addition, electronic communication using messaging systems to solve customer problems has become standard across the industry. o Impact of Fuel Prices - the economic downturn in 2008 and the fluctuating prices of fuel has caused a tightening in the airline industry leaving the major airlines fighting for passenger seat capacity and using alliances and partnerships to ensure capacity. To this end, many carriers went belly-up in the market (Zip and Zoom Airlines). The low cost of fuel has really assisted many carriers with lower operational costs and thus more profits. Implications on Air Canada - Air Canada has to compete with companies on certain routes that can provide bargain prices without the hassle of higher overhead due to higher taxes …show more content…
1.3 Social Environment o Safety - safety is highly regulated under aviation regulation. The Canadian Transport Agency (CTA) is the regulator that monitors closely the safety measures put in place. This is a huge factor in transportation services and in the airline industry in particular. There are strict regulations in Canada on safety from arrival to the airport to destination. Many airlines try to differentiate themselves with this feature. Planes are routinely checked at the airport after every flight. This impacts the bottom-line as planes need to be physically fit to fly and also ensure the safety of their passengers. o Shift in Customer Demand - customer demand has shifted towards faster service and quick response. The introduction of online sales, third party seat sales, and mobile services, have greatly improved the way customers interact with air transportation. Customers purchase their own tickets instead of going through an agent, pay for baggage fees and check-in online before entering the airport. Implications on Air Canada - Air Canada has to pass through tough regulations in safety standards to compete with other carriers. It is these standards that help Air Canada to differentiate itself from its competitors to be named in the top 2% in North America. In addition, Air Canada has already established online and mobile presence for booking, check-in and monitoring of flights although WestJet also has a significant presence in these areas as well. 1.4 Technological Environment o Rapid Change - the Airline industry has to keep up with new aerodynamic technology to get passengers to their destinations in a timely manner. This means that airlines are important investments. These airlines compete for the most recent technologically advanced planes from the airplane manufacturers. In addition, many companies have infused technology into their processes such as booking and check-in services. They have also adapted to mobile services providing customers to