Air Canada Service Airline Performance - Assignment Example

There are government policies that are not clear enough to play a role in 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 strengthen the economy has made the government to be concerned and take a leading role in setting policies that affect businesses. These policies should empower the organizations to grow even more.

The overall economy and economic growth of Canada have a 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 to place all parties involved in a successful path rather than suffering losses caused by indifferent exchange rates.

Inflation and unpredictable exchange rates make it hard to conduct prospects and plan effectively. Taxation rates for the aviation industry increase 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 increase the financial challenges of Air Canada.

According to Jain, Trehan, and Trehan (237), changes in social behavior can mainly affect an organization's 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 focused on improving its services regularly to enjoy brand loyalty from its customers and create an understanding of its renewed focus to serve clients and satisfy their needs. These changes in social behavior can be cultivated to benefit the airline through the provision of up-to-date services and using the technology in the field so as not to be left behind and become redundant.

Air Canada needs to implement innovative strategies 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 to sustain its competitive advantage. Hence Air Canada needs to stay connected with the social developments that mainly tend to carry the day.