Narrative 4-2 WestJet Was Widely Known in Its Earliest Incarnations for Flying

question 42

Multiple Choice

Narrative 4-2
WestJet was widely known in its earliest incarnations for flying only one model of plane-the Boeing 737,in several variations. However,the 737 imposed several limitations on WestJet's operating model,because it has a relatively limited range and has too much capacity for some midsize markets such as Penticton,BC and Brandon,MB.
During winter seasons from about 2010 to 2014,WestJet "wet leased" Boeing 757 aircraft with extended range to serve some of its popular holiday destinations in Hawaii and elsewhere. In 2013,WestJet announced that it would begin operating Bombardier Q400 turboprops through its wholly owned subsidiary WestJet Encore,so that they could reach destinations that were not previously accessible or cost-effective to serve with their Boeing 737s.
Most recently,in October 2015,WestJet took delivery of four "widebody" Boeing 767s formerly used by Australia's national airline,QANTAS,and used those to significantly expand its trans-Atlantic service. They have publicly stated that if the Boeing 767 service offerings are successful,the aircraft will be replaced by newer models such as the Boeing 787 Dreamliner. In December 2016,they announced a new contract with their pilots' association that grants pilots additional pay for flying widebody aircraft such as the Boeing 767 or 787.
-Refer to Narrative 4-2. What should WestJet have done in the first stage of the planning process to launch WestJet Encore?

• A)It should have developed an effective action plan that would satisfy all of its customers. 
• B)It should have determined its problem was an inability to cost-effectively serve midsize markets. 
• C)It should have developed several alternative methods for serving midsize markets. 
• D)It should have established a budget.

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Definitions:

Pareto Optimality

A situation where resources are distributed in such a way that improving the situation of any single person would lead to the detriment of at least one other person.

Voluntary Exchange

An economic transaction where parties trade goods or services by mutual agreement without coercion.

Maximizing Profits

The process or strategy of adjusting production or operation dimensions to achieve the greatest possible financial return.

Potentially Efficient

A situation where a system or process has the capability to achieve optimal productivity, but currently may not be doing so.