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Westjet Project - Final Final

Westjet Project - Final Final

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Published by Mao Kai
Westjet
Westjet

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Published by: Mao Kai on Feb 14, 2012
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12/06/2012

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MKTG 4401
Term Project−
WestJet
Due: Monday March15, 2010, Brian GiffenJill VassalloPam MalapasNikki WongPaul DunnRyan SnellingSet L
 
1 |Page 
WestJet Internal Memorandum
To: Brian Giffen, CEOFrom: WestJet Business Consultancy TeamRE: WestJet 
’s
Five Year PlanDate: Monday March 15, 2010
As a successful company on the threshold of expansion, WestJet is presented with many factorsof consideration when making decisions for the next five years and the future beyond that.As you are well aware, WestJet has found great success positioning itself as a small, homegrowncompany; yet to sustain WestJet
’s success, measures must be taken to grow the company in a
way that still aligns with its current brand image. We have identified the following to be themost pressing issues:
 
Fuel
 
The Canadian Market
 
The International Market
 
The Plane of the Future
 
Political and Legal RegulationsThese factors must be taken into consideration when deciding the WestJet
’s future;
consequently, we have provided recommendations of what we feel are the best ways toleverage these situations. Additionally, this report examines WestJet
’s current business model
and which current practices will continue to serve WestJet well in the future.
 
2 |Page 
Introduction
When WestJet first began business in 1996, it positioned itself as a high-value, low-cost aircarrier, specializing in short-haul travel within Western Canada. WestJet targeted leisuretravelers visiting family and friends, who otherwise would have taken a long car trip to do so.Price-savvy business travelers eventually caught on, and also began flying with WestJet. Thislow-cost carrier eventually became known as the likable underdog, despite having expanded itsservice to the United States and the Caribbean. Today, WestJet is popular with leisure andbusiness travelers alike, who share a need for personable and reasonably priced air travel.
WestJet
’s Current Business Model
 
The following sections outline WestJet
’s current business model.
 
WestJet
’s Marke
t
WestJet
’s primary target market is
split evenly between price-conscious travelers looking to taketrips (less than 10 hours long) by vehicle, and business travelers.
The Airline Industry
WestJet
s current markets consist of the areas in which they conduct flights. Currently, they flyto 67 destinations throughout North America, including 30 cities in Canada and 17 in the UnitedStates.WestJet's largest focal city is its home base atCalgary International Airport.Toronto PearsonInternational Airportserves as the airline's second-largest focus city, and main connection pointin eastern Canada. The airline also has a strong presence atEdmonton International Airport, Vancouver International AirportandWinnipeg James Armstrong Richardson InternationalAirport.These are their main locations for departures, including trips across North America andthe Caribbean.WestJet
’s
secondary markets include major US airports such asLos Angeles InternationalAirport,Las Vegas McCarran International Airport,Newark Liberty International AirportandSan Francisco International Airport,the latter two on a seasonal basis. The airline provides the mostCanadian flights toLas VegasandOrlando,offering non-stop routes (some of them seasonal) from ten Canadian cities to Las Vegas and eight to Orlando. In the first months of 2009, WestJetbecame the largest international carrier to Las Vegas (WestJet, 2009).WestJet also serves 13 destinations in the Caribbean and six in Mexico, some on a seasonalbasis.

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