Air Canad Business Brief

Air Canada benefited from a slow growing economy, as Canadians had the spending money for travel. The airline has had record profits for two straight years, with a revenue of $531 million in 2014. In a recovering economy, interest rates will rise, and middle-class families will have less money for travel, which should mean lower profits. However, the changing economic climate greatly benefits Air Canada. Lower fuel prices means profit windfall; it is predicted the airline's predicting pre-tax profit could rise 50% to surpass $1 billion. The low Canadian Dollar has also brought a surge of international travellers to Canada for cheaper holidays. Furthermore, they are expected to gain a $50-$75 million profit, with their $25 check-in fee. This

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

WestJet Airline’s initial launching was reciprocal and tailored to providing low cost airfares to every traveller that flies onboard to more than 100 destinations across the world. As stated by Clive Beddoe, WestJet founder, is a big advocate of adopting the “Cost Leadership” competitive strategy based on his strong belief that “just because you pay less for your flight, doesn't mean you should get less” (“WestJet”, 2018)).

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?

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.

As a company, WestJet does not show a lot of weaknesses. However,the lack of international and Trans-Continental flights in the world of rapidly rising economies, international business and marketscould be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travellers are looking to fly with some added comfort and special service, WestJet does not provide any sort of first class seating which can be a factor of lost business. However, December 2012 WestJet launched“premium economy” class flights program, which is designed to satisfy particular customer’s demands with extra legroom and services. Travelers have also dissatisfied with the fact of lack ofseats for larger passengers, becauseWestJet airplane’s seats aren’t big enough. Moreover, some passengers do not agree with the complimentary snacks only being served on flights two or more hours in length. In addition, Due to small crafts WestJet may become a victim of stereotype of low-cost, low-fare, and short-haul scheduled air carrier only.

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.

Air Canada mission is simple and straightforward which is the connect Canada with the world. Naturally focusing on improving their financial performance in order to increase productivity and its cost structure. To minimize fuel emission and other greenhouse gases based on Air Canada’s environmental concern. Their vision consists in building loyalty through quality service and innovation.

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)

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

For instance, Canada's federal government has delegated the responsibility for airports to local authorities. As a result, many Canadian airports have transformed into brighter, cleaner, and more modern facilities that have become more expensive to operate 3. Canada’s airports have spent more than $9.5 billion on improvements since 19922. According to the CEO of Transat A.T. Inc, “it costs three times as much for an airline to land in Pearson Airport in Toronto as at Charles-de-Gaulle in Paris” 2. Such high landing fees have made Pearson and other major Canadian airports less desirable landing destinations; increasing costs for airlines, and as a result, often increasing prices for consumers. Pearson Airport is West Jet’s “second-largest hub and main connection point in Eastern Canada” and almost half of its destinations are to Canadian airports2, Such high costs of landing in major Canadian cities require that WestJet finds more ways to cut costs and remain the cost leader in its industry.

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.

* Fuel. This is a huge weakness and gamble. Trying to manage fuel and the cost in a market that is constantly changing is a weakness.

Analyzing the situation from an objective point of view, it is clear hat the flights

There have been various steps across the globe directed at improving aviation safety. This is done by engaging in partnerships with the various manufacturers, regulators, operators, unions, and other stakeholders in the industry. The most feasible way of dealing with aviation safety is to analyze the main factors that cause risks within the aviation sector, these ranges from human factors and outdated equipment to recent threats like terrorism (Caldwell & Williams, 2012). Insecurity leads not only disruption of the business of airline companies but also loss of lives and this is unacceptable. There should be systems to ensure all the security lapses within