Description: Despite increasing competition from newer low fare airlines such as NewLeaf Travel Co. Inc. and Canada Jetlines Ltd., Westjet Airlines reported third quarter earnings of $116 million this week. Westjet intends to continue its strategy of being a low cost provider in the face of this competition. The airline also noted it is looking to acquire more wide-body jets to support its new routes between Canada and Europe.
Date: November 1, 2016
1) What did you learn about the airline industry from this article?
2) Chapter 9 of Wiley’s Financial Accounting: Tools for Business Decision Making discusses Westjet’s strategy for the airplanes in its fleet. What are the the two methods it uses?
3) What are some of the key costs that the airline industry has to control in order to be successful?