Westjet Case Analysis
Table of Contents
Executive Summary i
Table of Contents 1
About WestJet 1
Market Share 2
Domestic 2
International 3
Market Position and SWOT Analysis 5
WestJet Key Financial Ratios 7
Accounting, Finance, Legal and Environmental Issues 8
Shareholders and Company Ownership 8
Accounting Policy and Internal Control 9
Legal 9
Environmental 11
Investor Recommendations 12
Bibliography 13
THE COMPANY AND ITS POSITION IN THE MARKET
Competitive Landscape
Markets where WestJet competes:
• Airlines
• Consumer Services
• Travel Agencies & Services
• Transportation Services
• Air Cargo Services
Direct competitors
• Air Canada
• Air Transat
• Porter Air
• Central Mountain Air
Key Financial Data 2010 2009 2008
Profit margin 5.24% 9.23% 11.48%
Return on Equity 8.59% 15.16% 27.21%
Debt/Total Assets 0.58 0.60 0.67
Book value $ 10.54 $ 10.01 $ 8.28
About WestJet
WestJet is a Canadian low-cost airline, publicly traded on the Toronto Stock Exchange – (TSX: WJA). Founded in 1996, it currently is the second largest carrier in Canada, next to Air Canada.
WestJet operates in 70 cities across North America, Mexico and the Caribbean and employs over 8000 employees and is non-unionized. The WestJet head office and main hub is located in Calgary, the other main hub being Toronto Pearson Airport. The airline operates an average of 420 flights and carries 40000 passengers per day. WestJet's fleet consists exclusively of Boeing 737s, following the single operating type model pioneered by Southwest Airlines. In 2010 the carrier’s fleet consisted of 91 aircraft.
WestJet has maintained a constant focus on customer service, providing low fares, and always-on-time service, allowing them to take a leading position in the Canadian airline industry.
Market Share
Domestic
FIGURE 1 SOURCE: DATA FROM BRENT JANG, WESTJET CLOSING THE GAP WITH AIR CANADA, THE GLOBE AND MAIL REPORT ON BUSINESS, FEBRUARY 18,2010,
Executive Summary i
Table of Contents 1
About WestJet 1
Market Share 2
Domestic 2
International 3
Market Position and SWOT Analysis 5
WestJet Key Financial Ratios 7
Accounting, Finance, Legal and Environmental Issues 8
Shareholders and Company Ownership 8
Accounting Policy and Internal Control 9
Legal 9
Environmental 11
Investor Recommendations 12
Bibliography 13
THE COMPANY AND ITS POSITION IN THE MARKET
Competitive Landscape
Markets where WestJet competes:
• Airlines
• Consumer Services
• Travel Agencies & Services
• Transportation Services
• Air Cargo Services
Direct competitors
• Air Canada
• Air Transat
• Porter Air
• Central Mountain Air
Key Financial Data 2010 2009 2008
Profit margin 5.24% 9.23% 11.48%
Return on Equity 8.59% 15.16% 27.21%
Debt/Total Assets 0.58 0.60 0.67
Book value $ 10.54 $ 10.01 $ 8.28
About WestJet
WestJet is a Canadian low-cost airline, publicly traded on the Toronto Stock Exchange – (TSX: WJA). Founded in 1996, it currently is the second largest carrier in Canada, next to Air Canada.
WestJet operates in 70 cities across North America, Mexico and the Caribbean and employs over 8000 employees and is non-unionized. The WestJet head office and main hub is located in Calgary, the other main hub being Toronto Pearson Airport. The airline operates an average of 420 flights and carries 40000 passengers per day. WestJet's fleet consists exclusively of Boeing 737s, following the single operating type model pioneered by Southwest Airlines. In 2010 the carrier’s fleet consisted of 91 aircraft.
WestJet has maintained a constant focus on customer service, providing low fares, and always-on-time service, allowing them to take a leading position in the Canadian airline industry.
Market Share
Domestic
FIGURE 1 SOURCE: DATA FROM BRENT JANG, WESTJET CLOSING THE GAP WITH AIR CANADA, THE GLOBE AND MAIL REPORT ON BUSINESS, FEBRUARY 18,2010,