M RahmanStakeholders of Air Canada (Stakeholder Analysis)
This article explores the key stakeholders of Air Canada. In any business, there are several groups that can influence its success. These groups include employees, customers, suppliers, competitors, and even the government. Air Canada’s success and failure is largely dependent on the relationships it has with those stakeholders.
Internal Stakeholders of Air Canada
Employees of Air Canada
Air Canada’s employees are its most important stakeholders. After all, when employees are happy, they will be more likely to stay with the company in the long run. This would help to decrease labour turnover rates and reduce the associated costs. In addition, satisfied employees will be more likely to work harder and provide better customer service. This can have a positive effect on the company’s reputation.
If employees are unhappy, on the other hand, they are more likely to leave the company. This can negatively affect it in the short term since it will have to find and train new employees to replace those who have left. It can also have a long-term effect by negatively impacting its corporate reputation. According to Salas (2022) Air Canada has around 19,800 employees. It considers promoting diversity, equity, and inclusion essential for retaining the employees for longer period of time.
Management team of Air Canada
Air Canada has a diverse management and leadership team which is led by the Chief Executive Officer who is supported by a number of other strategic level officers (Air Canada, 2022). However, there were protests in the past to demand CEO’s removal over French language skills (Rowe, 2021).
Shareholders of Air Canada
Shareholders are the people and organisations who have invested money in a company by buying shares of its stock. When a company is profitable, it pays investors a portion of their investment as a dividend. If a company is not profitable, it does not have enough money to pay dividends. Air Canada has both individual and institutional shareholders. However, its fluctuating profitability in recent years has been a concern for many shareholders.
External Stakeholders of Air Canada
Customers of Air Canada
Customers are the ones using Air Canada’s services and generating the revenue that helps it to survive. In order for customers to keep using it and recommending it to others, they need to be satisfied with the quality of the services being provided. For this to happen, the airline must do many things. If customers are not satisfied, they are more likely to go to a different airline. This can negatively affect Air Canada since it would lose out on the revenue that those customers would have provided.
Suppliers of Air Canada
The companies that provide Air Canada with goods and services are also its important stakeholders. The airline is committed to working in partnership with its suppliers. However, the suppliers need to meet certain strict criteria if they wished to work with it.
Competitors of Air Canada
Air Canada is faced with several competitors. For instance, in the domestic market, it is challenged by WestJet, Porter Airlines, and Flair Airlines while several global airlines are its competitors in the international markets.
The government and Air Canada
The government can have both positive and negative effects on Air Canada. For example, regulations can help to keep the airline safe and protect passengers and crew members. This would help to keep Air Canada in business. However, the government may enact regulations that are too strict and make it difficult for it to survive.
Summary of the stakeholders of Air Canada (Stakeholder Analysis)
To conclude, the relationship that Air Canada has with its stakeholders can either positively or negatively affect its success. When the relationship is healthy, it can have a positive impact on it by increasing employee morale, reducing costs, and increasing customer satisfaction. On the contrary, poor relationship may lead to dissatisfaction and even protests.
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Last update: 01 November 2022
References:
Air Canada (2022) Management Team, available at: https://aircanada.investorroom.com/Management-Team (accessed 01 November 2022)
Rowe, D. (2022) Protesters gather at Air Canada headquarters, demand CEO’s removal over French language skills, available at: https://montreal.ctvnews.ca/protesters-gather-at-air-canada-headquarters-demand-ceo-s-removal-over-french-language-skills-1.5665036 (accessed 31 October 2022)
Salas, E. (2022) Air Canada Employees, available at: https://www.statista.com/statistics/542852/number-of-employees-of-air-canada/ (accessed 01 November 2022)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
