The COVID-19 pandemic has affected multiple industries and organizations, from large corporations to small businesses. However, airlines were arguable the most vulnerable to government restrictions due to the fact that protective measures implied limitations on traveling. Air Canada has been affected by COVID-19 on multiple levels. Multiple workers could not operate based on regular schedules, airlines were canceling flights due to government regulations, and authorities installed mandatory policies that were limiting potential travelers from purchasing flight tickets. In this memo, Air Canada will be examined in relation to the changes and impacts the quarantine has had on business processes and organizational structure. This memo illustrates a comparison of two provinces in regard to COVID-19 restrictions that have affected Air Canada both directly and indirectly. After the examination of the outcomes, recommendations will be highlighted in relation to cooperation with the government and solutions that can minimize adverse outcomes for the company.
COVID-19 Impact on Air Canada
Air Canada, as the largest airline in the country, has largely been affected by government restrictions aimed at ameliorating the spread of COVID-19. However, while the travel restrictions have affected the corporation directly, several other implementations have had an indirect impact on sales and profit. An example is a policy that first restricted direct flights from China to Canada and later expanded to all international flights except for Canadians seeking to travel back to their country (Zhao et al. 2020, 506). This certainly led to a reduction in profit, a change in schedule, inconsistencies in sales, and the reduction of stuff. On the other hand, the government restrictions correlating with bans on large gatherings, curfews, and the closing of businesses indirectly affected the company. Thus, individuals did not have the opportunity to travel to such occasions as weddings, birthdays, and family gatherings, which indirectly affected the company’s sales during the outbreak. As a result, Air Canada has been negatively affected by the changes linked to COVID-19 government restrictions on multiple levels, including human resources, schedules, profit, sales, schedules, and market stability.
Government Restrictions in Ontario vs. Quebec
Ontario and Quebec will be analyzed in regard to government restrictions affecting Air Canada. The two regions, according to researchers, have reportedly had the most COVID-19 cases nation-wise (Detsky and Bogoch 2020, 743). However, there are certain differences in how the provinces’ authorities have approached the pandemic and, as a result, impacted the aviation industry. These are connected to approaches to domestic flights as well as local restrictions that inadvertently affected Air Canada.
It is certain that both Ontario and Quebec responded to the health threat. However, researchers mention Quebec having a more strict approach and installing preventative regulations for a longer time (Dickson 2021). Thus, the government limited indoor and outdoor gatherings for a more extended period of time, which created a lack of flight sales for individuals previously traveling for family events. Moreover, domestic traveling had certain limitations, as illustrated in a 2020 report. Based on the regulations, Nunavik and James Bay were under restrictions, which implies that air travelers seeking to enter said regions would not purchase tickets from Air Canada (Destination Canada 2020). However, while only four Canadian airports were operating, one of them, namely the Montreal Airport, was in Quebec (Allin et al. 2021, 76). Thus, Air Canada was still operating, although with limited flights. Another airport that was still operating (Toronto) was in Ontario, where the restrictions were less strict.
Compared to Quebec, Ontario has limited domestic flight limitations based on a 2020 report. Namely, all domestic traveling restrictions were installed when flying to Ontario from another province (Destination Canada 2020). Thus, Air Canada could operate fully within national perimeters when it came to flights to Ontario, one of the two most popular regions. This was beneficial for the company’s sales and opportunities to maintain a semi-regular flight schedule. Moreover, while Ontario has installed restrictions and curfews during the riskiest timespans related to the pandemic, they have not been in place for as long as in Quebec (Dickson 2021). Based on the information, travelers were able to attend family gatherings, which implies those living in other provinces were investing in flight tickets and supporting Air Canada through their purchases.
Canadian Federalism
Canadian federalism can have both negative and positive effects on Air Canada, as exemplified during the COVID-19 pandemic. For example, reporters have mentioned that Quebec may have had a quicker recovery from the devastating effect of the lockdown if people had been more diligent about wearing masks. Yet, citizens did not entirely fulfill the order due to the individuals’ partial dismissal of national authorities (Dickson 2021). Moreover, federal restrictions were strict and extensive, which ultimately affected Air Canada in regard to its operations and sales. However, nation-wise preventative measures have, to a certain extent, reduced the negative impact of the pandemic, implying that industries were able to recover faster. Thus, one can interpret government-based policies from contrasting perspectives. Nonetheless, cooperating with the authorities is in everyone’s interest, which is why Air Canada is to be resilient to new implementations.
Recommendations in Cooperation with Governments
It is certain that the government regulations installed during the COVID-19 pandemic were designed to reduce national risks and prevent the spread of the virus. Hence, it is important for Air Canada to follow the policies. However, such changes create disturbances in business processes which are challenging to overcome. Researchers mention the importance of resilience in Canadian airlines during crisis situations when schedules are chaotic, flights are canceled, and workers are quarantined (Garrow and Lurkin 2021, 3). Thus, Air Canada is to formulate a crisis plan that minimizes such limitations. Moreover, cooperating with the government implies being ready for organizational changes in advance.
Authorities provide information on potential risks and data on the evolving nature of the problem, and companies consider them while planning for future strategies. Moreover, designated people are to cooperate with the governments of all provinces as local restrictions can also impact the airline. As a result, while crisis situations cannot always be prevented due to their link to the external environment, Air Canada will be resilient and prepare to act accordingly. Moreover, monitoring local government policies can help the analyst’s product sales, hence, investment or potential cost cuts. Restrictions such as prohibited gatherings lead to a reduction in purchases of airplane tickets. Analysts can examine this information, and the airline can cancel specific flights and minimize economic losses. Moreover, similar strategies have been applied when airports have been closed (Allin et al., 2021). Thus, the organization can address the further minimization of financial challenges through effective cooperation with local and national authorities.
It is recommended that the potential solutions mentioned prior are reviewed and implemented in the organizational strategy to address future challenges.
Bibliography
Allin, Sara, Tiffany Fitzpatrick, Gregory P. Marchildon, and Amélie Quesnel-Vallée. 2021. “The Federal Government and Canada’s COVID-19 Responses: From ‘We’re Ready, We’re Prepared’ to ‘Fires Are Burning.’”Health Economics, Policy and Law 17, no. 1: 76–94. Web.
Destination Canada. 2020. “COVID-19 Impact and Recovery Report: Travel-Related Measures.” Destination Canada.
Detsky, Allan S, and Isaac I. Bogoch. 2020. “Covid-19 in Canada.”JAMA 324, no. 8: 743. Web.
Dickson, Janice. 2021. “A Tale of Two Covid-19 Hot Spots: Ontario and Quebec Take Different Approaches to Confronting Third Wave.”The Globe and Mail. Web.
Garrow, Laurie, and Virginie Lurkin. 2021. “How Covid-19 Is Impacting and Reshaping the Airline Industry.”Journal of Revenue and Pricing Management 20, no. 1: 3–9. Web.
Zhao, Naizhuo, Ying Liu, Audrey Smargiassi, and Sasha Bernatsky. 2020. “Tracking the Origin of Early COVID-19 Cases in Canada.”International Journal of Infectious Diseases 96: 506–508. Web.