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This report will be prepared based on evaluating data analytics which involves data regarding business. This will make the analysis that will evaluate its benefits and the nature of business. This report will be prepared based on statistical analysis which would help to produce effective data and techniques and will help businesses to evaluate effective decision-making for the company. This report will include descriptive statistics, exploratory analysis, and confirmatory analysis that will develop the organizational benefits that can organize development for revenue generation of the company.
Nature
Air Canada is the largest airline and flag carrier in Canada, with a fleet size and carrying passengers. There are different headquarters, maintained such as Montreal, Saint- Laurent, and Quebec. Canada provides a license to both scheduled and unscheduled domestic and international characters for both types of passengers and cargo, across the world. According to (Statista, 2022), Air Canada may also be known as “Trans-Canadian Airlines (TCA)”, and privatized by Canadian Governance. The accumulated total assets amounted to over 28.9 billion Canadian dollars for the year 2020. There may be around 21100 employees engaged with Air Canada. Furthermore, Air Canada took over the offer by Transat and agreed for reviewing the competition between Bureau and Transport Canada (Statista, 2022). There may be two combined airlines that control roughly 60% of the share of cross- Atlantic travel from Canada.
Air Canada is the type of business where ones can enjoy an extensive range of priority services and exclusive excess regarding comfort. These may attract passengers and also for the pre-packed meal box that has been crafted and 1000 hours for entertainment (Nerdwallet, 2022). The business Air Canada has exclusiveness in the area of smoke-free flights between North America and Europe. There may be other competitors in the market that include different costs and ranges of the passengers in the business. These may create jobs and stimulate trade in the sector of facilitation for tourism and travel benefits the Canadians.
Air Canada is completely based on the frequency of the flier program of the revamped Aeroplan in 2020. These may result in changing the redemption of the values that may be the basis of economic flight (Nerdwallet, 2022). Air Canada may be introduced, unlike the other airlines in 2018. There may be a difference between the basic and standard classes of economics. The company has faced good profit in the different years. The return on the investment in the company is based on the different comfort zones and current fulfilling requirements of the passengers.
Operating revenue
According to (Statista, 2022), the operating revenue of Air Canadian has occurred for the year between 2013 to 2021, by segment. The above figure shows that in the fiscal year of 2021, the passenger revenue was reported by airlines which includes the revenue of the passengers, the values based on almost 4.5 billion Canadian dollars. The values of the passengers for the different years represent a significant decline, which is relative to 2019. Moreover, the operating revenue has remained significantly depressed amounting to C$6.4 billion in 2021 (Statista, 2022). There may be up to 10% from 2020 and on the other hand, one-third of C$19.1 billion revenue, was generated during pre-pandemic 2019. There may be the capacity to occur in 2021 at about 33.4 billion ASM and down by 11% year on year. There may be operating expenses that dipped by 1.6% year by year to C$9.4 billion. The operating expenses in 2019 have become C$17.5 billion, as reported by Airline Canada. For the year 2016, operating revenue records of $16,252 million and $1,575 million or 11% of revenue for the previous year (Statista, 2022). The revenue of the domestic cost for the year 2019 was up to 39% of 2021 by comparing the international flying 20% for the year 2020.
The Net income has occurred at $10 million or $0.02 per diluted share. There has been an analysis of the comparison between a net loss of $136 million or $0.51 per diluted share in 2012 (Annual Reports, 2013). On the other hand, the net income for the year 2013 by loss of C$120 million due to the weather interest rate of C$95 million (Aircanada, 2015). There may be senior secured notes that may be based on the purchases for the years 2015 and 2016. There may be impairment charges of $30 million.
The data analysis for the last 10 years from 2012 to 2021, helps the company to use a large number of try volume in the business of Air Canada. The advantage of the descriptive statics in the business of Air Canada shows more infrared decisions in the right direction of the business. There are different data sets based on revenue, EBITDA, EBIT, net debt, and net income. These are the important area to provide more focus that provides a visualization of the data to allow a simplified presentation of the data set. On the other hand, the correlation may help to create a relationship between different metrics that have been taken for revealing interdependence (Netsuite, 2021). The value of the mean based on different years of the data set has occurred at 12174.1, 2451.3, 1681.5, 1584.3, and 7802.7. These show the different stages of data analysis over the different years. Here, the changes in the values show the efficiency of Air Canada for independent insight realization (Netsuite, 2021). The standard deviation based on the matrix has occurred at 4383.89, 1010.2, 3535.2, 1445.26, and 1020692.011 respectively. Furthermore, the ANOVA analysis helps Air Canada in the context of comparing the different metrics data taken to manage the revenue and income. These will help the company to compare the different products based on the two independent variables. According to, (Qualtrics, 2022), the statistical significance of the data set analysis is the connection between the dependent and independent variables of the business. According to (Questionpro, 2022), the correlation coefficient analysis is the positive correlation between the matrix of the data set. Here, the data set of Air Canada represents the coefficient unit of the measurements for the intensity in the linear.
2. Analysis and evaluation of statistical data
2.1. Covariance
Quantitative business data or quantitative research is about numbers. It uses data and mathematical analysis to highlight the important statistics in the business of Air Canada and the market.
This is a data type that can be found via multiple choice questionnaires etc. that can help the concern to gauge the interest of the consumers and investors in the company as well as their offerings.
Quantitative data, on the other hand, is dependent on the people and their respective opinion about the business operation of Air Canada (Qualtrics, 2022). This research is conducted by the company to groups of people or one-to-one by conducting programs and asking questions. Quantitative data helps in solving customer-related problems that can be solved more easily. The concern can learn about the opinion of the customers and the beliefs and values of their customers. As it involves the taking of a smaller sample size in comparison to the quantitative research, it cannot be used to predict the future permanence of Air Canada, but it provides an anecdotal look into the business of Air Canada. As per descriptive statistics, raw quantitative data based on revenue, EBITDA, EBIT, net income, and net debt of Air Canada has been shown. The mean revenue of Air Canada is more than the median; it is negatively skewed as well as it is left aligned.
2.2 Comparison between Descriptive Inferential and Measuring Association
Descriptive statistics
Descriptive statistics is a brief description of coefficients that usually summarize the given data set. This can either be the representation of a sample of the population or the entire population. This type of statistic is broken down into measures of variability or speed and measures of central tendency. The measures of central tendency include median mode and mean. The measures of variability or variability measures include the maximum and minimum variables, standard deviation, skewness, kurtosis as well as variance. Descriptive statistics helps in describing as well as summing the data set. The measures of central tendency in descriptive statistics help to describe the center in the data set. The dispersion of the data in the set is measured with speed or variability.
Inferential statistics
Inferential statistics use the measurements from samples in subjects in the experiment to compare the group treatment and also to make a generalization for the larger population. There are different types of inferential statistics and each of them is inappropriate for a certain sample characteristics and research design. To find the right or appropriate statistical test for the experiment of the concern the researchers must consult experimental designs as well as the statistics and numerous texts. As the sample size becomes larger, it is more likely for the statistics to indicate the differences that exist within the treatment groups. So, it can be observed that the larger sample of subjects is more powerful in respect of the statistics. Also large companies like Air Canada, it is more likely to opt for the larger sample, as it provides more accurate data and statistics which in turn help in the accurate judgment of the performance of the concern(Air Canada, 2022).
Measuring Association
The measuring association refers to the extensive variety of statistics that generally quantify the direction of a relationship between outcome variables and exposure and strength. It also enables comparison among the various groups.
2.3 Application of descriptive analysis
Companies like Air Canada use descriptive analytics in many parts of their business. To evaluate the efficiency of the operations and whether they are following the right track to attain the business goals, descriptive analysis is used. The financial department of Air Canada tracks the common financial metrics which are produced by following these analytics. The metrics like expenses and quarterly revenue growth are evaluated on this basis. The metrics that are produced by descriptive analytics are used in reports, dashboards, and visualization. Reports confirm key metrics that are included in the financial statement of the company. Different aspects of the performance of the business of Air Canada are also highlighted using these analytics(Air Canada, 2022). By displaying or presenting the metrics in graphs and charts, the impact can be communicated to a wide group of audience. Dashboards used by the managers and employees of Air Canada help them track their progress and also allow them to manage their daily workload(Air Canada, 2022). The descriptive analysis provides information and insights regarding historical trends which helps in tracking sales growth over the years. The current performance of the business of Air Canada can be measured by analyzing the sales revenue. Air Canada can also measure their performance with their competitors. They can compare performances with the average of the industry they are operating in and can also compare with published data of other companies.
2.4. Application of Exploratory Analysis
The major companies like Air India which operates in a wide range, should not omit the step of EDA. As it allows them to analyze the proper model and interpret the correct results as well. The Exploratory analysis supports finding erroneous data or missing data, in some cases. An insight regarding the dataset is provided in the business with the help of EDA. Identifying the important features in the dataset can also be done. Estimating the parameters of Air Canada and evaluating the associated intervals can be done with this analysis process(Air Canada, 2022). This analysis supports the IT department and provides extreme value to the business to interpret the correct result that matches the context of the business of Air Canada. Many data connectors are available that help the concern to incorporate EDA into the business intelligence software.
2.5. Application of Confirmatory Data Analysis
Traditional statistical tools, for example, significance and inference are used to evaluate the evidence. Confirmatory data Analysis followed by Air Canada involves variance analysis, regression analysis, testing the hypothesis, and producing the estimates with a certain level of precision. The CDA is where the company puts its arguments and findings to trial. This special form of factor analysis is commonly used in social research(Amrhein et al. 2019).
3.1. Business Planning for Quality
Air Canada is the largest airline company in Canada and the company has generated 538.3 cores of CAD revenue in the financial year 2020. Air Canada uses many business methods in the company to increase revenue and profitability factors. The management of Air Canada analyzes the operational and financial conditions of the company to implement a better business plan to increase service quality (Air Canada, 2022). Air Canada has many subsidiary air service provider companies, which generally increase the company’s service quality. On the other hand, these subsidiary companies generate a good amount of profit every financial year, which helps the company to enhance service quality. Air Canada Express, Air Canada Cargo, and Air Canada Acheson is the most popular and most profitable subsidiary company of Air Canada Airlines (Air Canada, 2022).
Air Canada is trying to increase the quality of services, the statistical calculation has been calculated and according to the calculation, the range value is 12,941 which represents the central tendency of the data. Other than that, Air Canada is generally focused on competing effectively in the leisure market in Canada. Thereafter, Air Canada follows the Global Reporting Initiative (GRI) to increase its service quality, and because of that reason, the company is making a good amount of profit (Asq, 2022). On the other hand, Air Canada Company can apply Regression Analysis to improve service and business quality. The regression analysis uses the financial data to increase the reverie which helps the company to increase the quality of the business Ans well quality of the existing services.
3.2. Business Planning for Inventory
Inventory analysis is the most important aspect of the company that helps the company to maintain its cash flow in the company on a day-to-day basis. Inventory analysis helps to determine the right amount of stock kept on hand and how much stock a company needed. Inventory management also evaluates the company’s stock level. In the addition of finished goods which includes raw materials. Inventory management is associated with producing goods and material dispatch. Inventory management of a company helps to increase the profit margin of the company. Proper inventory management can decrease storage-related issues and expenses. Air Canada company can use the First in first out method in the company to manage the inventory(Air Canada, 2022). Inventory management helps the company to reduce its capital cost of the company. Other than that, Air Canada company is using the Descriptive statistics method, to increase the inventory quality (Research-methodology, 2022). The descriptive method identifies the trends in the company which helps to manage inventory in the business on a day-to-day basis.
3.3. Business Planning for Capacity Management
Air Canada can apply the Capacity Analyzing method in the company to increase the capacity of the business. Other than that, Air Canada company can apply to Measure Association method in the company to increase the capacity management of the company. Measuring association statistics increases the qualified relationship between data that analyze the potential capacity of the company (Britannica, 2022). Air Canada company can use this method to increase the flight capacity which may increase the revenue and cash flow of the company.
4.1. Descriptive statistics
Air Canada is a Canadian airline company that increases its profit margin by using the descriptive statistics method. The descriptive method identifies the trends in the financial report of the company to analyze the company’s performance and revenue per year. Descriptive statistics generally revere to analysis, presentation of findings, and summary of the company’s financial statement. According to the annual report of the company, the company has generated a good amount of profit in the financial year 2020, on the other hand, the company has lost its revenue in the financial year 2021 because of the covid 19 pandemic.
4.2. Inferential statistics
Air Canada company also uses inferential statistics to analyze the company’s performance. Other than that, the company used this method to analyze the risk of the company. According to the calculation, Air Canada company has increased its cash flow in the financial year 2020 and 2021. Although, Air Canada is suffering from high debt rates in the company which is a matter of concern for the company (Amrhein et al. 2019). The company needs to reduce the debt rate in the company and manage the cash flow in the company.
4.3. Measuring association
Measuring association is the quality check statement for the company and Air Canada company applies the Measuring association in the company to evaluate the company’s operating profit. Air Canada company has a high amount of net debt and it can decrease the company’s goodwill value as well as its portability factor in the company (Wiegreffe et al. 2020). Most of the time companies use the measuring association to identify the potential trend in the company to solve the issue regarding financial services.
4.4. Justification of rationale of the method of communication
The above chart shows descriptive statistics regarding statistical methods that involve variables and it shows findings that are related to Air Canada's descriptive statistics. However, this evaluates the company’s techniques that will evaluate its findings regarding techniques of Air Canada. The opinion of Amrhein et al (2019), states it helps and allows companies to visualization of data for the organization. This helps to evaluate its key findings to understand requirements and interpret valuable information in the organization.
The chart shows mean, variance, and also t-sample tests to analyze organizational development. This explains the valuation linear line equation and will evaluate according to its variance. According to the chart mean for 2012 and 12114, evaluates at a range of 2017 and 12180 respectively. According to the company's descriptive analysis, it reflects on variance which had also observed its variance.
According to (Ivy Panda,2022), Air Canada is facing issues that involve environmental challenges, recession, and securities challenges. These are the biggest challenges for Air Canada due to its dominant market values. These issues affected the organization as it faced attack and bankruptcy in the year 2004. However, this caused major challenges for Air Canada which had faced organizational and financial challenges.
The above charts show the mean, median, and statistical analysis of Air Canada which reflects on its organizational performance. However, it evaluates on reduction that has evaluated its maximum, and minimum reflects on its financial position. According to its statistical analysis, it reflects on organizational benefits and challenges that had been faced by them. Variance in the organization reflects on financial hypotheses which will develop financial analysis and help to retain losses (Routesonline,2022). This causes issues regarding financial and organizational effectiveness that would develop to organize the work structure and also requires the development of an organization.
According to Ivy Panda (2022), it reflects on its profit margin, which had been reduced due to bankruptcy. However, Air Canada needs to evaluate its development strategies and also needs to implement organizational efficient strategies. They are required to implement effective business strategies that would help the organization to mitigate challenges that have been faced by them. However, Air Canada also needs to acquire effective organizational arrangements which would help the organization to develop its financial condition.
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