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
Direct competitors • Air Canada • Air Transat • Porter Air • Central Mountain Air
Key Financial Data 2010 2009 2008 “WestJet announced the initiation of a quarterly dividend program in November 2010. The first payment of $0.05 per common voting share and variable voting share is payable on January 21, 2011 to shareholders on record on December 15, 2010.” WestJet Traffic Statistics Year Load Factor ASM (billions) RPM (billions) 2010 79.90% 19.535 15.613 2009 78.70% 17.588 13.835 2008 80.10% 17.14 13.731
Accounting, Finance, Legal and Environmental Issues Shareholders and Company Ownership WestJet shares are comprised of 75% common shares and 25% variable shares. Under the provisions of the Canada Transportation Act, WestJet must be controlled by Canadians. To ensure this the common shares must be owned by Canadians. The variable shares may be owned by non-Canadians. The Company was founded in 1996 by Clive Beddoe and a team of fellow entrepreneurs. In July 1999 the airline went public offering 1.5million shares @ $10 starting notice. Clive continues to lead WestJet as founding Shareholder and chairman of the board of directors. The President and CEO is Gregg Saretsky, recently taking over the role from Sean Durfy who stepped down for personal reasons in 2009. Gregg was appointed as CEO in April 2010 and had previously been VP of WestJet vacations with over 30 years of aviation
3100 – Fall 2014 Karen Chiykowski Assignment 1 Canadian Airline sector with focus on WestJet Capital Structure Due: Thursday October 9, 11:30 am for all classes Groups: You may work in a group; maximum of 4 students. You are under no obligation to work in a group and may work with students from any section. TASK: 1. Determine the current WACC for firms in the Canadian airline sector focusing on WestJet Airlines (Ticker Symbol for the S&P/TSX is WJA) 2. Analyze the current capital structure…
S w WESTJET IN 2009: THE FLEET EXPANSION DECISION1 Ken Mark wrote this case under the supervision of Professor Stewart Thornhill solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its…
My Learning from the WestJet Case Study Case Analysis The case study by Munro and Khan (2013) indicates that IT has played a significant role to make the WestJet a remarkable success. WestJet started its function in 1996 with three uses Boeing 737-200 aircraft in five western Canadian Cities. However, by 2011, the airline boasted its activities reaching more than 90 Boeing Next-Generation 737 aircraft, 85 destinations in 18 countries and over nine thousand employees. It became “the second-largest…
CASE APPLICATION TURBULENT FLIGHT PLAN OVERVIEW: Air Canada is Canada's largest airline and flag carrier. The airline had founded in 1937. The company is the world's 11th largest passenger airline by fleet size. The Chairman of Air Canada is David Richardson and the President and CEO is Montie Brewer. Air Canada operates flights to 99 destinations in Canada, the USA, Latin America, Europe, Australia and Asia. Combined with its Jazz network, the airline serves 163 destinations worldwide…
Investment Framework Source: http://sloanreview.mit.edu/article/beyond-the-business-case-new-approaches-to-it-investment/ The case describes how Cheryl Smith plans to introduce process improvements and bring about a radical transformation in IT by aligning IT with the business objectives, changing the governance structure, setting up back up data centers and introducing 24*7 support. All these transformations would help Westjet improved processes, increase in revenue and productivity and continual customer…
What is an IPO and why is it such a big deal? Is this a good idea for JetBlue? Explain. When a privately held company makes its stock available to the general public for the first time on a securities exchange, this is known as the company’s Initial Public Offering (IPO). The IPO can consist of an initial issue of either debt or equity. The IPO process is also referred to as a private company “going public”. There are numerous benefits associated with going public. IPO benefits include enlarging…
framework – Strategic Analysis process COURSE ADMINISTRATION General Intro to BU 481 • In-depth cases that involve complexity, uncertainty, & ambiguity – BU 481 ‘glues together’ insights from all functional areas, looking at the company holistically – Takes time to get used to this focus – there is no one, right answer – You will have to deal with ambiguous, imperfect information – You need to prep deeply and thoroughly (esp. for cases over 2 classes) – Do the assigned readings: Cases closely corresponds…
