Porter Airlines: We Want to Fly You Further

Description

In 2013, the chief executive officer of Porter Airlines, a Toronto-based regional airline, announced an expansion project to expand the airline’s destinations. The project required that Porter Airlines expand its fleet of jets to accommodate longer distances, and that its transport hub, the Billy Bishop Toronto City Airport, be renovated. The airport was governed by a tripartite agreement between the federal government, the City of Toronto, and PortsToronto; any amendments to the agreement required a consensus of the three governing parties. Despite active petitioning, the federal government announced in 2015 it would not support an amendment to the agreement. Should Porter Airlines continue to petition? Or should it consider alternative options to achieve growth?

Learning Objective

This case is suitable for use in several business courses, such as strategic management, business policy, and strategic decision-making, at both the undergraduate and graduate levels. After working through the case and assignment questions, students will be able to do the following: ·Analyze an airline company’s strategic expansion plan ·Understand how an airline company accomplishes a strategic shift by expanding its service offerings ·Assess challenges to a firm’s ability to manage its regulatory environment ·Evaluate the benefits and costs of different strategic alternatives ·Identify different stakeholders and conflicting interests associated with a firm’s strategic action

Keywords

airlines expansion and growth LCC low-cost carriers regulation