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AIR TRANSPORT INDUSTRY

AIR TRANSPORT INDUSTRY. Katherine Hill. Rachael Buckingham. Michael Brogden. Presentation Structure. Evaluate the key characteristics of the air transportation industry incorporating customer needs, service concept and product development

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AIR TRANSPORT INDUSTRY

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  1. AIR TRANSPORT INDUSTRY Katherine Hill Rachael Buckingham Michael Brogden

  2. Presentation Structure • Evaluate the key characteristics of the air transportation industry incorporating customer needs, service concept and product development • To critically evaluate the range of skills and competencies required for successful management in the airline industry • To critically reflect on the impact of external factors on the airline industry and their operational implications

  3. Understanding Customer Needs • Diverse range of needs from different customer groups • Airline consumers have some of the highest expectations within service industries • Lewinson (1997) categorises service expectations in three levels: • 1. Essential 2. Expected 3. Optional • Lewinson (1997) cited in Kandampully (2001)

  4. Service Concept Definition “The service concept identifies the proposed nature of the business, the service in the mind that the organisation wishes to create. This helps the organisation to focus on the value that it can provide to customers” (Johnston & Clark, 2001:345)

  5. Service Concept of Airlines • The service concept provides guidance on: • Core product • Augmented product and; • Differentiation Methods • (Williams & Buswell,2002) • Full-service airlines may have different concepts for individual customer groups • Service concept must span numerous supporting functions in delivering the product

  6. Product Development within the airline industry • Certain service concepts necessitate innovation • Product innovation is essential in full-service airlines • Current Innovations within the industry are: • - Online/SMS/Office based desk Check-in • - Iris scanning at Immigration • - Chauffeur transportation & drive thru check-in • - A380/Sonic Cruiser • (www.britishairways.com, www.virgin-atlantic.com, www.finnair.com, www.airbus.com, www.boeing.com)

  7. Interdependency of service characteristics Customer Needs Product Development Service Concept

  8. Skills and Competencies for the Airline Industry • The nature of the service product • Service concept influences the scope and depth of skills required • Competence has been defined as: • “The skill, expertise and professionalism with which the service is executed...degree of product or service knowledge and the general ability to do a good job”. • (Johnston & Clark, 2001: 89)

  9. Skills and Competencies for the Airline Industry cont... • Core competencies: • Team Work • Problem Solving

  10. Baggage Cabin Crew Dispatch Check-in Reservations and Ticketing Security Boarding Agent Maintenance Immigration

  11. The Impact of External Factors • Impacts from both macro and micro environments • Macro Environment: • Air Traffic Control Problems • 09/11 • Economic Downturn • Political Unrest – Zimbabwe • Union Strikes e.g. Fire Fighters at airports

  12. The Impact of External Factors Cont... • Micro Environment: • FEGP – Fixed Electrical Ground Power • Health and Safety Issues • Crew Bus Service

  13. Conclusion Customer Needs Product Delivery Service Concept Skills Product Development Macro/Micro External Environment

  14. Bibliography Johnston, R. & Clark, G (2001) ‘Service Operations Management’, Pearson Education Ltd: Essex. Lewinson. D.M. (1997),cited in Kandampully, J. & Mok, C. & Sparks, B. (2001) Service quality Management in Hospitality, Tourism and Leisure, Haworth Press: New York. Williams, C. & Buswell, J. (2003) Proofs. Service Quality in Leisure and Tourism. CAB International British Airways [online] [cited 12th Dec 2002] Available from URL:http:www.britishairways.com.htm Virgin Atlantic [online] [cited 11th Dec 2002] Available from URL:http:www.virgin-atlantic.com.htm

  15. Bibliography • Finn Air [online] [cited 12th Dec 2002] Available from URL:http:www.finnair.com.htm • Airbus [online] [cited 14th Dec 2002] Available from URL:http:www.airbus.com.htm • Boeing [online] [cited 12th Dec 2002] Available from URL:http:www.boeing.com.htm

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