Air Canada: Recommendations and Action Plan

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Table of Contents

Recommendations

Bankruptcy protection- the airline used this strategy to deal with financial problems caused by operational challenges which are beyond their control.
Capacity – its is vital for airline operators to plan their capacity to minimize cost. They should maximize usage of their planes rather than increase their fleet size.
Contend with competitors- regardless of operational challenges, the airline should push on to stay in the market.
Negotiating with governments- Air Canada should negotiate with governments to have some restrictions reduced or abolished.
The airlines should try to schedule their airlines in a way such that the weather will have less effects on them to avoid flight delays.

Recommendations

Following financial crisis in 2010, the airline controlled its finances by creating new agreements with suppliers and credit providers.
Canada airline was forced to launch a low price Tango fares to compete with Westjet who host smaller players in a low budget segment.
To cut costs and compete with international airlines, Air Canada has forged alliances with other operators for example it’s the founding member of star alliance.
Air Canada entered into an agreement with EU governments. Restrictions for Air Canada were reduced. Following this it launched five direct airline services to major cities in Europe.

Action Plan

Due to challenges in the environment, Air Canada had to make strategies in order to succeed. They came up with recommendation to ensure that they minimize losses.
The recommendations were implemented and some of these include: signing deals with governments, forming alliances with other operators and making financial deals with their suppliers and credit providers.

Summary