Hamilton Case – the Westjet Airline Case
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The WestJet Airline Case
Hamilton was chosen as the Eastern hub for the following reasons.
Firstly, it was a niche route which means that no other airline has been operated from that airport. WestJet would be the choice of airline for people living in Southern Ontario area. Secondly, choosing Hamilton is a cost-effective option because landing fees for Toronto is very expensive. Thirdly, operating efficiency is much higher in Hamilton. For example, WestJet can land an aircraft, deplane and board guest, refuel, restock and load and unload bags within 20 minutes in Hamilton. At Pearson International Airport in Toronto, it would be hard to get a taxi within 20 minutes. The more time in the air, the more efficient and profitable airlines can be.
In addition, by using Hamilton as a hub, WestJet can avoid competition with Air Canada as it tried to establish itself in the east.
The choice of Hamilton reflects WestJets focus on controlling costs and ensuring efficiency since they are targeting low-cost market. Because of these cost-control strategies, WestJet is able to make money with ticket prices below the industry average and capture the market share. They use low prices to attract customers who would rather drive or train.