Challenges Between Airlines: Students Research Paper
First of all, in the scopes of this research paper it is important to outline the background of the alliances between airlines on international markets. Scholars consider that such alliances at the current role have occupied the dominant positions of the airline industries collaboration.
It is important to put an emphasis on the fact that the majority of eth passengers travelling by the international airlines require the service ‘from anywhere to anywhere’. At the same time, it is important to put an emphasis on the fact that no airline is able to provide such type of service individually due to the set of the obvious economical and legislative factors existence.
That is why it is obvious that in order to meet the entire set of the clients’ demand, the airline have to integrate their activity and to collaborate. While taking in account the fact of the interlining mechanism, managed by IATA, existence, the option of the itinerary on two or more airlines arrangement has existed for durable timeframe.
At the same time, initial form of such cooperation development, which may be also considered as the arms-length cooperation, hasn’t offered the set of options, directed for the possible integration and efficiencies. The anachronistic restrictions on foreign ownership prohibit the cross border mergers, which are typical for other industries. But it is important to put an emphasis on the historical fact that the since the early 1990s, the importance of the effective network cooperation has caused the of alliance relationships rapid development and expansion, which may be also considered as the mergers’ close substitute.
Another reason of establishing the collaborative relations between the airlines was the fact that such approach has been the only possible one for providing the end customers with the entire set of desired transportation services.
It is important to put an emphasis on the fact that the complete integration of international airline services has been prevented by the prohibitions on full cross-border mergers between airlines. At the same time, the substantial cooperation and integration, has been allowed by the alliance relationships. The governments have granted antitrust immunity (ATI). It is possible to separate the consideration of immunity for an alliance into two directions: for non-stop travelling process in the directions between the alliance partners’ hub cities, where all the airlines- participants are allowed to take the overlapping services trip and the second direction is the collaboration, directed for providing the integrated services on markets between the smaller cities, which requires an interline trip, crossing the alliance partners’ networks.
In the scopes of this research paper it is important to rely to the fact that the collaboration and joint ventures establishing between the airlines is regulated by the international air law or eth aviation law. It is the branch of law, which is mainly directed got the air travelling and flight concerns and is mainly associated with the business and legal concerns. Such aspect as the airlines business and its regulation also fall under the aviation law.
There are two international organizations, which regulate the collaboration process between the airlines companies: International Civil Aviation Organization (ICAO)and the International air transport association (IATA). The core purpose of the International Civil Aviation Organization is constant support and assistance in the air transportation industry sustainable growth. There are 191 member states of this organisation and that is why it serves as the global forum for them the states and the key industry organizations are integrated in order to support the entire set of civil aviation activity aspects and for developing the policies and standards, resolving the critical issues’ strategic directions on, coordination of the global initiatives, monitoring, analysis and reporting and pursuing the targeted assistance and the building objectives’ capacity.
It is obvious that in order to make the system work without the deviations from the initial strategy ad t to make it technically perfect. The need for the information system development between the different business entities- airline, is required, in addition, the dispatch system is to be coordinated and the competent- developed cargo management system between the business partners should be established.
The Role of the Dispatch System of the Alliance Partners Between Airlines
The next issue to be discussed in the scopes of this paper is the role of the dispatch system of the alliance partners between airlines. It is possible to state a fact that the core purpose of the flight dispatch system and its application is not only flight operations support but also the provision of the company with the current information about economic and logistical aspects of flight scheduling. The automatized computer systems use the software, which gives an opportunity to generate effective flight schedules, based on calculation of several logistical variables and current financial and economical data.
The dispatch of Alliance partners between airlines is the System Operations Control Centers, where the flights of Alliance partners between airlines are world-wide monitored and controlled. It is done with the using of flight planning, satellite communication systems, and tracking computers. That allows to reach the highest accuracy of the flights and to plan a motion path from the departure to the destination point in the most optimal and accurate way. The dispatch is also called the ‘Mission control’ of the airlines and is compared with its nervous system.
It is important to put an emphasis on the fact that the decisions and coordination are made both in local and global scope, and in addition, the dispatch is not the ‘traffic controller’, but it is the ‘traffic cop’, because the mission of controlling belongs to the Aviation Authority.
The requirements to the Airline Dispatchers are high, and they are to hold a valid Aviation Authority Aircraft Dispatcher certificate and to have equally knowledge as the Captain in aviation. The collaboration of two departments,– the Dispatch Centre and the Aviation Authority Administration, provides and guarantees the highest level of protection for the airlines clients and makes the flight to be maximally safe.
The dispatchers are given the following permissions: to cross all organizational lines, taking in consideration the thunderstorms probability, visibility level, runway conditions, icing, checking the aircraft mechanical status, including air traffic control delays, navaid status, etc.
It is hard to reappraise the role of the Dispatch Centers and their contribution to the safety of clients or the cargo. It is evident that, without the introduction of such Centers activities into everyday work of alliance partners between airlines, it is not possible to ensure the safety and security of the flights.
The availability of such a system completes the work of the Aviation Authorityand provides the double controlling system and double protection of lives and health of the customers.
While taking in account the fact that there is a large amount of the operations required to provide the successful air transport services, there is a need of its regulation, administration, and management. Also, a constant optimization of the process is needed in order to increase the efficiency, to improve the set of provided services, and to look for new business opportunities and, finally, to create, develop, support a positive image of the company. The positive image is needed for saving the existing clients and attracting the new target audience.
Nowadays, in the world of digital technologies, the operational systems of administration are based on the newly-developed technologies and are operated with the help of computer devices in order to minimize the risk. Also, the digital technologies allow simplifying access to the services provided by alliance partners between airlines. The reservation systems are optimized and all aspects of the airline’s operations are supported.
The airline administration of Alliance partners between airlines is provided in the Airline Administration Centres (AACs), and their responsibilities comprise financial and administrative services provision. They have got wide spectrum of services, including resource planning and control, revenue, management and pricing, marketing and sales solutions, administration and finance, passenger handling, flight planning and dispatch, controller pilot data link communication –technology aircraft communications addressing and reporting system, air cargo handling, and other related operations.
Importance of the Computer Applications Using for Airlines
The core importance of the Computer Applications using is simplifying the data processing and providing access to the common databases in the different branches of the company.
There are several goals, pursued by providing of the system of the Alliance partners between airlines computer control. The most important of them are the following: simplifying the procedure of client service; creating the common database for different air transport services providers, increasing the safety level; decreasing the employees’ number, and reducing the costs for services.
The potential application for these computer programs increases every day, and now, everyone is provided with the information about every airline and about the cost of their services, schedules, etc. Also, clients are provided with an opportunity to book and purchase the tickets via the internet, to see all available variants, and to choose the only best suitable services for each particular case.
While taking in account the rapid development of the computer techniques and its importance in all areas of the human activities, it is logically to assume that their role increases every day, and in some years it will be hard to imagine how it was possible to carry out the set of issues without the newest development of humanity-computer technologies.
It is considered that the last decade has changed the airline world revolutionary. All the processes related with this field are currently integrated with the computer systems, beginning with the development of the planes models and calculating all its parameters, their manufacturing, and including the process of exploitation and maintenance.
All the deviations in systems can be monitored with the computer, and several of them can be even corrected. It is impotent to put an emphasis on the fast and rapid development of new technologies and on reducing their costs and sizes while updating them and improving new ones that need fewer materials and save more energy.
Safety as the Main Problem of Airlines
The main problem of today’s airlines is the safety, because even having perfectly-developed systems of monitoring, controlling and supporting an aircraft during the flight, there are still numerous plane crashes. That is why the main task of today’s engineering minds and skills is the development of automotive systems of human protecting in the extraordinary situations. These systems are to detect the possibility of danger and to prevent it.
It is obvious that the development of such a program will initiate the development of social responsible programs, and in the case, if Alliance partners between airlines were the first to implement such a program, it would get extra profits and attract new clients.
Even if it is impossible to get the faithful representation of the future science and technical development, there are some directions (weak points) that are to be improved and corrected. The question of the safety is to be on the 1st place for every company, providing this type of service – to protect its clients and employees.
The net issue to be outlined in the scopes o this paper is the importance of competent- developed cargo management system in alliance partners between airlines. In the scopes of this study, it is important to draw attention to the fact that the competent-developed cargo management system is the key success factor for the alliance partners between airlines. The scientific and technological advance has allowed the computerization of this process organization and has given the following opportunities: to reduce time consuming in the scheduling process planning, to monitor qualitative delays and planed changes in schedules, to make accurate databases, to provide managers with accurate information, and to help them to make right and promptly decisions.
The top management of this business entity has required to update the cargo management system and to automatize this process with the help of up-to-date computer software. The main aim is the client’s satisfaction and delivery of cargo in time and in good condition.
The key factors of profitability for the system are possibility of accurately forecasting of revenue, based on the competent analysis of the existing market and competitors, the booking process optimization; promptly identifying of existing problems, and finding alternative sources of revenue.
That is why it is possible to offer the program of price segmentation as the first part of the service-recovery strategy plan in order to maximize revenue for cargo shipments. The following issues should be taken in account: uncertain capacities, three-dimensional capacity, cargo customers, rate / density mix, and routing options.
Its practical implementation will bring the following results: accurate planning, as well as organization and execution of the rational and not expensive delivery (shipment) of goods or cargos from the place of their manufacturing to the places of their destination. In addition, the opportunities for the following issues improvement would be created by the practical implementation of the recovery strategy program: comfortable passenger transporting for average price, the total control over all transporting and other related operations, which occur while the transporting process, applying the telecommunication tools (computer science and other informational technologies) for the cargo travel line, providing the freight owners with the relevant information.
That is why it is logical that the main aim of the cargo management is creating transporting systems, transporting corridors and net transporting sequence.
There are the following requirements and sequence of the management system development:
- Providing with the tecnological unity of transporting and stocking process;
- Common planning of the transporting, stocking and manifacurer processes;
- Choosing the type of a transport facility;
- Choosing the sort of a transport facility;
- Developing the rational shipment path;
- Providing the technical and technological conjugation of all participants of the transporting process, coordination of their economic interests, and also the integrated planning systems developpment.
If all above listed requirements are followed, the effective cago management system will be obtained and the highest economucal interests would be satisfied without additional time and monetary costs.
The second issue to be implemented into the service-recovery strategy plan is the educational programs for the airlines improvement. With the development of the newest computer technologies, several new opportunities for reduction of the time needed to master some educational program have been introduced. The practice of wide implementing the computer programs into the educational process is more than 15 years old, and it is being constantly developed and improved. There is an opportunity to purchase and to download the software and to master the theoretical part of education with the help of the distance learning programs.
In the Airline training programs, the role of special computer programs and Internet sources can be represented by the following issues:
- Reducing the time needed for the information search;
- Opportunity to purchase or to download the special software for home education;
- Opportunity to use the newest “Full Flight” Simulators, developed on the basis of computer programs;
- Using the newest computer technologies while the real flight.
Opportunity to choose and to compare the existing training programs via the Internet sources
The International Air Transport Association (IATA) offers a wide spectrum of educational courses, including cabin crew training, call centre training, customer service programs, several management programs, marketing programs, related to this field, and stressing on specific of airports and airlines work.
While taking in account the possibility of getting the qualification not only of pilot, but also existence of Customer Service & Flight Attendant Training Program and Aircraft Dispatcher Training, the necessity of computer programs using during the studying and training process increases in several times, because these two directions are deeply interrelated with the computer and even particularly performed on it. The average knowledge of PC user is not enough in this field, because there are several complicated programs with specific abbreviation and specification, which are to be studied and drilled before practical application (Elliott).
Also, several organizational moments for alliance partners between airlines can be solved with the help of PC programs: preliminary examination, current examination on the theoretical part, providing each student with an opportunity to practice as much as needed and, finally, that reduces the time needed for the organizational moments and excludes the possibility to underestimate or to give somebody an overrated mark (human factor) during the examination. That is why the quality of education increases with the new technologies implementing into the educational process.