Air Canada: Where to?

It’s been a month since the last article on Air Canada was posted, from negatives to its positives to our third installment which is more about its Management.

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As we know, the airline company has gone through a lot, of course including financially. Though government regulations helped Air Canada dominate the Canadian airline market in the 70s, inevitably deregulation which leveled the playing field was also followed by modernization and policy adjustments.

Here are some notables on today’s Leadership.

Integrated Leisure Group. The combining of Air Canada Vacations and its new LCC (low cost carrier) may bring in order and profit if the group could  dissolve whatever negative Vacations may have had. Otherwise, the LCC would be carrying much of the load to sustainability.

Pension Issues. Funding may have found some compromise, however, management here was a bit “wanting” – particularly from the lack of foresight to the inept formulation of the plans. It simply failed to see what was coming.

Executive Pay. The rise in pay of the airlines’ top executives amid continued losses that drove share prices down caught the eyes of many last year. This was demoralizing despite some positives they may have recorded since it was at the time when employees were also having benefit issues.

Low Cost Carrier. Obviously, this would be the answer to Air Canada’s financial difficulties – the Rouge.

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Regardless of fuel alternatives and prices, we assume that they have carefully studied critical factors such as people movement as well as the health and efficiency of the planes to be used; thus, if Air Canada could position itself well in high traffic areas and not just adding routes then it would be ready for the long haul.

Revenue Increase. Companies do benefit from cost cutting measures; but if this move is your “bread-and-butter” then you would eventually fall short of your goals.

In all these, Leadership should just make sure that everybody’s rightfully filled.

What’s your take?

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