Air Canada

In: Business and Management

Submitted By book24
Words 929
Pages 4
History
Canada was seeing as one the countries that are industrialized in the 1930s but didn’t have a national airline for the country but they did have a bush airline that were regional in the country at the time and the Canadian Pacific held part ownership in the Canadian
Airways (CBC) The regional airlines were serving the transported mail and mining communities but the airline didn’t provide a service between the Atlantic and pacific oceans which made it hard for people to travel to these areas. In 1935 Mackenzie King came into power and he created the Transport department and Clarence Howe was appointed to be Air Canada architect and be the minister (CBC). Clarence Howe wanted to the airline to be put under the control of the government and he wanted it initially to be private enterprise to have a role in it. In 1936 Trans
Canada Air has been legislated on this year and it was a Subsidiary of CNR and then it was turn to be owned by the federal government of the country (CBC). The Trans Canada Air lines have started their airline with only five million dollars and this help pay for the three airplanes that it was from the Canadian airways and they have hire executives that are from the U.S. airlines(cbc). In 1937 the Trans Canada Air has set forward on its inaugural flight and the flight between going to Seattle and Vancouver round trip would only cost $14.20(Cbc). Canadian
Pacific gave an idea to the government for Canadian airways that it is known as the Canadian pacific Airlines to merge with the Trans Canada Air and then Mackenzie King has made the
Trans Canada Air the only international airline in Canada (CBC). The Trans Canada Air has been expanding quickly for over 30 years which has routes to Europe, U.S, Caribbean and Asia and then in 1965 the company has changed its name to Air Canada this shows that it…...

Similar Documents

Air Canada

...Air Canada Evaluation Executive Summary Air Canada is a full service airline company with the largest market share in the Canadian market making it the largest airline in Canada and 15th in the world. I don’t recommend lending Air Canada due to: * Weak industry conditions * Poor historical performance/financial health * Risk factors assessment * Poor credit ratings Summary of Main Points The airline industry is a very volatile industry with a lot of uncertainties. Based on Porter’s five forces, companies in the airline business are faced with challenges such as threat of new entrants, high buyers power, high suppliers power, availability of substitutes, and intense competition. Historical operating results are poor. The company has been having continuing losses since 2008. Also, financially it is not healthy. Air Canada leverage ratio is very high, and obligated to significant debt due to pension fund, employees’ benefit, and orders of new crafts. Labor strike is a major risk factor. Recently, the company was faced with several strikes that caused many flights delays or cancelations. Negotiation is taking place between the company and labor unions. Outcome this negotiation might result in higher labor cost preventing the company from enhancing its cost structure. According to S&P, Air Canada credit rating is B-, which is a non-investment grade. Also, Moody’s downgraded the company from B3 to Caa1 due to its debt obligation and......

Words: 3643 - Pages: 15

Air Canada and Maintenix

...Interactive Session: Technology: Air Canada Takes Off with Maintenix Case Study Questions 1. What problems does Air Canada hope that Maintenix will solve? Air Canada’s old legacy systems were not able to interact with one another or with the finance and inventory systems. The inefficiencies of these systems were costing the airline engineers’ time and money that could have been used on maintaining planes. 2. How does Maintenix improve operational efficiency and decision-making? The Maintenix information system provides integrated, intelligent aviation maintenance, repair, and operations software. That leads the way to enhanced visibility of fleet-wide data, timelier decision making, support of Air Canada’s existing business model, and increased operational efficiencies. The Maintenix system is accessible via the Web and easy to deploy to all stations around the world. It reduces repetitive tasks and time chasing missing or incomplete information by allowing maintenance, engineering, and finance divisions to easily share information. Wireless deployment also makes Maintenix more effective, since aviation technicians, equipment, and parts are always on the move. 3. Give examples of three decisions supported by the Maintenix system. What information do the Maintenix modules provide to support each of these decisions? Three decisions supported by the Maintenix system may include: • Is Part A compatible with Part B? The maintenance......

Words: 329 - Pages: 2

Air Canada

...Air Canada is Canada’s largest domestic and international full-service airline and the largest provider of scheduled passenger services in the domestic market, the transborder market and each of the Canada-Europe, Canada-Pacific, Canada-Caribbean/Central America and Canada-South America markets. Passenger transportation is the principal business of the Corporation and, in 2009, represented 87% of its total operating revenues. During 2009, Air Canada, together with Jazz, operated, on average, approximately 1,331 scheduled flights daily and carried almost 31 million passengers. In 2009, Air Canada and Jazz provided direct passenger air transportation to 156 destinations and, through commercial agreements with other unaffiliated regional airlines referred to as tier III carriers, to an additional 11 destinations, for a total of 167 direct destinations on five continents. The Corporation’s primary hubs are located in Toronto, Montreal, Vancouver and Calgary. Air Canada also operates an extensive global network in conjunction with its international partners. Air Canada is a founding member of the Star Alliance Network, the world’s largest airline alliance group. The Star Alliance Network includes 26 member airlines. Through its strategic and commercial arrangements with Star Alliance members, Air Canada is able to offer its customers access to approximately 1,077 destinations in 175 countries, as well as reciprocal participation in frequent flyer programs and......

Words: 78010 - Pages: 313

Environmental Analysis of Air Canada

...have learned from the posts from CBC done on Air Canada since 1991, it has been a battle for the organization. Many factors have influenced Air Canada's position in the market. Political factors that Air Canada has always dealt with is the fact that it is Canada's national airline. Out of the $160 million dollars the industry received, Air Canada received $100 million (CBC). It seems Air Canada is sightly shielded from the marketplace as the minister of transport believes it should be the national airline carrier. In 1991 (check!) the merging of Canadian Airlines and Air Canada showed that although government tried to split resources for both Canadian airlines, they could not offer enough support for both. During the economic downturn, it became a luxury to fly. The recession had a major impact on the amount of unnecessary flying the public did. In conjunction with soaring fuel costs, it was difficult for Air Canada to keep their prices low (coupled with the recession, that does not equal more flying). Global Health Threats (such as SARS) and terrorism (9/11 and various scares) does not translate to customers wanting to jump on planes. Also, as the media does not portray Air Canada accurately (as per last video) and prices are exactly accurate across all airlines (with meticulous monitoring) there has to be another way for Air Canada to differentiate itself. As mentioned earlier, the sociocultural attitude towards Air Canada is not positive. Though this may be media......

Words: 345 - Pages: 2

Air Canada - Business Innovation Assignment

...Sage Consultants January 19, 2012 Mr Olive Yue, CEO Air Canada 135- 5980 Miller Rd Richmond, BC V7B 1K2 Dear Mr. Yue, Report on Changes and Trends in the Airline Industry I am writing this report in response to your recent request to Sage Consulting to advise Air Canada on the emerging changes and trends in the airline industry. This report will address major issues rather than trivial ones. Currently, the fierce rivalry between the different airlines means that Air Canada must continue to innovate in the ever-changing market place in order to stay relevant. Given that the airline industry is highly sensitive to changes in the wider economy, our company has performed in-depth research and analysis on the challenges and opportunities that these social changes may bring as well as the potential impact that they may have on Air Canada. Furthermore, we have also investigated the innovative practices that are currently being developed by your competitors which Air Canada should be aware of. Based on the strengths and weakness of Air Canada, we have come up with recommendation on ways that your company can best adapt to these changes. We hope that you and your senior management staff will find this detailed report to be useful and insighful. Thank you once again for choosing Sage Consulting Inc. Sincerely. Henry Fung Senior Consultant Sage Consultants Inc. 1055 Georgia Street – Suite 301 Vancouver, BC V6E 3H3 Telephone......

Words: 1637 - Pages: 7

Air Canada

...Air Canada to overhaul maintenance software 1 Comment Greg Meckbach @itworldca Published: April 17th, 2008 The airline has signed a contract with Mxi Technologies of Ottawa to install Maintenix software, which will be hosted by a third party. Among other things, the software allows Air Canada to ensure qualified technicians are available before they schedule maintenance. Find out how it integrates with PeopleSoft When Air Canada technicians work on airplanes, they use several different legacy software packages that have been installed over the last 15 years. The systems don’t always talk to each other or the finance and inventory systems, so the Montreal-based airline has hired Mxi Technologies Ltd. of Ottawa to replace it. The companies announced this week Air Canada is scheduled to start installing Mxi’s Maintenix software next year. The companies did not disclose the total cost, though the contract is worth “multi millions of dollars,” said Hans Downer, Mxi’s executive vice-president for sales and support. Maintenix is designed to let maintenance, engineering and finance divisions share information, and Mxi claims this reduces repetitive tasks. “One of the benefits of the Mxi product is, all of this is integrated into a single system, gives us a single view and a single planning mechanism for our entire fleet,” said Steve Bogie, Air Canada’s program director for the software implementation. “It gets us off that legacy platform and puts us on to a Web......

Words: 742 - Pages: 3

Air Canada

...MỤC LỤC LỜI MỞ ĐẦU 5 A. GIỚI THIỆU CÔNG TY AIR CANADA 6 I. TỔNG QUAN VỀ CÔNG TY 6 II. LỊCH SỬ HÌNH THÀNH VÀ PHÁT TRIỂN 7 1. Từ khi thành lập đến năm 1988 7 2. Từ năm 1990 đến năm 1999 7 3. Từ năm 2000 đến 2003 8 4. Từ năm 2004 đến nay 8 B. PHÂN TÍCH SỨ MỆNH, VIỄN CẢNH VÀ GIÁ TRỊ 10 I. SỨ MỆNH 10 1. Định nghĩa kinh doanh 10 2. Tham vọng 10 3. Các giá trị cam kết 10 3.1. Cam kết cho khách hàng: 11 3.2 Cam kết cho nhân viên: 12 3.3 Cam kết cho cộng đồng: 13 3.4 Đối với bên hữu quan khác: 14 II. VIỄN CẢNH 15 1. Giá trị cốt lõi 15 2. Mục đích cốt lõi 15 3. Hình dung tương lai: 15 C. PHÂN TÍCH MÔI TRƯỜNG BÊN NGOÀI 17 I. PHÂN TÍCH MÔI TRƯỜNG TOÀN CẦU 17 1. Tăng trưởng kinh tế và tăng trưởng vận tải hàng không: 18 2. Giá dầu biến động 18 3. Tình hình bất ổn chính trị 20 4. Biến đổi khí hậu toàn cầu 20 II. PHÂN TÍCH MÔI TRƯỜNG VĨ MÔ 21 1. Tác động của đổi mới công nghệ ( thuộc môi trường công nghệ) 22 2. Nhân tố bảo vệ những tác động của sự biến động chính trị 23 III. PHÂN TÍCH MÔI TRƯỜNG NGÀNH 25 1. Phân tích tính hấp dẫn của ngành 25 1.1 Khái niệm về ngành vận tải hàng không 25 1.2 Mô hình 5 lực lượng cạnh tranh 26 1.3 Các nhóm chiến lược trong ngành 32 1.4 Chu kì ngành hàng không 33 2. Động thái của đối thủ cạnh tranh 35 3. Nhân tố then chốt thành công của ngành 35 4. Lực lượng dẫn dắt thay đổi trong ngành 37 D. PHÂN TÍCH CHIẾN LƯỢC CÔNG TY 40 I. CHIẾN LƯỢC CÔNG TY 40 ...

Words: 20427 - Pages: 82

Canada Air

...ANNUAL REPORT 2013 1. HigHligHts Fourth Quarter Full Year $ Change 55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0 The financial and operating highlights for Air Canada for the periods indicated are as follows. (Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan......

Words: 76430 - Pages: 306

Air Canada Case

...  Case #1: Air Canada About Air Canada Air Canada is Canada’s largest domestic, U.S transborder and international airline and largest provider in Canadian market. Air Canada was the world’s 15th largest commercial airlines as of 2011. The reason which made Air Canada reach this position is that it is able to provide a wider range of services to meet its customer’s preferences. This enabled Air Canada to not only reduce the overall cost of serving its customers, but also serve them better. IT approach and Outsourcing Information Technology has emerged from a discipline that is primarily focussed on financial and administrative tasks, a core component of all systems in airlines. More comprehensive services are offered to the customers by airlines using IT. Given the critical importance to IT infrastructure to the airline’s successful operations, a set of IT principles should be implemented and often changed for a “productive” and “cost effective” environment. In 1994, a contract was signed between Air Canada and IBM with a view to reduce costs and to allow the airline to focus on its core business. But back then as Air Canada was not satisfied with the services offered by IBM, it proposed a request for proposals (REP) to find IT vendor to partnership with for innovation. A lot of requests were received from the potential......

Words: 1315 - Pages: 6

Air Canada Essay

...the one accomplished by Air Canada is not achieved by how excellent you work, is achieved by what you overcome. Air Canada’s innovation and market revolution was the ingredient to an increased recognition and profit spree. But this task was not easy, there are many airlines throughout the world and it is a market that is constantly evolving due to technology, development and the change in transportation. For any type of airline to drastically change the industry, requires a long process of well-crafted and executed management plan to take on an innovative project and deliver it perfectly. A very important observation stated in the case study is that this type of innovation is not limited to new airlines, this promotes competition, the continuous struggle to innovate and make your airline distinct from other airlines is what make employees strive and work hard. By continually looking for new ways to revolutionize and improve the market, in a way everyone boosts each other to achieve greatness. This concept can be applied in every single market and business, there is always a competition to improve and innovate. “Air Canada's development of transparent branded fares, accompanied by the introduction of "a la carte" pricing and travel passes, mark it as a Market Leader in reversing the commoditization of air travel and reestablishing a positive price/value equation for the customer.”-Perry Flint, Air Transport World Editor-in-Chief. This is what Air Canada’s innovative......

Words: 632 - Pages: 3

Air Canada

...Canada 3000 was once considered to be the main alternative airline to Canada’s two national airlines, Air Canada and Canadian Airlines. They offered a comparative advantage to other airlines by offering low fares. In 2000, Canada 3000 decided it wanted to be in the same field as the national airlines, and attempted rapid expansion by acquiring Royal Aviation Inc. and Canjet Airlines. Their expansion strategy was to increase their market by purchasing already existing companies. This growth added many financial problems, resulting in major losses. This led to the companies bankruptcy as they were unable to cope with the new problems caused by the September 11th, 2001 Terrorist Attack. WestJet on the other hand, has become a major competition to Air Canada by sticking to their plan. WestJet’s business strategy was to be the lowest cots operator in the market specializing in short non-stop flights. Another key element of their business strategy which ties into their growth strategy is that they want maximum use of their aircrafts. Unlike Canada 3000, WestJet had a planned growth strategy that the company followed. They planned to grow by adding new frequently flown routes while maintain the already existing ones. They also hoped to initiate their inter-border business by expanding into the United States. A more steady expansion plan has allowed them to expand into a competitor against Air Canada. This is just one example of the competition Air Canada has to deal with.......

Words: 969 - Pages: 4

Air Canada

...service and keeping the lowest cost, by using this technology that provide the customer the full access to track all information to their products. 3) Problem’s that UPS information system solve: UPS faces different problem’s but globally at the top. The process of managing the global delivery network is not easy, they have to organize logistics and supply chain activities for other companies to work efficiently on a global basis. They provide other companies standardized services to subscribing including supply chain design and management, freight forwarding, customs brokerage, mail services, multimodal transportation, financial services and logistics services. If these systems were not available UPS Company could be on the top of the air package distribution company, and could not provide these professional services for their customers, because without these systems, the transportation delivery chain cannot be active....

Words: 363 - Pages: 2

Air Canada Case Study

...AIR CANADA Introduction: Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990-1993, entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27 partners headquartered in Montreal. Air Canada’s mission was to connect Canada and the world. For this it followed an international growth strategy. Making partnerships with Lufthansa and united/continental, helped its growth strategy and connection mission. To reach the goals it followed a strategy involving engaging with customers, mainly focusing on passengers and products. Air Canada mainly depends on IT for their activities. The IT department of Air Canada was made of both recent applications and the back-end applications. In 2007, Air Canada introduced electronic boarding passes for the passengers and in 2009 it introduced iPhone and blackberry application which allows passengers to track flights, and also introduced a rebooking tool allowing the passengers to rebook the flights in case of emergency. For this in 1994, Air Canada made a seven-year contract with IBM. Dual strategic objectives and challenges: Along with IBM Air Canada selected telecom as its provider for telecommunication In 2003 Air Canada started to follow multiple-vendor strategy to get best services available in the market and to reduce cost. For that it selected operation SYS, a company which provides several applications’ which Air Canada need. But, dealing with multiple......

Words: 660 - Pages: 3

Analysis for Air Canada

...Group Project: Air Canada Part 1: societal environment trends 1. Fuel prices: Oil price is highly related to the cost of air industry. According to Algoe, as the oil price increase, airline will spend more on fuel cost, which will have a direct impact on the cost of operation. Even in good time fuel costs constitute roughly 10-12% of operating expense. In addition, fuel cost increases will bring bad impact on economic, which in turn result in a substantial decline in demand for air travel and air cargo. Every penny increase in the price of jet fuel costs the airline industry $180 million a year. For Air Canada, this change would decrease their profitability and company performance. SAS Group reported that the global economic climate is weak, Jet-fuel prices and capacity continue increasing in next few years. High fuel prices presented a significant challenge for the entire aviation industry. Therefore, we consider fuel price is a threat for Air Canada doing their business. Retrieved from http://saraalgoe.hubpages.com/hub/rise-in-fuel-prices-airline-industry http://www.cisionwire.com/sas/r/sas-group-interim-report-january-march-2012,c9254790 2. GDP: According to Trading Economics, the Gross Domestic Product (GDP) in Canada expanded 0.4 percent in the fourth quarter of 2011 over the previous quarter. Historically, from 1961 until 2011, Canada’s GDP Growth Rate averaged 0.8 percent reaching an all-time high of 3.3 percent in December......

Words: 3772 - Pages: 16

Air Canada Case by Laudon & Laudon

...Case: AIR CANADA TAKES OFF WITH MAINTENIX Air Canada is Canada's most prominent airline. It is 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. The airline serves over 33 million customers annually and provides direct passenger service to over 170 destinations on five continents. But the company's information systems had plenty of room for improvement. When Air Canada technicians worked on planes, they used several different legacy software packages installed over the past 15 years. The systems weren't able to interact with one another or with finance and inventory systems. The inefficiencies of these systems were costing Air Canada the time of its engineers and money that could have been used on maintaining its planes, instead of needlessly maintaining excess inventory. Air Canada turned to Mxi Technologies for help in addressing these problems. Mxi is reknowned in the airline industry for its Maintenix software package, which provides integrated, intelligent aviation MRO (maintenance, repair, and operations) software to aviation organizations hoping to improve productivity. The benefits of Maintenix that interested Air Canada were enhanced visibility of fleet-wide data, timelier decision-making; support of its currently existing business model, and increased operational efficiencies. Maintenix provides a system platform that is accessible via the......

Words: 803 - Pages: 4