Air Canada's Strategic Issues In The Case Of Air Canada

Canadian based airline may find it hard to find strong support from US and International customers

According to MBASkool (2015), a SWOT analysis has been completed to show some of the opportunities and threats that American Airlines faces. They are listed as follows:

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

"In 2014, Air Canada achieved its best full year financial performance in the Corporation 's 77-year history," said Calin Rovinescu, President and Chief Executive Officer. (Air Canada Website CIO 2015) Adjusted net income was $531 million, representing an increase of 56.2 per cent year-over-year.” The purpose of this paper is to examine how Air Canada in 2011 successfully aligned their business strategy and Information Technology (IT) by managing information resources on several levels to accomplish a competitive advantage over other airline carriers and gain the attention of their customers through innovation. Finally, this paper will address suggestions to achieve better Business-IT alignment to meet Air Canada’s goals for the future and continued success.

Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.

However, despite the correct decision to privatize, the company continued to have troubles. The financials of the newly privatized airline were unreflective of the successful stock offerings. “Air Canada reported losses of C$74 million in 1990 and C$218 million in 1991, and it reported that it had nearly two million fewer passengers in 1991 than in the previous year.” These failures were blamed on the effects of the economic recession and the decrease in travel due to the war in the Persian Gulf. However, it was clear that competition with international carriers was a major cause. To elaborate, the airline industry is considered to be a cyclical industry, meaning that it is directly affected by the business cycle. As such, during times of

The number of rivals that Air Canada would have would depend on the location of the airports. The major competitors for Air Canada are American Airlines Group, Delta Air Lines, WestJet Airlines, and Porter Airlines. The quality of these other airlines depends on each of their planes, some of Delta Air Lines planes are a lot bigger so they can offer a lot more than Air Canada. Air Canada offers a lot of services as they have a lot of flights that fly from city to city in Canada unlike Delta or American air lines. Air Canada competes a lot with WestJet and Porter airlines in Canada. Rivalry is more intense at bigger airports around Canada. For example, Charlottetown only has three different airlines that currently fly here every week. Where in Toronto they experience a lot more air traffic so more airlines can offer better deals to fly somewhere from Toronto to anywhere in the world where Charlottetown. If people in Charlottetown can find a better flight from Moncton or Halifax they might

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.

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.

WestJet develop their IT operation early and force them get the lead in the aviation businesses. However, as the global economic and the change of people’s demand, the strategic plan of WestJet need to be change to follow the change of the world. Compare with other aviation business, the IT structure of WestJet is small and keeps running on their pervious operation before Smith join into the organization. There are some risks coming out if WestJet continue these IT operations.

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.

Not capitalizing on the share that they have. WestJet could be charging more for fares, albeit at the risk of losing the loyalty of their guests.

Overview Bombardier Aerospace is a division of Bombardier Inc. and the third largest global airplane manufacturer after Boeing and Airbus. Its headquarters are in Quebec, Canada, and with 33,600 employees is poised to become a major player in helping the developing world acquire aircraft. The C-Series is a family of narrow-body, twin-engine, medium range jet liners which, despite some challenges in orders, remains a committed product line. It is designed for the 100-150 seat market, which is about 20,000 aircraft globally and represents about $250 billion in revenue over the next few decades. One interesting fact about the C-Series is that it is truly global in components and supply, sourcing from manufacturers in China, Italy, The Netherlands, France, the United States, and Great Britain (Change is in the Air, 2012).

Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline

One of Canada’s gigantic airline company, Air Canada, has been successfully adopt the diversity culture in the workplace for 75 years. The CEO’s of Air Canada, Calin Rovinescu believes that the company will always grow with support and from the customers and employee, and how the employees and managers work together under one company’s culture. Air Canada is the company where the growth and development decided by the rates of customer’s travel. The customers are the key of their long term success. Because of that, the company always thirst on the idea of diversity in the workplace, where employee from any backgrounds will handle customers with any backgrounds with their best. Air Canada’s great value of diversity made the company has been