Category: Airlines

Ryanair’s strategy

Ryanair’s objective was stated in order to position itself as Europe’s most successful low-fares scheduled airline through sustained enhancements and expanding suggestions of its low fares facilities. Ryanair chases to suggest low fares that produce augmented passenger volumes. A steadfast concentration on cost repression and operating competencies is a key division of the Ryanair method of performing objectives. Some of the principal components which make up Ryanair’s tactics are the following.

Low fares

These are used to stimulate demand. This point of the strategy aims to fare realizable spare time or business trekkers who might not travel whatsoever or retort to the other methods of transportation such as auto, motorbus, or trains. The significant point is that Ryanair vends seats on a one-way foundation, thus undermining minimum stay necessities from all travel on Ryanair planned services without taking into account of fare. Ryanair adjusts fares on the origin of the command for some exact flights and by orientation to the time which stays left to the departure date of the air travel, with higher fares imposed on flights with superior extents of demand for bookings made earlier to the departure date.

Frequent Point-to-Point Flights on Short-Haul Routes

Ryanair offers regular point-to-point service on short-range directions to derivative and regional airports in and around major inhabited centers and travel directions. Ryanair’s arranged flights for an average of approximately 1.94 round tours daily per route. The selection of only short-range flying routes permits Ryanair to suggest regular service while undermining the requirement to offer frill overhauls otherwise anticipated by purchasers on longer trips. Point-to-point flying permits Ryanair to evade the charges of offering through service for linking passengers, entailing baggage transportation, and transit traveler support charges. This may be regarded as one of the main distinctions among Ryanair and other conventional carriers.

Customer Service

Ryanair’s tactic is to provide the best consumer service presentation in its examination group. In accordance with reports by the Association of European Airlines and the airlines’ own issued information, Ryanair has gained better promptness, less frequent missing luggage, and fewer annulments. Ryanair attains this by concentrating exactly on the performance of these services and by acting on the airports beyond the competition.

Choice of routes

Ryanair supports derivative airports with expedient admission to the most inhabited centers and local airports. Initially, these have more reasonable admission and handling charges but also offer a higher charge of on-time departures, less frequent terminal delays, and quicker revolving periods. The fast revolving period is a principal element in Ryanair’s attempts to exploit aircraft usage. This permits Ryanair to not only save the funds but also helps to benefit and increase the revenues.

Low Operating Costs

Management suggests that Ryanair’s operating charges are among the lowest of any European passenger airline company. There are four key expenditure points which Ryanair is capable of regulating and/or decrease and consequently does everything possible in this direction:

1. aircraft equipment prices;
2. personnel expenditures;
3. customer service prices;
4. airport access and handling charges:

Personnel Productivity

Ryanair attempts to regulate its employment charges by repeatedly recovering the efficiency of its already highly creative workforce. Payment for workers highlights efficiency-grounded pay inducements, entailing commissions for on-board vends of products for flight assistants and payments grounded on the number of hours or segments flown by pilots and cabin crew workers within restrictions set by industry touchstones or directives fixing maximum operational hours, as well as partaking in Ryanair’s supply alternative strategies.

Michael O’Leary for the job he has done as CEO of Ryanair

Ryanair’s Michael O’Leary (chief executive of Ryanair) likes taking people by surprise. He focused on making profits rather than giving importance to low fare than competitors. Managers perform interpersonal, informational, and decisional roles in their jobs. In full-filling the interpersonal role, managers act as figureheads by performing ceremonial duties, as leaders by motivating and encouraging workers, and as liaisons by dealing with people outside their units. In performing their informational role, managers act as monitors by scanning their environment for information, as disseminators by sharing information with others in the company, and as spokespeople by sharing information with people outside their departments or companies.

In fulfilling decisional roles, managers act as entrepreneurs by adapting their units to incremental change, as disturbance handlers by responding to larger problems that demand immediate action, as resource allocators by deciding resource recipients and amounts, and as negotiators by bargaining with others about schedules, projects, goals, outcomes, and resources. In some parts of Europe, which have been far more supportive of low-cost carriers, the real beneficiary have been the customer. The danger, of course, is a future low-cost carriers’ bloodbath, as predicted by Ryanair CEO Michael O’Leary. Low-cost entrants with poor business plans and a lack of adequate funding may bear the brunt of that. Another danger, of course, is that these carriers may price themselves at levels well below their costs to make up for the ground being recovered by the network carriers. A strong Euro offering a partial hedge for rising fuel prices may not last long. Add to this the impact of high-speed rail in Europe, and break-even at best suddenly sounds very positive indeed.

Ryanair strategic vision

Strategic headship improves a company’s sustainable competitive benefit through its visualization and estimations, cultural environment and climate, headship, arrangements, and control schemes by means of the implemented strategy. Overcoming the troubles started by lack of planned simplicity and concentration, inadequately supported plans, and restricted viewpoint is no easy assignment. Nevertheless, by breaking down tactical management into what it entails, who does it, and how it appears, executives can promote bigger intentional clearness, make stronger links among policy and planning and strategic planning, and expand their viewpoint. This will, in turn, donate to their company’s prolonged achievement.

The strategy entails an incomplete innovation procedure obtaining both top-down and bottom-up components. To put it variously, it is suggested that lots of people play a part in leading their companies intentionally.

Strategic performance is the grounds by which a corporation takes appropriate, important, and organized action grounded on the insights and realization excluded from effectual tactical planning. Frequently there is only restricted time for profound strategic elaboration before action is entailed, so tactical thinking and strategic performance go hand in hand, and everyone informing the other to advance the overall result. Another significant component of strategic acting, included in the everyday practice by Ryanair, entails performing conditions for others in the company to perform strategically also. One of the most significant ways of performing this is by adjusting clear priorities to assist in synchronize action across the venture and offer the ground for acting determinedly. Tactical impacting is about creating circumstances of clearness, pledge, and cooperation by means of management and arrangement. The capabilities of tactical thinking, performance, and impact are what ‘defines’ approach as a studying procedure in corporations.

Ryanair’s financial performance

Operating profit showing an increasing trend for the three consecutive years (2005-2007). But operating expenses is very high in the year 2006 and very low in 2007 when compared to the year 2005-2007.

Market Watch reported that Ryanair Holdings, Europe’s largest low-cost airline, warned that the Irish air carrier’s profit would rise only 5 percent next year, compared with 42 percent growth in fiscal 2007. (Industry News: RYAN’S PROFITS EXPECTED TO SLOW, 2007)

Changes in the European airline industry

The emergence of low-cost scheduled carriers in European aviation has attracted attention from business and leisure travelers as well as from established carriers. Examine the low-cost carrier in terms of their operating features considers implications for European transport markets. Relevant aspects of the operating environment of European airlines are then examined. An analysis of the USA situation in relation to low-cost carriers is also provided. It is suggested that further research into the development of budget air travel in Europe needs to be undertaken. Airlines have learned to fine-tune alliance relationships to make gain-sharing more equitable. The airline industry is globalized, and circumstances have changed. Increased competition and financial problems have led to the introduction of new service concepts and intensification of work on behalf of the workers. Working with the airline industry is often presented with an aura of excitement and glamour. Punctuality, precision, and total overview were important aspects of the job. The regional airline sector is one of the most dynamically growing sectors of the European Union’s newly liberalized Single Aviation Market.

And it explores the relationships between regional airlines, liberalization, and the concurrent globalization of the air transport industry. It seeks to define the roles of regional carriers in this rapidly changing regulatory and business environment, one that is being further transformed by important technological innovations in regional aircraft. Finally, the discussion examines the changing network operations of the region as they seek to define and maintain their roles within the wider and still very fluid with liberalized and globalized contexts in which they increasingly operate. Low-cost carriers are an increasingly important part of the European aviation industry. Airport choice is a crucial factor in determining their success or failure. While research has been conducted into airport choice factors, their relative rankings have not previously been investigated. Further analysis reveals different requirements depending upon airline characteristics. This implies that airport managers need to tailor their service offering to individual low-cost airlines rather than treating the sector uniformly. The modifications happening in the aviation business have been causing significant troubles for airlines recently. For lots of airlines, endurance depends on their capability to enhance new business replicas to facilitate them to modify to the adapted situation.

Success factors in the European airline industry

The learning purpose is to realize how the top manager (CEO) is accountable for ensuring the long-term enduring of the firm within its aggressive surroundings. Critical Success Factors (CSFs) have been applied essentially to classify a few central components that companies should concentrate on to be triumphant. An industry’s set of features classify its individual CSFs. Thus, various industries will thus have various CSFs. CSFs are applied by companies to concentrate on a number of components that assist in defining their success. They assist the government and its employees to realize the essential parts in which to invest their finances, time, and resources. Preferably, these CSFs are evident in terms of the influence on the company to permit it to have ruling and suggestions on its accomplishment of them. CSFs can be used in both: the company and the individual ranks.

Their classification is principally qualitative and can outline in varying outlooks in pointing them. However, it is an advance that should be chased as it offers estimation in giving relevant focus to a restricted adjustment of components, which are considered to be the most essential for a company or person. The capability for airlines to succeed nowadays is gauged in accordance with some essential success features. Classifying an aim market share is crucial for strategic aim adjustment. Overall the universal decisions drawn from the consultation were that tactical coalitions require significant concentration and organizational opportunities and capabilities by means of the complete stage of their subsistence to be successful. They require being obviously concentrated in their goals and in the productivity indicators expected from the endeavor by the partners comprised. Consideration also needs to be paid constantly to a wide range of both internal and external compatibilities and influences both specific to the industry and business and to the alliance relationship itself.

Policies, practices, business principles, and procedures Ryanair’s strategy

SWOT and Porter’s five forces examination of the company is performed. Recommendations are offered to chase competitive benefit in part for Ryanair. Deliberate examination of Ryanair by studying the circumstances in which Ryanair is acting, its consumer anticipations, its aims, resources, and capabilities with the assistance of PESTLE, Porter’s five forces, and SWOT analysis. PESTEL is a contraction for the six main intentional spheres of transform: Political, Financial, Social, Technological, Ecological, and Legislative, and a technique for realizing the different exterior impacts on commerce. Each solitary sphere has the possibility to essentially modify the aggressive atmosphere the company acts in

Ryanair’s management

Human resource management plays a key role in the success of the operations task in training and motivating the right kind of personnel for the organization; human resource management is responsible for how people are treated in an organization, helping them perform their work and solving problems that might arise. Overall, it seems that there is no motivation from the employees because Ryanair does not seem to know how to motivate their own staff, which leads to low morale because they are certainly not satisfied. This again leads to poor work, absenteeism, and high rates of turnover. Ryanair follows the normal procedure of recruiting new staff starting from advertising and vacancies to interviewing and testing and then training, but it does fall out on the proper training and development some staff has to pay for their own training. They arrange interviews by sending out letters to successful applicants where the interview is held at a venue, and everyone has to go through a test those who are successful are to be interviewed.

The successful interviewers will then be recruited and trained by Ryanair. Training and development might be poor, but it has to be understood by Ryanair that training opportunities provided by them can help create personal job satisfaction and help them retain their personnel. It does not seem that Ryanair itself put much effort into the training procedure, and therefore many employees get unmotivated, provide poor work results, are rude to customers because they are stressed out and might not know how to deal properly with their tasks because the training has been poor and as a result, to that, they leave their jobs. The staff is underpaid, and it would be a good idea if Ryanair would go with a union. This will help the employees having to secure that there will be help if they might need it, and the employee’s salary might increase. Different solutions are there to help motivate their staff, for example, by giving them incentives such as rewards and bonuses or facilities such as gym memberships. This will help them feel appreciated and valued for the work they produce. As a last note, to forget customers will also be treated better, which decreases the chance of losing the business and boosts up the reputation and image of Ryanair.

As Ryanair’s direction works on its takeover proposal for Aer Lingus, displeased Ryanair workers across Europe are campaigning difficult to attain union gratitude, which they say is being rejected by the low-cost Irish transporter. (Airline Business: Ryanair Finds it Hard to Change. 2005).

Conclusion

Ryanair is one of the world’s largest airlines in passenger numbers and one of the original budget or no-frills airlines. It provides great growth to its shareholders and is most welcomed by cost preferring customers. Ryanair is regarded to be a European low-budget airline company. This makes a contestant group including other European no-ruffles airline companies and low-budget sub trademarks of conventional airlines but eliminates full-service airlines. Ryanair’s expansion has been outstanding over the past years, to the level that it now competes Aer Lingus in terms of all over passenger amounts and market share on its key destinations. The regressive policy of management at Ryanair of rejecting to identify the essential right of employees to have their professional representatives recognized is wrong for the company and the business.

Bibliography

Airline Business: Ryanair Finds it Hard to Change. (2005). [online]. Flight International.com. Web.

Article: The Subjective Perception of Risk, by Mark Fenton-O’Creevy and Emma Soane in Pickford (2001), Mastering Risk Volume 1: Concepts.

Article: The Boardroom Imperative on Internal Control, by Anthony Carey and Nigel Turnbull in Pickford (2001), Mastering Risk Volume 1: Concepts.

Annual report and financial statements 1999, 2000, 2001, 2002, 2003.

Average Turnaround Time for traditional carriers; NCB Stock Brokers Ryanair Company Report, 22 September 2003.

Central Route Charges Office EUROCONTROL, Conditions of Application of the Route Charges System and Conditions of Payment, November 2002 Doc. No. 02.60.02/1 (BP).

Industry News: RYAN’S PROFITS EXPECTED TO SLOW. (2007). [online]. AOPA ONLINE. Web.

Pickford J (2001), Mastering Risk Volume 1: Concepts. Pearson Education Ltd. Harlow, UK;

Introduction

American Airway was established in 1920 and later in 1934, it was formed to become American Airline. American Airlines is one of the developed industries worldwide because of its participation globe-wide in the business. Since its establishment, it has grown up to have a complex structure of management. It has several departments which run its management to make a profit and to work efficiently. An example is in 1982 where AMR Corp was introduced and became the holder of American Airlines. This was followed by AMR services formed in December 1983 which was a subsidiary to provide the Airline with aviation services to support other airlines. In 1992, AMR Consulting Group was formed as a subsidiary which expanded to be an airline training school and also consulting group. In 1993 the AMR Corp introduced the SABRE Technology Group which included the department of the Information Services (ARMIS), STIN – SABRE Travel Information Network, SCS- SABRE Computer Services, SDS – SABRE Development Services, and risk assessment/project consulting units. The American Airline completed its work of the spirit of SABRE in 2000 to manage itself. The chairman who was elected was Gerard J. Arpey to head the ARM cooperation and the airlines in 2004

For American Airlines to succeed it has got different departments to have it run efficiently and give it profit. The different departments are run by different staff. The cooperate management or structure in organizations includes the Board of Directors, AMR Corporation officers, Core businesses, American Airline senior management, American Beacon Advisors, American Airline management, and American Eagle management.

According to International Banking, AMR ranked 902 worldwide as recorded by Forbes magazine and 312 (in2006) in the 500 fortune Global list.

The departments in American Airlines are different and carry different businesses, the businesses within the structure of cooperation include American Airlines, American Airlines cargo, American Airline travel beacon advisors, and American Airlines Eagles. We have also different facilities within the Airlines, which are the Flagship University, American Airlines C.R Smith Museum, American Airlines Travel Academy, and American Airline Flight Academy.

The statistics show that American Airlines holds $29, 4495 million in terms of assets, it has 88,400 staff members and it operates in all six continents worldwide.

The airlines have provided comp ability, convenient, safe dependable, and friendly means of transportation to its customers. The demand of the customers depends on the hospitality of the airline. The airline on these conditions has taken measures to ensure that their customers are safe. They provide this service by ensuring that the aircraft are maintained well. The territory across the airlines is safeguarded to give proper security measures.

In June 2007, DOT -Department of transport was submitted with a service plan which gave the issues concerning the customers. This included the reduction of the fare, accommodation of the customers, provided the baggage liability, the ticket refund facilities, and the frequent flyer program-AAdvantage (www.americanairlines.co.uk/)

In the transportation sector, the airline provides passenger services and cargo services, it started using Curtis condors in 1934 and it has expanded to have the current efficient aircraft. Despite the fall of many aircraft for the past years, American airlines have played an important work in the aviation industries in the United States. For example, it benefited when the eastern airlines collapsed as it acquired the routes in the eastern to Latin America. In the year 1992, it became the major airline when the pan AMTWA and eastern collapsed. At the start of the millennium, the American airline with united and delta have remained among the powerful three passenger-carrying services in the united state, recently the American airline bought the TWA in 2001, and it has planned to operate it (TWA) as a subsidiary until when it has integrated all of the TWA’S staff and TWA’S operations.

American airways also have participated in the provision of cargo services. Despite some delays sometimes the management team has been ensuring that their customer’s needs have been ensuring that the cargo has been dispatched at the correct time. Also, the cargos are handled in such a manner that it pleases their customer. The storage system is well equipped which enables the cargo to be stored in a nice place example the AMR the handling arm of American airlines. The America airline has also participated in the transportation of the animals. This has promoted tourists in many parts of the United States and other countries worldwide cargo transport also offers the baggage allowance which makes it promote the industries as it attracts the customers hence promoting its profit.

As noted by Moody (2005) American airlines have targeted foreign routes to make a profit. It operates between the continents to have a wide market. The airline has co-operated with the United States airlines, British airway, and Virgin Atlantic airways along with other countries to expand the market for a profit.

In 2008 April, American Airlines had put in measures by checking electrical systems, it has replaced the carpets, examined engines and flaps for any defects or corrosion. This will ensure that there is security on the way and no risk of accidents on the way. The measures have promoted the industry as many customers will flow in due to the safety of the aircraft.

Another measure taken by the American airline is the cutting of the cost. This has promoted the sector by attracting many customers as many will prefer cheap costs as compared to expenses they will encounter in other airlines. By doing this American Airlines will meet its target by making a huge profit.

Regulation of irregular

The unions, businesses men, and members of congress suffer when the maintenance is not efficient. To have a regular schedule will give these people profit hence attracting them. American airline is ensuring that there is no irregular in its operations. This will attract many businessmen to use their flight hence giving them profit. (George, 2006)

Security- the American airline has ensured that there is enough security for its customers and facilities; the security guard is on the watch to ensure that there is no threat of insecurity within the airline or during the flight. The safety of this was attracted more market hence the profit the tide checkup of the terrorists have been its customer assurance of safety staff. American airlines have qualified staff members they do by training them before they can be given any job in the industry. This will ensure work efficiency and thus attracting customers. The staff is trained differently in various departments to ensure that each department gives quality services to the customers. The security staff ensures enough security in the airline and during the flight, maintenance services ensure that no wreckage of the aircraft or the facilities within the airline’s hospitality group ensures that customers are well taken and so on. The management teams on the other hand are well-qualified professionals. They have experiences that ensure that the airlines meet their goals and hence profit. The management team also trains and recruits qualified staff members.

Finance

American airline is among the world’s largest carrier and this makes it to have a large amount of finance and thus it need proper management to do this. The American airline has increased the revenue by reducing fraudulent ticket processing by finding quick and efficient data to query their warehouse. This exposed fraudulent ticketing and saved $5 million in the 5 years, also $250,000 was saved in developing costs and reduced the space in the storage. (George, 2006)

The American eagle, the American connection, and American airlines provide services to more than 250 cities (41) countries- it has 1100 airplanes and operates 4400 flights a day. This needs around 125 million documents annually in transportation. The large amount created by this data needs an efficient system that proper amount earned on the revenue ticket sale. This is not a small task.

The airline wanted to hire an outside consultant to custom build a data warehouse but it was estimated that it would be more expensive and introduced a Sybase technology. Sybase IQ is ten times than other competitors (two soft wares)

According to George (2006), the airline introduced the Sybase plus other warehouse technologies which gave efficient solutions. Sun microsystem helped in server and storage hardware, computer associates on the other side gave the report – generation software. This data was named RADAR. This has simplified the airline operation simply by adding more storage and loading system upgrades as the business grows.

The revenue Account Data access Resource (RADAR) has helped American airlines to detect fraudulent ticket processing, proper sale of track tickets and gives proper revenue also faster and looks into deep analysis besides storing a 113-month data and recording of the historic reports over a long period. The use of this system saved $250,000 compared to the outside warehouse data. The Sybase IQ saves about $15K per year and it has saved around $50 million by identifying forms of fraud.

The system has become the best practice in the company it has provided to business analysis, security analysis, auditors and reduced the amount of storage the airline auditors and refused the amount of storage the airline needs for a data warehouse example the Sybase IQ about 2 megabytes.

The airline has also realized that the IQ complete solution has advantages for its customers by detecting errors on tickets, improving cash flow, and thus lowering the cost of tickets.

Problems facing American Airline

American Airlines is facing a major crisis after a decade of reorganization since September 2001 attacks. The attacks made the Airline run bankruptcies. The company is then now forced to compensate the loss of that year by deducting from the current years. This gives the industry more challenge due to the expenses it will encounter by budgeting. (Joel, 2004)

The market shows that there is a default and bankruptcies rise and it shows that there will be tough to save more to replace the loss it has undergone through the crisis. The company needs therefore quick measures to stabilize it. The rising of the fuel prices has made this impact worse. The Airline is facing this problem because it must buy the fuel which costs thrice as much as the previous years. This makes the Airline face a big challenge in the market which is more competitors. It has to solve this problem by borrowing loans from other sectors and without good management of this fund the Airline will continue facing bankruptcies. (Joel, 2004)

Labor costs; – The industries are also facing another challenge of paying the staff members who are many at present. The cost of paying the workers has gone up twice as compared to the previous years. This has given many headaches to the managing team as the increased number of workers sometimes wants the pay increase which can lead the company to a big loss.

The decrease in consumer demand is another challenge to the Airline industry. The Airline is facing competition from other industries thus making it hard for the company to cope up with. The Airline must thus put the measure that will attract the customers. The measures can be the reduction of the fare, increase in the security guard, compensation of the lost items, and insurance of the consumers, and so on. These measures need a lot of money thus making the company spend a lot on its budget thus giving it a big loss in the end. (Joel, 2004)

Flight cancel is another threat facing the Airline industry in America. Every time you hear that the flight has been canceled due to weather conditions, terrorist attacks, or maintenance problems. This has given the industry a big challenge as it will go lose due to these factors. Some of these factors can not be prevented example when the weather changes. The Airline thus will have to cope up with the condition and compensate the affected customers or the delayed cargo.

Technical problems also do affect the Airline industry. American Airlines is facing a lot of technical problems with its facilities and the Aircraft. Accidents have always been happening since the innovation of the Airline. This has cost the Airline a lot as the demand reduces when the consumer knows that the accidents do happen frequently. This has made the Airline go for a very big loss due to lack of demand on the market. The company has taken measures to ensure that consumer demand is made. This has led to the Airline spending a lot of money and at times incurring losses.

Conclusion

The American airline has succeeded due to the measures it took on its management.

Staff member;- the airline has well-trained employees. It trains its staff members to ensure that they work to meet the requirements of the consumers. The well-maintained security ensures the safety of the customers, the maintenance of the facilities and aircraft gives the airline proper working conditions done by the engineering group while the hospitality group ensures that the customers are well taken off.

American Airlines has also provided the customer plan draft which gives the customer priority to the airline services. The plan has given the lowest fare available; it ensures that the customers travel together with their baggage. The plan also ensures the safety of the customer’s luggage by providing the bagged liability. Customers are also provided with accommodation in case of delays, cancellations, or diversion events. There is also a ticket refund services, flight with over sales, frequent flyer program-Advantage.

In the department of finance and warehouse, the airline has introduced the Sybase IQ. This has simplified the airline operation by adding more storage and loading system upgrades as the market grows. The system detects fraudulent tickets, proper sales of the ticket, and gives proper revenue.

The airlines have also been divided into various departments and each department plays its role. The allocation of funds to these departments ensures that there is efficiency in the working conditions of each department.

The airlines provide safe, dependable, friendly transport comfortable and convince way of transportation.

References

George, C. (2006).American airlines, New York, McGraw-Hill, pp.30 -40.

Gary, H. (2004). Hoover’s Handbook of American Business. Reference press, pp.154 -166.

Wilson, H (2003).current Biography. New York, H.W.Willison, pp. 662 -670.

Joel, L. (2004). The penny pincher’s passport to luxury travel traveler’s tales, London, Cambridge University Press, pp. 84-90.

Moody, I. (2005). Moody transportation manual. Moody’s investors services, pp. 636 -640.

American Airline, Web.

American Airlines Cargo, Web.

Overview

Airline transits have evolved into a preferred mode of transportation by travelers (Doganis, 2001). Airlines provide faster traveling options and safe transfers from one destination to another. In Saudi Arabia, traveling is considered a major activity for Saudis. There are several reasons that can be attributed to the increase in air travel in the country. Several business executives travel to attend company events and dealings. Students are also on the traveling bandwagon, as education becomes a priority in some regions.

It is evident that Saudi Arabia has become a major destination for workers from other countries and tourists. Saudi Arabia has a huge labor demand and millions of foreign workers come in and out of the country. On a more important note, Saudi Arabia has emerged as a tourist destination. The country’s rich history and tradition attract several tourists. In addition, Saudi Arabia continues to improve in terms of peace and order. These reasons are sufficient to push the demand for air transportation upward.

Company Background

The operations of Saudi Airlines started in the mid 1940s. During the firm’s maiden years, the operations are primarily concentrated on domestic flights. The Company gradually expanded the flights to cater to foreign demand. Initially, Saudi Airlines existed as a state-owned firm. In 200, however, the government has decided to open the study for future privatization. The company has been active in improving services by obtaining ISO certification and constantly changing the service provided to customers (Saudi Airlines, 2008).

At present, Saudi Airlines has the biggest fleet in the country. The recent modernization activities have introduced new airplanes to the company Saudi Airlines has spend $6 billion to upgrade the fleet by adding 61 new aircraft. Aside from the usual air transportation, Saudi Airlines also caters to individuals and firms that require cargo transportation. The company has a reliable cargo system that ensures commodity transfer without delays and damages. In addition, the company is also involved in catering services.

The Hajj

In the Muslim world, the Hajj is considered the grandest event. The Hajj is a pilgrimage to Mecca and part of the pillar of Islam. Muslims are required to undergo this process and the event attracts millions of believers worldwide. The event happens during the 8th to 12th day of the Dhu Al-Hijjah, which is the 12th Islamic month (Shariati, 2005). Although the Gregorian conversion varies, the event usually happens during the month of December. Some 2-3 million followers flock to Mecca to participate in this event.

Given the bulk of travelers during the month of Hajj, the demand for air travel also increases. This seasonal increase is critical in ensuring future company success. The Hajj is important for the airline industry in Saudi Arabia. The event provides the needed demand to boost revenues. Hajj is an event that commands global attention and admiration. A successful staging of the event will further boost the credentials of Saudi Arabia as tourist destination. The Hajj is also an opportunity for airlines to show their capacity. In this event, the market leaders are clearly identified by customers.

Statement of the Problem

Saudi Airlines experience several problems during the staging of Hajj. The most common complaints from clients include flight cancellations and difficulties in the reservation. In addition, it is observed that the sudden increase in travelers causes delay flight departures (Air Transport Department). The huge number of passengers also causes airports to be crowded. This provides discomfort, which is disliked by most passengers. Moreover, travelers complain about misplaced and lost baggage. Both local and foreign tourists experience these problems.

The subject being discussed provides several points of interest. The subject to be discussed will focus on Saudi Airlines’ efforts to provide quality transport service. The proposed research title involves the correlation of the Hajj to the problems experienced by Saudi Airlines in providing services. Saudi Airlines have been receiving several complaints during the year for numerous reasons. But the most interesting part involves the volume of complaints received during each month of the year. It is important to known if their significant difference in complaint volumes during peak and off-peak months.

The purpose of the study is to determine the varying volume of complaints received by Saudi Airlines. The data for the study will come from two sources. The first source will be Saudi Airlines’ complaints record. The second part comprises survey results provided by actual passengers. The most evident relevance of the study involves the potential action to be taken by Saudi Airlines to resolve the rising volume of passenger complaints.

References

Doganis, R., (2001), The Airline Business in the 21st Century, New York: Routledge.

Shariati, A., (2005), HAJJ: Reflection on Its Rituals, California: Islamic Publications International.

Air Transport Department, (2008), Rules and Regulation Governing the Carriage of Pilgrims by Air.

Saudi Airlines, (2008), About the Company, Web.

Introduction

Since the Wright brothers invented aeroplanes, technological advancements in this field have continued to flow with zeal and zest and in the process introducing machines in the world that have simplified the transportation problem that the world has been experiencing. The invention of the planes did not go in to commercial use immediately due to logistical issues, safety and other intricacies. Later on it took ground with the US being the first to experiment with commercial air transport in 1914. The service being offered by around five companies some of them still in the industry today such as Delta and Northwest Airlines. The trend was to take root also in the UK and Europe at large in the following years. By the early 1920’s commercial flights were common though passenger service was sporadic and could not sustain the airways companies and thus they tended to rely more heavily on transporting of bags and mail. During this time most of the flights were mainly domestic and over short distances as there were no long haul planes available by then. With the emergence of large aircraft manufacturing companies there was an increase in international flights, the most notable ones being made across oceans. Since then the industry has grown in leaps and bounds connecting the world effectively and bringing more meaning to the global village idea.

Achieving this fete has seen billions and billions of dollars all over the world sank into the development of this industry. One may wonder whether the benefits gained from this industry putting in mind the fatalities of air accidents and resultant losses met and continue being met are worth it. This paper is dedicated to discussing the industry at length in its usefulness in connecting the world against its effect on our lives and world in economic sense either in a positive or a negative way.

Current situation of the industry

At the moment, so many companies ply this industry that consumers of the service, an average of 2 billion fliers per year (one out every three persons) are lost in making choices. Its consumption as a service has been the most preferred one especially in international travel more so across continents forming gateways to the host countries and regions at large. The importance held in owning an efficient gateway that connects the world and the country involved have seen many governments controlling the main air carriers in their countries though there exists other private operators. Owning such is an attempt of maintaining a good national image and a country’s pride as ferrying of passengers form abroad is the first experience of the destination country that foreigners have. Countries that take pride in controlling their national image by owning an airline do so effectively and in the process there are good efficient airlines. Among the major players are American Airlines, Emirates, British Airways, and Swiss Air all of which are owned by governments. Most prominent private operators are Virgin Atlantic and KLM. (Conrady and Buck, 2008).

Contribution to economy

Positive

What makes air transport one of the favorite modes of transportation for tourists is still a wonder. However, we can make a few inferences by noting the efficiency and the speed of air transport. Tourists make arrangements to travel to their tour destinations during the holidays when they are not working or are not in school. It would therefore be expected each and every one of them will want to gain the maximum utility by maximizing on the time available for touring means that the involved will choose the fastest and most convenient mode of transport to the destination which happens to be by air. As earlier said, nations will thus use their national carriers as marketing tools to offer tourist attraction sites and facilities.

As an industry air travel is seen by many as a business venture that can plough in a lot of profits going by the air travel fares that the existing carriers charge. As shown in the above case in promoting national interests, governments are testimony in what the industry is capable of in creating and stimulating business opportunities. (Conrady and Buck, 2008) Many air operators concentrate considerably on holiday goers and tourists who provide a constant stream of customers. It therefore happens that countries that rely heavily on tourism in their economies such as Thailand continue to attract the services of many air operators and thereby marketing the country in other aspects that promotes economic growth in the recipient country. As a result of these externalities Thailand has moved from not only as a tourist destination but an investor’s destination in other industries.

It is obvious that large scale air travel operations calls for a complex airports. It therefore happens that a country bent on increasing the air travel industry has to ensure that it has constructed airports that can handle all sizes of airplanes as the larger the airplane the larger the airport has to be to ensure safety. In the US for example there exist numerous airfields both private and federal to serve the growing number of airlines and customers. The growth in the network of airports stimulates growth in other sectors of the economy such as road network and service industry. Previously inaccessible areas are opened up to civilization and development. (Wood, 2006).

Other ways we may say that air travel has contributed a lot is quickening transportation of aid and rescue mission workers in case of disasters and the supply of relief in such cases. Business has also benefited as it is now easier to transport perishables over long distances.

Negative

The cost of making aircrafts is prohibitive and time consuming. However, governments are willing to sink colossal amounts of money and take pride in owning or hiring a fleet of planes to serve the nation and the world. Such amounts of money for the poor and less developed nations could find alternative use that could be more beneficial than the pride of owning an airline company. These countries will go further and build airports to serve their fleet that will connect them to the world. The irony in this is that there is no guarantee that the venture is profitable and their viability as a business venture is only a secondary thought. As a matter of fact, the airline industry in its history in the world since inception has made a cumulative loss though the losses are usually compared to the stimulus it injects in economic growth. (Wood, 2006) On cases where governments do not own carriers they continue to offer subsidies for fleet development and airport construction.

Air safety and Terrorism

Since the September 11 2001 terrorist attack on the US, more and more passengers are a bit skeptical about air travel bearing in mind that the attack originated from a hijacked plane. The total deaths in the collapse of the World Trade Center and the crashing of the planes reached 2, 974 people. Such cases have been few though the rare ones are not of that magnitude. However the rare ones that occur and numerous scares have done the industry harm depriving the world economy the benefits of investing in this industry. But from another perspective we can say that the industry’s vulnerability to such cases of terrorism and hijacking is in itself encouraging and promoting terrorism. (Wood, 2006).

It is not rare to find people who shun away from using airplane as their preferred mode of travel in fear of planes and air accidents, the latter being the most common. However, comparing the safety of flying and other means such as by road and by rail you realize that flying is the safest. In fact flying is about twice as safe as rail travel and six times safer than road travel. But most people wrongly believe that if you are on a plane that crashes, then you are certain to die. For example, in the USA between 1983 and 2000, there were 568 aircraft accidents. There were 53,487 people on board in these aircrafts, and about 95% of them (51,207) survived. In general about 90% of passengers and crew members involved in aircraft accidents survive. Such a number could give us assurance on the safety of the passengers but not the recovery of the damages and losses incurred during those rare crashes. Some of the most memorable ones are March 27, 1977 Tenerife disaster that killed 583 persons when two aircrafts collided on the runway at Los Rodeos airport in the Canary Islands.

Environmental impact

In general aircrafts contribute to environmental pollution in many ways such as excessive noise and harmful emissions that contribute to global warming. The most prominent form of pollution is through the emissions. Measures have been put in place to reduce the emissions by making better jet engine and more refined fuels. But the increase in air travel over the recent years is canceling out the advances so far made in reducing the emissions. In the European Union alone for example greenhouse gas emissions from aviation industry rose by 87% from 1990 to 2006. A report published last month presented some of the key findings to the All-party Parliamentary Sustainable Aviation Group meeting held earlier in the year which revealed that between 2000 and 2025 the rapid growth in aviation globally is set to generate massive environmental damage. The number of people affected by aircraft noise is estimated to rise from 24 million to 30.3 million, emissions of nitrogen oxides (causes air pollution) to rise from 2.5 million tonnes to 6.1 million tonnes, and the carbon dioxide emissions from aviation to rise from 572 Metric tonnes in 2000 to 1229 Metric tonnes in 2025.

Conclusion

What builds us also destroys us, so they say. In regards to this issue as shown in the discussion above we cannot conclusively say that air travel is one of the best advancements to humans and the world economy without us being reminded of the troubles and disadvantages that accompany it. We can all sing about the joys and the benefits it has brought to the human race but we will again wail in remembrance of the destruction that it has brought. However, we have the capacity to reduce and manage some of the complications associated with it for maximum benefits. Measures to cab hijacking cases are already in place and flight crews receive more informed training to handle incidents and carry on the work of delivering the world at our doorstep if not table.

References

Conrady, R., & Buck, Martin, (2008). Trends and Issues in Global Tourism, New York: Springer.

Wells, A., & Rodriques, C., ( 2004). Commercial Aviation Safety, New York: MacGraw Hill.

Wood, Richard, (2006). Aircraft Accident 2^nd ed, Boston: Endevor Information. Web.

Among the many careers perceived to be exciting in terms of travel perks and financial gains is in the field of aviation. A career on aviation particularly working for commercial airlines and private companies continues to interest a lot of people nowadays because aside from its attractive earnings, it also provides pilots and other flight attendants the opportunity to travel across the world’s massive continents and over its vast waters. This very tempting offer to be able to travel and be exposed to different cultures and see the rest of the world may probably be one of the most factors why being a commercial airline pilot is still viewed as a glamorous and equally important job.

The Demand for Pilots

There is growing demand for commercial airline pilot nowadays. This continuing demand for commercial airline pilots is affected by several factors, namely (“Dream Job”, 2005):

• A worldwide shortage of pilots which also means more overseas job opportunities and fewer applicants for domestic jobs.
• Having more experienced pilots able to fly international routes who are required to cope with the growing number of transnational tourists/passengers.
• Having good number of mid-career pilots who are greatly in demand by regional airlines, that are trying to expand their capacity by up to 40% to a result of the greater number of people (especially migrants) living in smaller cities.
• More flying instructors who are highly in demand to train the increasing number of international students studying for commercial pilot licenses in various flight training schools.
• New pilots are needed to replace the large number of highly experienced pilots who are approaching retirement age and will leave the occupation over the next decade.

How to Become One

To become a licensed and/or trusted commercial airline pilot, proper training is a must. There are a number of schools which offer programs or courses for commercial airline pilot aspirants. In the said program, students are then taught of the basic and advance airplane and helicopter operations (ECIS, 2007). Students also learn all about navigation, the safety and precautionary measures involving planes, as well as the aircraft design and performance. Teachers of such program or course also make sure that the students will learn valuable information on flight crews working together as a team and as an individual (ECIS, 2007).

Teaching in the commercial airline pilot program is not an easy task. Teachers should have the credibility to teach students not only the basic tenets of flying but of the overall flying and aircraft service operation. Rochford (2003) stated that learning style is the way a particular student concentrates on, absorbs, processes, internalizes, and recalls new information. This implies that every airline pilot student will have their own preferred learning style depending on their own capabilities to gather and absorb data, and in how they process and organize such data (Felder & Silverman, 1988; Van Zwanenberg, 2000). There are five factors that influence the learning style of an individual. These factors include (Dunn and Dunn, 1993):

• environmental situation – which involves the level of noise, the temperature, the amount of light available
• personal emotional characteristics – with which motivation from other people and from the self, persistence, perseverance, and sense of responsibility and dependability are very important
• sociological preferences for learning – which pertains with the idea of choosing a learning endeavor done alone or a learning endeavor with other peer
• physiological characteristics – that refers to the motor abilities, the visual and auditory stimulus
• global aspects – which involves the combination of the above stated factors

Knowledge on the learning styles is beneficial for both the students and the educators. As for the educators and aspiring ones, knowledge on various learning styles of the students will help them facilitate the learning undertaking and manage the classroom and the students properly. Meanwhile, if the students know the specific learning style apt for their personality and needs, then they could maximize the use of that particular learning style which will result to the students’ enhanced educational achievement.

Like for example if I am the educator and I noticed that one of the students is like me, who is more inclined to learning using the perceptual modality (where visuals and auditory functions is highly used), I could then focused on giving more examples and explaining the topics through the use of pictures and sounds. I can make use of various instructional materials where the students could make us of their perceptions in a dynamic way.

Airline students’ learning styles is a good way of measuring their ability to grasp the subjects very well. This alone is enough reason why understanding the various leaning styles can play a crucial role in facilitating an effective learning undertaking.

It should be noted that getting a certificate from a commercial airline pilot training is not an easy undertaking. There’s a step by step process that one has to undergo. First and foremost, aspiring pilots should muster the basic flying maneuvers (ECIS, 2007). This would of course mean that the student him/herself should not afraid of heights, has a very clear vision and can be in control of him/herself despite of the different environmental disturbances while in the air. Some of these basic flying maneuvers include taking off, landing and taxiing (ECIS, 2007). Eventually, aspiring pilots will then be learning advanced in-flight maneuvers such as flying in loger distances, flying at different time of the day (night or day) and facing difficult weather situations (typhoons cyclones, etc.)

Airline and/or flight safety and preflight procedures are also very important aspects that aspiring pilots should learn about (ECIS, 2007). They need to know the SOS protocols, air navigation systems, air traffic controls and safety gadgets and/or clothing that they need to have once they become a full ledge commercial airline pilot.

After such arduous basic learning matters, commercial airline pilot students will then go into specifics. This is now called flight crew training (ECIS, 2007) wherein the will have to focus studying on specific airplanes. Like or example the plane Boeing 747. each pilot will then have a chance to fly by themselves this specific type of plane so that they will be familiar with every plane’s condition. In the same manner each commercial pilot student will also be tasked to handle different cargo (ECIS, 2007).

In each solo flight, each pilot is also tested in handling correct safety and survival procedures. When the September 11, 2001 terrorist attack happened, this gave fear to most airlines that they then requested he airline schools to include in their lessons several aspects of handling aggressive situations including fending off attacks (ECIS, 2007).

The length of taking such program normally varies. It will be dependent on how the school operate each courses and of course on how each student will be able to cope with each task that they will be assigned to. Some colleges and/or universities offer such course as an associate degree which can be taken (if full time) in two years time. These programs is aimed at preparing the students to take the FAA (Federal Aviation Administration) written exams. At some points, that can include flight lab courses. Other training options for aspiring pilots are the private flight schools, independent flight instructors, the military, and self-study of written materials (ECIS, 2007).

It should also be noted that commercial airline pilots are licensed and authorized for such a task. To be licensed, students must pass the FAA exams (which is a combination of written, oral, and flight tests) supervised by an FAA examiner or inspector. Once they got their license, pilots an then serve as for private companies or become self-employed. They also have the option to fly planes for other purposes like crop dusting, advertising or skydiving (ECIS, 2007).

The Challenge

Considering a career on aviation however, also should include an evaluation of its many dangers or complexities for that matter. A stable state of mind and acknowledgement of a moral responsibility are first and foremost very critical since being a pilot inevitably means prioritizing the safety of everyone on board a plane. Being a pilot may also not be an easy job after all, if one would look at the various financial, physical, and mental demands that an aspiring pilot has to face and eventually surpass. First of all, studying aviation is not a cheap endeavor. There are only a few aviation schools in the country, and as expected, the best schools charge more. This is understandably so because real education and training in aviation means more than reading books or taking exams. It includes tinkering with real planes, knowing how to troubleshoot them, and literally getting a hand-on experience by flying the actual planes. Planes are of course expensive, and flying them, even for practice means having a spacious area enough to accommodate runways!

Pursuing a serious profession in aviation itself is the more challenging part. Giving up a lot of leisure hours is one consideration. This is because being a pilot entails irregular if not lack of sleeping hours, since most flights would require pilots to stay up all night. Being away from families and friends is another consideration since pilots are required to be away from their homes for most of the time. Aside from these changes and sacrifices in lifestyle, a career on aviation also includes boredom, drowsiness, and fatigue. In order to combat these antagonists, pilots have no choice but to take in a lot of caffeinated drinks to stay awake. Considering the burden and pressure of driving an airplane loaded with passengers, pilots’ also experience a lot of stress and tension. Many pilots are then driven to smoking cigarettes to release tension, anxiety, and stress. Just imagine: when you’re a pilot, you are flying a massive aircraft with a hundred or so people, kilometers way above solid ground, with the main task of getting to a certain destination on time and as much as possible, with satisfied, secured, and comfortable passengers!

In addition to the hassles of irregular work patterns, lack of sleep, tension, stress, anxiety, pressure, and being away from home, pilots are also not getting enough exercise that is actually needed to maintaining a healthy lifestyle. In fact, engaging in regular exercise and maintaining healthy dietary habits are additional challenges for those working outside normal hours, particularly when extended periods of time are spent away from home. Summing up all of these constrictions, pilots are in short, facing a serious case of fatigue.

Fatigue, as addressed in the human performance literature, refers to “deterioration in human performance, arising as a consequence of several potential factors, including sleepiness.” (Mendelson, Richardson & Roth, 1996) The massive literature on pilot fatigue has identified a number of symptoms like increased anxiety, decreased short term memory, slowed reaction time, decreased work efficiency, reduced motivational drive, decreased vigilance, increased variability in work performance, increased errors of omission which increase to commission when time pressure is added to the task, and increased lapse with increasing fatigue in both number and duration (Mohler, 1966; Dinges, 1995). The occurrences of these symptoms have been shown to increase as instances of sleep deprivation are also increased. In addition, one of the most critical negative effects of pilot fatigue is related to a significant change in the level of acceptable risk that a pilot is willing to tolerate. This is to be studied critically since it entails the mental state of pilots even while flying a plane. Simply put, pilots experiencing fatigue are more like to be disoriented and unmotivated while flying a plane, that might just be the very reason why a plane would likely crash!

For instance, it was found out that one highly probable reason why the aircraft carrying Commerce Secretary Ron Brown crashed is due to the pilot’s delayed reaction to an aircraft malfunction. (Newman, 1996) Although the pilots detected an error on approach a full minute before the crash, they made no attempt to correct the error—a common characteristic of fatigue. This is due to a reduced level of adherence to one’s normal standard and a reduced ability to cognitively make a connection between cause and effect. One may recognize a problem but not translate its effect due to lack of full comprehension of the situation or simple failure to initiate an action.

Further studies also prove that fatigued workers are easily contented with lower and therefore unacceptable performance. They are also seen to inefficiently notice errors, thus leaving them uncorrected. Because of fatigue that is more or less directly proportional to sleep loss, there are greater chances that a worker loses his or her capability to perceive and adjust to the new aspects and follow-up dimensions of a certain task. The worker shows signs that he or she is unable to shift quickly and effectively from one part of the task to another. The workers are in short, having a difficulty in adjusting and keeping up with the requirements of the task. (Broadbent, 1953; Horne, 1988) For pilots and other aircraft personnel for instance, it was seen that when the aircraft crews are absorbed on one problem, they fail to answer it with speed and efficiency that other problems soon develop.

Motivation could also play a major role in the relationship between fatigue and performance. “Both experimenter and subject motivation can have a large impact on results, particularly in the behavioral and subjective domains. Motivation effects are frequently most apparent near the end of studies where performance improvement is sometimes found, but also may account for the difficulty in showing decrements early in periods of sleep loss.” (Bonnet, 1994) Aside from these concerns on pilot fatigue that is due to lifestyle and working habits, the aviation environment can also contribute to stressing out pilots. Environmental factors such as movement restriction, poor air flow, low light levels, background noise, and vibration are known causes of fatigue. (Mohler, 1966). A pilot’s alertness level at any time is also dependent on a multifaceted interaction between a number of variables. Four variables need to be considered: time on task, time since awake, any existing sleep debt, and the pilot’s own circadian cycle.

The Perks

Becoming a commercial airline pilot is believed to be a dream job for most males and females, and there’s very good reason for it. Not only they are given a good salary, but it also comes along with other mouth-watering benefits like free accommodation (in a good hotel whenever they will fly) and of course being given a chance to see and be in the place where not all people can go into.

But most pilots revealed that they chose such profession not because of the money despite the fact that commercial airline pilots are really well compensated. It should be noted that to be given a good salary and eventually have a chance to raise it, commercial airline pilots need to stay in the company for as long as they can as their profession s based on longevity. The longer they remain in the company, the more profitable their salary can be. More so, if they stay longer in the company, the more chance that their ranks will go higher (from becoming a 1st officer to 2nd officer and then captain). Of course, the higher your rank is, the better pay off it will be. In some instances, salaries are also dependent on the type of plane, and personal flight pay credits (FPC), a measure of hours worked. It was explained that explained that pilots spend considerable time commuting and waiting between flights, so that a pilot can be gone for three days and only get 10 hours of FPC (“Dream Job”, 2005).

But such salary level is just commensurate to the amount that each pilot has to spend during their trainings and licensure examinations. In the US alone, Air Line Pilots Association revealed that pilots can spend an average of $30,000 on pilot certification alone (pilots must receive 11 certifications/ratings). That’s on top of receiving the now required college degree. Entry-level pilots, according to the association, start at an average of $28,000 per year; and after ten years of experience, a pilot might see six figures. Federal law requires pilots to retire at age 60 (“Dream Job”, 2005).

Conclusion

Indeed, there is a bright future for commercial airline pilot aspirants. Based on the demand scale itself, there is a continuing need for pilots each year and in every country. The salary for job/profession itself is enough for a person to want to be in. but there are other things that should also be considered prior to deciding whether or not to pursue a career as a commercial airline pilot. The first thing to consider is the need to assess oneself if he/she can surpass (physically, mentally and of course financially) with the demands of the trainings. The second and another major thing to consider is to assess oneself whether or not he/she can cope with the environment once he/she started servicing as a commercial airline pilot – fatigues, people and place of work included. If these two factors will be assessed and gives out positive result, then the commercial airline pilot aspirant is then facing a good and entirely promising career in his life.

References

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6. “Dream Jobs.” 2005. Salary.com.
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8. ECIS. 2007. Commercial Pilot and Flight Crew Training. Web.
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Introduction

The analysis of costs of the provided services is generally required for the precise analysis of the components, which define the final price, and for the further analysis of the related spheres of service or production. The analysis of the airline flights will require the in-depth study of several aspects of the market, as the final price of the ticket is formed depending on the fuel price, the costs of the technical maintenance of the fleet, services of air dispatching, salaries of the piloting crew and stewards. The company, taken as an example is Virgin Blue Airlines.

Cost Identification and Analysis

The components of the airline flights costs generally depend on numerous factors. The fact is that, numerous spheres and services are included into the market of airline flights, and there is strong necessity to emphasize that various prices of the airline tickets depend not only on the distance of flight. The general components are the following:

• Fuel ($ 5 to7 per gallon)
• Initial price and technical maintenance of a plane ($ 27 to 34 million per unit)
• Salaries of the technical personnel (technicians, hauler truck services)
• Pilot’s salaries and licenses (depending on a company’s policy)
• Stewards’ work
• Costs of the food, served o board
• Hangar rent and guard services
• Take-off-landing fees
• Dispatching and routing
• Airport services usage (O’connor, 38)

These are the most common components of the costs. The detailed information should be regarded in order to calculate the average costs of the airline flights. The plane, taken for the analysis is Embraer 170 (70 to 108 passengers). 6 tons of fuel load (1585 gallons)

The calculations of the flight costs (considering the resource of the plane – 10000 flight hrs, and flights for maximum distance 3829 km)

The food, served on board may be paid additionally. Moreover, the policies of the companies, which use Embraer jets often presuppose the low costs tickets, which means the absence of on board food serving included into the ticket price. Dispatching costs, in average are up to $ 120 per hour, nevertheless, the company may use private airports and do not enter the state airport zones, thus, these costs will be lowered.

Price Margins

These aspects presuppose mainly technical details, as different working regimes mean various fuel consumption and the different costs, as a result. Thus, flying at an optimal height and at a cruising speed would mean larger margin.

If the company owns more than one plane, the technical maintenance costs will be lowered, as more tech time service will be spent effectively. The lesser distances mean the more often flights (less fuel and more passengers), which will inevitably mean the lowering of the flight costs, and, as a total – the ticket prices. (O’connor, 127)

Considering the practice of the low cost companies, they had to refuse from on-board serving, thus, the stewardship costs were reduced. Additionally, Embraer air jet needs only 2 crew members (in comparison with Boeing, which requires 3 crew members).

Government Taxes

The Governmental Tax Program for the airline flights presuppose lowered taxes for the low cost flights, as the actual necessity of the low cost flights is explained by the decreasing of passenger traffic, caused by the financial crisis 2008. Moreover, the aircraft crash accidents distract people from flying. Thus, the taxation programs do not influence essentially the final price of the air ticket. (O’connor, 185)

Terms and Discounts

The fact is that, there are no specific terms, nevertheless, various programs presuppose various discounts for the passengers. Thus, people are offered bonus miles for using the services frequently. Additionally, the passengers are allowed to purchase tickets in advance, which is encouraged by reduced prices (the actual price may be decreased up to 20% of the whole price). The low cost model of the airline flights also presupposes the opportunity to order ticket online or over the phone, thus, the paperwork is lessened, and the final price is discounted. (Godfrey, 2)

Conclusion

Actually, the costs of the airline flights presuppose numerous factors and depend on numerous processes and tendencies in the global business market. The given analysis provides the average data on the costs and prices of the flight, nevertheless, the margins are large enough for lowering prices. Moreover, most companies have an opportunity to arrange discount programs for their consumers.

Works Cited

Godfrey, Brett. ‘Welcome Message from Brett’ Virgin Blue. 2010. Web.

O’connor, William. An Introduction to Airline Economics. Westport, CT: Praeger, 2008.

Virgin Blue Holdings Limited ‘Preliminary Final Report for the year ended 30 June 2009’, 2010. Web.

Executive summary

In this paper, our main focus was on airline industries and how it is being managed. The point of interests was on the challenges that are being faced in the industry and what the concerned authorities are doing to solve the problem. From the discussion we discovered that the areas of challenge in the industry are costs of establishing and maintaining it, unpredictable weather conditions, security issues and frequent changes in technology.

All this issues have either made the airlines spend more money on maintenance or loose some of their trusted clients (Goeldner, 2000). As a solution most airlines opted for mergers which have proved to be a profitable move. By entering into mergers, the company is able to venture into other development activities that enable them earn extra money for development. They are also able to effectively counter attack the challenges that come with the industry. As many companies have entered into merger, there are still others that are finalizing their merger business and others making it a top consideration.

Introduction

The need for air transport which is considered to be the fastest means that can be used to travel between regions has also led to an increase in its demand. Compared to the past when there were fewer airlines, the current economic world has realised an increase in the establishment of airlines to meet the demands of the day. Some decades ago, airlines were public corporations which led to a control in the number in which they could be established.

It was however deemed necessary for the entities to also be privatised because the need was also arising (Lelieur, 2003). Air transport was not common in the past and was only favourable for people of a certain class who were capable of affording it. However, modernization and improvements in the field of technology has made air transport vital for everyone. As demand for air transport increased, there was also an increase in supply which reduced its transportation costs substantially. As the number of airlines increased, some that could not keep up with the competition closed down as others looked for clever ways of counter attacking it.

Many resolved to enter into mergers and acquisition, a practice that has become common in the airlines industry. In this paper, we take a critical look at the challenges that are being faced by the industry and the different strategies that are being employed to counter the same.

Challenges of air market

Cost

Air market is not an easy industry to manage compared to other business establishments in the world. It involves a specialized kind of staff to manage its activities and also invest in sophisticated machinery and equipments. The technology that is uses to manage its activities is unique and hence requires heavy investments. The industry needs a huge amount of starting and operating capital for its activities to run effectively.

Most companies that may invest heavily in the industry may get disappointed when their trading activities are not generating them enough capital to pump back into the business. Most of the employees of the industry are so demanding due to the specialized skills that they have (Doganis, 2006). This has hence not made it easy for most airline industries that have not received adequate customers. Airlines also require a large space to run its activities, getting a convenient place to establish an airline is not easy or cheap. They hence have to part with a big amount of money of which they may not be sure whether it will be recovered.

Due to a lot of demand for land in the urban centres, they may not be able to get a considerable size even if they were ready to part with such an amount. Available spaces are in remote areas where they will not be guaranteed of customers.

Leasing an aircraft is not easy, let alone buying it, the expenses of obtaining such may be unmanageable unless the company is assured of the frequent flow of customers. This is never predictable as most of the frequent clients of airlines are business tycoons who form a small percentage. Other promising customers are usually tourists, students and government officials who travel seasonally. There are hence specific seasons of the year when the airline industry is assured of a regular flow of customers. Airlines also have to be involved in frequent training of their employees to be at par with the changes that are taking place in the field of technology (Derdak, 1996).

This will serve as a procedure that will ensure that they don’t loose customers due to the use of outdated technology. This is an area that also requires a good substantial of money. It is an ongoing procedure which also requires the company to set aside a regular amount to cater for the services.

Security

Security has been a major drawback that has been of great challenge to the airline industry. This is a factor that makes customers to prefer certain airlines and choose not to travel with others. Even though there are security measures that are observed at the airports, technology is making such measures unworkable. People in form of travellers smuggle dangerous equipments into the planes which they may use to hijack or scare passengers.

Increased terrorist threats have also been a major security issue to airlines which has made them to invest more in information technology. With developing technology, it may never be easy for them to know the next strategy that may be used by the terrorists to attack planes or airlines. U.S airlines and other plane plying the rout have been the major targets for the terrorist; this has cause a lot of phobia among passengers who resolve to reduce on the regularity of their travels (Wall, 1980).

This affects the passenger turn out at the airlines especially when a certain rumour of an attack has been reported. This in turn affects the amount of profit that is generated by the airlines. For passengers to embark on their travelling plans, they need a lot of assurance from the airlines that they will be safe through their journey which is not an easy thing.

Weather

Unpredictable climatic conditions have been a major drawback to the airline industries. Airlines mostly depend on the reports that they receive from the readings on the satellite which may not be reliable. Activities of man have made it difficult to predict the whether as it keeps changing on a regular basis. There have been instances when flights have been delayed or cancelled due to bad whether conditions. This has coasted the airline industries that have to compensate the affected customers. In case of long delays, they are also obliged to provide accommodations and at times food for the customers as they wait for the climate to change.

Some customers that may cancel the flight will make the planes to fly almost empty which does not in turn minimize on their travel costs. A flight may also be encountered by unpredictable climatic changes while it is in the sky, this may tamper with ground communication which may cause a lot of panic among the passengers. Taking care of a bunch of scared individuals in the sky is not always an easy task for the aircraft crew considering the dilemmas that they are also faced with. Some customers that may not understand the cause of such breakdown may blame it on industry and hence vowing not travel with it next time.

Technology

Changes in technology have also been a major challenge to airlines. They can not always rely on a similar technology at all the time no matter how recent it is and the amount they used in making such an investment. They need to be at par with the frequent changes and apply them accordingly to manage the tight competition. Aircraft passengers are so sensitive to technology and will be attracted to industries that use the most recent technology.

Investing in a newer technology every now and then is not a cheap exercise which is making the industries to incur more in operating capital. As technology changes, the industry has two options at their expense (McIver & Jackson, 2006). One is to train their employees to adapt to the same and two is to employ individuals that are skilled in it. Technology in itself may not be a guarantee as it is faced with certain hitches that can cause communication breakdown.

Most customers resolve to online services that need to be frequently upgraded and updated by the company. Any hitch in this area even for one minute will make a potential client to try out on another reliable online service. Technology has also made customers to have a wide variety of options to choose from which has denied most of the ancient airline industries their loyal customers. They can easily identify some of the existing airlines and compare prices and services. They will hence resolve to economical airlines.

Remedies to the challenges: merger

Merger has been considered to be the best solution that has been adapted by the airline industries. There are many airlines that were established when the government gave licences to private entrepreneurs. There was a lot of demand at the moment that made many organisations to invest in the same. However, as the days went by, they realized that it was not an easy business to invest in. There was a lot of competition that send most airlines to be almost idle (Botten, & McManus, 1999).

This was due to lack of maintenance cost or simply because they were located in areas that could not be accessed by clients. Since they had some of the equipments that were required to run the airline, they decided to merge with other airlines to boost their performance. Merger has been considered to be the best alternative as it involves merging of recourses and skills which is required for good performance. It enables the merging companies to have the ability of maximizing their resources and hence providing their clients with high quality services.

Merging also helps the airlines to use lesser human resources and increase their productivity. They will use the experiences that they have had in their various services and be able to maximize on their activities. They are also able to bring in different ideas basing on their experiences, this enables them to avoid making some mistakes that they probably made in the past and avoid them (Schilling, 2007).

They are also able to adapt the most workable strategies that enable them make informed decisions. As they merge, they also merge their stakeholders and thus being able to grant them reliable services. They are also able to venture into other development activities like establishing aviation schools which enables them to generate more income for expansion. Most airlines that have resolved into mergers have been able to record a substantial growth (Rhoades, 2003).

Conclusion

The airline industry was a booming industry shortly after the activities were privatized. It was considered to be a good investment project considering the good profit it was generating. Everything changed abruptly when more companies ventured into the industry. There were more airlines than were actually required which made them to reduce on the airfares to manage the competition (Clark, 2007). Reducing on such charges was making the companies to experience even more losses considering the amount that was needed to manage them. Some airlines were also located in areas that were not frequently visited and hence being idle.

The companies hence decided to partner in their efforts to maximize on their resources and also improve on their earnings. So far most companies have merged and there are still others that are considering going the same way.

Reference List

Botten, N. and McManus, J., (1999). Competitive strategies for service organizations. London: Purdue University Press.

Clark, P., (2007). Buying the big jets: fleet planning for airlines. New York: Ashgate Publishing Limited.

Derdak, T., (1996). International directory of company histories. New Jersey: St. James Press.

Doganis, R., (2006). The airline business. New York: Routledge.

Goeldner, C., (2000). Tourism: principles, practices, philosophies. Madison: Wiley.

Lelieur I., (2003). Law and policy of substantial ownership and effective control of airlines: prospects for change. New York: Ashgate Publishing, Ltd.

McIver, J. and Jackson, R., (2006). Macroeconomics. Australia: McGraw-Hill Australia.

Rhoades, D., (2003). Evolution of international aviation: phoenix rising. New York: Ashgate Publishing Ltd.

Schilling, M., (2007). Strategic management of technological innovation. New Delhi: McGraw-Hill Education.

Wall, R., (1980). Airliners, Volume 1980, Part 2. Michigan: Prentice-Hall.

Abstract

The current COVID-19 pandemic has affected the world’s economy significantly because of social distancing policies that prevent many companies from working effectively. However, it is likely to have a particularly significant impact on airlines, which have lost a significant portion of traffic due to travel bans. Moreover, the industry is already known for its high rates of closures, mergers, and acquisitions as a result of the intense competition that takes place in it. This study conducts a literature review that explores the impact that COVID-19 has had on the airlines sector so far and the likely outcome of the crisis.

Introduction

The aviation industry generally struggles to resist external shocks because of its specific properties. Viral epidemics are particularly dangerous in this regard, as airlines enable rapid transit across the world, which enables infected people to arrive in new locations before the systems there are ready to respond. As a result, the current COVID-19 pandemic affects aviation particularly strongly, with many countries minimizing air traffic or banning it entirely.

The number of customers has dropped sharply for most airlines, and the canceled flights require refunds to be conducted. Many companies may have to adopt extreme measures to survive the pandemic, and numerous others will likely close. This paper will attempt to discuss the weaknesses of the airlines sector concerning epidemics and explain the impact that COVID-19 has had on them.

Methodology

The descriptive approach is appropriate because the research attempts to obtain an overview of the situation. The study will use a qualitative approach and conduct an extensive literature review and analysis. It is likely too early to attempt to quantify the impact of COVID-19 on the industry because the situation is still developing and will likely cause further damage. In line with this reasoning, the study will take on an exploratory design.

The sources used in the paper will include scholarly articles, books, and reports from non-commercial organizations. The criterion for their selection is relevance based on topics such as COVID-19, airlines, and epidemics, in general. Databases such as JSTOR and Google Scholar have been used to look for articles and reports. Google Books were used to find books that would be relevant to the topic, which the author would then procure in their entirety if available. Content analysis will be used to derive information from the gathered literature.

Results

The airline industry is currently in a volatile state due to its continued transition to a new model that follows deregulation. As Budd and Ison (2016) claim, following deregulation, low-cost carriers emerged and began taking the market share of traditional high-cost providers away with their superior prices. Their efforts succeeded, but then, these companies began competing with each other, and, in the absence of significant differentiating factors, they began lowering their prices, leading to a reduction in profit margins (Samunderu, 2020).

They also continue efforts to save costs and develop more efficient frameworks. As a result, according to Heshmati and Kim (2016), the industry is continually shifting, with many airlines struggling to survive in normal circumstances. External events that damage its operations exacerbate these issues, as airlines can struggle to produce enough resources to withstand such crises.

The perception of airline safety is particularly relevant to their performance, as people will generally avoid modes of transport that they consider dangerous. Vasigh et al. (2018) highlight how the 9/11 attacks led to a 9% reduction in U.S. air traffic and a $1 billion loss because passengers were afraid of terrorism. Similar events took place with tourists during the SARS epidemic of 2003, forcing the affected industries to save costs to avoid bankruptcy (Lowry, 2017).

Jaffe (2015) estimates the epidemic-related losses in the Asia-Pacific region at $6 billion, with American carriers losing another $1 billion, as a result of a 45% drop in traffic to China. As such, its impacts can be considerably more severe than that of the previous epidemic.

It should be noted that COVID-19 is related to SARS, as both are coronaviruses that cause similar symptoms. As such, similar considerations regarding their spread may apply alongside more general knowledge regarding epidemics. Sallan and Lordan (2020) note that diseases tend to transmit through airlines, which is expressed as a correlation between their spread and the airport network. Wuhan, the city where the first COVID-19 case was recorded, has a large international airport, which may have facilitated the spread of the disease (Peeri et al., 2020). Lewis (2020) adds that, rather than in-flight infection, the cause is that passengers leave their planes and go on to spread the disease in the city unchecked. As such, many countries put their focus on the monitoring of travelers who arrive from areas where the virus is known to be present.

It is not feasible to test every person who arrives from a danger zone for COVID-19 upon their arrival at the airport. According to Okada et al. (2020), thermal imaging has proved itself potentially useful, though it cannot detect patients who are in the incubation period. As such, countries such as France have instituted surveillance procedures, tracking COVID-19 patients and the people who came in contact with them (Stoecklin et al., 2020).

Zhang et al. (2020) provide some examples of how such contact tracing can identify cases without a history of travel to locations such as Wuhan. However, as Bai et al. (2020) state, researchers soon discovered that many cases of COVID-19 are asymptomatic and can avoid detection while still spreading the disease. Additionally, regions with poor societal functioning can struggle to identify and report cases of the disease, thus developing into unknown danger zones (Adiga et al., 2020). As such, neither of the measures described above would be enough to contain the virus entirely.

As such, governments started looking into more drastic ways to prevent the spread of the virus. Wilder-Smith et al. (2020) note that measures such as social distancing, which many countries across the world have implemented, have helped stop SARS but may not be as effective for COVID-19. As such, governments chose to implement additional measures that affected airline companies disproportionately, such as travel bans.

Chinazzi et al. (2020) claim that these policies have reduced the numbers of international case importations by 80% compared to the projection, though they have not stopped the spread altogether. As a result, airlines had to cancel most or all flights from China and to it, leading to significant loss of revenue (Hoque et al., 2020). This ban is likely to continue for a considerable period and expand to other nations with high incidences of COVID-19, such as Italy or the United States.

The effects of these policies on airlines have been severe and may escalate soon if the situation keeps becoming more severe. The COVID-19 situation has already led to a 72% drop in air traffic worldwide as of April 10 (Impact of COVID-19: Data updates, 2020). Companies are beginning to consider the prospect of bankruptcy and develop methods that will help them avoid the situation. Walulik (2017) claims that airlines will often merge to achieve cost savings and protect themselves when struggling economically.

Burke et al. (2020) propose another option for wealthy countries, in which the government can “take large equity positions in airlines and other businesses” to protect them from collapse until the economy stabilizes. Either way, many small airlines will likely cease to exist as a result of the COVID-19 crisis, and larger ones will become more prominent.

Discussion

In its current state, the airline sector is inherently unstable and volatile, as companies in it have to struggle with intense competition. With their low profit margins, they struggle to deal with costs in ordinary situations despite the continuing growth of traffic. As a result, any noteworthy economic disturbance leads to the closure of airlines, which are then acquired by others. A massive crisis, such as that surrounding COVID-19, is likely to have proportionally more significant effects. Travelers will not want to go elsewhere due to infection concerns, and nations will shut down routes, leaving some companies entirely out of business. With their lack of contingency funds and mounting costs such as those of maintenance and wages, airlines will likely not be able to survive until the crisis ends.

The shutdowns are necessary and unavoidable because of the specific properties of the new disease. It has a long incubation period and is often asymptomatic, which means that carriers of the disease can pass through current security measures undetected. As such, airlines represent a fast and long-ranged method for spreading COVID-19. They introduce people who complicate widespread methods of stopping epidemics, such as contact tracing, into populations.

Complete elimination of airborne traffic is the only cost-effective measure that a government can take to reduce the danger that the infection vector poses. As such, once the benefits of travel bans were confirmed, countries began to replicate the practice worldwide, leading to a massive reduction in traffic as only the essential routes stayed open. These routes will likely also shut down if one of the destinations develops the same situation as Wuhan.

Asian airlines are affected the most because of the bans many countries instituted for travel to China and from it, but carriers worldwide take significant damage from the situation. Smaller companies will struggle to survive the situation and try to merge into alliances or be acquired by existing ones. Large businesses will also likely require help, and, likely, governments that are interested in the preservation of their travel networks will bail them out.

Each option contributes to the reduction of overall competition in the industry, as the number of competing businesses becomes lower, and their economies of scale enable them to obtain advantages that increase the barrier of entry into the industry. The airline industry may become an oligopoly, where one or a few alliances work in a region and informally divide the world’s transit network into exclusive zones instead of competing.

While such a situation would be disadvantageous to travelers, it is possible to argue that the change is unavoidable and possibly positive. Ever since deregulation, the airline industry was struggling to develop a new equilibrium and may have collapsed. The current crisis may result in the reorientation of the sector into a more sustainable configuration that benefits both companies and flyers. A significant shock may identify the configuration that can withstand it best, which other businesses will then begin to emulate.

While the possibility that the industry will fail to develop a solution and collapse also exists, many influential stakeholders are interested in having it continue. As such, airlines have a safety net that they can use to survive the current crisis as an industry. There will likely be smaller local changes, but the industry as a whole will eventually recover and possibly work better than before.

Conclusion

The COVID-19 crisis has had a significant effect on the aviation industry, which is likely to become more severe before the pandemic becomes less severe. Airlines are highly effective at transmitting viral infections, and COVID-19 exemplifies this ability because of the properties that make it more challenging to detect. As a result, many countries are shutting the majority of their airborne routes to limit the speed at which the situation in their borders develops. Having lost the majority of their customers as a result and lacking the resources to keep operating until the crisis ends, many airlines are likely to reach bankruptcy soon.

As such, they will look for help, either through mergers or government aid. Both options create some risk that the industry will become an oligopoly, but it is also possible that a more sustainable arrangement than before will emerge.

References

Adiga, A., Venkatramanan, S., Schlitt, J., Peddireddy, A., Dickerman, A., Bura, A., Warren, A., Klahn, B. D., Mao, C., Xie, D., Machi, D., Raymond, E., Meng, F., Barrow, G., Mortveit, H., Chen, J., Walke, J., Goldstein, J., Wilson, M. L., … Barrett, C. (2020). Evaluating the impact of international airline suspensions on the early global spread of COVID-19. Journal of Clinical Medicine, 9(2). Web.

Bai, Y., Yao, L., Wei, T., Tian, F., Jin, D. Y., Chen, L., & Wang, M. (2020). Presumed asymptomatic carrier transmission of COVID-19. JAMA. Advance online publication. Web.

Budd, L., & Ison, S. (eds.). (2016). Low cost carriers: Emergence, expansion and evolution. Routledge.

Burke, L., Burton, D. R., Fishpaw, M., Greszler, R., Michel, A., Michel, N. J., Sheppard, P., & Winfree, P. (2020). The Senate’s coronavirus bill: Bailouts, missed opportunities, and positive reforms. The Heritage Foundation. Web.

Chinazzi, M., Davis, J. T., Ajelli, M., Gioannini, C., Litvinova, M., Merler, S., Piontti, A. P., Mu, K., Rossi, L., Sun, K., Viboud, C., Xiong, X., Yu, H., Halloran, M. E., Longini Jr., I. M., & Vespignani, A. (2020). The effect of travel restrictions on the spread of the 2019 novel coronavirus (COVID-19) outbreak. Science. Advance online publication. Web.

Heshmati, A., & Kim, J. (2016). Efficiency and competitiveness of international airlines. Springer.

Hoque, A., Shikha, F. A., Hasanat, M. W., Arif, I., & Hamid, A. B. A. (2020). The effect of coronavirus (COVID-19) in the tourism industry in China. Asian Journal of Multidisciplinary Studies, 3(1). Web.

Impact of COVID-19: Data updates. (2020). Airlines for America. Web.

Jaffe, S. D. (2015). Airspace closure and civil aviation: A strategic resource for airline managers. Routledge.

Lewis, T. G. (2020). Critical infrastructure protection in homeland security: Defending a networked nation (3^rd ed.). John Wiley & Sons.

Lowry, L. L. (ed.). (2017). The SAGE international encyclopedia of travel and tourism. SAGE Publications.

Okada, P., Buathong, R., Phuygun, S., Thanadachakul, T., Parnmen, S., Wongboot, W., Waicharoen, S., Wacharapluesadee, S., Uttayamakul, S., Vachiraphan, A., Chittaganpitch, M., Mekha, N., Janejai, N., Iamsirithaworn, S., Lee, R. T. C., & Maurer-Stroh, S. (2020). Early transmission patterns of coronavirus disease 2019 (COVID-19) in travellers from Wuhan to Thailand, January 2020. Eurosurveillance, 25(8). Web.

Peeri, N. C., Shrestha, N., Rahman, M. S., Zaki, R., Tan, Z., Bibi, S., Baghbanzadeh, M., Aghamohammadi, N., Zhang, W., & Haque, U. (2020). The SARS, MERS and novel coronavirus (COVID-19) epidemics, the newest and biggest global health threats: What lessons have we learned? International Journal of Epidemiology. Advance online publication. Web.

Sallan, J. M., & Lordan, O. (2020). Air route networks through complex networks theory. Elsevier.

Samunderu, E. (2020). Air transport management: Strategic management in the airline industry. Kogan Page Limited.

Stoecklin, S. B., Rolland, P., Silue, Y., Mailles, A., Campese, C., Simondon, A., Mechain, M., Meurice, L., Nguyen, M., Bassi, C., Yamani, E., Behillil, S., Ismael, S., Nguyen, D., Malvy, D., Lescure, F. X., Georges, S., Lazarus, C., Tabaï, A., … Levy-Bruhl, D. (2020). First cases of coronavirus disease 2019 (COVID-19) in France: surveillance, investigations and control measures, January 2020. Eurosurveillance, 25(6). Web.

Vasigh, B., Fleming, K., & Tacker, T. (2018). Introduction to air transport economics: From theory to applications (3^rd ed.). Routledge.

Walulik, J. (2017). Progressive commercialization of airline governance culture. Routledge.

Wilder-Smith, A., Chiew, C. J., & Lee, V. J. (2020). Can we contain the COVID-19 outbreak with the same measures as for SARS? The Lancet Infectious Diseases. Advance online publication. Web.

Zhang, X. A., Fan, H., Qi, R. Z., Zheng, W., Zheng, K., Gong, J. H., Fang, L. Q., & Liu, W. (2020). Importing coronavirus disease 2019 (COVID-19) into China after international air travel. Travel Medicine and Infectious Disease. Advance online publication. Web.

Providing the delivery and logistic services in the modern world is rather profitable affair, as the development of the economical and business relations all over the world support the international business contract, where the cargo delivery is important and essential part of business run. Integrated express cargo airline services and all-cargo airport services are two types of cargo delivery, which differ in some extend, and have their own advantages, which may provide the effective competition in the next five years.

Integrated express cargo airline services are provided due to their ability to integrate air and ground services and to create the fast express delivery of the necessary items. The integrated express cargo airlines “provide faster service than traditional general operators through door-to-door delivery systems, comprehensive hub systems, and computerized tracking systems” (Schwieterman, 2000, p.17). Their services are “just-in-time delivery, guaranteed availability, and expedited customs clearance” (Schwieterman, 2000, p.17) that is directed on the customers. The main advantage of the integrated express cargo airline service is that it provides its customers with quick services and is able to compete on the modern airline market with the services it provides. Moreover, the economical situation on the airline delivery services is that the delivery services are in great demand and the integrated express cargo airline helps to meet customers’ requirements and to satisfy them (Dullaert, Jourquin & Polak, 2003, p.271). Delivering the cargo, the integrated express airline also provides other services, which makes universal

The all-cargo airport services’ specific feature is that such companies deal only with cargo services and do not have other additional obligations. The advantages of such services is that they are usually located far from cities, that allows them to avoid the environmental limitations and that such kind of services may be provided 24 hours long. The companies, which deal only with the cargo deliveries, are usually more trusted as their services are directed only on one type of the business and the quality of their work is considered to be higher than in other companies, where the cargo delivery is one of the activities, they provide. Moreover, the weight and size of the delivered cargo for such company is not a problem, as in most cases the company equipment is supposed to deal with different cargo that is not the aim for the integrated express cargo services (Jarach, 2005, p.42).

The two types of the companies, which are compared, have enough potential and strength to maintain their competitive advantages over the next five years. Companies, which have business relations with the international companies, and they usually use the services offered by the cargo airline, are in a great demand. The competition between integrate express services and all-cargo services is observed and this competition allows them to remain on the market of cargo delivery (Wood, 2002, p.182). Moreover, the delivery of cargo by airline has reduces a little in reference to the previous year, so there is much work may be dome to increase the rates (Karp, 2005, p.11).

In conclusion, integrated express cargo airline services and all-cargo airport services are two types of cargo delivery, which differ in some extend, and have their own advantages, which may provide the effective competition in the next five years. The difference is mostly in the ability to deliver the goods in the certain time and of the sizes. Moreover, the market segmentation is also takes place as integrated express cargo airline services deal with different types of services, while all-cargo airport services specialize just on the logistic services.

Reference List

Dullaert, W., Jourquin, B. A.M. & Polak, J. B. (2003). Across the Border: Building Upon a Quarter Century of Transport Research in the Benelux. Uitgeverij De Boeck, Berlin.

Jarach, D. (2005). Airport marketing: strategies to cope with the new millennium environment. Ashgate Publishing, Ltd., London.

Karp, A. (2005). “Cajun Cargo”. Air Cargo World.

Schwieterman, J. P. (2000). Air cargo and the opening of China: new opportunities for Hong Kong. Chinese University Press, Hong Kong.

Wood, D. F. (2002). International logistics. AMACOM Div American Mgmt Assn, New York.

Introduction

Flight dispatchers in the UK should be licensed because of the intensity and importance of their jobs. Other western nations such as Canada and the US have accepted licensing as an instrumental part of aircraft operations and it is about time that the UK did the same.

Why aircraft flight dispatchers should be licensed

First and foremost, the nature of the flight dispatcher’s task is too important to be left unlicensed. Since it is the legal responsibility of the flight dispatcher (as well as the pilot) to ensure the safety of an aircraft, then this job must be done well. A dispatcher has the power and mandate to cancel, delay or divert a flight or merely to release it for takeoff. (Bureau of labor, 2006) In this regard, flight dispatchers need to have a deep understanding of weather patterns as well as the field of aviation itself. The level of knowledge that these individuals ought to have when it comes to operations control should be more or less the same as a pilot’s. There are several legal obligations that all flight dispatchers need to adhere to before giving aircrafts the go-ahead to commence. Aside from that, these same individuals still have to monitor an aircraft’s progress as it continues in its journey. (Morriu, 2008) A series of computer systems are required to do this and one must be constantly aware of their external environment to inform the flight crew of any issues that could compromise their safety. Therefore, negligence on the part of the dispatcher could be fatal to travelers or crew members. Given these important tasks, it is crucial to license such individuals so that all these skills are sharpened before they can start dealing with real lives. (Ambrose, 2009)

It should also be noted that the level of education for flight dispatchers is not as intense as it is in other aircraft operations jobs. Consequently, certain persons can be let through into the system without necessarily possessing the rigor required to perform such tasks – a license would prevent the likelihood of this occurrence.

Several issues in the airline industry have also occurred that necessitate more stringent requirements for flight dispatchers. First of all, there has been a greater concern for airline safety standards across the world and this is the same as UK aerospace. Several countries have passed various Acts to ensure that passengers are protected and those legislations often involve flight dispatcher licensing requirements. The region, therefore, needs to catch up with the rest of the world. (Hollis, 2006)

Another factor that also points towards a need for flight dispatcher certification is the increasing level of complexity in UK aircraft systems. Statistics indicate that the United Kingdom is a renowned leader in several aircraft programs such as Boeing aircraft, Airbus aircrafts as well as military aircraft. Also, several assemblies and sub-assemblies are done by aircraft manufacturers in the UK. (Gang Yu, 2009) Given these occurrences, then there is a need for carrying out daily checks on aircraft as well as a need to do more complicated safety checks. Aircraft systems also incorporate a series of other specialized areas such as flight and fuel systems, ground support, communications equipment, environmental control, avionics, ejection seats, and computer systems, landing gear, and many more. For all these aircraft components to be coordinated, there is a need for efficiency among all sectors of aircraft operations. (Gimblett & Hughes, 2007) Every single person must carry out his or her duties well to ascertain that aircraft carry cargo or people efficiently and safely. A reasonable number of professionals are involved in making aircraft systems operable; most of them are licensed and this makes them more dependable. Therefore, the flight dispatching sector should also follow suit to ensure that the best results are obtained in the entire airline industry. (McGinley, 2007)

Busy airline routes tremendously affect the work being done by aircraft flight dispatchers. Statistics indicate that the UK is home to some of the busiest routes in the continent of Europe. As of 2008, there were approximately four point two million passengers who flew between London and Ireland’s capital. On top of that, roughly four point two million passengers flew between London and the City of New York. Heathrow is the busiest center and most individuals are interested in flying both locally and internationally. Given the rate at which people are moving between various parts of the region, there is a need for greater coordination and efficiency during flights. Pilots may be overwhelmed if left to handle all these busy routes on their own. The task of the flight dispatcher is, therefore, more relevant and pronounced in such an environment and must be performed to perfection. The best way to ensure such perfection is through the issuance of licenses that examine all the critical areas needed to handle flight dispatching.

Since the primary concern of the flight dispatcher is to ensure that aircraft fly in safe environments, then it is essential to look at some of the safety concerns within the Airline industry over the past few years. It has been shown that aviation accidents and aviation incidences are some of the most worrying issues facing the aviation sector presently. The International Civil aviation annex defines an aviation accident as any structural failure or damage to an aircraft that can cause serious injury or death to persons who have boarded an aircraft with an intention of flight. On the other hand, an aircraft incident is any occurrence besides an accident that could compromise the safety and operation of an aircraft. (Sullenberger, 2009)

Several aviation accidents and incidences have occurred over the past decades and these have caused concern over the management of airline operations. Perhaps the most well-known tragedy in this millennium was the September eleventh attack that took place in New York. This intentional crash led to the death of slightly over two thousand nine hundred people in the twin towers. Also, in the year 1985, the world witnessed another terrifying aviation accident that occurred to Japan Airline passengers. About five hundred and twenty of them died because the aircraft’s bulkhead had not been repaired properly. (Rust, 2008) In 1996 a Saudi flight and Kazakhstan Air flights went on a head-on collision thus causing the death of 349 people. In this year (2009) alone, some of the accidents that have occurred include the Air France crash in Brazil, Yemeni flight at sea, and Caspian Airline flight all these crashes caused the death of 228, 152, and 168 people respectively. (Aviation Safety Network, 2009)

The occurrence of one aircraft accident can cause hundreds of death at a time thus explaining why this mode of transport poses a substantial risk to persons who choose to utilize it. Airline operations personnel must therefore go out of their way to prevent such issues by examining all the risk factors that could hamper people’s well-being. (KRQE, 2009). An aircraft flight dispatcher needs to know the meteorological conditions: at the departure and landing zones, within the designated route of the plane, and also in an alternate airport as these issues can affect the condition of the craft. (Rosenberger, 2009) Aside from that, the flight dispatcher ought to consider fuel consumption levels i.e. fuel needed for the journey without any emergencies, fuel needed if weather patterns change, the fuel needed in the event of a change of airports, and also fuel for holding. Failure to accommodate any of these issues can lead to an aviation incident that may culminate into an accident. Also, flight dispatchers need to know how far an aircraft can navigate, its maximum weight, and its general suitability for flight. All these issues indicate a combined responsibility with pilots to secure the safety of anyone on board. (Wensveen, 2005) As it can be seen these are all immense tasks. To ensure that flight dispatchers can offer timely and accurate information to prevent accidents, then a rigorous licensing process should be instated. This can go a long way in making aircraft are safer mode of travel than they currently are. Unlicensed flight dispatchers may know some of the latter mentioned elements but some of them may not have polished up on all of them. (Rapajic, 2009) Consequently, such Airlines are taking a gamble with people’s lives because their personnel’s lack of knowledge in one area could be the sole reason for the occurrence of an accident. (Bazargan, 2004)

Outline of what such a license can involve

Other countries that have flight dispatcher licenses usually achieve this by first starting with their parliaments. (Arscott, 2004) The government is supposed to pass legislation on mandatory licensing for flight dispatchers such that tighter regulation may be achieved. Once this is done, then regulations concerning all the legal requirements involving aircraft dispatch, monitoring, and safety will need to be put down. Since a flight dispatcher’s knowledge levels should be similar to those of pilots, then the exams done by UK pilots before getting their licenses should be the same ones that flight dispatchers do as they both hold joint responsibility for safety. (Hyland, 2009)

In such a license, it will be necessary to first start with the definition of who the flight dispatcher is as an understanding of the term may differ from country to country. The general responsibility of the flight dispatcher should be outlined and this may include: responsibility for the control of the aircraft, delegation duties, and emergencies as well. (Department for Transport, 2009) Specific duties need to be put in place as well and these may include: offering assistance to the in command pilot, preparation of operational flight plans, giving the in command pilot information about safety, and also details about what to do during emergency cases. Here, flight dispatchers need to start actions that have been outlined by the Civil Aviation Authority on emergencies. (Civil Aviation Authority, 2009) That individual also needs to work hand in hand with the in-command pilot to give him all the information that he will require to safely transport onboard members to a suitable destination. (Shaw, 2008)

The flight dispatcher license may also include other issues concerning the admission of such persons into an Airline. For instance, it may include information about the flight dispatchers’ minimum experience working in an Airline or the age-appropriate for such a job. It must also specify the minimum allowable training needed to become a flight dispatcher and the contents of that training syllabus should also be outlined.

Lastly, this license should also give details of some of the skills that the flight dispatcher needs to have. For example, it may list the following: an understanding of how various aircraft equipment work, an understanding of radio communication equipment, an understanding of several operations elements, and flight load details. In the latter area, the flight dispatcher should be familiar with the balance control issues, escape routes, and any approved exit or entry areas as well as the tasks of other staff members who possess operational control challenges. (Wells, 2002)

Conclusion

Licensing of aircraft flight dispatchers is an incredible and necessary idea in the Airline industry. This is because the level of education needed for this job is not as high as other professionals running aircraft, accidents are a harsh reality in air travel, aircraft systems have become highly complex and there is a lot involved in this job description. If licenses are issued in the UK for these airline operators, then pilots can be granted timely and accurate information that will make air travel more efficient and secure.

References

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