Ariel Liu’s post on Air Canada’s decision to start a separate airline has generated much interest for me. When I first read the article, I immediately thought of the point of difference. It appears Air Canada is trying to gain a competitive edge by producing a cheaper airline carrier service UNDER the ownership of Air Canada. By cutting costs of the employees, and increasing the seating capacity by 20%, this new airline carrier is able to reduce it’s price for customers.
Will this move really help out Air Canada? After doing research, I learned that Air Canada is in quite a slump.
However, my stance is that if this move is positioned well amongst the public, this air carrier line could really be beneficial for Air Canada. It offers them a clean slate in a way because this new airline offers something fresh; something new and efficient. Given that Air Canada can attempt to gain a good first impression, long term benefits will be sure to come. The PoD of this airline being cheaper will also give it a competitive edge toward its rival WestJet and other competing carriers.
It is in my hope that this new airline can bump Air Canada out of the slump. They have been a national icon for Canada and to see them rise again would be uplifting.
Sources:
http://www.thestar.com/business/article/1128464–air-canada-pilots-call-strike-vote
http://www.cbc.ca/news/business/story/2012/09/19/air-canada-low-cost.html
https://blogs.ubc.ca/arielliu/