Zip Air Canada Essay

In 2002 Air Canada was struggling to stay competitive in the airline market place. This situation was due in part to the effects of the terrorist attacks that took place in the United States on September 11, 2001, lower rates being offered by its competitor West Jet Airlines, and a slowing economy. In order to increase profits and decrease cost, Air Canada created a subsidiary airline called Zip Air Inc. The objectives of this company were to offer low cost, competitive airfares to its customer base while decreasing the cost associated with running the company, beat their competitor’s already low airfares, and still provide adequate customer service to its existing customer base, and gain new customers within their market. The company began

The first is to meet their objective of lowering operating cost in order to increase profits and stay in business. The second challenge will be to gain employee loyalty and buy in, which will be difficult when offering a lower wage. The third challenge the company may face is a possible confrontation with the Canadian Union of Public Employees. Although these are three separate issues, they are all interconnected with one another. The company will have to treat each concern as a high priority because the consequences will have a rippling effect from one area to another, with the end result either creating the organization they are seeking or destroying it right out of the

At this point the company has employees that may feel they are being paid less than they deserve, which can lead to poor company loyalty, which in turn can lead to poor customer service and decreased work productivity. The company will need to initiate and foster an environment of employee satisfaction by listening to their needs and concerns and allowing them to be a part of any change process. They may need to negotiate wages and meet in the middle to foster good will with employees with the long term goal of creating a better work environment. A better work environment will promote a staff that will go the extra mile for the company and customers. This ultimately will gain more customers for the company and increase