West Jet Airline Case

Changes in WestJet:

WestJet, a Canadian airline, which was founded in 1996 by a group of Calgary businessmen, operates as a low cost player in industry. The airline has 36% domestic market share in Canada; as second in industry; as compare to Air Canada, which has 57% market share. WestJet start operating with single fleet model using Boeing 737s with capacity of 119 to 166 passengers. Using single fleet has helped WestJet to reduce its operating and maintenance cost. The airline was facing flight occupancy issue in its most of the domestic routes. It expanded the business in few years by providing facilities to their customers. It achieved revenue growth of 10% in available seat miles through fleet expansion and an increased number of flights.

Competitive Advantages:

The competitive advantages of WestJet are its Cheerful employees, irreverent corporate culture, low fares and upbeat commercials. It provides nonstop routes to increase travel convenience for customer. They provide flights from point to point. WestJet started evening flights which make them different from their competitors. It provides more facilities to their customers such as electronic boarding passes and self-checking facilities as compare to their competitors.

WestJet maintain its low cost model and growing its margins through cost control, cost reduction and increased fleet utilization. It delivered amazing guest experience to customers by on time performance and with cheerful staff. The unique corporate culture is the another competitive advantage for the WestJet

Organization Strategy Diamond:

Arena:

WestJet was offering flights to Vancouver, Kelowna, Calgary and Edmonton. It keeps the affordable prices so that people can easily afford flights from one part to another; they can use airlines as an alternative transportation such as automobile, bus or rail. Then they add more destinations in their schedule such as Thunder Bay, Ontario, Victoria, and Saskatoon. WestJet decided to start with single model of airplane the Boeing 737-200; by which they decided to use one type of technology. New planes were 30% more fuel efficient.

Sequence and Speed:

WestJet was expanding very fast. It added Victoria, Regina and Saskatoon in its schedule in just one month in 1996. In 1999; WestJet expand to Thunder Bay, Ontario as destination. It is adding three to four aircrafts every year. It provides 182 flights per week in Ontario.

Economic Logic:

WestJet decided to keep one type of model of airplane; Boeing 737-200, by which they can lower their cost of maintenance. After landing at airport the crew members start cleaning the plane by which they can lower their cost.

Vehicles:

WestJet