WestJet Case Analysis Writing Assignment

WestJet Case Analysis
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WestJet Case Analysis
Introduction
WestJet is the second largest airline in Canada. Every year, the company completes a budget planning cycle that has helped the airline tremendously; particularly in the expansion of the company’s social media presence. At the time that the airline was established, it was a low-cost airline and competed with the majority of large Canadian and global airlines. Currently, the airline offers charter and scheduled service to more than 110 destinations in the U.S, Europe, Canada, Central America, Mexico, as well as the Caribbean. By 2018, the airline had amassed close to 26 million passengers; thus, it was considered as the ninth airline in the continent in terms of the passengers carried. By 2019, the company, as a public enterprise, has close to 15,000 workers and not part of airline alliances. Some of its aircraft include the Next Generation Boeing 737s, the Boeing 787 and 767 aircraft, as well as the 737 MAX.
Situational Assessment
The competitive landscape: - For a very long time, the competitive landscape of the airline industry in Canada has been down. However, as soon as WestJet launched its ULCC carriers, the industry has shifted the prices of flights; thus, making it cheaper for clients to travel. Furthermore, competition is stiffer than ever. WestJet currently competes with other airlines such as Flair Airlines, Canada Jetlines, as well as Enerjet. Besides, there are new local and international airlines that are considering entry into the Canadian market.
Furthermore, the government introduced a piece of legislation known as the “Bill C-49” According to the bill; also known as the Transportation Modernization Act, the limits of foreign ownership have been lifted from the previous 25% to 49%; thus, increasing the competitiveness of the industry.
Regulatory aspects: - The Canadian system of governance comprises of three arms. The system is composed of the territorial or provincial government, the federal government, and the municipal government.
First, the territorial/provincial government is either headed by the Commissioner; for territory or Lieutenant Governor for a province. Some of the functions of the territorial/provincial governments include providing civil rights, administrating justice, providing education for all, maintaining health and economic welfare, as well as managing natural resources and encouraging sustainability.
Second, the municipal government comes in to create the territorial or provincial governments. Both territorial and provincial governments have the mandate to (1) design, (2) eliminate, or (3) modify the municipal government — besides, the two forms of government control powers executed by the municipal government. However, the functionalities of the municipal government include the provision of water and medical services, collecting wastes and providing public transit, planning the use of lands and controlling animals, as well as managing economic developments.
Finally, there is the federal government. Some of the functionalities of the federal government include the provision of internal defense, enacting criminal law, as well as providing job security, regulating trading activities, offering banking services, and maintaining external relations among others.
Concerning the efforts of the government in boosting the airline industry in the country, the federal government has been responsible for funding the country’s public airlines through its security program known as Air Cargo. Besides, the federal government also aims at expanding the growth rate of the industry by increasing its trading cooperation with other countries such as the U.S as well as boosting its economic networks. Therefore, the federal government budgets for upgrading the main elements of the airline industry by offering a sum of $31 million in 2019. The government has also instructed the Canadian Air Transport Security Authority to buy new equipment for baggage screening as the current machine is obsolete.
The federal government is also still tracking its Action Plan for 2011 on Economic Competitiveness and Perimeter Strategy. In relation, the government resorts to complete new airport and airstrip constructions as well as upgrade the existing ones to ease air traveling.
Economic factors: - First, the government is boosting the airline industry in the country by funding public airlines via the Air Cargo program. Besides, with the new equipment for baggage screening, tracking insecurity would be more manageable. Lastly, with the Transportation Modernization Act, the limits of foreign ownership h...