Assignment on MBAF 502- Quantitative skills for business indicating huge price variations in their product prices

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MBAF 502- Quantitative skills for business


Air Canada can be regarded as the biggest provider of the schedule services passenger in Canadian market or the Transporter market of US and Canada as well as in international market from and to Canada. In 2017 the main line Air Canada has operated fleet of the 175 aircraft which included almost 75 narrow body Airbus, 25 Embraer, 73 Airbus of wide body aircraft 190 regional Jet and two Boeing narrow body aircraft (Canada, 2019). Air Canada has basically announced its transport and domestic network by capacity purchase agreement together with other regional Airlines. West Jet Airlines Limited is also one of the Canadian Airlines that was founded in 1996. It started being the least cost alternative to other major airlines under competition. It provides charter and schedule your services to almost 127 destinations within United States, Canada, Mexico, Europe, Caribbean and Central America ("About us | WestJet", 2019). 

Purpose of the paper is to analyse economic condition of Canada and how it is interrelated to the performance of Air Canada and West Jet Airlines. Various statistical measures have been used for describing the inter linkage between the financial performance of the two Airlines with Canada’s economic variables. 


Data which is mainly gathered about the two Canadian Airlines are- total revenues which is the quantity and total expenses which is the price. Quantitative data has been gathered from the websites of two airlines considered in this study. Secondary method of collecting data has been used as various journals carrying information about the airlines are considered. Simple index is basically ratio of the two values that represent similar variable as measured on the two distinct situations or under two distinct periods. For instance, the simple index number for price shall give a relative variation of price within the reference and current period. In the paper of variation between the prices of two Canadian Airlines have been shown with the help of three different index method calculations.   


From the above study it is therefore clear that Air Canada and West Jet contribute much in the output of Canada however they have huge price variations in their product prices. Revenues or prices of Air Canada is higher than that of West Jet but also the expenses are higher. It is evident that both prices and quantities of the airlines had a huge difference in them. This can be the effect of sales and popularity of the airlines. However, expenditure must be less in order to increase the profit which is a pros in West Jet. According to the data, inflation rates had ups and down in Canada and as a result it had some impact on prices of both the airlines. 

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