The paper “ Competitive Position of Air Canada, Competitive Environment, and Core Competencies” is a breathtaking variant of the case study on management. The fall and rise of Air Canada remain the last two years, one of the most compelling business stories. Currently, the company faces a better potential future after the outcome of court protection in 2003. It experienced a reduced wage bill, hugely reduced debt, a reduction in the plane type numbers of its fleet. There are considerable assets boding well for its future given the position in the global Star Alliance and strategic perspective of the international network.
The frequent flyer program of Air Canada’ s is pegged on marketing. Air Canada has a great identity and image in Canada and abroad and so are the fans of WestJet and CanJet. However, Aeroplan is a natural choice for those traveling for frequent business trips, the overseas business classes under a wide range of destinations. So for their strong position in Canada, it is Air Canada’ s to lose (Gillen et al. 2008). The reputation of the company had been tainted by lost baggage, but the focus has been on technology and better quality.
On the overall, the business has won on customer experiences such as check-in and out of terminals, simpler fare structures, 24 hours a day over the internet ticket purchase and more destinations for business travelers. The business model arena does not describe the gap between Air Canada and WestJet since the former has a competitive edge on the essential points of human contact such as ground service staff, flight attendants, and pilots. Recent Air Canada flights exhibit truly excellent service, neck-in-neck competition with WestJet, and consistent delivery of excellent service experience.
The edge is no longer a renewed business model, fares, market routes, lower operation cost, or the ‘ right’ assortment of planes. There is a looming uncertainty of massive layoffs, management, and union negotiations on wages alongside other concessions (Goldstein, 2003). The legacy and heritage of Air Canada still remain in the old fashioned Canadian government bureaucracy. However, as business model Air Canada takes to the periphery, focus on the customer will be the tipping point for the airline.
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