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Air Canada Business Analysis

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Question 1:

What are the advantages of having new modern planes? What are the disadvantages?
Advantages:
    • Less maintenance cost
    • Reliability of plans
    • Updates technology
    • Less fuel consumption
    • New added safety features
    • More space available for passengers (leg room)

Disadvantages:

    • Cost of obtaining the new planes
    • Technology costs to replace or maintain
    • Finding the staff that have the knowledge / experience to operate the new technology
    • Increased insurance costs

Question 2:
What are some of the difficulties in long-term forecasting for air travel?

    • Predicting economic factors (decrease in air travel)
    • Fuel prices
    • Increase to ticket prices
    • Unexpected disasters for example 9/11 , SWIN flu

Question 3:
What are some of the difficulties in workforce planning and change for Air Canada?

    • When Air Canada took over Canadian Airlines, due to this take over Air Canada became heavily unionized because the Pilots, maintenance mechanics, flight attendants, ramp and cargo employees and sales and service agents all had different unions representing them. This made it quite difficult for Air Canada to change any workforce planning as a result of trying to harmonize workforce planning, Air Canada during negotiations had to guarantee job security for most of these groups. It had to give salary increases to Canadian employees to bring their pay up to Air Canada’s and it had to give bonus to its own employees in order for them to agree to this.

Question 4:

Were the introduction of Tango and Zip a good idea? Explain.

According to the case Tango and Zip was introduced due to increased competition from West Jet. However, the introduction of these two low-cost subsidiaries only reduced Air Canada’s revenues. Although Air Canada introduced low-cost air fairs it did not make changes to its’ cost thus making it very difficult to compete against West Jet. Therefore,...

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Air Canada Business Analysis. Anti Essays. Retrieved December 15, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Air-Canada-Business-Analysis-69255.html