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Environmental Analysis of Air Canada

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The aviation industry is very volatile. As we have learned from the posts from CBC done on Air Canada since 1991, it has been a battle for the organization. Many factors have influenced Air Canada's position in the market.
Political factors that Air Canada has always dealt with is the fact that it is Canada's national airline. Out of the $160 million dollars the industry received, Air Canada received $100 million (CBC). It seems Air Canada is sightly shielded from the marketplace as the minister of transport believes it should be the national airline carrier. In 1991 (check!) the merging of Canadian Airlines and Air Canada showed that although government tried to split resources for both Canadian airlines, they could not offer enough support for both.
During the economic downturn, it became a luxury to fly. The recession had a major impact on the amount of unnecessary flying the public did. In conjunction with soaring fuel costs, it was difficult for Air Canada to keep their prices low (coupled with the recession, that does not equal more flying). Global Health Threats (such as SARS) and terrorism (9/11 and various scares) does not translate to customers wanting to jump on planes. Also, as the media does not portray Air Canada accurately (as per last video) and prices are exactly accurate across all airlines (with meticulous monitoring) there has to be another way for Air Canada to differentiate itself.
As mentioned earlier, the sociocultural attitude towards Air Canada is not positive. Though this may be media influence, many Canadians do not think highly of this Air Carrier. (though video states they are the best paid Air Carrier).
A key to withstanding competitive threats is technology. In the case of airlines in general, technology itself is a threat. Though Air Canada is acquiring new, smaller jets (CBC) and now partially selling the Jazz carrier to gain more funds, it is technology that has people flying less. Customers are no longer flying for business since technology has made it possible to do business via videoconferencing and telecommuting.

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