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In the Mid-1990s,WestJet Chose to Compete Head-On with Air Canada

question 32

Multiple Choice

In the mid-1990s,WestJet chose to compete head-on with Air Canada by launching WestJetLite,an alternative low-fare commercial airline passenger operation.Top executives at WestJet had expected its no-frills operation to break even within a year of its inception,but the airline fell short of the goal.A source close to the company explained it by saying,"Its costs were too high,and its revenues were too low." Some observers criticized WestJetLite's marketing efforts.When the no-frills service was first launched,it lacked a distinct name or identity,missing its chance to make a splash.Then WestJet tried to sell three "brands" at once-Plush ,a new premium service,and its more traditional long-haul domestic flights.As one rival expressed it,"You cannot be all things to all people."
-Refer to WestJetLite.Consumers who travelled on WestJetLite or Air Canada were very sensitive to price changes.What does this suggest?

Definitions:

Diplomacy Dynamics

The interplay and strategy among states and international actors to achieve foreign policy objectives through negotiation and dialogue.

Negotiate

To attempt to reach an agreement or compromise through discussion with others, particularly in the context of business, politics, or international relations.

Equal Military

The principle of providing all members of the armed forces with equal opportunities, treatment, and conditions, regardless of their background.

Military Surge

A strategy that involves the rapid deployment of additional forces to accomplish a specific military objective.