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Changes On Air Canada During Covid19 Assignment Sample

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Changes On Air Canada During Covid19 Assignment Sample


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The report will focus on the role of the managers in tackling the covid pandemic situation. In this report, internal and external factors for the change management have been discussed. Different types of change and the resistance to the changes are discussed. The main consequences of change implementation are also highlighted to depict the understanding concept of change management.

With the international imposition of travel prohibitions in 2020 owing to the covid-19 epidemic, commercial airline firms have seen significant reductions in passenger volume as well as revenue. The Government of Canada has been advising travelers to avoid any non-essential travel outside the country to limit the spread of the COVID-19 virus in the country. The bulk of international operations has been halted, while local flight schedules have been substantially cut. In addition, numerous airlines have temporarily or permanently suspended operations. The company's entire workforce changed dramatically as a result of the huge decline in airplane activity. Airlines have reacted to partial or total layoffs, as well as a significant adjustment in compensation and work hours. Airport service providers and airport profit, for example, NAV CANADA, were also down. Inn this report, the role of managers for the change management Process has been described. The background of Air Canada has been mentioned in this report. The internal and external factors that can impact the change management has been discussed. Moreover, the different types of changes, consequences and the resistance of the change process are also included in the report.

Company history

Air Canada is the national airline of Canada. Furthermore, due to the high level of service it provides, the company is one of the country's top airlines. Air Canada's brand image has a significant value due to the number of people it transports and the size of its fleet. Air Canada's headquarters are in Quebec (‌Air Canada - Company Profile, Information, Business Description, History, Background Information on Air Canada. (n.d.). The company, which started its operation in 1937, uses scheduled and charter flights to transport cargo containers as well as passengers to more than 200 destinations throughout the world. It has established a respectable reputation since its start. Vancouver International Airport (YVR), Toronto Pearson International Airport (YYZ), and Montréal–Trudeau International Airport are Air Canada's primary hubs (YUL). Air Canada Express is a Canadian small airline that flies all over the country (‌Air Canada - Company Profile, Information, Business Description, History, Background Information on Air Canada. (n.d.).
Trans-Canada Air Lines (TCA) is Canada's largest airline, has launched the first transcontinental aircraft service in 1938. It was established in 1936 by the Canadian federal government. TCA has rebranded Air Canada in 1965 after receiving government approval (Air Canada - Company Profile, Information, Business Description, History, Background Information on Air Canada. (n.d.). After the liberalization of the Canadian aviation business in the 1980s, the firm was privatized in 1988. On January 4, 2000, Air Canada's competitor, Canadian Airlines, was purchased.
Air Canada might purchase all of Transat's issued shares for $5 per share under the provisions of the legal agreement they've struck, which has now been unanimously approved by Transat's Board of Directors. It will be paid in cash, Air Canada stock, or a combination of both in order to build a worldwide Montreal-based company's management (Inc, T. A. T. (n.d.). The purchase cost is 32% more than the 20-day volume-weighted average sale price for Transat stocks (VWAP). Transat also announced the start of a new short-term financing programme worth $250 million each year.
Air Canada uses wide-body aircraft such as the Airbus A330, Boeing 787 Dreamliner, and Boeing 777 for long-haul flights, while Airbus A320 family aircraft such as the A321 variations, A320 variants, Airbus A220-300 aircraft, and Boeing 737 MAX 8 are used for short-haul flights. Some of the carrier's commercial divisions are Air Canada Express, Air Canada Rouge, Air Canada Cargo, and Air Canada Jet (‌Air Canada - Company Profile, Information, Business Description, History, Background Information on Air Canada. (n.d.). A subsidiary of the company, Air Canada Vacations, sells package vacations to more than 90 destinations. Daily, the aircraft conducts about 1600 planned flights with its local partners.

Interview with the manager

Questions 1. What are the changes brought in Air Canada?
Answer: Air Canada has the agility, manpower, and greater distribution to manage this issue well. It also has the necessary economic resources, such as historical liquidity ratio, enhanced debt ratings based on a low leverage ratio, and even a sizable pension plan surplus, all of which are critical for operational viability (Air Canada reveals impact of Covid-19 in Q1 results, 2020). These essential attributes enable us to concentrate all of our immediate assistance on worker and consumer safety, as well as minimising the virus's economic implications.

Question 2: What are the operations implemented for the change?
Answer: In 2020, Air Canada has reduced the capacity by 50 percent because of the travel restrictions. The company has also used a combination of low Jet fuel price strategy. A general cost reduction process has been implemented in Air Canada for reducing the workplace, capacity reduction, fuel cost reduction.

Question 3: Have you faced any resistance to the change?
Answer: Due to workplace reduction, reduction came from the worker’s sides. They were reluctant to get reduced salary and also some employees were not at all ready for getting fired.

Question 4: what is the expected time scale for the change implementation process?
Answer: the expected time scale for the change implementation process is around

Question 5: What are the communication systems granted for helping the sufferers in Air Canada?
Answer: Video calling apps like Zoom, Google Duo, Skype, and messaging apps, e-mails will be used for communication system.

Question 6: What do you think how well the operation can address the issues?
Answer: The operation will be addressed well with the proper implementation of the strategies. The management will explain every minor details to every employee.

Role of management in the change process

The CEO of Air Canada, Pierre J Jeanniot, has taken a huge step to deal with the challenge. Decision-making is one of the most significant and crucial roles of the managers to implement necessary changes during the covid-19 pandemic.
It has also become a significant role to define the impacts of the changes within the organization. The manager can try to clarify the impacts of the changes on the employees. It can help the employees deal with the Change management process. The approaches taken for the Change management process are needed to be explained to the employees. The objectives and action plans are important to be described to the employees to help them overcome any problems during the Change management process (Dzwigol et al., 2019). The managers also describe all the necessary approaches and processes to the employees for helping them out during the change process. Without giving any plan or objective for the change process the employees face problems in operating functions.
The managers of Air Canada have played an important character in Change management. They have implemented strategies for improving the cleanliness and hygiene processes in airplanes and airports. It has increased customer satisfaction and loyalty. The managers implemented necessary plans for dealing with the covid-19 pandemic impact. Due to restrictions in travel and tourism, the Canadian government faced a huge economic loss and also a high decline in the number of passenger flights (‌Air Canada - Company Profile, Information, Business Description, History, Background Information on Air Canada. (n.d.). It resulted in a decrease in the revenue collection of the company. Balancing the loss becomes a great challenge for the managers. The salary reduction of the employees is the foremost action made by the company. To tackle the financial costs, a cut in the salary of the employees is decided by the managers.

Images of change

The images of change has been implemented in three forms including controlling, and shaping.


The managers made effective decisions to deal with the economic crisis and worldwide band in the occasion sector. The managers have made every employee understand the situation. They have also prepared themselves for dealing with the chains with proper guidance and assistance (Dzwigol et al., 2019). By bringing any change it is important first to make people understand why the changes are being implemented. At the very first the managers defined the goals and objectives of bringing the changes within the organization. Because of the covid-19 pandemic, the government rules and regulations regarding the aviation sector have changed. This is why it is important and mandatory for the manager to develop some effective strategies for dealing with this change. Setting a new goal and defining what the managers are trying to obtain is important to be clarified to the employees (Galli, 2018).
Some short-term goals are also created by the manager to guide employees through which the employees can be motivated. Making some plans for the short term goals and providing rewards to achieving the short term goals to the employees helped the managers in the successful implementation of the changes (Cameron, & Green, 2020).
Tracking the improvement and progress report the managers try to figure out the areas which need continuous changes. It has thereby helped the managers modify the required changeable areas effectively (Brock, Peak, & Bunch, 2019). The managers have to institutionalize the new approaches and processes and make sure that the employees understand that the new behavior can bring success to the company.
The manager has developed strategies to empower the employees with proper information and guidance.


Human resource managers employ technologically advanced skills and knowledge for operating the changed services. The new changes in the organizational operations in the company require technically advanced employees (Kim, Lee, & Ahn, 2019). This is because the human resource manager has implemented necessary training and skill development courses for the existing employees. And also will be hired for operating this service.
The manager helps the employees in understanding the cost reduction strategies. All the processes for reducing the costs and workforce will be discussed to the employees effectively.
Developing effective communication system, providing the employees with insurance and health schemes will play the role of nurturer.

Kotter model

The eight-step model of Kotter helps transform the organization in a better way. In this model, it has been highlighted that it is important to communicate with the organization members with the goals and objectives (Brock, Peak, & Bunch, 2019). A clear vision and goal can help the organizational members understand the importance of bringing significant change.
Establishing a sense of urgency for the implementation of change is required to be explained to the members. The manager of Air Canada needs to explain the urgency of the implementation of the changes. The employees thereby can understand the need for change. For the Implementation of changes, the manager has developed a group of employees who can work together (Cameron, & Green, 2020).
They have also created a vision that can help the organization to be guided. The members are guided to change effort strategies supporting the goal and vision (Cameron, & Green, 2020).
Communication with employees is very important because it helps the members visualize the goals. The managers have tried to communicate the vision and the development strategies and behaviors among the employees to help them deal with the changes (Stouten, Rousseau, & De Cremer, 2018).
The managers have empowered the organizational members to act based on the nation. By empowering the employees with proper skill and knowledge the managers have overcome the unhelpful systems and structures (Stouten, Rousseau, & De Cremer, 2018). Also allowed the employers to experiment with their skills for successful change implementation.

The change the company went through

The main and major changes that the company went through during this period were found in the organizational operations, financial management, human resource management, and employee management. To tackle the changes in financial management the financial managers have reduced the salary of the employee. Because of the travel restrictions and worldwide ban in the aviation industry, Air Canada had to operate limited flights that reduced the revenue collection and profit of the company. The managers of Air Canada developed a budget strengthening the major and most important functional areas. It helped them with the entire expenditure of the company (Coban, Ozdemir, & Pisapia, 2019). As per the new change process in the company, employees without competence and knowledge in technology are not suitable for the requirements of the company. This is the main reason for employee layoffs.
Strategies were also developed to operate the Promotion and advertising. Social media and digital media marketing are being promoted to reach out to customers and passengers across the world (Kim, Lee, & Ahn, 2019). The customers are being encouraged out of the social media platforms to travel in Air Canada.
Changes were also performed in the organizational operations. The managers focused on developing a robust healthy and safe environment for the employees as well as the customers. They have developed strategies to improve organizational cleanliness. Cleanliness has been provided as the topmost priority in the company to prevent virus infection among employees and customers. The managers focus on Clean and hygiene environments within the organization. Organizational processes and regularly sanitized and cleaned for maintaining a healthy atmosphere (Debata, Patnaik, & Mishra, 2020). Thermal screening, providing personal protective equipment to the employees, sanitization, and irregular mask distribution are the major organizational operations Air Canada focuses on to manage the change.
Technological advancements are implemented within the organization for tackling the various operations. Customers can now book online tickets and cancel their tickets whenever they require. They can also track their ticket booking system and get the necessary information from the website of the company. Technological advancement has also been implemented for enhancing the experience of the customer (Kim, Lee, & Ahn, 2019). With the help of automation and artificial intelligence, managers cannot identify the needs, p

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