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Being a founding member of Star Alliance transportation network and with a vision of building loyalty through passion and innovation, Air Canada is the biggest comprehensive service airline and the largest scheduled passenger services provider in the Canadian market, Canada-U.S…
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Business Introduction Being a founding member of Star Alliance transportation network and with a vision of building loyalty through passion and innovation, Air Canada is the biggest comprehensive service airline and the largest scheduled passenger services provider in the Canadian market, Canada-U.S. trans-border market and the international market linked to Canada. Air Canada ha other affiliated partners that enable it to serves close to 35 million passengers every year. It also provides direct passenger service in five continents and to more than 175 destinations. However, there are still many challenges that limit the operations of the airline.
Political Factors
There are government policies that are not clear enough to play a role of reducing the conflict between the air transport industry and its employees. These conflicts are one major setback facing the airline and they mount pressure on the government to formulate universal policies that will benefit the industry and its players. According to Hale (177), the ability of businesses to create employment, taxes for government projects and to strengthen the economy has made government to be concerned and take leading role in setting policies that affect businesses. These policies should empower the organizations to grow even more.
Economic factors
The overall economy and economic growth of Canada has direct impact on Air Canada’s operations and success. According to Bühring-Uhle, Kirchhoff and Scherer (7) universal business exchanges consider the value of the currency of the other parties in the trade. This is considered so as to place all parties involved in a successful path rather than suffering losses caused by indifferent exchange rates.
Inflation and unpredictable exchange rates makes it hard to conduct future prospects and plan effectively. Taxation rates for the aviation industry increases the operation costs, which are then pushed to the consumer as they are charged high fees for flights. Money-based forces such as the expensive maintenance costs of the airlines and competition from other airlines increases the financial challenges of Air Canada.
Social Factors
According to Jain, Trehan and Trehan (237), changes in the social behavior can mainly affect on an organizations products and the state of mind of the customers to react to various products of Air Canada and to utilize the services at hand. It is thus very important for Air Canada to be as much focused on improving its services on a regular basis so as to enjoy brand loyalty from its customers, and create understanding of its renewed focus to serve clients and satisfy their needs. These changes in the social behavior can be cultivated to benefit the airline through provision of up to date services and using the technology in the field so as not to be left behind and become redundant.
Conclusion
It is very important for Air Canada to implement innovative strategies so as to be able to achieve its goals. This can be fast tracked if the airline constantly evaluates and reviews its services to ensure they are up to date with the best practice in the industry. Air Canada should implement its services and operations with a clear desire to provide maximum customer satisfaction so as to sustain its competitive advantage. Hence it is very important for Air Canada to really stay connected with the social developments that mainly tend to carry the day.
Works Cited:
Bühring-Uhle, Christian, Lars Kirchhoff, and Gabriele Scherer Arbitration and Mediation in International Business Alphen aan den Rijn (Netherlands: Kluwer Law International, 2006. Print.
Hale, Geoffrey E. Uneasy Partnership: The Politics of Business and Government in Canada. Peterborough, Ont. [u.a.: Broadview Press, 2006. Print.
Jain, TR, Mukesh Trehan, and Ranju Trehan Business Environment Cleveland, Ohio, USA: FK publications, 2015. Print. Read More
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