Westjet Case Analysis

1681 Words7 Pages
In 1994, the idea for a more personable, reasonably priced airline from Canada to United States was in the mist of development. The airline industry is a rough one in which ninety percent of start-up companies’ fail. One airline, on the other hand, has been profitable since its start. It began with only two planes in 1996 and grew to an unbelievable twenty-one by 2000. Finally, in April 2001 Olive Beddoe, Don Bell, Mark Hill, and Tom Morgan officially unveiled WestJet Airlines. The co-founders believed there was a profitable market for a low-fare carrier to and from the United States and Canada. They took the initiative to design a complete business plan and financial representation of what would be a successful U.S. to Canada carrier. The key points were to have a “low-cost, low-fare, short-haul, point-to-point airline to serve markets in Western Canada”. In implementing these key ideas, WestJet has been one of the most profitable airlines in North America. WestJet receives over 155,000 resumes a year from people in the airline industry and others with no airline industry qualifications at all. Surprisingly, they tend not to hire the ones with experience. WestJet is not your typical bureaucratic organization like most of the other airlines. It is assumed WestJet does not want to hire competitor employees because their work ethic is so off from what WestJet has portrayed in their work force. West Jet had to make a difficult decision on where to be centrally located. They needed to fin a location that would be profitable in fixed costs and in somewhat of an urban area with a higher population for potential customers. Through months of statistical analysis they decided to focus in Ontario. Hamilton is a town in Ontario that didn’t have any commercial airlines stationed. This was a perfect spot where they decided to make their Eastern
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