preview

Swot Analysis Of Westjet Airlines

Decent Essays

Situation Analysis
Introduction

WestJet Airlines is a Canadian airline that differentiates itself with their low cost flights and exceptional customer service. The company’s philosophy is “just because you pay less for a flight, doesn’t mean you should get less.” WestJet has been growing rapidly since 1996, however, they believe in growing responsibly by being cautious of their environmental and community impact (“About us”, n.d.). As WestJet has a strong presence locally, our analysis will mainly focus on WestJet’s domestic segment.

Category/Competitors The Canadian airline industry has been steadily growing with a compound annual growth rate of 4.9% from 2012-2016. Within the industry, the domestic segment makes up 60.2% of the …show more content…

The large difference of ASMs is largely attributed to the fact that Air Canada focuses on both domestic and international flights while WestJet mainly focuses on domestic flights. This means while Air Canada may fly more kilometers than WestJet, the two companies are not so far off from each other when it comes to gaining customers (Statistics Canada, 2016). WestJet’s differentiating point is their price-competitive nature. As a low-cost carrier the company values offering guests the same experience they may receive at higher-priced airlines. Air Canada has, however, also began operating a low-cost segment back in 2013 called Air Canada Rouge. WestJet is now looking to launch an ultra-low cost segment, “WestJet Swoop” in June 2018, targeting guests who are mainly concerned about getting from one location to another and less concerned about flexibility and convenience (Dormer, 2017).

Customers WestJet’s low-cost pricing advantage mainly attracts price-sensitive consumers within the middle to upper-middle class. These are individuals who can’t afford the more luxurious flights and/or those who are just looking for a cheap but comfortable ride to their next destination. Travelers can conveniently purchase airfare through WestJet’s website directly, through global travel websites (i.e. Expedia, Trivago), or through travel agencies. Within the airline industry, the main concern of consumers is the price as many airlines already offer similar features

Get Access