Great hidden asset

Article Excerpt

Reputation and employee commitment can be a great hidden asset, especially in a competitive business like air travel. WestJet has a hidden asset in its non-union workforce. Many flyers find Westjet provides friendlier service than they get from unionized airlines. However, in addition to the lack of a union, WestJet also gains from the fact that most of its employees are also shareholders. Right now, 84% of active employees participate in its share-ownership plan. (Employees can contribute up to 20% of their pay to buy shares. WestJet matches their contributions, dollar for dollar.) Employees own roughly 2% of the company. WestJet recently signed a code-sharing agreement with Hong Kong’s highly regarded Cathay Pacific Airlines, another carrier with high service standards. (Code sharing lets airlines sell seats and move luggage under their own names onto another carrier’s flights.) Code-sharing lets Westjet maintain service standards and reach new markets, while limiting risk. That combination can be a powerful advantage for a growing company, even in the…