIVE ADVANTAGE(S) DO YOU THINK WESTJET HAS? WHAT COMPETITIVE ADVANTAGES DO YOU THINK AIR CANADA HAS? EXPLAIN YOUR CHOICES.

Ans COMPETITIVE ADVANTAGES OF WESTJET:

In our choice the competitive advantages of West Jet are:

➢ West Jet's fares are 40 percent lower than Air Canada. ➢ West Jet ticket sales through the internet, which now accounts for about 11 % of its tickets sold. ➢ It flies one class of jet, the Boeing 737, which

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