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Air canada overview
Air canada overview
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Market / Industry Analysis The NAICS code for Air Canada is 48111, which stands for Scheduled air transportation. The International Air Transport Association (IATA) is the global trade association for the airline industry. It focuses on representing, leading, and serving the whole airline industry. Air Canada and Air China are both the members of The International Air Transport Association, which means they all have the same value and put passengers’ safety on priority. Also, ITAT supports these airlines to help them reduce carbon dioxide emissions by promoting the Carbon Offset Program among them. ITAT is also a great platform for all airlines around the world to corporate and become partners. According to SME Benchmarking, there are 260 companies …show more content…
43.1% of sales in Scheduled Air Transportation are Scheduled international passengers, which is the largest portion of the whole industry, and 26.6% of it are Scheduled domestic passengers. Since Air Canada is the largest airline of Canada that provide services for both international passengers and domestic passengers. The majority of its revenue comes from international passengers on long-haul flight. The industry’s international passenger segment has been growing at a rapid pace in the past years. Being one of the major carriers, Air Canada gets the most volume, and 42.6% market share in the whole industry. The Scheduled Air Transportation industry is expected to continue growing for the next few years. The major market segmentations in the industry are consumers and business travelers. Consumers who travel for a vacation, to visit family members are estimated to be 76% of total industry revenue. For business travelers, they account for about 17% of industry revenue since they often choose to pay for first class or premium economy for their seats. However, the competition in the Scheduled Air …show more content…
In 2013, air transportation made 23,104.8 million CAD sales, and other transportation includes bus, ferry, rail, and cruise only made 3248.7 million. It is easy to see that consumers prefer taking airplanes than other transportation when going for a trip. From the data provide by PMB Product Data, 17.7% of Canadian above 12 years old will choose Air Canada compared to other airlines. People from Edmonton are 103% more likely to choose Air Canada than average Canadian while people from Montreal are 17% less more likely to choose Air
The new trend in airline industry to use fuel efficient, high -tech aircraft is of a major concern for Air Canada. It has been under immense pressure to replace its fleet aircraft with more efficient Boeing 777 aircraft. However, the airline has purchased some Boeing777 aircraft, but these new purchases are used only for more profitable international routes depriving Air Canada’s domestic consumers of the facility. Furthermore, the varied fuel price has affected pricing policy significantly as its promotional policies are more price point based as compare to consumer based.
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
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
WestJet is the second-largest carrier in Canada, which mainly focuses on economic airlines. In decades past, WestJet expanded its destination network form all western Canadian cities to international scope. During this development period, IT played a important role. For example, electronic ticket is used in the airline reservation system. However, some IT-related issues also hinders the company’s development.
When it comes to customer service, Air Canada has a few positives. Passengers will feel safer knowing that there will be crew members in the cockpit at all times, so an event like the Germanwings crash does not occur again. They will enjoy the lower cost of their flights, as Air Canada tries to become more competitive. In the Boeing 787 Dreamliner, passengers have improved reclining in their seats, a more modern entertainment system, less turbulence, 40% humidity (so it feels like they're sitting at home), and more advanced windows. There is a new mobile app and an updated website, so passengers can conduct their business at their convenience. The airline is also trying to focus more on customer service, with pre-filled customs form, and flight
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
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).
Air travel has developed into the main form of transportation this century and its demand will double in the next 20 years. In order for airlines to maintain their profitability, they have turn to airline revenue management. Ever since deregulation, airlines have adopted this system to maximize revenue and profitability. What exactly is revenue management? Is a system designed to take advantage of the market, by segregating the market population into different categories of consumer needs, income, and overall behavior of the consumer. Through this process airlines carriers enhance product availability and price to maximize revenue.
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The main threats to the industry over the next five years are the rise in price of oil, legislation, the TSA, and labor costs. Each of these threats effect the scheduled air transportation industry not only endangers Delta Airlines but the entire industry. As the price of labor increases for ground operations and pilots this creates a burden on the industry by causing them to spend more to satisfy their labor requirements. The price of fuel increasing leads to the price of fuel to increase, which not only affects a single airline but every airline. With each time that the crude oil price rises the prices associated with the costs of refining the jet fuel as well as transporting it. These costs are distributed to each airline as they use this resource to transport passengers. As new politicians are elected to Congress and new administrators take charge of the FAA new regulations regarding this industry. These regulations affect everything from mergers to the airspace that the airlines operate in as well as what hubs and airports each airline operates out of. These factors are not issues that the industry faces, the TSA, the Transportation Security Administration, creates an unnecessary burden for the passengers attempting to travel from one location to another. The TSA inspections required before a passenger is allowed to board their respective flights allows time for each passenger to become frustrated with the amount of time they have to allot for inspection as well as the invasion of their privacy.
Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides.
The International Air Transport Association (IATA). 2014. Airline Cost Performance. IATA Economics Briefing. [report] IATA, p. 31.
Air Mauritius is an airline company with its head office based in Mauritius Islands. Its fleet consist of a medium and long-haul aircraft comprising of 4 Airbus 340-300C and 2 Airbus 340-300E and a short-haul aircraft for inter-island routes comprising of 2 ATR 72-500 as well as an helicopter fleet comprising of 2 Bell Jet Ranger (Discover our fleet, 2015). Air Mauritius is not only about travelling, it also provides services and products in different departments such as cargo and the inflight sales and entertainment services in order to accommodate its customers at its most. The cargo department offers facilities to travel products ranging from seafood, valuables, textile, flowers, vegetables