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