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a.Sample Midterm Case- Air Canada.S11

a.Sample Midterm Case- Air Canada.S11 - SAMPLE EXAM CONCEPT...

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SAMPLE EXAM CONCEPT APPLICATION/CASE WITH TWO QUESTIONS Turbulence in the Air: The Case of Air Canada 1 By the end of 2001 things were looking pretty grim for Air Canada and its chief executive, Robert Milton. A horrific attack on the work trade centre in September changed world opinion about airline travel. By the end of October 2001 Milton had laid off roughly a quarter of his staff and analysts were suggesting that Air Canada would very soon run out of cash. Milton was very clear in his message to the Canadian Club in Montreal – the airline industry and therefore his company was in a state of chaos and potential disintegration. “Costs are staggering”, he said “but the revenue falloff is much more dramatic. The fact is that without government intervention, many airlines around the world will be out of business.” In April 2002 a further blow was dealt to the already ailing airline industry when a ‘new’ disease SARS hit newspaper headlines. Toronto was identified as a major area of concern with a growing number of cases reported on a daily basis. Moreover, flights between Canada and other popular destinations such as Hong Kong and Singapore were cancelled. At the time it seemed that matters couldn’t get any worse.
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