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AVA80013 Airline Operations Management
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AVA80013 Airline Operations Management
0 Download10 Pages / 2,271 Words
Course Code: AVA80013
University: Swinburne University Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
After completing this module you should be able to:
• Describe the development of airline operations in Australia;
• State the effect of deregulation and other government policy on the current structure of the domestic airline sector;• Provide an overview of the major issues and challenges facing airline management in Austra
Answer:
Introduction
Air transport is a system that covers organizations, rules and stakeholders. Operations at an airport system comprises of the industry brands and personnel. These exist in a dynamic and highly competitive industry. In the Australian environment, the government provides regulations that shape the management of the industry operations. Stakeholders in the industry include brands, operators, government and customers. Low cost carriers (LCC) embrace strategies that complement this airline structure for higher yields. On the other hand, the customer considers the benefits that an airline offers. The success of an airliner depends on the business model adopted. Job satisfaction in an organization sums lies within the airline operations management. The organizational framework includes industry specifics and guidelines for the operators (Koustelios & Belias, 2014). Creating safety and competiveness in the airline industry calls for effective management strategies covered under rules and regulations. This discussion looks at the challenges faced by airline industry players in the industry. Organizations observe these regulations amidst trying to gain a competitive edge. In a free market system, there is need for measures that prevent conflict of interest. Designated rules and regulations in the Australian airline services focus on the commercial, social (sports, drones etc.) as well as military services. These are international and local airlines.
Makers of the rules and regulations
The Australian regulatory system includes policies from the government, private sector and international spheres. These are regulations and set guides on aircraft noises, navigation, airline licensing, air services, airspace and transport security among others (Australian Government, 2018). Presented under the division of Aviation and Airports these government policies regulate the operation of airports and the aviation sector. The technical aviation sector requires detailed agreements that govern the freedom of flying over the international airspace. Consequently, the passenger delivery and repatriation process calls for stakeholder engagement between the Australian Airservices and the airline service provides. Policies about service stops open skies and liberalization contain international treaties. The Civil Aviation Safety Authority (CASA) has a main concern in safety and promoting general aviation behaviors through legislation (Federal Register of Legislation, 2018). This organ involves skilled workers in the industry, specialists and stakeholders. CASA organizes conferences and training on safety. It also supports airworthiness, flight-testing, quality manufacturing and inspection of airline and equipment. Its policies cover aircrafts as well as engines, equipment and contracts. The Civil Aviation Authority (2017) defines dangerous goods as those that place human health under risk. Safety and environmental concerns are critical in the National policies.
On the other hand, the International Civil Aviation (ICAO) and the International Services Commissions ( ISC) focuses on air navigation on a global scale (ICAO, 2018: International Air Services Commission, 2018). From this, statistics indicate an increase in the rate of accidents within scheduled commercial flights. ISC cases include reviews of airline routes, use of capacity and airspace conditions. International rules and regulations hinder and control fatal accidents in scheduled flights. ICAO partners comply with the regulations for a safer international aviation environment. The standardization in the Aviation industry within Australia takes into consideration fuel efficiency and the environmental release of greenhouse emissions. Rules also contain information about the deregulation of airline structures in order to accommodate new entrants. Among these regulations are policies on the cost, and domestication of flights. Industry players adopt strategies such as low cost and lucrative carriers in order to tap into the markets. The international market has an environment that depends on regulations for a multilateral environment (The Economist, 2015). In this case, dealing with diverse government regulations comes with pros and cons. Among this is unfair taxation, protectionisms and unfair trade terms.
Air and sea brands continue to grapple with air pollution concerns (Stevenson & Schofield, 2017). Regulations in this industry affect the social and economic impacts. Australia as a territory has a framework for airlines traversing states and its territories. The policy framework covers the regional routes such commonwealth environs. The regulations influence mode of operations hence an effective model is reliable and free from risk. An example is the on cargo and dangerous airlines rules, which dictate ways of transporting goods, handling of labels, passenger safety and packing items of travel. The risk reduction process comes with safety and security concerns. Increased demand in a type of airline leads to carrier integration, which means the introduction of foreign investors. An example from the Western Australia Air Services reveals an interstate hence changes in regulations (Department of Transport Western Australia), 2018). The government has objectives such as regulating interstate transport, and reduction of costs. Conditions placed in the industry may hinder licensing procedures. Such rules and regulations empower the service providers to operate in the interest of the public. Licensing requirements include proper helicopter policies for aerial photography, spraying, crop dusting and surveying, flight management policies feature aircrafts from regulated and unregulated routes.
Capacity rules and business models
The Sydeny Morning Herald gives an account of capacity in the airline industry as a risky business (Webber, 2012). Statistics of business operations indicate woes between brands such as Qantas and Virgin Australia. An attempt to capture the domestic and international market share leads to winners and losers. Some may raise their capacity and win while others suffers assive loses. Consumer and market trends shape the industry by influencing changes in capacity and new strategies for groth. Regional and domestic market capacity framework influence the revenue outcome for arliners. Air transport in International Logistics involves a global supply chain with numerous stakeholders (Mason, 2014). This means a capacity cycle with annual indicators for competing airlines. Putting pressure on capacity in order to gain yields in the market may require improvements in personnel and marketing strategies. Airline transportation covers the infrastructure of laid out in the ground as well as air services. This means that a network of organizations are part of the team. Such complex frameworks require effective policies to facilitate for the business relationships. Collaboration in business may reduce costs but the management of alliances comes with challenges. Rules and regulations guide the cooperation’s while offering solutions to exiting limitations.
Regulations in marketing, airline operations and scheduled services tackle challenges in operations management. Strategic controls facilitate for interventions, restrictions, cooperation, and engagement. A highly competitive environment has multinationals, which may thrive at the expense of the domestic airlines. The Australian Competition and Consumer Commission (ACCC) stands as a watchdog against unfair practices such as price fixing (Australian Associated Press, 2018). This is one way through which service providers in this industry engage in dishonest reporting and exploitation of the customers. Commercial viability in this industry is dependent on brand market share, and level of services. Financial indicators reveal whether an organization has a succefful strategy or not. Regional airlines such as Qantas may tap into the corporate passanger market while Virgin Australia invests in the low cost customer. Percentage increases show gaps in supply and demand. In some cases companies experiencing loses have had to make job cuts in order to cope with high costs and inability to meet capacity needs.
Changes in capacity focuses on the type of airline, existing opportunities and nature of operations. Organizations venturing into the lucrative markets without a proper strategy may collapse. The Australian governments strategic approach to Tourism motivates international airliners in the industry to make changes on capacity (Tourism Australia, 2018). Competitiveness in the industry effects policy changes and economic regulations to suit the state or territory. Strategies such as the Tourism 2020 encourage quality experiences from demand factors. This leads to infrastructural development in support of the market potential of the industry. Tourism as a major industry link to the airline industry influences the demand and growth aspect of the industry. It presents prospecting clients with an influence on the increase in aviation capacity. High arrivals signal an evolution in the market demand which may lead to an overhaul of the capacity systems. Report shows a comparison between Asian and Australia Tourism campaigns and the role of airlines in the growth of inbound plances, introduction of new routes and lauch of new airlines (Tourism Australia, 2013). This brings out the role of technology apps and mobile ticketing and codesharing strategies for increased capacities.
Global interdependence and Airline implementation procedures
The airline industry features transport as well as non-transport industries. The courier service is a common example of such services. Revenue growth strategies include sustainable approaches that focus on people as crucial in business (Virgin Australia, 2013). The development of strategies centered on the customer involves a wide range of plans. However, regulations within the organization determine the priorities in order to ensure efficiency. Business loyalty in service excellence includes incorporating extra services and partnerships. Legislation in Australian aviation includes Air Navigation Act 1920, Civil Aviation Orders, Civil Aviation Regulations, Airworthiness Directives, and Civil Aviation Act (Swin, 2015). Inscribed under the constitution, these laws determine the issuance of licenses for operations within routes and legal cases emerging in the industry. The involvement of parliament as a stakeholder in the formation of laws explains the development of a comprehensive legal structure. Aviation related laws influence a wide area. Safety laws include air navigation, regulatory processes, safety procedures within the airline routes and organizational policies. Compliance advisory laws contain constituent laws and variations for operator response mechanisms. These provide an avenue for reforms in flights such as helicopter operations. Cabin safety includes crew training and operational requirements.
Harmonizing regulations in order to influence international sales and production trickles down to the manufacturing sector. For example, in order to ensure fuel efficiency, Qantas and Virgin Australia invest in sustainability practices such as procedure reviews (Virgin Australia, 2015). The international policies in this case feature inter and intra state standards governing the airline operations. International conventions such as the Chicago Convention influence the formation of industry laws. Bilateral agreements between states such as the Commonwealth laws control the navigations. This means scheduled aviation practices in economic and technical areas. International standards on the manufacturing process ensures that the mechanical parts used have the best quality for safety. Consequently, the documentation of travel documents prevents international insecurity cases such as terrorism. Manufacturing with fuel efficiency is part of the operational procedures in most organizations.
Integrated carriers such as Qantas and Ansett design scheduled carriers and charters within a legal framework (Australian Government, 2018). This may have economically focused objectives but the government places high priority on safety standards. The establishment of air travel principles facilitates for the development of future laws for outcomes that address traffic, licensing, registration and standard quality. Recommendation and audits ensure that the practices improve for better practices. Cargo planes and courier services within the domestic airlines category may influence the development of the two-airline system. This may come about due to a major policy shift that facilitates for agreements in route sharing (International Air Services Commission, 2018). In this case, the shareholders operate under certain rates and scheduled timetables. Covered under then National Policy, this plan provides concrete guides for the competitive free market. Passenger planes face challenges of following airline rules. A conflict of interest arises in rules designed for safety and regulations (Whincop, et al., 2018). The management of airports is an international perspective that captures competition wars and national government systems.
Conclusion
Rules about responsible transport cargo, Inter-airline agreement, and airline management systems are wide. There are rules governing competition, standard rates and the management of space and price management. Effective rules provide laws that govern the airfreight management processes effectively. Failure to utilize these rules leads to controversies. Measures used to curb this include strategic business models. Airfreight services under the airline operations management feature strategic implementations. Stakeholders across this industry depend on these regulations to keep safety and healthy practices. These influence both organizations and people involved in the industry. Therefore, operations management in this industry is multidisciplinary and dynamic. As the industry grows and experiences changes from the free market, it exhibits changes.
Bibliography
Australian Associated Press, 2018. Flight centre fined $12.5m for price fixing after losing appeal. The Guardian, 4 April.
Australian Government, 2018. Aviation Policy & Regulation. [Online] Available at: https://infrastructure.gov.au/aviation/legislation/policy/index.aspx[Accessed 26 August 2018].
Civil Aviation Authority, 2017. Dangerous goods. [Online] Available at: https://www.casa.gov.au/safety-management/landing-page/dangerous-goods[Accessed 26 August 2018].
Department of Transport ( Western Australia), 2018. Air Services in Western Australia. [Online] Available at: https://www.transport.wa.gov.au/aviation/air-services-in-western-australia.asp
Federal Register of Legislation, 2018. Acts. [Online] Available at: https://www.legislation.gov.au/Search/aviation
Hutchenson, S., 1996. The development of a measure of organizational climate. Johannesburg: Unpublished Master Thesis .
ICAO, 2018. In Focus, ICAOs Strategic Objectives. [Online] Available at: https://www.icao.int/Pages/default.aspx[Accessed 2018].
International Air Services Commission, 2018. Current Cases. [Online] Available at: https://iasc.gov.au/
Koustelios, A. & Belias, D., 2014. Organizational culture and job satisfaction: A review. International Review of Management and Marketing, 4(2), pp. 132-149.
Mason, M., 2014. Virgin battle testing Qantas’ domestic strategy. Sydney Morning Herald, 21 May.
Stevenson, M. & Schofield, R., 2017. Australia needs stricter rules to curb air pollution, but theres a lot we could all do now. The Conversation.
Swin, B., 2015. Airline Operations Management: Australian Legal and Regulatory Requirements, s.l.: Airline Operations Management.
The Economist, 2015. Flights of Hypocrisy. The Economist, 25 April.
Tourism Australia, 2018. Tourism 2020. [Online] Available at: https://www.tourism.australia.com/en/about/our-organisation/our-performance-and-reporting/tourism-2020.html
Tourism Australia, 2013. 2020 Setting the foundation ( 2010-2014): Tourism Australia Journey 2010 to 2013, Australia: Tourism Australia.
Virgin Australia, 2013. Annual Report 2013, s.l.: s.n.
Virgin Australia, 2015. Sustainability report, s.l.: Virgin.
Webber, T., 2012. Airline capacity war is risky business. Syndey Morning Herald, 26 April.
Whincop, M. J., Keyes, M. & Posner, R. A., 2018. Policy and Pragmatism in the Conflict of Laws. s.l.:Routledge.
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