Question

1. When Air Canada emerged from bankruptcy protection in 2004, its top management decided to replace some of its older planes with new ones. In particular, several relatively small Embraer and Bombardier planes (with fewer than 90 seats) and several large Boeing 777 and 787 (with more than 200 seats) were ordered. These are much fuel efficient than the planes they replace.

  However, Air Canada operations are still not as low as WestJet’s. An available Seat Mile costs Air Canada 16-17¢ whereas it costs WestJet 11-12¢. Recall that WestJet is non-unionized, runs only one type of plane (Boeing 737 which seats 100-150 passengers), and is financially stronger.

1. Discuss five pros and cons of Air Canada’s decision.
2. Identify five current trends in operation management and discuss how Air Canada can use them to improve their operations.

Answer 1

Answer a :

Prons

1:Better fuel efficeny to cost lower bills to Air cannda

2:Better customer experience with the use of new and advanced plane

3:Better Brand building and news making with decision

4: Increase overall operational efficiency by lower fixed cost related to airline operation

Crons

1: Huge expense incurred causing a dent in the balance sheet

2: The delivery time taken for the planes

3: Boeing 777 and 787 techincal limation or associated problems.

4: Current position of aircanda from aspect like finance , Labour, opeational styles etc are not favorable .

Answer b:

Operational trends Aircannda can adopt to improve operations :

1: Standardization of all operational items (Example airline should be using only model of airplane help save operational cost). .

2: Best optiomal route selection and more time in air in the optimal selected route ( your airline should be air in 100% of time if possible in best best selected route ,parked airline reduce operational efficiency)

3: The Airline in operation should be Mileage efficeny and should be drain much fuel

4: Airline turbine fuel buying contracts renegotiation .

5:  Usage of technology /Digital /Artifical intelligence.

6: Creation of operational Hub in a strategic location from where access all route is easier.

7: Employee managment and redefining Jobs count to bring in operational efficiency by reducing waste .

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