Airline Industry Analysis and Management

This assignment delves into the complexities of the airline industry, examining various aspects such as its economic performance, business models, management strategies, safety regulations, and the passenger experience. Students will analyze academic research and case studies to understand key trends, challenges, and opportunities within this dynamic sector.

Running head: Logistics and operations management
Logistics and operations management

Logistics and operations management
Table of Contents
Introduction.................................................................................................................................................3
Task 1. Concept of planning.........................................................................................................................3
Long term planning and control..............................................................................................................3
Medium term planning and control........................................................................................................4
Short term planning and control.............................................................................................................5
Task 2. Analyze the organizations planning and control activities sequencing............................................5
Loading....................................................................................................................................................6
Scheduling...............................................................................................................................................6
Monitoring and control...........................................................................................................................7
Impact of the above activities on the organization performance................................................................7
Conclusion and recommendations..............................................................................................................7
References...................................................................................................................................................8
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Logistics and operations management
Introduction
The report focuses on the trading activities and operations of the British Airways. It
explains that how the company is using planning and controlling activities in order to meet the
long-term goals and objectives of the firm. Further, it describes the various planning and
controlling activities such as sequencing, loading, and scheduling. It tells that how the company
is monitoring and evaluating these activities in order to improve the performance of the workers.
British Airways is the biggest airline in the United Kingdom based on the fleet size. It
was founded on 31st March 1974. It is the third biggest airline group measured by the revenue
and second-biggest airline in the Europe. The British Airways was incorporated by the British
government to manage and operate the two nationalized corporations, British European Airways,
and British overseas airways corporation. In today’s era, the Airline is increasing its revenue and
profit by providing excellent and unique services to the customers (Grundy and Moxon, 2013).
Task 1. Concept of planning
Long-term planning and control
British Airways is one of the biggest airlines in the world. Therefore, various strategies
have been made by the company to attain the long-term objectives and goals within the
organization. The company is also planning to gain long-term success and growth of the firm.
Various long-term plans, policies, and strategies have been implemented by the British Airways.
The company is planning to provide outstanding services to the passengers while traveling.
Further, a long-term business plan has been made by the company to attain its long-term mission
and vision of the company. Along with this, the company is trying to meet the needs,
requirements, and expectations of the customers across the world. In addition, it is planning to
improve the financial performance of the company and it wants to provide long-term benefits to
the shareholders in near future. Along with this, the company is trying to improve the operational
performance and quality of the services for achieving the long-term goals of the firm. Further,
the company will maintain a reciprocal relationship with other partners such as travel industries
and suppliers to improve the services of the airline globally. Apart from this, the company
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focuses on the quality standards to improve the performance of the organization. It wants to gain
the competitive benefits in the airline industry by providing satisfaction to the passengers
globally (Lange et al, 2015).
The company needs to control and operate the activities while making long-term planning
within the organization. The British Airways cannot become successful without using
information technology tools within the organization. It helps to measure and control the
activities and operations of the company. Further, the company is developing inventory tracking
system to provide highly accurate and adequate visibility of parts and processes. In this way, the
company a can become a successful leader in the airline industry in near future. Along with this,
SWOT analysis and porter five forces model are used by the company to control and evaluate the
strengths and weaknesses of the competitors in near future (Ahmedzai et al, 2011).
Medium term planning and control
Medium term planning is the solutions to the short-term problems within the
organization. Medium term planning is done by the British Airways. The company provides
training and development coaching to the employees to gain medium-term objectives and goals
of the company. It will help to increase the revenue and profit of the company. If the quality
issue is found in short-term planning then quality control programs are held by the British
Airways to improve the services of the company. It will also help to provide satisfaction to the
passengers. Medium term planning is done by the company to resolve and address the short-term
problems and key issues. Apart from this, fleet planning and network planning is done by the
company to meet the medium-term objectives and goals of the company. In addition, the
company is trying to upgrade and enhance the customer experience in the global market. Along
with this, the company has developed and built a business plan to grow and enhance the trading
activities globally. It will also help to modernize the aircraft fleet and to render the new services
to the passengers across the world (Woodall, Frerk and Cook, 2011).
The company uses supply chain management tools and techniques to control and operate
the medium term activities and strategies. It helps to maximize and increase the efficiency of the
company by utilizing the natural resources. It also helps to increase and enhance the cash flow
and financial flow of the company. Along with this, the company uses leadership styles to
maintain a control over the subordinates within the organization (Budd, 2011).
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Short term planning and control
The main short-term objective of the company is to provide top quality services to the customers.
The British Airways wants to improve its online services across the world. Further, the company
is planning to develop and build the strategies for improving the efficiency and productivity of
the employees. In addition, the company is focusing on the skills, potential, and capabilities of
the workers to attain the short-term goals and objectives of the British Airways. Further, the
company is making strategies to evaluate and measure the plans, policies, and strategies to gain
the competitive benefits in the global market. In this way, the company would able to determine
the needs, desires, and choices of the passengers within the organization (Kleymann and Seristö,
2017).
The company is using total quality management to reduce the cost of the company. By using
total quality management tools and techniques, the company is able to check and evaluate the
non-productive activities and wastage within the organization. The effective communication
system has been implemented by the company to maintain a cordial relationship with passengers
in the global market. Apart from this effective and dynamic strategies have been made by the
British Airways to control and manage the business activities and operations of the company. In
this way, the company is trying to become a global player in the airline industry (Kristensen,
Teoh, and Baker, 2015).
Task 2. Analyze the organizations planning and control activities
sequencing
British Airways is the biggest international airline operator with 240 aircraft flying
between 155 destinations in 72 countries. Further, the company uses effective and unique
planning and control activities to accomplish the goals and objectives of the firm. It also helps to
hit the competitors around the world. Virgin Atlantic, Emirates, Jet Airways, and British
Midland are the competitors of the company. Sequencing process is followed by the British
Airways in order to maintain the sustainability of the organization (Belobaba, Odoni, and
Barnhart, 2015). It also provides various long-term opportunities to the company. Through
sequencing, the company is able to carry the trading activities and operations within the
organization. In addition, the company can tackle the work of each department in the
organization easily by using sequencing process. The firm uses various sequencing rules in the
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operations in order to improve the services of the company. Passengers are important in the
airline industry to explore and expand its business activities globally. Sequencing is the
important tool to attract more passengers globally. The company uses LIFO and FIFO method in
the organization (Lawton, Rajwani and Doh, 2013).
Loading
Loading is used by the British Airways to improve the conditions of the machines within
the organization. The company uses various loading factors to measure and evaluate the capacity
utilization of public transport services such as passenger railways, airlines and intercity bus
services. The company uses load factors to assess and evaluate the performance of transport
system. There are two types of loading which include finite loading and infinite loading. Finite
loading is an approach and method which only distributes work to a work center (a machine, a
person or a group of the machine or people). Infinite loading is an approach and tool which does
not distribute the task to a work center. The work is assigned by the company to the employees
on the basis of capabilities and potential of the employees. Now it is assumed that loading factors
are used by the British Airways to increase the profit of the company and to improve the quality
of the machinery (Ringle, Sarstedt and Zimmermann, 2011).
Scheduling
British Airways uses scheduling process to assign the task and duties to the employees within the
organization. Under scheduling, the company assigns the resources to the workers in order to
complete the work. Further, the company is using scheduling process to fix the schedule of the
employees to improve the efficiency and effectiveness of the employees. The firm maintains
effective and sustainable human resource management to fix the schedule of the workers in the
organization (Assaf and Josiassen, 2012). The employees scheduling software is used by the
British Airways to reduce the burden of the employees. It also helps to reduce the conflicts and
disputes of the employees. It helps to provide a healthy and favorable working environment to
the people in the organization. Scheduling reduces the turnaround time of the front office staff.
Under scheduling, employees are responsible to provide input on the particular time. It helps to
maintain a reciprocal communication and collaboration between employees and passengers. The
company can do better use of multiprogramming capabilities within the organization. Gantt chart
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is used by the company in scheduling process within the organization (Samaranayake and
Kiridena, 2012).
Monitoring and control
The main aim of the British Airways is to protect the interest of the passengers and
clients by providing effective services to them. Thus, British Airways focuses on the culture and
working environment of the organization (Borenstein and Rose, 2014). It provides basic facilities
to the employees. The firm collects the feedback and reviews from the passengers to improve the
services of the company. Monitoring and controlling are the essential component of the human
resource management. A team has been appointed by the company to monitor and control the
activities and operations of the company. It is also responsible to improve and enhance the
performance and effectiveness of the workers within the organization (Daft and Albers, 2013).
Further, the company uses pull factors and push factors to control and monitor the trading
activities and operations of the firm.
Impact of the above activities on the organization performance
The sequencing, loading, scheduling, monitoring, and control activities are essential to
improve the performance and effectiveness of the organization. The company can carry the
trading operations and activities smoothly by using these activities within the organization.
These activities also help to increase and maximize the outputs of the British Airways. By using
these activities, the company can easily evaluate and measure the performance and productivity
of the workers (Aguirregabiria and Ho, 2012). It also helps to resolve the issues and problems of
the workers within the organization. The efficient use of labor is possible by using scheduling
process within the organization. Further, it also helps to improve the service level of the British
Airways. These activities help to reduce and minimize the worker cost. It also helps to maintain
ethical standards and code of conducts within the organization. In this way, the company is able
to improve and maximize the efficiency and effectiveness of the organization as well as
employees (Zhang and Czerny, 2012).
Conclusion and recommendations
On the above aforesaid information, it has been concluded that planning and essential are
the significant part of the British Airways. It helps to overcome the competitors in the global
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market. The company uses sequencing, loading, scheduling, monitoring and control activities to
improve the performance of the organization.
Now it is recommended that British Airways must focus on the strategies and policies to
attain the long-term goals and objectives of the firm. It should also focus on the short-term
planning and medium-term goals to make a good position in the world. Further, it must monitor
and control the sequencing, scheduling process within the organization. It should evaluate and
analyze the various loading factors to evaluate the efficiency of the employees. In this way, the
British Airways can become a global leader in the global market.
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References
Aguirregabiria, V. and Ho, C.Y., 2012. A dynamic oligopoly game of the US airline industry:
Estimation and policy experiments. Journal of Econometrics, 168(1), pp.156-173.
Ahmedzai, S., Balfour-Lynn, I.M., Bewick, T., Buchdahl, R., Coker, R.K., Cummin, A.R.,
Gradwell, D.P., Howard, L., Innes, J.A., Johnson, A.O.C. and Lim, E., 2011. Managing
passengers with stable respiratory disease planning air travel: British Thoracic Society
recommendations. Thorax, 66(Suppl 1), pp.i1-i30.
Assaf, A.G. and Josiassen, A., 2012. European vs. US airlines: Performance comparison in a
dynamic market. Tourism Management, 33(2), pp.317-326.
Belobaba, P., Odoni, A. and Barnhart, C. eds., 2015. The global airline industry. John Wiley &
Sons.
Borenstein, S. and Rose, N.L., 2014. How airline markets work… or do they? Regulatory reform
in the airline industry. In Economic Regulation and Its Reform: What Have We Learned? (pp.
63-135). University of Chicago Press.
Budd, L.C., 2011. On being aeromobile: airline passengers and the affective experiences of
flight. Journal of Transport Geography, 19(5), pp.1010-1016.
Daft, J. and Albers, S., 2013. A conceptual framework for measuring airline business model
convergence. Journal of Air Transport Management, 28, pp.47-54.
Grundy, M. and Moxon, R., 2013. The effectiveness of airline crisis management on brand
protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-6
Kleymann, B. and Seristö, H., 2017. Managing strategic airline alliances. Routledge.
Kristensen, M.S., Teoh, W.H.L. and Baker, P.A., 2015. Percutaneous emergency airway access;
prevention, preparation, technique and training.
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Lange, K., Geppert, M., Saka‐Helmhout, A. and Becker‐Ritterspach, F., 2015. Changing
business models and employee representation in the airline industry: A comparison of British
Airways and Deutsche Lufthansa. British Journal of Management, 26(3), pp.388-407.
Lawton, T., Rajwani, T. and Doh, J., 2013. The antecedents of political capabilities: A study of
ownership, cross-border activity and organization at legacy airlines in a deregulatory
context. International Business Review, 22(1), pp.228-242.
Ringle, C.M., Sarstedt, M. and Zimmermann, L., 2011. Customer satisfaction with commercial
airlines: The role of perceived safety and purpose of travel. Journal of Marketing Theory and
Practice, 19(4), pp.459-472.
Samaranayake, P. and Kiridena, S., 2012. Aircraft maintenance planning and scheduling: an
integrated framework. Journal of Quality in Maintenance Engineering, 18(4), pp.432-453.
Woodall, N., Frerk, C. and Cook, T.M., 2011. Can we make airway management (even) safer?–
lessons from national audit. Anaesthesia, 66(s2), pp.27-33.
Zhang, A. and Czerny, A.I., 2012. Airports and airlines economics and policy: An interpretive
review of recent research. Economics of Transportation, 1(1), pp.15-34.
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