Executive Summary Porter Airlines is a new entrant in the Canadian airline industry. The airline uses Toronto City Center Airport (TCCA) as the hub of its operations. During the early years of its existence, Air Canada was Porter’s major competitor. Porter is the first airline to push Air Canada out of the market. Air Canada currently operates from Lester B. Pearson International Airport. In the absence of Air Canada, Porter has improved the quality of its services, which has increased the competitiveness of the airline in the market. Porter differentiates its services on the basis of their quality and convenience of the flights. Porter is both the tenant and landlord of terminal and hangar buildings. This enables the company to maximize the efficiency of its operations. Despite the current success of the airline, it is evident that the future may bring several problems. Future entry of Air Canada can increase competition. In addition, continued development of TCCA lacks political support. Porter relies on the continued development of TCCA for its growth. Therefore, lack of development of the airport hinders the growth of the airline. This necessitates the airline to devise strategies that would enable it to venture into other markets to reduce its overreliance on TCCA. Venturing into other markets requires the airline to have enough funds to counter competition from airlines that are dominant in the markets. Therefore, the company should launch its IPO, before venturing into other markets. The IPO will provide it with additional capital, which will enable the airline to venture into the markets successfully. In addition, the airline should use quality and convenience of its flight schedule to differentiate its services. This will make the company able to attract customers in the frequent business traveler segment in the new markets. Problem Statement Porter Airlines is a relatively young company. The airline has enjoyed considerable success since its inception. Strategic planning by the company’s founder, Robert Deluce, has enabled the company to become successful in areas where other airlines have failed. Porter operates the bulk of its flights from Toronto City Center Airport (TCCA). Prior to the entry of Porter Airlines into the market, Air Canada was the dominant player in the Canadian market. Air Canada used predatory practices to push out competitors on several occasions. Air Canada had funds to sustain stiff competition from other smaller airlines. The company did not find TCCA as an attractive market. This is the major reason that made Air Canada lose its stranglehold on the airport. This facilitated Porter’s entry into the market. However, Air Canada would like to return to the market through its major subsidiary, Air Canada Jazz. This necessitates Porter to brace itself for stiff competition. It is a fact that the competition will reduce Porter’s profitability. Air Canada will use all its resources to push Porter out of the market. However, Porter has a competitive advantage that other airlines pushed out of the market by Air Canada did not have. The company has controlling rights on hangar and airport buildings. Porter may use this to improve its competitiveness or restrict the competition from Air Canada. In addition, Porter has funds to enable it to overcome stiff competition from Air Canada. The size of TCCA restricts Porter’s