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West Jet

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WestJet Ltd.
Business History
West Jet Airlines is the second largest airline in Canada, the first being Air Canada. The Airline has its headquarters in Calgary, Alberta, Canada. It is run by Gregg Sarektsky, who is the CEO and President of the airline and Clive Beddoe, who is both the Chairman of the board of directors and a co-founder of the Airline. West Jet Airlines employs roughly 10,000 employees as of August 2014. The Airline was founded by Clive Beddoe, David Neelman, Mark Hill, Tim Morgan and Donald Bell. WestJet Airlines is a non-unionized company and is not part of any other airline alliance. It however has a subsidiary- WestJet Encore. The Airline’s first flight was on February 29, 1996. (Arnusch, 2013) The Airline in its early starting years had all its routes in Western Canada, and this is where its name is derived from. Between 1996 and 2001, the airline experienced changes in leadership and shareholding. The Companies changed its CEOs From Clive Beddoe, to Steve Smith in 1999. As of 1999, the company made its first Initial Public offering. Steve Smith was replaced by Clive Beddoe again in 2000 until 2007. Later the company rose, expanding its destination flights to include more international flight. In terms of domestic shares, the airline rose from 7% in the year 2000 when, Air Canada was at 77% to 38% in the year 2009 when Air Canada was at 55%. The airline is clearly rising against its main competitor. (The Globe and Mail). The Airlines main goals as of 2009 were to reach a market share of 40% in Canada. (The Globe and Mail.) Its other goals include increasing the number of both local and international flights. Their current goal is “to continue to grow into one of the largest airlines”.
Production
The company is an airline hence its main services are flights across various destinations in and out of Canada. They aim at providing low costs yet efficient services to their consumers. According to Tim Croyle, the company’s Vice president, the Company has all the necessary personnel to make sure that the Vacation experience for anyone is a stress free one. This makes Vacation goers to be some of the main target markets for West Jet Airlines. Tim Croyle says that one of his best vacation destinations is Cuba and says that WestJet Airlines has made this possible for him. (Arnusch, 2013). Its other target markets include business flights in all classes including first class. WestJet generally claims that demand for their airline services is at a healthy position. This can be supported by evidence from the profit they gained in 2012. The company reported a near 80% increase in its earnings as reported by the Financial Post. These earnings were much more than what most analysts had predicted. (Deveau S, 2012). This was despite claims across the media that Canadian airlines are expensive and inefficient. (Deveau, 2012). This is just an example of the company’s profit margins. The company’s services are all at a tertiary stage of production. Planes used by the company are manufactured outside the company. All the employees in the company; pilots and flight attendants are also all tertiary. The pricing of its main service can easily be checked at their website and one can also book their flights and view late cancellations. Their website (http://www.westjet.com), also provides information about the company’s fixed and variable costs. Like most other airlines, WestJet is a largely fixed cost based company, where money is invested into equipment and facilities.
Competition
WestJet Airlines faces completion from many small airlines. Its main competitor in Canada is Air Canada. WestJet survives competition mainly because it offers cheaper flights and high quality services. Its flights are cheaper than those offered by Air Canada. The Company’s main competitive advantage is the fact that all its employees are shareholders in the company. This means that the company has a clear advantage over underpaid employees in other airlines.
Summary
In Summary, we see that the biggest source of success for WestJet airline is the fact the company has found other ways of cutting costs rather than raising ticket prices. The belief in the company is that it is taking care of its people that takes care of the business. This makes the Customer the first priority for WestJet Airlines Ltd. For any successful business, it should always be a priority to take care of the customer’s needs. The company acquires extra money through other kinds of taxes such as taxing overweight people. The company’s main weakness is beyond its control. It lies in the fact that the company was started late and may require more time before all of its goals can be achieved.

Work Cited
Arnusch S, (September 12, 2013) A Peek into WestJet’s corporate culture, retrieved from www.upmagazine.com/content/peek-westjets-corporate-culture
Jang B, (February 18, 2010) WestJet closing gap with Air Canada, retrieved from www.theglobeandmail.com/report-on-business/westjet-closing-gap-with-air-canada/article1472230
Deveau S (November 7, 2012) WestJet blasts past estimates with 80% profits leap retrieved from, business.financialpost.com/2012/11/7/westjet-blasts-past-estimates-with-80-profit-leap.

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