This Is a Summary on the Risk Management Case Study of Air Canada
REPORT ON RISK MANGEMENT OF AIR CANADA
SUBMITTED TO :
MRS.VANDANA MEHROTRA
SUBMITTED BY:
KUNAL KOTHARI
MOHITA AGARWAL
SAIMA AHMED
APURV SHARMA
NAINA SINGH
SONAKSHI RATHI
AIR CANADA- RISK MANAGEMENT
INTRODUCTION:
Colin Rovinescu, the Chief Executive Officer (CEO), for Air Canada was reviewing the Risk Management program of the company because the scheduled board meeting was approaching soon. He needed to deliver a comprehensive presentation in front of the board members.
CHALLENGES FACED BY THE AIRLINE INDUSTRY:
An Airline is a business providing a system of scheduled air transport. Also called airway. Airline industry is the business of transporting paying passengers and freight by air along regularly scheduled routes, typically by airplanes but also by helicopter. The industry faced several challenges which it had to resolve. They are as follows: * Attack on WTC and Pentagon: The attacks on World Trade Centre and Pentagon, very well known as 9/11 led to decrease in confidence of people. The mindset of people changed to “if US can be attacked then nothing is safe in the world”. This mindset led to less number of people moving towards Air Transport. * Increasing cost of operation: An increase in air traffic and number of new airport terminals drove up the landing fee of airlines impacting the overall operating cost and profitability of the Airline Industry. * Increasing fuel: Increase in prices of crude oil from $27 to $133 had a major impact on the profitability of the industry. The sudden increase in fuel prices left the industry in a fix and increased the cost of the industry by many folds as fuel accounts for around 30-40% of the total operating expenses. * Health related issues: Health related concerns had also interrupted the international travel. SARS in 2003 and Influenza in 2009 created a fear in minds of travelers of being infected. As it is known that people from much demography fly together and apparently the risk
SUBMITTED TO :
MRS.VANDANA MEHROTRA
SUBMITTED BY:
KUNAL KOTHARI
MOHITA AGARWAL
SAIMA AHMED
APURV SHARMA
NAINA SINGH
SONAKSHI RATHI
AIR CANADA- RISK MANAGEMENT
INTRODUCTION:
Colin Rovinescu, the Chief Executive Officer (CEO), for Air Canada was reviewing the Risk Management program of the company because the scheduled board meeting was approaching soon. He needed to deliver a comprehensive presentation in front of the board members.
CHALLENGES FACED BY THE AIRLINE INDUSTRY:
An Airline is a business providing a system of scheduled air transport. Also called airway. Airline industry is the business of transporting paying passengers and freight by air along regularly scheduled routes, typically by airplanes but also by helicopter. The industry faced several challenges which it had to resolve. They are as follows: * Attack on WTC and Pentagon: The attacks on World Trade Centre and Pentagon, very well known as 9/11 led to decrease in confidence of people. The mindset of people changed to “if US can be attacked then nothing is safe in the world”. This mindset led to less number of people moving towards Air Transport. * Increasing cost of operation: An increase in air traffic and number of new airport terminals drove up the landing fee of airlines impacting the overall operating cost and profitability of the Airline Industry. * Increasing fuel: Increase in prices of crude oil from $27 to $133 had a major impact on the profitability of the industry. The sudden increase in fuel prices left the industry in a fix and increased the cost of the industry by many folds as fuel accounts for around 30-40% of the total operating expenses. * Health related issues: Health related concerns had also interrupted the international travel. SARS in 2003 and Influenza in 2009 created a fear in minds of travelers of being infected. As it is known that people from much demography fly together and apparently the risk