Passenger safety is paramount in Canada

1
Air Canada PEST-C Analysis
Name
(Affiliation institution)

2
PEST-C Analysis of potential markets for Air Canada to penetrate
PEST-C Analysis is used to examine the external environment in which a business
operates or intended to launch new products and service to assess the level of competitiveness,
opportunities as well as threats (Yüksel, 2012).PEST involves political and legal factors,
macroeconomic factors, social-cultural factors as well as Technology factors. The selected
countries with potential markets for Air Canada to venture to include Canada, China, United
Kingdom, United Arab of Emirates, Tunisia, Ireland as well as Brazil.
PEST-C analysis OF Canada
Political factors Economic factors
 Political stability- Canada is governed by Federal
parliamentary democracy which has maintained a
politically stable climate for Air Canada to do
business.
 Regulations- Canada is a highly regulated political
environment with government favouring passengers
over the airlines. Passenger safety is paramount in
Canada hence resorting to strict regulation of the
industry which in turn has resulted in low prices.
 Taxation- Canada has low corporate taxation of
15% which has resulted in the market being
profitable although the number of competitors is
increasing (Ward 2020).
Economic growth- The growth of the economy in
Canada before the emergency of COVID 19 has created
an attractive market for AIR Canada company to expand
its operations.
GDP- The GDP of the company has increased
significantly with consumers having a disposable income
to spend on luxury products. The increase in GDP rates
creates an opportunity for AIR Canada to do business.
-Unemployment rates- The declining employment rates
of Canada has created a massive competition on the
available skilled workers. According to (Central
Intelligence Agency, 2020), Canada has 6.3%
unemployment rates.
Social-cultural factors Technological factors
 Education levels- Canada has a higher education  Access to technologies-Canada has a high level of

3
level. Currently, the literacy level of Canada is 99%
indicating Air Canada has assessed to skilled labour
(Macrotrends, 2020).
 Changing patterns of consumers- The increase in
spending behaviour among the customers on
Airline products has created a huge demand for Air
Canada products in the industry.
 Population- Canada has a high population of
37,694,085 with a growth rate of 0.81%.
Furthermore, 81.6% of the population stays in
urban (Central Intelligence Agency, 2020). The
high population increased the number of potential
customers.
access to technology which has increased
efficiencies and effectiveness in operations.
 Rates of innovations- The rate of technology and
automation is very high which have resulted in the
Aviation industry spends much of its revenue to
respond to the emergency of new technologies
leading to marginalized profits.
 Research and development- The country has a
high investment in Research and Development
which ensures there are high rates of automation in
the market.
PEST-C Analysis of China
Political factors Economic factors
 Political stability- China has a stable political
climate for Air Canada to invest.
 Taxations- China has a high rate of corporate
currently standing at 25%. With high competition
in china, high taxation could threaten Air Canada
profits.
 Economic growth- the country has experienced
high economic growth over the last few decades
surpassing the USA in 2014 to emerge as the
largest economy in the world (Central Intelligence
Agency, 2020). Increase in economic growth is an
opportunity for Air Canada Company to do