Air Canada's Strategy Plan Suggestions Essay

1314 words - 6 pages
Air Canada continues to build strong strategic plan in order to strengthen their competitive position in the market and fulfill the vision of its stakeholders, shareholders, customers and employees. They should adopt the following strategies in order to optimize their business:
• Cost transformation and Revenue Enhancement
• International expansion and connecting traffic
• Engagement with customers
• Foster positive change to its culture
Cost transformation and Revenue Enhancement
Air Canada should pursue revenue generating and cost reducing opportunities by investing in new technology, implementing effective and efficient projects and concentrating on employee productivity through contract negotiations and continuous improvement that goes hand in hand with its long term goals. The announcement of the launch of “Air Canada RougeTM “ will aid as Air Canada’s competitive advantage with the “new low-cost leisure airline”. It will help increase its revenue, lower its costs and enhance its profits. Also, to better manage its fleet, they should soon implement the “new five-year collective agreement with the Air Canada Pilots Association (ACPA)” that can help the airline increase its productivity and better its competitive position while maintaining a low budget. Air Canada is expected to implement a new “revenue management” that will help optimize its profits based on passenger revenue.

International Expansion and connecting traffic
Air Canada should aim at expanding internationally, growing its market share and increasing its traffic through international gateways such as the U.S. Air Canada is a widely recognized brand and holds a strong position in the market. They should promote the brand as a national identity for Canadians. The launch of “Air Canada RougeTM “ will operate the new routes such as “Venice, Italy and Edinburgh, Scotland” in order to compete with its competitors such as West jet. It should also create a joint venture agreement with “Egyptiar, South Africa Airways, Turkish Airlines and Aer Lingus”. Also, the regional flights from Toronto, Montréal, Vancouver and Calgary to the United States to Asia and Europe will provide competitive advantage to the customers. The company should partnership with other firms so as to increase their customer revenue. For example, it has recently partner shipped with Aeroplan program in order to allow its customers to earn and redeem “Aeroplan® Miles with Canada's leading coalition loyalty program”.
Engaging with customers
Air Canada should engage with its customers by providing premium products to them. The company has received the “Best In-flight Services in North America” and “Best North American Airline for International Travel” in Business Traveler’s “Best in Business Travel” award program, for a five consecutive years. And should continue to do so. Also, it is the only North American Airline according to the...

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