As a company, WestJet does not show a lot of weaknesses. However,the lack of international and Trans-Continental flights in the world of rapidly rising economies, international business and marketscould be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travellers are looking to fly with some added comfort and special service, WestJet does not provide any sort of first class seating which can be a factor of lost business.
At the same time WestJet is facing oversupply in the Caribbean and Mexico, which is creating pricing pressure in those regions. With its underlying financial strength, WestJet should be able to withstand most of the challenges its faces in as the company continues to evolve from a traditional low-cost airline to a global competitor.
Solid profitability and balance sheet strength WestJet joined fellow hybrid airline Alaska in obtaining investment grade status ina key achievement in obtaining favourable interest rates as its expansion continues. Although its year-on-year profit growth slowed to 5.
WestJet annual net profit in CAD: Canadian news outlet the Globe and Mail recently reported that Jetlines is aiming for a Sep launch, but that is far from a certainty.
The hype surrounding those airlines seems to have subsided for the time being, allowing WestJet and Air Canada to retain their respective leading positions in the marketplace.
WestJet still retains a younger, fresher image, for now With a great deal of uncertainty surrounding the launch of new Canadian upstarts, WestJet at 19 years old still maintains a fresher and younger image than its rival Air Canada.
The company also uses social media to address challenges, including a recent phone scam in Mar, engaging passengers on Twitter and alerting them to the potential fraud. Although Air Canada is admittedly opting for lower yields as a reflection of its increased focus on leisure passengers and long-haul flying, its costs for now are still falling faster than its yields.
Calgary and Edmonton are in the Alberta province, which has a large dependency on the energy industry. But beginning in there should be some improved momentum in the provinces whose economies are more dependent on the energy sector.
Yet it seems in the short term WestJet will feel at least some pressure from the economic environment in portions of western Canada. As a result, WestJet was seeing some pricing and margin pressure on those routes, which does not bode well for a strong unit revenue performance in 1Q WestJet may be limited in the number of business travellers it can capture During the last few years WestJet has made many network and product changes to position itself more favourably among higher yielding business travellers.
Creating new competitive dynamics in the long-haul space WestJet initially plans to operate its s widebodies from Calgary to Honolulu and Maui and from Edmonton to Maui in Dec WestJet also has 13 codesharing partners spanning Europe and Asia, giving it a broader network to market to its new international customers.
By Oct, Encore will operate from roughly 31 stations including several markets in eastern Canada. But the decision is part of a broader scheme to increase higher margin ancillary revenues.
The WestJet mission statement is “to enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel (WestJet Annual Information Report p. 18)”. Organizational Strengths and Weaknesses. Swot Analysis - Westjet Essay Words | 5 Pages. represent a SWOT analysis for a WestJet Airlines Ltd. “SWOT is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.” These factors will determine the success or failure of any company. The article presents a strengths, weaknesses, opportunities, threats (SWOT) analysis of WestJet Airlines Ltd. headquartered in Calgary, Alberta as of Its strength lies in its fleet base for its route network but may be hampered by its dependence on Boeing as its sole supplier for aircrafts and.
Its ancillary revenue per passenger jumped from CAD6. Product unbundling and rebundling through fare families has become a mainstay in the airline industry as airlines grow more sophisticated in their merchandising efforts, and WestJet cannot leave those higher margin revenues untapped.
Even as the new product bundles create a significant revenue opportunity for the airline, passengers may feel a bit put off by the new structure, concluding that certain aspects of the travel experience have been stripped away and are now part of a slew of new charges.
WestJet faces the delicate challenge of rewiring passenger expectations as it evolves it ancillary revenue strategy further, perhaps into dynamic pricing. Some employee discontent has accompanied those changes.
As it continues to grow, it will take even more effort for WestJet to preserve one of its largest advantages — a favourable culture. Most of the transformation seems to have been executed seamlessly, which is no small feat given the flux of change the airline continues to undergo. Most of the challenges facing WestJet seem to be short term in nature, and are certainly obstacles the airline has faced many times in the past — pockets of economic weakness and oversupply.
WestJet can no doubt weather those challenges as it works toward its long term goals. The biggest uncertainty for WestJet is if it can attain its desired results in long-haul operations. If the past is any indication, the airline is well positioned to achieve its goals.
Want More Analysis Like This?
CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.Market Developments: Investor / Business. Firefly Aerospace Receives Statement of Support from the United States Air Force for Use of Vandenberg Air Force Base Space Launch Complex 2 West 2/05/18 First Light: Fourth U.S.
Air Force SBIRS Satellite Sends First Images Back to Earth 2/05/18 Inmarsat Jet ConneX takes flight in Latin America with partner Honeywell 02/05/ Swot Analysis - Westjet Essay Words | 5 Pages.
represent a SWOT analysis for a WestJet Airlines Ltd. “SWOT is an acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.” These factors will determine the success or failure of any company.
SWOT Analysis Template Situation being analysed: _____Westjet_____ This SWOT example is for a new business opportunity.
Many criteria can apply to more than one quadrant. Many criteria can apply to more than one quadrant. Westjet Swot Analysis Essay Words | 5 Pages. WestJet Case Study WestJet is a Canadian low-cost carrier, which was founded in and headquartered in Calgary, Alberta.
WestJet is Canada’s second largest airline with high per cent of the domestic market. The WestJet mission statement is “to enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel (WestJet Annual Information Report p.
18)”. Organizational Strengths and Weaknesses. Westjet Swot Analysis Essay West can easily beat competitors in field of customers attraction, company that boards its customers according to socks or shoes color, or even allows free flies for people with name “Love” or “Heart” on Valentine’s Day.