Understanding the Dynamic Aviation Environment

This report explores the concept of dynamic aviation environment and its impact on aviation safety. It analyzes the performance of Cathay Pacific Airways and discusses its recovery from the Hong Kong pro-democracy protest. The report also critically analyzes the term democracy and discusses the current trends in the aviation sector.

Dynamic Aviation
Environment

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK..........................................................................................................................................................3
Brief justification of selected aviation organisation.................................................................................3
Critically analysis the term democracy....................................................................................................3
Discuss the nature of current trends in the aviation sector.......................................................................4
Analyzing the performance of selected company....................................................................................5
Various effective factors of selected company which help in recovery from Hong Kong pro-domestic
protest......................................................................................................................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
Main objective of this report is to understand the concept of dynamic aviation
environment. The word aviation is used for an aircraft or for an aeroplane. It includes various
activities and industries which are related to flights. Various activities means air traffic control.
Military aircraft and air travel are the biggest users of aviation. It simply means transporting
people and goods from one place to another with the help of aircraft. Aviation is established in a
dynamic environment which means the environment is flexible which require more and more
innovation (Berdonosov and et. al. 2018). Environmental factors have a great impact on the
aviation safety. One of the most important factor which impact on aviation safety is weather.
Aviation is an important part of a national economy which helps in movement of people and
goods and assist in growth of economy. For this report Cathay Pacific is taking into
consideration. Cathay Pacific Airways Ltd. (CPA) is widely known as Cathay Pacific which is a
flag carrier of Hong Kong. Its headquarter is in Cathay city, Hong Kong international Airport. It
deals in movement of passengers and cargo services in around 190 destinations and above 60
countries and more than 34,200 numbers of employees are successfully working with it. This
report includes a critical analysis on democracy and various nature of current trends in the
aviation sector. Other than this it defines the performance of selected company and various
effective factors which helps in recovery from Hong Kong pro-democracy protest.
MAIN BODY
TASK
Brief justification of selected aviation organisation
For this report Cathay Pacific airway ltd is taking into consideration which is worldwide
popular as Cathay Pacific. It was founded in 1946 by an Australian Sydney H. de Kantzow and
American Roy C Farrell. Its major shareholders are Swire Pacific with almost 45% of its total
stake and other one is Air Chins with almost 29% of stake. Its headquarters is Hong Kong and its
main focus cities are Taipei-Taoyuan. It has three main subsidiaries that is Air Hong Kong, HK
Express and Asia Miles (Cathay Pacific Airway ltd, 2021). Its annual revenue is almost 111.060
billion and around 34,200 numbers of workers are successfully working with it. In terms of sales
it is measured as the fifth largest airline and in terms of market capitalization it is fourteenth
largest organisation. In 2010 it set another level of high profit around 14.05 billion. The growth
of selected company is influenced by two important situations which are Hong Kong protest and
COVIDE-19. Selected company will reduce its international flights at the time of COVIDE-19
pandemic which will negatively impact the flights demands. While at the time of protest many
employees of selected company are participated in this protest at Hong Kong international
airport. Beijing government was the major shareholder of selected company with give order to
company to suspend all those employees who are participate in the protest. Both the protest will
cause biggest loss for company (Buccieri, Javalgi and Cavusgil, 2020).

Critically analysis the term democracy
According to Robert, 2021 democracy refer to a term which means rule by the people. It
refers to a form of an government in which the people of a country have the authority to select
their governing legislators. The decisions related to who is considered of part of people and how
total authorities are shared among the people will change over time and its process take different
time in different countries. This is because different countries have their own rules and
regulations. While cornerstones includes various rights such as freedom of assembly, freedom to
speech, equality, membership, voting, minority rights and so on. There are mainly two types of
democracy which are direct and representative. Direct democracy means people of a country are
choose a representation who have right to decide on legislation, such as in the parliamentary or
in presidential democracy. While representative democracy is also known as indirect democracy.
It is a form of democracy which is founded on the principles of selected persons who represent a
group of people and it is fully opposite to direct democracy (Agashua, 2016).
According to Espen, Carl, and Havard, 2020 the word is directly originated from the French
democratic, but in real its origin is Greek. It was the mixture of two words which are demos and
kratos. Demos means people while kratos means rules. So democracy means rule of the people.
It refers to a form of government in which the primary importance is given to people
participation. People have a right to participate directly or indirectly. Democracy is a form of
government of a country in which people of that country have equal rights and opportunities and
it is based on the individual merits and there is no place of hereditary privilege found in
democracy. In it opportunities are distributed for reducing the level of inequality. It refers to a
system of government which doesn’t make any discrimination on the bases of caste, religion,
gender and so on.
According to Council of Europe, 2021 democracy refers to a system of government
which legitimacy on the basis of participation of the people. According to it there are various
types of democracy such as direct and indirect democracy, constitutional and non-constitutional
democracy, federal and unitary democracy, presidential and parliamentary democracy. It is quite
more than a set of government while it defines the values, attitudes and practices which is
different among different cultures and among different countries.
Discuss the nature of current trends in the aviation sector
Trends helps an organisation in innovating new things and highly satisfying the needs
and requirements of customers. In the aviation sector because of increase in competition its
trends are also changes at a rapid rate and if an organisation wants to achieve higher growth and
profitability they are require to effectively analysis these trends on time. In context of selected
company, various tends in aviation sector are discuss below: Current trends of the aviation
industry, 2019
 The utilization of robots- After analyzing the challenging situations and customers
robots are establishing by airline industry which helps passengers during the busy time at
airports. This new trend will increase the level of satisfaction of passengers and also help
Airline Company to achieve higher profitability and provide better services to their
passengers (Erjavac, Iammartino and Fossaceca, 2018).

 Passenger’s solutions- According to this trend the integration of 5G network has begun.
This new trend helps in acknowledging the demand of its passengers. This trend help
both the airlines and airport in developing a product oriented demand to passenger’s
oriented demand. According to this trends new technologies are used by airline industry
which assist passengers in fast maneuver through an airport which will provide a better
experience to them and cause a positive financial impact. These changes in aviation
sector will create more competition around the globe (Friedrich and et. al. 2018).
 Liquid rules to be eased- Passengers are face many problems at the time of boarding
because of the security at airport ask them to remove various items such as liquids, gels
and electronics. But with the help of advanced technology the screening process become
easy and passengers are not require to remove such products. With the help of artificial
intelligence powered scanners they are able to detect the dangerous items. This
technology is very fast as it also able to test items like keys and belts. This will help
screeners around the whole world to make better decisions. Because of this trend
passengers are also able to quickly pass through security checkpoints on the airport
(Billings, 2018).
 More paperless and trustworthy system- Now a days the airline company use block
chain technology which will helps in improving safety and security functions. With the
help of this technology airline company is able to store and track more information about
their passengers and it will require very less paper work. This transparency helps in
increasing passengers travel, domestic or internationally and also helps in reducing the
requirement of manual verification (Huang and et. al. 2019).
 Biometric- This is the very new trend used by airline companies. Biometric system is the
future of aviation travel. Main objective of using this technology is to reduce security line
and establishing more functionality at an airplane’s gates. This will helps in reduction of
manpower and increase the speed of passengers to board their flights (Xu and Zhang,
2011).
 Technology and Artificial Intelligence- This trend in aviation sector is arises because
off increasing demand of passengers because of which airline industries are adopting
autonomous and artificial intelligence based system which will helps in improving the
efficiency and maintain higher level of securities. Machine learning technology helps in
analyzing passenger’s behavior which assist in improving airport design and achieve
better customers experience and profitability (Mousavi and Bossink, 2020).
 Sustainability- In 2020 Aviation put its efforts towards sustainability. This factor
includes the current testing biofuels, deigned lighter airframe components and airline
industry carbon footprints tax. The trend of green aircraft will have a negative impact on
travelling costs and helps industry and government in reducing the environmental impact
and wastage (Shaheen and et. al. 2019).
Analyzing the performance of selected company.
In context of selected company it is one of the biggest revenue earner company in Hong
Kong. In 2018 company announce that their passenger’s revenue is around 73,119 million which
is increased by 10.1% from 2017. But Cathay Pacific face a big loss from 2019. The biggest
reason behind is Hong Kong democracy protection and other one which impact it badly is

COVIDE-19. For better analyzing the performance of selected company its data related to
passenger’s numbers, revenue cost, profitability and customers satisfaction for the year 2018 to
2020 is mention below:
Passenger’s numbers-
From above graph it is analyzed that the performance of selected company is good in
2018 to mid of august 2019 but after that there is a huge decrease in the numbers of its
passengers. This is because of protest in Hong Kong in 2019 the numbers of passengers are
down because of which company face a big loss and after that in May, 2020 there is a heavy
impact of COVIDE-19 and the numbers of passengers are decrease to zero. This is because no
one is allowed to step outside from their home.
Profitability-
Reduction in numbers of passengers will cause reduction in profitability. In 2018
company was on its highest point and Cathay reporting around 111billion revenue in that year.
Which is 14.2% more from the previous year which it earn from its passengers and cargo
businesses. After that in the first six months of 2019 company revenue is around 1,347 million
but after that because of democracy protest its profit start decline and in May 2020 it face a big
loss around 21,648 million. The loss per ordinary share in 2020 is HK424.3%. Which is HK39%
in 2019.
Customer’s satisfaction-
This is the primary goal of any type of organisation as achieving higher customer’s
satisfaction means company efficiently achieve its objective and higher growth in future. In
context of selected firm, they improve their customer’s satisfaction rate in 2018 and it became
only the fourth airline which win the award of Annual Roy Morgan International Airline
Customers Satisfaction. Higher customer satisfaction helps company in achieving higher growth
and profitability and create a good image of company. But the first half of 2019 its level of
customers satisfaction is start decrease because of the Hong Kong democracy protest of people in

which the government tell company that it fired those employees who are participate in this
protest. This will create a bad influence on customers of selected company (Sun and et. al. 2018).
From above discussion it is analysis that selected company performance is very high till
first half of 2019 as company achieve higher customer’s satisfaction and a high traffic of
passengers. But after the first half of 2019 the performance of company start decline in in 2020
selected company face a big loss and the performance of company will goes downward after first
half of 2019. One of the biggest reason of decline in the performance of selected company is the
democracy protest of Hong Kong and the COVIDE-19 (Tian and et. al. 2018).
Various effective factors of selected company which help in recovery from Hong Kong pro-
domestic protest.
The Hong Kong democracy protest act is also known as Anti-Extradition Law
amendment bill movement. This protest is occur because of the introduction of Fugitive
offender’s amendment bill which is passed by the Hong Kong government. And other cause of
this protest is Alleged Misconduct by the country police force against the protesters Hong Kong
Protest, 2019. While other important reason is political screening, economic and social
inequality and many more. This protest cause the big influence on the growth of selected
company because its employees are participated in this protest and government of Hong Kong
clearly state that company will suspend those employees who are participated in this protest.
Selected company make effective strategies and policies which helps in recovery from this
protest because of this protest company face a big loss but this protest is resolve and company
again start their work. First measure that company take for its recovery is to make an
announcement that if any employee participate in this protest it will be suspended this helps in
building strong relation with government and they invest their money in it which solve the
problem of finance. Other than this company use various safety measures for enhancing their
customer’s satisfaction. They effectively analysis the internal factors as Cathay Pacific is bigger
and also face a lot of loss but they has appropriate resource and muscle to survive an extended
period of unrest in Hong Kong. Selected company take an effective action by reducing their price
it will helps in attracting more customers and again starting their business. Hong Kong
government take back its legislation and which will be a good news for selected company. One
of the biggest strategy of selected company is that it does not stop its cargo flights which helps in
earning some profit. The profit is low but company doesn’t face any big loss but when company
start to recover its business was again affected by COVIDE-19 and cause a big loss for company.
Selected company introduce various safety measures for their passengers and try their best so
that they again start their business operations effectively (Wang and et. al. 2020).

CONCLUSION
From above discussion on this report it is concluded that Aviation sector is effected by
the dynamic environment. Any change in weather or climate cause a big loss for company. Form
this report it is analysis that Hong Kong protest will cause failure of aviation sector because of
this protest company face big loss. There are various new trends emerging in aviation sector
which helps in providing better services to customers or passengers and provide higher growth to
company. Various new trends in aviation sector are utilization of robots, timely passenger’s
solution, liquid rules to be easy, more paperless and trustworthy, sustainability and so on. All
these trends give rise to innovation. From this report it is analysis that Aviation Company is get
influenced by COVIDE-19 and they try make effective strategies so that they can again earn
profit.

REFERENCES
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