WestJet, a popular air travel company, is reaching beyond its Canadian borders to a new Irish destination overseas. By adding only one new European destination to their travel list, WestJet is testing out their capacity for international air travel. Only using their smaller Boeing 737-700 planes, which seat 136 passengers, will allow them to experiment with longer and farther travel without incurring massive costs at first. But that will soon change if they continue to fly to far off destinations.
Through creating a SWOT Analysis of WestJet, it is apparent that international flights have the potential for improving business and bringing in new customers. However, the drastically increased costs of expansion and the high possibility of a new influx of European competition would most likely outweigh the benefits gained.
|
Strengths
- Low-cost air travel – competitive advantage
- Strong brand image and reputation in Canada
- Labour is non-unionized so labour costs are lower = higher profit
- Reduces costs since they only fly in Canada – less fuel, smaller planes, etc.
|
Weaknesses
- Lack of international flights – loses a lot of potential customers who want to travel overseas
- Smaller planes – no first class and destinations have to be closer
- In-flight entertainment and snacks are reduced in order to cut costs
|
|
Opportunities
- Opportunities to expand internationally
- Alliances with other airlines to expand their customer base and destination reach
- More specific trip planning and promotional offers
|
Threats
- Increasing costs of fuel can cause prices to rise
- Expanding overseas will mean they have to compete with more well-established and experienced international airlines
|
http://www.theglobeandmail.com/report-on-business/westjet-goes-trans-atlantic-with-new-dublin-flight/article15455464/
http://www.westjet.com/guest/en/home.shtml;jsessionid=nhp3SJypzXq2NhBlxDb1p2klDQvlQSF06K5vTjnkcxnh9QR9TQWW!827512881
