Safety Culture in High-Tech Systems

This assignment delves into the critical topic of safety culture within high-technology systems, with a particular focus on the aviation industry. It requires students to examine various research methodologies, both quantitative and qualitative, commonly used in this field. The assignment also necessitates a critical analysis of relevant case studies, such as Air France 447 and air traffic management errors, to understand how safety culture influences system performance and accident prevention.

Running head: DISSERTATION
Dissertation
Name of the Student
Name of the University
Author Note

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Abstract
The research study highlights the impact of the safety management system on the service quality.
There are three hypothesis selected for the research study that are safety management system has
impact on service quality of Etihad Airways, safety management system has impact on cost
structure of Etihad Airways and safety management system has impact on financial performance
of Etihad Airways. There are three research objectives like to evaluate the impact of safety
management system on service quality in Etihad Airways, to critically analyze the impact of
safety management system on the cost structure of Etihad Airways and to evaluate the impact of
safety management system on financial performance of Etihad Airways. The result shows that
there are positive impacts on the independent and dependent research variable. The sample size
considers here are 50 organization’s employee and 3 managers through probability and non-
probability sampling technique.

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Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty God.
After that, I want to thank to my supervisor ______________ who is my friend, philosopher and
guide. I also thank my parents for being supportive and accommodative for completing this
research. I want to thank my friends for giving me the moral support while conducting this
research.

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Table of Content
Table of Contents
CHAPTER 1 - INTRODUCTION.................................................................................................10
1.0 Introduction..........................................................................................................................10
1.1 Background of the research.................................................................................................10
1.2 Aim of the Research............................................................................................................14
1.3 Research Hypothesis............................................................................................................14
1.4 Research Objectives.............................................................................................................15
1.5 Research Question...............................................................................................................15
CHAPTER 2- LITERATURE REVIEW.......................................................................................16
2.0 Literature review......................................................................................................................16
2.1 Importance of the safety management.....................................................................................16
2.2 Importance of safety training...................................................................................................18
2.3 Involvement of cost in safety management.............................................................................19
2.5 Technology in safety management in aviation industry..........................................................21
2.6 Safety management kit in aviation industry............................................................................23
2.7 Involvement of the passengers in safety management............................................................24
2.8 Service personnel in service quality........................................................................................24
2.9 Conceptual Framework............................................................................................................26
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................27

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3.0 Research Methodology........................................................................................................27
3.1 Research Philosophy........................................................................................................28
3.2 Research Approach..........................................................................................................31
3.3 Data collection.................................................................................................................32
3.4 Data Analysis...................................................................................................................33
3.5 Sampling..........................................................................................................................34
3.6 Reliability and Validity....................................................................................................35
3.7 Ethical consideration.......................................................................................................35
CHAPTER 4- FINDINGS AND ANALYSIS...............................................................................37
4.0 Findings and analysis...........................................................................................................37
4.1 Quantitative Question......................................................................................................37
4.1.1 Demographics questions...............................................................................................37
4.1.2 Quantitative Question on safety management system......................................................38
4.1.3 Quantitative Question on service quality..........................................................................43
4.1.4 Quantitative Question on cost structure............................................................................46
4.1.5 Quantitative Question on financial performance..............................................................48
4.2 Qualitative Questions.......................................................................................................56
4.3 Airplane crash reports......................................................................................................59
CHAPTER 5 - CONCLUSION AND RECOMMENDATION....................................................61
5.0 Conclusion...........................................................................................................................61

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5.1 Recommendation.................................................................................................................62
Reflection.......................................................................................................................................65
References......................................................................................................................................67

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List of Figures
Figure 1: Research onion Model....................................................................................................24
Figure 2: Research philosophy......................................................................................................26
Figure 3: Research Approach........................................................................................................27

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Table of Tables
Table 1: Response on the age of the respondents..........................................................................37
Table 2: response on the year of association with the organization..............................................38
Table 3: Response on safety training and promotion being a measure of safety management
system............................................................................................................................................38
Table 4: Response on safety policies being a measure of safety management system.................40
Table 5: Response on safety management system kit being a measure of safety management
system............................................................................................................................................41
Table 6: Response on safety performance monitoring and measurement being a measure of
safety management system............................................................................................................42
Table 7: Response on updating the passengers with their flight details being a measure of service
quality............................................................................................................................................43
Table 8: Response on maintaining the operational dimensions and service personnel being a
measure of service quality.............................................................................................................45
Table 9: Response on incorporating high quality safety technology being a measure of cost
structure.........................................................................................................................................46
Table 10: Response on using eco-friendly fuel for the safety of environment being a measure of
cost structure..................................................................................................................................47
Table 11: Response on customer desire to travel more being a measure of effective financial
performance...................................................................................................................................49
Table 12: Response on installation of effective safety technology and training system being a
measure of effective financial performance..................................................................................50
Table 13: Regression analysis table for finding the relationship between safety management
system and service quality.............................................................................................................52

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Table 14: Regression analysis table for finding the relationship between safety management
system and cost structure of Etihad Airways.................................................................................54
Table 15: Regression analysis table for finding the relationship between safety management
system and financial performance of Etihad Airways...................................................................56
Table 16: Overall Research Findings............................................................................................61

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Table of Charts
Chart 1: Response on safety training and promotion being a measure of safety management
system............................................................................................................................................39
Chart 2: Response on safety policies being a measure of safety management system..................40
Chart 3: Response on safety management system kit being a measure of safety management
system............................................................................................................................................41
Chart 4: Response on safety performance monitoring and measurement being a measure of safety
management system.......................................................................................................................42
Chart 5: Response on updating the passengers with their flight details being a measure of service
quality............................................................................................................................................44
Chart 6: Response on maintaining the operational dimensions and service personnel being a
measure of service quality.............................................................................................................45
Chart 7: Response on incorporating high quality safety technology being a measure of cost
structure.........................................................................................................................................46
Chart 8: Response on using eco-friendly fuel for the safety of environment being a measure of
cost structure..................................................................................................................................48
Chart 9: Response on customer desire to travel more being a measure of effective financial
performance...................................................................................................................................49
Chart 10: Response on installation of effective safety technology and training system being a
measure of effective financial performance..................................................................................50

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Topic: Impact of safety management system on service quality – “A case study of Etihad
Airways”
CHAPTER 1 - INTRODUCTION
1.0 Introduction
This is a research, which will highlight the impact of safety management system on the
service quality in the aviation industry. Globalization has led to the change in the operational
environment of the organizations in the aviation industry. They have to continuously make use of
innovation to make changes to their business model so that they can maintain their long-term
sustainability in the market. Thus, the business of the organization has expanded to such level
that their operations are not limited to a single country in the market. Thus, safe operations is the
key to reducing the complexity of the organization processes and the aviation industry has been
successful in accomplishing this factor. However, due to globalization the variety and the
volume of the processes has increased exponentially. Thus, this study will aim to identify the
impact of safety management system on service quality in Etihad airways which is one of the
leading global commercial airlines.
1.1 Background of the research
The safety concerns of the organization have increased severely in the past few years due
t0 the globalization of the organizational processes. Moreover, there have been steep decrease in
the application of resources which has influenced the organizations to think about incorporating
safety management in the organizational processes (Maurino et al. 2017). Thus, it can be said
incorporation of the safety procedures in to the organizational processes is the best way of
handling the increase in the activity in the operational and reduction in the use of resources.

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Thus, safety management is essential for maintaining the relevance and viability of the
organizational procedures. Thus, the use of innovation into the business model of the
organization in the aviation industry can be put together in better way and be called as safety
management system.
The approach of managing quality in order to control the risk procedure in the
organization can be termed as safety management system. Thus, the safety management system
will facilitate in establishing sound culture for the management so that it can provide support to
the organizational framework. Thus, the core processes of safety for the organization is managed
by the safety management system and for the airlines it can also be an effective of
communicating with officers providing FAA certificate. Moreover, safety management system
provides the organization with the road map of managing organization’s safety management
processes in a detailed manner (Halford 2016). Safety management system not only helps the
organization to manage the legal obligations of the organization but also facilitates in gaining
benefits. The inclusion of the safety management system enables the organization incorporate
quality assurance and internal evaluation which will continuously improve the operational
procedures. Various researches suggest that the use of the safety management system has
assisted in making continuous improvement in the organizational operational procedures that has
benefited the organization at a financial level.
Various studies have stated that accidents are result of human error and changing people
is not a feasible solution for the organization. Thus, comes in to play the safety management
system which is used to identify the factors that are the cause of the accident. Therefore,
remedial actions can be taken so these circumstances can be avoided by the organization. Thus,
ensuring safety should be the top priority for the organizations in this industry. Safety

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management system will facilitate an organization to manage and mitigate the risks from time to
time, however, it does not mean that the risk will be reduced to zero. The safety management
system will prepare the management to identify and control the risk factors so that hazardous
situations can be avoided (Helmreich, Klinect and Wilhelm 2017). Thus, the organization can
save a huge of amount of expenses by preventing the occurrence of disastrous events. The safety
management system will act as a support system for the processes in the organization so that the
organization can improve their performance and move towards achieving the objectives of the
organization.
Thus, it is expected that the organization will have to develop their own set of standards
and benchmarks, which will minimize the risk factors, and the shortcomings of the
organizational processes. Moreover, the organization will be able to reduce the indirect and
direct costs incurred due to these events which would be impossible without the implementation
of the safety management system. Safety management system considers the risk involved in the
business as one single entity. This means that safety management system uses the holistic
approach for assessing the risk involved so that all the risk factors in the organization can be
addressed in a proper way (Bourrier 2017). When the safety issues are considered singularly,
then there are chances of missing important factors and interference in the prioritization of the
safety measures. This means that the organization is kore focused on personal safety rather than
being focused on safety of the organizational procedures. Through an effectively actualized
safety management system, associations will permit better consistence with directions and
different necessities that thusly limiting unfavorable aftereffect of an incident. Also, it will
enable workers and travelers to distinguish potential perils that may risk their wellbeing and
security. All the more essentially, safety management system will impact sly affect staff by

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making trusts, expanded confidence which leads into better execution. SMS will help an
association to forestall calamitous mishaps making it more secure and along these lines pulls in
more customers which thus profiting it fiscally (Deng, Wang and Liang 2017). The air transport
industry is loaded with potential dangers and perilous conditions which can't be altogether
disposed of; regardless of the way that operations must proceed. Actually, air transport
administrators and related administration businesses must produce a benefit to be practical.
Benefit or misfortune is the prompt pointer of the organization's accomplishment in meeting its
generation target. The prime target of an organization ought not be to absolutely expand the
benefit but rather additionally the evasion of misfortune. Subsequently, security is an essential
for an effective and beneficial avionics business. In this way, it is indispensable that safety
management system is executed so dangers and perils can be distinguished and alleviated before
transforming into cataclysmic and to acknowledge security traps existing inside the framework.
Etihad Airways have always prioritized the use of safety management system for
avoiding risks and hazardous events. However, there have been events in the past which shows
that Etihad could do more to improve the safety procedures in the organization. This has caused
them to lose ratings against their rivals and its position form the top 20 safest Airways have
dropped. There are lot of instances which show there has been sudden dip in the ratings in the
safety measure of the organization and it is losing its competitive advantage to other rival
organizations in the global market. Even though Etihad is considered as one of the safest airlines
in the world, it’s still not the leader in the market. Thus, this study will investigate the use of
safety management system in the organizational procedures in Etihad to identify the changes that
is required in the organizational policies. Safety ensures that the consumers will travel more in
that airline which will boost the revenue streams of the organization. Thus, the present impact of

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safety management system on the organizational procedures and service quality will be analyzed
to recommend changes that are required for maintaining their long-term sustainability in the
market and at the same time gaining competitive advantage.
Even though the organizations have become superior in terms of technology, the aviation
crash reports suggest that airplane crashes are still very much prevalent in the industry in most of
the countries. However, recent data shows even though the organization has focused on safety
management to improve the service quality Etihad has faced issues in improving the safety issues
in the organization. The most recent event states one of the Etihad Boeing 777-300 had to change
its course due to indication of cargo smoke. The flight was on its way to Sydney when the cabin
crew identified the issue and made an emergency landing in Adelaide. There are similar other
issues which the organization is facing in the past few years. The study will highlight the issues
to identify possible safety management is essential for improving the quality of service in Etihad.
1.2 Aim of the Research
The aim of the study is to analyze the impact of safety management system on service
quality of Etihad Airways. Various studies have not focused on the aspect that safety
management may have an impact on the quality of service provided by the organization. Thus,
the study will focus on service quality as it is one of the most important part of the hospitality
industry.
1.3 Research Hypothesis
H10- Safety management system has no impact on service quality of Etihad Airways
H11- Safety management system has impact on service quality of Etihad Airways

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H20- Safety management system has no impact on cost structure of Etihad Airways
H21- Safety management system has impact on cost structure of Etihad Airways
H30- Safety management system has no impact on financial performance of Etihad Airways
H31- Safety management system has impact on financial performance of Etihad Airways
1.4 Research Objectives
 To evaluate the impact of safety management system on service quality in Etihad
Airways
 To critically analyze the impact of safety management system on the cost structure of
Etihad Airways
 To evaluate the impact of safety management system on financial performance of Etihad
Airways
1.5 Research Question
 What is the impact of safety management system on service quality of Etihad Airways?
 What is the impact of safety management system on the cost structure of Etihad Airways?
 What is the impact of safety management system on financial performance of Etihad
Airways?

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CHAPTER 2- LITERATURE REVIEW
2.0 Literature review
2.1 Importance of the safety management
There are various concepts and theories being given by different authors regarding the
importance of the safety management in the business. This is due to the reason that, in the
current business scenario, safety management is having more important for the contemporary
business organizations. According to Chen and Chen (2012), initiation of the safety management
is important due to the reason that, service industry especially the airline industry is being
associated with the safety of the customers. Thus, the more will be the effectiveness of the safety
management of the service organizations, the more will be the initiation of the safety for their
customers. According to the authors, there are various instances where it was been seen that lack
of effective safety management lead to the degradation of the service quality for the business
organizations. Moreover, it is also being stated by the authors that, initiation of the safety
management also includes the safety of the employees. This is due to the reason that, employees
are one of the key stakeholders for the contemporary business organizations and it is important to
effectively maintain the safety and security of them.
The above discussed article has given an overview of the importance of the safety
management for the business organizations. Apart from this, there are various other theories
being stated by different authors, which further penetrated in this concept. One of the key and
prominent theories is being given by Halford (2016). According to him, initiation of the safety
management is important for the airliner industry due to the reason that, the basic competitive

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advantage for the airliners is being depended on the safety management being effectively
managed and implemented by them. According to the author, the more effective will be the
initiation of the safety management in the aviation industry, the more security can be initiated for
both the internal as well as external stakeholders. This is due to the reason that, initiation of the
safety management will help the airliners such as Etihad airways to reduce the chance or
probability of accidents and other unwarranted incidents including both the employees and the
customers. The author also stated that aviation industry is one of those industries, which is very
much prone to the chance of having accidents and involving huge casualties. Thus, initiation of
safety management is more important for them.
Another perspective being stated by Harris (2014), regarding the importance of
improving the safety in the aviation industry. According to him, one of the key elements for the
organizations being operating in this sector is their fleet of aircraft. Thus, it is of the utmost
importance for the airliners to enhance the safety of their aircraft. According to the author,
improving the safety of the aircraft will have positive impact on the safety management of the
whole organization. This is due to the reason that, majority of the accidents in the aviation
industry is being caused due to the accidents being involved by their aircrafts. Thus, the safety
management for the airliners should start from improving the safety of the aircraft. According to
the author, improving the safety of the aircraft will have holistic impact on the overall safety
management of the organization. This is due to the reason that, initiation of the safety in the
aircraft will involve the training purpose for the flight attendants along with the employees
involved in the ground work of the aircraft. Moreover, according to the author, improvement of
the safety in the aircraft will also involve the satisfaction level of the customers. This will have
holistic impact on the safety management of the Etihad.

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For instance, Qantas is known for their effective process of safety management. Qantas is
having the least rate of accidents in the world compared to their competitors. This is mainly due
to the reason that, Qantas is the airliner, which is known for their safety management process.
Thus, the impression among the potential customers is high and positive regarding the brand
equity of Qantas (Brauer 2016). On the other hand, Air Algerie is one of the airliners, which is
having negative impression among the customers due to their more occurrences of accidents. Air
Algerie is less concentrated towards the initiation of the safety management and it lead to the
poor brand equity of them.
2.2 Importance of safety training
Apart from the above discussion, there are some other authors who have discussed about
the chance and probability of having accidents in the aviation industry. These theories will also
be discussed due to the reason that, it will help to measure the risk being involved with this
industry and the extent to which it is important for the airliners to have effective safety
management in the organizations. Houston, Walton and Conway (2012), have given one of the
key insights of having accidents in the aviation industry. According to them majority of the
accidents in the aviation industry are being occurred during the training flight. This is due to the
reason that, during the time of training, trainers are less equipped and experienced in controlling
their aircraft and they are less trained in initiating the safety management in case of any
emergency. Thus, according to the author, it is important for the airliners to initiate the safety
management for the trainers. This will help them to reduce the chance and probability of
accidents for the trainers. Thus, the more effective will be safety management for the trainers, the
less will be the probability of accidents for them. This will in turn help the business organization
to have the higher level of motivation from their employees.

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Emirates are the leading airliner in terms of providing safety training to their employees. Thus,
they are more equipped in dealing with the safety issues (Helmreich, Klinect and Wilhelm 2017).
This also led to the fact that, Emirates is one of those airliners, which are having good track
record in terms of accidents. The rate of casualties for Air France is high compared to some of
their close competitors due to the lack of training of safety management for their employees
(Salmon, Walker and Stanton 2016).
2.3 Involvement of cost in safety management
One of the key challenges that have to be faced by the Etihad is the cost being involved in
the Accidents of the aircrafts. This is due to the reason that, different resources are being lost by
the airliners in case of any accidents. According to Sobieralski (2013), accidents in the aviation
industry not only limited to the damage of the aircraft and loss of lives but also involves the loss
of the resources. According to the author, minor incidents such as mistakes being done by the
employees and improper checking of the belongings of the passengers are also being included in
the accidents of Etihad. Thus, according to the author, all of these accidents involve costs for the
companies. Thus, it is being recommended by the author that, airliners should initiate safety
management in their organizations in order to reduce the rate of accidents, which will in turn
help to reduce the cost being involved. Thus, the more effective and efficient will be the safety
management in the organization, the less will be the cost involved for them due to unwarranted
incidents.
Small airliners such as Royal Nepal airliners are having less capital to implement the safety
management in their organization. Thus, they also face more frequent cases of crashes and high
number of casualties (Kostov, Henkel and Andonov 2014). On the other hand, airliners such as

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Emirates are having huge capital and in accordance to that, they offer safety management
services.
2.4 Safety management monitoring and measurement
According to some authors, safety management is important for only the aviation
industry but also for the other contemporary business sectors. This is due to the reason that,
contemporary business sectors being involved in more challenging scenarios and cater to more
risky affairs. However, aviation industry is having more importance of the safety management
due to the reason that, aviation industry is involving the most risk compared to majority of the
contemporary business sectors. According to Grote (2012), safety management is having prime
importance in the aviation industry and the Etihad should follow some key steps in order to
implement an effective safety management policy in the organization. The first step is the
identification of the kind of safety to be managed in the organization. According to the author,
this step is important due to the reason that, associated risk is different in different sectors and
the organizations should have safety management policy according to their business
environment.
The next step is the determination of the approach to be initiated in dealing with the risks
in the organization. According to the author, this step is important due to the reason that, a
singular and universal approach should be maintained and initiated in the organization in order to
deal with the identified risk. Thus, the approach should be effective and efficient. The last step is
the regulations of the safety policy in the organization. According to the author, this step
involves the determination of the regulations, which will be followed and covered in the safety
management policy of the particular organization. This will help the internal stakeholders to

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adhere with the policy and work accordingly. The author also stated that, following these three
steps and effectively implementing those in the organization will help them to have a
contingency plan in case of any identified risk.
2.5 Technology in safety management in aviation industry
In the contemporary business environment, technology plays an important role in meeting
the safety needs of the business organizations. As being stated by Maurino, Reason, Johnston
and Lee (2017), human factors are one of the key factors in maintaining and implementing the
safety management policy in the aviation organization. However, on the other hand, technology
should also be given concentration in order to reduce the probability of the safety issues in the
business operation along with enhancing the effectiveness of the human resources in dealing
with these safety issues. The authors also stated that, initiation of updated technologies in the
safety management of the Etihad should also be effectively maintained in order to prevent the
malfunctioning of the technologies. According to the authors, in the current business scenario,
human factors should not be given the whole responsibility of initiating the safety management
in the organization. This is due to the reason that, current business state of affairs has more
diversified and challenging tasks for the human resources, which increase the probability of
errors and mistakes. Thus, it will increase the risk of safety breach in the organization. Due to
this reason, the authors have stated that, technology should also be used alongside with the
human resources in the organizations.
The internal stakeholders should be trained in handling the technologies in order to
enhance the safety in the organization. The more training will be given to the employees
regarding the safety technologies, the more they will be equipped in dealing with the safety

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issues in the organization. However, according to the authors, apart from initiation of the
technologies in the organization, maintenance of the technologies is also important. This is due
to the reason that, technologies are having the probability of malfunctioning and thus, they
should be well maintained in order to prevent any mishaps. Thus, according to the authors, the
more will be the understanding and correlation between the technologies and the human factors,
the more effective will be the safety management in the organization.
The above discussion is being done regarding the importance of safety management
systems and practices in the aviation industry. Now the following sections will discuss about the
areas, which should be given more concentration in enhancing the safety management in the
organization. According to Helmreich and Merritt (2017), one of the key areas is the crew
resource management. According to the authors, crew is the most important human factor in the
aviation industry. This is due to the reason that, crew are the one who are responsible for the
safety and welfare of the passengers in the aircraft. Moreover, they are also responsible to deal
with any unwarranted incidents in air. Thus, according to the authors, crew should be given
proper training in order to equip them to deal with the safety issues effectively. The more trained
they will be in dealing with the safety issues; the more will be the reduction in the probability of
the human errors. Thus, according to the authors, crew should be given proper and effective
training in order to equip them to handle the uncertainty.
Initiation of technologies involves cost and airliners such as Southwest airlines have the
access to the latest technologies in the safety management system (Mo Kwon, Bae and Blum
2013). This is the reason behind the fewer casualties of the accidents being occurred. Airliners
such as JetBlue are budget carriers and thus they do not possess the latest technologies as some

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of their competitors due to the lack of capital (David Mc 2013). This is reason behind their high
rate of casualties.
2.6 Safety management kit in aviation industry
Apart from the training for the crew in the aircraft, there are other areas also where the
safety management should be initiated. According to Mearns, Kirwan, Reader, Jackson, Kennedy
and Gordon (2013), one of the key areas in the aviation industry for the safety management is the
air traffic system. This area is being identified due to the reason that, in the current aviation
scenario, more number of airliners is being introduced in the market, which is increasing the
congestion in the air traffic. Thus, it is important that the air traffic should be effectively
maintained in order to reduce the chance of any unwarranted incidents. According to the authors,
there are various incidents being emerged in the past that, where accidents were being occurred
due to the errors of the air traffic systems. Therefore, it is important to enhance the effectiveness
of the air traffic system. The authors also stated that, with the providence of training to the staff
in the air traffic control along with initiation of updated and reliable technologies will help to
reduce the probability of the errors in the air traffic systems.
Large airports such as Changi airport is the having the latest air traffic system for the air
management (Plos and Nemec 2012). Thus, it is being reported that, Changi airport is having
much fewer rate of mishaps compared to other airports. On the other hand, small airports such as
in Nepal and Bhutan are having higher risk of mishaps due to the less effectiveness of their air
traffic system (Regmi 2015).

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2.7 Involvement of the passengers in safety management
Safety management in the aviation industry always has more concentration towards
training and equipping the employees and other internal stakeholders. However, on the other
hand, managing the safety of the passengers along with train those in dealing with the safety
issues are also important. According to Kapur, Parand, Soukup, Reader and Sevdalis (2015),
passengers in the airliners should also be communicated and given advice regarding the
responsibilities of them in dealing with the safety issues. This is due to the reason that, if the
passengers are not being aware about the safety norms and regulations in dealing with the safety
issues, then it will be difficult for the crew and other staffs of the airliners to enhance the safety.
Thus, according to the authors, the passengers and other external stakeholders should also be
involved in safety management systems in the aviation sectors.
Virgin airlines involve effectively their customers in their safety management process. It
helps them in having holistic impact on their operation along with enhancement of the customer
engagement. On the other hand, Druk air of Bhutan is having less involvement and engagement
of their customers in the safety management system (Zangmo, Liampreecha and Chemsripong
2014). Thus, their chance of casualties is also high.
2.8 Service personnel in service quality
Other authors have also come up with different recommended steps in order to reduce the
safety issues in the aviation industry. One of the most effective recommendations being given by
Ricci and Brumsted (2012), regarding the safety in the aviation sector. According to them, crew
resource management is one of the reliable processes of enhancing the safety of the aviation.
This is due to the reason that, in other business sector, human resource management is important

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and being initiated in order to engage and motivate the employees in their organization.
Moreover, for the contemporary business organizations, human resource management also
includes providence of training for their employees. Thus, according to the authors, in the case of
the aviation sector, crew resource management will help to improve the compatibility of the
internal stakeholders with the newer and latest safety technologies being used. Thus, the more
effective will be the training of the crew regarding the safety of the aircraft, the more effective
will be the initiation of the safety management. Moreover, in this article, the authors have also
stated that, with the initiation of the safety management in the aviation sector, the employees or
the crew will be more effective and efficient to deal with unwarranted incidents. It will also help
the airliners to update their existing safety management process more frequently. This is due to
the reason that, the more training will be provided to the internal stakeholders in the aviation
industry, the less will be the resistance from the employees. The employees will more be open
towards the initiation of the latest technologies in the organizations. The more trained will be the
employees in the aviation sector, the more effectively they will deal with the safety issues of the
passengers. Thus, it can be concluded that, one of the key considerations for the implementation
of the safety management in the aviation industry is the providence of the training of the
employees and other associated internal stakeholders. Initiation of the crew resource
management will help to have a holistic and effective impact of the safety management in the
aviation sector.
Qantas is known for their effective crew management system and this lead to the fact
that, Qantas is having the most trained crew in place (Rankin et al. 2013). They help in managing
the situation in case of any accidents. On the other hand, Royal Nepal airline is having least
trained crew in place.

26DISSERTATION
2.9 Conceptual Framework
Conceptual framework
Safety training and
promotion
Safety management
system Safety policies
Safety management kit
Monitoring and
Measurement
Service Quality
Passengers
updating
Operational Dimension
and service personnel
High quality safety
Eco friendly fuel
Cost Budgeting
Frequency of travel
Effective Safety
Technology
Installation
Financial
performance

27DISSERTATION
CHAPTER 3- RESEARCH METHODOLOGY
3.0 Research Methodology
The various designs, approaches and designs will be highlighted in this chapter of the
research. Selection of the research methodology is very important and will have a lot of
significance on the research. Even though the selection of the methodology of research is
important, implementation and execution of the research will have major influence on the study.
Thus, the justifications for choosing each of the methods and techniques have been provided in
detail. Thus, these factors are essential for ahci9oe4ving the desired goals and objectives of the
research. Moreover, the limitations and advantages of using of each of the methods have been
discussed in detail in the study. According to Taylor, Bogdan and DeVault (2015) there are
fixed set of assumptions, which has been incorporated in to the framework of the research
methodology. The aim and objective of the study can be fulfilled with the research methodology
and so it is the most crucial part of the study. Therefore, it is essential to develop the research
methodology in a way that the accuracy and precision of the study is high. This will enable the
study to reproduce similar results for the studies that are of similar type and nature.

28DISSERTATION
Figure 1: Research onion Model
(Source: Taylor, Bogdan and DeVault 2015)
3.1 Research Philosophy
Development, nature and source will be the essential component of the philosophy of
research. However, it is always assumed that development of knowledge is profound and intense
but there are mainly four types of research philosophies that are uses in business and academic
research. Realism, post positivism, interpretivism and positivism are the research philosophies
that are generally used in this kind of research (Flick 2015). Interpretivism deals with human
interest and it is done by understanding the different element in research. Instruments, language
and shared meaning are the components of reality and social construction is achieved based on
this reality components. According to this philosophy, the different components of different

29DISSERTATION
research approaches are clubbed together which will consist of hermeneutics, constructivism
and phenomenology (Bryman 2015). Realism is the philosophy, which is reliant on the concept
that reality is not dependent on the human mind and scientific method and approaches will be
used for generation of knowledge. There are two types of approaches in realism, one is direct
realism and other is critical realism (Alvesson and Sköldberg 2017). Critical realism has
presented the opinion that real world cannot be portrayed effectively with personal sense due to
the deceptiveness of senses and images. On the contrary, the real world is portrayed by usage of
the personal sense of the human beings. Post positivism is a philosophy of research, which will
reject all the principles and doctrines established by positivism. The basic statement made by
this philosophy of research is that there is no distinction between the day-to-day life approaches
and the scientific way of approaches (Cohen, Manion and Morrison 2013). There is only minute
difference in degree between these approaches; otherwise, the processes are almost same.
Positivism is the philosophy of research, which can be stated as denunciation of metaphysics. In
this philosophy, the description and identification of the experiences is the prime objective of the
study. Thus, the hidden truths and facts in the study will be revealed with the assistance of the
positivism philosophy (Creswell 2013). Moreover, this philosophy of research will improve the
overall scope of the study. In this current study, Positivism is the most appropriate philosophy of
research and it will be used for gaining relevant findings from the study.

30DISSERTATION
Figure 2: Research philosophy
Source: (Flick 2015)
Justification for selecting positivism
In this present study, extraction of hidden truths and facts will be done so positivism is
the philosophy of research that has been selected. The observational scope of the study will be
improved with this study and will facilitate in conducting descriptive study. Thus, this study will
enable inclusion of hypothesis and hypothesis testing will be used for validation of the existing
theories. Thus, the use of positivism as the philosophy of research is mostly relevant due to the
above-mentioned factors.

31DISSERTATION
3.2 Research Approach
The identification of difference between the inductive and deductive approach can be
done by using hypothesis testing and thus, hypothesis testing will have greater significance in the
study (Sekaran and Bougie 2016). The assumptions and the existing theories in the research can
be validated by taking assistance from the deductive approach. On the other hand, the inductive
approach is used for formulation of new generalizations and theories. The implementation of the
research question to form new theories is the basis of the inductive research whereas deductive
approach will be used to reject the hypothesis that has been created to validat6e the theories that
has been mentioned in the literature review of this current study. As this study is concerned with
the validation of the existing theories, deductive approach w3ill be the most suitable approach
for the study.
Figure 3: Research Approach
Source: (Sekaran and Bougie 2016)

32DISSERTATION
Justification for selecting the deductive approach
In this present study, hypothesis has been created to check the significance of the
dependent variable on the independent variable so deductive approach is the ideal approach for
implementing hypothesis testing. Scientific approach will be included in this study to analyze the
variable so deductive approach is used. Thus, deductive approach will be used to validate the
existing theories in the study so it has been accepted and inductive approach has been rejected.
3.3 Data collection
In this current study, the data collection method that has been used for acquiring of data
is primary data collection. The qualitative analysis of data will consist of open ended questions
which will be asked to the mangers in Etihad Airways to identify the perspective about the
research topic. The qualitative analysis will not include any mathematical calculations and the
patterns in the answered provided by the managers will be used for providing a different
perspective and dimension to the study as they have in-depth knowledge about the research
subject (Mertens 2014). The quantitative analysis comprises of data collection through surveys
and questionnaires. The questionnaires will be close ended and the respondents of this part of the
analysis will consist of the employees that are in the lower level of hierarchy in the organization.
Various statistical tools will be used in the quantitative analysis of data, which will consist of
regression analysis, hypothesis testing and descriptive statistics.
In this current study, quantitative and qualitative analysis will be used to analyze the gain
the findings in the study. Thus, this study will use mixed method for the analysis of the data as it
consists of both qualitative and quantitative analysis of the day (Punch 2013). When only one
method is used in the analysis and finding then it can be considered to be mono method (Fowler

33DISSERTATION
Jr 2013). However, when multiple methods of similar types are used in the study then it can be
considered to multi method (Brannen 2017). The use of multiple quantitative methods can be
defined as multi method quantitative multi and when multiple qualitative methods are used
then it is known as multi method qualitative. Therefore, the use of multiple qualitative and
quantitative methods can be defined multi method complex (McNabb 2015). However, in this
current study, multi method complex is not required as it consist of only two variables. As
positivism has been selected as the philosophy of research, mixed method is sufficient to validate
the existing theories and evaluate the significance between both the variables.
3.4 Data Analysis
The patterns in the answered provide by the respondents will be analyzed form the
qualitative analysis of data. The answers will consist of hidden facts and implications that will be
used to provide a different dimension to the study. Moreover, the qualitative analysis will
provide the perspective of the management of the organization, which is very relevant for the
completed analysis of the study. Thus, this will enable the study to link the objective to the
findings of the qualitative analysis of the data (Best and Kahn 2016). The quantitative analysis
of the data will consist of the collection of primary data through questionnaires from the various
employees in the organization. The answers to each of the questions will be analyzed and linked
to the objectives that has been set to identify the significance of the findings. The analytical
tools will be used for calculating the mean, median, mode, regression and hypothesis testing.
The data that has been collected will be plotted in to charts and graphs. Thus, the graphs and
charts will be analyzed to interpret the findings of the study (Panneerselvam 2014). Regression
will identify the significant relation among the independent and the dependent variable in the
study. However, the regression equation that is formed will not be clearly defining the extent of

34DISSERTATION
relationship between both the variables. Correlation will be used to identify whether there is
positive or negative relationship among the variables in the study. Hypothesis resting will be
used to identify whether there is significant difference in the means of both the variables. Thus,
the significant impact of the dependent variable will be analyzed in hypothesis testing.
3.5 Sampling
The selection of the population is done with the assistance from the method known as
sampling. The actual population sample is too large so sampling is used to select small sample,
which represents the overall population sample in the study. There are two types of sampling
method that are used in the academic and bhu8siness research papers, one is the probabilistic
sampling and the other is the non probabilistic sampling. The selection of random respondents
from the population is the method used in probabilistic sampling (Levy and Lemeshow 2013).
Thus, the overall population will have the equal amount of opportunity of being selected. The
probabilistic sampling methods can be further divide in to factors such as systematic sampling,
simple random sampling and stratified random sampling. Simple random, sampling is a
method where the sample population is randomly selected form the overall population and is one
of the simple and effective form of sampling that can be used (Martínez-Mesa et al. 2016).
Stratified random sampling is a method with complexity where the overall population is divided
in groups that are non-overlapping. These non-overlapping groups are used to select population
simple by using simple random sampling. In systematic random sampling an interval is decided,
for example, if k is the selected interval, the kth variable from the population sample ranging from
1to n will be selected at that interval (Wilson 2016).
Randomized selection form the overall population sample is not used in non-probabilistic
sampling. In most occasions, non-probabilistic sample is ineffective in selecting the appropriate

35DISSERTATION
sample for the study. Thus, it can be said that accuracy of probabilistic sampling is more than
that of non-probabilistic sampling (Etikan, Musa and Alkassim 2016). However, snowball
method is one of the non-probabilistic sampling methods, which can be used to identify hidden
population in studies where the availability of respondents in the study is less. However, in this
current study, simple random sampling is sued for selecting of the population sample. The
number of respondents that have been selected for the quantitative analysis of the data is 50 that
consist of the lower level employees in Etihad Airways and 3 respondents in the qualitative
analysis of the data which will constitute the higher level managers in the organization named
Etihad Airways.
3.6 Reliability and Validity
The ability of the instruments to draw same conclusion from similar research topic is
known as the reliability of the study. According to Silverman (2016), the higher the reliability in
the study, the higher will be the positive outcome. While developing the findings of the study if
all the requirements of the research methodology are fulfilled is known as validity. As stated by
Noble and Smith (2015), data validity is one of the most significant component of business or
academic research. Validity can also be defined as suitable collection of data, interpretation and
measurement of the survey and questionnaire. However, in this study, the validity and reliability
has been maintained to its fullest.
3.7 Ethical consideration
In academic and business research paper, maintaining the ethical ground is very much
essential. Thus, the privacy of the research can be maintained by keeping the confidentiality of
the data that has been collected. The data has been sued in this journal has not been sued in other
journals. Moreover, none of the respondents are forced to take part in the survey and all of them

36DISSERTATION
have taken part in the survey of their own accord. Thus, Data Protection Act has been followed
and interest and privacy of the respondents are maintained (Cacciattolo 2015).

37DISSERTATION
CHAPTER 4- FINDINGS AND ANALYSIS
4.0 Findings and analysis
4.1 Quantitative Question
4.1.1 Demographics questions
Q1. What is your age?
Options No of respondents Total respondents
20- 25 years 15 50
26- 35 Years 8 50
36- 45 Years 14 50
45- 55 Years 9 50
More than 55 Years 4 50
Table 1: Response on the age of the respondents
Findings and analysis
The above table shows that among 50 research respondents, 15 respondents belong to 20-
25 years; while, 8 and 14 respondents are from 26-35 years and 36-45 years group respectively.
Moreover, 9 respondents are from 45- 55 Years age group; whereas, remaining 4 research
respondents are more than 55 years age.
Q2. For how long you have been associated with the organization
Options No of respondents Total respondents
Less than 1 year 14 50
1.1- 3 Years 12 50
3.1- 4 Years 8 50

38DISSERTATION
4.1- 5 Years 5 50
More than 5 Years 11 50
Table 2: response on the year of association with the organization
Findings and Analysis
The above table shows illustrates that 14 and 12 respondents belong to less than a year
and up to 1 to 3 years respectively. There are 8 respondents, who belong to 3.1- 4 years group.
Moreover, 5 and 11 respondents are from 4.1- 5 years and More than 5 years respectively.
4.1.2 Quantitative Question on safety management system
Q3. Do you agree that safety training and promotion is an essential foundation of safety
management system in Aviation industry?
Options No of respondents Total respondents
Strongly agree 19 50
Agree 16 50
Neutral 8 50
Disagree 4 50
Strongly disagree 3 50
Table 3: Response on safety training and promotion being a measure of safety management
system

39DISSERTATION
Chart 1: Response on safety training and promotion being a measure of safety management
system
Findings
The research outcomes shows that 19 and 16 research respondents strongly agreed and
agreed on the fact that safety training and promotion is a measure of safety management system.
On the other hand, 7 respondents disagree with the given fact and the remaining 8 respondents
give a neutral perception. This means that in order to implement an effective safety management
system in aviation industry, the management authority has to focus on the safety training and
promotion among the employees.
Q4. How far do you agree that formulating safety policies is also an effective measure of
safety management system?
Options No of respondents Total respondents
Strongly agree 17 50
Agree 26 50
Neutral 4 50

40DISSERTATION
Disagree 1 50
Strongly disagree 2 50
Table 4: Response on safety policies being a measure of safety management system
Chart 2: Response on safety policies being a measure of safety management system
Findings
The research outcome for this section illustrates that majority of 43 research respondents
out of 50 agrees on the fact that formulating safety policies is also an effective measure of safety
management system. However, 3 respondents give a negative perception and rest of the 4
research respondents gives a neutral review regarding the same research question. Thus, it can be
said that safety policies are important for developing an efficient safety management system in
the aviation industry.
Q5. Do you agree that safety management system kit for aviation defines the safety
management system?
Options No of respondents Total respondents

41DISSERTATION
Strongly agree 22 50
Agree 21 50
Neutral 5 50
Disagree 1 50
Strongly disagree 1 50
Table 5: Response on safety management system kit being a measure of safety management
system
Chart 3: Response on safety management system kit being a measure of safety management
system
Findings
The research outcome shows that 22 and 21 respondents strongly agrees and agrees on
the fact that safety management system kit defines the safety management system of a aviation
industry. However, 2 respondents gave a negative perception towards the same research
questions and the remaining 5 research respondents give a neutral review. Thus, it can be

42DISSERTATION
considered that since majority of the respondents agrees, in order to implement safety
management system in the aviation industry, safety management system kit is important to
incorporate.
Q6. How far do you agree that safety performance monitoring and measurement is also an
important safety management system measure?
Options No of respondents Total respondents
Strongly agree 22 50
Agree 21 50
Neutral 3 50
Disagree 1 50
Strongly disagree 3 50
Table 6: Response on safety performance monitoring and measurement being a measure of
safety management system
Chart 4: Response on safety performance monitoring and measurement being a measure of
safety management system

43DISSERTATION
Findings
The research result in this question shows that 43 out of 50 research respondents agrees
with the fact that safety performance monitoring and measurement is also an important safety
management system measure. On the other hand, 4 respondents stated that safety performance
monitoring and measurement is not so importance in designing the safety management system in
aviation industry. Moreover, the remaining 3 respondents stated no response and remain neutral.
Thus, it can be conclude that safety system needs to be monitored at regular interval of time so
that the required change can be implemented before the adversity takes place.
4.1.3 Quantitative Question on service quality
Q7. Do you agree that updating the passengers with their flight details can be considered as
effective service quality?
Options No of respondents Total respondents
Strongly agree 21 50
Agree 19 50
Neutral 7 50
Disagree 2 50
Strongly disagree 1 50
Table 7: Response on updating the passengers with their flight details being a measure of
service quality

44DISSERTATION
Chart 5: Response on updating the passengers with their flight details being a measure of
service quality
Findings
The outcome come after the research shows that 40 respondents out of 50 agrees on the
fact that updating the passengers with their flight details can be considered as effective service
quality. However, 3 respondents stated that provision of only the flight details through different
modes cannot ensure the safety management and quality of their service of that aviation industry.
Lastly, the remaining 7 respondents remain neutral and give no perception regarding the research
question. Thus, if majority review is considered, it can be said that giving flight details and
regular updates on the details to the customer can ensure the effective of the quality of the
aviation services.
Q8. How far do you agree that maintaining the operational dimensions and service personnel
are effective attributes of service quality?
Options No of respondents Total respondents
Strongly agree 19 50

45DISSERTATION
Agree 21 50
Neutral 5 50
Disagree 3 50
Strongly disagree 2 50
Table 8: Response on maintaining the operational dimensions and service personnel being a
measure of service quality
Chart 6: Response on maintaining the operational dimensions and service personnel being a
measure of service quality
Findings
The research outcomes shows that in this case also, 40 out of 50 research respondents
agrees with the fact that maintaining the operational dimensions and service personnel are
effective attributes of service quality. 5 research respondents disagree with the fact; while, the
remaining 5 respondents presented a neutral perception regarding the research question.

46DISSERTATION
4.1.4 Quantitative Question on cost structure
Q9. Do you agree that incorporating high quality safety technology in aviation industry results
in enhancement in cost budgeting?
Options No of respondents Total respondents
Strongly agree 24 50
Agree 18 50
Neutral 5 50
Disagree 1 50
Strongly disagree 2 50
Table 9: Response on incorporating high quality safety technology being a measure of cost
structure
Chart 7: Response on incorporating high quality safety technology being a measure of cost
structure
Findings

47DISSERTATION
There are 42 research respondents, who have agreed on the fact that incorporating high
quality safety technology in aviation industry results in enhancement in cost budgeting. On the
other hand, 3 respondents disagreed on the same fact and the remaining 5 respondents give a
neutral perception on the given fact. Thus, it can be concluded that on implementing high quality
safety measures in the aviation industry higher financial resources are required. Thus, there is an
impact of the cost budgeting if safety management system is applied on the present
organizational structure.
Q10. How far do you agree that using eco-friendly fuel for the safety of environment need
more cost in the budget?
Options No of respondents Total respondents
Strongly agree 18 50
Agree 24 50
Neutral 4 50
Disagree 2 50
Strongly disagree 2 50
Table 10: Response on using eco-friendly fuel for the safety of environment being a measure
of cost structure

48DISSERTATION
Chart 8: Response on using eco-friendly fuel for the safety of environment being a measure of
cost structure
Findings
The research results shows that majority of 42 out of 50 research respondents agreed on
the fact that using eco-friendly fuel for the safety of environment being a measure of cost
structure. However, there are 4 research respondents, who have disagreed on the given fact and
the remaining 4 respondents presents a neutral perception. Thus, it can be noticed that the more
quality products is used for operating the organizational functions, the more cost is required for
performing those functions.
4.1.5 Quantitative Question on financial performance
Q11. Do you agree that customer will want to travel more in an airline service that are more
concerned with their safety management?
Options No of respondents Total respondents
Strongly agree 20 50
Agree 23 50

49DISSERTATION
Neutral 5 50
Disagree 0 50
Strongly disagree 2 50
Table 11: Response on customer desire to travel more being a measure of effective financial
performance
Chart 9: Response on customer desire to travel more being a measure of effective financial
performance
Findings
The research results shows that 43 respondents agreed with the given fact that customer
will want to travel more in an airline service that are more concerned with their safety
management. However, there are total 2 respondents, who have strongly disagree with the fact
that customer want to travel more if an organization is more focused in safety management
systems. Additionally, remaining 5 respondents does not give any perception in this research
question.

50DISSERTATION
Q12. How far do you agree that installation of effective safety technology and training system
boosts staffs performances and high profitability?
Options No of respondents Total respondents
Strongly agree 19 50
Agree 26 50
Neutral 3 50
Disagree 2 50
Strongly disagree 0 50
Table 12: Response on installation of effective safety technology and training system being a
measure of effective financial performance
Chart 10: Response on installation of effective safety technology and training system being a
measure of effective financial performance
Findings
The research results shows that majority of 45 research respondents agreed on the given
fact that installation of effective safety technology and training system boosts staffs

51DISSERTATION
performances and high profitability. On the other hand, 2 respondents gave a negative perception
concerning the same research question and the remaining 5 respondent said that there are not
impact of measuring the safety system and giving training to the staffs regarding the safety
management system on their performance.
Analysis
Objective 1: To evaluate the impact of safety management system on service quality in Etihad
Airways
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.500727
R Square 0.250728
Adjusted
R Square
0.235118
Standard
Error
0.493647
Observatio
ns
50
ANOVA
df SS MS F Significan
ce F
Regressio
n
1 3.9141
41
3.9141
41
16.062
18
0.000213
Residual 48 11.696 0.2436

52DISSERTATION
97 87
Total 49 15.611
11
Coefficie
nts
Standa
rd
Error
t Stat P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 0.868687 0.2506
14
3.4662
3
0.0011
23
0.364793 1.3725
81
0.3647
93
1.3725
81
X Variable
1
0.505051 0.1260
18
4.0077
64
0.0002
13
0.251674 0.7584
27
0.2516
74
0.7584
27
Table 13: Regression analysis table for finding the relationship between safety management
system and service quality
The above table shows the regression analysis between the two research variable that are
safety management system and service quality. The alternative hypothesis shows that safety
management system has impact on service quality of Etihad Airways. The regression analysis is
done in this case so that the relationship between these two research variable can be shown. The
significance value (F) in this analysis shown as 0.000213 that is lesser than 0.05. This indicates
that the two research variables have connection in them and there is an impact on the dependent
variable due to the independent variable. Thus, the hull hypothesis got rejected that is safety
management system has no impact on service quality of Etihad Airways. Moreover, in addition
to that, the R square value in this case found to be 0.250728 that represents that the dependent
variable 25% explains the effectiveness of the independent variable. Thus, it can be said that
updating the passengers with their airlines details regarding the flight details and used safety

53DISSERTATION
technology along with maintaining the operational dimensions and service defines the service
quality of the safety management system in an aviation industry.
Objective 2: To critically analyze the impact of safety management system on the cost structure
of Etihad Airways
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.303878
R Square 0.092342
Adjusted
R Square
0.073432
Standard
Error
0.543322
Observatio
ns
50
ANOVA
df SS MS F Significan
ce F
Regressio
n
1 1.4415
54
1.4415
54
4.8833
29
0.03192
Residual 48 14.169
56
0.2951
99
Total 49 15.611
11

54DISSERTATION
Coefficie
nts
Standa
rd
Error
t Stat P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 1.355684 0.2293
99
5.9097
19
3.44E-
07
0.894446 1.8169
22
0.8944
46
1.8169
22
X Variable
1
0.258189 0.1168
37
2.2098
26
0.0319
2
0.023273 0.4931
05
0.0232
73
0.4931
05
Table 14: Regression analysis table for finding the relationship between safety management
system and cost structure of Etihad Airways
This table shows that numerical analysis to find the relationship between the two research
variable that is safety management system and cost structure. The alternate hypothesis in this
case is that safety management system has impact on cost structure of Etihad Airways. The
regression value for the significance (F) is 0.03192 that is less than 0.05 that rejected the null
hypothesis. The null hypothesis in this case is safety management system has no impact on cost
structure of Etihad Airways. In this case, the value of the R square is 0.092342 that means the
independent variable of the research explains only 9% of the effectiveness of the independent
variable. Thus, it can be said that incorporating high quality safety technology and using eco-
friendly fuel for the safety of environment need more financial resources than the expected
budget formulated excluding these factors.
Objective 3: To evaluate the impact of safety management system on financial performance of
Etihad Airways
SUMMARY OUTPUT
Regression Statistics

55DISSERTATION
Multiple R 0.399263
R Square 0.159411
Adjusted
R Square
0.141899
Standard
Error
0.522863
Observatio
ns
50
ANOVA
df SS MS F Significan
ce F
Regressio
n
1 2.4885
83
2.4885
83
9.1028
19
0.004075
Residual 48 13.122
53
0.2733
86
Total 49 15.611
11
Coefficie
nts
Standa
rd
Error
t Stat P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept 1.139116 0.2416
85
4.7132
27
2.13E-
05
0.653176 1.6250
56
0.6531
76
1.6250
56
X Variable 0.387831 0.1285 3.0170 0.0040 0.129374 0.6462 0.1293 0.6462

56DISSERTATION
1 45 88 75 88 74 88
Table 15: Regression analysis table for finding the relationship between safety management
system and financial performance of Etihad Airways
This analysis table shows the relationship between the two research variable that are
safety management system and financial performance. The alternative hypothesis in this case is
safety management system has impact on financial performance of Etihad Airways. After the
data analysis it is found that the significance (F) value of the research is 0.004075 that is lower
than the value 0.05. Hence the null hypothesis that is “safety management system has no impact
on financial performance of Etihad Airways” got rejected. Moreover, the value of the R square is
also 0.159411 which means that the dependent research variable can justify approximate 16% of
the dependent variable. Thus, it can be stated that installation of effective safety technology and
training and measuring the desire of the customers for travelling multiple times explains the
financial performance of the organization.
4.2 Qualitative Questions
Q1. How important is the safety management system for an aviation industry?
First Manager: In order to manage the safety risks, maintenance of the generation of the
petroleum, chemical and electricity, we are using safety management system. However, I
personally consider more that are policies that defines the safety concern, the planning for not
only the organization but also for the planet earth and management the customer satisfaction
level throughout safety systems.
Second Manager: The aviation industry is one of the developed industries in recent times and is
full of risks as the main functions are performed in the sky. The management of the normal
operations seems to be difficult when the aviation management considers. Thus, all the

57DISSERTATION
operations need to be managed skillfully and the safety management system help use to identify
the possible risk and then take relevant steps to overcome the problem. We have also consider
the safety management system for promoting positive corporate safety culture and also plan
training programs for ou staffs so that their knowledge regarding the safety can also be enhanced.
Third Manager: The importance of the safety management system is to closely evaluate the
safety planning all in terms of flight journey, maintenance of the details, handling of the luggage
and the safety of the pilot system. The importance of the safety management system can also be
described through safety assurance and identification of the areas of safety improvement.
Q2. How this system is beneficial for your organization?
First Manager: The safety management system helps an aviation industry to identify the major
difference when the safety management system is not used and when it is implemented. Thus,
the close monitoring on the accidents can be attained through this system. Another benefit of
implementing the safety management system is that there are less accidents and loss of life and
injuries. All the baggage and inventory can also be protected after implementing the SMS
feature.
Second Manager: The benefit that is gained through the implementation of the safety
management system is high customer satisfaction. The other benefit that I consider is more
efficient interface with regulatory authorities that cannot be obtained through manual functions.
The technology is incorporated so that the desired safety measures can be attained accurately and
within lesser time.
Third Manager: There are several business benefits with the incorporation of safety
management system. An organization can reach a safe and stable customer support system. An
organization can also avoid extra investment in insurance premiums if the safety management

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programs are of high quality. The staffs become more aware of the knowledge of the aviation
security and safety. The safe and secured organizational operations also ensure customer
satisfaction and high customer retention rate. Thus, it is the fact that with effective safety
management system, an organization can obtain improved quality of work, improved employee
morale, improved competitiveness in the marketplace, improved productivity, reduced
probability of accidents, reduced medical and workers' compensation costs, reduced employee
turnover and improved safety and health in the workplace.
Q3. What are the future measures that you have planned to attain more profitability?
First Manager: As responsible management personnel, I think that “pilot professionalism”
should be the key attribute of the future safety concern of the aviation industry. There are many
cases of plane crashes and accidents of one airline industry. This can be reduced if more strict
regulation can be formulated. These regulations can be formulated by Performance Based
Regulation (PBR) based on the major issues of the aircrafts. These regulations should be
formulated for the safety of the people who are travelling, staffs and as well as for the
environment. Thus, developing power efficient and energy efficient technology that emits less
carbon emission should also be the major future concern.
Second Manager: Increasing the automation of the aviation functions should be the primary
focus of the safety management system. However, there are both positive and negative sides of
the automation in safety management system. The bad point that the organization will gain is
more reliability that enhances the likelihood of dependency on the machines. This results in
adverse results in case the machines get faulty. Thus, a risk mitigation plan for manual
operations should also be planned. In this case, staff training both in theoretical terms and
practical aspects should be considered. Another problem that might get un-noticed is the

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inefficiency of the less proficient pilots. Thus, the management need to evaluate their
competencies at an regular interval of time by taking assessments. We are also planning to
include maintenance of standards, practices and procedures along with governing circulars so
that the adversity can be reduced. We have also planned a partnership with ICAO so that they
can audit through their “Universal Safety Oversight Audit Programme” for measuring the
efficiency of the developed safety management system.
Third Manager: Reducing the number of sky accidents and plane crashes is the major concern in
bringing the high secured management of the aviation industry. The management authorities
should emphasizes on improving the air traffic environment, restoring confidence in air transport
safety, development of efficient and safe air traffic systems and expansion of air transport
capacity. The six pillar that should be mainly focused are- air traffic environment improvement,
aircraft operational safety system, ensuring aircraft safety, development and implementation of
rescue and emergency services systems, victim support promotion and R&D and study activities
enhancements.
4.3 Airplane crash reports
Even though the organizations have become superior in terms of technology, the aviation
crash reports suggest that airplane crashes are still very much prevalent in the industry in most of
the countries. However, recent data shows even though the organization has focused on safety
management to improve the service quality Etihad has faced issues in improving the safety issues
in the organization. The most recent event states one of the Etihad Boeing 777-300 had to change
its course due to indication of cargo smoke. The flight was on its way to Sydney when the cabin
crew identified the issue and made an emergency landing in Adelaide. Similar incident happened
with Etihad Boeing 777-200 freighter, which was on its way to Amsterdam from Abu Dhabi that

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has to make emergency landing in Kuwait as the captain became incapacitated and died. In the
year of 2007, an Airbus A340-600 crashed during ground testing. This crash happened due to
human error where lack of correction and detection by the technicians was the main issue. The
procedures were not followed the way they should have been. Similarly, the number of tires in
the same model burst out during rolling out. This shows that every year the organization is facing
safety issues due to various, which should be addressed. The frequency of incidents in the year of
2017 have increased significantly which shows that even though the organization is focusing on
safety some issues are still not addressed by the management.
Tabular Representation of the Overall Research Outcome
Research Variables Positive Impact on Safety
Management System
Negative Impact on Safety
Management System
Effective Service Quality
Updating passengers with their
flight details

Maintaining the operational
dimensions and service
personnel

Cost Structure Due To Safety Management
Incorporating high quality safety
technology

Using eco-friendly fuel 
Financial Performance After Implementing Safety Management

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Desire to travel more through
airline

Installation of effective safety
technology and training system
impacts staffs performances

Table 16: Overall Research Findings
(Source: Created by Author)
Explanation
The research outcome illustrated that the two research variable that are safety
management system and service quality has a relation with each other. The research outcome
also portrays that there is a positive impact of safety management system on service quality and
hence it can be said that updating the passengers with their airlines details regarding the flight
details and used safety technology along with maintaining the operational dimensions and
service defines the service quality of the safety management system in an aviation industry.
The second dependent research variable is cost structure and according to the research
outcome it is found that there is a positive impact of safety management system on the cost
structure for the considered airline services. Thus, it can be portrayed that incorporating high
quality safety technology and using eco-friendly fuel for the safety of environment need more
financial resources than the expected budget formulated. However, this increased budget ensures
the safety management.
Lastly, the third dependent research variable is financial performance and the two factors
that is selected is desire of the customer to travel more through airline and successful installation

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of effective safety technology and training system impacts staffs performances in the concerned
organization. the research outcome shows that installation of effective safety technology and
training and measuring the desire of the customers for travelling multiple times explains the
financial performance of the organization. The customer desires to travel more as they know the
organization has a good market reputation due to their safety measures.

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CHAPTER 5 - CONCLUSION AND RECOMMENDATION
5.0 Conclusion
Research objective 1: To evaluate the impact of the safety management in the service
quality of the aviation industry.
From the above discussion, it can be concluded that, initiation of the safety management
will have favorable impact on the service quality of the aviation industry. This is due to the
reason that, it is being discussed in this report that, service quality is one of the key
considerations in the aviation industry in order to enhance the level of satisfaction and loyalty of
the customers. Moreover, regression analysis has also being done in this report in order to
determine the relationship between the two variables. The two variables being identified are the
safety management and service quality. The regression analysis shows that, the significance
value between the two variables is less than 0.05 and thus, it can be concluded that, there is a
relationship between the safety management and service quality. Thus, the more effective will be
the safety management, the more favorable will be the service quality in the aviation industry.
Research objective 2: To evaluate the impact of the safety management on the cost
structure of the airliners
The relationship between the safety management and cost structure of the airliners is also
positive due to the reason that, the regression analysis being done between these two variables is
also less than 0.05. Thus, it can be concluded that, there is a relationship between the safety
management and the cost structure of the aviation organization. This is also due to the reasons
that, initiation of the safety management will involve extra cost for the Etihad. As discussed

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earlier in the literature review, initiation of the safety management will include providence of the
training to the employees along with involving latest technologies in providing the service to the
customers. Thus, this will cause involvement of extra cost for the organizations.
Research objective 3: To evaluate the impact of the safety management on the financial
performance of the airliners
The last research objective was to identify the relationship between the initiations of the
safety management and the financial performance of the Etihad. In this case also, regression
analysis is being done and it shows that the relationship between the two variables is less than
0.05. Thus, there is a relationship between safety management and the financial performance of
the Etihad. This is due to the reason that, the more will be the initiation of the safety management
of the aviation organization, the more will be the cost for the organizations. Thus, involvement of
more cost will have direct impact on the financial performance of the Etihad. However, the
impact of the initiation of the safety management may be positive or negative depending on the
change in the service quality of the airliner. This is due to the reason that, though safety
management will involve extra cost for the airliner, but if the service quality can get increased
then the inflow of the customer as well as the generation of the revenue will also get increased.
Thus, the financial performance of the organization will also get increased.
5.1 Recommendation
 It is being recommended that, Etihad should outsource their activities related to the safety
management in order to reduce the cost involved and responsibilities. Moreover, the
effectiveness of the safety management will also be more if the initiative is being
outsourced to a third party vendor. This is due to the reason that, the third party vendor to

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be outsourced will have more expertise in the particular field than Etihad. In addition, the
third party vendor will take all the responsibilities in enhancing the safety in the
operation. The cost for Etihad will also be less due to the reason that, the outsourced
organization will accomplish the job in most cost effective manner. Thus, in order to
reduce the negative impact of safety management on the performance of the organization,
Etihad should outsource it to the third party organization.
 Another recommended step will be to train the internal stakeholders regarding the safety
management in the organization. As discussed in the literature review, training for the
employees and the crew members is important due to the reason that, it will equip them
in dealing with the safety issues. However, in the case of Etihad, the training program
should be implemented in two phased manner. The first phase will train the employees
regarding the importance of the safety management in the organization. This is important
due to the reason that, prior to the implementation of the safety management, it is
important for the employees to be aware about its importance. The second phase will be
about the operation of the safety technologies. Thus, this process will help to have
equipped and trained employees in place in initiating the effective process of safety
management in the organization.
 It is also being recommended that, Etihad should follow the industry standard in regard to
the initiation of the safety management. This is due to the reason that, in the current
business scenario, technology is being more frequently developed and with having the
presence of numerous players in the aviation industry, up gradation of the technology will
be initiated rapidly. Thus, it is important for Etihad to follow the industry standard in
order to determine their position in terms of the initiation of the safety management.

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Moreover, it will also help them to develop their safety standard according to the industry
and offering their customers more updated service compared to the industry.
 It is also being recommended that, external stakeholders including the customers should
be involved in the safety management. This is due to the reason that, customers are the
one who will have the benefits of the safety management of Etihad. Thus, the more they
will be involved, the more effective will be the determination of the customer
requirement in respect to the safety management. Moreover, involvement of the end
customers in the initiation of the safety management will also enable them to experience
the benefits. This will in turn enhance their satisfaction and loyalty towards the brand,
which lead to the increase in the revenue generation of Etihad.

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Reflection
The purpose of a reflective paper is to communicate the brief of the research from the
researcher’s point of view. It helps the readers to understand the concept of the research it
intends to communicate and identify the flow. I selected the aviation industry for analysing the
safety management as it has to consider the direct safety of a large number of stakeholders
utilising the services. The first hurdle in conducting a research is the formulation of research
objectives as the topic provides a wide range of opportunity. Addressing all the aspects in a
single research looses it flow and the validity of the research. Hence, I decided to focus on
quality of the service being provided to the passengers in comparison with the cost structure for
providing the level of safety to the customers. This further provided me the opportunity to
identify the scopes to modify the quality maintaining the cost structure.
The next difficulty that I faced conducting the research was the selection of research
methodology required. There was ample scope for conducting the research basing on primary
data collection, which made me to conduct the research accordingly. Both the qualitative and
quantitative data was necessary in the research. This made me to conduct open ended interview
with the manager for collecting the qualitative data, whereas, I collected quantitative data using
questionnaires. It is impractical to involve every individual involved in Etihad, for which I
selected the random sampling method. It provided me the opportunity to formulate idea for the
overall organisation.
Literature review on the other hand offered me a level of challenge as the information
collected from the secondary literature had to be authentic and reliable. I was unaware of the
selection process of the existing literatures, which caused me trouble in finding the appropriate

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literatures required for this section. I had to maintain the reliability and validity of the data
provided in the literature review. However, the course taught me the criterions required to
maintain the validity and reliability of the data. However, I found it difficult to come by such
literatures. My guide further assisted me in the course of literature search. I was asked to
consider the literatures available in the university library as well as the contents available in the
Google scholar. This eased the process of literature required for conducting the research. I chose
to use the peer reviewed journal articles and annual reports for this section that helped me
holding the reliability and validity of the paper. The existing literature reveals that the safety and
security are of primary concern of the organisation. The measurements taken by the company are
by training and equipping the employees working both off-board and on-board for ensuring the
safety of the passengers travelling in their aircrafts. The responsibilities of the customers are also
communicated for increasing the safety of the aircraft. The research revealed safety management,
service quality; cost structure and financial performance are directly related to each other and
influence one another.
The lessons I received from the research will help me in conducting research in my future
life both in academic and non academic field.

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