- Joined
- Jan 13, 2008
- Messages
- 287
I just watched an interview on BNN with an airline industry analyst based in the US. His firm has just completed a study on 23 airlines across North America. Some of the findings paraphrased:
-Air Canada is not a viable stand alone airline
-Air Canada spun off their most profitable businesses
-Air Canada is crippled by high labour costs
-Westjet will be the most profitable airline in NA in 2009
-Westjet benefits from low labour costs
-The average Westjet employee works for the company for 4 years
-Air Canada bet wrong and hedged on oil futures
-Westjet didn`t hedge and will benefit from the drop in oil prices
LESSONS/INSIGHTS:
- Keep my business lean
- Don`t ever believe that prices will rise indefinitely
- The NA auto industry suffers from the same thing as Air Canada (bloated rather than lean); how can they last?
- I hate Air Canada and their arrogant staff (not personally, just as a customer)
- I love Westjet`s commitment to service and their inspiring success story
- Westjet is a great example of remaining profitable in an up or down market.
-Air Canada is not a viable stand alone airline
-Air Canada spun off their most profitable businesses
-Air Canada is crippled by high labour costs
-Westjet will be the most profitable airline in NA in 2009
-Westjet benefits from low labour costs
-The average Westjet employee works for the company for 4 years
-Air Canada bet wrong and hedged on oil futures
-Westjet didn`t hedge and will benefit from the drop in oil prices
LESSONS/INSIGHTS:
- Keep my business lean
- Don`t ever believe that prices will rise indefinitely
- The NA auto industry suffers from the same thing as Air Canada (bloated rather than lean); how can they last?
- I hate Air Canada and their arrogant staff (not personally, just as a customer)
- I love Westjet`s commitment to service and their inspiring success story
- Westjet is a great example of remaining profitable in an up or down market.