Introduction “Asked what a business is, the typical business man will likely answer ‘An organization to make a profit.’ The typical economist is likely to give the same answer. This answer is not only false but irrelevant.”1 Companies that are known to experience lasting success are ones who stay true to their core values and purposes despite changes in the world. Most recently because of the recession many companies and industries were affected in some way. The airline industry was certainly not immune from the many problems in the economy. In an attempt to assist a friend in deciding whether it is worthwhile to invest in WestJet, a Canadian airline company, a thorough analysis of WestJet was undertaken to assist her in making her decision.
Requirement # 1
WestJet, ‘Canada’s leading high-value low-fare airline’, was founded in January 1996 by four Calgary entrepreneurs: Clive Beddoe, Mark Hill, Tim Morgan and Donald Bell. One month later in February, WestJet started operations with 220 employees, three aircrafts and flying only to five cities within Canada. Over the subsequent months, the WestJet team was successful in attaining the sufficient funds to expand their business which allowed them to purchase additional aircrafts as well as the building of a new Head Office in Calgary among other things. Today, after thirteen years of operation, WestJet now offers service to 66 destinations across Canada, the United States, Mexico and the Caribbean. It has also earned the reputation as ‘Canada’s leading high-value low-fare airline’ at the same time competing with its number one competitor Air Canada. “But as WestJet inevitably usurps Air Canada to become the country’s largest domestic airline, the older carrier might pause to take some lessons from its conqueror”2 says one report in comparing WestJet with Air Canada. WestJet is currently one of the