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Westjet: Building a High-engagement Culture Essay

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WestJet: Building a High-Engagement Culture Executive Summary WestJet is facing an urgent problem. The pilots’ contract expires in two weeks’ time and the pilots are unhappy with the offer that has been presented. This has created conflict between management and the pilots as the pilots feel that too many things are being taken away. If a quick agreement is not reached, flights would be grounded, which would impact the bottom line and negatively affect culture. A collaborating approach will need to be applied in order to come to a swift resolution. WestJet is also facing a strategic problem, the longer term impact that growth is having on WestJet’s culture. WestJet’s success and competitive advantage have been a direct result …show more content…

WestJet operates in a non-union environment which means they have lower labour costs and a relatively low risk of labour disputes. Organic growth has occurred to this point, so there have not been any problems integrating cultures and systems. Proven access to capital markets. Excellent equity position: $820 Million cash on books so they are well positioned for growth. Fleet was replaced in 2005. Newer fleet means savings on maintenance costs. Low training and maintenance costs due to using one model of plane. Amenities such as LiveTV and lounges. Easy to attract quality applicants due to culture, profit share and Employee Share Purchase Plan, and decent salaries. Strong brand. Weaknesses Employees at the international destinations are not WestJetters so they may not be acting on the basis of the WestJet CARE-antee. Missing a layer of management that might contribute to poorer communication. Getting messages all the way to the frontline is a challenge. Communication is becoming more and more of a challenge as workforce is spread across a number of countries – working at airports, hangars or in the air. Not capitalizing on the share that they have. WestJet could be charging more for fares, albeit at the risk of losing the loyalty of their guests. Lack of flight destinations or routes, especially internationally. Lack of differentiated seat classes (i.e. first class). Low cost airline - hot meals are sacrificed. Opportunities

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