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Case study of air canada
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After reading the Air Canada case, answer the following questions: Explain the key environmental factors that Air Canada must continuously monitor and why? Since Air Canada is one of Canada’s largest operating Airline, they have a large responsibility of maintaining a “safe” reputation in the Airline Industry. That said Air Canada must closely monitor environmental factors for domestic and international travel. With snowy Canadian winters of almost five months Air Canada is forced to face more issues, such as severe winds, icy conditions and snowstorms. This not only causes turbulence problems for while the air craft is in flight but also this is a safety concerns for Air Canada’s employees, specifically gate agents and those handling …show more content…
Air Canada is also the largest airline in the United States operating in 60 destination! With a high volume of their operations running in America they must keep a close watch to the weather conditions across the border. For a brief example New York, and Chicago have severe winters close to Canadian winters, this means Air Canada not only has to monitor their local weather but also has to keep a sharp look out for any blizzards, or storms in the area of the desired destination of the flights they operate. With severe weathers from the moment of departure to arrival in the desired destination it requires Air Canada and its employees …show more content…
How can the government affect industries such as the airline industry? Government regulations have a big impact on how the Airline Industry works, besides the strict policies and regulation Airlines must follow; Airlines are also entitled to large airport taxes including the cost for security changes, airport rent, and fuel excise taxes. The example in the article illustrated the regulatory Airport tax that Canada charges Air Canada to land on a Canadian Airport is much more than in comparison to if that plane was to land in America. Being a Canadian based company (with hubs in Canada) Air Canada must follow these regulations and it does cost them at a disadvantage. 4. What do you think may be the key success factors for the airline
The legal rights of its employees must not be violated. "For the assurance of smooth operations, Air Canada comply with all the law defined criterion such as no excessive burden etc on employees as per defined by the law. The safety, hygiene, and effective regulations are factors that are legally imposed, and Air Canada do operate within the capacity of
Addition to caring to the guests, westjet involve in many community investment, which reveal that westjet's culture of caring has not ended at the aircraft door. (3)Westjet take contribution to the society as their responsibility and participate in charity programs, such as Missing Children Society of Canada and The Canadian National Institute for the Blind. It is not hard to say that westjet is very caring and thoughtful.
In the Travel Pulse article "Airlines Leaving Us Little Choice – Like A Monopoly," posted by Rich Thomaselli, the practice of monopolization is observed in the airline industry. The author criticizes large airlines on their growth that has led to at “93 of the top 100 [airports], one or two airlines controlling a majority of the seats” (Thomaselli). The scornful article was written after recent events that have caused the Department of Justice and five States to sue two of the biggest U.S.
I have never had a strong opinion on monopolies in Canada. However, I believe that monopolies can stifle innovation, competition, and affect the prices that the consumer has to pay for a product or service. Since we live in a mixed market economy, Canada has very few monopolies such as the health, airspace, and telecommunications industries. Companies within theses industries are notorious for price fixing, lack of innovation, and competition. These problems are prevalent because of the barriers to entry the new players face such government regulation, the cost of doing business, and infrastructure.
Air Canada is Canada's biggest aircraft and the biggest supplier of booked traveler benefits in the Canadian market, the Canada-U.S. Trans outskirt showcase and in the worldwide market to and from Canada. In 2015, Air Canada together with its Air Canada Express provincial accomplices conveyed more than 41 million travelers, offering direct traveler administration to more than 200 goals on six landmasses. Air Canada is an establishing individual from Star
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
The US, by contrast, has been deregulated since 1978 and is a market-driven industry. Domestic traffic is almost completely deregulated (except for specific issues like safety), but international traffic is governed by constraining bilateral agreements www.vocationallearning.org.uk/teachers/subjectspecific/supportpacks0405/pdf/tour_resources_d.pdf+deregulation+in+airline+industry 4) PESTLE ANALYSIS: POLITICAL FACTOR: http://books.google.co.uk/books?id=cVu4E4eB5lAC&pg=PA50 They are the main backbone of the airline industry as the airline companies get heavy revenue from them as being the passenger of the business class. But as to the modern age of science and technology, the airline industry would have to suffer badly in the near future as these business people are now-a-days relying on the aspect of video conferencing as it has made their life much easier and convenient. Now they don’t have to travel so frequently from country to country as they are managing it straight away from their respective offices through the Video Conferencing.
As the nature of air travel is largely logistical, it is hard to talk about the industry without addressing geography. Airlines don't just have to market to customers in terms of geographics, the airline industry is geographic; getting a customer from where they are to where they want to be.
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
Government Role: - Government is an important stakeholder for the aircraft business. Government subsidies and protection play a huge role in the aircraft business. (Discussed later in the write up)
Although it is not always snowing in Canada, Canadians do frequently experience low temperatures because of the fact that Canada is located in the northern hemisphere and are therefore closer to the Arctic Circle. This generalization once again does not cover the identity of all Canadians. The reason for this is that not all Canadians are simply used to the cold. There are many immigrants that came from tropical countries who are only used to wet and dry weather. In addition, Inukshuks were traditionally used in cold temperatures, Canada for example. Since many years ago, Inukshuks have become a national symbol of hope and friendship for all the citizens of Canada, perhaps because they were used as guides or markers before (Inukshuk Gallery). Another interpretation of Inukshuks would be the constant change of the definition of Canadian identity. History still generally speaks about Canada, and represents change in the future. The significance of Canada’s climate is that it leads how Canadians live and play in their daily life. Just like how seasons change annually, the definition of the Canadian identity varies every time Canada welcomes immigrants every year. The climate of Canada defines the variety of environment and the need for adaptable citizens. Majority of Canadians values the
When the storm hit Atlantic Canada it shut down everything from schools to bridges with extremely high winds, and a mix of rain and snow. “ The storm was to be followed immediately by a blast of face-stinging cold air that could break records in more than two dozen cities and bring wind chills as low as -40 C this weekend” said a forcaster. Social-media images showed the true damages this storm caused, one Halifax house lost it’s roof and another building that had somewhat collapsed. In Nova Scotia the wind and the rain amid the temperature was above freezing point. New Brunswick faced heavy snow that made it impossible to see across the street and that made the driving conditions really bad.
International airlines are greatly affected by trade relations that their country has with others. Unless governments of the two countries trade with each other, there could be restrictions of flying into particular area leading to a loss of potential air traffic (e.g. Pakistan & India)
...n there long enough in the United Kingdom and hence most airports in UK are privately owned such that they generate a lot of profits due to passenger traffic despite the high government charges in airline fees.
The hazards associated with an ice storm include: dangerous travel conditions, power outages, broken tree limbs, and compromised structures due to the added weight of the ice. The soci...