Westjet Strategic Case study for Business

West Jet

1. WestJet –September 11
th
2001
By
Asif Ali Rahman

2. 7/2/2024 © 2004 By Asif Ali Rahman 2
Synopsis
•This case study focuses on the reaction of
WestJet to the events of September 11,
2001. Plunged into an organizational
crisis, WestJet discovered that its
emergency training, procedures and
unique culture allowed it to sustain itself
and become the first Canadian airline to
resume operations once North American
civilian airspace reopened

3. 7/2/2024 © 2004 By Asif Ali Rahman 3
Introduction
•Rosanna Imbrogno, director of Customer Service for WestJet
was facing a crisis. It was early afternoon on the 11th of
September, 2001, and Imbrogno was on her way to an
emergency meeting. At WestJet's head office in Calgary,
Canada, television sets were tuned to CNN as the corporate
headquarters staff, along with viewers across the world,
watched the aftermath of the deadliest terrorist attacks on
North American soil. For the first time ever, all civilian airline
flights across North American airspace were suspended.
•WestJet had employees and guests stranded across the
country and there was no indication when flights would
resume. In addition, grounded employees were dealing with a
tremendous amount of anxiety; the airline industry was tightly
knit and many employees had relatives who worked at other
airlines. Imbrogno asked herself What should be done first?

4. 7/2/2024 © 2004 By Asif Ali Rahman 4
Learning Objectives
•To learn how a company reacts to an
organizational crisis
•To discuss some of the appropriate, immediate
responses in the face of an organizational crisis
•To learn stakeholder management in crises
•To determine what steps can be taken to ensure
that an organization is prepared for the next
crisis

5. By definition, an organizational crisis has
the potential to threaten the viability of the
entire organization. According to
information provided, is WestJet facing a
"crisis"? Why or why not?

6. 7/2/2024 © 2004 By Asif Ali Rahman 6
Is it facing “Crises”?
•It can be argued that WestJet is facing a crisis
because it has 15 planes and 1,350 guests
grounded across the country. In addition,
employees have relatives in other airlines who
may be more directly affected. On the other
hand, WestJet is neither United Airlines nor
American Airlines, both of whom were directly
involved in the crisis; it can be argued that
WestJet is facing an event that affects the entire
industry

7. What are the most crucial details
of the immediate situation that
WestJet is facing?

8. 7/2/2024 © 2004 By Asif Ali Rahman 8
Most crucial details
•The most important details are:
–North American airspace is closed;
–1,350 guests and 15 planes are stranded;
–Loss of life in the tragedy directly affects all
airline industry members, as the industry is a
tightly knit family

9. What other crises could emerge
for WestJet?

10. 7/2/2024 © 2004 By Asif Ali Rahman 10
What other crises?
•WestJet could face a terrorist attack on
one of its planes (unlikely, but possible)
•It could also have a public relations
dilemma if inappropriate statements are
made to the media, or if guests/employees
are injured while in WestJet's care
awaiting resumption of air service

11. Compared to its competitors in the airline
industry, WestJet has an unusual culture.
How might that culture facilitate or impede
WestJet's ability to manage crises? How
would that culture affect the specific
situation described in the case?

12. 7/2/2024 © 2004 By Asif Ali Rahman 12
Culture VSCrises
•That culture (of being progressive, friendly, easy-
going, helpful) could facilitate recovery from this
crisis as employees volunteer to take on extra
work and/or go the "extra mile" to help out
•These actions could impede crisis management
because employees might unwittingly overwork
themselves in the first few days and the crisis
might take more than a few days to resolve
•In addition, employees attempting to go the
"extra mile" might divulge information that
becomes front page news

13. Make a comprehensive list of
stakeholders that WestJet should be
attending to. Which are the most
critical at this point? Why? With
whom should WestJet maintain
contact? How?

14. 7/2/2024 © 2004 By Asif Ali Rahman 14
List of Stakeholders
•In order of importance:
–Employees,
–Stranded guests,
–Guests who are booked for flights,
–Canada Transportation Agency,
–Media,
–Shareholders

15. How might the history of WestJet
affect its ability to manage this
crisis?

16. 7/2/2024 © 2004 By Asif Ali Rahman 16
History of WestJet
VS“Crises”
•WestJet's casual, helpful culture could work
against it; employees in the Call Centre who
were used to disseminating information to
guests might feel obliged to offer more
information than was necessary
•In addition, WestJet's internal spirit of
companionship could lead its employees
unintentionally overworking themselves in the
first few days of a crisis, straining WestJet's
human resources as employees surrender to
exhaustion

17. 7/2/2024 © 2004 By Asif Ali Rahman 17
What Happened?
•Siobhan Vinish, director of public relations and
communications and Rosanna Imbrogno described that the
whole organization went into "emergency mode“
•Since employees were well trained in tabletop scenarios
simulating emergencies, everyone knew what had to be done
•Members of the team that met hourly included an operations
representative (who received direct information from
Transport Canada), airport security, customer care,
communications, a member of the executive team and a Care
ambassador representative
•They decided what they were going to do, without having to
involve senior management (such as Clive Beddoe, the
president)
•Giving their team full responsibility, the organization showed
that it had confidence in the people they had hired

18. 7/2/2024 © 2004 By Asif Ali Rahman 18
What Happened?
•Everyone was updated on an hourly basis and communication with
less critical stakeholders came in the form of written
communications
•WestJet did not allow their employees to work overtime (more than
10 hours per day) to ensure that burnout did not occur
•Statements to the media were kept to factual statements related to
guests
•All Super Sales Centre and Customer Care agents were given
selected information so as to contain the "rumor mill“
•When civilian airspace was reopened, WestJet was the first
Canadian airline to resume flights
•One of their worst fears was that stranded guests and employees
would hear only information that the public was getting; thus, in the
event of the next crisis, WestJet had implemented a "call home"
program to ensure that factual, timely information from headquarters
reached the employees and guests to whom it mattered most