Comprehensive Report: Management Challenges in the Airline Industry

This report, prepared by an operation manager at Qantas Airlines, examines the management challenges within the airline industry, particularly focusing on the rise of Low-Cost Carriers (LCCs) and the corresponding impact on Full-Service Carriers (FSCs). The report employs a survey methodology, incorporating both closed and open-ended questionnaires to gather customer insights on topics such as travel frequency, satisfaction levels, and perceptions of airline strategies. It delves into the operational models of LCCs and FSCs, analyzing the factors behind LCC growth, technological advancements, and the significance of core business measures. The report also investigates management perspectives on passenger handling, market dynamics, and the effectiveness of various strategies. Furthermore, it assesses the importance of LCCs and their preference by passengers, the quality differences between the two carriers, and the impact of airline business models. The conclusion emphasizes the importance of the survey questions and the need for understanding the standard of setting in airlines and their business procedures, highlighting the positive impact of LCCs and their productivity compared to FSCs. The report includes references to various research papers and online resources to support its findings.

Running head: MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
Name of the Student
Name of the University
Author Note

1MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
Table of Contents
Introduction..........................................................................................................................2
Customer Background.........................................................................................................2
Close ended Questionnaire..................................................................................................2
Open Ended Questionnaire..................................................................................................3
Customer interest in travelling.............................................................................................3
Close ended Questionnaire..................................................................................................3
Open Ended Questionnaire..................................................................................................4
Operational background and Model....................................................................................4
Close ended Questionnaire..................................................................................................4
Open ended Questionnaire...................................................................................................5
Management Perspective.....................................................................................................5
Open ended Questions.........................................................................................................6
Method of questionnaires....................................................................................................7
Conclusion...........................................................................................................................8
References:..........................................................................................................................9

2MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
Introduction
The conventional process of market establishment and the establishment of that standard
is now a concerning factor for the aviation organization. There is two operational process
persisted in the aviation and both have different market base to deal in. There is certain bilateral
agreement in between operating carrier and traffic rights. The growth of business model also
identifies the differentiation of product offering, facilities, and services and achieves to meet the
target customers. The report also analyzes the better understanding of management problem that
has to be faced by the FCC's (Rozenberg, Szabo and Šebeščáková 2014). The radical growth of
LCC and their business behavior and intention have been changed in responding way thus people
prefer LCC rather than FSC. All these strategies have been designed in an ethical way and have
set some target customers but aviation department management has not differentiated the project
at all (Budd, Griggs and Howarth 2013).
Therefore, I an operation manager of Qantas Airlines, is going to make this survey on the
following objectives of Business market enhancement of LCC operation and the regarding
downfall of FCC.
Customer Background
Close ended Questionnaire
1. What was your age group?
 15-20 yrs
 21- 25 yrs
 26- 35 yrs
 36- 50 yrs
 51- 60 yrs

3MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
2. What is your academic qualification?
 Diploma
 Bachelors
 Masters
 Doctorate
 Others
3. What is your monthly salary?
 1500-3000
 3000-4500
 4500-6000
 6000-7500
 More than 7500
4. What type of flight you are taking today?
 Low Cost Carrier
 Full Service Carrier
Open Ended Questionnaire
1. What is the impact of Full-Service Carriers in airlines?
2. What is the impingement of Low-Cost Carriers in airlines?
Customer interest in travelling
Close ended Questionnaire
1. How often do you travel?
 Daily
 Weekly

4MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
 Monthly
 Yearly
 Often
 Quarterly
2. How was your journey?
 Good
 Must be improve
 Very Satisfactory
 Not so good
 Bad
 Worst
3. Do the airlines take more money than the given service?
 Yes
 No
4. Do you agree that operating costs of these two strategies are implementing in a legitimate
way in airlines?
 Yes
 No
Open Ended Questionnaire
1. What is the effective difference between FCC and LCC?
2. What is the reason behind the rapid growth of LCC?
Operational background and Model
Close ended Questionnaire

5MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
1. Does LCC are reducing for giving emphasize on low short haul operation?
1. Yes
2. No
2. Rapid increase in technological change in airlines is good for the passengers?
 Good
 Not so good
 Bad
 Could have been better.
3. Do you think that core business measures and point development of the airlines enhance
LCC’s market?
 Yes
 No
 Do you agree that ancillary service in LCC is the main concern business development in
this section rather than FSC?
 Yes
 No
Open ended Questionnaire
1. What are the effects of market degradation due to those strategies in airlines?
2. What is the importance of Airline Business Model?
Management Perspective
[1- Strongly Disagree. 2- Disagree. 3- Moderate. 4- Agree. 5- Strongly Agree]
Close ended Questions

6MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
1. Do you agree that new passenger management and the facility is more advanced than
older traveling process?
1
2
3
4
5
2. How far you agree LCC market has flourished enough than FSC market?
1
2
3
4
5
3. Do you agree that normal challenges in airline are mitigating in a rapid way due to the
implementation of those strategies?
1
2
3
4
5
Open ended Questions
1. What are the importance of LCC and its preference by the passengers?
2. What is the quality difference between two carriers and their supportive nature?

7MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
Method of questionnaires
The questions have been chosen as per the context of the future understanding of Low-
cost carriers and Full-service carrier. These are the two operational strategies that aviation used
for their customer satisfaction. However, in recent time the LCC has an immense growth in
perspective of customers and service (aviation.itu.edu.tr 2017). As the cost is low and more on
the strategy supposed to provide the full fledged service that FSC has done so people can easily
relate with that (Kim and Park 2017). Low-cost carriers and their importance of core business is
an important issue thus this kind of questions and revised strategy of making passengers
preference has been highlighted through the questions (researchgate.net 2017). The availability
of aircraft that has been controlled or indulge by LCC is another reason behind that business
expansion (Lim and Tkaczynski 2017). Thus these kinds of question are also being asked. The
survey questions have also shed light on the future behavior of the operation management and
outsourcing of them through companies. Impact of FCC and LCC has been asked in this report
so that valid understanding and analyses must sustain. Reservation cost, ticket less price; luggage
charges, cost of these are also very low thus people prefer this operation. As asserted by
Reichman et al. (2016), this kind of question interpreted the sustainable economic feedback that
evaluates the company service and speculated target customers.
The survey has been done in between 200 customers who have an appropriate experience
in traveling on Airbus. The quantitative analysis also enhances the tested information gathering
and makes addition research over the topic (Wensveen 2016). The questions are being set in this
manner so that the required purpose or the perspective can be served in an ethical way
(upcommons.upc.edu 2017). The importance of destination, labor productivity, and lower cost

8MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
distribution has been evolved by those questions. The answers adopting the strategic influence
and make a proper base of understanding that economic requirement in any transport is essential
and relevant (Prideaux and Whyte 2014). Carriers department of aviation has highlighted both
the operations but the way LCC's are gaining their market size and structure it has created the
problem for the FSC's (icao.int 2017). Thus actual charter carriers of the airline are for the
holiday maker or tourist people, thus most of the time customer satisfaction is the main issue that
needs to be the concern in this aviation department (Fu and Oum 2014).
Conclusion
These survey questions are important as well as state the occupancy of management
research. The standard of setting in airlines and their business procedure will be clearly
understood by the evaluating nature of these questions. The expected answers are mostly positive
as it has been seen that LCC has done a good job and sustain with their productivity comparing
to FCS. Therefore the report consists of the designing amplification of ensuring LCC impact in
this modern market as well as tested the behavioral find in this scenario. There are close ended
questions and open ended questions where customer satisfaction, quality of ride, comfort,
customers handling and implementation of strategies are the concerned analysis from the
aviation business point a view.

9MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
References:
Budd, L., Griggs, S. and Howarth, D., 2013. Sustainable aviation futures. Emerald Group
Publishing.
Fu, X. and Oum, T.H., 2014. Air Transport Liberalization and its Effects on Airline Competition
and Traffic Growth–An Overview. In The economics of international airline transport (pp. 11-
44). Emerald Group Publishing Limited.
Kim, S.B. and Park, J.W., 2017. A study on the importance of airline selection attributes by
airline type: An emphasis on the difference of opinion in between Korean and overseas aviation
experts. Journal of Air Transport Management, 60, pp.76-83.
Lim, S.S. and Tkaczynski, A., 2017. Origin and money matter: The airline service quality
expectations of international students. Journal of Hospitality and Tourism Management, 31,
pp.244-252.
Prideaux, B. and Whyte, R., 2014. Implications for destinations when low-cost carrier operations
are disrupted: the case of Tiger Airlines Australia. In Advances in Hospitality and Leisure (pp.
99-118). Emerald Group Publishing Limited.
Reichman, B.O., Downing, J.M., Aubert, A., Gee, K.L., Neilsen, T.B., McKinley, R.L., Wall,
A.T. and James, M.M., 2016. Acoustical Environment During F-35B Vertical Landing
Operations. Journal of Aircraft.
Rozenberg, R., Szabo, S. and Šebeščáková, I., 2014. Comparison of FSC and LCC and Their
Market Share in Aviation. International Review of Aerospace Engineering (IREASE), 7(5),
pp.149-154.
Wensveen, J.G., 2016. Air transportation: A management perspective. Routledge.

10MANAGEMENT PROBLEMS IN AIRLINE INDUSTRY
aviation.itu.edu.tr (2017) Available form: http://aviation.itu.edu.tr/%5Cimg%5Caviation
%5Cdatafiles/Lecture%20Notes/Aviation%20Economics%20and%20Financial%20Analysis
%2020152016/Readings/Module%2007/Airline%20Business%20Models.pdf [Accessed on 18th
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researchgate.net (2017) Available from:
https://www.researchgate.net/publication/287458692_Comparison_of_FSC_and_LCC_and_their
_market_share_in_aviation [Accessed on 17th September, 2017]
icao.int (2017) Available form:
https://www.icao.int/sustainability/CaseStudies/StatesReplies/Europe_LowCost_En.pdf
[Accessed on 18th September]
upcommons.upc.edu (2017) Available from:
http://upcommons.upc.edu/bitstream/handle/2099/16292/1191-6795-2-PB.pdf [Accessed on 16th
September]