Porter Airlines

Executive Summary

This paper will delve into a strategic analysis of Porter Airlines. First, an overview of the main issues facing Porter Airlines is presented, these include: the ferry servicing its primary hub, the opposition from Toronto’s downtown residents, the hub airport’s runways are too short, the landing difficulties of the hub airport, the 11:00PM landing curfew, the airline only flies to eastern locations, and the planes are limited to a 500-nm radius of the hub airport. After reviewing these issues, Porter’s strategic decision is presented as how Porter can grow financially by expanding the clientele that it services, while still maintaining its customer value proposition of convenience, speed and service. Three alternatives are identified: move the company’s headquarters to the Toronto Pearson International Airport, maintain that status quo and establish a secondary hub in Winnipeg; along with a discussion of the advantages and disadvantages of each. The suggested course of action is to establish the secondary hub in Winnipeg. The venture will be financed through equity, and Mr. Robert Deluce will lead it.

Key Issues

· The passenger only ferry access to Billy Bishop Toronto City Airport (BBTCA) is restricting Porter Airlines’ ability to expand.

· Porter Airlines (Porter) has experienced opposition against its operations from downtown Toronto residents based on safety, noise, and air pollution.

· The BBTCA’s runway is too short for Porter to operate its planes at their full capacity, or to consider using larger planes.

On 2013-03-10, at 3:17 PM, Rachel Shapiro wrote:

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