Paper Summary:

Two airlines, Air Canada and WestJet, are in a fierce battle for domestic market share. By analyzing their strategies, this paper seeks to answer the question of whether middle positioning is really a hindrance to growth within the industry. To this end, an overview of each company is presented. In addition, SWOT, PESTEL, and Porter's Five Forces analyses are provided for each company to help determine their strategic advantages and the choices they have made.

From the Paper:

"Air Canada is known as the national airline of Canada. It is the dominant carrier in the country, serving approximately 150 destinations, primarily in Canada and the United States. Air Canada has a fleet of nearly 350 planes, which includes 130 regional aircraft ("Overview - ACE", 2005). The airline's expansion has come due to several strategies. Most importantly was its purchase of domestic rival, Canadian Airlines. In addition, it combined it numerous regional airlines: Air Nova, Air Ontario, AirBC, and Canadian Regional Airlines, to form one large regional carrier, Air Canada Jazz. In addition, Air Canada added two of its budget startups, Tango and ZIP, into its main operations. Lastly, in 2004, Air Canada emerged from bankruptcy protection, and created the new holding company structure, under ACE Aviation Holdings, Inc. ("Overview - ACE", 2005). Air Canada's direct competitors include: WestJet, AMR Corporation, British Airways, Air France, Alaska Air, Cathay Pacific, Continental Airlines, Delta Air, Japan Airlines, KLM, Korean Air, Northwest Airlines, SkyWest, and US Airways ("Competitors - ACE", 2005)."

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