Air Canada
Business Brief Alessia Ianni-Palarchio
Ms. Adridge
BOH4M1-01
Air Canada is a major player in the airline industry, as it has been since its foundation on April 11, 1936. As one of the top airlines in the industry, there is a high standard of quality that was, is, and must continue to be maintained by the dedicated staff in the employee of Air Canada. It continues to be a steady market, especially with the stability of the Canadian economy. The downturn prices in oil continue to impact the dollar, however, it lowers operational cost in the industry, and allows competition to remain high.
Currently staff numbers 24.5 thousand full time employees across all of our locations in Canada, the United States, France, Denmark, New
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Stock Prices 2007 - 2015
Lowered oil prices reduce overall overhead costs, also improving the financial state as it provides more leeway in the budget. This can be put toward improving the fleet, as well as invested into improving customer service abilities.
PEST Analysis
Political Factors Economic Factors
• Riots in the United States and high racial tensions may lower flights specifically to that area.
• Lowered price of oil for political reasons • Economic downturn, but stability
• Young generations spending less on travel
Social Factors Technological Factors
• Recent airline disappearances and crash reports in media
• Change in PEDs policies • Apple iWatch provides new means of check-in and data collection on passengers.
• New regulation on use of PEDs in flight
With the emergence of new personal electronic devices (PEDs), the company has been pleased to announce the new policy on the usage of such devices, which allows for gate-to-gate usage, so long as no data is transmitted or received. The use of earbud headphones is still not permitted for use until the designated altitude has been reach, however, as a safety protocol. With the number of plane-related incidents in the past year, safety procedures are of the utmost importance and must be maintained to a higher level of standard than usual.
Porter’s Five Forces
Industry Competition – Moderate to High
No sustainable advantage
How serious is the threat from conventional airlines that want to imitate the westjet culture? What does it take to imitate organizational culture? Can Air Canada compete against westjet’s employee productivity and its relationship with its employees?
WestJet Airlines is a Calgary-based discount airline founded in 1996. Starting with only three aircrafts in 1996, the company is now “Canada’s leading high-value low-fare airline.” The management of WestJet Airlines assumes that the success of the business is anchored in the culture of the corporation and the welcoming service provided to its customers. Beddoe, the president and the CEO of WestJet, is proud of the airlines performance and the customer service it offers. He believes that the corporate culture was the key to success and the company’s attainment. WestJet’s culture is very entertaining, hassle-free, unperturbed, and relaxed. The ratings of the customer satisfaction are higher than those of the other airlines. Top management
One of the most important strengths of WestJet is their ability to provide low fares to consumers because of their low cost structure. (Yannopoulos, 2011)
The airline industry rides a train that is propelled by many different factors, such as the state of the economy, jet fuel prices, people’s view of the industry itself and the image of the individual airline entity. Founded by Clive Beddoe, Don Bell, Mark Hill and Tim Morgan, WestJet has been riding a different train from the get-go since its inauguration in 1996,. Nobody would have thought that a bottom-up management structure in an airline business would work so well. The culture that they have built is now part of their brand and they are proud of it.
American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.
* Government. The government is a weakness if they change or update some of the regulations that are in place now. This could cause delays and plans to change and take more time between flights.
Westjet Airlines has achieved considerable success in the past few years, winning estimable rewards related to its service, gaining loyal customers and, of course, increasing market shares. It devotes to a “high-value, low-fare airline” which provides humanized services to customers. Another pride of Westjet is its IT, which designs all systems in-house and is operated based on the business demands.
As a manufacturer of transportation equipment, Bombardier is well positioned in the aerospace and transportation segments to capture long-term market opportunities in Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services (Bombardier Inc., 2014). These opportunities are expected to continue to rise due to accelerating urbanization and the rising need for mobility (United Nations, 2014). Furthermore, the state of the world economy and those of individual countries are key factors in the demand of air travel.
Air Canada’s early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards their staff felt underappreciated. Their customers felt as though their feedback wasn’t being heard but in the eyes of Air Canada as long as their business was expanding, they were satisfied.
Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its
1 day- As the Earth rotates on its axis that creates seasonal variability, other factors that may impact the climate systems are volcanic aerosols which cool climate and shorten growing seasons. As the global radiation increased, so did the erythemal dose rate. As the hours the day began surface temperature would slowly rise and as the day ended the temperature went down. Climate is measured by devices used to track annual variability and climate patterns include thermometers, rain gauges, and stream gauges.
The movement of millions of passengers over distances thought impossible decades ago is symbolic of the modern air transportation era that is characterized by speed, comfort and personal convenience. The commerce of aviation, both the operation of commercial aircraft for profit and the development of aeronautical systems, is also an important symbol of national prestige and a powerful economic force. Safety in air transportation is therefore a matter of significant national importance.
Analyzing the situation from an objective point of view, it is clear hat the flights
One in twenty five. “One in twenty five people executed are innocent” (Zelman). Innocent lives have been taken because of a problem with a simple solution. The death penalty impacts lives, and that impact is permanent. There is no going back. Knowing about the death penalty and the negatives that it has can help shed some light on the reality of capital punishment. The death penalty should not be enforced. This is to protect the wrongfully accused, the victims of prejudice, taxpayers, and put us on the path to a more successful country.
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