The famous Canadian airline West Jet has decided to step away from its usual low cost model and expand its trip-offerings overseas. This is an attempt to compete with their biggest rival Air Canada. But is this a smart financial decision for the company? West Jet has decided to offer a flight between St Johns. This means that West Jet will need to expand the size of their planes to withstand this length of flight, which will increase costs. Yet since these flight are much more expensive, revenue will increase as well. Chris Sorensen, business blogger for MacLean’s states that, “There will likely be more changes to come.” I concur. If West Jet is successful, they could create a whole new name for themselves and finally compete with the other international airline companies.
http://www2.macleans.ca/2013/11/15/westjet-bound-for-europe/
