WestJet was established in 1996 by Clive Beddoe and a team of like-minded partners, who believed that just because you pay less for your flights, doesn’t mean you should get less. The headquarters of this company is in Calgary, Canada. The company started its journey with three aircraft, five destinations and 220 friendly employees which helped them to become a company of more than 12,000 passionate employees flying their fleet of Boeing 737 Next-Generation aircraft to more than 100 destinations across their network. In 2011, WestJet was proposed as a J.D. Power Customer Service Champion, ranked third in Aon Hewitt’s best employers in Canada and was chosen as the Canadian airline with the best flights attendants by flightnetwork.com. It is a public company and is one of the low-cost airline.
WestJet values comprise of:
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commitment to safety • passionate, positive, honest and open in everything they do • friendly and caring • aligning the interest of employees with the interests of the company.
The main focus of the company is to take care of the WestJetters and they in turn will take care of the guests which in turn will play an essential role in the growth of the business and in executing the business strategies.
The mission of the company is to enrich the lives of people that are attached to the WestJet’s world by focusing on factors such as safety, on-time performance, profitability and guest satisfaction.
With the passage of time WestJet airline improved upon the quality of services, upgraded the fleet of aircrafts, expanded the destinations and gave within aircraft world class facilities like live T.V. products, movies etc. (About us, n.d.)
Analysis
The current economic conditions that are affecting the working of WestJet airlines:
1. Fluctuation in
currency Due to decline in the currency, the profit of the company was decreased by 30% in the fourth-quarter. The net income and adjusted earnings of the Calgary-based airline declined by $27.3 million from $90.7 million. WestJet suffered $10.1 million loss on foreign exchange in fourth quarter of 2015 as compared to a loss of $2.5 million a year earlier. WestJet total operating expenses which included fuel, salaries, profit sharing, maintenance and leasing of aircraft was declined to $846 million which was one percent down from $854.8 million. Even the company revenue declined by 3.6 percent to $958.7 million in three months ended December 31, down by $35.7 million from $9994.4 million in fourth quarter of 2014. (Press, 2016) 2. Changes in government policies The WestJet airlines work closely with the government so any changes in the policies will affect the working of the company. The federal Environment Minister Catherine Mc Kenna said that they will impose a 5.1% per litre levy on jet fuel purchases for flights that originate and end within the province (such as Calgary to Edmonton). The Airlines operate with razor thin margins and already feel hampered by third party taxes and fees over which they have no control. The company $14 in profit per guest but as soon the outrageous carbon taxes added it will wide away $14. This will convert the aviation industry from healthy to unhealthy one. Apart from this if the federal government increases foreign ownership limit from commercial airlines to 49% from current level of 25% then the condition of the aviation industry will become more worse. As per the resources if the future of the aviation industry is to be kept save and if it is to be improved then the government should not take these drastic steps that will ruin the present and future of the industry. 3. Technology In 2016 the company expanded its international destination through re-deployed 737 aircraft and new-wide body operations. The company improved its onboard guest experiences and gave the guest the ease to do business with them. The company launched the new inflight entertainment system which included wireless broadband internet connectivity that provided guest easy access to movies, news, weather and destination information. The company has also announced various enhancements like reciprocal frequent flyer agreement with Qantas Airways. This will provide the members to have a choice of either WestJet dollars or Qantas Points when travelling. As per the analysis the company will increase its profit through its expansion. The increase in the number of passengers flying will lead market share of the company to increase which will increase in the company goodwill. The conditions that will affect the working of company in upcoming one to three years are: 1. Failure to maintain low cost operating model Many of the guests are attracted towards WestJet due to its low cost operating model but there are many uncertainties attached to cost as it is out of our control. An increase in cost of fuel, interest rate, foreign exchange rate and change in government policies can make it hard for the company to maintain its low fare which can affect the working of the company. 2. Failure to maintain privacy of guests’ information All the information of the guests are maintained online through various security system. Failure in the functioning of these system can lead to the intrusion of the information which will affect the goodwill as well as will lead to increase in the cost for retrieving the data. Conclusion In order to survive the present scenario the aviation company has to continue to tender low cost flying and has to provide best amenities to the passengers without comprising the standards. The company has to think about its employees so that they are not affected by the changes in the policies. As we know changes are inevitable and it is the Rule of Thumb that government policies and competition with other airlines will definitely put pressure on the profitability of the company. In order to survive this crisis the company should reduce the unnecessary expenses and should jot out a strategy by incorporating a comprehensive plan by deliberate discussion with each other.
Air Canada has deliberately set its self around the domestic and also worldwide market of carrier industry. The aircraft has substantiated itself as a superior Canadian brand becoming a part of Star Alliance, joined different famous carriers such KLM, Lufthansa carrier, Thai aircraft and so forth. Moreover, Air Canada has code offering consent to in excess of 26 aircrafts including Swiss Airlines, Singapore Airline, Etihad Airways et
Addition to caring to the guests, westjet involve in many community investment, which reveal that westjet's culture of caring has not ended at the aircraft door. (3)Westjet take contribution to the society as their responsibility and participate in charity programs, such as Missing Children Society of Canada and The Canadian National Institute for the Blind. It is not hard to say that westjet is very caring and thoughtful.
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Twenty-two consecutive years of profitable operations which is unmatched in the US airline industry.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.