Global environment of business - titled: Air Canada- Risk Management - Case Study Example

After the 9/11 attacks in New York, air Canada was faced with massive financial problems which affected its operations and resulted into being placed under receivership to protect it from creditors. This was the beginning of the problems at air Canada as the company’s ability to retain its employees and manage the large workforce was hampered. As a result, a number of employees were laid off and this not only affected its reputation but opened it to stiff competition from its close competitor West Jet airlines.

Despite the massive size of the company and the significant resources that it controls, the company has been faced with a number of challenges, with some emanating from the turbulence in the industry. Air Canada is a government owed airline that was established as trans Canada airline following a successful legislation in 1936 and established as part of the Canadian national railway. The desire to link the different cities in Canada and beyond necessitated the creation of Trans Canada airlines and the airline began by plying the Atlantic and pacific coast in Canada.

Beginning with few charter like planes, air Canada operated from Winnipeg as its headquarter until 1949 when it relocated to Montreal. However, in 1964, a private motion was introduced in the Canadian parliament for the change of the company’s name to air Canada to represent the pride of the Canadian people in the globe. Following the September 2011 terrorism attach in New York, air Canada was faced with massive financial challenges that affected the industry. This resulted into the reduction in the total revenues of the company resulting into interference in their operations and management.

To cushion it from creditors and other liabilities, air Canada applied for creditor protection in April 2003 as it worked towards regaining its lost glory (Bisbey, 12). Following an agreement with Deutsche bank, air Canada recovered from bankruptcy and regained full