Westjet Background

Company Background

WestJet was founded in 1996 by a group of Calgary entrepreneurs consisting of Clive Beddoe, Mark Hill, Tim Morgan and Donald Bell. Over the years, WestJet has significantly grown to become the second largest air-carrier in Canada and by 2016, the airline is expected to become one of the five most successful international airlines (WestJet, 2012). Although the company only began with 3 aircraft which were purchased from the non-operational Canadian Airlines, and only flew to 5 destinations in Western Canada with 220 employees, their value for corporate culture and community involvement has been a key to their success. WestJet became known for their low cost and high value concept in addition to their similar employee model of Southwest Airlines. WestJet has a non-unionized workforce which enjoys benefits such as profit sharing through investment in the company, an equal workforce, and the power to make decisions.

The company was able to raise $25 million through their initial public offering on July 13, 1999, which expanded the number of destinations and aircraft (CBC News Business, 2000). WestJet currently employs over 8,600 employees, operates 98 aircraft, and flies to 76 destinations in 12 countries. In 2011, more than 16 million guests flew on the airline and WestJet was able to surpass $3 billion in revenues. WestJet has reported an annual profit 15 times in their 16 year history. The current growth of WestJet involves expanding their airline partnerships to strengthen the value of business travellers in Eastern Canada. They also plan to expand their WestJet Vacations division which allows guests the ability to access hotel guides, destination maps, guest reviews, and a simple online booking process. Social media has been a recent trend that has allowed WestJet to expand their customer base through promotional videos, discounts, and direct communication. The growth of the company has allowed them to