Logistics and Operations Management at Heathrow Airport: Analysis

This report provides an analysis of the operational activities at Heathrow Airport, a major international airport. It examines various aspects of operations management, including capacity creation, airline responsibilities, setting standards, and the roles of regulatory bodies like the Civil Aviation Authority (CAA) and National Air Traffic Services (NATS). The report delves into service quality, materials management, commercial services, and the functions of HM Revenue and Customs and the UK Border Agency. Furthermore, it explores scheduling practices and the role of Airport Coordination Limited (ACL) in coordinating flight activities. The conclusion highlights the interrelation of these activities and the importance of maintaining high service quality, efficient resource utilization, and effective scheduling for the airport's overall success. The report references several academic sources to support its analysis.

Logistics and Operations
Management for Travel and
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
Analysis of the operational activities in Heathrow Airport........................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Heathrow airport is an international airport which is situated in London. It is very busy
airport in the whole world, when it comes on ranking according to the passengers then it comes
on third number. It operates their activities 24 hours and there is no limitations regarding flights.
Operation management means how they manage their activities which is related to their business
and also how they deliver their services and products to their customers (Bosun, Tenescu and
Dima, 2014). Operation management transform inputs into outputs. There are four types of V's in
the operational activities of Heathrow airport such as volume, variety, variation in demand and
visibility.
Analysis of the operational activities in Heathrow Airport.
Operational activities means how company do their operations and how they manage
their available resources to provide their services and products to the customers. Operational
activities at Heathrow airport is show that how responsible they are for doing their work and how
they crate their value of their products and services (Barney, 2012). There are various types of
operational activities which are doing in Heathrow airport, are mentioned as below -
Capacity creation at Heathrow airport: It describes about the capacity of the Heathrow
airport, it is very necessary to crate more capacity foe any airlines company. The creation of
capacity helps to increase the number of passengers in the airport. Heathrow airport is an
international airport so it is necessary that there must be proper space for passengers. According
to the basis approx 200,000 passengers travel through the Heathrow airport. So it is very needy
for the airlines to utilize the maximum capacity of it.
Airlines: The companies who are related to airlines are accountable for their passengers to check
them properly, deliver their luggage to them when they reach to their destination. Board their
passengers carefully, liable for their safety and for catering also (Liggett and et. al., 2011).
Setting standards at Heathrow airport: In every companies there are operational
activities which are doing on daily basis, so also there are activities at Heathrow airport which
are also doing daily, it is necessary to run all the activities very smoothly, so for this purpose
there are some set standards that must be follow by the airlines.
Civil Aviation Authority (CAA): CAA is a regulatory body and which regulates all the
civil air power in UK. CAA plays an important role and also responsible to control all the flights

and their routes. They are also liable to regulate all airlines and airports at UK and also sets
charges which is related to airport. It is the main responsibility of CAA to maintain the quality of
service and also execute all the activities at the airport.
National Air Traffic Services (NATS): NATS is introduced by UK in 2001 to manage the
air traffic of air crafts. There is no control of government, it is a private company. NATS are
responsible to control all the traffic activity and management during flying of an aircraft (Ip,
Leung and Law, 2011). There are various operational activities which is doing by NATS such as
Air traffic controllers, Air traffic service help etc.
Service quality: It is presented by CAA, and it helps to determine the quality of service
which is related to airlines and passengers also at Heathrow airport. It is necessary for any
airlines company to maintain the quality of their services for their passengers. There are many
features regarding to service quality which is mentioned as below -
 There are some set standards to attain or achieve the quality service of the Heathrow
airport for this purpose CAA also provide some incentives to them.
 There are also some payments which is related to rebate which is made on monthly basis.
 To maintain the service quality there are some charges that could not exceed from the 7%
of airport charges.
This scheme related to rebate also covers -
 Perception of any passenger which is related to their seat in the lounge and their
information system that helps to know about the flights.
 Easiness to search the way, and also cleanliness of the wash rooms.
 It is also necessary that there is proper security is available or not for the passengers.
 Wifi is easily accessible or not (Wu, Tsai, and Zhou, 2011).
 Passenger Sensitive Equipment (PSE): It includes the services regarding lifts, escalators,
walkways are easily accessible or not.
 Also there must be an emergency services which is provided at Heathrow airport for their
passengers.
Materials at Heathrow airport: Materials are necessary for doing any operational
activities at Heathrow airport. These are physical resources that play crucial role in operational
activities and support for the production. There are some operational activities which is related to
materials are mentioned as below -

Commercial services: There are many commercial activities which is doing at Heathrow
airport. It has an important role for daily operations. Commercial activities include various
activities such as car parking, catering services, shopping, restaurants, services which is related
to banking sector etc. There are various points regarding the use of commercial services are
mentioned as below -
 The operational activities are carry on 24 hours at Heathrow airport.
 Passengers can easily use the services of restaurant of Heathrow airport 24 hours.
 Parking facility can also access by passengers 24 hours.
HM revenue and customs: It is most important operational activity at Heathrow airport. It
helps to control on various activities such as import and export of goods. For this there are
various rules and regulations made (Zhu, Mukhopadhyay and Kurata, 2012). It also helps to
protect trade in illegal activities like tobacco, drugs etc. and also prevent trade of child
pornography.
UK border agency: It is an agency which is related to the government of UK and supports the
activities which is related to Heathrow airport. It helps to control activities related to passport. It
is also decide that which people can enter into the country and which can not. It also deal with
the activity which is related to deportation.
Scheduling at Heathrow: It is very necessary to manage schedule at Heathrow airport. If
there is no management regarding the schedule then every activity can mismanage. As it is
known by everyone that air traffic is continuously increasing day by day so it is very necessary
to control it. As everyone knows that Heathrow airport is an international airport so scheduling is
very matter for that. To manage the schedule it is must to decrease any delay of aircraft through
this they can manage the cost and also can take the benefit of pollution. It is also necessary that
resources which is needed for daily operations available timely, so that they can fulfil the
demand (Dickinson and et. Al., 2014). It is necessary to manage the time of take – off and
landing because if there is unnecessary delay then it may cause of fine which can make a
negative impact on that airline. Heathrow airport takes support of Airport coordination limited
for their operational activities.
Airport Coordination Limited (ACL): It helps to other airlines to coordinate their
activities related to aircraft. They coordinate approx 3 million flights in every year. ACL provide
there services to the Heathrow airport at three levels, which are mentioned as below:

Level – 1: Data collection: In this they provide data to airlines for their conveyance and they feed
automatically in the database of airlines.
Level – 2: Facilitation: If there is any issue regarding to Heathrow airport then ACL helps to
resolve it and maintain all the adjustments which is necessary (Chen, Liu and Chang, 2013).
Level – 3: Slot coordination: If there is any differences between the demand and capacity of the
aircraft then it can be eliminated through slot allocation.
There are also some services which is provided by ACL which are mentioned as below -
 They provide trading services which is divided according to slot.
 They forecast their schedules to reduce mismanage of activities.
 They develop the route of aircraft.
 They maintain coordination between system and schedule.
 They also analysis the overall performance and make everything punctual.
 They schedule all the data and ensure that data can be easily analysed (Barros, and et. al.,
2011).
CONCLUSION
As per the above mentioned report it is concluded that in every type of companies need to
do operational activities which is done on daily basis. At Heathrow airport there are also various
activities that are necessary to do. Heathrow airport provide best quality of services to their
passengers. All the activities which is doing by Heathrow airport are totally interrelated with
each other. If there is an differences in their quality then it may give negative impact on
Heathrow airport. There are many operational activities which is done at Heathrow airport like
capacity creation, material requirements, service quality, scheduling, maintain the standards etc.
it is very necessary for airlines company to maintain the service quality of the airport and also
use best resources or material for production. Create the capacity of the airport to meet the
requirements. Manage schedule of the airport and follow the standards to maintain the quality of
service and products.

REFERENCES
Books and Journals
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Zhu, X., Mukhopadhyay, S.K. and Kurata, H., 2012. A review of RFID technology and its
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Chen, K.H., Liu, H.H. and Chang, F.H., 2013. Essential customer service factors and the
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