Air Canada's Strategy Plan Suggestions

1190 Words3 Pages
bulb-icon

Recommended: Analysis of Air Canada case study

https://www.aircanada.com/en/about/investor/documents/2012_MDA_q4.pdf
STRATEGY
Air Canada continues to build strong strategic plan in order to strengthen their competitive position in the market and fulfill the vision of its stakeholders, shareholders, customers and employees. They should adopt the following strategies in order to optimize their business:
• Cost transformation and Revenue Enhancement
• International expansion and connecting traffic
• Engagement with customers
• Foster positive change to its culture
Cost transformation and Revenue Enhancement
Air Canada should pursue revenue generating and cost reducing opportunities by investing in new technology, implementing effective and efficient projects and concentrating on employee productivity through contract negotiations and continuous improvement that goes hand in hand with its long term goals. The announcement of the launch of “Air Canada RougeTM “ will aid as Air Canada’s competitive advantage with the “new low-cost leisure airline”. It will help increase its revenue, lower its costs and enhance its profits. Also, to better manage its fleet, they should soon implement the “new five-year collective agreement with the Air Canada Pilots Association (ACPA)” that can help the airline increase its productivity and better its competitive position while maintaining a low budget. Air Canada is expected to implement a new “revenue management” that will help optimize its profits based on passenger revenue.

International Expansion and connecting traffic
Air Canada should aim at expanding internationally, growing its market share and increasing its traffic through international gateways such as the U.S. Air Canada is a widely recognized brand and holds a strong position in the...

... middle of paper ...

...new its agreements with companies such as Aeroplan that help increase its customer base.
• Launch regional flights in order to compete with its rivals such as West Jet.
• Frequently change the ticket prices based on the customer traffic during the three quarters.
• Get a contract with one of the oil companies so as to get a consistent crude oil rate for a long period of time.
SHORT TERM GOALS
• Regulate the flights with no delay if possible.
• Introduce new technology that can help the customers avoid the boarding pass line and choose their respective seats.
• Allow quality choice food to its customers along with good entertainment such as TV screens. There should be no need for the passengers to buy an earphone set or a food item
• Change its regular ticket prices in order to compete with the rivals.
• Get regular feedback from the customers and the employees.

Show More
Related

  • The Airline Industry After 9/11

    2026 Words  | 5 Pages

    The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f...

    Read More

  • JetBlue

    1701 Words  | 4 Pages

    The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.

    Read More

  • The Airline Industry

    973 Words  | 2 Pages

    The issue that is being discussed in whether or not the government should help Air Canada out financially. As can be seen in the articles presented in the scrapbook, it is known that the government controls many of the operations at Air Canada.

    Read More

  • JetBlue Airways

    1679 Words  | 4 Pages

    JetBlue's mission is "to bring humanity back to air travel". Its low-cost strategy is second-to-none, not even to Southwest. Utilizing Southwest as a model and benchmark early in Neeleman's career in the industry, he's managed to copy the Southwest model and expand upon it with his ability to find more innovative ways to cut costs along the organization's value-chain, while utilizing technology to increase productivity and further add to operational efficiencies. JetBlue's value chain demonstrates its ability to successfully compete in several key areas relative to the bases of competition within the industry and creates processes that focus on reducing costs, for the specific purpose of continuously creating value for its customers, i.e. fare pricing, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, in-flight entertainment systems and frequent flyer programs.

    Read More

  • Southwest Airlines

    1119 Words  | 3 Pages

    In the airline industry, Southwest Airlines is considered a true innovator. By shaking up the rules of flying and improving upon inefficient industry norms, Southwest has quickly grown by leaps and bounds. From the very start, Southwest Airlines' goals were to make a profit, achieve job security for every employee, and make flying affordable for more people (Southwest,2007). Southwest has not strayed from these goals. It does not buy huge aircrafts, fly international routes or try to go head to head with the major carriers; and thanks to a great planning, Southwest airlines has become the most successful airline company in the U.S., if not the world.

    Read More

  • Company Analysis: Northwest Airlines

    831 Words  | 2 Pages

    Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.

    Read More

  • Southwest Airlines Case Study Solution

    707 Words  | 2 Pages

    Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...

    Read More

  • IT Governance in Airline Industry Case Study

    1556 Words  | 4 Pages

    Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).

    Read More

  • The Analysis Of Westjet's Company Personality

    710 Words  | 2 Pages

    Westjet has a unique corporate spirit: To enrich the lives of everyone in WestJet's world by providing safe, friendly and affordable air travel (2). In order to fulfill this company mission, westjet pursue to become one of the five most successful international airlines in the world by 2016, providing the guests with a friendly and caring experience that will change air travel forever.

    Read More

  • Air Canada Mission Statement

    1707 Words  | 4 Pages

    Growing globally- Air Canada have the opportunity to grow globally by building their network with different countries and this relationship should be long lasting for more growth.

    Read More

  • Southwest Airline Merger With AirTran

    1448 Words  | 3 Pages

    Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...

    Read More

  • Jet Blue Marketing Mix

    714 Words  | 2 Pages

    With regard to Product, JetBlue is cornering the marketplace with its productivity, in-flight features, and customer service. Due to the fact that the company only purchases new planes of a single type, maintenance downtime is reduced and it is able to keep its planes in the air. In fact, JetBlue maintains the highest in-air average in the industry. Additionally, JetBlue employs an "operational recovery tool" technology that allows planners to minimize flight cancellations and delays. On board, JetBlue prides itself on treating all customers as equals and providing more comfort than other airlines. Features that draw customers in include assigned seating (contrary to its competitor, Southwest Airlines), leather seats, more leg room, and superior on-board service. Furthermore, JetBlue is one only a few airlines that offers each passenger free Direct TV and XM satellite radio entertainment. Finally, with regard to customer service, JetBlue focuses intently on attracting and motivating a talented workforce. The company gives each employee a sense of ownership in the operations. This value and respect bestowed on each employee translates into a motivated, productive workforce that focuses on customer satisfaction and exceeds consumer expectations.

    Read More

  • Airline Sustainable Competitive Advantage

    1432 Words  | 3 Pages

    Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.

    Read More

  • Product Strategy of the British Airways

    2943 Words  | 6 Pages

    Service is an intangible product involving a deed, performance or effort that cannot be stored or physically processed, were customers directly participate in the production process. Product strategy is therefore very vital for the organization's success. It needs to be developed and manage very careful in order to be successful. British Airways product strategy includes flight services, quality of flights, various destinations across Europe and the world, executive class, business class, speed, security, support facilities and years of experience. It provides the basic product and various alternatives to satisfy all the different customer needs.

    Read More

  • Strategic Analysis of Ryanair

    4040 Words  | 9 Pages

    The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.

    Read More

More about Air Canada's Strategy Plan Suggestions

Open Document