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How one airline stays profitable
While the vast majority of North American airlines are having troubles with profitability, Canada’s WestJet Airlines had record first-quarter profits. How did they do it?
“While WestJet is feeling the pain of high oil prices, it has conserved fuel by phasing out older aircraft in favor of newer, fuel-efficient Boeing 737 models,” said Bell Globemedia Publishing Inc.
The low-cost carrier also thrived on fares that have risen since price-slashing Jetsgo Corp. closed operations in mid-March of last year.
That helped cut back on the competition.
The airline is also given credit for effective advertising that emphasized stockholding employees have a stake in delivering service and good value to passengers.
WestJet’s destinations include Hawaii and a few flights to England.
Observers expect the airline to increase its overseas expansion but mostly through pacts with foreign carriers rather than adding more planes.
Report by David Wilkening
David
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