Air Canada Mergers
The airline industry is an oligopoly with low-profit margin and high fixed cost business impacted by government regulations, high taxes, high labor costs, and fluctuations in fuel prices. In addition to revenues from passenger tickets, the industry earns additional revenue from transporting cargo, selling frequent flier miles to other companies and up-selling in flight services. It is common to see alliances and mergers are common in this industry. Air Canada (AC) is Canada’s largest domestic and international airline and part Star Alliance that consists of 28-member airline network, it offers its customers access to approximately 1,300 destinations in 190 countries. AC continues to explore opportunities for revenue enhancement and cost