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This Is a Summary on the Risk Management Case Study of Air...
REPORT ON RISK MANGEMENT OF AIR CANADA
SUBMITTED TO :
MRS.VANDANA MEHROTRA
SUBMITTED BY:
KUNAL KOTHARI
MOHITA AGARWAL
SAIMA AHMED
APURV SHARMA
NAINA SINGH
SONAKSHI RATHI
AIR CANADA– RISK MANAGEMENT
INTRODUCTION:
Colin Rovinescu, the Chief Executive Officer (CEO), for Air Canada was reviewing the Risk Management program of the company because the
scheduled board meeting was approaching soon. He needed to deliver a comprehensive presentation in front of the board members.
CHALLENGES FACED BY THEAIRLINE INDUSTRY:
An Airline is a business providing a system of scheduled air transport. Also called airway. Airline industry is the business of transporting paying
passengers and freight by air along regularly scheduled ... Show more content on Helpwriting.net ...
Fostering a culture of change–
During this time, the operating losses had turned into income and the primary reason was an increase in demand. The demand of premium cabin was
near about half the $256million increase in sales.
THE BOARD:
The board consisted of the leaders of their own fields. It included physicians, lawyers, politicians and some of the former CEOs of airline industry.
The board was relatively new and the most severe member had been there for four years. The risk management was the major issue which attracted most
attention of the board and they dedicated more time on attention n risk management since the financial collapse.
TYPES OF RISK:
Risk management is a much broader process in aviation industry. It includes basically solutions to the various risk factors. They are as follows: *
Catastrophic Risk: Despite flying being the safest form of traveling, catastrophic risk is attached with the aviation industry because if any unforeseen
circumstances take place then major monitory damages happen. It lies in the LOW FREQUENY–HIGH SEVERITY zone. This type of risk is usually
transferred to the third party through insurance. The entire commercial aircraft is insured in about $100 million to $250 million. * Operational Risk: It
includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management
and repair of equipments. The risk involved has low
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Transportation Security Administration
Transportation Security Administration has important top class advanced imaging and selecting To check a passenger's ful body to hide the full
scanners that include technology (AITs) Weapons, explosives, and other contraband system detacted. AITs mainly the threat of terrorism acts By an
IED downing for a commercial airliner to prevent dedicated (Improvised Explosive Devices Device) smuggled on board by a passenger. The cost of
this technology will reach $ 1.2 billion per Year by 2013 to 2014. System prepared for the traveler AITs preliminary cost
–benefit analysis Screening at
U.S amd Canadian airport working this time. In this section, sevice frequent–flyer programs are more and more travelers have different prices as own
country to the point to where the above is free. And Or discounted tickets for in service of customer Recently, airlines have expanded the number of
increase fees on routes schedules. For the transport of goods and other services charge for air travel and provide Execllent services for passenger.
Threat to homeland security needs assessment and cost– benefit Programs , and supported by the Department of Homeland Security In particular, force
, government , industry, and many examples ( social is made by U.S. National Research Council After a 15–month study period , the main
recommendations DHS , and Their main conclusion was: " The committee did not find any DHS risk analysis Buy DHS capabilities are sufficient to
support the judgment and
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Air Canada 's Business Strategy Essay
Over the years Air Canada's business strategy has changed and has been reconstructed a number of times. Air Canada's mission has always remained
the same, "connecting Canada and world" (Air Canada, 2016), but their visions and goals, have transformed.
Air Canada's early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards
their staff felt underappreciated. Their customers felt as though their feedback wasn't being heard but in the eyes of Air Canada as long as their business
was expanding, they were satisfied.
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.
Air Canada is now an
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A Report On Sustainable Biofuels
Executive Summary
With the goal of achieving carbon neutral growth by 2020 the aviation industry views sustainable biofuels as its tool to reach that goal. The major
aircraft manufacturers are leaders in the research effort, utilizing their resources to fund and facilitate early tests with biofuels. While a core group of
airlines using a very limited supply of biofuel is testing the commercial viability of biofuels across diverse networks.
Ethanol, made from corn, is part of the first generation biofuels, which are cheaper but have a larger impact on food supply. The price of ethanol is
higher than the current gas prices when factors like transportation and labour are taken into account. However, airlines may find this type of biofuel ...
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The usage of land originally dedicated to agriculture has not only created food shortages, but also caused an increase in food prices. Furthermore, there
is not enough land capacity to satisfy the demand of the biofuel industry.
Biofuel is an ideal solution and the successes seen by aircraft manufacturers and airlines are small steps of progress towards full implementation.
However, given the limitations in land capacity, the debate of fuel versus food, the current technological developments, high prices and lack of
government support, this solution is neither economical nor sustainable.
3
Future of Alternative Fuels for Air Travel Introduction
Rise of Biofuels
With the airline industry committed to achieving carbon–neutral growth by 2020, the introduction of sustainably produced biofuels is a key strategy
for achieving this goal. It was a multi–year process that required collaboration between aircraft makers, engine manufacturers and oil companies, with
the first demonstration flight in 2008. In 2011 biofuels were approved for commercial flight use. Since that time there has been thousands of flights
fuelled with sustainable biofuels, here are a few milestones;
February 2008
First demonstration flight powered with biofuel, a Virgin AtlanticBoeing 747 with one engine powered with a 20% biofuel mix flew from London to
Amsterdam.
June 2011
First commercial flight powered with
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Jet Fuel Insurance Essay
Chapter 1: Introduction In the United States, biodiesel and biofuel production have increased dramatically in recent years due to environmental
issues from excessive petroleum usages. The world is now severely depended on oil for many purposes: powering cars, airplanes, farm vehicles,
irrigation pumps, etc. It also plays a significant role as raw material for making many products like chemical products, medicines, and fabrics. In
the USA, it is becoming more accessible to lessen the dependency on foreign oil. The second highest expense for airlines is the cost of jet fuel.
Any increase in oil prices effects huge amount on the airlines costs and maintenances. The global demand for aviation fuel is above 40 billion
gallons per year which influenced researchers to explore high quality but low cost feedstocks to produce aviation standard fuel (Oil Price.Com,
2011). Therefore, the key concern of commercial aviation is to find reliable fuel alternatives to cut costs, and reduce volatility of fuel supply and
carbon emissions. In recent years, usage of bio jet fuel has got considerable... Show more content on Helpwriting.net ...
Hence these components were added to the model to analyze the scenarios where growing camelina and carinata profits were compared with
insurable traditional crops. This model includes yield protection (YP) and revenue protection (RP) insurance program for crops which are already
insured in South Dakota; includes corn, soybean, wheat, sunflower, sorghum etc. Camelina is currently insurable in some parts of Montana and
North Dakota. Though written coverage is not available for Camelina; we used NAP coverage as feasible measure. While Carinata can be covered
under the canola policy as rapeseed type. Crop insurance premiums are calculated based on producer premiums paid at 65% coverage level. The 65%
coverage level was chosen based on highest actual production history (APH) insurance policy sold for each crops per
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United Airlines: A Very Brief History Of Flight
History of Flight Throughout 20th century, two pioneering aviators and inventors, Orville and Wilbur Wright, turned human's dream of flying into a
reality. Although they were not the first to build and fly an aircraft, the Wright brothers made, the world's first power–driven heavier–than–air machine
and aircraft that could be controlled while in the air. Before aircraft was invented, human tried to imitate bird's posture to fly across the sky by
building ornithopters, which was a designed to fly by flapping its wings. Therefore, Wright Brothers' invention shaped our culture and changed the
way we view our world . Wright Brothers developed their interest in flying after they read about the death of a German glider pioneer Otto Lilienthal...
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This merger gave an opportunity to United to cover its routes in the entire United States. In 1968, the holding company reorganized and renamed as
UAL Corporation. The reorganization led to United Airlines become a wholly own subsidiary. (5) On the other hand, another America's most widely
recognized airlines, Pan American Airways, also helped the development ofairline. Under the administration of Juan Trippe, founder of Pan American
Airways, they launched first regularly scheduled international flight by U.S. airline and first flying mail between Key West, Florida, and Havana, and
Cuba. At one time, their brandname was one of the most recognized in the world, second only to Coca–Cola. (6) After graduating from Yale in 1920,
Trippe used his father's inheritance to buy nine Curtiss JN–4 "Jenny", biplanes built by the Curtiss Aeroplane Company, for Long Island Airways;
However, this airline was unable to generate enough revenue and it failed. Then, Trippe with two wealthy friends from Yale organized another airline,
Colonial Air Transport, after the Air Mail Act of 1925. They won the first airmail contract between New York and Boston. Nonetheless, they failed
again because a dispute among stockholders soon resulted in the sale of the company and they were excluded from any decision and their airline.
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Air Canada
In Microeconomics, Air Transportation is a necessity to a country economy and growth. Many countries rely on Air Transportation because of its
benefits. Air Canada is the biggest airline also it was the first airline that was created in Canada. Many Canadians chooses Air Canada because of its
size and services. According to the future population, as the Technology expands, many people see air travel as a sign for the future. In today's
society, many people rely on Flight Transportation so it travels across the globe. Market Analysis in Air Canada focuses on the air tickets that firms
provide to consumers and the Air transportation that supports the firm, and the competitors that compete for the firm and how consumers react to the
price change of the firm. To begin, Air Canada was created on April 10th, 1936. Air Canada is one of national, full
–service airlines in Canada that has
the ability to travel worldwide. Before, the name of Air Canada was given to a Canadian company that was called TransCanada lines. The first
operational flight was from "Vancouver to Seattle"(about Air Canada).... Show more content on Helpwriting.net ...
It shows how the demand for a product increase or decreases in price set. In Microeconomics this theory is called as Price elasticity of demand.
Price elasticity of demand measures the change in quantity demanded or purchased of a product in relation to its price change
(investinganswers.web). This Economical tool shows the response of how consumers react to price change. There are two types of defining the
consumer attitude on Prices. If prices are high and demand is low, it means elastic. If prices increases and demand is still the same then it means
inelastic, because of no response or action on the price change. In Air Canada prices increase in seasons, such as summer, winter changes. Due to these
scenarios, Air Canada uses this opportunity to increase their budget. According to a report in lapresse
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Strategic Management Assignment
Faculty of Business and Law
Session: 2008/9
MBA: Strategic Management 1
Assignment
Introduction
Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of 'market
structure'. Economists' models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their
performance. A key question therefore is how far a firm's strategic decisions are shaped by the structure of the market in which it operates.
You are required to undertake a detailed examination of the changing nature of the long–haul transatlantic airline market. The market you are required
to investigate comprises only the international ... Show more content on Helpwriting.net ...
He lambasted British Airways and Virgin for "fleecing passengers for too long" as he and his brother
Hugh unveiled a route from London to New York for just ВЈ129 each way.
With two hot meals, designated seating and premium upgrades, it aimed to change long–haul air travel and make Scotland a powerhouse in global
aviation. A stock market flotation was mooted, valuing the airline at up to ВЈ100m, while its summer flight schedule was spectacularly upgraded,
offering 40% more seats across the Atlantic.
Not since the days of Sir Freddie Laker 's Skytrain in the late 1970s had the established transatlantic carriers faced such a threat. Back then, despite
huge support from the public and the Prime Minister, it took five years and an aggressive price dropping exercise for the competition to drive Laker
out. But while British Airways, Pan Am, TWA and Lufthansa were said to have met to plot Laker 's downfall, with Zoom they didn 't have to: a
soaring fuel bill did it for them.
As with other transatlantic carries such as MaxJet, Eos and Silverjet, Zoom 's problems lay primarily with the price of oil, which last year added more
than ВЈ27m to Zoom 's fuel bill.
A combination of soaring oil prices, poor sales and a weak economy has precipitated the worst crisis
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Corporate Social Responsibility Report
CORPORATE SOCIAL RESPONSIBILITY REPORT
Although corporate social responsibility has no universal definition, it is understood to be the way firms integrate social, environmental and economic
concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better
practices within the firm, create wealth and improve society. (Industry Canada, 2011) This report will represent the critical analysis of the current
Corporate Social Responsibility practices of Air Canada followed by recommendations for improvement.
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. ...
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Although it appears as if Air Canada is selflessly attempting to make the game of hockey a safer sport, one may question if they are capable of
making the rules of a professional sport which has nothing to do with their core business. Many companies, in an attempt to save face in the public's
eye, have exercised their power to make decisions regarding matters that they have no knowledge or expertise in. I believe Air Canada has an
underlying motive of attempting to increase profitability by appearing to society as an organization that does not tolerate or condone actions that are
frowned upon by society. Furthermore, Air Canada's headquarters are in Montreal which is the same location of the aforementioned incident and may
represent a conflict of interest.
Another pressing concern in the news headlines recently has been the unfair labour practice complaint filed by Air Canada against the Canadian Union
of Public Employees (CUPE) over the collective bargaining negotiations
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Case Analysis of Porter Airlines and Their Business Level...
Through Their Expansion Plans, How will Porter Airlines Effectively Utilize Their Low–Cost Business Level Strategy to Increase Their Customer
Base? Table of Contents Executive Summary...............................................................................p. 3 Porter
Airlines......................................................................................p. 4 The Expansion......................................................................................p. 4 What is
Organizational Strategy.................................................................p. 7 Porter Airlines Business Level Strategy........................................................p. 9
Core Competencies ......................................................................p. 9 Competitive Advantage..................................................................p.12 Low Cost
Business Level Strategy.....................................................p. 13 Low Cost Business– Level Structure..........................................................p. 15
Conclusion........................................................................................p. 17... Show more content on Helpwriting.net ...
In recent years, Porter opened a new $50 million 10–gate terminal, increasing take off slots from 167 to 202 (allowing for more flights during the day).
Within the last year, Porter Airlines has added service to Newfoundland and Charleston, South Carolina. The company is currently approaching the
completion of an underground tunnel, which will increase and improve traffic flow from the terminal to the main land compared to the original
transportation via ferry. It has long been assumed that in the recent years Porter has plateaued. Billy Bishop is restricted to 202 landing slots daily, and
the Q400s can't fly any farther than Porter already flies them. Due to this, in April 2013, Porter announced expansion plans to increase its customer
base. The plan stated that their goals would be accomplished through increasing the number of destinations, acquiring 30 Bombardier CS100 Jets, and
increasing the airport runway by 300 meters on each end. However their plan has been met with many challenges, because Porter's plans require
regulatory and facility changes to its Billy Bishop Toronto City Airport hub. Porter has asked for modifications to the operating agreement of the airport
to allow jets and extensions to the runway to support the new aircraft (Porter, 2015). Signed in 1983 by the federal and municipal governments and the
predecessor to the Port Authority, the tripartite agreement lays out regulations and restrictions intended to govern Billy
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The Financial Performance of Low-Cost and Full-Service...
The Financial Performance of Low–Cost and Full–Service Airlines in Times of Crisis
Triant Flouris, Thomas John Walker. Canadian Journal of Administrative Sciences. Halifax: Mar 2005. Vol. 22, Iss. 1; pg. 3, 18 pgs
Abstract
This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001,
terrorist attacks. September 11 (9/11) resulted in dramatic changes in theairline industry and had significant implications for the economic gains and
future prospects of most airlines. Our study focuses on the stock market's perception of the viability of low–cost versus full–service business models in
the aftermath of 9/11. We choose Southwest Airlines as a typical... Show more content on Helpwriting.net ...
Lawton (2003) advances the argument that low–cost carriers (LCCs) were in a position to go on the offensive and aggressively exploit the changed
industry climate after 9/11 by renegotiating labour contracts, by negotiating lower prices for new airplanes in what had suddenly become a buyer's
market for new aircraft, and by pursuing aggressive pricing strategies to increase their market share relative to legacy carriers. Legacy carriers, being
exposed to a significantly higher overhead burden, were forced into defensive strategies that provided them with little operational flexibility. These
developments are difficult to observe in the airlines' accounting figures in the short term, but if they are perceived to change a firm's future cash flows
they should be reflected in the market's valuation of the firm's stock.
When investigating the impact that the events of 9/11 had on each airline's risk, we consider both the systematic and unsystematic volatility of the
stocks' returns. This allows us to differentiate between risk factors that affected the market as a whole and risk factors that affected the firms specifically.
Although we employ only a small sample, our results are highly consistent.2 We observe that Southwest performed significantly better after 9/11 than
its mainstream competitors
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Aviation Provides The Sole Worldwide Transportation...
Aviation provides the sole worldwide transportation network that makes it essential for international business and tourism. It plays a significant role in
facilitating economic growth, notably in developing countries. Flying transports close to two billion travelers per annum and four–hundredth of
interregional fares of merchandise (by worth), four–hundredth of international tourists currently travel by air. The air transportation industry generates
a total of twenty nine million jobs globally (through direct, indirect, induced and catalytic impacts). Aviation's international economic impact (direct,
indirect, induced and catalytic) is calculable at US$ 2,960 billion, comparable to 8 may 1945 of world Gross Domestic Product (GDP)
Aviation boasts high occupancy rates of sixty five to seventieth – that is more than double those of road and rail transportation. Air transportation
entirely covers its infrastructure prices. In contrast to road and rail, it is a net contributor to national treasuries through taxation. Modern craft achieve
fuel efficiencies of three.5 liters per one hundred passenger–km or sixty seven passenger–miles per US gallon. The next generation craft (A380 &
B787) are targeting a potency of less than three liters per one hundred passenger–km or seventy eight passenger–miles per US gallon5, which exceeds
the efficiency of any modern automobile on the market.
The air transportation industry includes those activities that are directly captivated with
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Essay on Airline Industry Strategic Management Assignment
MBA: Strategic Management
Assignment
Introduction
Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of 'market
structure'. Economists' models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their
performance. A key question therefore is how far a firm's strategic decisions are shaped by the structure of the market in which it operates.
You are required to undertake a detailed examination of the changing nature of the long–haul transatlantic airline market. The market you are required
to investigate comprises only the international passenger market (i.e. excluding the movement of goods by ... Show more content on Helpwriting.net ...
Draw upon market data which is available, to support your conclusions on "Market Structure" with in this industry sector. (30% of marks)
3.Given the conclusions drawn on Market Structure above, examine the level of competition within this market sector with the use of Porters 5 forces
model to reinforce your explanation. (20 % of marks)
4.Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive
advantage and long term survival? (25% of marks)
Procedure
1. This is an individual project, leading to the production of an individual report.
2. All the data and information you need to complete this assignment is in the public domain and is easily accessible via electronic means. Please do
not approach the companies for help with this project.
3. Your project should be presented in report format and should contain an Executive Summary and a Bibliography. Use of Appendices would be
appropriate.
4. Your report should be a maximum of 4000 words (excluding Appendices and Bibliography).
5. Submit your report to the Graduate School Office no later than 12th of January.
6. The assessed report will be returned to you within 3 weeks. Your grade will be subject to ratification by the External Examiner and the
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Hrm in Aviation
International Applied Business Research Conference
Acapulco, Mexico 2003
Human Resource Management In The Global Civil Aviation Industry: A Survey And Analysis Of Recruitment And Selection, Organization
Development, And Education, Training And Development Practices
Dr. Steven H. Appelbaum, Concordia University, Canada Brenda M. Fewster, Concordia University, Canada
Abstract The civil aviation is an extremely competitive, safety–sensitive, high technology service industry. People, employees and customers, not
products and machines per se, must be the arena of an organization's core competence. The implications are vast and pervasive affecting no less than
the organization's structure, strategy, culture, and numerous operational ... Show more content on Helpwriting.net ...
The primary focus of HRM strategy is the manner in which the HR department aligns general activities, policies and procedures with the opportunity
imperatives of the organization. Such relevant HRM expertise constitutes nothing less than a powerful strategic opportunity. Methodology The original
purpose of the audit's companion review of the literature was to find other empirical studies of the airline industry regarding HRM practices, from an
applied perspective, with which to compare and contrast the results of the audit presented later in this article. None were found. This is consistent with
the findings of other researchers. M. L. Thomas (1997), author of the book, A PortfolioManagement Approach to Strategic Airline Planning, comments
on the scarcity of research in the area of airline management. "In reviewing the literature on international aviation, it is clear that researchers tend to
analyze the industry at a macro–level. Although it has gained much attention recently . . . the topic of international commercial airline management
suffers from a lack of theoretical and empirical work, and the scarcity of literature from a microeconomic perspective." According to J. Eaton (2001),
author of the book, Globalization and Human Resource in the Airline Industry, research is particularly difficult because "Airline managers are even
more secretive and defensive about academic research than
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Air Canada Case
The overall problem in this case is how Air Canada will handle quadrant one risk, and how much of these risks will they hedge. Volatility in this
industry, such as changes in fuel prices, have been eating at Air Canada's profits. They currently purchase fuel futures for thirty four percent of needed
fuel. Air Canada is also hedging on interest rates, exchange rates and personal stock price fluctuations. It seems like their business model is not
flexible or adequate if they need to insure and hedge almost every single risk they encounter. This decision mainly focuses on how this airline should
handle risks and to critique their current strategy in terms of effectiveness. The main player in this problem is Air Canada, who recently merged with...
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Of course turning a profit and cutting costs are still important to the airline. Adjusting the risk level, of the main four risks, is most important to the fact
that it is diminishing their profitability. Many risk elements exist within Air Canada environment. They mention many risks, like catastrophic ones, but
these are insured against. Other risks they insure are ones that do not occur often, but have heavy penalties. The operational risk that Air Canada
accepts are the ones that happen often, but have a low impact compared to catastrophic ones. The risks that concern the airline the most are the
quadrant one high frequency, high severity risks. These risks include fluctuations in fuel price, interest, exchange rates and stock price. Information I
would like to know is how the smaller, low–cost airlines handle this type of risk. Small airlines seem mostly unaffected by this price volatility, and
continue to grow organically. It is possible that these large airlines are too complex in structure and cannot freely move with the environment and thus
resort to consolidation to make up for it. I would also like to know if Air Canada can move its expenses into its own territory instead of losing money
on the exchange rate in the United
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Westjet Is A Canadian Based Airline
WestJet Airlines is a Canadian based airline that offers low–cost airfares coupled with excellent customer service. The founders of WestJet Clive
Beddoe, Don Bell, Mark Hill, and Tim Morgan successfully established its original headquarters in Calgary, Canada in 1996. Through researchingother
successful airlines throughout North America, the founders were highly inspired by the low–cost carriers of Southwest Airlines. As a result, the founders
contacted David Neeleman, president of Morris Air, which later become apart of Southwest Airlines for help in developing a business plan forWestJet.
WestJet had created a high corporate culture that offers low–cost, low–fare, short–haul, anda point–to–point airline that served Western Canada. Slowly
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Those statistics are almost unheard of for a company that just started five years ago.
Truth is, there will never be a perfect company. With great success, there's always turbulence along the way, WestJet is far from the perfect company.
WestJet's main concern is expanding and if they don't expand, it will give other airlines a chance to enter the market that could hurt the carrier's
low–cost, low–fare, short–haul, point–to–point services of Western Canada. Additionally, the expansion project will make it difficult to keep WestJet's
famous culture alive as the company grows on a global scale. Remember, WestJet's strong and outstanding culture was the root of the growing company.
WestJet emphasis on the commitment to maintaining the culture, stating "a vibrant corporate culture was so central to WestJet's success that
preserving it was Bell's and Beddoe's main obsession".
It is a problem because if they don't end up expanding outside of Western Canada, new airlines could enter the market and meet the demands of Eastern
Canada since WestJet is content with serving Western Canada. Other airlines noticed the success of WestJet and were attempting to mimic WestJet and
its strong culture to serve more than just Western Canada.
WestJet follows theory Y as their management style, by following this management style they have been able to carry on their operations both
effectively and
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Air Transat analysis
Air Transat
Introduction:
Air Transat is a Canadian airline based in Montreal, Quebec. It was founded in 1987, and is owned by Transat A.T. Inc. According to Air Transat's
website, their mission statement is:
"Air Transat is Canada's leading holiday travel airline. Every year, it carries some 3 million passengers to nearly 60 destinations in 25 countries aboard
its fleet of Airbus wide–body jets. The company employs approximately 2,000 people. Air Transat is a business unit of Transat A.T. Inc., an integrated
international tour operator with more than 60 destination countries and that distributes products in over 50 countries. Air Transat was named World's
Best Leisure Airline at the Skytrax annual World Airline Awards, held in... Show more content on Helpwriting.net ...
New European union regulations have led to higher levels of competition on European routes.
Increase in the price of oil
Increase in transportation costs
Increase in disposable income due to rise in incomes and lower interest rates (people have more money to spend on leisure trips)
Change in consumer behavior resulting from the aging population in Canada may affect the number of leisure trips taken
Increased popularity in travelling abroad
– Carbon dioxide emission
– Emirates airlines launching double decker aircrafts (A380), serving 25 destinations
– Wireless internet being launched in aircrafts
– Frequent flyer programs
The increase in the price of oil and the rate at which it is increasing is a global issue. For Air Transat, this means an increase in cost and expenditure.
Since oil is essential in this industry, there is not much that Air Transat can do. The increase in the price of oil could cause force Air Transat to
increase their prices
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Qantas Case Study Essay
Strategic Analysis – Qantas Case study
Introduction
Qantas Airways Limited was found in Queensland in Australia back in 1920. Both domestically and globally Qantas airline has grown to be the largest
flight destination as well as the oldest in all Australia. In the airline industry, Qantas puts more effort to lead the industry. The company guarantees the
safety of the clients. Additionally, the company is well known for its sufficient operations that are meant to provide quality customer service. Theairline
created Qantas and Jetstar, two strong brand reputations. Jetstar is concerned about differentiation, low prices, and cost advantage. Additionally, Jetstar
is a subsidiary of Qantas. It is a private airline business independent from the ... Show more content on Helpwriting.net ...
This will help receive the clients' satisfaction.
Human Resource Qantas should put more focus on the human resource. There is the need to provide enough coaching to its personnel to ensure the
client's fulfillment. The brand recognition is equally crucial. Qantas Airline needs to provide the sustainable level of safety and security to avoid
damage to the reputation of the brand and the company as a whole. It should invest highly to bring in the best ideology to conserve the company's
objective. Providing the best security and well being can build the brand recognition.
Conclusion
The company has both full service and premium brands. They create their brand reputation globally by providing exceptional products and services to
customers. Safety and advanced technology is one of the services the company stresses on and followed by human resources and environmentally
friendly services. Additionally, domestic and international competition threatens the company that can weaken Qantas band recognition. Through
fewer accidents and sufficient services, competitors can grab the market share and develop brand loyalty. Therefore, for Qantas to remain competitive
in the industry there should be sustainable and qualitative
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Air Canada Marketing Mix Essay
The textbook defines a marketing mix as the controllable set of activities, which are product, price, place and promotion that a company uses to
respond to the wants of its target market. (textbook pg 7) These activities can be influenced by decision makers to better position their product in the
market. Air Canada uses their marketing mix strategy to increase its competitive advantage by protecting its brand, and meeting its strategic objectives.
Product/service The fundamental purpose of marketing is to create value by developing a variety of product and service offerings to satisfy customer's
needs. (textbook 7) Air Canada offers a variety of services in creating value for its customers. The service offered by Air Canada is air transportation...
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Their pricing is dependent on various aspects as follows; how far in advance the customers book their tickets, the time of the year, which seat class
they would like to fly or whether they have a luggage to check in or not (textbook 8). Air Canada also has a price guarantee insuring their customers
pay the lowest price the region. They have a running statement stating, "No need to search for lower Air Canada prices elsewhere – you won't find
them. If, within 24 hours of completing a ticket purchase on aircanada.com or aircanada.com/agents, you find a lower–priced ticket elsewhere, we'll
offer you a promotion code valued at $50, plus the price difference, for each passenger on your booking" (5). Over the years Air Canada has created
a brand image that focuses on their ticket pricing being the lowest in the market to accommodate their customers travel needs. With this price
guarantee, Air Canada's customers can reliably book their travel needs knowing they have received the best price available. This marketing tactic
provides customer satisfaction regarding pricing and in turn allows Air Canada to attracts customers to travel with them. The price factor in a
marketing mix doesn't always refer to a monetary value; this can also involve anything the consumer gives up for example time and energy in
exchange for the product or service (textbook 8). Given that Air Canada has a price guarantee their customers can save time and effort without looking
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U.s. Airlines ' Open Skies ' Program And Continuation Of...
CHAPTER I
INTRODUCTION
Background of the Problem
With the introduction of the 'Open Skies' program and the continuation of
globalization, U.S. airlines are facing stiffer competition. As the possibility of cabotage
looms in the future, American passengers may have more opportunities to fly foreign
carriers both at home and abroad. 'Open Skies' operations have commenced on
transatlantic and intra–EU routes, meaning that choice of carrier has expanded for U.S.
air travelers abroad. EU authorities challenenged US authorities for the right to operate
EU carriers within the U.S. domestic market, as well as the right to own larger shares of
American carriers, by 2010. As of this writing, the U.S. has not recipricated these air ... Show more content on Helpwriting.net ...
He holds his Commercial,
Multi–Engine, and Instrument flight ratings. He is currently employed as a program
manager in the Space Based Infrared Systems Directorate at Los Angeles Air Force Base.
Statement of the Problem
As of 4 May 2012, the United States has entered into Open Skies agreements with
105 countries (Open Skies Partners, 2012). United States–based airlines now have more
competition than in the past and need a strategic plan to remain competitive. As a part of
this plan, the airlines will need to possess an understanding of how consumer perceptions
of safety, service, and cost will affect the amount of cross flow of passengers from U.S.
airlines to foreign carriers in a domestic Open Sky market, as well as foreign markets.
Understanding which factors affect the customer's decision the most, and how U.S.
customers view foreign airlines, will be critical in understanding the shift in demand
resulting from increased foreign ownership and foreign airline access.
Significance of the Problem
If U.S. airlines do not understand the perceptions of foreign and foreign owned
airlines, they stand to lose market share and revenue in an Open Sky market. The
International Trade Administration and the State Department claim that the estimated
current economic value of the US–EU open skies agreement is worth $12 billion annually
to the airline industry and related industries. However, the increased
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Case Study: Egyptair
Projections:
1– Risks:
– Political stability: Egyptair continues to make massive losses as the carrier and Egypt struggle to recover from the Jan–2011 revolution which
resulted in the airline moving into crisis mode for two months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue
evaporated. The instability of the political situation which we could say its improving gradually this year had been one of the major risks that's facing
Egyptair.
– Reduced demand and Customer inability to pay: Average ticket prices have jumped 10 percent in the last several years, potentially turning off
consumers that can reach their destination in other ways and specially After the global downturns and the hard financial times customers ability to pay
for tickets for certain destinations that are tend to be expensive had declined. So the company had to compensate these loss by offering promotions and
discounts over tickets to ... Show more content on Helpwriting.net ...
The budget is a reflection of the goals and strategies we have for each area of our business. The figures we budget for sales and expenses will help us
to chart the financial performance and compare the business's actual performance against our goals. Egyptair is using the Top down budgeting strategy
throughout its annual planning. Our strategies will include an increase in marketing expenses, payroll to produce our service professionally
competitive in the global market and capital equipment purchases. Though we will guarantee through determining our budget plan the marketing
expenses should be planned wisely for the benefit of the Airlines development but still compatible with our current situation of loss of profits and
revenues that we are currently and recently facing these past years. Developing a budget will help us to plan for the costs of implementing these
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Qantas Of The Largest Airline Companies Of Australia
This report is on Qantas which is one of the largest airline companies of Australia. It is operating in more than48countries of the world. Qantas is
admired by people for its safety, low fare, good and friendly crew. Qantas is providing quality service to its customers. Qantas is facing a few problems
mainly due to its high cost and strong competition in the international market. The management of Qantas needs to work according to the international
standards to cope up with the present day customer needs and requirements.
Mostly the employees of Qantas are satisfied with its working environment, salary and other benefits. However, they need to develop their career.
The services provided by Qantas to its passengers are good. The food, drinks, seating system, safety measures is highly admired by the people and
they also appreciate to have a comfortable and safe journey at cheap price.
Qantas is having a strong competition with other airlines especially Virgin which is also one of the airlines of Australia. They were having a dispute
over some petty matters but now they have resolved their arguments. The government now is also offering their support to Qantas so that it can
improve its profitability.
1 Introduction of Qantas:
Qantas was founded in 1920 by Hudson fysh and McGinness in Queensland. Qantas is one of the best airlines in Australia which is providing both
international and domestic services to the people. Because of its safety, perfect management, maintenance and
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The Pros And Cons Of Air Traffic Control
Since the very beginning of air travel, the Federal Aviation Administration's National Air Traffic Control (ATC) system has kept passengers safe and
moved people and goods with unmatched efficiency, and it has continually evolved to meet the needs of the aviation industry. However, many have
sought to hand over control of the ATC system to a private entity, separate from the FAA, dominated by the airlines, and unaccountable to the public.
The latest of these effort comes in the form of a renewed push endorsed by President Donald Trump, in a misguided attempt to "Make Air Travel
Great Again." What would come with private ATC would be just the opposite: rising costs passed on toairline passengers and general aviation
operations, and funds shifted from local general aviation (GA) airports to the nation's hub airports, and unfair access to the nation's skies favoring the
airlines and leaving GA behind. Since the invention of flight, the sky over America have been free for anyone to use, but this may no longer be the
case. The costs to the aviation industry will be staggering. Pilots, controllers, and other aviation professionals have not accepted a private ATC system
in the past and must resist it again for the love of flying.
Privatization of government services and agencies has long been a proposed solution to rising costs, delayed updates, and inconsistent budgets that
federal agencies currently have to deal with. Air Traffic Control is no exception. Rep. Bill Shuster
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Air Cargo Portal Services Brings
Question 1
Information systems have become a major part of the almost all industries including the air cargo industry. Information systems have helped the air
cargo industry remain competitive, provide customers and other with an efficient and easy to use service, and has kept the industry up to date. In
2003, Cargo Patrol Services (CPS) opened for business as the air cargo industry's first full–service Internet portal that provided the industry with an
electronic booking and shipment management system. Without this new system, the air cargo industry would have suffered, especially after the
September 11th terrorist attacks when investments in airline declined.
The purpose of the new information system was to implement a process that ... Show more content on Helpwriting.net ...
Also, they needed to see if the new system is compatible and integrated well with their legacy system.
Question 4
The level of project risk is influenced by project size, project structure, and the level of technical expertise of the information systems staff and project
team.
Technology level is low. The Unisys aircargo system was already used by two of the three carriers (Air Canada, United, and Northwest), and Unisys
also had the advantage of Web development and integration expertise gained from other projects. Unisys also decided on an object–oriented approach
to reuse existing modules from its other projects: key technologies such as a weblogic server and a multitier architecture using J2EE.
Project structure is medium–low. Unisys need to create a system that would work with the various legacy systems and the differing procedures used
by airlines. The site had to satisfy the requirements of the three launch carriers and also make it easy for other carriers to adopt after the portal went live.
Project size is large. The original broad design had to be broken down into detailed specifications, which took three months and required the three
carriers to set aside all of their competitive issues and differences.
StructureTechnology LevelSizeRisk
Medium–lowLowLargeMedium
Question 5
Air Canada did the right thing by going forward with his project. There was a lot of work involved since they met once a week and
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History of British Airways
Company History:
British Airways PLC is the largest international airline in the world. It is based at Heathrow Airport in London, the busiest international airport in the
world, and has a global flight network through such partners as USAir in the United States, Qantas in Australia, and TAT European Airlines in France.
Via its own operations and those of its alliance partners, British Airways serves 95 million passengers a year using 441 airports in 86 countries and
more than 1,000 planes.
British Airways ' earliest predecessor was Aircraft Transport & Travel, Ltd., founded in 1916. On August 25, 1919 this company inaugurated the
world 's first scheduled international air service, with a converted de Havilland 4A day bomber leaving ... Show more content on Helpwriting.net ...
Britain 's primary supplier of flying boats, the Short Company, developed a new model, designated the C–class, with 24 seats and weighing 18 tons.
Since it had an increased range and flew 145 miles per hour, it was able to simply bypass "politically difficult areas." The Short C–class went into
service in October 1936. A year later Imperial Airways made its first trans–Atlantic crossing with a flying boat equipped with extra fuel tanks.
However, it was Pan Am, with more sophisticated and updated Boeing airplanes, which was first to schedule a regular trans–Atlantic service.
Imperial Airways was formed with the intention of being Britain 's "chosen instrument" for overseas air service. On its European services, however,
Imperial was competing with the British Continental airlines and an aggressive newcomer called British Airways. British Airways was created in
October 1935 by the merger of three smaller airline companies. Three months later the company acquired a fleet of Lockheed 10 Electras which were
the fastest airplanes yet available. The competition from British Airways threatened the "chosen instrument" so much that in November 1937 a
Parliamentary committee proposed the nationalization and merger of Imperial and British Airways. When the reorganization was completed on
November 24, 1939, the British Overseas Airways Corporation (BOAC) was formed.
The creation of BOAC was overshadowed
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British Airways Business Environment Essay
British Airways also known as BA is United Kingdom based airline. Based on fleet size, British airline is the largest airline of the United Kingdom. It
is the second largest airline measured by passengers carried. In 1972, British Airways board was established by the government of United Kingdom for
managing two nationalised airline corporations British European airways and British Overseas Airways Corporation along with two regional smaller
airlines Northeast Airlines from Newcastle upon Tyne and Cambrian Airways from Cardiff. All four companies were merged in 1974 to formBritish
Airways. In 1987, British Airways was privatised after being the state company for almost 13 years. With the acquisition of British Caledonian in 1987,
Dan–Air ... Show more content on Helpwriting.net ...
The external business environment includes a number of factors that are outside the company and that are beyond the control of the organisation. For
the success of the organisation, effectively managing the internal strengths and operations of the business and identifying the potential threats and
opportunities which exists in the external environment are the key factors. In the current business environment, it is important for the British Airways,
as it is conducting its operations both on the national and international level to focus on its internal and external factors (Armstrong & Kotler, 2005).
These internal and external factors possess direct and indirect impact on the profitability and business activities of British Airways. Therefore, for the
effective management of British Airways, different analytical tools such as SWOT, PESTLE, Porter's five forces and Ansoff Matrix are used to analyse
the factors that is affecting the company's operations. For British Airways, analytical tools such as PESTLE, Porter's five forces and Ansoff Matrix can
be used to analyse the external environment, to help formulate the company such strategies that can facilitate the company in generation of increased
profit both on the national and international level and that can help the company in gaining competitive edge in the market (Baines, et al.,
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Low Cost Airlines Strategy
| Airlines Low Cost Industry| | | | |
|
Situation
It's a chilly winter evening in Bangalore and Vijay Mallya looks out of the window with a Kingfisher Beer pint in his hand. He looks out at the reddish
horizon and contemplates the future of his airlines – The Kingfisher Airlines. He has recently bought the first low cost carrier in India, Air Deccan.
With the sale of Air Deccan, the industry has seen a correction of sorts, in terms of the cost of travel. With increasing oil rates and the turmoil that the
airlines' industry is currently in, Mallya needs to come up with a strategy to make best of the low cost carrier. He also needs to ... Show more content on
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Kingfisher airlines ranks second with 20% market share. NACIL (National Aviation Company Limited) which, was formed in 2007 with the merger of
two national carriers Air India and Indian Airlines, captures 18.3% share.
The airline with the largest fleet in the domestic market is Air India, but its market share of the number of passengers is low, and therefore results
in a low fleet hare to passenger share ratio of 0.62. Kingfisher leads the full service carrier segment with a fleet to market share ratio of 0.95, but this
also includes figures from their low cost Kingfisher Red service. Passenger market share leader Jet Airways is at 0.82 and this includes their low fare
service Jet Konnect.
For a better comparison between Jet and Kingfisher, if we add–up the numbers of Jet's other low fare subsidiary JetLite, the total group ratio of Jet at
0.865 still remains well behind Kingfisher's 0.95, suggesting a far more aggressive fleet utilisation strategy by Kingfisher.
Expectedly, the low fare carrier side shows much higher ratios, due to their higher usage of aircraft and also the higher number of seats offered per
flight due to an all–economy configuration. The laggard is JetLite with a ratio of 1 while SpiceJet and IndiGo are neck and neck at 1.75 and
1.76.However, GoAir, has an industry leading, fleet to passenger share ratio of 2.04. Clearly the airline has shaken off the demons of
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Essay about Comapring Porters 5 Forces for the Airline...
Assignment # 1
Strategic Practice Exercise: (page #81)
1. Score each competitive force in the airline industry and provide a brief rationale for your assessment.
В·Rivalry Among Existing Firms: (High)
When one major company in an industry makes a change in costs or services that could potentially increase their clientele, a major competitor almost
always follows suit. Price matching is a prime example of that, therefore the threat is high. West Jet is one company that offers flights at a discount and
forced Air Canada to create new banners to compete with the discounted prices. All major companies and firms in an industry watch each other's every
move very carefully, and match any move with a countermove. During slow season in the airline ... Show more content on Helpwriting.net ...
Therefore, the threat of substitution is a significant factor in the airline industry. However, if a customer has to travel very quickly or a significant
distance, that person would most likely choose the flight option instead of a cheaper alternative.
В·Bargaining Power of Buyers/Distributors: (Medium)
Bargaining power is a tricky one because it can work both ways. Buyers have a certain level of power in any industry. A buyer may switch
suppliers very easily if there are no penalties and it is cost effective for them. If a large firm makes a large purchase of goods from another firm, it
may be mutually beneficial and if serviced well, have the potential for repeat business. However, the buyer then has the power to use a substitute or
competitor which would negatively affect the seller. Buyers are always the more powerful of the two because some buyers have the ability to put
pressure on lower costs from suppliers, while demanding an increase of the quality of products or services provided to them. Also, the bargaining
power in industries with high fixed costs like the airline industry can play a big factor. On the other hand, things like jet engines, tires and other key
safety devices on aircrafts can cause severe consequences if this equipment malfunctions. For that reason, the buyer has a reduced amount of bargaining
power with suppliers in this industry. The bargaining power of buyers is both high and low, so I ranked it medium.
В·Bargaining
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The Growth And Success Of Canadian Airline Westjet Essay
Roger Solis MNGT 370 Dr. Dilek Yunlu WestJet Case Analysis Introduction This article discusses the growth and success of Canadian airline WestJet.
The company was established in 1994 by Clive Beddoes who stumbled upon an opportunity to collaborate with fellow businessmen: Tim Morgan, Don
Bell, and Mark Hill to create a cost–effective and very profitable airline in western Canada. Together they achieved a concept of an airline that would
be low–fare but rich in culture to maintain its integrity. With the help of David Needleman, president of Morris Air, the team developed a business plan
and visualized what is now WestJet Airlines. They built an integrative, financial model and business plan which included only three aircraft and
features of being: direct, cost–effective, and short–haul. Within 30 days of constructing a business plan the needed capital was raised and the
foundation for WestJet airlines kicked off. In 1995 WestJet was established and began rapidly integrating into eastern Canada. Problem WestJet's quick
success posed an issue because even though it was centered on culture eventually its concept would fail; the airline was growing very quickly and that
could only mean that it would be difficult to maintain the intimate focus while staying extremely profitable. Critical Analysis In 1999 many changes
occurred within the Canadian market of aviation. There was merging between successful and struggling airlines, and even airlines that failed relatively
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Canadian Tour Industry Case Analysis
VOYAGES SOLEIL: THE HEDGING DECISION Industry and Situation Analysis According to the case, the Canadian tour operating industry had
been flourishing between 1988 and September 11, 2001. The Canadian economy growth rate also was increasingly as this industry that was very
positively correlated with the overall economy. On September 11, 2001, there was the terrorist attack the Twin Towers of the World Trade Center in
New York City. As a result, both buildings collapsed within two hours, destroying nearby buildings and damaging others, also killing everyone on board
and many others working in the buildings. After this event, the economy in the United States and the overall countries slowed down. Specifically, the
total number of trips... Show more content on Helpwriting.net ...
| Present:April 1, 2002(Actual St = USD 0.6252 / CAD)| Payable Due:October 1, 2002(Forward St+1 = USD 0.6271 / CAD) | | USD 60 Million в†’
CAD 95,969,290| USD 60 Million в†’ CAD 95,678,520| | Profit/Loss: 95,969,290– 95,678,520Profit: CAD 290,770| | Rate of Return:
290,77095,969,290 = 0.30% | | | Alternative 3: Arbitrage| Practicing CIA (Covered Interest Arbitrage) by borrowing CAD 96 Million to buy USD on
April 1, 2002, and invest the USD for six months. At CAD interest rates of 2.70% for borrowing and 2.55% for depositing, and USD interest rates of
1.85% for borrowing and 1.65% for depositing.| Present:April 1, 2002 (Actual St = USD 0.6252 / CAD)| Payable Due:October 1, 2002(Forward St+1
= USD 0.6271 / CAD) | | Present Transactions| Payable Due Transactions| Borrow CAD 96 Million @ 2.70% p.a. Buy USD @ CAD 1.5995 / USD
CAD 96 Million в†’ USD 60,018,756 Deposit USD 60,018,756 @ 1.65% p.a. Arranging six–month Forward Contracts @ USD 0.6271 / CAD| Earn
interest return from USD deposits: = 60,018,756 Г— 0.01652 = 495,155 Withdraw all USD deposits with interest: = 60,018,756 + 495,155 = 60,513,911
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Marketing Strategy Of Bombardier As A Canadian Based...
Introduction
Bombardier is a Canadian based public company operating in the sector of manufacturing planes and train in several countries. It was founded by
Joseph –Armand Bombardier in 1942. They key people involved in the management are Pierre Beaudoin, Alain Bellemare and Lutz Bertling who
are working as Chairman, CEO and COO of the company respectively. Over the years, this company has utilized its resources very well and followed
a fantastic strategy of expansion. Most of the expansion was made using inorganic strategy of expansion by acquiring various companies already
running in the industry which help Bombardier in quick rapid growth. This is quite clear as it has moved well in the value system from making of
snowmobiles to planes ... Show more content on Helpwriting.net ...
In an effort to achieve this, Bombardier Capital (BC) was formed in 1973 with a focus to provide services of loan, asset management and leasing
throughout the Americas. In 2004, BC saw a major setback as Moody's credit evaluation section downgrades BC ranking to questionable credit quality
from moderate credit risk. At this time, Bombardier decided to get rid of Bombardier Capital and sold this to GE Commercial Finance. Though, such
downgrade has not affected its train and plane business sections. Since then, Bombardier's main focus is on plane and train segment and it is
performing very well.
International Marketing Mix
Marketing is a way to achieve the best results using the right product in the right place using the accurate price at the correct time. A related concept
of marketing is marketing mix. Marketing mix is a term which was first introduced by Neil Borden in order to promote and sell a product in the
market. Later, it was refined by the Jerome McCarthy in the form of 4Ps. Since then, this 4Ps are the best tools to make a strategy to market and
promote a product not just in the local market but in the international market as well. It is recognized as the most valuable model to use the strength of
the company to exploit the opportunities in the market. Marketing mix model unfolds many hidden strategies which are impossible to identify. By
identifying the hidden areas, Bombardier can make a strategy for each
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Swot Analysis Of Westjet Airlines
Situation Analysis
Introduction
WestJet Airlines is a Canadian airline that differentiates itself with their low cost flights and exceptional customer service. The company's philosophy
is "just because you pay less for a flight, doesn't mean you should get less." WestJet has been growing rapidly since 1996, however, they believe in
growing responsibly by being cautious of their environmental and community impact ("About us", n.d.). As WestJet has a strong presence locally, our
analysis will mainly focus on WestJet's domestic segment.
Category/Competitors The Canadian airline industry has been steadily growing with a compound annual growth rate of 4.9% from 2012–2016. Within
the industry, the domestic segment makes up 60.2% of the ... Show more content on Helpwriting.net ...
The large difference of ASMs is largely attributed to the fact thatAir Canada focuses on both domestic and international flights while WestJet mainly
focuses on domestic flights. This means while Air Canada may fly more kilometers than WestJet, the two companies are not so far off from each other
when it comes to gaining customers (Statistics Canada, 2016). WestJet's differentiating point is their price–competitive nature. As a low–cost carrier the
company values offering guests the same experience they may receive at higher–priced airlines. Air Canada has, however, also began operating a
low–cost segment back in 2013 called Air Canada Rouge. WestJet is now looking to launch an ultra–low cost segment, "WestJet Swoop" in June 2018,
targeting guests who are mainly concerned about getting from one location to another and less concerned about flexibility and convenience (Dormer,
2017).
Customers WestJet's low–cost pricing advantage mainly attracts price–sensitive consumers within the middle to upper–middle class. These are
individuals who can't afford the more luxurious flights and/or those who are just looking for a cheap but comfortable ride to their next destination.
Travelers can conveniently purchase airfare through WestJet's website directly, through global travel websites (i.e. Expedia, Trivago), or through travel
agencies. Within the airline industry, the main concern of consumers is the price as many airlines already offer similar features
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Qantas strategies Analysis
Criterion
Maximum Mark
Your mark
Research and analysis of company information
5.0
4.0
Considerations of constraints impacting organisational strategy
5.0
3.75
Application of relevant theories of strategy
5.0
3.75
Development of argument and applied critical thought
5.0
4.0
Written communication & referencing
5.0
3.25
Total marks
/25
18.75
EXECUTIVE SUMMARY
The report has discussesd and appliesd theoretical concepts and principles of strategic management into analyzing the environment context where to
Qantas Airways Limited operates.
It shows that, Qantas has a long history and sustainable development but needs to evolve in the global world. ization context, the company has to
continue ... Show more content on Helpwriting.net ...
пѓј
In 2012, Qantas carries a 44.6% shares of the Australian domestic market and 18% of all passengers travelling in and out of Australia while the
respective market segments for Jetstar are 20,7% and 8%. The chart below compares the top 10 international airlines.
Figure 1: Top 10 international airlines in Australia
(Source: ANNA– Airlines Network News and Analysis, 2010) пѓј
2.2. Resources and capabilities
– Tangible resources: Establisheding in 1920, Qantas Group has grown gradually and remain one of the largest and strongest in Australian airways
industry. During the last 5 recently years, Qantas has steadily expanded its operations by increasing number of aircrafts, passengers, employees and
destinations all over the world. Its development can be demonstrated as data below:
Figure 2: Qantas's resources from 2008–2012 пѓј (Adopted from Qantas data book 2012, see Appendix)
Qantas's total asset increased from $19.7 billion in 2008 to $21.1 billion in 2012. More than half of its assets are from property, plant and equipment
which book value at $14.13m at the end of FY2012. Intangible assets values at $610,000. пѓј
At the end of FY2012, the corporation had a cash balance of $3.4 billion, and 308 aircrafts from three main suppliers Airbus, Boeing and Bombardiers.
The Group has 12 Airbus A380, 30 Airbus A330, 60 Boeing B737, 36 Boeing B747 and 46 Bombardiers. пѓј
– Intangible resources:
Qantas has a strong reputation for long history
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Bombardier Porter's Five Forces
The changing conditions in the environment can often affect an industry's competitive structure. This means the broader economic, global,
technological, demographic, social, and political contexts in which the company operates, can have both direct and indirect impacts on Bombardier
(refer to Appendix 2 for PEST analysis). By altering the significant constraints on the decisions of management, the environment poses many threats, as
well as opportunities (refer to Appendix 3 for the SWOT analysis).
As a manufacturer of transportation equipment, Bombardier is well positioned in the aerospace and transportation segments to capture long–term
market opportunities in Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services (Bombardier Inc., 2014). These
opportunities are expected to continue to rise due to accelerating urbanization and the rising need for mobility (United Nations, 2014). Furthermore, the
state of the world economy and those of individual countries are key factors in the demand of air travel. ... Show more content on Helpwriting.net ...
This uncertainty has led to Bombardier's struggling stock price and inability to release products in a timely manner. In order to cope with this
uncertainty, Bombardier attempted to establish a favourable linkage with key elements in the environment by forming a formal strategic alliance. A
$3.4 billion joint venture in Russia was created to reduce the uncertainty where both parties share the risks and costs of large projects. However, the
economic sanction imposed by Canada on Russian companies, as well as the country's political situation and weak economy has led to a delay on the
production of 100 jets and various cancellations. As CEO Pierre Beaudoin stated, "the conditions are not right at this point" indicating the dire effects of
the environment on profits (The Canadian Press,
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Air Canada's Business Case Study
Air Canada maintains several defined benefit pension plans, including domestic registered pension plans, supplemental pension plans and international
pension plans. Air Canada's pension funding obligations may vary significantly based on a wide variety of factors. Any changes to these factors may
result in an increase in Air Canada's obligations. Besides, deteriorating economic conditions or a prolonged period of low or decreasing interest rates
may result in significant increases in Air Canada's funding obligations, which could result in a huge adverse effect on Air Canada`s business.
Underfunded pension plans, failure or inability by Air Canada to make required cash contributions to its registered pension plans will harm Air Canada`s
... Show more content on Helpwriting.net ...
In section 9.8, MD&A provides more detailed information on above mentioned issue.
Current legal proceedings
Air Canada is involved in or may be subject to legal proceedings which could negatively impact the company`s operations. Recently, Air Canada was
involved in investigations by competition authorities relating to Air Canada Cargo division and mandatory retirement issues. MD&A explains the
details of the court proceedings.
External risks
Fuel cost, airport user and air navigation fees, foreign exchange, Aeroplan, Star Alliance, key suppliers, regional carriers, economic and geopolitical
conditions, competition.
Fuel cost
Cost of fuel is also one of Air Canada's largest operation costs items. Fuel prices have and may continue to fluctuate widely depending on many factors
and, therefore Air Canada cannot accurately predict fuel prices. Due to the competitive nature of the airline industry, Air Canada may not be able to
pass an increase in fuel prices to its customers by increasing its fares. In addition, Air Canada may be unable to appropriately or sufficiently hedge the
risks associated with fluctuations in fuel prices. Furthermore, the impact of lower jet fuel prices could be offset by increased price competition,
resulting in decreased revenues. Significant fluctuations in fuel prices could have a potential negative effect on Air Canada.
Foreign
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Global Political Economy : International Business School
Country Economic Analysis
Canada
Research Paper
Submitted to:
Professor Mohtadi
In partial fulfillment of the MBA course
Global Political Economy
Hult International Business School
Submitted by:
Sourav Adhikari – Francesco Campione – Itzeen Pla – Shalini Raina – Juan Diego Rojas – Jesus Verde
August 4, 2015
Boston, Massachusetts
Table of Contents
Executive Summary3
Macroeconomic trends.4
Canada's exchange rate and trade policies4
Exchange Rate5
Trade Policies6
Canada's monetary and fiscal policies8
Monetary Policy8
Fiscal Policy8
Canada's strengths.9
Canada's Weaknesses11
Canada's opportunities for growth.11
Canada's Threats12
Exhibits14
Executive Summary
For the last 10 years, the Canada's real GDP is increasing. This is not the only sign of a growing economy; the unemployment rate is decreasing as
well. Foreign trade heavily sustains the Canadian economy; it accounts for 45% of the GDP.
Canada is an open trade country, and thus its currency – the Canadian dollar – is a floating currency. After 1998, Canada also changed its intervention
policy deciding for a discretionary intervention in only exceptional circumstances. The objective of Central Bank of Canada is to preserve the value of
the currency by keeping down and stable the inflation rate.
Canada has multiple strengths. Its main strengths lie in natural resources, diversified economy, high quality public education and political stability.
Canada has also the most highly educated
... Get more on HelpWriting.net ...
can long haul low cost airlines be successful
Research in Transportation Economics, Volume 24, Issue 1, The Economics of Low Cost Airlines, 2008, Pages 61
–67 Can long–haul low–cost airlines
be successful? Dr Peter Morrell Cranfield University, Beds MK43 0AL, UK Phone: +44 1234 754242; Fax: +44 1234 752207
p.s.morrell@cranfield.ac.uk Abstract A key question is whether the very successful, largely short–haul LCC business model can work over long–haul
sectors? This paper compares the cost and other advantages of LCCs and evaluates how far they might be applied to long–haul sectors. It is estimated
that cost advantages might be much lower than the 50–60% on shorthauls. Other factors such as the adoption by network airlines of some LCC features
and their likely... Show more content on Helpwriting.net ...
Ryanair's and AirAsia's announcement of their intentions to move into long–haul markets has added to interest in the potential for such services. A
previous paper addressed the degree to which the low–cost model could be applied to long–haul operations (Francis et al, 2007). That study (based on
2003 data) concluded that a low–cost long–haul operation could only achieve a 20% cost advantage over network carriers compared to 50% on short
/medium haul flights. Their definition of long–haul flights will also be adopted here: any sector that cannot be operated by an 3 unconverted A320 or
B737, the workhorses of the low–cost business model to date. This effectively means flights of six hours or more.1 The head of Boeing's commercial
aircraft division thought that 'there might be a market for low–cost transatlantic flights; any further and creature comforts will be required' (Morgan,
2007). However, existing long–haul Y–class cabins offer seat comfort that is scarcely better than many short–haul LCCs. Furthermore other in–flight
amenities would certainly be available for purchase on a long–haul LCC. This paper examines the potential for long–haul LCCs, first by reviewing
previous proposals, looking at costs and competitive reactions before assessing market stimulation and the need for feed. Regulatory
... Get more on HelpWriting.net ...
Westjet Essay
WestJet Strategic Audit
by:
Tanya Witherington #3136712
Abdullah Saleh #3157594
Tyler Ethridge #3084252
Natasha King #265841
Yao Yao #3111635
Jaiqi Lu #
BA 4101March 21, 2005.
Daniel DoironUNBSJ West Jet
I. Current Situation
A. Current Performance
WestJet owned 28% of the domestic air market share in 2004 vs. 25% in 2003. For the year ended December 31, 2004, un–audited Revenue was $1.06
billion up by $196.4 million over 2003's revenue of $863.6 million. However, the airline reported a Net Loss of $17.2 million, down from Net Earnings
of $60.5 million in 2003. In 2004, West Jet's share... Show more content on Helpwriting.net ...
Each guest will have their own TV with 24 channels of live Bell ExpressVu satellite programming from the comfort of their leather–covered seat.
4. Policies
Implied: WestJet views its employees as its most valuable asset. Therefore, it aims to ensure that employees' work experience is fun, challenging and
rewarding. Encourages employees to interact positively with customers to try to earn repeat customers. Offer low fares and still maintain a
high–quality distinguished product that offers friendly service and a comfortable and entertaining flight experience. Maintain on–time flight operations
in a safe and efficient environment. Free snacks and non–alcoholic beverages on flights. Intelligent use of technology. Continual improvement to the
quality of its product by offering value–added initiatives such as: o Loyalty incentives (Airmiles) o Improving the comfort, convenience, and
enjoyment of its flights. o Growing its flight route network with increased frequency for increased convenience, enhanced legroom and commencement
plans for its live–feed satellite TV programming.
Stated: Environmental Policy: Pro–actively maintains its standard as a leader of environmental policy in the airline industry. Social Policy: Committed
to providing a friendly, safe, equitable, and rewarding work environment for its
... Get more on HelpWriting.net ...
How Does Coca Cola Define Strategic Management
Defining Strategic Management
The definition of strategic management continues to transform over time which coincides directly with the unremitting modernization of business.
Strategic management is understood as the implementation of a strategy statement to establish competitive advantage and innovation within a business
or industry. There is no concise, comprehensive definition of strategic management, but there are common themes that assist in understanding strategic
management today. Effective strategic management is implemented from top management; when management demonstrates a clear knowledge of their
strategy statement, their subordinates are much more efficient in accomplishing their objectives. Strategic management can be ... Show more content on
Helpwriting.net ...
Coca–Cola has been atop the soft drink market since 1898 when it became a multinational corporation. Since its inception, Coca–Cola has also been
instrumental in strategic management; in 1899 Benjamin Thomas and John Whitehead launched a bottling franchise that created over 1,000 bottling
machines within 20 years (Williams, Kevan, and Amason, 2010). Coca–Cola continued to develop their slogan, launch new beverages, and open
overseas bottling plants to guide expansion. Each of these developments was a direct result of strategic management. Coca–Cola continued to evolve as
consumer needs developed; they acquired companies that offered healthier alternatives to soda such as Odwalla and Mad River Traders.
Southwest Airlines and Coca–Cola exemplify the careful strategic management qualities that propel them towards a higher market share. It is
imperative for students, researchers, and investors to identify the strategies that high–performing companies adopt to apply like–minded strategies or
tactics to other industries or businesses. Southwest Airlines and Coca–Cola demonstrate the need for perpetual strategic management.
"Strategy unifies the various functions of a firm under a common purpose, blending together in the case of Coke a
... Get more on HelpWriting.net ...

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This Is A Summary On The Risk Management Case Study Of Air...

  • 1. This Is a Summary on the Risk Management Case Study of Air... REPORT ON RISK MANGEMENT OF AIR CANADA SUBMITTED TO : MRS.VANDANA MEHROTRA SUBMITTED BY: KUNAL KOTHARI MOHITA AGARWAL SAIMA AHMED APURV SHARMA NAINA SINGH SONAKSHI RATHI AIR CANADA– RISK MANAGEMENT INTRODUCTION: Colin Rovinescu, the Chief Executive Officer (CEO), for Air Canada was reviewing the Risk Management program of the company because the scheduled board meeting was approaching soon. He needed to deliver a comprehensive presentation in front of the board members. CHALLENGES FACED BY THEAIRLINE INDUSTRY: An Airline is a business providing a system of scheduled air transport. Also called airway. Airline industry is the business of transporting paying passengers and freight by air along regularly scheduled ... Show more content on Helpwriting.net ... Fostering a culture of change– During this time, the operating losses had turned into income and the primary reason was an increase in demand. The demand of premium cabin was near about half the $256million increase in sales. THE BOARD: The board consisted of the leaders of their own fields. It included physicians, lawyers, politicians and some of the former CEOs of airline industry.
  • 2. The board was relatively new and the most severe member had been there for four years. The risk management was the major issue which attracted most attention of the board and they dedicated more time on attention n risk management since the financial collapse. TYPES OF RISK: Risk management is a much broader process in aviation industry. It includes basically solutions to the various risk factors. They are as follows: * Catastrophic Risk: Despite flying being the safest form of traveling, catastrophic risk is attached with the aviation industry because if any unforeseen circumstances take place then major monitory damages happen. It lies in the LOW FREQUENY–HIGH SEVERITY zone. This type of risk is usually transferred to the third party through insurance. The entire commercial aircraft is insured in about $100 million to $250 million. * Operational Risk: It includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management and repair of equipments. The risk involved has low ... Get more on HelpWriting.net ...
  • 3. Transportation Security Administration Transportation Security Administration has important top class advanced imaging and selecting To check a passenger's ful body to hide the full scanners that include technology (AITs) Weapons, explosives, and other contraband system detacted. AITs mainly the threat of terrorism acts By an IED downing for a commercial airliner to prevent dedicated (Improvised Explosive Devices Device) smuggled on board by a passenger. The cost of this technology will reach $ 1.2 billion per Year by 2013 to 2014. System prepared for the traveler AITs preliminary cost –benefit analysis Screening at U.S amd Canadian airport working this time. In this section, sevice frequent–flyer programs are more and more travelers have different prices as own country to the point to where the above is free. And Or discounted tickets for in service of customer Recently, airlines have expanded the number of increase fees on routes schedules. For the transport of goods and other services charge for air travel and provide Execllent services for passenger. Threat to homeland security needs assessment and cost– benefit Programs , and supported by the Department of Homeland Security In particular, force , government , industry, and many examples ( social is made by U.S. National Research Council After a 15–month study period , the main recommendations DHS , and Their main conclusion was: " The committee did not find any DHS risk analysis Buy DHS capabilities are sufficient to support the judgment and ... Get more on HelpWriting.net ...
  • 4. Air Canada 's Business Strategy Essay Over the years Air Canada's business strategy has changed and has been reconstructed a number of times. Air Canada's mission has always remained the same, "connecting Canada and world" (Air Canada, 2016), but their visions and goals, have transformed. Air Canada's early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards their staff felt underappreciated. Their customers felt as though their feedback wasn't being heard but in the eyes of Air Canada as long as their business was expanding, they were satisfied. 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. Air Canada is now an ... Get more on HelpWriting.net ...
  • 5. A Report On Sustainable Biofuels Executive Summary With the goal of achieving carbon neutral growth by 2020 the aviation industry views sustainable biofuels as its tool to reach that goal. The major aircraft manufacturers are leaders in the research effort, utilizing their resources to fund and facilitate early tests with biofuels. While a core group of airlines using a very limited supply of biofuel is testing the commercial viability of biofuels across diverse networks. Ethanol, made from corn, is part of the first generation biofuels, which are cheaper but have a larger impact on food supply. The price of ethanol is higher than the current gas prices when factors like transportation and labour are taken into account. However, airlines may find this type of biofuel ... Show more content on Helpwriting.net ... The usage of land originally dedicated to agriculture has not only created food shortages, but also caused an increase in food prices. Furthermore, there is not enough land capacity to satisfy the demand of the biofuel industry. Biofuel is an ideal solution and the successes seen by aircraft manufacturers and airlines are small steps of progress towards full implementation. However, given the limitations in land capacity, the debate of fuel versus food, the current technological developments, high prices and lack of government support, this solution is neither economical nor sustainable. 3 Future of Alternative Fuels for Air Travel Introduction Rise of Biofuels With the airline industry committed to achieving carbon–neutral growth by 2020, the introduction of sustainably produced biofuels is a key strategy for achieving this goal. It was a multi–year process that required collaboration between aircraft makers, engine manufacturers and oil companies, with the first demonstration flight in 2008. In 2011 biofuels were approved for commercial flight use. Since that time there has been thousands of flights fuelled with sustainable biofuels, here are a few milestones; February 2008 First demonstration flight powered with biofuel, a Virgin AtlanticBoeing 747 with one engine powered with a 20% biofuel mix flew from London to Amsterdam. June 2011 First commercial flight powered with
  • 6. ... Get more on HelpWriting.net ...
  • 7. Jet Fuel Insurance Essay Chapter 1: Introduction In the United States, biodiesel and biofuel production have increased dramatically in recent years due to environmental issues from excessive petroleum usages. The world is now severely depended on oil for many purposes: powering cars, airplanes, farm vehicles, irrigation pumps, etc. It also plays a significant role as raw material for making many products like chemical products, medicines, and fabrics. In the USA, it is becoming more accessible to lessen the dependency on foreign oil. The second highest expense for airlines is the cost of jet fuel. Any increase in oil prices effects huge amount on the airlines costs and maintenances. The global demand for aviation fuel is above 40 billion gallons per year which influenced researchers to explore high quality but low cost feedstocks to produce aviation standard fuel (Oil Price.Com, 2011). Therefore, the key concern of commercial aviation is to find reliable fuel alternatives to cut costs, and reduce volatility of fuel supply and carbon emissions. In recent years, usage of bio jet fuel has got considerable... Show more content on Helpwriting.net ... Hence these components were added to the model to analyze the scenarios where growing camelina and carinata profits were compared with insurable traditional crops. This model includes yield protection (YP) and revenue protection (RP) insurance program for crops which are already insured in South Dakota; includes corn, soybean, wheat, sunflower, sorghum etc. Camelina is currently insurable in some parts of Montana and North Dakota. Though written coverage is not available for Camelina; we used NAP coverage as feasible measure. While Carinata can be covered under the canola policy as rapeseed type. Crop insurance premiums are calculated based on producer premiums paid at 65% coverage level. The 65% coverage level was chosen based on highest actual production history (APH) insurance policy sold for each crops per ... Get more on HelpWriting.net ...
  • 8. United Airlines: A Very Brief History Of Flight History of Flight Throughout 20th century, two pioneering aviators and inventors, Orville and Wilbur Wright, turned human's dream of flying into a reality. Although they were not the first to build and fly an aircraft, the Wright brothers made, the world's first power–driven heavier–than–air machine and aircraft that could be controlled while in the air. Before aircraft was invented, human tried to imitate bird's posture to fly across the sky by building ornithopters, which was a designed to fly by flapping its wings. Therefore, Wright Brothers' invention shaped our culture and changed the way we view our world . Wright Brothers developed their interest in flying after they read about the death of a German glider pioneer Otto Lilienthal... Show more content on Helpwriting.net ... This merger gave an opportunity to United to cover its routes in the entire United States. In 1968, the holding company reorganized and renamed as UAL Corporation. The reorganization led to United Airlines become a wholly own subsidiary. (5) On the other hand, another America's most widely recognized airlines, Pan American Airways, also helped the development ofairline. Under the administration of Juan Trippe, founder of Pan American Airways, they launched first regularly scheduled international flight by U.S. airline and first flying mail between Key West, Florida, and Havana, and Cuba. At one time, their brandname was one of the most recognized in the world, second only to Coca–Cola. (6) After graduating from Yale in 1920, Trippe used his father's inheritance to buy nine Curtiss JN–4 "Jenny", biplanes built by the Curtiss Aeroplane Company, for Long Island Airways; However, this airline was unable to generate enough revenue and it failed. Then, Trippe with two wealthy friends from Yale organized another airline, Colonial Air Transport, after the Air Mail Act of 1925. They won the first airmail contract between New York and Boston. Nonetheless, they failed again because a dispute among stockholders soon resulted in the sale of the company and they were excluded from any decision and their airline. ... Get more on HelpWriting.net ...
  • 9. Air Canada In Microeconomics, Air Transportation is a necessity to a country economy and growth. Many countries rely on Air Transportation because of its benefits. Air Canada is the biggest airline also it was the first airline that was created in Canada. Many Canadians chooses Air Canada because of its size and services. According to the future population, as the Technology expands, many people see air travel as a sign for the future. In today's society, many people rely on Flight Transportation so it travels across the globe. Market Analysis in Air Canada focuses on the air tickets that firms provide to consumers and the Air transportation that supports the firm, and the competitors that compete for the firm and how consumers react to the price change of the firm. To begin, Air Canada was created on April 10th, 1936. Air Canada is one of national, full –service airlines in Canada that has the ability to travel worldwide. Before, the name of Air Canada was given to a Canadian company that was called TransCanada lines. The first operational flight was from "Vancouver to Seattle"(about Air Canada).... Show more content on Helpwriting.net ... It shows how the demand for a product increase or decreases in price set. In Microeconomics this theory is called as Price elasticity of demand. Price elasticity of demand measures the change in quantity demanded or purchased of a product in relation to its price change (investinganswers.web). This Economical tool shows the response of how consumers react to price change. There are two types of defining the consumer attitude on Prices. If prices are high and demand is low, it means elastic. If prices increases and demand is still the same then it means inelastic, because of no response or action on the price change. In Air Canada prices increase in seasons, such as summer, winter changes. Due to these scenarios, Air Canada uses this opportunity to increase their budget. According to a report in lapresse ... Get more on HelpWriting.net ...
  • 10. Strategic Management Assignment Faculty of Business and Law Session: 2008/9 MBA: Strategic Management 1 Assignment Introduction Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of 'market structure'. Economists' models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their performance. A key question therefore is how far a firm's strategic decisions are shaped by the structure of the market in which it operates. You are required to undertake a detailed examination of the changing nature of the long–haul transatlantic airline market. The market you are required to investigate comprises only the international ... Show more content on Helpwriting.net ... He lambasted British Airways and Virgin for "fleecing passengers for too long" as he and his brother Hugh unveiled a route from London to New York for just ВЈ129 each way. With two hot meals, designated seating and premium upgrades, it aimed to change long–haul air travel and make Scotland a powerhouse in global aviation. A stock market flotation was mooted, valuing the airline at up to ВЈ100m, while its summer flight schedule was spectacularly upgraded, offering 40% more seats across the Atlantic. Not since the days of Sir Freddie Laker 's Skytrain in the late 1970s had the established transatlantic carriers faced such a threat. Back then, despite huge support from the public and the Prime Minister, it took five years and an aggressive price dropping exercise for the competition to drive Laker out. But while British Airways, Pan Am, TWA and Lufthansa were said to have met to plot Laker 's downfall, with Zoom they didn 't have to: a soaring fuel bill did it for them.
  • 11. As with other transatlantic carries such as MaxJet, Eos and Silverjet, Zoom 's problems lay primarily with the price of oil, which last year added more than ВЈ27m to Zoom 's fuel bill. A combination of soaring oil prices, poor sales and a weak economy has precipitated the worst crisis ... Get more on HelpWriting.net ...
  • 12. Corporate Social Responsibility Report CORPORATE SOCIAL RESPONSIBILITY REPORT Although corporate social responsibility has no universal definition, it is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society. (Industry Canada, 2011) This report will represent the critical analysis of the current Corporate Social Responsibility practices of Air Canada followed by recommendations for improvement. 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. ... Show more content on Helpwriting.net ... Although it appears as if Air Canada is selflessly attempting to make the game of hockey a safer sport, one may question if they are capable of making the rules of a professional sport which has nothing to do with their core business. Many companies, in an attempt to save face in the public's eye, have exercised their power to make decisions regarding matters that they have no knowledge or expertise in. I believe Air Canada has an underlying motive of attempting to increase profitability by appearing to society as an organization that does not tolerate or condone actions that are frowned upon by society. Furthermore, Air Canada's headquarters are in Montreal which is the same location of the aforementioned incident and may represent a conflict of interest. Another pressing concern in the news headlines recently has been the unfair labour practice complaint filed by Air Canada against the Canadian Union of Public Employees (CUPE) over the collective bargaining negotiations ... Get more on HelpWriting.net ...
  • 13. Case Analysis of Porter Airlines and Their Business Level... Through Their Expansion Plans, How will Porter Airlines Effectively Utilize Their Low–Cost Business Level Strategy to Increase Their Customer Base? Table of Contents Executive Summary...............................................................................p. 3 Porter Airlines......................................................................................p. 4 The Expansion......................................................................................p. 4 What is Organizational Strategy.................................................................p. 7 Porter Airlines Business Level Strategy........................................................p. 9 Core Competencies ......................................................................p. 9 Competitive Advantage..................................................................p.12 Low Cost Business Level Strategy.....................................................p. 13 Low Cost Business– Level Structure..........................................................p. 15 Conclusion........................................................................................p. 17... Show more content on Helpwriting.net ... In recent years, Porter opened a new $50 million 10–gate terminal, increasing take off slots from 167 to 202 (allowing for more flights during the day). Within the last year, Porter Airlines has added service to Newfoundland and Charleston, South Carolina. The company is currently approaching the completion of an underground tunnel, which will increase and improve traffic flow from the terminal to the main land compared to the original transportation via ferry. It has long been assumed that in the recent years Porter has plateaued. Billy Bishop is restricted to 202 landing slots daily, and the Q400s can't fly any farther than Porter already flies them. Due to this, in April 2013, Porter announced expansion plans to increase its customer base. The plan stated that their goals would be accomplished through increasing the number of destinations, acquiring 30 Bombardier CS100 Jets, and increasing the airport runway by 300 meters on each end. However their plan has been met with many challenges, because Porter's plans require regulatory and facility changes to its Billy Bishop Toronto City Airport hub. Porter has asked for modifications to the operating agreement of the airport to allow jets and extensions to the runway to support the new aircraft (Porter, 2015). Signed in 1983 by the federal and municipal governments and the predecessor to the Port Authority, the tripartite agreement lays out regulations and restrictions intended to govern Billy ... Get more on HelpWriting.net ...
  • 14. The Financial Performance of Low-Cost and Full-Service... The Financial Performance of Low–Cost and Full–Service Airlines in Times of Crisis Triant Flouris, Thomas John Walker. Canadian Journal of Administrative Sciences. Halifax: Mar 2005. Vol. 22, Iss. 1; pg. 3, 18 pgs Abstract This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001, terrorist attacks. September 11 (9/11) resulted in dramatic changes in theairline industry and had significant implications for the economic gains and future prospects of most airlines. Our study focuses on the stock market's perception of the viability of low–cost versus full–service business models in the aftermath of 9/11. We choose Southwest Airlines as a typical... Show more content on Helpwriting.net ... Lawton (2003) advances the argument that low–cost carriers (LCCs) were in a position to go on the offensive and aggressively exploit the changed industry climate after 9/11 by renegotiating labour contracts, by negotiating lower prices for new airplanes in what had suddenly become a buyer's market for new aircraft, and by pursuing aggressive pricing strategies to increase their market share relative to legacy carriers. Legacy carriers, being exposed to a significantly higher overhead burden, were forced into defensive strategies that provided them with little operational flexibility. These developments are difficult to observe in the airlines' accounting figures in the short term, but if they are perceived to change a firm's future cash flows they should be reflected in the market's valuation of the firm's stock. When investigating the impact that the events of 9/11 had on each airline's risk, we consider both the systematic and unsystematic volatility of the stocks' returns. This allows us to differentiate between risk factors that affected the market as a whole and risk factors that affected the firms specifically. Although we employ only a small sample, our results are highly consistent.2 We observe that Southwest performed significantly better after 9/11 than its mainstream competitors ... Get more on HelpWriting.net ...
  • 15. Aviation Provides The Sole Worldwide Transportation... Aviation provides the sole worldwide transportation network that makes it essential for international business and tourism. It plays a significant role in facilitating economic growth, notably in developing countries. Flying transports close to two billion travelers per annum and four–hundredth of interregional fares of merchandise (by worth), four–hundredth of international tourists currently travel by air. The air transportation industry generates a total of twenty nine million jobs globally (through direct, indirect, induced and catalytic impacts). Aviation's international economic impact (direct, indirect, induced and catalytic) is calculable at US$ 2,960 billion, comparable to 8 may 1945 of world Gross Domestic Product (GDP) Aviation boasts high occupancy rates of sixty five to seventieth – that is more than double those of road and rail transportation. Air transportation entirely covers its infrastructure prices. In contrast to road and rail, it is a net contributor to national treasuries through taxation. Modern craft achieve fuel efficiencies of three.5 liters per one hundred passenger–km or sixty seven passenger–miles per US gallon. The next generation craft (A380 & B787) are targeting a potency of less than three liters per one hundred passenger–km or seventy eight passenger–miles per US gallon5, which exceeds the efficiency of any modern automobile on the market. The air transportation industry includes those activities that are directly captivated with ... Get more on HelpWriting.net ...
  • 16. Essay on Airline Industry Strategic Management Assignment MBA: Strategic Management Assignment Introduction Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of 'market structure'. Economists' models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their performance. A key question therefore is how far a firm's strategic decisions are shaped by the structure of the market in which it operates. You are required to undertake a detailed examination of the changing nature of the long–haul transatlantic airline market. The market you are required to investigate comprises only the international passenger market (i.e. excluding the movement of goods by ... Show more content on Helpwriting.net ... Draw upon market data which is available, to support your conclusions on "Market Structure" with in this industry sector. (30% of marks) 3.Given the conclusions drawn on Market Structure above, examine the level of competition within this market sector with the use of Porters 5 forces model to reinforce your explanation. (20 % of marks) 4.Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival? (25% of marks) Procedure 1. This is an individual project, leading to the production of an individual report. 2. All the data and information you need to complete this assignment is in the public domain and is easily accessible via electronic means. Please do not approach the companies for help with this project. 3. Your project should be presented in report format and should contain an Executive Summary and a Bibliography. Use of Appendices would be appropriate.
  • 17. 4. Your report should be a maximum of 4000 words (excluding Appendices and Bibliography). 5. Submit your report to the Graduate School Office no later than 12th of January. 6. The assessed report will be returned to you within 3 weeks. Your grade will be subject to ratification by the External Examiner and the ... Get more on HelpWriting.net ...
  • 18. Hrm in Aviation International Applied Business Research Conference Acapulco, Mexico 2003 Human Resource Management In The Global Civil Aviation Industry: A Survey And Analysis Of Recruitment And Selection, Organization Development, And Education, Training And Development Practices Dr. Steven H. Appelbaum, Concordia University, Canada Brenda M. Fewster, Concordia University, Canada Abstract The civil aviation is an extremely competitive, safety–sensitive, high technology service industry. People, employees and customers, not products and machines per se, must be the arena of an organization's core competence. The implications are vast and pervasive affecting no less than the organization's structure, strategy, culture, and numerous operational ... Show more content on Helpwriting.net ... The primary focus of HRM strategy is the manner in which the HR department aligns general activities, policies and procedures with the opportunity imperatives of the organization. Such relevant HRM expertise constitutes nothing less than a powerful strategic opportunity. Methodology The original purpose of the audit's companion review of the literature was to find other empirical studies of the airline industry regarding HRM practices, from an applied perspective, with which to compare and contrast the results of the audit presented later in this article. None were found. This is consistent with the findings of other researchers. M. L. Thomas (1997), author of the book, A PortfolioManagement Approach to Strategic Airline Planning, comments on the scarcity of research in the area of airline management. "In reviewing the literature on international aviation, it is clear that researchers tend to analyze the industry at a macro–level. Although it has gained much attention recently . . . the topic of international commercial airline management suffers from a lack of theoretical and empirical work, and the scarcity of literature from a microeconomic perspective." According to J. Eaton (2001), author of the book, Globalization and Human Resource in the Airline Industry, research is particularly difficult because "Airline managers are even more secretive and defensive about academic research than ... Get more on HelpWriting.net ...
  • 19. Air Canada Case The overall problem in this case is how Air Canada will handle quadrant one risk, and how much of these risks will they hedge. Volatility in this industry, such as changes in fuel prices, have been eating at Air Canada's profits. They currently purchase fuel futures for thirty four percent of needed fuel. Air Canada is also hedging on interest rates, exchange rates and personal stock price fluctuations. It seems like their business model is not flexible or adequate if they need to insure and hedge almost every single risk they encounter. This decision mainly focuses on how this airline should handle risks and to critique their current strategy in terms of effectiveness. The main player in this problem is Air Canada, who recently merged with... Show more content on Helpwriting.net ... Of course turning a profit and cutting costs are still important to the airline. Adjusting the risk level, of the main four risks, is most important to the fact that it is diminishing their profitability. Many risk elements exist within Air Canada environment. They mention many risks, like catastrophic ones, but these are insured against. Other risks they insure are ones that do not occur often, but have heavy penalties. The operational risk that Air Canada accepts are the ones that happen often, but have a low impact compared to catastrophic ones. The risks that concern the airline the most are the quadrant one high frequency, high severity risks. These risks include fluctuations in fuel price, interest, exchange rates and stock price. Information I would like to know is how the smaller, low–cost airlines handle this type of risk. Small airlines seem mostly unaffected by this price volatility, and continue to grow organically. It is possible that these large airlines are too complex in structure and cannot freely move with the environment and thus resort to consolidation to make up for it. I would also like to know if Air Canada can move its expenses into its own territory instead of losing money on the exchange rate in the United ... Get more on HelpWriting.net ...
  • 20. Westjet Is A Canadian Based Airline WestJet Airlines is a Canadian based airline that offers low–cost airfares coupled with excellent customer service. The founders of WestJet Clive Beddoe, Don Bell, Mark Hill, and Tim Morgan successfully established its original headquarters in Calgary, Canada in 1996. Through researchingother successful airlines throughout North America, the founders were highly inspired by the low–cost carriers of Southwest Airlines. As a result, the founders contacted David Neeleman, president of Morris Air, which later become apart of Southwest Airlines for help in developing a business plan forWestJet. WestJet had created a high corporate culture that offers low–cost, low–fare, short–haul, anda point–to–point airline that served Western Canada. Slowly ... Show more content on Helpwriting.net ... Those statistics are almost unheard of for a company that just started five years ago. Truth is, there will never be a perfect company. With great success, there's always turbulence along the way, WestJet is far from the perfect company. WestJet's main concern is expanding and if they don't expand, it will give other airlines a chance to enter the market that could hurt the carrier's low–cost, low–fare, short–haul, point–to–point services of Western Canada. Additionally, the expansion project will make it difficult to keep WestJet's famous culture alive as the company grows on a global scale. Remember, WestJet's strong and outstanding culture was the root of the growing company. WestJet emphasis on the commitment to maintaining the culture, stating "a vibrant corporate culture was so central to WestJet's success that preserving it was Bell's and Beddoe's main obsession". It is a problem because if they don't end up expanding outside of Western Canada, new airlines could enter the market and meet the demands of Eastern Canada since WestJet is content with serving Western Canada. Other airlines noticed the success of WestJet and were attempting to mimic WestJet and its strong culture to serve more than just Western Canada. WestJet follows theory Y as their management style, by following this management style they have been able to carry on their operations both effectively and ... Get more on HelpWriting.net ...
  • 21. Air Transat analysis Air Transat Introduction: Air Transat is a Canadian airline based in Montreal, Quebec. It was founded in 1987, and is owned by Transat A.T. Inc. According to Air Transat's website, their mission statement is: "Air Transat is Canada's leading holiday travel airline. Every year, it carries some 3 million passengers to nearly 60 destinations in 25 countries aboard its fleet of Airbus wide–body jets. The company employs approximately 2,000 people. Air Transat is a business unit of Transat A.T. Inc., an integrated international tour operator with more than 60 destination countries and that distributes products in over 50 countries. Air Transat was named World's Best Leisure Airline at the Skytrax annual World Airline Awards, held in... Show more content on Helpwriting.net ... New European union regulations have led to higher levels of competition on European routes. Increase in the price of oil Increase in transportation costs Increase in disposable income due to rise in incomes and lower interest rates (people have more money to spend on leisure trips) Change in consumer behavior resulting from the aging population in Canada may affect the number of leisure trips taken Increased popularity in travelling abroad – Carbon dioxide emission – Emirates airlines launching double decker aircrafts (A380), serving 25 destinations – Wireless internet being launched in aircrafts – Frequent flyer programs The increase in the price of oil and the rate at which it is increasing is a global issue. For Air Transat, this means an increase in cost and expenditure. Since oil is essential in this industry, there is not much that Air Transat can do. The increase in the price of oil could cause force Air Transat to increase their prices
  • 22. ... Get more on HelpWriting.net ...
  • 23. Qantas Case Study Essay Strategic Analysis – Qantas Case study Introduction Qantas Airways Limited was found in Queensland in Australia back in 1920. Both domestically and globally Qantas airline has grown to be the largest flight destination as well as the oldest in all Australia. In the airline industry, Qantas puts more effort to lead the industry. The company guarantees the safety of the clients. Additionally, the company is well known for its sufficient operations that are meant to provide quality customer service. Theairline created Qantas and Jetstar, two strong brand reputations. Jetstar is concerned about differentiation, low prices, and cost advantage. Additionally, Jetstar is a subsidiary of Qantas. It is a private airline business independent from the ... Show more content on Helpwriting.net ... This will help receive the clients' satisfaction. Human Resource Qantas should put more focus on the human resource. There is the need to provide enough coaching to its personnel to ensure the client's fulfillment. The brand recognition is equally crucial. Qantas Airline needs to provide the sustainable level of safety and security to avoid damage to the reputation of the brand and the company as a whole. It should invest highly to bring in the best ideology to conserve the company's objective. Providing the best security and well being can build the brand recognition. Conclusion The company has both full service and premium brands. They create their brand reputation globally by providing exceptional products and services to customers. Safety and advanced technology is one of the services the company stresses on and followed by human resources and environmentally friendly services. Additionally, domestic and international competition threatens the company that can weaken Qantas band recognition. Through fewer accidents and sufficient services, competitors can grab the market share and develop brand loyalty. Therefore, for Qantas to remain competitive in the industry there should be sustainable and qualitative ... Get more on HelpWriting.net ...
  • 24. Air Canada Marketing Mix Essay The textbook defines a marketing mix as the controllable set of activities, which are product, price, place and promotion that a company uses to respond to the wants of its target market. (textbook pg 7) These activities can be influenced by decision makers to better position their product in the market. Air Canada uses their marketing mix strategy to increase its competitive advantage by protecting its brand, and meeting its strategic objectives. Product/service The fundamental purpose of marketing is to create value by developing a variety of product and service offerings to satisfy customer's needs. (textbook 7) Air Canada offers a variety of services in creating value for its customers. The service offered by Air Canada is air transportation... Show more content on Helpwriting.net ... Their pricing is dependent on various aspects as follows; how far in advance the customers book their tickets, the time of the year, which seat class they would like to fly or whether they have a luggage to check in or not (textbook 8). Air Canada also has a price guarantee insuring their customers pay the lowest price the region. They have a running statement stating, "No need to search for lower Air Canada prices elsewhere – you won't find them. If, within 24 hours of completing a ticket purchase on aircanada.com or aircanada.com/agents, you find a lower–priced ticket elsewhere, we'll offer you a promotion code valued at $50, plus the price difference, for each passenger on your booking" (5). Over the years Air Canada has created a brand image that focuses on their ticket pricing being the lowest in the market to accommodate their customers travel needs. With this price guarantee, Air Canada's customers can reliably book their travel needs knowing they have received the best price available. This marketing tactic provides customer satisfaction regarding pricing and in turn allows Air Canada to attracts customers to travel with them. The price factor in a marketing mix doesn't always refer to a monetary value; this can also involve anything the consumer gives up for example time and energy in exchange for the product or service (textbook 8). Given that Air Canada has a price guarantee their customers can save time and effort without looking ... Get more on HelpWriting.net ...
  • 25. U.s. Airlines ' Open Skies ' Program And Continuation Of... CHAPTER I INTRODUCTION Background of the Problem With the introduction of the 'Open Skies' program and the continuation of globalization, U.S. airlines are facing stiffer competition. As the possibility of cabotage looms in the future, American passengers may have more opportunities to fly foreign carriers both at home and abroad. 'Open Skies' operations have commenced on transatlantic and intra–EU routes, meaning that choice of carrier has expanded for U.S. air travelers abroad. EU authorities challenenged US authorities for the right to operate EU carriers within the U.S. domestic market, as well as the right to own larger shares of American carriers, by 2010. As of this writing, the U.S. has not recipricated these air ... Show more content on Helpwriting.net ... He holds his Commercial, Multi–Engine, and Instrument flight ratings. He is currently employed as a program manager in the Space Based Infrared Systems Directorate at Los Angeles Air Force Base.
  • 26. Statement of the Problem As of 4 May 2012, the United States has entered into Open Skies agreements with 105 countries (Open Skies Partners, 2012). United States–based airlines now have more competition than in the past and need a strategic plan to remain competitive. As a part of this plan, the airlines will need to possess an understanding of how consumer perceptions of safety, service, and cost will affect the amount of cross flow of passengers from U.S. airlines to foreign carriers in a domestic Open Sky market, as well as foreign markets. Understanding which factors affect the customer's decision the most, and how U.S. customers view foreign airlines, will be critical in understanding the shift in demand resulting from increased foreign ownership and foreign airline access. Significance of the Problem If U.S. airlines do not understand the perceptions of foreign and foreign owned airlines, they stand to lose market share and revenue in an Open Sky market. The International Trade Administration and the State Department claim that the estimated current economic value of the US–EU open skies agreement is worth $12 billion annually to the airline industry and related industries. However, the increased ... Get more on HelpWriting.net ...
  • 27. Case Study: Egyptair Projections: 1– Risks: – Political stability: Egyptair continues to make massive losses as the carrier and Egypt struggle to recover from the Jan–2011 revolution which resulted in the airline moving into crisis mode for two months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue evaporated. The instability of the political situation which we could say its improving gradually this year had been one of the major risks that's facing Egyptair. – Reduced demand and Customer inability to pay: Average ticket prices have jumped 10 percent in the last several years, potentially turning off consumers that can reach their destination in other ways and specially After the global downturns and the hard financial times customers ability to pay for tickets for certain destinations that are tend to be expensive had declined. So the company had to compensate these loss by offering promotions and discounts over tickets to ... Show more content on Helpwriting.net ... The budget is a reflection of the goals and strategies we have for each area of our business. The figures we budget for sales and expenses will help us to chart the financial performance and compare the business's actual performance against our goals. Egyptair is using the Top down budgeting strategy throughout its annual planning. Our strategies will include an increase in marketing expenses, payroll to produce our service professionally competitive in the global market and capital equipment purchases. Though we will guarantee through determining our budget plan the marketing expenses should be planned wisely for the benefit of the Airlines development but still compatible with our current situation of loss of profits and revenues that we are currently and recently facing these past years. Developing a budget will help us to plan for the costs of implementing these ... Get more on HelpWriting.net ...
  • 28. Qantas Of The Largest Airline Companies Of Australia This report is on Qantas which is one of the largest airline companies of Australia. It is operating in more than48countries of the world. Qantas is admired by people for its safety, low fare, good and friendly crew. Qantas is providing quality service to its customers. Qantas is facing a few problems mainly due to its high cost and strong competition in the international market. The management of Qantas needs to work according to the international standards to cope up with the present day customer needs and requirements. Mostly the employees of Qantas are satisfied with its working environment, salary and other benefits. However, they need to develop their career. The services provided by Qantas to its passengers are good. The food, drinks, seating system, safety measures is highly admired by the people and they also appreciate to have a comfortable and safe journey at cheap price. Qantas is having a strong competition with other airlines especially Virgin which is also one of the airlines of Australia. They were having a dispute over some petty matters but now they have resolved their arguments. The government now is also offering their support to Qantas so that it can improve its profitability. 1 Introduction of Qantas: Qantas was founded in 1920 by Hudson fysh and McGinness in Queensland. Qantas is one of the best airlines in Australia which is providing both international and domestic services to the people. Because of its safety, perfect management, maintenance and ... Get more on HelpWriting.net ...
  • 29. The Pros And Cons Of Air Traffic Control Since the very beginning of air travel, the Federal Aviation Administration's National Air Traffic Control (ATC) system has kept passengers safe and moved people and goods with unmatched efficiency, and it has continually evolved to meet the needs of the aviation industry. However, many have sought to hand over control of the ATC system to a private entity, separate from the FAA, dominated by the airlines, and unaccountable to the public. The latest of these effort comes in the form of a renewed push endorsed by President Donald Trump, in a misguided attempt to "Make Air Travel Great Again." What would come with private ATC would be just the opposite: rising costs passed on toairline passengers and general aviation operations, and funds shifted from local general aviation (GA) airports to the nation's hub airports, and unfair access to the nation's skies favoring the airlines and leaving GA behind. Since the invention of flight, the sky over America have been free for anyone to use, but this may no longer be the case. The costs to the aviation industry will be staggering. Pilots, controllers, and other aviation professionals have not accepted a private ATC system in the past and must resist it again for the love of flying. Privatization of government services and agencies has long been a proposed solution to rising costs, delayed updates, and inconsistent budgets that federal agencies currently have to deal with. Air Traffic Control is no exception. Rep. Bill Shuster ... Get more on HelpWriting.net ...
  • 30. Air Cargo Portal Services Brings Question 1 Information systems have become a major part of the almost all industries including the air cargo industry. Information systems have helped the air cargo industry remain competitive, provide customers and other with an efficient and easy to use service, and has kept the industry up to date. In 2003, Cargo Patrol Services (CPS) opened for business as the air cargo industry's first full–service Internet portal that provided the industry with an electronic booking and shipment management system. Without this new system, the air cargo industry would have suffered, especially after the September 11th terrorist attacks when investments in airline declined. The purpose of the new information system was to implement a process that ... Show more content on Helpwriting.net ... Also, they needed to see if the new system is compatible and integrated well with their legacy system. Question 4 The level of project risk is influenced by project size, project structure, and the level of technical expertise of the information systems staff and project team. Technology level is low. The Unisys aircargo system was already used by two of the three carriers (Air Canada, United, and Northwest), and Unisys also had the advantage of Web development and integration expertise gained from other projects. Unisys also decided on an object–oriented approach to reuse existing modules from its other projects: key technologies such as a weblogic server and a multitier architecture using J2EE. Project structure is medium–low. Unisys need to create a system that would work with the various legacy systems and the differing procedures used by airlines. The site had to satisfy the requirements of the three launch carriers and also make it easy for other carriers to adopt after the portal went live. Project size is large. The original broad design had to be broken down into detailed specifications, which took three months and required the three carriers to set aside all of their competitive issues and differences. StructureTechnology LevelSizeRisk Medium–lowLowLargeMedium
  • 31. Question 5 Air Canada did the right thing by going forward with his project. There was a lot of work involved since they met once a week and ... Get more on HelpWriting.net ...
  • 32. History of British Airways Company History: British Airways PLC is the largest international airline in the world. It is based at Heathrow Airport in London, the busiest international airport in the world, and has a global flight network through such partners as USAir in the United States, Qantas in Australia, and TAT European Airlines in France. Via its own operations and those of its alliance partners, British Airways serves 95 million passengers a year using 441 airports in 86 countries and more than 1,000 planes. British Airways ' earliest predecessor was Aircraft Transport & Travel, Ltd., founded in 1916. On August 25, 1919 this company inaugurated the world 's first scheduled international air service, with a converted de Havilland 4A day bomber leaving ... Show more content on Helpwriting.net ... Britain 's primary supplier of flying boats, the Short Company, developed a new model, designated the C–class, with 24 seats and weighing 18 tons. Since it had an increased range and flew 145 miles per hour, it was able to simply bypass "politically difficult areas." The Short C–class went into service in October 1936. A year later Imperial Airways made its first trans–Atlantic crossing with a flying boat equipped with extra fuel tanks. However, it was Pan Am, with more sophisticated and updated Boeing airplanes, which was first to schedule a regular trans–Atlantic service. Imperial Airways was formed with the intention of being Britain 's "chosen instrument" for overseas air service. On its European services, however, Imperial was competing with the British Continental airlines and an aggressive newcomer called British Airways. British Airways was created in October 1935 by the merger of three smaller airline companies. Three months later the company acquired a fleet of Lockheed 10 Electras which were the fastest airplanes yet available. The competition from British Airways threatened the "chosen instrument" so much that in November 1937 a Parliamentary committee proposed the nationalization and merger of Imperial and British Airways. When the reorganization was completed on November 24, 1939, the British Overseas Airways Corporation (BOAC) was formed. The creation of BOAC was overshadowed ... Get more on HelpWriting.net ...
  • 33. British Airways Business Environment Essay British Airways also known as BA is United Kingdom based airline. Based on fleet size, British airline is the largest airline of the United Kingdom. It is the second largest airline measured by passengers carried. In 1972, British Airways board was established by the government of United Kingdom for managing two nationalised airline corporations British European airways and British Overseas Airways Corporation along with two regional smaller airlines Northeast Airlines from Newcastle upon Tyne and Cambrian Airways from Cardiff. All four companies were merged in 1974 to formBritish Airways. In 1987, British Airways was privatised after being the state company for almost 13 years. With the acquisition of British Caledonian in 1987, Dan–Air ... Show more content on Helpwriting.net ... The external business environment includes a number of factors that are outside the company and that are beyond the control of the organisation. For the success of the organisation, effectively managing the internal strengths and operations of the business and identifying the potential threats and opportunities which exists in the external environment are the key factors. In the current business environment, it is important for the British Airways, as it is conducting its operations both on the national and international level to focus on its internal and external factors (Armstrong & Kotler, 2005). These internal and external factors possess direct and indirect impact on the profitability and business activities of British Airways. Therefore, for the effective management of British Airways, different analytical tools such as SWOT, PESTLE, Porter's five forces and Ansoff Matrix are used to analyse the factors that is affecting the company's operations. For British Airways, analytical tools such as PESTLE, Porter's five forces and Ansoff Matrix can be used to analyse the external environment, to help formulate the company such strategies that can facilitate the company in generation of increased profit both on the national and international level and that can help the company in gaining competitive edge in the market (Baines, et al., ... Get more on HelpWriting.net ...
  • 34. Low Cost Airlines Strategy | Airlines Low Cost Industry| | | | | | Situation It's a chilly winter evening in Bangalore and Vijay Mallya looks out of the window with a Kingfisher Beer pint in his hand. He looks out at the reddish horizon and contemplates the future of his airlines – The Kingfisher Airlines. He has recently bought the first low cost carrier in India, Air Deccan. With the sale of Air Deccan, the industry has seen a correction of sorts, in terms of the cost of travel. With increasing oil rates and the turmoil that the airlines' industry is currently in, Mallya needs to come up with a strategy to make best of the low cost carrier. He also needs to ... Show more content on Helpwriting.net ... Kingfisher airlines ranks second with 20% market share. NACIL (National Aviation Company Limited) which, was formed in 2007 with the merger of two national carriers Air India and Indian Airlines, captures 18.3% share. The airline with the largest fleet in the domestic market is Air India, but its market share of the number of passengers is low, and therefore results in a low fleet hare to passenger share ratio of 0.62. Kingfisher leads the full service carrier segment with a fleet to market share ratio of 0.95, but this also includes figures from their low cost Kingfisher Red service. Passenger market share leader Jet Airways is at 0.82 and this includes their low fare service Jet Konnect. For a better comparison between Jet and Kingfisher, if we add–up the numbers of Jet's other low fare subsidiary JetLite, the total group ratio of Jet at 0.865 still remains well behind Kingfisher's 0.95, suggesting a far more aggressive fleet utilisation strategy by Kingfisher. Expectedly, the low fare carrier side shows much higher ratios, due to their higher usage of aircraft and also the higher number of seats offered per flight due to an all–economy configuration. The laggard is JetLite with a ratio of 1 while SpiceJet and IndiGo are neck and neck at 1.75 and 1.76.However, GoAir, has an industry leading, fleet to passenger share ratio of 2.04. Clearly the airline has shaken off the demons of
  • 35. ... Get more on HelpWriting.net ...
  • 36. Essay about Comapring Porters 5 Forces for the Airline... Assignment # 1 Strategic Practice Exercise: (page #81) 1. Score each competitive force in the airline industry and provide a brief rationale for your assessment. В·Rivalry Among Existing Firms: (High) When one major company in an industry makes a change in costs or services that could potentially increase their clientele, a major competitor almost always follows suit. Price matching is a prime example of that, therefore the threat is high. West Jet is one company that offers flights at a discount and forced Air Canada to create new banners to compete with the discounted prices. All major companies and firms in an industry watch each other's every move very carefully, and match any move with a countermove. During slow season in the airline ... Show more content on Helpwriting.net ... Therefore, the threat of substitution is a significant factor in the airline industry. However, if a customer has to travel very quickly or a significant distance, that person would most likely choose the flight option instead of a cheaper alternative. В·Bargaining Power of Buyers/Distributors: (Medium) Bargaining power is a tricky one because it can work both ways. Buyers have a certain level of power in any industry. A buyer may switch suppliers very easily if there are no penalties and it is cost effective for them. If a large firm makes a large purchase of goods from another firm, it may be mutually beneficial and if serviced well, have the potential for repeat business. However, the buyer then has the power to use a substitute or competitor which would negatively affect the seller. Buyers are always the more powerful of the two because some buyers have the ability to put pressure on lower costs from suppliers, while demanding an increase of the quality of products or services provided to them. Also, the bargaining power in industries with high fixed costs like the airline industry can play a big factor. On the other hand, things like jet engines, tires and other key safety devices on aircrafts can cause severe consequences if this equipment malfunctions. For that reason, the buyer has a reduced amount of bargaining power with suppliers in this industry. The bargaining power of buyers is both high and low, so I ranked it medium. В·Bargaining ... Get more on HelpWriting.net ...
  • 37. The Growth And Success Of Canadian Airline Westjet Essay Roger Solis MNGT 370 Dr. Dilek Yunlu WestJet Case Analysis Introduction This article discusses the growth and success of Canadian airline WestJet. The company was established in 1994 by Clive Beddoes who stumbled upon an opportunity to collaborate with fellow businessmen: Tim Morgan, Don Bell, and Mark Hill to create a cost–effective and very profitable airline in western Canada. Together they achieved a concept of an airline that would be low–fare but rich in culture to maintain its integrity. With the help of David Needleman, president of Morris Air, the team developed a business plan and visualized what is now WestJet Airlines. They built an integrative, financial model and business plan which included only three aircraft and features of being: direct, cost–effective, and short–haul. Within 30 days of constructing a business plan the needed capital was raised and the foundation for WestJet airlines kicked off. In 1995 WestJet was established and began rapidly integrating into eastern Canada. Problem WestJet's quick success posed an issue because even though it was centered on culture eventually its concept would fail; the airline was growing very quickly and that could only mean that it would be difficult to maintain the intimate focus while staying extremely profitable. Critical Analysis In 1999 many changes occurred within the Canadian market of aviation. There was merging between successful and struggling airlines, and even airlines that failed relatively ... Get more on HelpWriting.net ...
  • 38. Canadian Tour Industry Case Analysis VOYAGES SOLEIL: THE HEDGING DECISION Industry and Situation Analysis According to the case, the Canadian tour operating industry had been flourishing between 1988 and September 11, 2001. The Canadian economy growth rate also was increasingly as this industry that was very positively correlated with the overall economy. On September 11, 2001, there was the terrorist attack the Twin Towers of the World Trade Center in New York City. As a result, both buildings collapsed within two hours, destroying nearby buildings and damaging others, also killing everyone on board and many others working in the buildings. After this event, the economy in the United States and the overall countries slowed down. Specifically, the total number of trips... Show more content on Helpwriting.net ... | Present:April 1, 2002(Actual St = USD 0.6252 / CAD)| Payable Due:October 1, 2002(Forward St+1 = USD 0.6271 / CAD) | | USD 60 Million в†’ CAD 95,969,290| USD 60 Million в†’ CAD 95,678,520| | Profit/Loss: 95,969,290– 95,678,520Profit: CAD 290,770| | Rate of Return: 290,77095,969,290 = 0.30% | | | Alternative 3: Arbitrage| Practicing CIA (Covered Interest Arbitrage) by borrowing CAD 96 Million to buy USD on April 1, 2002, and invest the USD for six months. At CAD interest rates of 2.70% for borrowing and 2.55% for depositing, and USD interest rates of 1.85% for borrowing and 1.65% for depositing.| Present:April 1, 2002 (Actual St = USD 0.6252 / CAD)| Payable Due:October 1, 2002(Forward St+1 = USD 0.6271 / CAD) | | Present Transactions| Payable Due Transactions| Borrow CAD 96 Million @ 2.70% p.a. Buy USD @ CAD 1.5995 / USD CAD 96 Million в†’ USD 60,018,756 Deposit USD 60,018,756 @ 1.65% p.a. Arranging six–month Forward Contracts @ USD 0.6271 / CAD| Earn interest return from USD deposits: = 60,018,756 Г— 0.01652 = 495,155 Withdraw all USD deposits with interest: = 60,018,756 + 495,155 = 60,513,911 ... Get more on HelpWriting.net ...
  • 39. Marketing Strategy Of Bombardier As A Canadian Based... Introduction Bombardier is a Canadian based public company operating in the sector of manufacturing planes and train in several countries. It was founded by Joseph –Armand Bombardier in 1942. They key people involved in the management are Pierre Beaudoin, Alain Bellemare and Lutz Bertling who are working as Chairman, CEO and COO of the company respectively. Over the years, this company has utilized its resources very well and followed a fantastic strategy of expansion. Most of the expansion was made using inorganic strategy of expansion by acquiring various companies already running in the industry which help Bombardier in quick rapid growth. This is quite clear as it has moved well in the value system from making of snowmobiles to planes ... Show more content on Helpwriting.net ... In an effort to achieve this, Bombardier Capital (BC) was formed in 1973 with a focus to provide services of loan, asset management and leasing throughout the Americas. In 2004, BC saw a major setback as Moody's credit evaluation section downgrades BC ranking to questionable credit quality from moderate credit risk. At this time, Bombardier decided to get rid of Bombardier Capital and sold this to GE Commercial Finance. Though, such downgrade has not affected its train and plane business sections. Since then, Bombardier's main focus is on plane and train segment and it is performing very well. International Marketing Mix Marketing is a way to achieve the best results using the right product in the right place using the accurate price at the correct time. A related concept of marketing is marketing mix. Marketing mix is a term which was first introduced by Neil Borden in order to promote and sell a product in the market. Later, it was refined by the Jerome McCarthy in the form of 4Ps. Since then, this 4Ps are the best tools to make a strategy to market and promote a product not just in the local market but in the international market as well. It is recognized as the most valuable model to use the strength of the company to exploit the opportunities in the market. Marketing mix model unfolds many hidden strategies which are impossible to identify. By identifying the hidden areas, Bombardier can make a strategy for each ... Get more on HelpWriting.net ...
  • 40. Swot Analysis Of Westjet Airlines Situation Analysis Introduction WestJet Airlines is a Canadian airline that differentiates itself with their low cost flights and exceptional customer service. The company's philosophy is "just because you pay less for a flight, doesn't mean you should get less." WestJet has been growing rapidly since 1996, however, they believe in growing responsibly by being cautious of their environmental and community impact ("About us", n.d.). As WestJet has a strong presence locally, our analysis will mainly focus on WestJet's domestic segment. Category/Competitors The Canadian airline industry has been steadily growing with a compound annual growth rate of 4.9% from 2012–2016. Within the industry, the domestic segment makes up 60.2% of the ... Show more content on Helpwriting.net ... The large difference of ASMs is largely attributed to the fact thatAir Canada focuses on both domestic and international flights while WestJet mainly focuses on domestic flights. This means while Air Canada may fly more kilometers than WestJet, the two companies are not so far off from each other when it comes to gaining customers (Statistics Canada, 2016). WestJet's differentiating point is their price–competitive nature. As a low–cost carrier the company values offering guests the same experience they may receive at higher–priced airlines. Air Canada has, however, also began operating a low–cost segment back in 2013 called Air Canada Rouge. WestJet is now looking to launch an ultra–low cost segment, "WestJet Swoop" in June 2018, targeting guests who are mainly concerned about getting from one location to another and less concerned about flexibility and convenience (Dormer, 2017). Customers WestJet's low–cost pricing advantage mainly attracts price–sensitive consumers within the middle to upper–middle class. These are individuals who can't afford the more luxurious flights and/or those who are just looking for a cheap but comfortable ride to their next destination. Travelers can conveniently purchase airfare through WestJet's website directly, through global travel websites (i.e. Expedia, Trivago), or through travel agencies. Within the airline industry, the main concern of consumers is the price as many airlines already offer similar features ... Get more on HelpWriting.net ...
  • 41. Qantas strategies Analysis Criterion Maximum Mark Your mark Research and analysis of company information 5.0 4.0 Considerations of constraints impacting organisational strategy 5.0 3.75 Application of relevant theories of strategy 5.0 3.75 Development of argument and applied critical thought 5.0 4.0 Written communication & referencing 5.0 3.25 Total marks /25 18.75 EXECUTIVE SUMMARY The report has discussesd and appliesd theoretical concepts and principles of strategic management into analyzing the environment context where to Qantas Airways Limited operates. It shows that, Qantas has a long history and sustainable development but needs to evolve in the global world. ization context, the company has to continue ... Show more content on Helpwriting.net ...
  • 42. пѓј In 2012, Qantas carries a 44.6% shares of the Australian domestic market and 18% of all passengers travelling in and out of Australia while the respective market segments for Jetstar are 20,7% and 8%. The chart below compares the top 10 international airlines. Figure 1: Top 10 international airlines in Australia (Source: ANNA– Airlines Network News and Analysis, 2010) пѓј 2.2. Resources and capabilities – Tangible resources: Establisheding in 1920, Qantas Group has grown gradually and remain one of the largest and strongest in Australian airways industry. During the last 5 recently years, Qantas has steadily expanded its operations by increasing number of aircrafts, passengers, employees and destinations all over the world. Its development can be demonstrated as data below: Figure 2: Qantas's resources from 2008–2012 пѓј (Adopted from Qantas data book 2012, see Appendix) Qantas's total asset increased from $19.7 billion in 2008 to $21.1 billion in 2012. More than half of its assets are from property, plant and equipment which book value at $14.13m at the end of FY2012. Intangible assets values at $610,000. пѓј At the end of FY2012, the corporation had a cash balance of $3.4 billion, and 308 aircrafts from three main suppliers Airbus, Boeing and Bombardiers. The Group has 12 Airbus A380, 30 Airbus A330, 60 Boeing B737, 36 Boeing B747 and 46 Bombardiers. пѓј – Intangible resources: Qantas has a strong reputation for long history ... Get more on HelpWriting.net ...
  • 43. Bombardier Porter's Five Forces The changing conditions in the environment can often affect an industry's competitive structure. This means the broader economic, global, technological, demographic, social, and political contexts in which the company operates, can have both direct and indirect impacts on Bombardier (refer to Appendix 2 for PEST analysis). By altering the significant constraints on the decisions of management, the environment poses many threats, as well as opportunities (refer to Appendix 3 for the SWOT analysis). As a manufacturer of transportation equipment, Bombardier is well positioned in the aerospace and transportation segments to capture long–term market opportunities in Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services (Bombardier Inc., 2014). These opportunities are expected to continue to rise due to accelerating urbanization and the rising need for mobility (United Nations, 2014). Furthermore, the state of the world economy and those of individual countries are key factors in the demand of air travel. ... Show more content on Helpwriting.net ... This uncertainty has led to Bombardier's struggling stock price and inability to release products in a timely manner. In order to cope with this uncertainty, Bombardier attempted to establish a favourable linkage with key elements in the environment by forming a formal strategic alliance. A $3.4 billion joint venture in Russia was created to reduce the uncertainty where both parties share the risks and costs of large projects. However, the economic sanction imposed by Canada on Russian companies, as well as the country's political situation and weak economy has led to a delay on the production of 100 jets and various cancellations. As CEO Pierre Beaudoin stated, "the conditions are not right at this point" indicating the dire effects of the environment on profits (The Canadian Press, ... Get more on HelpWriting.net ...
  • 44. Air Canada's Business Case Study Air Canada maintains several defined benefit pension plans, including domestic registered pension plans, supplemental pension plans and international pension plans. Air Canada's pension funding obligations may vary significantly based on a wide variety of factors. Any changes to these factors may result in an increase in Air Canada's obligations. Besides, deteriorating economic conditions or a prolonged period of low or decreasing interest rates may result in significant increases in Air Canada's funding obligations, which could result in a huge adverse effect on Air Canada`s business. Underfunded pension plans, failure or inability by Air Canada to make required cash contributions to its registered pension plans will harm Air Canada`s ... Show more content on Helpwriting.net ... In section 9.8, MD&A provides more detailed information on above mentioned issue. Current legal proceedings Air Canada is involved in or may be subject to legal proceedings which could negatively impact the company`s operations. Recently, Air Canada was involved in investigations by competition authorities relating to Air Canada Cargo division and mandatory retirement issues. MD&A explains the details of the court proceedings. External risks Fuel cost, airport user and air navigation fees, foreign exchange, Aeroplan, Star Alliance, key suppliers, regional carriers, economic and geopolitical conditions, competition. Fuel cost Cost of fuel is also one of Air Canada's largest operation costs items. Fuel prices have and may continue to fluctuate widely depending on many factors and, therefore Air Canada cannot accurately predict fuel prices. Due to the competitive nature of the airline industry, Air Canada may not be able to pass an increase in fuel prices to its customers by increasing its fares. In addition, Air Canada may be unable to appropriately or sufficiently hedge the risks associated with fluctuations in fuel prices. Furthermore, the impact of lower jet fuel prices could be offset by increased price competition, resulting in decreased revenues. Significant fluctuations in fuel prices could have a potential negative effect on Air Canada. Foreign ... Get more on HelpWriting.net ...
  • 45. Global Political Economy : International Business School Country Economic Analysis Canada Research Paper Submitted to: Professor Mohtadi In partial fulfillment of the MBA course Global Political Economy Hult International Business School Submitted by: Sourav Adhikari – Francesco Campione – Itzeen Pla – Shalini Raina – Juan Diego Rojas – Jesus Verde August 4, 2015 Boston, Massachusetts Table of Contents Executive Summary3 Macroeconomic trends.4 Canada's exchange rate and trade policies4 Exchange Rate5 Trade Policies6 Canada's monetary and fiscal policies8 Monetary Policy8 Fiscal Policy8 Canada's strengths.9
  • 46. Canada's Weaknesses11 Canada's opportunities for growth.11 Canada's Threats12 Exhibits14 Executive Summary For the last 10 years, the Canada's real GDP is increasing. This is not the only sign of a growing economy; the unemployment rate is decreasing as well. Foreign trade heavily sustains the Canadian economy; it accounts for 45% of the GDP. Canada is an open trade country, and thus its currency – the Canadian dollar – is a floating currency. After 1998, Canada also changed its intervention policy deciding for a discretionary intervention in only exceptional circumstances. The objective of Central Bank of Canada is to preserve the value of the currency by keeping down and stable the inflation rate. Canada has multiple strengths. Its main strengths lie in natural resources, diversified economy, high quality public education and political stability. Canada has also the most highly educated ... Get more on HelpWriting.net ...
  • 47. can long haul low cost airlines be successful Research in Transportation Economics, Volume 24, Issue 1, The Economics of Low Cost Airlines, 2008, Pages 61 –67 Can long–haul low–cost airlines be successful? Dr Peter Morrell Cranfield University, Beds MK43 0AL, UK Phone: +44 1234 754242; Fax: +44 1234 752207 p.s.morrell@cranfield.ac.uk Abstract A key question is whether the very successful, largely short–haul LCC business model can work over long–haul sectors? This paper compares the cost and other advantages of LCCs and evaluates how far they might be applied to long–haul sectors. It is estimated that cost advantages might be much lower than the 50–60% on shorthauls. Other factors such as the adoption by network airlines of some LCC features and their likely... Show more content on Helpwriting.net ... Ryanair's and AirAsia's announcement of their intentions to move into long–haul markets has added to interest in the potential for such services. A previous paper addressed the degree to which the low–cost model could be applied to long–haul operations (Francis et al, 2007). That study (based on 2003 data) concluded that a low–cost long–haul operation could only achieve a 20% cost advantage over network carriers compared to 50% on short /medium haul flights. Their definition of long–haul flights will also be adopted here: any sector that cannot be operated by an 3 unconverted A320 or B737, the workhorses of the low–cost business model to date. This effectively means flights of six hours or more.1 The head of Boeing's commercial aircraft division thought that 'there might be a market for low–cost transatlantic flights; any further and creature comforts will be required' (Morgan, 2007). However, existing long–haul Y–class cabins offer seat comfort that is scarcely better than many short–haul LCCs. Furthermore other in–flight amenities would certainly be available for purchase on a long–haul LCC. This paper examines the potential for long–haul LCCs, first by reviewing previous proposals, looking at costs and competitive reactions before assessing market stimulation and the need for feed. Regulatory ... Get more on HelpWriting.net ...
  • 48. Westjet Essay WestJet Strategic Audit by: Tanya Witherington #3136712 Abdullah Saleh #3157594 Tyler Ethridge #3084252 Natasha King #265841 Yao Yao #3111635 Jaiqi Lu # BA 4101March 21, 2005. Daniel DoironUNBSJ West Jet I. Current Situation A. Current Performance WestJet owned 28% of the domestic air market share in 2004 vs. 25% in 2003. For the year ended December 31, 2004, un–audited Revenue was $1.06 billion up by $196.4 million over 2003's revenue of $863.6 million. However, the airline reported a Net Loss of $17.2 million, down from Net Earnings of $60.5 million in 2003. In 2004, West Jet's share... Show more content on Helpwriting.net ... Each guest will have their own TV with 24 channels of live Bell ExpressVu satellite programming from the comfort of their leather–covered seat. 4. Policies Implied: WestJet views its employees as its most valuable asset. Therefore, it aims to ensure that employees' work experience is fun, challenging and rewarding. Encourages employees to interact positively with customers to try to earn repeat customers. Offer low fares and still maintain a
  • 49. high–quality distinguished product that offers friendly service and a comfortable and entertaining flight experience. Maintain on–time flight operations in a safe and efficient environment. Free snacks and non–alcoholic beverages on flights. Intelligent use of technology. Continual improvement to the quality of its product by offering value–added initiatives such as: o Loyalty incentives (Airmiles) o Improving the comfort, convenience, and enjoyment of its flights. o Growing its flight route network with increased frequency for increased convenience, enhanced legroom and commencement plans for its live–feed satellite TV programming. Stated: Environmental Policy: Pro–actively maintains its standard as a leader of environmental policy in the airline industry. Social Policy: Committed to providing a friendly, safe, equitable, and rewarding work environment for its ... Get more on HelpWriting.net ...
  • 50. How Does Coca Cola Define Strategic Management Defining Strategic Management The definition of strategic management continues to transform over time which coincides directly with the unremitting modernization of business. Strategic management is understood as the implementation of a strategy statement to establish competitive advantage and innovation within a business or industry. There is no concise, comprehensive definition of strategic management, but there are common themes that assist in understanding strategic management today. Effective strategic management is implemented from top management; when management demonstrates a clear knowledge of their strategy statement, their subordinates are much more efficient in accomplishing their objectives. Strategic management can be ... Show more content on Helpwriting.net ... Coca–Cola has been atop the soft drink market since 1898 when it became a multinational corporation. Since its inception, Coca–Cola has also been instrumental in strategic management; in 1899 Benjamin Thomas and John Whitehead launched a bottling franchise that created over 1,000 bottling machines within 20 years (Williams, Kevan, and Amason, 2010). Coca–Cola continued to develop their slogan, launch new beverages, and open overseas bottling plants to guide expansion. Each of these developments was a direct result of strategic management. Coca–Cola continued to evolve as consumer needs developed; they acquired companies that offered healthier alternatives to soda such as Odwalla and Mad River Traders. Southwest Airlines and Coca–Cola exemplify the careful strategic management qualities that propel them towards a higher market share. It is imperative for students, researchers, and investors to identify the strategies that high–performing companies adopt to apply like–minded strategies or tactics to other industries or businesses. Southwest Airlines and Coca–Cola demonstrate the need for perpetual strategic management. "Strategy unifies the various functions of a firm under a common purpose, blending together in the case of Coke a ... Get more on HelpWriting.net ...