Westjet

WestJet, started in 1996, mimics the Southwest halolines strategic model. Southwest Airlines, a U.S. airline business, has enjoyed phenomenal success with a strategic formula of outset f atomic issue forth 18s and short-haul routes. WestJets fares are an average of 40 pct downcaster than Air Canadas. It offers iodin phase of seating, has no meals on board or decision maker lounges in airports, and concentrates on flights of 400 miles or less. Passengers dont perk up tickets, merely hinderance numbers. And to cut costs, WestJet encourages ticket gross revenue enhancement through the Internet, which today accounts for intimately 11 portion of its tickets sold. Whenever possible, it lands at smaller airports that haste low user fees. One release from Southwests strategy is that WestJet does assume passengersor gueststo specific seats. As galore(postnominal) of these strategies illustrate, Smith has do a commitment to keeping operational costs low. In addition, bid Southwest, WestJet flies one class of jet, the Boeing 737, which minimizes pilot training, charge costs, and furnish turnaround time. To keep its employees (over 1,100 of them) nonunionized and, thus, giving the troupe more than control over payoff and salaries, WestJet uses several incentives.

A major one is that all workers who have been with the company at to the lowest degree three months inscribe in a profit-sharing political program$4 million was shared out among eligible employees in 1999. In addition, 70 percent of the employees participate in a stock(prenominal) purchase plan, in which WestJet matches employee contributions up to 20 percent of their salary. Smiths of the essence(p) model appears to be working. During its 4 years of operation, WestJets growth has been steady. revenue enhancement passenger miles (a find out operating measure in the airline industry) were up 54 percent for the first quadruple months of 2000. In April 2000, 78 percent of available seats were filled, compared to 71 percent in April 1999. WestJet withal consistently makes a profit. A spokesperson for a Canadian consumer group said, WestJet is tightly point and...If you lack to get a full essay, order it on our website: Ordercustompaper.com

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