Question

Discuss the Westjet Canadian private Corporation. Please research about the organization and discuss reasons of why you think that is good one for this project. Write 300 words. Add references if possible...

Answer 1

WestJet Airlines Private Limited is a Canadian airline founded 26 years ago on, 27th June, 1994. On February 29 1996, the first WestJet flight departed. It began as a cost friendly airlines. The airline’s headquarters is located In Calgary (adjacent to Calgary International Airport ), Alberta, Canada. It is founded by Clive Beddoe, David Neeleman, Mark Hill, Tim Morgan and Donald Bell.

Since December 2019 it has been owned by Toronto based private equity firm ONex Corporation. It is currently the second largest Canadian air carrier, Operating an average of 777 flights and carrying more than 66130 passengers per day. It also becomes the Ninth largest airline in the North America in the year 2018 by carrying 25.49 million passengers, it is a subsidiary of Kestrel Bidco Inc. and it has direct subsidiaries as, WestJet Encore, WestJet Link and Swoop.

West jet currently fly to 108 destinations in 25 countries throughout North and Central America, the Caribbean and Europe including 36 cities in canada and 23 in the United Sates. WestJet’s largest hub in terms of daily departures is Toronto Pearson International Airport, the airline’s main connection point in Eastern Canada. On December 6 2017, WestJet and Delta Air lines signed a definitive 10 year agreement in to a joint venture between two airlines.

Current fleet is Boeing 737-600, WestJet’s aircraft are painted white except for the lettering on the fuselage, wings and vertical stabiliser, the tail is divided roughly into slanted thirds, coloured(from front to back)navy blue, white and teal. This pattern is used on the outside of the blended winglets at the end of the wings while, on the inside, the winglets are painted white with “WestJet.com” in dark blue lettering.

WestJet hubs were Calgary, Toronto-Pearson and Vancouver, its mainly focused cities are Edmonton, Halifax and Winnipeg.

Financial Status of WestJet (2018)

Revenue = CAN$ 4.733 billion

Operating Income = CAN $155million

Net Income = CAN$ 91 million

Total assets = CAN$ 6.758billion

Total equity = CAN$ 2.302 billion

Quick Ratio = 0.73%

Current Ratio= 0.75%

LT Debt to Equity = 77.59%

Total Debt to Equity = 97.09%

Liquidity ratio = 28%

Return on Investment =6.56%

Return on Equity =13.21%

Total Debt to Equity =97.09%

By observing financial status of the WestJet, we can say it is credit worthy.