Porter Airlines
Executive Summary Porter Airlines, a short-haul commercial airliner established in 2002, have enjoyed significant and steady growth since inception. The concern now is to devise a solution that will allow Porter to continue its controlled expansion strategy, as it has been so successful and integral to the growth of the company over the past several years.
Situation Analysis
Porter Airlines operates in a fiercely competitive airline industry, where competitors compete based on price, service, and comfort of passengers, and frequently engages in predatory practices to squeeze out smaller players in the market. The performance of the company depends on external environment factors, such as economic factors of oil and fare prices that will influence margins, or political factors impacting the future bridge and accessibility improvements to the city center airport. Porter’s competitive advantage is linked to the convenience of the Toronto City Center Airport, such as proximity to business core and expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies.
Alternatives and Recommendation
Several alternatives were provided for Porter to continue its growth, including a focus on refining competitive advantages and improving the TCCA, expanding the destination portfolio to include additional local destinations as well as Western Canada destinations, and the possibility of joining a strategic alliance, which are very common in the airline industry. Overall it is recommended that controlled expansion should be continued into Western Canada using a gateway airport such as Thunder Bay, and to also explore a strategic alliance with the OneWorld air network. Porter
Situation Analysis
Porter Airlines operates in a fiercely competitive airline industry, where competitors compete based on price, service, and comfort of passengers, and frequently engages in predatory practices to squeeze out smaller players in the market. The performance of the company depends on external environment factors, such as economic factors of oil and fare prices that will influence margins, or political factors impacting the future bridge and accessibility improvements to the city center airport. Porter’s competitive advantage is linked to the convenience of the Toronto City Center Airport, such as proximity to business core and expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies.
Alternatives and Recommendation
Several alternatives were provided for Porter to continue its growth, including a focus on refining competitive advantages and improving the TCCA, expanding the destination portfolio to include additional local destinations as well as Western Canada destinations, and the possibility of joining a strategic alliance, which are very common in the airline industry. Overall it is recommended that controlled expansion should be continued into Western Canada using a gateway airport such as Thunder Bay, and to also explore a strategic alliance with the OneWorld air network. Porter