Westjet Analysis
November 15, 2011
Company Overview Westjet, established in1996, is a low-cost Canadian airline company specializing in flights to various destinations in Canada, the United States, the Caribbean and Mexico. It is a non-union, self-run employee organization that focuses on world-class guest experience at an affordable rate. Westjet prides itself on a corporate culture that blends devoted employees with efficient service. Westjet’s business plan, since day one, has been focused on a distinct advantage over other airlines: lower costs and increased customer satisfaction. It executes this plan by investing in one type of aircraft to serve main cities in North America instead of investing in different aircrafts needed to reach all cities and communities.
Industry
Westjet operates in a very afflicted, declining industry. Because the airline industry is one closely tied with economic growth and trade it is continuously changing. In fact, twenty-eight domestic airlines have disappeared in the past twenty years due to reduced numbers. Fortunately, Westjet has found its niche in the industry. Through extensive research, Westjet determined a market segment that was seemingly unaccounted for in the airline industry: families with small children who often travel by vehicle. Westjet offered lower prices on air travel in order to present an alternative to these families. This plan took off. Today, Westjet is the second largest Canadian airline, only behind Air Canada. It is however, the most successful domestic airline and continuously growing. Westjet’s most direct competition includes Air Canada, Air Transat, Sunwing Airlines and Porter Airlines. Despite the current struggle in the airline industry, Westjet continues to grow.
Analysis Summary In order to recognize the success, growth and direction of Westjet, many aspects must be considered. A financial analysis had been conducted in order to understand the numerical progress and profit of the company.
Company Overview Westjet, established in1996, is a low-cost Canadian airline company specializing in flights to various destinations in Canada, the United States, the Caribbean and Mexico. It is a non-union, self-run employee organization that focuses on world-class guest experience at an affordable rate. Westjet prides itself on a corporate culture that blends devoted employees with efficient service. Westjet’s business plan, since day one, has been focused on a distinct advantage over other airlines: lower costs and increased customer satisfaction. It executes this plan by investing in one type of aircraft to serve main cities in North America instead of investing in different aircrafts needed to reach all cities and communities.
Industry
Westjet operates in a very afflicted, declining industry. Because the airline industry is one closely tied with economic growth and trade it is continuously changing. In fact, twenty-eight domestic airlines have disappeared in the past twenty years due to reduced numbers. Fortunately, Westjet has found its niche in the industry. Through extensive research, Westjet determined a market segment that was seemingly unaccounted for in the airline industry: families with small children who often travel by vehicle. Westjet offered lower prices on air travel in order to present an alternative to these families. This plan took off. Today, Westjet is the second largest Canadian airline, only behind Air Canada. It is however, the most successful domestic airline and continuously growing. Westjet’s most direct competition includes Air Canada, Air Transat, Sunwing Airlines and Porter Airlines. Despite the current struggle in the airline industry, Westjet continues to grow.
Analysis Summary In order to recognize the success, growth and direction of Westjet, many aspects must be considered. A financial analysis had been conducted in order to understand the numerical progress and profit of the company.
Cited: 1. Westjet Corporate Website http://www.westjet.com/guest/en/media-investors/index.shtml 2. SEDAR http://www.sedar.com/FindCompanyDocuments.do 3. Grescoe, Paul. Flight Path – How Westjet is Flying High in Canada’s Most Turbulent Industry. Wiley