While reading my peer’s blogs I came across an interesting post about the inefficiency of Air Canada and how they have been unable to keep their stakeholders happy. Two of Air Canada’s main stakeholders are employees and customers  and the firm has managed to keep both dissatisfied.

Due to Air Canada’s new policy, it’s customers are reluctant and angered as a result they do not treat the employees with respect. Lack of respect from customers has lead to demotivation of the employees. A demotivated workforce leads to bad service and hence we can see that Air Canada is stuck in a loop that would keep getting worse over time.

In order to improve their public image, Air Canada should improve their services such that it complements the consumer needs and wants. With increasing competition in the industry loosing out on consumers is not a viable option. Air Canada should conduct market research and find out the facts that bother its consumers and try to rectify them since it would not only help them retain the lost consumer confidence but also help them improve their profitability.

If Air Canada does not improve its brand image soon the investors would be reluctant to continue with the firm leading to cash-flow problems and bankruptcy. The airline industry is expensive in terms of initial costs as well as the over heads and lack of funds from investors may lead to devastating problems for the firm in the near future.

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