Date Published: 
04/02/2012

Air Canada Jazz is a contract airline. They operate planes, whether they own ‎them or not, flying them as agreed in a contract with their client. Their biggest ‎client is Air Canada who uses Jazz to fly smaller planes to smaller markets.  ‎Most Air Canada flights outside the big eight cities in Canada involve a Jazz ‎flight.‎

One of Jazz’s key diversification strategies has been to recruit other ‎companies, and it was good news when Thomas Cook signed up to have Jazz ‎operate its vacation-bound planes.  But changing circumstances have left ‎Thomas Cook looking hard at its business model. They were hit hard by the ‎Icelandic Volcanoes that stopped European flights several times.  They made ‎a business decision to eliminate their dedicated fleet of six B757 aircraft.  ‎And along with that, came the logical consequence that they no longer ‎needed a contract operator to fly them.‎

While a Thomas Cook spokesperson spoke well of the Jazz partnership, Jazz ‎is likely still looking for new and more lasting ways to diversify its business ‎away from its biggest customer.‎

 

Risk Management Perspective: 

Big business changes can arise from situations at your clients.  Staying on top ‎of that for key clients may help manage key risks. ‎

 

Industry Group: 
Growing Companies
Industry: 
Airlines
Country: 
Canada
Risk Class: 
Strategic
Risk Type: 
Business Strategy (Model)
Risk Type: 
Client Defection

Copyright © 2010 RiskOnBoard All rights reserved. Designed by CERAiT.com v2.1 Feb 02, 2011