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AirlinesinCanada.pptx
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AIRLINES IN CANADA

Description of the industry --major subcategories (sub-industry) --the industry's role in the world economy -- main business (profit) model of the industry

Air transportation in Canada comprises of local, regional, national and international airlines which transport passengers and cargo to destinations both domestically and around the world.

In 2018, there were 600 air carriers with licenses in Canada

“Sub-industry is one derived from or dependent on a larger industry”

Examples of Canadian Air Transportation sub-industries: Airlines and Scheduled Air Transport, Air Freight Transportation, Non-Scheduled and Charter Air Transport

-- Major global/local market players (such as buyers, suppliers, competitors, substitutes, etc). -- Major trends and issues associated with the industry (technologies, product life cycle, labor components, global supply chain, etc

Population ,income level

Porters 5 force analysis — I put on next slide

Trends / issues

Population Density

Investment environment analysis of the industry in the host country market Host country analysis ( general economic, social and demographic characteristics) Local market analysis -- market structure (concentration, growth, competition, supporting industries, etc.)

Oligopoly market

Government policies/regulations targeted at the industry --policies to encourage FDI, to protect local firms, or to discriminate against foreign investors, preferential trading provisions

https://en.portal.santandertrade.com/establish-overseas/canada/foreign-investment

Social and financial market analysis

Air Canada provides direct employment opportunities for over 26,000 people each year. Its passenger transportation services generated over C$14.6 billion in 2016. More than 48 million people are carried by Air Canada to their destination each year, with over 85 billion revenue passenger miles generated.

WestJet was able to generate about C$4.1 billion by providing transportation services to over 100 destinations and over 24 billion revenue passenger miles created.

In total, the pre-tax profits that are expected from the Canadian airline industry each year are about C$1.5 billion.

In 2017, Air Canada held the largest share of the domestic air traffic market, accounting for 45% of the departing seats. WestJet accounted for another 25% of the departing seats. They were followed by Porter (4%), Air Transat (3%), United Airlines (2%), and Sunwing (2%)

Canadian Infrastructure

Canadian infrastructure defined as “distinctly average”

Investments

Quality

Focused on health and telecommunications, not transportation or utilities