WestJet’s Large Aircraft has Surpassed Consumer Demand

We have discussed that “if customers want more leg room and space, why do airlines not exclusively fly large aircraft?” in our earlier class. WestJet is now providing customer larger aircraft with more legroom, simultaneously with the rising of price. However, the recent news and customer’s complaints have reflected that this may not be a good choice. "PCC Daily News"

WestJet has admitted, “it had a greater proportion of empty seats on its flights last month as increases in the airline’s capacity outpaced its growth in passengers”. WestJet has purchased 65 Boeing 737 MAX aircraft last month, which shows that WestJet is changing its marketing strategy. In this transitional period, WestJet is increasing their output because the larger the aircraft, the higher it costs for maintenance and fuel. Hence, they will definitely charge customers more. It might turns out that they will lose some consumers, as cost performance was one of the dominant factors that made them so successful. The Toronto Stock Exchange has indicated, “WestJet’s shares lost 35 cents at $25.70 in Thursday morning trading”. From my point of view, WestJet should do a much further marketing forecast. Moreover, the customer’s negative feedback has reflected that they did not have a good value proposition of satisfying what customer’s really wants.

Source:

http://www.ctvnews.ca/business/westjet-s-increase-in-capacity-outpaced-passenger-growth-in-september-1.1481764

Leave a Reply

Your email address will not be published. Required fields are marked *