WestJet Strategic Taxation
Tanya Witherington #3136712
Abdullah Saleh #3157594
Tyler Ethridge #3084252
Natasha King #265841
Yao Yao #3111635
Jaiqi Lu #
PURSE 4101March 21 years old, 2005.
I. Current Condition
A. Current Performance
вЂў WestJet owned 28% of the domestic air market share in 2005 vs . 25% in 2003. вЂў To get the year ended December 31, 2004, un-audited Revenue was $1. 06 billion up by $196. 4 mil over 2003's revenue of $863. 6 million. However , the airline reported a Net Loss of $17. two million, down from Net Earnings of $60. 5 million in 2003. вЂў In 2004, West Jet's share prices fell 35% in benefit, due to record high gas prices along with charges of corporate watching (Verberg, 2004). вЂў WestJet flies to 33 United states cities, along with 8 foreign countries. вЂў Employs above 4, 500 people who are non-unionized.
вЂў As of January 31, the year 2003, WestJet's Cost per Offered Seat Mile (CASM) was 11. 07 cents versus Air Canada's 16. 87 per CASM вЂў The company has elected to replace it is fleet of 737-200 aircraft with state-of the art 737-700. By Dec, 2005, the organization will run 55 cutting edge 737s. um This replacement cost caused the organization to get a $47. 6 million dollar write-down in assets in 2004. u 2004 Q4 net loss in $46. 3 million compared with 2003 Q4 net income of $12. 8 , 000, 000. вЂў Placed the third looked upon corporation canada in Ipsos-Reid's 2004 study. вЂў UPGRADE: Due to fall of Jetsgo:
u In Mar 2005, WestJet stock improved from $9. 36 to $16. 13 per share вЂ“ nearly double the worth in one week (March 17, 2005: TSX online). u To accommodate the increased marketplace demand, WestJet plans to improve capacity simply by 35 percent this year and delay the retirement of 18 older airplanes to satisfy demand. u WestJet has additionally increased prices since the fall of Jetsgo.
B. Strategic Posture
WestJet's mission, objectives, strategies and policies are all clearly mentioned.
1 . Mission
вЂў " To enrich the lives of everyone in WestJet's world by giving safe, friendly, affordable air flow travelвЂќ (WestJet online).
installment payments on your Objectives
вЂў Eye-sight: WestJet aims to be the leading Canadian high-quality, low-fare airline that people wish to work with, buyers want to fly with, and shareholders want to take a position with (WestJet online). вЂў Growth through international growth.
вЂў To achieve their vision, WestJet has designed a business model that focuses on it is key advantages of company culture (satisfied employees) and customer service, low operating costs, product differentiation, and demand stimulation. вЂў Over the next 12 months (2005), older version 737s will probably be replaced with five Next-Generation 737-600s, six Next-Generation 737-700s and five Next-Generations 737-800s. The brand new fleet will offer WestJet the most modern and fuel-efficient fast in Canada and permit the air travel to grow by a further more 17%. вЂў This new navy will save the airline roughly $30 , 000, 000 annually since these airplanes are thirty percent more energy efficient than the older designs and will get much lower protection costs. This will likely more than offset the $47. 6 million write-down reduction. вЂў Crewing efficiencies: Aviators can travel all variants of the 737s due to their common cockpit setup. вЂў Repair efficiencies: Routine service will be simplified since all planes utilize same parts and search engines. вЂў Made easier route composition and procedures.
вЂў Usage of secondary air-ports where readily available.
вЂў Growth strategy: Increase the volume of markets offered, as well as elevating the rate of recurrence of flights. Also target is in long-term well being of the aircarrier, not merely about short-term success. вЂў Buyer...
References: Calvin, Leung (2005). Le Enclos and WestJet. Canadian Organization, Vol. 78 (3), 1-2. Retrieved Feb . 28, june 2006 from Buisness Source Leading Database on UNBSJ Library website.
Barcelone Stock Exchange (2005). www.tsx.com
WestJet (2005). www.WestJet.com
2 . 2003 Gross annual Report
three or more
4. 2003 Annual Information Form (AIF)
TSX SIGN: WJA
06 2, the year 2003 - 2009: 15 AINSI QUE