WestJet Airlines: hybrid but profitable

2015 ◽  
Vol 31 (8) ◽  
pp. 23-25
Author(s):  
Mark Thomas

Purpose – The article looks at a Canadian airline, WestJet, that began as a low-cost carrier and is now adopting a more hybrid strategy. It analyses the difficulty of such a strategy and makes the comparison with Singapore Airlines (SIA) which has attempted to do the same. Design/methodology/approach – The article is a case study primarily of WestJet, but also of SIA. Findings – The airline industry is notorious for its low profits in the good years and appalling losses in the bad ones. The Canadian airline, WestJet, is one of the few companies that has defied this trend over the past decade. Indeed, it has reported positive net incomes for all but one year since it was created in 1996. In doing so, the Alberta-based firm is bucking not just the trend on profitability but also on strategic positioning.

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.


2016 ◽  
Vol 12 (1) ◽  
pp. 83-99 ◽  
Author(s):  
Eli Moen

Purpose – This paper aims to addresses the question how a low-cost carrier (LCC) embedded in a coordinated market economy is succeeding in a highly competitive industry with a strong cost focus. Design/methodology/approach – This paper reports the results of a case study of a LCC (Norwegian Air Shuttle). The case study draws on both organizational and institutional theory as to how the international business environment and the national institutional framework continuously impact on its strategies. Findings – It is found that home-country high wage levels and strong labour regulation have been overcome by developing firm-specific capabilities based on active employee involvement which aligns with the tradition of the national system of industrial relations. Research limitations/implications – The present case study provides an input for further research on how actors deal with conflicting pressures. It supports the varieties of capitalism (VOC) argument that national institutional arrangements influence firms and actors’ strategies and practices, but it also supports the call within institutional theories for a more malleable conceptualizing of the link between actors and institutions than is the case in the VOC models. Originality/value – The paper provides an account of a successful case in a highly competitive international business despite disadvantages linked with home-country institutions.


2015 ◽  
Vol 43 (4) ◽  
pp. 174-178 ◽  
Author(s):  
Douglas McGee

Purpose – The purpose of this paper is to provide an assessment of a one-year pilot exploring the joint purchase of e-books via demand-driven acquisition (DDA) conducted by engineering librarians from seven members of the Borrow Direct interlibrary loan partnership. Also provided are observations that may inform future initiatives of a similar nature. Design/methodology/approach – The author presents a case study approach and examination of the results. Findings – The pilot was discontinued as a result of dissatisfaction with its configuration, but it did offer significant financials savings as well as provide accessible copies of mutually acquired titles to each member. The pilot also offered several lessons that can inform future joint e-book endeavors. Originality/value – Multi-institutional joint e-book DDA acquisition has been attempted elsewhere; however, what is unique about this pilot is that it was managed by seven independent institutions without a central legal entity to oversee it. This paper is a follow-up to the author’s presentation at the 80th IFLA World Library and Information Congress, August 16-22, 2014, in Lyon, France.


2018 ◽  
Vol 25 (3) ◽  
pp. 1085-1103 ◽  
Author(s):  
Abbas Tarhini ◽  
Manal Yunis ◽  
Abdul-Nasser El-Kassar

Purpose The purpose of this paper is to present an innovative agile methodology that proposes fundamental changes in managing the development of in-house information systems in small- and medium-sized enterprises (SMEs) and benchmarks it with one of two database technologies enabling these systems to be both efficient and competitive. Design/methodology/approach The objectives are achieved by presenting an elaborated design of the agile methodology that manages the system development process by addressing three basic components: roles played by system players, process needed to fulfill the system development, and artifacts to document the project. A case study is conducted as a proof of the effectiveness of the proposed methodology and measures whether the selection of the database technology affects the effectiveness of the system development process. Findings Results show that, compared with traditional methodologies, the proposed methodology reduced the cost of system development and testing by 30 percent and enhanced the IT – business alliance. Further, this work found that the selection of a suitable database technology is strongly related to the complexity and interrelationships between the data used. Originality/value Such research did not receive the needed attention (Hunter, 2004) even in the past decade. Successful adoption of IT by companies could be in the form of customized IS which could be expensive for SMEs to adopt due to a lack in technical expertise and financial resources. The proposed methodology has the potential to promote sustainable development through helping SMEs in reducing the time and cost of IT project development.


Subject Outlook for US investigations into airlines collusion. Significance Three carriers, United, American Airlines and Delta, account for 80% of US domestic air travel; Southwest, the leading low cost carrier (LCC) takes much of the remainder. The Department of Justice (DoJ) and the Department of Transportation (DoT) have both launched major investigations into the pricing practices of the airlines. Both regulatory moves imply that the rationalisation of the US airline industry has left passengers vulnerable to predatory behaviour, which would worsen if the US market were further closed to foreign competition. Impacts Low oil prices may provide a long-term boost to profits if airlines move to lock in new hedges. However, manufacturers will be hit hard by an economic slowdown in China, home of two of the largest airlines by fleet size. Increasing wages elsewhere in the US economy will add further pressure to airline labour costs.


2013 ◽  
Vol 3 (4) ◽  
pp. 1-24
Author(s):  
Terence P.C. Fan

Subject area Strategic management and marketing. Study level/applicability Executive education; postgraduate; undergraduate. Case overview By 2004, the low-cost carrier model had just recently been introduced to Southeast Asia. Airlines under this model quickly began taking market share. Singapore's first budget carrier, Valuair, finds itself in fierce competition between two rapidly emerging competitors in the second half of 2004. Valuair needs to expand in order to remain competitive. However, for this to happen the company needs additional access to capital. The CEO, Sim Kay Wee, has begun pitching to investors that his company is a smart low-risk investment. Is Sim right, given Valuair's competitive position and the market environment in which it operates? Expected learning outcomes Students will be able to apply strategic frameworks in order to develop an understanding of Valuair's market position and use this understanding to advice investment decisions. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.


2016 ◽  
Vol 65 (6/7) ◽  
pp. 420-428 ◽  
Author(s):  
Wyoma vanDuinkerken ◽  
Joanne Romano

Purpose The purpose of this paper is to focus on the Joint Library Facility services and how Medical Science Libraries have embraced the Resource in Common model to save service copies for their patron’s use while allowing libraries to reclaim critically needed space and develop library services that better meet the needs of their patrons. Design/methodology/approach The paper begins with a description of the Joint Library Facility and its targeted users. It will discuss how this unique library storage facility shares ownership of its material with other libraries to reduce duplication of low-use print items on library shelves. Findings Although electronic materials are more popular with library patrons, there is still scholarly value in keeping low-use print materials as service copies. Originality/value This paper is a case study of a unique library storage facility that shares ownership of its material with other libraries. Its findings will help other libraries plan and implement their own shared print repository.


2019 ◽  
Vol 9 (5) ◽  
pp. 616-627
Author(s):  
Marina Macedo de Abreu ◽  
Alberto Casado Lordsleem Jr

Purpose The purpose of this paper is to establish and evaluate the concrete loss and labor productivity (LP) indicators in the concreting step of aluminum formwork system (AFS) in construction in Brazil. The loss and productivity indicators are directed to a regional database (Pernambuco, Brazil). Design/methodology/approach Case study was selected as the most appropriate approach. The methodology included data collection in the construction project with 10 residential towers of 320 apartments, in the city of Jaboatão dos Guararapes, Brazil, throughout 82 concrete pouring days using 415 concrete mixer trucks, with a total of 2,582.50 m3 of concrete. Findings The findings identified an average concrete loss of 2.6 percent and the LP indicator varying between 0.15 and 0.97 WH/m3. It could be verified that the loss indicators were influenced mainly by the learning effect associated to the qualification of the labor. In addition, the productivity indicators were strongly influenced by delays at the beginning of the concrete pouring and by problems coming from the sequence of concrete supply. Originality/value LP indicators are still literature restricted, especially considering only the concreting step. The direct observations of this study allow the identification of factors that inhibit productivity. The comparison of indicators for the concreting service between the ASF and the conventional system attests to the speed, low cost and efficiency of the system studied in this paper.


2015 ◽  
Vol 27 (4) ◽  
pp. 585-607 ◽  
Author(s):  
Heesup Han ◽  
Jinsoo Hwang

Purpose This study aimed to examine young, middle-aged and mature air-travelers’ perceptions of the quality levels of in-flight physical surroundings and service encounters, and investigated the drivers of their repurchase intentions in the low-cost airline industry. Design/methodology/approach A sample of 402 passengers on international flights was used. An ANOVA and a series of multiple-regression analyses based on Baron and Kenny’s (1986) suggestion were used. Findings In general, significant differences in quality attributes were identified across age groups. Additionally, the role of these quality components, perceived level of the airfare and trust in the airline were found to be decisive in low-cost airline passengers’ decision formation. Further, the mediating impact of perceived level of the airfare and trust was identified. Originality/value Research about air-travelers’ decision formation by considering their age is rare in a low-cost airline context. Results of the present study provided meaningful insights for researchers and practitioners in the airline industry.


2017 ◽  
Vol 16 (1) ◽  
pp. 7-12 ◽  
Author(s):  
Beate O’Neil

Purpose Over the past few years, there has been a groundswell of interest in corporate employee well-being programmes. The purpose of this study is to examine the reasons why companies should invest in well-being programmes and advise on how to implement one. Design/methodology/approach This study refers to in-depth research carried out by Punter Southall Health and Protection and Reward and Employee Benefits Association (REBA) and also includes a case study. Findings This study finds that poor health has an impact on work productivity, and that with the general population’s health in decline and an increasingly ageing workforce, it is essential for companies to have a defined well-being strategy. Originality/value This study provides HR departments and senior managers with sound examples and advice on how to ensure that their employee well-being programmes are implemented and run successfully.


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