Pricing of WestJet products varies greatly. A flight to another city in the same province would be cheaper than a flight to another country, or an all-inclusive WestJet Vacation. Due to seat sales and promotions, connecting flights, etc. these prices can fluctuate.
Some of WestJet’s significant fixed costs are principal installments on funding (Retrieved from http://www.westjet.com/guest/en//media-investors/2011-annual-report/WestJet-Annual-Report-2011.pdf August 31, 2012) building rent/mortgage for office space, aircraft leases, and labour costs for salaried employees.
Some variable costs include labour costs changing with staff turnover and more people being staffed during peak times; profit sharing – as this depends on the revenue of the company. Aircraft maintenance will vary depending on repairs that come up unexpectedly. Fuel is a variable cost as the price of gas fluctuates. Building utilities fluctuate as well as oil and electricity prices vary day to day.
In 2011, WestJet achieved $149 million in net earnings and “broke the three-billion-dollar revenue threshold” ( (Retrieved from http://www.westjet.com/guest/en//media-investors/2011-annual-report/WestJet-Annual-Report-2011.pdf August 31, 2012).
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