MAR030-3 Aviation and Airport Management Essay Sample
Module code and Title: MAR030-3 Aviation and Airport Management Essay Sample
Introduction
- a) Scope of the research question
The study depicts the issues related to the airport congestion faced prior to the Covid-19 global pandemic. The study further discusses the suggestions offered by IATA in terms of the recovery process of traffic levels in the aviation industry by the year 2024. The question is whether the aviation industry would be able to deal with the airport congestion issues from 2024 onwards. An evaluation of the question is done in the study assuming that the aviation industry would maintain its “annual growth levels” of the pre-pandemic scenario.
The scope of the question demonstrates that there is a chance that the aviation industry may cope with the issues related to airport congestion in the near future by reframing the financial budget prepared for the industry annually. The background of the study can be analysed from the news articles related to the aviation industry. As per the article “Call for airport congestion charge”, the international governments are planning to introduce a “congestion charge” for the passengers of the airlines.
- b) Contextual background of the study
The background of the study reveals that prior to the global pandemic; the international airports started taking action regarding the issue of airport congestion. The article named “Airport congestion blamed for peak season drop in air cargo volume” depicts that the flight schedules had been reimposed in order to recover the traffic levels up to 65%.
The traffic levels at the initial phase of the global pandemic were low. However, during the announcement of the global pandemic, the requirement for air travel increased resulting in airport congestion and a shortage of aviation staff. During the peak period of the global pandemic, the international guidelines for the aviation industry demanded strict restrictions on travelling which resulted in the financial downfall of the variation industry throughout the world.
The academic framework of the essay would draw attention to the aviation issues identified internationally along with the scope of a better aviation performance by the year 2024.
The essay would direct the mitigating actions required for the upliftment of the aviation industry from a future perspective. The study depicts that passengers from different parts of the world faced the issue of poor aviation facilities due to the poor economic conditions arising during the global pandemic. The study will draw upon the financial barriers and the mitigating factors along with the staff management system of the aviation industry.
Moreover, the traffic levels contributing to airport congestion are also discussed in the study. The role of the airport authority in maintaining the airspace capacity is discussed in order to analyse whether the question of the mitigation of aviation congestion can be resolved. An analysis of the future trends and customer demands with respect to the aviation industry is required for optimizing the steps required for improvement by the year 2024.
Technological advancement also plays a significant role in the up-gradation of aviation facilities. In this regard, the introduction of innovative technology in the aviation facilities is required from time to time. Moreover, the correct scheduling of the flights along with the availability of an adequate number of flights may also contribute to the strategies used to deal with airport congestion issues.
Literature Review
Evaluation of the economic condition of the aviation industry due to airport congestion
- a) Introduction
The objective of the current theme is to evaluate the impact of airport congestion on the economic condition of the aviation industry during the Covid-19 pandemic. The aviation industry around the world has been faced with several challenges because of the pandemic caused by Covid-19. One of the major issues that airports across the world faced was related to airport congestion. According to Bongo and Ocampo (2018), the airport congestion has forced airport authorities to make some alternate ways to operate during the pandemic.
As per the studies, a rise in Covid-19 cases has resulted in reducing the arrival delay of flights by 1 min. 42 secs. and departure delay by 2 min. on average. Therefore, the results suggest that a green signal is there for the aviation industry despite its poor economic condition during the Covid-19 pandemic. In the opinion of Ceria et al. (2021), around 95,000 passengers had gone through screening across the airports in April 2020. The numbers suggest a 96% decline in the population from the same month in the previous year.
The research question in this study is related to the issues of airport congestion and how the aviation industry can deal with the issues to match the pre-covid annual growth level. The airport congestion during the Covid-19 period has caused an economic crisis in the aviation industry of several countries. The International Air Transport Association (IATA) is suggesting that the industry is going to recover from the losses faced during the Covid-19 pandemic by 2024 (Iata.org, 2022).
However, the aviation industry needs to take the necessary steps for solving the airport congestion issues. As per Chen et al. (2019), heavily used international airports are exposed to serious threats related to both mid-air and ground collisions. Additionally, major airlanes of inter-city operators are heavily congested which makes the situation worse.
The increased movement of private airlines also seems to pose a threat in front of the intercontinental operators. The problem rises as the inexperienced pilots accidentally enter their lanes. All these factors cause congestion in airports of several countries.
- b) Connecting the theme with the research question
Air traffic congestion is responsible for imposing a lot of major issues on the aviation industry such as excessive usage of fuel, and air pollution or noise pollution associated with that. Most of these issues generally happen near airports as airlines are parked there for hours. As per the opinion of Di Vaio and Varriale (2020), 63,000 tons of fuel is burnt by British Airways on an annual basis.
The main reason behind this excessive usage of fuel is the air traffic delays across the nation, especially at Heathrow and Gatwick airports. Passenger waiting time at major airports extends up to hours for the airport congestion. This is arguably the main reason for aero planes wasting fuels to maintain circular patterns. The runways also get blocked due to the aero planes stacking there and waiting for the departure.
The situation became worse during the Covid-19 period as most people were at the waiting lounge for departing to their respective destinations. In the opinion of Dixit and Jakhar (2021), the airport congestion during the Covid-19 reached its peak in 2021 as the governments of Europe faced a loss of $980 million for excessive flight delays.
Furthermore, the aviation industry was already facing an economic crisis for the last few years due to several reasons. Hundreds of collisions or near-miss collisions are reported every year around the world. Most of these cases are faced by major international airports that are responsible for the transportation of 5-30 million passengers annually.
In Europe, a loss of $400 million has been faced by the aviation industry in 2021 due to the poor infrastructure of the airspace system across the nation. In the opinion of Li et al. (2022), there are several other factors that influence the issues of airport congestion such as insufficient routing, altitudes, and other related problems to complex structures.
$1.8 billion is lost by the airport authorities of Europe because of the excessive price hike of airline fuel. Airport congestion has a huge impact on the operation of flights and also fights get massively delayed due to this. Delay in one flight automatically causes delays to other following flights. In 2020, $4.2 billion has been estimated as the loss incurred by the airport authorities of Europe due to the inefficiencies in the aviation industry. The amount is estimated to reach $31.5 billion by 2024 if proper strategies are not implemented by the industry after the Covid-19 period (Iata.org, 2022).
The Air transport industry of the European Union was at its peak in 1999, but just for a couple of weeks. The number of aircraft movements was calculated as 26,000 per day in Europe at that time. The number was even better for its counterpart USA which was calculated as 48,000 aircraft per day. On the other hand, most areas of the European Union airspace were controlled by the military authorities across states in 1999.
According to Liu et al. (2022), this was arguably not the best move as the air traffic increased due to the limited use of civil aircraft. Additionally, increased air traffic caused congested skies as well as airports. Therefore, it can be clearly seen that the aviation industry faced congestion issues a long time before the Covid-19 pandemic. The airport congestion issues faced in the pandemic period are different in nature from the issues of 1999.
The congestion issues during the Covid-19 pandemic have mostly impacted the economic condition of the aviation industry, whereas, in 1999, the issues were raised due to the poor infrastructure of the airports. The infrastructure of today’s airports is capable of handling thousands of passengers per day but still fails to match the requirements of passengers due to several factors such as hikes in fuel prices, restrictions in movement during the Covid-19 period and many others.
Critical assessment of maintaining customer satisfaction level in the post-pandemic era
- a) Introduction
The focus is always on Europe when it comes to airport congestion, although it has become a global problem now. The main reason behind the airport congestion in Europe is the penalties imposed by “Flight Compensation Regulation 261/2004” or EU261. However, over the past few decades, the problem of airport congestion is faced by several other regions also such as North America, Asia and others.
According to Lykou et al. (2020), the on-time performance of flights in several international airports is suffered due to airport overcrowding. In North America, around one-quarter of flights are delayed for the same reason. On the other hand, on-time performance of aircraft is around 70% in Asia. China is also planning to build new airports across the region to increase the passengers’ capacity and offer better accommodation to the passengers.
However, the plan still has a chance to put a strain on the system as it is likely to cost a lot of investments from the government. As an example, the government in Europe is implementing new rules and regulations to provide passengers with a comfortable journey free from any inconvenience or economic loss during their journey.
EU261 has been imposed by the European Union to collect fines from the consumers for any delay, cancellations, or overbooking of hotels and meals. A perfect example of this is the bill of rights imposed by the Canadian government in 2019 which is similar to the act of EU261.
- b) Connecting the theme with the research question
European airlines recorded 11 million flights to be flown in 2018 which is much higher than the earlier year. However, this growth has negatively impacted the aviation industry as it created an extremely challenging operating environment across the country. In the opinion of Noto (2020), Airports have become busier than ever for the increased number of arriving and departing aircraft. Hence, airport authorities have very little time to run maintenance on the area or organize the ground personnel in a proper way.
The European airlines have failed for these reasons and in 2018 for the fifth consecutive year. The sector recorded an average delay of 15 minutes and a maximum of an hour. The cancellation rate of flights has risen to 35% from 20% in 2020. According to Rodríguez-Sanz and Andrada (2022), the aviation industry is becoming unsustainable continuously as a small deviation in the timetable can cause damage to the entire system.
The Covid-19 pandemic has worsened the matter in the aviation industry as the amount of airport congestion has significantly increased. IATA has suggested that air travel is going to grow at a much faster rate in the next two decades because of the increasing demand for passengers. Therefore, airports across the world need to be prepared for the jump in the number of audiences.
On the other hand, the Covid-19 pandemic has affected the aviation industry in many other ways such as price hikes of fuels, or restrictions on flight operations. IATA has projected that the number of flight travelers is going to be decreased by 1.2 billion in the next two years. Additionally, the revenue of the global aviation industry is going to fall by $160 billion in the same period.
Therefore, the aviation industry needs to be fully aware of the situation and make changes in the infrastructure accordingly. In the opinion of Rodríguez-Sanz et al. (2019), they can build new foundations for success by collaborating with famous businesses and forming partnerships. The main thing that the aviation industry can focus on to get back to its shape is achieving the customer satisfaction level. New strategies need to be developed that can match the demand of the changing world.
A large uncertainty looms over the fact that how long it will take for people to return to their old habits. However, one thing is sure they will not compromise with safety at any stage of travelling. According to Romero et al. (2020), the aviation industry needs to disrupt its service deliberately so that it can focus on the business from the perspective of customer experience. The future of the industry depends largely on the changing expectations and demands of customers. In most cases, the ‘new normal’ is projected to be the reduced demand for business and lesser air travel people.
As per studies, 69% of passengers around the world stated that they do not feel safe flying during the Covid-19. Additionally, the situation is expected to stay a long period of time. As per the statement of Suwanwong and Sopadang (2020), the recovery is going to take much more time than expected, and therefore, the airport authorities need to invest in improving the ability to identify the changing customer demand as well as anticipate key trends. On the other hand, the industry can recover from the situation with the help of collaboration or cooperation with each other that can be beneficial to providing high satisfaction levels to passengers.
CRAAP TEST | |||||||
Currency | Relevance | Authority | Accuracy | Purpose | |||
Ugirumurera et al. (2021) | This source is one year older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The collected data is reliable as proper page numbers and article name are found | The collected data has helped to reach an authentic outcome of the study | ||
Zumrawi et al. (2020) | This source is two years older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The page numbers and authors’ name indicates its reliability | The article has helped gather important data related to the topic | ||
Rodríguez-Sanz et al. (2019) | This source is three years older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The authors’ name and title of the article denote its relevance to the topic. | It has helped to do the thematic analysis of the topic | ||
Liu et al. (2022) | This source is as same as the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The source of the article indicates its authenticity | It has helped a lot to do the literature review part of the study | ||
Chen et al. (2019) | This source is three years older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The indicative page numbers at every single information represent its relevance | It has helped to complete the reflection part | ||
Suwanwong and Sopadang (2020) | This source is two years older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | The name of the authors indicates its authenticity | It has helped to critically analyze the themes | ||
Noto (2020) | This source is two years older than the current year | It is relevant to the topic of airport congestion | It is collected from Google Scholar | Proper page numbers and authors’ name indicate the relevance of the article to the study | It has helped in finding necessary information of the aviation industry | ||
Table 1: CRAAP Test (Source: Self-created)
Critical review of the mitigating approaches applied by IATA.
- a) Introduction
“IATA” has evaluated the key risks associated with aviation congestion along with the factors that could mitigate the issues by the year 2024. As per the view of Huang et al. (2020), the association has decided to “create sufficient pipelines of pilots” in order to meet the passenger demands. Moreover, IATA is known for presenting the issues of around 83% of the total international air traffic and focuses on the upliftment of the aviation industry from time to time.
The association has created three major objectives from a future perspective of aviation activity including the evaluation of the future opportunities, evaluation of the alliance level of the aviation industry, and taking action on the growth of “sustainable air connectivity”. In order to analyse the opportunities, the concerned association decided to analyse the implementation of innovative technology in the aviation industry.
According to Pamplona and Alves, (2019), the aviation industry faced the challenge of the technological barrier during the pandemic period since the industry failed to face the instrumental expense required for proper aviation facilities. The poor economic condition gave rise to poor facilities provided to the passengers and customer dissatisfaction.
Hence, there is a requirement of identifying the innovative tools and techniques needed in the future. Innovative technology can enhance passenger satisfaction by up to 65%. The tax structure formulated during the covid situation needs to be improved and changed as per the situational analysis of the current post covid scenario. Moreover, the alliance performance of the international industry declined by around 64% during the covid pandemic which led to a shortage of airline staff since most of the staff members were fired due to economic downfall. Rodríguez-Sanz and Andrada, (2022) have stated that the staff shortage created a buzz in among the passengers regarding the insufficient facilities provided to them.
On the other hand, around 90% of the aviation operations stopped during the pandemic and by the end of the year 2020, 98% of the airlines’ activities were stopped internationally. This gave rise to the immediate financial downfall of the aviation alliance.
- b) Connecting the theme with the research question
Based on the economic status of the international aviation industry, IATA stated that there is an immediate necessity for revenue generation in order to cope with the loss faced during the pandemic. Lin, (2020) has encountered that the travelling restrictions have been slowed down in order to increase the number of passengers gradually. Moreover, the facilities related to the maintenance of social distancing have been provided within the airports for making the passengers feel free to opt for air travel again.
There is also a requirement for scheduling international flights and increasing the number of flight departures in order to enhance the number of flight bookings. The congestion in the airport can also be reduced by the increase in flights. As opined by Brander and Cook, (2020), more staff members need to be hired for decreasing chaos within the airports and reducing the compactness.
IATA has reactivated around 30 aircraft that are scheduled for the fourth quarter of the year 2020. However, the association has not expected to put over 45 to 50 aircraft into the service in the first quarter of 2021. On the contrary, prior to the Covid-19, around 100 aircraft fleet internationally, this declined during the arrival of the global pandemic.
IATA has objectified that its main focus needs to be on the initiation of “new cargo routes” in order to increase the utilisation of the cargo flights which would be helpful in generating additional revenue. Lykou et al. (2020) have claimed that an analysis of the different governmental rules and regulations regarding the aviation restrictions needs to be done for formulating specific strategic applications internationally. In this regard, the association has initiated the PCR tests within the airports and after 72 hours of the testing, the passengers are provided with their PCR results.
In case any passenger tests positive in the PCR test, a strict rule of 14 days quarantine has been implemented for such passengers. Moreover, repetitive surveys have been conducted in order to obtain the opinions of the passengers regarding the airline facilities being provided to them after the covid pandemic.
The passenger demands are overviewed on a regular basis, based on which the aviation policies have been improvised from time to time. As per the study released by the IATA in October 2020, 44 cases were recorded of the “flight-related transmission” of the Covid-19 among around 1.2 billion travelers worldwide. This led the aviation industry into trouble since air travelling became a health risk for the international population.
According to Zhang and Lili, (2020), in order to mitigate this problem, the association decided to increase the aviation charge which could reduce the number of passengers and at the same time, maintain the profit margin. However, people did not stop travelling even after the hike in the airline charge. Moreover, the international governments also reduced flight departures for maintaining a stable level of human encounters at the airports.
On the other hand, the increased flight bookings led to a shortage of space within the airports and gave rise to airport congestion. As a mitigating strategy, the IATA strategized mitigating factors with “flair and imagination”.
Based on the past scenario of the pre-pandemic situation, the association decided to reduce the expenditure on air travel by around 50% by the year 2024 which could be helpful in minimizing and resolving the financial loss faced during the pandemic. As claimed by Alodhaibi et al. (2018), after the hike in airline charges, passengers reduced their flight bookings and gave negative feedback about the airport facilities provided to them.
Therefore, it is very significant for the aviation industry to gain passenger trust and satisfaction back in the next few years. However, it is a challenge for the variation industry to meet the expectations of the passengers who book their flights in a condensed period. This is a major reason behind the airport congestion. Hence, there is a requirement for implementing a strict rule regarding the cashback facilities on instant bookings.
Critical Reflection
Impact of congestion on the economic status of the aviation industry
Congestion has emerged as an ever-growing issue in the airline industry as it has resulted in several incidents of delays in flights. 25% of flights have been delayed by approximately 10 minutes due to the overbearing congestion at the airports around the popular global countries. On the other hand, the spread of COVID-19 has slowed down the operations due to the important guidelines of the governments.
The implementation of proper sanitation and temperature check of the passengers has increased the waiting time at the airport, and it has further increased the congestion. In my opinion, congestion at the airports has also decreased the satisfaction of the consumers. In addition to that, the consumers are displaying a negative attitude toward the popular airports due to the excessive congestion and it has reduced the overall revenue of the global aviation industry.
The restriction of the COVID-19 has discouraged the consumer from availing of the services of the aviation industry which has greatly impacted the economic stability of the aviation business. The effects of the conjunction and COVID-19 have greatly decreased the performance of the airlines. Due to the reduced annual revenue, airlines around the world have laid off a large number of employees in order to gain sustainable profit.
As a result, the operation has slowed down further and created additional issues in the airports. In the aftermath of COVID-19, the travel industry has observed airports authorise swift hikes in the economic growth as the people are eager to travel after the long lockdown period. It has effectively burdened the airport authorities in maintaining the proper flow of the operations. Several airlines have faced bankruptcies due to the lack of consumers .in recent years.
Moreover, the airports and airspace are being clogged by the arrival of the aircraft. The punctuality of the European aviation organisation has fallen by approximately 13% in 2021. I think the airlines need to evaluate their operational strategies in order to create an effective plan to optimise their available space more efficiently in order to reduce congestion.
Passenger satisfaction during the post-pandemic period in the aviation industry
Based on the evaluation of the post-pandemic scenario of the aviation industry, I have observed that there has been an increase in the number of passengers after the elimination of the social distancing regulations. As per the view of Dixit et al. (2021), people are more interested in opting for air travelling since they have been seeking the facility for the last two years of the global pandemic.
I have realized that the increasing number of flight bookings is the main reason behind airport congestion. Moreover, there has been an increase in the number of international travellers in the era of post pandemic by up to 75%, which is a matter of concern for the airport staff.
The aviation industry has imposed the EU621 regulation on the global airlines’ platform in order to obtain fines from the passengers for any unethical behaviour such as ticket cancellation, overbooking, or delay. In my opinion, this step is beneficial in reducing airport congestion to some extent.
These rules have led to passenger dissatisfaction which led to a reduction in instant bookings. However, the study further reveals that there is evidence of new rule implementation in the variation industry in Europe. As stated by Wang and Zhao, (2020), the European government has decided to facilitate their passengers a comfortable journey. In my opinion, this action is suitable to enhance passenger satisfaction and more passengers will be willing to opt for the air travel in the next few years.
The number of flights has also been increased in order to mitigate the challenge of overbooking or shortage of flights which eventually reduces over congestion in the airports. I have realised that the improvisation of the technological applications within the variation industry is very crucial in order to meet the demands of the passengers.
According to Zaharia and Pietreanu, (2018), the “European airlines” have failed to meet their goals of satisfying their passengers since they have lacked in the maintenance of proper flight schedules. Most of the flights were delayed post pandemic due to shortage of airport staff and the passengers were highly dissatisfied with the performance of the airline industry.
Mitigating approaches strategized by IATA in the aviation industry.
Airport congestion has made IATA concerned about the future opportunities of the aviation industry. Therefore, the association has evaluated the future demands regarding aviation facilities and started working on the improvisation of the regulations that have been designed for the year 2024. I have optimized that there is a requirement of pointing out the lacking factors of the present scenario of the aviation industry for designing a proper mitigating solution.
According to Jacquillat and Vaze, (2018), airport congestion is a severe matter and needs to be resolved via infrastructural, as well as technological improvisation of the airports. According to me, the association needs to prepare an investment plan for the aviation industry in terms of employment, staff selection, ticket booking facilities, and enhancement of the number of flights. The infrastructural improvement can be helpful in adding value to the space enlargement of the international airports (Iata, 2022).
Moreover, there is a requirement of reducing the flight fair by around 40% in order to grab the attention of more passengers. As described by Hou et al. (2021), the airline facilities provided to the passengers need to be restructured for increasing the level of passenger satisfaction. Since the risk of Covid-19 has still not been completely demolished, I believe that there needs to be maintained proper social distancing decorum within the airports in order to prevent the upcoming risks. Risk assessment and preventive measures are required prior to the re-encounter of the pandemic situation.
Conclusion
- a) Discussion key points of the study
The aviation industry around the world has faced several challenges during the Covid-19 period that are mainly related to customers and their convenience. The main problem faced by the industry is related to airport congestion. Issues of airport congestion have been faced by the industry before when in 1999 the European Union failed to match the customers’ demands due to the poor infrastructure.
However, it has also been seen that the nature of the issue is different to each other. The problem raised during the pandemic is a long-term issue that can damage the aviation industry economically and technologically.
- b) Demonstration of the central point
IATA has suggested that the aviation industry needs to make quick strategies to recover from the losses of the pandemic. It is estimated that if the industry takes steps now it will take at least three years to get back to its previous shape. The real solution to the issues of airport congestion is to find ways that can mitigate the disruption and pressure points of the industry. It is necessary for the airport authorities to invest more money towards developing a better infrastructure for matching the needs of customers.
The main cause of the problem of airport congestion is the mismatch of demand growth and investment in developing infrastructure. Airports become congested due to the increased number of passengers and flights with the rapid change of time. Many airports in the world such as London’s Heathrow Airport are considered highly constrained as the congestion rate is always high in the airport. The aviation industry needs to give utmost importance to the customer demand that has changed dramatically after the Covid-19 pandemic.
Therefore, the industry needs to halt its daily operations for some time and focus on developing an infrastructure that matches the changing customer demands. Passengers have become more conscious about their safety during travel. Hence, operators need to provide flexible journey experiences to passengers.
Reference List
Journals
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Others
FreightWaves. 2022. Airport congestion blamed for peak season drop in air cargo volume. [online] Available at: <https://www.freightwaves.com/news/airport-congestion-blamed-for-peak-season-drop-in-air-cargo-volume> [Accessed 18 May 2022].
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the Guardian. 2022. Call for airport congestion charge. [online] Available at: <https://www.theguardian.com/p/na8q?CMP=gu_com> [Accessed 18 May 2022].
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