Environmental Scan

Air line Industry

Course: MKTG-417

Prepared for: Charles Chuck

Prepared by: Razi Shoaib

Student ID: 300519073

Dated: April 13, 2009

 Environmental Scan of Airline Industry

A company’s business environment comprise of its external influences that affect internal
decisions and performances. Depending on the environmental conditions, managers and
executive decision makers are greatly influenced by the industry’s framework such as
economical, social, technological, competitive & regulatory factors. To prevent negative
influences companies engage in environmental scanning to identify desirable and undesirable
factors to retain cost effectiveness and reduce inefficiency. More importantly the purpose of
environmental analysis is to distinguish one’s business from the others by analyzing resources;
unique products and service differentiation opportunities; factors for creating value chain and
means to dissociate from competitors. The airline industry thus can be analyzed from the
following perspectives:

Economic
Business travelers will spend more in 2009 on their trips, but the rate of increase will be held in
check by current economic conditions, says American Express in its annual global business
travel forecast released today.

The average cost per domestic trip in North America will increase by 1.2% to $1,002 in 2009,
the company estimates. Last year, American Express estimated a 3.9% increase for 2008.

The average cost per international trip for North American business travelers will increase by
3.5% to $3,452. Last year, American Express estimated a 7.8% increase for 2008.

"Travel costs will not change significantly in 2009," says Hervé Sedky, vice president of
American Express, Global Advisory Services.

While the cost increase in 2009 will be more "steady," corporate travel managers will continue to
scrutinize their spending patterns closely, he says. "Savvy organizations are making sure that
travel not yielding revenue is eliminated or substituted by use of technology."

American Express's results mirror other travel survey findings. Earlier this month, the National
Business Travel Association released a survey that underscored travel managers' concern over
rising costs. Its members who responded to the survey said domestic trips now cost $140 to
$175 more than at the end of 2007. International business travel costs have increased $315 to
$400 per trip since December. More than 50% also said new airline fees are encouraging less
air travel and are eliminating all non-essential corporate travel.

KDS, a travel and expense management firm, also said a recent survey of "hundreds of clients"
revealed that 54% of respondents believe that the financial crisis will force cuts in travel
between now and March 2009. More than one-third said they have had to cancel booked trips.

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Economy airfares for domestic trips could either fall by 5% in 2009 or increase up to 5%.
International fares in business class could rise 1% to 6%. American Express couldn't further
narrow the forecast ranges because "the economic conditions that we are facing in the last few
months are unprecedented," says Frank Schnur, vice president of American Express, Global
Advisory Services North America.

The airlines' reduced capacity, ticketing restrictions (such as the Saturday-night stay rule) and
additional fees for checking bags and other ancillary services will drive overall air travel costs
higher. But sluggish demand and potentially falling fuel prices will keep the rate of increase in
check, according to American Express.
2008 has been a really interesting year for aviation. If we look at the airlines we see many
airlines on the verge of bankruptcy and several different strategies to deal with this. Some are
looking to raise airline fares and add in extra fees for nearly every possible extra they can think
of, and this is having an adverse effect on customer loyalty and satisfaction. Other airlines are
looking to consolidate and merge with rivals; some are adding fees and looking to merge. It's a
free for all.

The discount airlines i.e. Westjet are doing okay, but no airline these days can claim to be break
the sound barrier. The fuel costs are prohibitive and even if all the airlines raise fares, there is a
ticket price where much of the flying public will just stop flying. And this can be seen as many
airlines are retiring their less efficient aircraft and thus, taking capacity out of the market. The
supply and number of airliners is being reduced out of prudent business decisions to cut non-
profitable routes.

This could be an ugly year for the Airlines and we might see a major carrier file bankruptcy,
perhaps several. The Online Think Tank agrees with this and believes some carriers may hold
out until 2009 or 2010, but the shakeup in the industry will continue and major bankruptcy
announcements are indeed forthcoming.

One of the most important aspects that have greatly affected the world’s transportation system
is the high fuel prices. Rising fuel prices has increased jet fuel prices even more than crude oil
prices. In March 2008 cost of crude oil was $105/barrel. Apart from taxes jet fuel prices have
become more costly than crude oil costs which has greatly affected the bottom-line for many
airlines.

However, Hurricane Katrina and 9/11 lone events cannot be held responsible for the downturn
of the industry. The airline industry may have paved way for mature transportation industry the
world over but the fact remains that the industry has been evolving for the worse over the past
decades. Airline industry is expected to post a total of $8 to 10 billion loss due to high fuel prices
and lessened air travellers. The major airlines have been hard hit as they have widespread
fleets, staffs and investments in technologies which are costly to the companies’ bottom-line
profit and investments.

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Social
The backbone of the airline industry is people. Individuals in the management, technical and
crews all are responsible for undertaking the task of serving their customers with the utmost
care and excellence. These individuals are trained and tailored to the industry’s needs before
they are allowed to work. They need to meet certain standards of service and technical
knowledge designed to satisfy the customers. Companies invest millions of dollars to improve
the knowledge of their workers. These costly trainings are critical for the airlines’ success and
allow them to achieve stakeholders and shareholders targets. But when airline such as Westjet,
low cost carriers have a difficult time to gauge how much it should invest in its people before it
could reach the desired customer satisfaction and profit level. Traditionally airlines do not
incorporate training programs for its people as the majority of the companies cannot afford to or
do not have the infrastructure to serve the required training. Instead they turn to custom training
programs offered by third party vendors in order to fulfil that need.

From the customer’s perspective, the airline industry in the recent years especially after the
events of 9/11 proves to be a source for fear. People are no longer willing to fly airlines as they
are fearful of the repetition of terrorist attacks. The quality and service given by the airlines
locally are no longer commendable. Now people prefer to travel by road or train so the airlines
industry has been subject to a long period of low traffic that proved to be detrimental to the
company’s performance. Major airlines turn towards national and regional customers to meet
the desired traffic to achieve profitability targets.

Technological Factors
• Internet as a way to book flights, check-in, and check flight status
• Always new and improved software for airlines (Travelport)
• New pilot training courses
• New security technology
• New Aircraft

This factor is perhaps one of the most important and critical one in the airlines industry as it is
the source for business potential and customer satisfaction. Airlines in the US and Canada alike
invest in their aircrafts, pilots and information technological systems to improve efficiency in the
long run. Air Canada for example uses only 737 next generation planes while its competitors
uses older planes which are fast being replaced by newer aircrafts.

Airlines today have to focus on being online. For most of the companies websites represent
customer and employee portals whereby the management can gauge the performance of the
company at a click of a button. For example Westjet invest in websites that allow its employees
to access internal information online at any time they want. One more technological
development such as online reservation system and online check-in system and printable
boarding passes which reduce time and increase efficiency in the booking and consumption
process.

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In the airline manufacturing industry we have Boeing vs. Airbus. Boeing has bet on new carbon
composite aircraft making them lighter and thus much more efficient, while their arch enemy and
market rival Airbus is going for the world's largest aircraft so they can carry more passengers on
a single flight thus, cutting the cost per passenger. Both strategies seem to be working as orders
for the A380 Airbus and 787 are strong.

Competitive
Porter Airlines is a regional airline based in Toronto, Ontario, Canada. Porter operates
regularly-scheduled flights between Toronto and locations in Canada and the United States
using turboprop aircraft. Porter's use of the Toronto City Centre Airport on Toronto Island has
been controversial.
Air Canada is Canada's largest airline and flag carrier. The airline, founded in 1936, provides
scheduled and charter air transportation for passengers and cargo to 160 destinations
worldwide. Air Canada is the world's 8th largest passenger airline by fleet size, and the airline is
a founding member of Star Alliance, an alliance of 21 member airlines formed in 1997.

Air Canada Jetz is an airline based in Montreal, Quebec, Canada. It operates a premium
business service for corporate clients and professional sports teams.

Air Transat A.T. Inc. is an airline based in Montreal, Quebec, Canada, operating scheduled and
charter flights and serving 90 destinations in 25 countries.

CHC Helicopter: (Canadian Helicopter) Corporation is the world’s largest global commercial
helicopter operator. CHC has a fleet of 320 helicopters and has been providing helicopter
services for more than 50 years and currently operates in over 30 countries.

SkyLink Aviation Inc. is a Canadian based international aviation group that specializes in
Project Management, Air Charters, Aviation Support, Aircraft Maintenance, Air Courier,
Executive Air Charters as well as Flight Planning and Clearance Services.

Skyservice Inc. is business aviation, air ambulance and charter airline (Skyservice Airlines)
based in Etobicoke, Ontario, Canada. It owns around 50 business and airline aircraft and
employs more than 2000 people.

Sunwing Airlines Inc. is an airline based in Canada. It is a subsidiary of Sunwing Vacations

offering charter service to Canada, United States, Mexico and the Caribbean. Sunwing operates
under the name RED SEAL VACATIONS.

WestJet Airlines Ltd. is a Canadian low-cost carrier based in Calgary, Alberta, that flies to
most major cities in Canada and serves destinations in the United States, Mexico and the
Caribbean. WestJet is the second largest Canadian carrier behind Air Canada.

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CanJet Airlines is a low-cost chartered airline based in Enfield, Nova Scotia, Canada at the
Halifax International Airport in the Halifax. It operates contract and ad hoc charters throughout
Canada and the USA.

In the travel industry competition is inherent in substitutes. Cars, trains and water transport are
close competitors to air travel which expose it to high risk of substitutes. Airlines are forced to
keep one price or around it to be able to survive the competition as a deviation in the price level
is likely to push the customers to alternatives that are easily available and accessible. Operating
within such a competitive environment is not only difficult but it also forces one to be extremely
price conscious especially when deciding the prices of the category of services the company
wants to target.

AirTran, WestJet, and Air Canada all offer low cost service at similar price range. However, to
differentiate each of these companies have offers of sales discount to be able to secure more
passengers. Hence a commuting ticket of $30 is appealing for a train traveller but an airline
ticket of $25 would be most appealing as it is fast, efficient and involves less hassle (if the airline
is keen on differentiation). AirTran in this regards have been unique in its approach. Having
realized that, the company has not decreased its price but rather focused on superiority of
service like including fast booking and check-in systems to appeal to the consumers. Others like
WestJet focus on luxuries like leather seats and TVs to ease the consumer’s travel discomfort.
Delta Air and Air Canada however, do not really focus on price competition which exposes them
to substitute risks. In the long run they have to make decisions to lower prices or adopt strategic
product differentiation in order to retain their customers from shifting to competitors.

Regulatory
• Safety Standards
• Certificates
• Airplane Certificates
• Operating Certificates
• Certificates for Airline Personnel
• Airport Certificates
• Unionization
• Landing Rights

Operating in a cross border network of alliances and partnerships, North American airlines like
multinational companies are subject to international and national regulations in terms of
assignment of routes and destinations; international aviation regulations; partner’s legal
standing as well as local laws. These constraints not only leave little room for airlines to operate
in but are also the sources for its highly efficient value chain. From top management to the
suppliers and the customers everyone in the value chain has access and rights to legal
assistance.

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Another aspect is industrial relations. Personnel in the airlines industry from pilots to cabin crew
to technicians everyone work in the capacity and provisions given by the laws prevalent globally.
For this reason, everyone is conscious of their rights to legal aid if required. Since most of the
airline personnel in the world have associations and unions they tend to have an upper hand
over management. The management therefore has to comply with their demands if it is within
the capacity of the law. In the low-cost carrier industry however, this is rather difficult to comply
with especially if the nature of the demand is monetary such as salaries, benefits or sharing of
profits which compromise profitability. For this reason management try to avoid or refuse
engaging in labour disputes as it is rather difficult for low cost carriers.

Apart from the above, ad hoc events like 9/11 and terrorist attacks in the US as well as across
the world have had great impacts on the airlines. Political war resulting in emergencies not only
affects the airline industry but also its consumers. Fearful consumers are not keen on travelling
by air any more despite discounted sales prices and premium services. Even if players
restructure and revise strategies to lure customers, it is rather difficult to convince a
psychological fear. Customers have only started to travel by air recently with the assurance that
airport security and airlines have taken precautions for preventing such events from happening
again.

Trends:
One year ago, rising oil prices were taking travel costs to new heights and business travelers
were feeling the pinch. Now travel prices are falling again, fuelled by the global recession, and
airlines, hoteliers and car rental companies are taking evasive actions to survive. Here are
trends caused by the global economic meltdown, and what they will mean for travelers in 2009:

1. Air travel on sale. With fewer travelers in this sputtering economy, airlines are desperately
trying to fill seats. From January 2007 through July 2008, airlines raised fares 32 times,
according to FareCompare.com. Less than two months into the new year, airlines have
initiated 25 fare sales and prices are back to pre-2007 levels in many markets. If you still have
funds in your travel budget, this is a good time to fly.

2. Capacity cuts continue. To counteract declining travel demand, airlines continue to trim their
schedules. Most have already eliminated 10% to 20% of domestic flights and the Air Transport
Association projects the airlines will cut another 3% to 10% this year. This means fewer seats
available for last-minute purchase and more involuntarily denied boarding on oversold flights.

3. Ancillary fees proliferate. Although base airfares are declining, airlines are unlikely to
relinquish the added revenues from those annoying ancillary fees for checked luggage, meals
and snacks, in-flight entertainment, seat selection and more. Airlines expects to earn $1.2 billion
in ancillary fees in 2009. It's difficult to avoid most fees unless you are an elite member of that
airline's frequent-flier program.
Unfortunately, hotels are learning from airlines to replicate these most successful, but hugely
unpopular, fees. Some hotels are quietly removing amenities like cookies or fruit from lobby
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areas, or newspapers or toiletries from guest rooms. In other cases some hotels have begun
charging guests for formerly free services like Internet access.

4. Trimming and downgrading travel spending. A recent survey by the Association of

Corporate Travel Executives found over 70% of corporations trimming their travel budgets by
10% to 20% this year. Many corporations are downgrading travelers from business to economy
class on long-haul flights and lowering the hotel class used for business travel. If you're lucky
enough to fly business class and rent at upscale hotels, you'll have an easier time finding flights
and rooms.

5. Pursuing the business traveler. When times are tough, travel suppliers focus on their best
customers, those who generate most of their revenue and profit. Even in this dismal economy
many airlines are upgrading first- and business-class cabins and service, particularly on long-
haul routes. But the pursuit of business travelers isn't limited to long-haul, global airlines.
Southwest of USA recently implemented priority boarding and free cocktails for full fare
"Business Select" travelers, and pushed families with small children back in the boarding
process. Southwest of USA has also installed special seating with power outlets and USB
hookups in their boarding areas, and is touting its no-change-fee policy to attract business
travelers.

6. International bargains abound. In recent years, airlines expanded international service to

capitalize on the booming global economy. Long-haul markets were a safe haven for airlines
eager to avoid low-cost competition at home. Now airlines everywhere have trimmed
international capacity by as much as 15% and that may not be enough. The International Air
Transport Association reported premium (first- and business-class) travel declined by 13.3% in
December over the previous year. A resurgent U.S. dollar is discouraging foreign visits to this
country, resulting in more unsold seats. Airlines have responded with deeply discounted fares
for international travel. I've seen international business-class fares to Europe around $1,000
each way and just a few hundred dollars more for Trans-Pacific flights. Now is the time to seize
these bargains before airlines reduce their capacity enough to match slumping international
travel demand.

7. Empty hotel rooms and rental cars. Forty percent of hotel stays are tied to flights,
according to a recent report produced by Promedia Travel. With fewer flights and fewer air
travelers, hotels and car rental businesses are hurting too. While airlines can reduce capacity
relatively quickly by grounding airplanes, it is more difficult for hoteliers and car rental
companies to dispose of excess capacity, paving the way for bargains in this buyer's market.

8. Decline in meetings and attendance. Meetings are another casualty of the economic
downturn. A recent survey conducted by Meeting Planners International and American Express
indicated 7% of 2009 meetings had already been cancelled, and meeting attendance is
expected to be down by 5%. Meeting cancellations and fewer attendees also adversely affect
hotels. If you are planning a meeting, this is the time to get a sweet deal.
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9. Right-sizing the regional jet (RJ). Originally built to carry under 40 passengers, RJs have
been stretched through the years to hold 50, 70, 90, or as many as 100 passengers. Though
most RJs with fewer than 50 seats have disappeared and are no longer manufactured by
Bombardier and Embraer, airlines continue to downsize and deploy RJs on routes formerly
served by larger Airbus and Boeing aircraft. RJs have even entered service on the shuttle
between Washington and New York, a route once exclusively flown by larger Airbus 320 series
and Boeing 737 aircraft. While the newer RJ models offer more personal space, many
passengers still don't like flying smaller airplanes, which will also be more crowded with fewer
seats to fill.

10. Resurgence of Internet fares. When travel demand collapsed after the 9/11 attacks,
airlines, hoteliers and rental car companies discovered a new way to dispose of un-saleable,
distressed inventory through the rapidly growing Internet. Travel suppliers found they could
advertise and sell distressed, last-minute inventory at little cost. Third-party websites like
Expedia, Orbitz, and Travelocity, and "opaque" bidding sites like Hotwire and Priceline,
flourished as travelers discovered bargains in cyberspace unavailable elsewhere. As travel
demand recovered, suppliers offered fewer deals through these channels. With the industry in
turmoil again, distressed inventory is prevalent once more on third-party websites, and travelers
are likely to find better deals online than rates negotiated by their corporate travel departments.
For those independent or unmanaged business travelers not bound by a corporate travel policy,
great savings could be just a few mouse clicks away.

11. Green initiatives

Since 2001, WestJet has spent over $2 billion upgrading its fleet to the more fuel-efficient
Boeing Next-Generation 737-series aircraft. Emissions from these aircraft are 30 per cent lower
on a per person basis than the fleet of 200-series aircraft WestJet replaced. WestJet currently
has one of the youngest and most fuel-efficient fleets in North America, equipped with blended
winglets, which also significantly reduce fuel burn and emissions.

Marketing Mix
Product:
[The term “Product” refers to tangible physical product as well as intangible (service).]
Westjet Airlines (Westjet) is a Canadian regional airline carrier, which provides scheduled
services, international charter and trans-border air transportation services. The company
provides air transportation services to and from 55 destinations across Canada, US, Mexico and
the Caribbean regions. It offers services to 30 Canadian destinations, 14 US destinations, 4
Mexican destinations and 7 Caribbean destinations.
They are using the world class aircraft to provide the fastest and best services.
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Features:
• Save time & trip and book ticket online.
• Online flight status.
• For customer easiness they are providing online check in.
• Well trained cooperative staff with the best customer services is always available for the
assistance.
• Westjet offers a buy on board meal (Fresh and healthy food) service program with
sandwiches, alcoholic beverages and some snacks for purchase. In some flights, the
sandwiches offered on board are made by local delis in the departure city.
• WestJet offers a single class of service. All seats have personal seat-back screens with
24 channels of TV. Movies are available for purchase. The system utilizes the Bell TV
satellite network, and channels include Global TV, CTV, CBS, CityTv, TreeHouse
TV, ABC, NBC, CBC, TSN and a WestJet Channel, which shows a regional map with
the aircraft's location, GPS derived altitude, and groundspeed. WestJet added LiveTV
onto their 737-600 aircraft; every aircraft in the fleet is now equipped with the system.
• Passengers are allowed two carry-on bags, not to exceed 46 linear inches and 35.5
linear inches, respectively, or 22 pounds each. Two checked bags are allowed free of
charge, not to exceed 62 linear inches or 50 pounds each. Additional checked bags
including oversize or overweight bags can also be taken into the plane but with extra
cost.
• Southwest and WestJet have announced a codesharing agreement, which will
significantly expand WestJet's US network.

WestJet Lounge Facility:

Guests can also enjoy all the comforts of WestJet lounges. Now open at airports in Calgary,
Winnipeg and Vancouver, WestJet lounges offer guests a quiet place to work or relax before
their flight.

Servisair offers WestJet guests a quiet refuge from the frustration of busy airport terminals. Pre-
book lounge access online and receive the best rates available. Services include:

 Comfortable leather seating

 Bar service (beers, wines and spirits)
 Complimentary soft drinks, beverages and snacks
 Newspapers and quality magazines
 Access to business facilities including internet and WiFi
 Charges may apply to these services

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Relax, work, have a drink or just catch up with the news before the flight - it's passenger’s
choice. So, whether they are travelling on holiday or on business, they get the journey off to a
flying start by treating to an exclusive upgrade in a comfortable Servis-air Lounge.

Price:
The price is the amount a customer pays for the product/Service. It is determined by a number
of factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the price of
product if other competitors have the same product.
• Pricing Strategy:
WestJet Airlines is the industry leader in low cost airfare. When WestJet entered the
market in 1996 they employed a market penetration pricing approach. They wanted to
provide the best service for the lowest possible price. They saw that if they cut out
certain unnecessary benefits they could lower their ticket price to a level far below that of
the competition. They do not have meals, first class sections in the plan. This strategy
has been very cost effective and WestJet passes the savings on to the customer. They
chose to focus on pleasure travelers and low-income travelers opposed to business
travelers. This allowed them to take advantage of a market, which was often ignored by
other airlines.

WestJet is not concerned with the prices of other airlines. They do not engage in pricing
to meet competition, or pricing below competition.

Cost controlling is very important in the airline industry. WestJet is very good at
controlling their costs. They offer a no frills service for people who want to get to their
destination for as little as possible, and are not concerned about the bells and whistles
like in-flight movies. WestJet also realized that when their planes are on the ground, they
aren't making money. They decided to keep their planes in the air as much as possible
and have worked hard to keep a low turnaround time. They manage to unload
passengers and load new passengers for the next flight within twenty minutes, which is
shorter than the industry average. WestJet also uses only one kind of plane, the Boeing
737, in order to reduce costs of...

West Jet’s ticket price varies and depends on the seasons, time, passenger’s age and
destinations.

Promotion:
In this competitive world promotion of any company, product and name has become necessary.
For the result oriented promotion WestJet is very much focused on Logos (corporate identity),
Websites, Advertising, Sales promotions, Publicity, Personal selling, Brochures, Stationery,
Animated Banners, Illustration, Print Media and more.
WestJet has watched its bookings shrink during the recession, prompting the carrier to roll out a
lowest-price guarantee promotion to lure nervous consumers back to the skies.
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WestJet's capacity rose an estimated 7 per cent in the first quarter of 2009, and the carrier is
counting on innovative ways to attract recession-weary travellers to fill seats on traditional
routes and new flights.
WestJet is hoping to woo travellers across the country, with "certainty in uncertain times,"
including deep discounts for flights from Vancouver, Edmonton, Yellowknife, Hamilton and
Montreal. The Vancouver-Edmonton route is tumbling as low as $59 one-way, Montreal-
Vancouver is $99 one-way and Vancouver-Las Vegas is $89 one-way.
Other routes don't get the same deep discounts, but they'll still get a boost from seat sales. For
selected Toronto-Calgary flights, fares during the promotion are offered between $99 and $179
one-way. In the spring of 2008, the popular route typically ranged from $149 to $279 one-way
on WestJet and rival Air Canada.
WestJet hopes to garner more than $50-million in revenue for bookings over the next week with
its new price guarantee promotion.

Furthermore for the sales promotion WestJet offering Airlines coupons and promotion codes
through their business partners, which can be used by following procedure:-

What are different kinds of WestJet Airlines coupons, WestJet.ca coupon codes and discount
codes?

1. Dollars off or Percent off

Dollars off coupons usually give you discount on entire purchase or order of certain
amount.
Percent off coupon codes give you discount on your entire purchase.
2. WestJet Airlines Sale/Discount codes
This kind of deals and coupon codes can usually be applied only to specific product or
group of products. In this case discount will not work if coupon code is entered if the
product is not in the shopping cart.
3. Hot Products
WestJet Airlines coupons that give you discount on popular items that are hard to find on
sale anywhere else.
4. WestJet Airlines Free Shipping/Shipping Discount
This kind of coupons save money on shipping. Most of WestJet Airlines free shipping
coupons have a certain order amount requirement. Other shipping promotions may offer
shipping upgrades from standard shipping to expedited shipping.

Place (Distribution):
Place/Distribution is about getting the products to the consumer.

WestJet tickets can be booked through travel agents; Westjet web site www.westjet.com,
different business partner’s websites i.e. www.expedia.com, www.kayak.com.

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Online booking of tickets & concept of e-ticket is eliminating brick & mortar system.

Other way to approach Westjet is their toll free number 1-888-WESTJET(937-8538). Monday -
Sunday: Open 24 hours

Business Overview & Executive Summary:

Westjet Airlines (Westjet) is a Canadian regional airline carrier, which provides scheduled
services, international charter and trans-border air transportation services. The company
provides air transportation services to and from 55 destinations across Canada, US, Mexico and
the Caribbean regions. It offers services to 30 Canadian destinations, 14 US destinations, 4
Mexican destinations and 7 Caribbean destinations.
The company's destinations in Canada include; Victoria, Comox, Deer Lake, Vancouver,
Abbotsford, Prince George, Kelowna, Grande Prairie, Calgary, Edmonton, Fort McMurray,
Saskatoon, Regina, Winnipeg, Thunder Bay, London, Hamilton, Toronto, Ottawa, Montreal,
Quebec City, Saint John, Sydney, Yellow Knife, Moncton, Charlottetown, Halifax, Kamloops,
Kitchener-Waterloo and St. John’s. Its American destinations include Honolulu. Maui, Los
Angeles, Palm Springs, Las Vegas, Phoenix, Tampa, Orlando, Fort Myers, Fort Lauderdale,
Kona, New York, San Diego and San Francisco. Westjet also provides its airline services to
Mexico and the Caribbean.
Westjet Airlines operates four direct wholly-owned subsidiaries, WestJet Investment, WestJet
Operations, WestJet Aircraft Acquisition and WestJet Vacations.
The company recorded revenues of C$2,151.5 million (approximately $2,013 million) during the
fiscal year ended December 2007, an increase of 21.9% over 2006. The operating profit of the
company was C$407.9 million (approximately $381.6 million) during fiscal year 2007, an
increase of 51.2% over 2006. The net profit was C$192.8 million (approximately $180.4 million)
in fiscal year 2007, an increase of 68.2% over 2006.
WestJet Airlines Limited. The Group's principal activity is to provide airline transport services. It
operates a fleet in North America, which comprises 76 Boeing Next-Generation 737 aircraft
equipped with legroom, leather seats and live seatback television. Its fleet includes the Boeing
Next-Generation 737-600, 737-700 and 737-800. The Group operates in Canada and in
America and during the year it began service to the new destinations, such as Kamloops;
Quebec City, Kona, New York City (via Newark); Bridgetown, Barbados, La Romana, Dominican
Republic, as well as the Mexican destinations of Cancun and Puerto Vallarta.
Company: WestJet Airlines Limited
Ticker: WJA
Exchanges: TOR
2008 Sales: 2,549,500,000
Major Industry: Transportation
Sub Industry: Airlines
Country: CANADA
Employees: 6187

WestJet, Inc. is a consumer airline in its booming stage. In the beginning management was
trying to take advantage of a specific gap in the short-haul domestic travel market but now they

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are expanding internationally. The gap in the availability of low cost service in and out of the
Anytown hub coupled with the demand for passenger travel on selected routes from Anytown
indicates that a new entrant airline could be expected to capture a significant portion of current
air travel business at that hub.

Keys to Success
• The keys to success are:
• Obtaining the required governmental approvals.
• Securing financing.
• Experienced management. (Already in place).
• Marketing; either dealing with channel problems and barriers to entry; or solving
problems with major advertising and promotion budgets. Targeted market share must be
achieved even amidst expected competition.
• Product quality. Always with safety foremost.
• Services delivered on time, costs controlled, marketing budgets managed. There is a
temptation to fix on growth at the expense of profits. Also, rapid growth will be curtailed
in order to keep maintenance standards both strict and measurable.

Company overview, Back ground and Historical Analysis:

Westjet Airlines (Westjet) is a Canadian regional airline carrier, which provides scheduled
services, international charter and trans-border air transportation services. The company
provides air transportation services to and from 55 destinations across Canada, US, Mexico and
the Caribbean regions. It offers services to 30 Canadian destinations, 14 US destinations, 4
Mexican destinations and 7 Caribbean destinations.
The company's destinations in Canada include; Victoria, Comox, Deer Lake, Vancouver,
Abbotsford, Prince George, Kelowna, Grande Prairie, Calgary, Edmonton, Fort McMurray,
Saskatoon, Regina, Winnipeg, Thunder Bay, London, Hamilton, Toronto, Ottawa, Montreal,
Quebec City, Saint John, Sydney, Yellow Knife, Moncton, Charlottetown, Halifax, Kamloops,
Kitchener-Waterloo and St. John’s. Its American destinations include Honolulu. Maui, Los
Angeles, Palm Springs, Las Vegas, Phoenix, Tampa, Orlando, Fort Myers, Fort Lauderdale,
Kona, New York, San Diego and San Francisco. Westjet also provides its airline services to
Mexico and the Caribbean.
Westjet Airlines operates four direct wholly-owned subsidiaries, WestJet Investment, WestJet
Operations, WestJet Aircraft Acquisition and WestJet Vacations.
The company recorded revenues of C$2,151.5 million (approximately $2,013 million) during the
fiscal year ended December 2007, an increase of 21.9% over 2006. The operating profit of the
company was C$407.9 million (approximately $381.6 million) during fiscal year 2007, an
increase of 51.2% over 2006. The net profit was C$192.8 million (approximately $180.4 million)
in fiscal year 2007, an increase of 68.2% over 2006.

The WestJet experience

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WestJet strives to offer guests a friendly, efficient and relaxing experience from time of booking
to final destination. Guests now have a variety of innovative options to make their travels as
smooth as possible. WestJet’s check-in choices include web check-in; mobile check-in, self
serve check-in kiosks at most airports or traditional counter check-in. Some of WestJet’s airports
have also adopted the cost-effective and space-saving flow-through check-in. WestJet was the
first airline in North America to launch the electronic boarding pass which is accepted at all
Canadian destinations.
WestJet’s fleet of Boeing Next-Generation 737 aircraft are equipped with increased legroom,
leather seats and live seatback television provided by Bell TV. Guests can also enjoy all the
comforts of WestJet lounges. Now open at our airports in Calgary, Winnipeg and Vancouver,
WestJet lounges offer guests a quiet place to work or relax before their flight.

Community spirit
WestJet brings caring from 40,000 feet right down to the communities it serves. Through
programs that focus on children’s health, community festivals and amateur sports, WestJet
supports over 800 community initiatives across Canada. The WestJet Cares for Kids program
supports charities that work to address children’s health and wellness issues. The WestJet Fun
‘n Festival Series partners with festival events such
as Just For Laughs Festival in Montréal and Toronto, Global ComedyFest in Vancouver and the
Calgary Stampede. WestJet is committed to helping Canada’s young skiers reach the podium
through its sponsorship of Alpine Canada Alpin, Canada’s Alpine Ski team and each of the
provincial alpine ski organizations through the 2010 ski season.

Green initiatives
Since 2001, WestJet has spent over $2 billion upgrading its fleet to the more fuel-efficient
Boeing Next-Generation 737-series aircraft. Emissions from these aircraft are 30 per cent lower
on a per person basis than the fleet of 200-series aircraft WestJet replaced. WestJet currently
has one of the youngest and most fuel-efficient fleets in North America, equipped with blended
winglets, which also significantly reduce fuel burn and emissions.
WestJet was the first carrier in Canada to adopt Required Navigation Performance (RNP)
approach technology to land aircraft. RNP utilizes Global Positioning System satellites to allow
aircraft to fly more direct, precision approaches to airports. This in turn shortens flight time and
miles flown, reducing fuel burn and emissions.
Construction of WestJet’s new Calgary campus facility is nearing completion. The building is
being constructed following the LEED (Leadership in Energy and Environmental Design)
program which promotes buildings that are environmentally responsible, profitable and healthy
places to live, work and play. Currently, only 10 per cent of buildings in North America strive for
a LEED rating.

Milestones
1996
• WestJet founded by Clive Beddoe, Mark Hill, Tim Morgan and Donald Bell.
• February 29 - WestJet takes to the skies with 220 employees and three aircraft
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 (Boeing 737-200s) to the cities of Vancouver, Kelowna, Calgary, Edmonton and
Winnipeg.
• Later that year, WestJet adds Victoria, Regina and Saskatoon to its route
network.

1997
• WestJet begins service to Abbotsford.

1999
• WestJet begins service to Thunder Bay, Prince George, Grande Prairie and Brandon
(discontinued in 1999, returned in 2001 and discontinued again later that year).
• In July, WestJet completes its Initial Public Offering of 2.5 million common shares.

2000
• WestJet begins service to the Eastern Canadian cities of Hamilton, Moncton and
Ottawa, creating an Eastern network with Hamilton as the hub.
• WestJet announces its first stock split.

2001
• WestJet accepts delivery of its first Boeing Next-Generation 737 aircraft (a 737-700).
• WestJet begins service to Fort McMurray, Comox, Sudbury (discontinued in
September 2003), Thompson (discontinued in November 2002) and Sault Ste. Marie
(discontinued in September 2003).

2002
• WestJet begins service to two new Ontario destinations, London and Toronto.
• In February, WestJet successfully offers three million common shares yielding
net proceeds of $78.9 million.
• WestJet announces its second stock split.
• WestJet named one of Canada’s Top 100 Employers.

2003
• WestJet begins service to the new markets of Montréal, Windsor (discontinued
in October 2005), Halifax, St. John’s and Gander (discontinued in April 2005).
• WestJet named Canada’s second-most respected corporation by Ipsos Reid.

2004
• WestJet begins transborder service in the fall to the cities of Los Angeles, San
Francisco (discontinued in January 2006), Phoenix, Fort Lauderdale, Tampa, Orlando
and New York City via LaGuardia (discontinued in July 2005).
• WestJet announces its third stock split.
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 • WestJet installs the first live seatback television onboard its Next-Generation
aircraft.

2005
• WestJet begins service to Charlottetown, Las Vegas, Palm Springs, San Diego
(discontinued in October 2005) Maui, Honolulu and Fort Myers.
• WestJet named Canada’s most admired corporate culture (Waterstone Human
Capital).
• WestJet retires the last Boeing 737-200.

2006
• WestJet named Canada’s most admired corporate culture for the second year in
a row (Waterstone Human Capital).
• WestJet celebrates its 10th birthday in February.
• WestJet begins service to West Palm Beach (discontinued in April 2008) and
Nassau, Bahamas (its first international destination).
• WestJet Vacations is launched in June.

2007
• WestJet launches community investment program WestJet Cares for Kids.
• WestJet adds service to Kitchener-Waterloo-Cambridge, Saint John and Deer Lake.
• WestJet is first airline in North America to launch the electronic
boarding pass.
• WestJet begins service to Montego Bay, Jamaica; Puerto Plata, Dominican
Republic; Punta Cana, Dominican Republic; Mazatlan, Mexico, Cabo San Lucas;
Mexico and St. Lucia.

2008
• WestJet named one of Canada’s most admired corporate cultures for the fourth
year in a row (Waterstone Human Capital).
• WestJet accepts its 76th Next-Generation Boeing 737.
• WestJet begins service to its third Hawaiian destination, Kona; Kamloops;
Quebec City; New York City, via Newark International Airport; Bridgetown, Barbados; La
Romana, Dominican Republic; and Cancun and Puerto Vallarta Mexico.
• WestJet announces service to Yellowknife; Sydney, Nova Scotia; San Diego and
San Francisco.

Future Outlook:
In 2009, WestJet plans for an extensive code-share agreement with WestJet Airlines allowing
for expanded travel within the United States, and with KLM and Air France for travel to
Europe.[21] In the Spring of 2009, the airline will launch four new seasonal destinations to the
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cities of Yellowknife, Northwest Territories, Sydney, Nova Scotia, as well as a resumption of
service to San Diego and San Francisco, California. WestJet will also introduce their own
frequent flyer program in 2009, to better compete with Air Canada.

Mission
WestJet, has a mission to provide safe, efficient, low-cost consumer air travel service. Service
will emphasize safety as its highest priority. Will operate the newest and best maintained aircraft
available. Will never skimp on maintenance in any fashion whatsoever. Will strive to operate
flights on time. Will provide friendly and courteous "no frill" service. By 2016, the company's
vision is to become one of the five most successful international airlines.

Business Objectives:
• Revenue Generation - drive ticket sales online to potentially a membership base of
200,000.
• Cost Savings - Cut company costs and overhead - fraction of the cost to email users
than to mail or fax the same information and encourages people to book on the website
which is a lower cost of operations.
• Time to Market - Instantaneous notification of key seat sale information to drive the sale
immediately instead of waiting for the guest to potentially see the ads in conventional
advertising such as print.
• Build a Community of Loyal Users - increase registered users by offering additional
online services. WestJet can then begin to communicate directly with guests and target
future initiatives towards their needs.
• Clean up Registered Members Database - this project will provide WestJet with the
ability to cleanse existing membership database which is now approximately 5 years old
to focus on an active and relevant membership base.

Project Objectives :
• TARGET AUDIENCE - Business to Customer (B2C) - approximately 200,000 members.
Reach of Emails: General mass mailings to entire community base.
• General seat sale announcements, general company announcements.
• Initial Customer Interaction Email: initial email to invite guests to update their online
profiles. Sent to ALL 230,000 registered users. Permissions will have to be renewed
annually.
• Utilize the software / hardware that had been purchased to send a mass email to guests
currently enrolled in the WestJet member database. The email must let guests know that
their information is being updated to ensure accuracy. The database update form also
provided them with the ability to opt-in to the new email service.

Market Summary
The travel market is separated into two main categories, business and leisure travel. Each
contributes about 45% to total revenues. The remainder of revenues are generated from
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combined business/leisure trips. The market is further separated into domestic and international
travel. Domestic travel accounts for approximately 70% of industry revenues. Business travel
can be divided into two categories, the medium to large corporate account, and the small
independent businessman. Leisure travelers are classified according to the types of trips they
take, income, or age. The four primary leisure travel groups are:
• Adventure, Special-Interest, R&R, Honeymoons & Sightseeing Trips.
• High-Income Travelers.
• Budget-Conscious Travelers.
• Families, Students & Seniors.

Target Markets
WestJet’s target market is travelers who travel by vehicles (4-10 hours) to visit friends and
family, price conscious people, leisure travelers, adventure travelers, vacation goers and
business travelers.

Market Demographics
Adventure/Leisure Travelers are slightly more likely to be men age 18-34. However an
increasing number of adventure travelers are women (some statistics suggest that women
comprise 49% of the adventure market). Men on average spend more than women on their
adventure travels. Primary customers are married couples, ages 25-35, with children and
household incomes over $50,000.

Market Needs
Customers look to the agency to provide them with sound advice for a competitive price.
WestJet is confident in its ability to do so. WestJet can save the customer time and money, and
help to ensure that they are satisfied with their vacation.

Market Trends
One notable trend in the travel industry is increased deregulation. Deregulation has increased
competition and the need for differentiation. In many cases, the prices of airfare and other
travel-related services has dropped. Additional trends include caps on agency commissions by
many of the larger airlines, increases in travel, and reduction of profit margins. More than 50%
of the adult traveling population have taken trips in their lifetime. The growth trend in travel is
predicted to continue.

Market Forecast
Business travelers will spend more in 2009 on their trips, but the rate of increase will be held in
check by current economic conditions, says American Express in its annual global business
travel forecast released today.

The average cost per domestic trip in North America will increase by 1.2% to $1,002 in 2009,
the company estimates. Last year, American Express estimated a 3.9% increase for 2008.
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The average cost per international trip for North American business travelers will increase by
3.5% to $3,452. Last year, American Express estimated a 7.8% increase for 2008.

"Travel costs will not change significantly in 2009," says Hervé Sedky, vice president of
American Express, Global Advisory Services.

While the cost increase in 2009 will be more "steady," corporate travel managers will continue to
scrutinize their spending patterns closely, he says. "Savvy organizations are making sure that
travel not yielding revenue is eliminated or substituted by use of technology."
American Express's results mirror other travel survey findings. Earlier this month, the National
Business Travel Association released a survey that underscored travel managers' concern over
rising costs. Its members who responded to the survey said domestic trips now cost $140 to
$175 more than at the end of 2007. International business travel costs have increased $315 to
$400 per trip since December. More than 50% also said new airline fees are encouraging less
air travel and are eliminating all non-essential corporate travel.

KDS, a travel and expense management firm, also said a recent survey of "hundreds of clients"
revealed that 54% of respondents believe that the financial crisis will force cuts in travel
between now and March 2009. More than one-third said they have had to cancel booked trips.
Economy airfares for domestic trips could either fall by 5% in 2009 or increase up to 5%.
International fares in business class could rise 1% to 6%. American Express couldn't further
narrow the forecast ranges because "the economic conditions that we are facing in the last few
months are unprecedented," says Frank Schnur, vice president of American Express, Global
Advisory Services North America.

The airlines' reduced capacity, ticketing restrictions (such as the Saturday-night stay rule) and
additional fees for checking bags and other ancillary services will drive overall air travel costs
higher. But sluggish demand and potentially falling fuel prices will keep the rate of increase in
check, according to American Express.

Market Growth
Canada’s travel industry is feeling the effects of the economic slowdown, falling consumer
confidence, volatile gas prices and fluctuating exchange rates. At the national level, overseas
visits softened while American visitation continued to lose ground in 2008. Many Canadians are
planning to travel less in 2009, which will impact growth opportunities from this important
market.
The Canadian Travel Research Institute (CTRI) warns that growth prospects for the domestic-
travel market this winter remain weak as Canadians restrict spending in response to economic
concerns and financial uncertainty. Canadian consumer confidence has fallen to its lowest level
since the recession in the early 90s, negatively impacting travel intentions for both domestic and
international trips.

Market Share
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The company expects to boost its share of the CAD$5 billion (USD$4.1 billion) domestic market
to 40 to 45 percent by 2013 from around 36 to 37 percent at present.
On October 26, 2006, WestJet announced that it had its best quarterly profit ever, reaching
C$52.8 million. WestJet gained market share and kept its costs under control, helping profits to
surge. In the past ten years, WestJet has made significant gains in domestic market share
against Air Canada. In 2000 it held only 7% to Air Canada's 77%, though by 2009 WestJet has
risen to 36%, against Air Canada's 57%.

Internet Market Statistics

April 11, 2009 8,883

7 day avg 10,133
1 month avg 11,177
3 month avg 11,067
3 month change 303

Westjet.com traffic rank in other countries:

200 Canada
33,719 China
26,081 Mexico
25,296 United States

Where people go on Westjet.com:

45.2% westjet.com
28.6% c3dsp.westjet.com
23.9% c5dsp.westjet.com
0.9% wgwhq.westjet.com
0.5% c1dsp.westjet.com

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Westjet.com users come from these countries:
84.2% Canada
8.8% United States
3.3% China
0.5% Mexico
3.1% OTHER

For 2003 Canada ranked fourth worldwide in terms of broadband households as a percentage
of total households. The US held the tenth position with a 22.5%.

Online sales more than doubled in Canada from 2003-2006, and nearly half of Canadian retail
firms now have a Web site, compared to the 42% that did in 2005. Among companies with 100
employees or more, of which 88% have a Web site, the percentage is even higher.

It is expected that the average amount that Canadians spend online will grow strongly over the
next three years. Seasoned online buyers (rather than new ones) will drive overall market
growth. Comparing Canadian and US online consumer behavior, Canadians are either on par or
ahead of their US peers in purchasing electronics, travel and event tickets online. Canadians lag
behind in the purchasing of clothing, music and videos, gifts and toys. Canada is a world leader
in Internet adoption, time spent online and electronic banking and bill payment.

Internet Marketing Plan introduction:

A website without a marketing plan is like having a car without wheels - it won't get you very far!

While your site may be gorgeous to look at, or have all your services clearly offered, it won't
help you to drive new business unless it can be found easily by people you want to attract as
customers, and then fulfill their needs once they find it. There are many ways to do this, some
more effective than others, but few will work well unless they are part of your overall marketing
plan for your business.

A smart Internet Marketing Plan will work alongside your off-line marketing plan to ensure your
message is consistent at all times. Each online marketing initiative should also support your
overall business objectives.

Today's travellers are a lot more sophisticated than they used to be, hence their expectations
are higher. For the most part, they expect to find what they need to know on the internet. They
search in travel directories; they talk to other travellers in blogs; they subscribe to online travel
news; they check out your competition, looking for what sets you apart; they check pricing,
facilities and availability, and ultimately they want to book online too.

Drafting an Internet marketing plan is an important step in launching a website or online

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business. Understanding the site’s target market, competition, marketing budget, strengths, and
weaknesses allows for the best Internet marketing tactics to be chosen to get the most visitors
or profit with the least amount of time or money.
In a world of unpredictability, airlines are looking to spend their advertising dollars more
efficiently, where the traditional spend on the typical “push” forms of advertising of print and TV
are being shifted to the “pull” arena of the Internet.

Overall, traffic from search engines comes down to how many pages you have indexed, and
how many quality links are pointing at those pages.
The biggest factor in stimulating online travel sales through e-Commerce will be websites
designed and optimized to meet consumer needs. The travel industry should closely monitor
consumer online booking habits and their search behaviour through market research and
change their websites accordingly.

Passenger revenue per available seat mile or PRASM is referred to as a measure of passenger
“unit revenue”. It is calculated by dividing passenger revenue by available seat miles. If an
airline is looking to improve its PRASM or yield, more attention has to be paid to targeted
marketing. SEO (Search engine optimization) can convert visitors into buyers in a much more
effective way than traditional advertising.

Internet Marketing Plan of WestJet

Westjet should use following tactics for internet marketing:

E-mail marketing Email marketing includes much more than just sending email newsletters to
website visitors. Email marketing is an important type of Internet marketing, and allows
webmasters and online business owners to use inexpensive direct marketing and relationship
marketing tactics quickly and efficiently.
Here are some uses for email marketing:
1. Email newsletters
2. Email offers and coupons to past customers or visitors
3. Email surveys for market research and to measure customer satisfaction
4. Additional income stream with email advertisements or email list rentals
5. Marketing through ads purchased in others’ email marketing campaigns

Search engine optimization (SEO) is the process of improving the volume and quality of traffic
to a web site from search engines via "natural" ("organic" or "algorithmic") search results.
Typically, the earlier a site appears in the search results list, the more visitors it will receive from
the search engine. SEO may target different kinds of search, including image search, local
search, and industry-specific vertical search engines.
As an Internet marketing strategy, SEO considers how search engines work and what people
search for. Optimizing a website primarily involves editing its content and HTML coding to both
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increase its relevance to specific keywords and to remove barriers to the indexing activities of
search engines. Major search engines are:
• Google
• Yahoo
• MSN
• AOL

Search engine marketing, or SEM, is a form of Internet marketing that seeks to promote
websites by increasing their visibility in search engine result pages (SERPs).

Online advertising offers advertisers, both online and offline, an opportunity to reach very
specific niche audiences and target markets that wasn’t previously possible outside of perhaps
the niche and trade magazine market. The biggest difference between niche online advertising
and niche print advertising is often cost. Online advertising options are often more affordable,
and with new niche websites launched every day, online advertising opportunities are almost
endless.

There are many different types of online advertising, from blatant advertising to subtle,
seemingly natural links. Here are several common types of online advertising currently used:
1. Banner Advertising – Banner ads are image ads with a company’s or website’s logo,
slogan, and advertising message (or something similar) included. Banner ads come in
many different sizes, which would be determined by the space available on the
publisher’s site where the advertising space is being purchased. Some banner ads are
animated.
2. Sponsorships – Advertisers regularly gain exposure in online sponsorships, whether
that’s sponsoring a site blatantly for a site-wide text link or banner ad, sponsoring online
videos (or even limited commercial sponsorships with major TV networks offering videos
online), or sponsoring something such as a free Web template, where the sponsorship
link stays intact every time a template is used.
3. Text Link Advertising – Text link ads can work similarly to banner ads, they can be
site-wide links in the sidebar, footer, or other area of a publisher’s website, or they can
be a text link worked into the content on one particular page on a publisher’s site.
4. Video Advertising – Video advertising can be done similarly to banner advertising
using various video screen sizes, or can involve blatant advertising in essentially Web
commercials released with some kind of entertainment value to video sharing sites,
hoping for a viral effect of the video being shared to increase exposure.
5. Email Advertising – Email advertising is essentially purchasing banner or text link ad
space within email newsletters reaching a certain target market.
6. Pay-Per-Click (PPC) Advertising / Search Engine Advertising – Pay-per-click
advertisements can be purchased in text or image / banner formats, often through
search engine advertising (to place in sponsored results for certain keyword phrases) or

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 through ad publisher networks such as Google Adsense, where ads appear on publisher
sites relevant to chosen advertiser keywords.
7. Online Classifieds – Online classifieds advertising works much in the same way as
offline classifieds, where products, jobs, and more can be advertised to a more general
market.
8. Pop-up / Pop-under Advertising – These are online ads that open a new window on
a browser’s computer screen when they enter or leave a Web page or click on
something. They’re often considered intrusive, and blocked automatically using pop-up
blockers by many users.

Viral Marketing The buzzwords viral marketing and viral advertising refer to marketing
techniques that use pre-existing social networks to produce increases in brand awareness or
to achieve other marketing objectives (such as product sales) through self-replicating viral
processes, analogous to the spread of pathological and computer viruses. It can be word-of-
mouth delivered or enhanced by the network effects of the Internet. Example of internet viral
marketing is Hotmail (free email) and Blue Mountain Arts (free greeting cards)

Affiliate marketing is an Internet-based marketing practice in which a business rewards one

or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.
Affiliate marketing—using one website to drive traffic to another—is a form of online
marketing, which is frequently overlooked by advertisers. While search engines, e-mail, and
website syndication capture much of the attention of online retailers, affiliate marketing carries
a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing
strategies.

Online PR (online public relations) is about using the Internet to connect with a website’s or
business’ key publics or audiences, to build awareness and increase exposure, to build and
maintain an image and brand trust, and to communicate to solve crises. Online PR works much
in the same way as traditional public relations, only with a different set of PR tools.

Use of Social Media Sites:

WestJet should use Social Media sites such as Twitter, MySpace, Orkut, Facebook, YouTube,
Flickr and some Blogging. These all are great ways to get the online community involved… to
get them motivated to travel, to get them talking about the airlines…. what they love and what
they hate. To get them spreading the word of what airline they should be traveling. These
groups of networked individuals, often in similar demographic groups, have become a virtual
gold mine for Internet marketers, who can place their message in front of members of their
target market on social networking sites for little or no cost.

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Bibliography:

http://www.westjet.com/pdffile/westjetBackgrounder.pdf
http://findarticles.com/p/articles/mi_m0EIN/is_2009_Feb_18/ai_n31359608/
http://www.usatoday.com/travel/news/2008-10-22-amex-forecase_N.htm
http://www.marketwatch.com/news/story/10-k-us-airways-inc/story.aspx?guid=%7BD62B36D0-
010E-4230-A573-4F08EBF1946B%7D&dist=msr_1

http://www.tc.gc.ca/pol/en/report/AirlineRestructuring/4sept2002/restructuring1.htm

http://www.space.com/businesstechnology/070803_environmentally_friendlier2.html

http://www.cbronline.com/companies/westjet_airlines_ltd?section=companyView

http://www.finfacts.ie/irishfinancenews/article_1015491.shtml

http://ezinearticles.com/?2008-Trends-in-the-Airline-Industry&id=1436039

http://www.aopa.org/whatsnew/trend.html

http://www.unixpub.com/travel-online/ten-trends-affecting-business-travel-in-2009/

http://www.simplybestcoupons.ca/Coupons/WestJet.ca/
http://c5dsp.westjet.com/guest/spare1.jsp
http://business.theglobeandmail.com/servlet/story/LAC.20090331.RTICKERWESTJET3
1/TPStory/?query=
http://www.theglobeandmail.com/servlet/story/LAC.20090331.RTICKERWESTJET31/TP
Story/Business

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