...AIR CANADA Introduction: Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990-1993, entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27 partners headquartered in Montreal. Air Canada’s mission was to connect Canada and the world. For this it followed an international growth strategy. Making partnerships with Lufthansa and united/continental, helped its growth strategy and connection mission. To reach the goals it followed a strategy involving engaging with customers, mainly focusing on passengers and products. Air Canada mainly depends on IT for their activities. The IT department of Air Canada was made of both recent applications and the back-end applications. In 2007, Air Canada introduced electronic boarding passes for the passengers and in 2009 it introduced iPhone and blackberry application which allows passengers to track flights, and also introduced a rebooking tool allowing the passengers to rebook the flights in case of emergency. For this in 1994, Air Canada made a seven-year contract with IBM. Dual strategic objectives and challenges: Along with IBM Air Canada selected telecom as its provider for telecommunication In 2003 Air Canada started to follow multiple-vendor strategy to get best services available in the market and to reduce cost. For that it selected operation SYS, a company which provides several applications’ which Air Canada need. But, dealing with multiple vendors...
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...Case: AIR CANADA TAKES OFF WITH MAINTENIX Air Canada is Canada's most prominent airline. It is the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market, and in the international market to and from Canada. The airline serves over 33 million customers annually and provides direct passenger service to over 170 destinations on five continents. But the company's information systems had plenty of room for improvement. When Air Canada technicians worked on planes, they used several different legacy software packages installed over the past 15 years. The systems weren't able to interact with one another or with finance and inventory systems. The inefficiencies of these systems were costing Air Canada the time of its engineers and money that could have been used on maintaining its planes, instead of needlessly maintaining excess inventory. Air Canada turned to Mxi Technologies for help in addressing these problems. Mxi is reknowned in the airline industry for its Maintenix software package, which provides integrated, intelligent aviation MRO (maintenance, repair, and operations) software to aviation organizations hoping to improve productivity. The benefits of Maintenix that interested Air Canada were enhanced visibility of fleet-wide data, timelier decision-making; support of its currently existing business model, and increased operational efficiencies. Maintenix provides a system platform that is accessible via the Web...
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...Hamilton, section 51 | [West Jet: An analysis of Non-Market Strategies] | | Contents History 3 Nonmarket Environment 3 Public perception 4 Private politics 5 Public politics 6 Court or regulatory scrutiny 7 Integrated Strategy 8 Leaders’ Responsibility 9 Conclusion 10 Bibliography 12 History West Jet was founded in 1996 by 5 entrepreneurs who believed they could succeed as a low-cost carrier in the western Canadian market. With a fleet of only three Boeing 737 aircraft and just over two-hundred employees, West Jet served Calgary, Edmonton, Kelowna, Vancouver and Winnipeg. West Jet went public in 1999, allowing for greater access to capital and potential for growth. In 2000 market share was expanded to eastern Canada. By 2004 West Jet began to access the U.S. and in 2006 started international flights. West Jet continues to grow into new markets and is now in position to become a major competitor among international carriers. The low cost “no-frills” service and corporate culture have been the praise of West Jet success. To use market share as a measure, West Jet began with none and now has approximately 33% Canadian market share with plans for this to increase. Nonmarket Environment West Jet has developed a very strong market position in a short period of time. They certainly have a strong marketing strategy and low-cost structure that promotes strong margins. The non-market environment can nullify any market advantages such as price and product attributes...
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...Mini Project 1 WestJet Accepts Blame for Spying on Air Canada The issue of the case is that WestJet spied on Air Canada -- one of the biggest airline companies to obtain confidential information. The competition in the airline market is fierce. As a competitor, WestJet tries to match the competition on the pricing, scheduling, and routes. In order to create a competitive advantage, WestJet gathered business information unethically from Air Canada’s website. For example, Westjet collected data to identify booking trends, so they can decide which route is more profitable and to start a new route. Also, if WestJet knows the buying habits of Air Canada, it will help Westjet to develop a pricing strategy to maximize their profits. In order to get these valuable and accurate information and to be more competitive with lower costs, WestJet chose to detect its competitor via the website. Information collecting helps WestJet to grow its business. To deal with the rivalry of existing competitors, Westjet needs to provide a product or service that their customers place a greater value on than similar offering from a competitor. For this organizational objective, WestJet needs to undertake some actions to gather these information first. To deal with the issue, Westjet gained access to the Air Canada Employee website to steal confidential data by using a former Air Canada employee’s account and personal password. Moreover, in order to be more effective, one Westjet employee...
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...ANNUAL REPORT 2013 1. HigHligHts Fourth Quarter Full Year $ Change 55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0 The financial and operating highlights for Air Canada for the periods indicated are as follows. (Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan amendments...
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...Air Canada is Canada’s largest domestic and international full-service airline and the largest provider of scheduled passenger services in the domestic market, the transborder market and each of the Canada-Europe, Canada-Pacific, Canada-Caribbean/Central America and Canada-South America markets. Passenger transportation is the principal business of the Corporation and, in 2009, represented 87% of its total operating revenues. During 2009, Air Canada, together with Jazz, operated, on average, approximately 1,331 scheduled flights daily and carried almost 31 million passengers. In 2009, Air Canada and Jazz provided direct passenger air transportation to 156 destinations and, through commercial agreements with other unaffiliated regional airlines referred to as tier III carriers, to an additional 11 destinations, for a total of 167 direct destinations on five continents. The Corporation’s primary hubs are located in Toronto, Montreal, Vancouver and Calgary. Air Canada also operates an extensive global network in conjunction with its international partners. Air Canada is a founding member of the Star Alliance Network, the world’s largest airline alliance group. The Star Alliance Network includes 26 member airlines. Through its strategic and commercial arrangements with Star Alliance members, Air Canada is able to offer its customers access to approximately 1,077 destinations in 175 countries, as well as reciprocal participation in frequent flyer programs and use...
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...Customer service relationship. * No frill strategy. * WestJet was also the first Canadian airline to offer live seatback television (CCNMattews, 2005) * 33% of domestic market * Top 100 employees * Friendly workplace * Treat passengers as “guests” * Customer friendly culture * High aircraft utilization. * Holiday package (Jang, 2006) * Employees are owners * Workplace environment is "fun, friendly and caring" (Gerstel, 2011). * Low maintains and training cost. * Increase its share of the Canadian air-travel market. (Gignac, 2006) * More use of man power resources * Focus on cost leadership and bench marketing. * Environment friendly. * Have Boeing 737 jet aircraft continue its growth from 1996 to till today. * MasterCard, joining the AIR MILES Reward Program. (PR Newswire Association LLC Apr 23, 2004)1 WEAKNESS * Intense competition from air Canada * Seasonality * Geographic dispersion * Increased dependence on passenger revenues * Too much dependence on business ravel market segment. * High commission to traveller agents. * Domestic airline * Limited viable expansion in new destination * No exposer in regional and international segments. * Growth obstruction to retain its market position. * Obstruction to retain its position as market leaders. * WestJet ordered to pay compensation for domestic luggage * WestJet...
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...wrote this case under the supervision of Professor Gerard Seijts and Professor Jean-Louis Schaan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-05-22 In early 2014, Ferio Pugliese looked back on his turbulent first nine months as president of WestJet Airlines Ltd.’s (WestJet) new regional air service Encore. Officially launched in Western Canada in June 2013, this venture represented the company’s most significant organizational change in its 18 years of dramatic growth and was billed as WestJet’s “second coming” — hence, the chosen name Encore. The process of expanding the airline’s fleet to include smaller, short-haul aircraft servicing smaller destinations throughout Western Canada had not been...
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...C.D. Howe C.D. Howe was a businessman and politician who was responsible for many different innovations that were introduced to mainstream Canada from the start of his career in the 1920s as an engineer until the time of his death in 1960. Where he proved himself worthy was on the public stage during all the wars Canada was involved with during his lifetime. In WW1 he helped innovate the grain industry by helping to introduce grain elevators in the prairies which was essential to the home front war efforts. In WWII he was responsible for overseeing all industry production of equipment and munitions which was an essential role in the federal government at that time and it was a very demanding position with a lot of responsibility. After the ally victory of the two World Wars he then contributed again to the war efforts of the Cold War. He played a contributing factor to developing Canada’s nuclear industry in case of an upcoming attack as the Minister of Defense Production. On top of his war efforts he was also responsible for the establishment of a number of crown corporations such as the Canadian Broadcasting Corporation (CBC), Trans-Canada Airlines and the oil pipeline which extends from Alberta to central Canada. It was not necessarily just Howe’s war efforts which qualify him for a lasting place in Canadian history but rather his ability to fuse both government and business which benefit all stakeholders involved. His capability to facilitate very complex and accurate...
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...C.D. Howe C.D. Howe was a businessman and politician who was responsible for many different innovations that were introduced to mainstream Canada from the start of his career in the 1920s as an engineer until the time of his death in 1960. Where he proved himself worthy was on the public stage during all the wars Canada was involved with during his lifetime. In WW1 he helped innovate the grain industry by helping to introduce grain elevators in the prairies which was essential to the home front war efforts. In WWII he was responsible for overseeing all industry production of equipment and munitions which was an essential role in the federal government at that time and it was a very demanding position with a lot of responsibility. After the ally victory of the two World Wars he then contributed again to the war efforts of the Cold War. He played a contributing factor to developing Canada’s nuclear industry in case of an upcoming attack as the Minister of Defense Production. On top of his war efforts he was also responsible for the establishment of a number of crown corporations such as the Canadian Broadcasting Corporation (CBC), Trans-Canada Airlines and the oil pipeline which extends from Alberta to central Canada. It was not necessarily just Howe’s war efforts which qualify him for a lasting place in Canadian history but rather his ability to fuse both government and business which benefit all stakeholders involved. His capability to facilitate very complex and accurate...
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...imports * Maturing categories, products, or services * Doesn't have any shops * Lawsuits | WESTJET Strengths * 36% and 11% share of the Canadian domestic and International transborder market respectively * Cheerful, lively and highly motivated employees also known as WestJetters who often carried out tasks that were outside their job * Absence of a union. Instead, WestJet had a Pro-Active Communication Team (PACT), an employee association * Irreverent corporate culture. Work culture was fun, casual, friendly and customer oriented. * Low, attractive and competitive fares. Customers also had an option of advance flight booking * Upbeat commercials and customer oriented advertising themes * Short-haul air services which served as an alternative to surface travel * Route structure designed to meet the needs of customers which enabled them to fly point to point and on non-stop routes * Operated evening flights to serve a market that was not as time sensitive and which could be served better by evening flights * A variety of sales channels through...
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...2009. Leaders of the company believe that the core to their success is care.” Handle with care” is the company credo and not only that. It is everyday reality and the way how the company does the business. Other two key elements contributing to the success are low–cost structure and company’s culture, which is unique in the airline business. WestJet was awarded four times as one of Canada’s Most Admired Corporate Culture and in 2010 survey as one of the best employer in Canada. Company History History of the company started with successful businessmen Clive Beddoe from Calgary. In 1994 he bought Western Concord Manufacturing Ltd., which brought him to the flying business. He bought small cabin plane and flew it himself, in order to save money on company’s executives’ high air travel expenses. Later he leased the plane to other businesses via local charter operation Morgan Air Service Co Ltd.Beddoe saw an opportunity in offering cheap flights which could afford everyone. Tim Morgan, the president of Morgan Air Service Co and two others investors liked Beddoe’s idea about starting their own discount airline. Together they approached other investors and in 1995 the accumulated more than $8, 5 million dollars for starting new airline. The company was officially founded in May 1995 under name West Jet Airlines Ltd. In February 1996, they started flight operation with three aircrafts and 220 employees, offering flights to Vancouver, Calgary, Edmonton, Kelowna, and Winnipeg. Since...
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...largest airline in Canada, the first being Air Canada. The Airline has its headquarters in Calgary, Alberta, Canada. It is run by Gregg Sarektsky, who is the CEO and President of the airline and Clive Beddoe, who is both the Chairman of the board of directors and a co-founder of the Airline. West Jet Airlines employs roughly 10,000 employees as of August 2014. The Airline was founded by Clive Beddoe, David Neelman, Mark Hill, Tim Morgan and Donald Bell. WestJet Airlines is a non-unionized company and is not part of any other airline alliance. It however has a subsidiary- WestJet Encore. The Airline’s first flight was on February 29, 1996. (Arnusch, 2013) The Airline in its early starting years had all its routes in Western Canada, and this is where its name is derived from. Between 1996 and 2001, the airline experienced changes in leadership and shareholding. The Companies changed its CEOs From Clive Beddoe, to Steve Smith in 1999. As of 1999, the company made its first Initial Public offering. Steve Smith was replaced by Clive Beddoe again in 2000 until 2007. Later the company rose, expanding its destination flights to include more international flight. In terms of domestic shares, the airline rose from 7% in the year 2000 when, Air Canada was at 77% to 38% in the year 2009 when Air Canada was at 55%. The airline is clearly rising against its main competitor. (The Globe and Mail). The Airlines main goals as of 2009 were to reach a market share of 40% in Canada. (The Globe and Mail...
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...History Canada was seeing as one the countries that are industrialized in the 1930s but didn’t have a national airline for the country but they did have a bush airline that were regional in the country at the time and the Canadian Pacific held part ownership in the Canadian Airways (CBC) The regional airlines were serving the transported mail and mining communities but the airline didn’t provide a service between the Atlantic and pacific oceans which made it hard for people to travel to these areas. In 1935 Mackenzie King came into power and he created the Transport department and Clarence Howe was appointed to be Air Canada architect and be the minister (CBC). Clarence Howe wanted to the airline to be put under the control of the government and he wanted it initially to be private enterprise to have a role in it. In 1936 Trans Canada Air has been legislated on this year and it was a Subsidiary of CNR and then it was turn to be owned by the federal government of the country (CBC). The Trans Canada Air lines have started their airline with only five million dollars and this help pay for the three airplanes that it was from the Canadian airways and they have hire executives that are from the U.S. airlines(cbc). In 1937 the Trans Canada Air has set forward on its inaugural flight and the flight between going to Seattle and Vancouver round trip would only cost $14.20(Cbc). Canadian Pacific gave an idea to the government for Canadian airways that it...
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...Canada 3000 was once considered to be the main alternative airline to Canada’s two national airlines, Air Canada and Canadian Airlines. They offered a comparative advantage to other airlines by offering low fares. In 2000, Canada 3000 decided it wanted to be in the same field as the national airlines, and attempted rapid expansion by acquiring Royal Aviation Inc. and Canjet Airlines. Their expansion strategy was to increase their market by purchasing already existing companies. This growth added many financial problems, resulting in major losses. This led to the companies bankruptcy as they were unable to cope with the new problems caused by the September 11th, 2001 Terrorist Attack. WestJet on the other hand, has become a major competition to Air Canada by sticking to their plan. WestJet’s business strategy was to be the lowest cots operator in the market specializing in short non-stop flights. Another key element of their business strategy which ties into their growth strategy is that they want maximum use of their aircrafts. Unlike Canada 3000, WestJet had a planned growth strategy that the company followed. They planned to grow by adding new frequently flown routes while maintain the already existing ones. They also hoped to initiate their inter-border business by expanding into the United States. A more steady expansion plan has allowed them to expand into a competitor against Air Canada. This is just one example of the competition Air Canada has to deal with. The...
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