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Running head: MANAGEMENT
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MANAGEMENT
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Operations Management in Airline Industry

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Airline industry has a positive impact on the people’s way of living. It has now become a very essential service hard to picture how life would be without it. It has changed on the way people operate in the world of business because now time taken to travel long distances is very short. It is now possible to do business in some areas which were considered to be remote way back. It provides the necessary transportation network in the whole world therefore its acknowledged for the success of businesses and growth of the tourism industry (ATAG, 2005).

Aviation industry is a major source of employment and by paying taxes it contributes much to the economy. It has been experiencing a considerable growth in the last decades. Its approximately above seventy-fold as the time the first airliner flew (ATAG, 2005). That huge growth experienced is due to many factors. One of them is increase in disposable income which has led to improved living standards in the world.

The growth is also as a result of improved aviation laws and open- sky negotiations between different governments. It has led to discovery of new markets making travel affordable and easier. Increased demand due to high levels of confidence in air travel as a proved safe means of travel has also contributed to the enormous growth.

Due to increased competition, airfares have reduced therefore low cost in traveling. Globalization has also played major role as the distance traveled has increased since people are doing business everywhere due to stable political and social climate. These factors are expected to improve further thus increased no of traffic in air travel. It is now to the companies in the industry to utilize the advantage of the available opportunities and improve in the management of their work.

Most of the airlines are owned by the government but now there is an emerging trend of movement to commercial, independent public companies. This has led to increased number of commercial companies thus increased pressure on management in increased profits, reduction of cost and revenue increment.

The operators in this industry survive in a very competitive and dynamic environment. First this industry was created for the service of delivering mails. There has been massive evolution into very complicated operations of transport to passengers and cargo. All these improvements come with a very complex operating strategies and a lot of competition.

To attain a considerable growth, it is important for the airline companies to study the conditions prevailing in the market. This industry involves very high investment costs, operation in a geographically dispersed market and tough huddles imposed by the regulator. Therefore this has led to huge investment in operations techniques and information.

The industry has been divided into different sectors. They include operations management, revenue management, capacity planning and marketing. All these processes are aimed to one main goal of industry growth and profitability. In this case, i emphasize much in operations management.

Operations management is a very wide field which in it various activities are incorporated which enables input of an organization to be transformed into output. The operations manager has to make informed decisions to conform to the strategic plans of the company and within the limits of its budget. His decisions should also be able to attain a high competitive advantage.

The operational strategy involves the direction the company would like to take so as to attain its goals. The company has to be strategic fit to be able to approach the future. It should have a well integrated mission and its internal capabilities in consideration of the environment it is operating in.

In operations management, its main goal is to advance the yield level of the company by ensuring desirable efficiency levels. The operations manager is mandated to make critical decisions in areas of designing the product, its quality, processes, and human resources, management of the supply chain, inventory and maintenance of schedules.

The operations manager in making his decisions has a variety of solutions. But due to the high levels of competition, it is important to be creative and innovative in applying some strategies. It gives the company the company a competitive edge to deal with challenges over their opponents. It is therefore important to apply the two innovation models i.e. the adoption model and the diffusion model.

The adoption model highlights the organizations need to be able to adopt various forms of innovation from the surrounding environment without necessarily conducting research. It requires creativity and being able to think extensively outside the box. Being innovative is always a requirement to succeed in an environment with such complexity. In many cases such creativity may not be available in a business setup but still the company should be in a position to learn from its competitors and pick what in their opinion best to suit their business (Cushman, 1993).

With diffusion model, the company is the pioneer of the innovation which is spread to other companies. This method is the best since it is practical and is based mainly on originality and research. It gives a company the required proof of the reason the company has become a market leader. With all its admirable results it requires a lot of hard work, huge investments and perseverance (Dearden, 2006).

In order to deal with some of the inefficiencies experienced for proper operations management, it is important to see how the following issues are dealt with; emergencies and delays, serving customers, reservations handling, baggage handling, meals, maintenance and training of the crew.

Delays have become more frequent nowadays; they involve staying for long hours on the tarmac before the flight takes off. The reality is it is rare for a schedule to be implemented as planned. The schedules keep being interrupted because of breakdowns, breach of security procedures and delays by crew. Due to much complains by the customers and the failure by the airline companies to take responsibility, there are regulations which have been passed. These regulations require that passengers be served with snacks; there must be a working bathroom. Medical personnel must be available and a good plan for emergencies.

The airline companies have the responsibility to make sure the contract between you and them is honored. In case of cancelled flights they should meet the cost of accommodation and be able to rebook their customers on other flight in case of connection flights. After learning of flight delays, it should be posted on the web in order to be able to rebook the flight.

The work of safety in an airline lies with the flight attendants. They are supposed to ensure comfort to the passengers. In addition to that they are supposed to serve meals. The international safety regulation gives directions on the required number of attendants.

Airline reservation systems have evolved to computer reservation systems. This system is used for reservations. It contains records of the tickets, fare tariffs and airline schedules. Customers can as well make reservations using their mobile phones or in the internet. The computer reservation system interfaces with the global distribution system thus linking it with the major airlines to have a single system.

Baggage handling system is used for proper handling of baggage. It is a conveyer system used to move luggage from ticketing area to loading zone. It can also be used in moving baggage from the airplane. It is used to sort the baggage and taking it to where it is supposed to be.

The aircraft’s have to undergo periodic checks after some time. They follow a specific inspection program which is supposed to be authorized by the federal aviation administration (in the USA).

Crew must be properly trained. It is done through a system called cockpit resource management. It is a procedure used to make improvements in air safety. It is normally focused on leadership, problem solving, teamwork and communication. This was as a result of a research which noted out that most of accidents occurred due to human error.

Generally for an air line to succeed, many professionals have to be involved. The ticket department has to work tirelessly to match the flights for every customer. Security has to ensure the safety of the airline not to mention the pilots who spend many hours studying proper management of flights.

The operation managers must ensure that no incidents during flight process. They work properly to make sure there is co-ordination with other airlines. They have many assistants for helping the customers to ensure their satisfaction.

The manager’s role is to find solutions to some challenges which are unique and have not been experienced elsewhere. This involves issues of public relations which are the key part for the success of the whole business. All the issues have to be dealt with in time before they are noticed by the average traveler. It is important for departure and arrival time of flights to be updated in time. The air traffic controllers also need to assist in solving runway problems. This make the operations management be the point for the success and efficiency in the airline industry.

References

ATAG. (2005). ‘The economic and social benefits of air transport’. Air transport action group.

Hoyle,D. (2006) ‘Quality management essentials’ Butterworth-heinemann.

ICAO.(2006). ‘Economic contribution of civil aviation’ International civil aviation organization.

Krajewski, l & ritzman. (2006) ‘Operations management strategy and analysis’ Prentice hall.

Slack,N.,chambers, s.&Johnston, R.A.B. (2005) ‘Operations and process management’

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