View Full Version : WestJet CEO Clive Beddoe knew....
http://www.cp.org/english/online/full/Business/041105/b1105122A.html
Globaliser
7th Nov 2004, 17:36
Actually, it reads to me like "Air Canada alleges that WestJet CEO Clive Beddoe knew ..."
Quite true; you can read, but in the stock market, perception becomes reality.
UPDATED AT 1:31 AM EST Saturday, Nov 6, 2004
WestJet chief aware of spying: Air Canada
By BRENT JANG
From Saturday's Globe and Mail
Air Canada alleged Friday that a spy scandal in the country's airline industry goes all the way to the top at WestJet Airlines Ltd., pointing directly at WestJet chief executive officer Clive Beddoe.
In April, Montreal-based Air Canada accused WestJet of hacking into a confidential website to steal sensitive information, but it didn't name Mr. Beddoe when it launched its $220-million lawsuit against the Calgary-based carrier.But Friday,
Air Canada stepped up its legal fight against WestJet by adding Mr. Beddoe, who has distanced himself from the mounting controversy, to its growing list of defendants who allegedly took part in corporate espionage.
Air Canada introduced an e-mail which it says shows Mr. Beddoe received confidential information stolen from the airline.
On Friday night, WestJet said Air Canada's allegations involving five new defendants are “ill-founded and will not succeed,” adding that “Air Canada's real motive in its lawsuit is not to recover damages but to distract the market and discredit WestJet.”
Air Canada introduced various exhibits that it says strengthen its lawsuit against WestJet. It included an e-mail dated June 13, 2003, written by Mark Hill, a WestJet co-founder who resigned from the discount carrier four months ago.
Mr. Hill copied his memo to Mr. Beddoe and four others then at WestJet, now added as defendants.In a separate lawsuit, Jetsgo Corp. of Montreal is also accusing WestJet of spying.
In his e-mail memo, Mr. Hill “provides an analysis of Air Canada's passenger loads from Calgary to Vancouver” from May 3 to June 11 last year, Air Canada's lawyer said in an affidavit that is part of its amended statement of claim in the Ontario Superior Court.
The memo contains detailed information about Air Canada flights between Vancouver and Calgary, including a comment that “it is very interesting that AC 200 YVR-YYC at 7:00 a.m. has 124 seats and a l/f [load factor] of 66.5 per cent.”
Load factor refers to the proportion of available seats filled.Mr. Hill's memo notes that two Air Canada flights had more seats booked than WestJet's competing two flights.
“We might want to loosen up the buckets on those two flights,” wrote Mr. Hill, who was then WestJet vice-president of strategic planning.
Air Canada alleged in the new court filing Friday that Mr. Hill's recommendation to “loosen up the buckets” referred to WestJet's strategy of “lowering fares to attract passengers away from Air Canada.”
Air Canada accuses Mr. Hill of using the access code of a former Air Canada employee, Jeffrey Lafond, to hack into a special reservation website for Air Canada employees and retirees.
“With any luck, we'll be able to automate these reports... this took forever to compile,” Mr. Hill wrote in his memo.In the new court documents,
Air Canada alleges Mr. Hill “looked forward to automating his reports on Air Canada's route and time specific passenger load information.”
In previous court filings, WestJet has distanced itself from Mr. Hill.
And Mr. Beddoe apologized three months ago for “this event having occurred,” but indicated he wasn't aware of the alleged spying activity.Friday's amended statement of claim also includes an exhibit that Air Canada describes as a handwritten note that shows Mr. Beddoe attended a WestJet executive meeting last year when Mr. Hill allegedly presented a CD containing Air Canada's load factors.
Air Canada had hired private investigators last spring to search Mr. Hill's trash in the Victoria suburb of Oak Bay.
Air Canada, which said in court filings that its internal papers were found shredded in his trash, later hired a U.S. firm to digitally reconstruct the documents.
Jetsgo launched its $50-million lawsuit against WestJet last month after it said it belatedly found out some of its confidential documents also ended up in Mr. Hill's trash.Jetsgo chief executive officer Michel Leblanc said three weeks ago that while his airline has yet to file supporting evidence to show the involvement of Mr. Hill and Mr. Beddoe, “we're not on a fishing expedition.
Far, far from it.
”Besides Mr. Beddoe, the other defendants added Friday to Air Canada's lawsuit were: Scott Butler, WestJet director of strategic planning, who reported to Mr. Hill; Donald Bell, WestJet co-chief operating officer; Bill Lamberton, WestJet vice-president of marketing until he left the airline in November, 2003; and Brenda Trockstad, WestJet director of commercial and schedule planning.
None of the allegations have been proved in court.
WestJet has denied wrongdoing in its statement of defence and counterclaim to Air Canada's lawsuit launched in April.
©Copyright 2004 Bell Globemedia Publishing Inc. All Rights Reserved.
Clive's corporate mantra always includes a pious holier-than-thou "corporate governance" position. If the allegations prove true, and since instead of wages he pays with paper, how will he pay his people to industry standard now?
Left Coaster
8th Nov 2004, 03:55
Oh God, it's here...There used to be an airline website in Canada that once was a good place to keep an eye on the Canadian industry, until...it became a slagfest between AC and WJ employees and as a result people dropped it in droves. It got very tiresome! Please do not let that happen here. It is an interesting time for both these airlines and if this can be kept to a useful level of info, it will be a good read. No slagging please?:D
Dockjock
8th Nov 2004, 05:19
Lets just get it over with so we can go on with our lives.
I am Birddog
8th Nov 2004, 06:06
Left Coaster-Oh God, it's here...There used to be an airline website in Canada that once was a good place to keep an eye on the Canadian industry, until...it became a slagfest between AC and WJ employees and as a result people dropped it in droves. It got very tiresome! Please do not let that happen here. It is an interesting time for both these airlines and if this can be kept to a useful level of info, it will be a good read. No slagging please?
Well I believe the admin of the forum website you speak of got smart and made separate forums for each individual company. They do bash each other on those individual forums NOT in the general section anymore. However it is interesting to read both sides. I believe through communication do we understand the issues. Again, however I agree with you that both sides should respect each other's position and comments should be in good taste because we are still colleagues only wearing different blazers.
IABD
Your right, this could eaily become a slag fest. ACb4U, I'm curois about us Westjet people being paid in paper. I'm also curious to know what this industry standard is. I know of no other company in Canadian aviation that has a more satisfied workforce than Westjet. I and most of my colleagues feel we are well rewarded for our jobs.
If supposed industry standard means, bankruptcy,layoffs, debt constant union,employee and mangement bickering then I'll take what I have happily.
I always find people from other companies looking over the fence trying to tell us how bad we have it. Keep your eyes on the road and have fun with Milton and the gang.Don't worry there's plenty of evil doers at the top of most companies.
Having said that I think this whole lawsuit is more a case of trying to tarnish a pristine image than it is about actual use of confidential info.
CargoOne
8th Nov 2004, 11:57
In his e-mail memo, Mr. Hill “provides an analysis of Air Canada's passenger loads from Calgary to Vancouver” from May 3 to June 11 last year, Air Canada's lawyer said in an affidavit that is part of its amended statement of claim in the Ontario Superior Court.
The memo contains detailed information about Air Canada flights between Vancouver and Calgary, including a comment that “it is very interesting that AC 200 YVR-YYC at 7:00 a.m. has 124 seats and a l/f [load factor] of 66.5 per cent.”
I can officially and legally buy this information at any time from MIDT-provider like LH Systems.
Don't get me wrong, everyone acknowledges that WJ has a happy workforce and a good product. The MacDonalds crowd love it! WJ makes money hand over fist every quarter and their employees deserve nothing but praise imo. Why is it then that their upper management have apparently stooped to corporate espionage?
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20041108/RAIRCANA08/TPBusiness/TopStories
rotornut
8th Nov 2004, 15:13
Clive's corporate mantra always includes a pious holier-than-thou "corporate governance" position.
"But he makes one heck of a cool burger, too." (p. 56, Westjet Annual Report 2002). At least if he gets fired he'll hopefully be able to find work - perhaps in a different industry.
I don't want to turn this site into the many others that have these discussions but ACb4u you seem a bit uppity.
The McDonald's crowd love it, I don't care who loves it as long as they pay and get on board and are happy with the service and say those words I love to hear. I had no idea Westjet was like this, your so helpful, happy and accomadating."I'll never fly AC again". Or something like that. The last sentence being the clincher.
Anyway as far as stooping goes, please review Air Canada's history to see what stooping is.
Air Canada knew what was going on for months before they said a word. Why? They knew all this info is available elsewhere, if it could have hurt them in anyway they would have stopped what was going on right away. The publicity they get from the lawsuit and the negative publicity Westjet get's is the goal here. As well as trying to break Westjet's employee morale and culture. If you read about the case you will see that WJ never said they didn't obtain and use the info, they did say that the same info is available through many other sources via either the web or pax counting. Which they do as well incidentally. This case will go on as long as Air Canada is able to drag it on, they will file new motions all the time to try and keep it in the media and in peoples minds. The only sad part is all this info was not needed to compete and beat Air Canada, all that was needed was to offer what we were offering and watch as AC blew themselves away. I'm suere the people who flew with you at good rates would love to know you consider them "the McDonald's crowd". I wonder what the CFL would think of that too.
ACb4u,
worry is not what it's about. I happen to like and respect my employer. It does bother me to see misinformation and media banter poted as fact.
Air Canada's latest ammendement to their claim removed most of the financial reparation's that had been originally sought. Now that no financial gain can come of this lawsuit isn't it evident why it is being launched. Canada's largest airline, who at one time had a monopoly, got so full of itself and so disrespectful to it's customers that when an airline who offered only what should be expected stepped in and stole the show AC almost crumbled. Now that that same airline has saved billions of dollars by offering 0.10cents on the dollar to creditors both big and small companies.Screwed shareholders and employees alike, laid off thousands and you want to bring in the idea that Westjet's CEO is somehow shady. It's a joke
This is the final stage of Air Canada's screw job. Instad of using the courts to settle a dispute they are using them as a media tool to tarnish an otherwise well respected company. Incidentally Westjet was voted Canada's second most respected company in 2003, Air Canada did not make the top 100. That must of hurt and that is why all this mess is being dragged out and will continue to be dragged out as long as Uncle Milty can drag it out.
Yes Tan, you got it. I don't know right from wrong and the world is against us WJ employees.
A simpleton post deserves...
We could do this all day, I hope this case ends soon so we can get on with aviating instead of headline grabbing.
WJ: Could you please enlighten us as what lead to Mark Hill's departure (VP and one of the WJ founders)? Do you think Clive will be next? If not, why not?
These are my thoughts only. Mark Hill's departure was a must. He started this debacle and was at the center of it and it was hoped it would end with him. When this news broke the first thing Clive did was offer his resignation.This I understand is an honourable thing to do and was viewed by many that way. Needles to say It was refused.
I doubt very much Clive will go, he is the force and spirit behind WJ. He is what Herb Kelleher is to Southwest. Clive promotes and keeps alive Westjet's unique culture.He is a celebrity within the company and is well liked even loved by the majority of employees.
The thing that could damage WJ mortally would be Clive's departure and that is well known. This is why I firmly believe as do most WJ people that the withdrawal of the monetary damages in the suit by AC and the laying of claims against Westjet's Golden boy is an attempt to break the ranks and nothing more. In the end it may ultimatley strengthen the company's resolve and fabric. It will be an interesting next few months or years at any rate.
GearDoor
9th Nov 2004, 00:57
WJMan,
At one point, Westjet did have a squeaky-clean corporate image. However, I wouldn't say that now. I seriously doubt that they will win that "most trusted company" award again. Even if the allegations aren't proven in court. If Air Canada's goal was to use the media to make Calgary's darling airline look bad, then they have already succeeded.
By the way, I know you have to take anything that the media says with a grain of salt. But if anything printed in the Globe and Mail on Saturday or Today is true, then Westjet is going to be severely embarrassed
WJman
How do you explain the five e-mails discovered by a court appointed forensic auditor in West Jets files and computer hard drives? Even more interesting is whom they were sent to, but I digress.
It’s about time you WJ folks became accountable for your actions as that is the honourable thing to do, you shouldn't have to be told..
Tan, as has been mentioned. None of the allegations have been denied. The e-mails that the forensic auditor found were on files and equipment that was turned in by Westjet.
Let's not loose sight of why AC is suing, they say their business was harmed by WJ having this info. This info was and is still available from many public areas. The reason AC was and is still loosing money is due to their poor management and leadership. If any company In canada has to be accountable for it's actions it has to be AC. How many small operations closed due to it's unfair practices,how much taxpayer money was wasted, how many jobs lost due to incompetence. Worst of all how can an airline with no debt, a new fleet and a monopoly get itself into 12 billion dollars debt and then declare banruptcy. After all this it finds the time to blame everyone for it's failure but itself. Where is the accountability at AC. Westjet did do something unneeded and possibly unfair, was it illegal, that remains to be decided.
ACb4u, I wouldn't say I love the guy, but after being in this industry and working for so many now closed operations I sure do appreciate the way I am treated,the way the company is run and the general good will at WJ. It's unlike anywhere I have ever worked. To watch AC try to gain favor and profit through a smear campaign instead of pricing and good service is to say the least madening.
I'll also add this, some may laugh at how I defend and support my employer and many of my colleagues do the same. I would ask you when was the last time you worked somewhere where you believed in and were passionate about. It sure makes life more enjoyable.