November 12-15, 2011
Westjet, established in1996, is a low-cost Canadian air travel company focusing on flights to several destinations canada, the United States, the Caribbean and Mexico. This can be a non-union, self-run employee business that focuses on world-class guest experience in an affordable level. Westjet prides itself on a corporate traditions that combines devoted employees with effective service.
Westjet's business plan, seeing that day one, has been focused on a definite advantage above other air carriers: lower costs and increased customer satisfaction. It executes this plan by purchasing one type of plane to provide main cities in The united states instead of purchasing different aircrafts needed to reach all metropolitan areas and areas. Industry
Westjet operates in a very affected, declining industry. Because the aircarrier industry is one strongly tied with economic progress and operate it is consistently changing. Actually twenty-eight household airlines have disappeared before twenty years because of reduced figures. Fortunately, Westjet has found its niche in the industry.
Through considerable research, Westjet determined an industry segment that was relatively unaccounted intended for in the aircarrier industry: families with young kids who generally travel by vehicle. Westjet offered lower prices on air travel in order to present an alternative to these families. This plan of action took off.
Today, Westjet is definitely the second largest Canadian air travel, only behind Air Canada. It is however, the most successful home airline and continuously developing. Westjet's most direct competition includes Surroundings Canada, Surroundings Transat, Sunwing Airlines and Porter Airlines. Despite the current struggle inside the airline market, Westjet continues to grow.
In order to recognize the accomplishment, growth and direction of Westjet, aspects worth considering must be regarded. A financial analysis had been carried out in order to be familiar with numerical progress and earnings of the firm. This includes overviews of the two interim and annual financial statements such as Statement of Earnings, "balance sheet" and Declaration of Stored Earnings. The Statement of Earnings has become used to examine profitability more than a 5 season period which has a particular focus on Sales, Operating expenses and Net Profits. This includes the calculation of earnings every share and price-earnings percentage. The Balance Linen has been utilized to better acknowledge the property and first step toward the company compared to its financial obligations and responsibilities. The calculations of seed money, current rate and debt-to-assets has been performed. These quantities will not only demonstrate growth as time passes of the company but as well how the amounts have when compared with its close competitors.
However , quantities do not always tell the full story. Consequently, I have assessed the company procedures and desired goals in order to genuinely see the successes of the company. This includes its consideration of all GAAP policies and concern for investor information. Also, I regarded outside economic factors that have affected the earnings of the business in the past and also how they might affect the operations in the future. We analyzed financial growth and decline, aircarrier use in comparison to other transport and finally, customer experiences.
In order to totally recognize the credibility and faithful portrayal of Westjet financial transactions, the use of accounting policies and procedures has to be considered. Even though one can confidently say Westjet financial statements are continually prepared according to GAAP guidelines, we may check into further detail.
First, it is useful to consider the application of setting up the monetary statements. Westjet has a unique management crew separate from the other managing government bodies that prepare the statements. This segregation of tasks allow for a faithful portrayal. This displays strong interior control. To assist, Westjet's claims are audited by impartial...
Cited: 1 ) Westjet Corporate and business Website http://www.westjet.com/guest/en/media-investors/index.shtml
2 . SEDAR http://www.sedar.com/FindCompanyDocuments.do
3. Grescoe, Paul. Flight Route вЂ“ How Westjet is Flying High in Canada's Most Turbulent Sector. Wiley