Introduction
Air Canada has four hubs and all are located within the country. They are Toronto Pearson International Airport, Montréal–Pierre Elliott Trudeau International Airport, Calgary International Airport, and Vancouver International Airport. Due to the large geographic area of the country, air transportation is the primary mode of travel for the Canadian population. Canada’s population growth rate was the highest amongst the G8 countries between 2006 and 2011 at 5.3%. Along with that, the Canadian economy has been growing at a steady pace since the 2008 financial crisis. In 2012, air passenger traffic in Canada increased by 4.8% which was the third consecutive annual increase since the 2008 financial crisis. In terms of aircraft movements, the four hubs aforementioned have the highest number of aircraft movements in the country in 2013, totaling 94,810 aircraft movements in December 2013 alone which is 63% of the total aircraft movements among 41 Canadian airports that have air traffic control towers.
For decades, all Canadian airports were managed directly by the federal aviation regulatory authority Transport Canada. In the early 1990s, the federal government analyzed options to reduce financial subsidies in the management of public airports. In 1994, Transport Canada instituted the National Airports Policy, whereby it privatized airport operations to newly formed airport authorities that are non-profit capital corporations. All four of Air Canada’s hubs were
As mentioned above Westjet WestJet offers high quality customer service, WestJet offers flights to over 30 cities in North America, including some of the cheapest airfares to destinations such as Hamilton, Calgary, Toronto, Montreal, Winnipeg, Edmonton, Calgary, Vancouver and more. WestJet has recently expanded its service into the
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
This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better
The land that was chosen for the Airport site was in Adams County but it lacked infrastructure development. This means DIA will need to create that infrastructure like water, power, and sewage disposal. In turn, this will increase DIA project costs. In the case study from Project management: a systems approach to planning, scheduling and controlling, Adams County also negotiated an agreement with DIA but it limited DIA “to such businesses as airline maintenance, cargo, small package delivery, and other such airport-related activities” (Kerzner, 2001, p. 643). In both the examples, we see that negative stakeholder involvement was detrimental to
In recent years the Airline Industry in Europe has experienced good levels of growth. Despite instances of deceleration the market is forecasted to remain stable producing moderate growth through to the end of the forecast period in 2018. According to a report issued by MarketLine in 2014 the European Airlines industry had total revenues of $180,945.8m in 2013, which represented a compound annual growth rate
This case study will discuss the pros and cons of operating an airport with a government-operated system of security versus returning to a privately owned and operated security organization. The Transportation Security Administration (TSA) was introduced to the airline industry after the attacks on September 11th, 2001. Complaints of slow wait times during periods of heavy traffic and the ability to manage the labor force have recently sparked an interest of Airports switching their security to a privatized company.
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.
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.
With a big airline such as Delta, this should say something to the people who are for the effort. The backbone to an airport is its infrastructure,and how well it can run may come into question with the new sector of privatization of ATC. Airports across the U.S. have been interviewed on this issue and many come to the same conclusion NO to privatization. An article discusses an interview with high level officials at D.C. area airports
The Delta airlines serve more than 170 million customers each year.the survey conducted by Business travel news annually the delta airlines came No.1 for four continues years.
This was evident with the purchase of Canadian Airlines, in 1999 (The National, 2003). With the purchase of this airline, Air Canada also inherited their estimated eight billion dollar debt (The National, 2003). Also inherited from the merger, were underappreciated employees and under trained employees who lacked morale (The National, 2003). In 2003, Air Canada filed for bankruptcy (The National, 2003), this was due to the large financial deficit, the economy and the underappreciated/paid employees. Although, this was a difficult time for the airline, this truly marked the change in how the airline is structured. In 2005, it marked the true return of Air Canada, they reached record breaking revenues and far exceeded anyone’s expectation, including their own. Currently Air Canada, is the largest Canadian Airline, which has a lot to do with their change in business strategy.
With the rapid growth of commercial air travel in the 1970s, the FAA recognized that the nation’s airports contributed significantly to the national economy and international commerce, as well as being a critical mode of transport for the public. Airports needed funding to improve safety and maintain airport infrastructure such as runways, taxiways, NAVAIDS, and land acquisition. The Federal Aviation Administration (FAA) formed the National Airport System Plan (NASP) to ensure these significant airports received Federal grants to make these improvements. The FAA revised the NASP with the Airport and Airway Improvement Act of 1982 and called the National Plan of Integrated Airport Systems (NPIAS) to reflect the further expansion.
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.
Those in the de-regulation camp see an opportunity to expand on the Deregulation Act. When the act was written, the government was taken out of the business of setting fares and routes. But various municipalities still retain ownership over airports. Given the massive improvements
Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and