Strategic Analysis of Air Canada: Proposal Memo for ENGL250 Report

This report presents a strategic analysis of Air Canada, focusing on its business strategies within the aviation industry. The report begins with a summary of the research, followed by a background on the importance of innovative marketing in the digital business world, especially for large-scale industries like airlines. It outlines Air Canada's established targets, including new financial goals, co-branded credit card launches, and plans for introducing more narrow-body aircraft. The report highlights the company's progress, such as increased EBITDAR margins and ROIC. The feasibility of these plans is assessed, emphasizing the scope for future development. The report concludes with recommendations for constructing the research efficiently and includes a bibliography with two references. The structure follows the specified proposal memo format, covering summary, background, facts, proposed plan, feasibility, and outcome with a positive action closing.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author Note:

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To:
From:
Date:
Re:
Summary
The research is based upon the study of the strategic analysis of Air Canada. The purpose
of the research will be to get an idea of the strategy of the largest Airlines Company of Canada.
The choice of the topic is because of the development of the aviation sector for the last few years
and the scope and chances that they offer to the global citizens in terms of travelling from one
place to another. The increase in technology and the innovations in the aviation sector has
ensured a safe and smooth journey for the people which has made the aviation sector one of the
most ideal sectors to invest in. With the increase in aviation startups and the formation of new
aviation alliances, the aviation business strategy is surely one of the most interesting topics to
discuss. The selection of Air Canada has been one of the great examples for studying the
strategic processes of aviation business.
Background
In the digital business world, it is one of the most important elements to market the
business innovatively and attract the attention of all the customers for increasing sales as well as
productivity. The Airlines Industry being a large scale industry with huge investments and huge
profits needs to plan a well suited marketing strategy that can help the industry to gain market
share and take them to the next level. The management of Air Canada has a set of established

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targets that are important for the growth of the business globally. The setting up of new financial
targets, the launching of co-branded credit cards and the development in the plans to introduce a
large number of narrow body aircrafts in the near future are some of the strategies that the
management has planned to introduce.
Facts
Proposed Plan
Air Canada has been able to make significant progress in the aviation industry with the
recent results favoring their development. The increase in the annual EBITDAR margin from 17
to 205 along with the increase in the annual ROIC from 13% to 16% has been the major reasons
behind this developmental process. The plan of the management of the company is to set up new
financial targets, the launching of co-branded credit cards and the introduction of a large number
of narrow body aircrafts in the near future. These all developments can be helpful for the
organization in its future growth.
Feasibility
The research will be based on some serious strategic topics which are based on the future
development plans to set up new financial targets, develop new strategies and introduce new
narrow bodied aircrafts in their fleet of Air Canada. Thus the research is quite feasible and will
surely have a large scope for development.

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Outcome
Recommendations
The research must be constructed in such a manner, that all the details are provided in the
most efficient manner. This will help in the formation of the research using the most genuine
information.

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Bibliography
aircanada.com(2020).Retrieved6March2020,fromhttps://www.aircanada.com/ca/en/aco/
home.html
Endrizalová, E., Novák, M., & Kameníková, I. (2017). Development and trends in airlines
business models. In New Trends in Process Control and Production management (pp.
119-123). CRC Press.
Law, K. M., & Breznik, K. (2018). What do airline mission statements reveal about value and
strategy?. Journal of air transport management, 70, 36-44.
TM, A., Ul Akram, M., Singh, S., & Agarwal, S. (2017). Is Low Cost Strategy in Airlines
Sustainable?–A Comparative Financial Ratio Analysis of Low Cost Airline Companies in
India. Contemporary Areas of Management and Finance by Dr. Amit Kumar Singh,
Galgotia Publishing Company, De (2017).