Assignment Sample on Developments in the Air Transport Sector
1.Introduction
With the progress of industrialization, various sectors have emerged as a core area of business. The transport sector has seen huge growth in the last couple of centuries. It is because of the emergence of the globalization culture In humans. Among other modes of transportation, traveling through airplanes became the most convenient way of transportation among the passengers and industries. Leon Delagrange was the first human who had flown as a passenger in an airplane in 1908. From that day, evolution in the Airline industry became dynamic. Different Technologies were invented to provide optimum safety and comfort to the passengers. In the old days transporting goods through waterways was preferred for transportation. Alongside passenger Transportation, the airline industry has seen growth in the cargo shipment sector also. Various changes in technological improvements have been introduced in airplanes to carry a maximum amount of cargo with minimum fuel consumption. Various types of business models of the airline industry that are being used around the globe have been discussed With their different aspects in this report.
2.key factors for successful airline operation
Evolution in the airline industry attracted a large number of users across the globe. As a result of that, competition started among various Airlines to grow a loyal customer base by providing optimum features and security to them (Polishchuket al., 2019). Senior managers from different airline industries have stated that their top challenge is to differentiate themselves from other Airlines to create a brand value that will eventually grow a loyal customer base. These days the performance of airplanes has increased, which provides less time-consuming travel to the passengers. But various factors have emerged as problems which are not in the control of airline service providers. Managing dost problems while keeping customer satisfaction as a priority becomes a major obstacle for airline industries. The key factors which drive the success of the airline industry have been discussed below.
- The airline business is an expensive industry which requires a huge amount of financial support for maintenance and operation. Widening the customer base and keeping them loyal solve the problem of financial support. Attracting passengers is quite challenging for an airline operators because there are already existing competitions(Ajanovicet al., 2021). The overall infrastructure keeps the customers happy as they feel convenient to use the particular airline. For example, an airline’s website needs to be decluttered and simplified, which can be operated by the users. In case of emergency and problem, the customer support team of the airline should be very supportive to their passengers. To keep in mind the long-term profit, airline service providers should also give small discounts to their customers that will feel valued by the company. Due to the covid situation, the safety of the passengers has become a huge concern for aviation companies. Following adequate safety measures and norms mentioned by the Global airline authorities are required to gain the trust of the passengers.
- The employees of any business provide the path to success for the company. In the aviation industry also, the team of the crew members’ performance decides the upgradation of the company among other competitors. Track of their performances has to be done to identify existing flaws in the sector. Deciding the adequate number of Kyon members is a key factor for serving the customers (Bakker et al., 2017). If an employee of an airline company understands the company’s value deeply, they will understand their duties, and as a result that they will acquire great reason-making skills, which will be proved to be beneficial for the company. For example, the ground staffs, KLM staff, flight attendants, and Crews have to be committed to their customers by emotionally engaging with the companies’ values. Stating the goals to the Employees are required to make them understand the requirements of the company.
- Working in isolation without communicating and engaging with others is not possible in the airline industry. Continuous synchronization of work between the air traffic control and other airline operators is necessary for safe and fluid operation. Engaging with stakeholders is necessary for stating the requirements of the company. For example, joint airline operations like Vistara, Indigo always establish communication to bridge the gap between their stakeholders and partners (Hall et al. 2018). Effective communication among Air Traffic control and other airline operators provides safe and stable airplane route operation. Engaging with the ground transport system like private cab and bus services is also necessary for handling fluid movements of the customers towards the airport. This also increases the hospitality rating among the passengers. Establishing regular communication of the food suppliers for the aviation company is also required to maintain the hygiene and convey them customer Requirements.
- Maintenance and upgradation of existing Technologies are also important for the safety and stability of the flight system (Vilchezaet al. 2020). Dependencies on analog-based systems have been considered outdated in airline systems like the rest of the world where digital technologies have emerged. While operating airline business, digitalization in every sector is needed to establish effective communication between the employees and air traffic control system. Creating a digitalized workspace among the company enables the managerial departments to check every critical area of operation with ease. This also reduces the chance of error occurrence effectively.
- Managing the Finance Department of an airline company is a component for effective operation. Keeping track of revenue and other expenses helps the managerial departments of the company to set their upcoming goals accordingly(Mohsin et al., 2019). “Revenue unit” and “unit cost” are the primary pillars of the financial department of the Aviation industry. Keeping a relation between them is necessary.
3. Discussion about different airline Business models
There are mainly five types of Business models of the airline industry currently implemented across the globe. Discussion about their advantages and limitations has been discussed in the section below.
- In Europe, the Legacy Airlines system has been adopted over the years. At the time of introduction,” Legacy Airlines” was adopted by the government aviation industry; later, when the private players entered the market, they also adopted this system. These types of airline systems usually have a large fleet which is designed to operate in diverse routes (Ivkovićet al., 2018). The routes vary from long haul to short-haul, passing by medium-haul.”The Legacy Airlines” system has the benefit of acquiring other aviation-related services like maintenance facilities. fooding companies, airport hubs, etc. Good reputation from the government and private clients has established the system as most preferable. Onboard meals and package facilities have been provided in the system. a stable timetable of flight arrival and departure provides assurance to the passengers.
- The flight cost of luxurious and premium airline facilities is very high. To attract a large number of customers, the idea of “low-cost carriers” has been introduced. It was first implemented in the United States, but it is gaining more popularity among other countries. The primary focus of this system is to keep a balance between the cost of the flight and the hospitality of the passengers. These types of airline systems take several cost-cutting techniques like vomiting on board mill services and external taxi services to save money. “Unified monotype” has been inducted in this type of airline system to save maintenance cost of the airplanes. ” low cost carrier airline system” operates in a bubble mode where a flight only operates through a point to point destination(Ajanovicet al. 2018). Passengers who were willing to take benefits of adjoining flights have to recheck in at the entrance of the airport. This technique saves the utilization of reservation software as well as the check-in price. The adoption of “low-cost carriers” has attracted a large number of passengers to the aviation industry.
- “Regional Airline” is a special type of Aviation business model which transports passengers from smaller airports to other regional airports or “larger hubs”.The popularity of these types of the airline is Greater in the area were traveling through other mediums is difficult rather than using airplane (Tian et al. 2018). These types of airline systems are government-subsidized, so the prices for traveling are relatively low.
- Privatization of the airline industry has not only opened the door to passenger transportation but also the shipment of goods. ” cargo airlines” Manages the shipment of different card units within a country or across the borders. These types of airline systems don’t require cabin crew or flight attendants as they only transport various materials and goods. These types of airplanes generally Travel at night on the basis of the contract. Cargo Airlines need special types of attention for optimum security of the goods they are transporting.
- Airlines can be used as the means of spending vacation time around the world. ” Charter Airlines “Is designed to manage the need for transportation during the holiday season. The passengers usually gain the serviceability of a particular flight route for holiday trips around the world. The passenger gives location inputs, and the flight operates according to them. This system is designed for luxury purposes and Generates enormous revenue for one operation.
4. Impact of development in airline models on their Customers and profitability
“Global airline Alliance”, one world, SkyTeam and “star Alliance” was in charge of enrolling in a new aviation Corporation and providing a license for operation. The airport industry generates enormous revenues, and it takes around 1% of the national GDP of a country (Brynolfet al., 2018). Various companies like Airbus, Boeing have advanced their passenger flight and cargo flight facilities while keeping safety and comfort in mind. As prominent figures and VIPs use airplanes for transportation, the security, and stability of the system needed to be enriched. With the introduction of various cautionary and self defense systems in the airplane, the flight cost increased enormously. Traveling through aero planes became luxurious for the passengers with the advancement of other technologies in different fields. The flight cost increased according to the class system. Low-cost carriers have been introduced together with a large number of passengers, which widened the prospective off-air travel system. Due to the covid-19 situation, the growth of the aviation industry stalled for some time due to travel restrictions in many countries. With taking control of the virus, the airline industry is coming back on track with enormous growth. Various types of wireless systems have been designed for specific passenger groups according to their requirements.
5. Recommendations for achieving sustainability
Operation of flight produces a huge amount of carbon footprint, which negatively impacts on the environment. jet engines require a high amount of gasoline which is conventional fuel, and a large amount of CO2 and CO is produced during operation (Dimitrioset al 2017). Besides the flight of the airplane, usage of plastic can be seen by the passengers and the flight attendants. To encourage the use of aluminum recently SAS has decided to remove the duty fee of selling aluminum canned foods inside the flight. Usage of biodegradable cutleries has been increased in many flight operating services to mitigate the dependencies on plastic solutions. For example Etihad yeah boys has become the first airline which operated without any plastic on board. As electric powered jet engines have not yet developed, the flight of Airtel has to look for other sectors like mitigating the usage of plastics for minimizing environmental impact. It also minimized the operation cost of each flight massively(Smith et al 2018). Recycling of used products has also been encouraged by the Global community of airline services.
6. Conclusion
The airline industry has seen massive growth in a couple of years. It is due to the technological advancement and scientific research in the airplane field and other fields also. Safety of flight operation has increased due to the introduction of many external and internal devices. Various modes of flight operation have been invented for providing flexibility for passengers while choosing the types of flight. Along with the advancement in hospitality of the passengers environmental impacts flight operation has been taken care of by adopting new measures.
Reference list
Journal
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