WestJet after 20 years. The new LCC challenges: preserving the culture but rising to the business

The Canadian airline WestJet has been confronted by paradoxes in early 2016, a period in which the company celebrated its milestone 20th anniversary. After attaining an investment grade rating from Standard & Poor's in 2014, in 2016 WestJet has secured that coveted status from a second ratings agency, Moodys. WestJet and Alaska joined Southwest Airlines in obtaining investment-grade status in 2014, followed by Delta Air Lines in 2016.

But as it marks two decades in business WestJet is facing challenges. In the short term, economic weakness in the resource-driven province of Alberta dragged down its revenue performance in 1Q2016, and in the long term, WestJet needs to ensure that the employee sentiment that helped propel it to its 20 year anniversary remains intact. It has faced union drives in recent years, which is inevitable as the company continues to expand.

WestJet has evolved from a pure low cost airline to a hybrid company that caters to both leisure and corporate customers. At times the transition has not been easy on its culture. Cultural preservation will be key as WestJet forges a path for the next decade and beyond.