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Westjet

WestJet Strategic Taxation

by:

Tanya Witherington #3136712

Abdullah Saleh #3157594

Tyler Ethridge #3084252

Natasha King #265841

Yao Yao #3111635

Jaiqi Lu #

PURSE 4101March 21 years old, 2005.

Daniel DoironUNBSJ

Western Jet

I. Current Condition

A. Current Performance

• WestJet owned 28% of the domestic air market share in 2005 vs . 25% in 2003. • 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. • 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). • WestJet flies to 33 United states cities, along with 8 foreign countries. • Employs above 4, 500 people who are non-unionized.

• 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 • 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. • Placed the third looked upon corporation canada in Ipsos-Reid's 2004 study. • UPGRADE: Due to fall of Jetsgo:

u In Mar 2005, WestJet stock improved from $9. 36 to $16. 13 per share – 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

• " To enrich the lives of everyone in WestJet's world by giving safe, friendly, affordable air flow travel” (WestJet online).

installment payments on your Objectives

• 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). • Growth through international growth.

3. Strategies

• 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. • 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%. • 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. • Crewing efficiencies: Aviators can travel all variants of the 737s due to their common cockpit setup. • Repair efficiencies: Routine service will be simplified since all planes utilize same parts and search engines. • Made easier route composition and procedures.

• Usage of secondary air-ports where readily available.

• 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. • 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

Verberg, P

WestJet (2005). www.WestJet.com

1

2 . 2003 Gross annual Report

three or more

4. 2003 Annual Information Form (AIF)

ABDULLAH's referrals

TSX SIGN: WJA

06 2, the year 2003 - 2009: 15 AINSI QUE

26.08.2019

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