Professional Documents
Culture Documents
Airport Customer Service BBCS-101D Final
Airport Customer Service BBCS-101D Final
BBCS-101D
S
BBA (Aviation Operations)
Course Design
S
Advisory Council
Chairman
Dr Parag Diwan
PE
Members
Dr Kamal Bansal Dr Anirban Sengupta Dr Ashish Bhardwaj
Dean Dean CIO
Author
Sudhendra Mishra
All rights reserved. No part of this work may be reproduced in any form, by mimeograph or any other means,
without permission in writing from MPower Applied Learning Enterprise.
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Contents
Block-I
Unit 6
UP Block-II
Block-III
Block-IV
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Block-V
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Unit 21 Dealing with Complaints............................................................................................ 207
Notes
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UP
BLOCK-I
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Airport Customer Service
Detailed Contents
Notes
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UNIT 1: OVERVIEW OF AVIATION INDUSTRY
___________________ UNIT 3: AIRLINES
Introduction Introduction
___________________
Role of Aviation Industry Activities of Airlines
___________________
Overview of Airports Operations of Airlines
___________________
Developments in Airport Sector Airline Meal
___________________
Airlines: Investors’ Perspective
___________________ UNIT 4: AIRPORTS
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Developments in Air Transport
Economic Input of Airport Privatisation
Effect of Globalization
Notes
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Activity
Visit___________________
local office of an airline
Overview of Aviation Industry and with the help of their office
___________________
representative, prepare an
article on the aviation industry.
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction ___________________
UP
Aviation is the design, development, production, operation, and use
of aircraft, especially heavier-than-air aircraft. The word
"Aviation" was coined by French writer and former naval officer
Gabriel La Landelle in 1863, from the verb "avier" (synonymous
flying), itself derived from the Latin word "avis" ("bird") and the
"suffix "-ation.
Few inventions have changed how people live and experience the
world as much as the invention of the airplane. During both World
Wars, government subsidies and demands for new airplanes vastly
improved techniques for their design and construction. Following
the World War II, the first commercial airplane routes were set up
in Europe. Over time, air travel has become so commonplace that it
would be hard to imagine life without it. The airline industry,
therefore, certainly has progressed. It has also altered the way in
which people live and conduct business by shortening travel time
and altering our concept of distance, making it possible for us to
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___________________ airstrips example is the c-172,c-182,c-206,c-208 caravan, let 410 to
be able to serve all the purpose. Travelling to Northern and North
___________________
Eastern Kenya there is insecurity, poor road infrastructure and
___________________
you can not risk going by road as you will be required to have a
___________________ convoy of security which you will have to pay for and in case the
___________________ vehicle breaks down then you are at the mercy of the bandits. Why
go through all these when you can take a private charter
___________________
depending on your need and we have on our menu all ranging from
___________________ 3 to 37 seater at your disposal. You can see aviation has played
___________________ and is still playing a vital role in travel and a journey which could
take you days by road will take you hours.
___________________
___________________
Aviation has enabled business owners and investors to run
UP business all over the world and they can be able to visit them
physically within days and be back at to the headquarters same
day by using either private charter or commercial flights. Not even
forgetting countries affected by war where medical attention, relief
supplies is required it can be done in hours.
Within aviation the sky is the limit and even transportation of
fresh flowers and fresh vegetables can be flown and received when
fresh and one might think it was planted there.
In the event of hijacking at the sea, aircrafts are able to deliver the
negotiated ransom within hours and it can be parachuted without
other people knowing. In supplement medicine, cloth, food, water
can be parachuted using aircrafts. In war tone areas like South
Sudan, Dar fur, Chad where people are suffering and there are no
roads and there is insecurity. C-130 aircraft 18 toner aircraft,
Buffalo 5 tonnes are used to do food drops to save lives of millions.
Indeed aviation industry has contributed a lot in making our travel
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Overview of Airports
Notes
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Activity
Aviation Industry consists of two components, namely:
Prepare a report on major
___________________
1. Airports airports of India.
___________________
2. Airlines
___________________
Airports are an essential part of the air transport system. They
___________________
provide all the infrastructure needed to enable passengers and
___________________
freight to transfer from surface to air modes of transport and to
allow airlines to take off and land. The basic airport infrastructure ___________________
consists of runways, taxiways, apron space, gates, passenger and ___________________
freight terminals, and ground transport interchanges. Airports
___________________
bring together a wide range of facilities and services in order to be
able to fulfil their role within the air transport industry. These ___________________
services include air traffic control, security, fire and rescue in the ___________________
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airfield. Handling facilities are provided so that passengers, their
baggage, and freight can be successfully transferred between
air-craft and terminals, and processed within the terminal.
Airports also offer a wide variety of commercial facilities ranging
from shops and restaurants to hotels, conference services and
business parks as well as playing a crucial role within the air
transport sector; airports have a strategic importance to the
regions they serve.
In a number of countries they are increasingly becoming integrated
within the overall transport system by establishing links to
high-speed rail and key road networks. Airports can bring greater
wealth, provide substantial employment opportunities and
encourage economic and can be a lifeline to isolated communities.
However, they do have a very significant effect, both on the
environment in which they are located and on the quality of life of
residents living nearby. Growing awareness of general
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___________________
Each airport operator will thus have a unique identity – but all
___________________ have to assume overall control and responsibility at the airport.
___________________ Each will be faced with the challenging task of co-coordinating all
the services to enable the airport system to work efficiently. The
___________________
providers of services are just some of the airport stakeholders
___________________ which operators need to consider. Others include shareholders,
___________________ airport users, employees, local residents, environmental lobbyists,
and government bodies. A complex situation exists with many of
___________________
these groups having different interests and possibly holding
___________________
conflicting views about the strategic role of the airport. All the
___________________ stakeholder relationships will be important but, clearly, the
___________________ development of a good relationship with the airlines will be critical,
UP as ultimately this will largely determine the air services on offer at
the airport.
Heathrow has the most international traffic, while Atlanta,
Chicago, and Los Angeles have the largest passenger throughput.
The largest passenger airport in Asia is Tokyo Haneda, which is
dominated by domestic traffic. Not all the major cargo airports
coincide with the major passenger airports. Memphis is the world’s
largest cargo airport because Federal Express is based here.
Similarly, UPS has its base at Louisville. The cargo market is more
widespread with six of the important cargo airports situated in
Asia. The larger than average aircraft size in Asia means that
none of the busiest airports in terms of movements are situated in
this region. All the 20 busiest airports, whether measured in
passengers, cargo or movements are in North America, Europe, or
Asia/Pacific, with none in any other global region.
airports.
2. Airports also offer a wide variety of ………………….
facilities ranging.
UNIT 1: Overview of Aviation Industry
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Activity
The growth in demand for air transport has had very significant
Prepare a presentation on key
___________________
economic and environmental consequences for both the airline and developments in airport
airport industries. Moreover, since the 1970s there have been sector.
___________________
major regulatory and structural developments, which have affected ___________________
dramatically the way in which the two industries operate. Initially
___________________
most change was experienced within the airline sector as a
consequence of airline deregulation, privatization and globalization ___________________
trends. The pace of change was slower in the airport industry, but ___________________
now this sector, too, is developing into a fundamentally different ___________________
business.
___________________
The trend towards airline deregulation began in 1978 with the
___________________
deregulation of the US domestic market. Many more markets
___________________
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subsequently have been liberalized or deregulated. In some places
this has been the result of the adoption of more liberal bilateral air
service agreements, as has occurred on a number of the North
Atlantic and Pacific routes. In the European Union (EU),
deregulation has been achieved with a multilateral policy which
has evolved over a number of years with the introduction of the
three deregulation packages, in 1987, 1990, and 1993. The 1993
package, which did not become fully operational until 1997, was
the most significant package and has had the most far-reaching
impact. This European deregulation has allowed a new low-cost
airline industry to develop, which has had major consequences for
certain, airports.
At the same time, airline ownership patterns have changed. Most
airlines, with the notable exception of those in the United States,
traditionally were state owned and often subsidized by their
government owners. However, this situation has substantially
changed as an increasing number of governments have opted for
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___________________ now found themselves being caught up in this environment of
change. Radical restructuring has occurred, which in many ways
___________________
mirrors that which has fundamentally changed the airline
___________________
industry. Three key developments have been witnessed within the
___________________ airport sector:
___________________ Airport commercialization: The transformation of an
___________________ airport from a public utility to a commercial enterprise and the
adoption of a more business like management philosophy.
___________________
___________________
Airport privatization: The transfer of the management of an
airport, and in many cases the ownership as well, to the
___________________
private sector by a variety of methods. These include share
___________________ flotations, the adoption of strategic partnerships or the
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introduction of private management contracts.
Airport globalization: The emergence of a few global airport
companies who are operating at an increasing number of
airports around the world. Some of these global players are
traditional airport operators whereas others are new to airport
management.
Though the aviation industry cannot survive with the support of
the government, still majority of the major airports and airlines of
the world are privately owned and many are doing well. Major
airlines like Virgin Atlantic, Ryan Air and Jet Airways, Kingfisher
airlines are in the private hands and are doing well,
Similarly the airports like Pearson International Airport, Toronto
Canada; Schipol Airport in Netherland, Bangalore and Hyderabad
are in the private hands.
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Let us analyze the perspective of the airlines from an investor Activity
Write___________________
an article on the
point of view. They want to know how is the airlines financial
investors’ perspective on
analysis and also its mission to meet the challenges of the future. ___________________
airlines.
The following points are important for this analysis. Below are the ___________________
8 (eight) points which the investor would like to analyze before
___________________
investing his money and these are also the points to analyze the
health and performance of the good management of the airlines: ___________________
___________________
Analyze Fuel Hedging
___________________
Some airlines try to pass higher fuel costs on to their customers in
___________________
the form of a fuel surcharge. But the most efficient way to mitigate
fuel costs (particularly over time) is to purchase futures contracts ___________________
that lock in a company’s fuel supply for the coming year at a set ___________________
price.
UP
To be clear, all airlines do some hedging. But some companies
hedge more than others. As such, they are better prepared, should
oil prices skyrocket.
For example:
Southwest Airlines hedged as much as 85% of its annual fuel usage
over the past six years. The move effectively locked in consumption
at $26 per barrel of oil, which in turn saved shareholders an
estimated $1.8 billion (from 1999 to 2005). Conversely, other
airlines such as Alaska Air hedged a smaller percentage of their
expected fuel consumption, and as a result their annual savings
were much less during that same time period.
In any case, investors should review the company’s financial
statements (Form 10-K/10-Q) for information about its hedging
activities. While there is no hard and fast rule, investors should
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really fly.
but also at the interest rates the company is paying on those debts.
Notes A good way to determine if the interest rate is excessive is to
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___________________ calculate the interest coverage ratio.
___________________ To calculate the interest coverage ratio, take the annual EBITDA
___________________ number and/or the airline’s operating income, and divide it by the
annual interest expense. Ideally, in order to feel comfortable that
___________________
the company will be able to meet its debt service obligations, an
___________________ airline’s EBITDA should cover its interest expense by at least two
___________________ times but preferably three.
For example:
Atlanta is a major hub for destinations in New York, Florida and
California. It’s centrally located pit stop where a lot of aircrafts fly
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Incidentally, savvy investors should also be on the lookout for ___________________
companies that have a presence in up-and-coming hubs as well. ___________________
Northwest Airlines services a great deal of flights in and out of the ___________________
expanding Detroit area. As this city undergoes its rebirth, and its ___________________
population grows, the number of flights to and from the city is
___________________
expected to increase. By extension, one could assume Northwest
could see a big bump in revenue as well. ___________________
___________________
Consider Labour Relations
___________________
Because airlines use unionized labour and are routinely forced to
___________________
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renegotiate salary contracts with pilots, mechanics and a host of
other employees, the possibility of a strike is omnipresent.
However, as part of the research process the investor should still
make an attempt to gauge the likelihood of a future strike and its
potential impact on financial results.
In order to do this, investors should listen to the news and pursue
industry trade journals such as Airport World Magazine. Investors
should also pay particular attention to any pending negotiations,
and specifically to any (union) employee demands for sizeable
increases in health and/or wage contributions. Additional
information can be gleaned from the airline’s SEC (Securities and
Exchange Commission) filings. In fact, in the 10-K/Q most airlines
include their assessment of the state of current labour relations, as
well as information about any future liabilities that could be
incurred if negotiations go against the company. All of these
sources can be quite helpful. If a strike appears imminent, or there
is a very real possibility of a major wage dispute in the not too
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distant future, its makes sense to avoid the stock until the
situation clears.
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Acquisition Opportunities
If a company has deep pockets (meaning it’s flush with cash), or it
has the financial ability to take on more debt, it may seek out
viable acquisition candidates as a means of growth. Savvy
investors would be wise to try to determine the potential cost
savings associated with those acquisitions, as well as the ultimate
Airport Customer Service
price impact on both the shares of the suitor and the company to be
Notes acquired.
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___________________
For example:
___________________
Consider U.S. Airways’ $8-billion bid for Delta Airlines in
___________________ December of 2006. Analysts and investors were trying to weigh out
___________________ which stock could benefit the most if a deal were to be hammered
out. On the one hand, Delta’s stock could take off given its low
___________________
price and lack of other near-term catalysts. On the other hand,
___________________ some analysts contend that U.S. Airways could realize hundreds of
___________________ millions of dollars in synergies, and pick up assets (like airplanes
___________________
and facilities) that service several vital hubs on the cheap.
___________________ In any case, investors should look favourably upon airlines with
the ability to pursue an acquisition strategy. After all, it’s a
___________________
UP potential growth outlet that many underfinanced companies
simply don’t have.
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airline stocks. By using these seven tips, investors can be aware of ___________________
what to look for to keep their money from falling out of the sky.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Some airlines try to pass higher fuel costs on to their
___________________
customers in the form of a fuel …………………….
___________________
2. The higher the RASM number, the more
___________________
…………………….. the company is.
___________________
Summary ___________________
In this unit you have learnt about the roles of aviation industry ___________________
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which consists of the airlines and airport. The airlines are
essentials to transport the passenger and cargo from one point to
another point and are also a catalyst in the development of
Economic growth of the country. You have two major countries
China and India which have developed their aviation industry and
are poised to overtake the entire world including countries like
USA /Japan.
Though the aviation industry cannot survive with the support of
the government, still majority of the major airports and airlines of
the world are privately owned and many are doing well.
Airlines that service the busiest hubs tend to be the most
successful. So, investors should look favourably upon companies
with a major presence in hubs. Some examples of good hubs are
Chicago, Atlanta and Memphis - again because they are great
feeder airports and because they are centrally located to a variety
of destinations.
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Keywords
Fuel Hedging: Fuel Hedging is a contractual tool some large fuel
consuming companies, such as airlines, use to reduce their
exposure to volatile and potentially rising fuel costs.
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introducing a new product or production method into the market.
___________________
Privatization: It is the process of transferring ownership of a
___________________
business, enterprise, agency, public service or public property from
___________________ the public sector (a government) to the private sector, either to a
___________________ business that operate for a profit or to a non-profit organization.
___________________
Questions for Discussion
___________________
UP 1.
2.
What is aviation industry?
Discuss the evolution of aviation industry.
3. Give an overview of airports as a part of aviation industry.
4. What are the key developments in airport sector?
5. Explain airlines from the perspective of investors.
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
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Web Readings
http://www.investopedia.com/features/industryhandbook/airline.asp
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http://en.wikipedia.org/wiki/Aviation
UNIT 2: Air Transport System
Notes
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___________________
Air Transport System ___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction
UP
To fly with the birds has been man’s dream since Neolithic times.
Centuries of studies and experiments precede the first successful
flight. Only until the beginning of the 20th century have we
accomplished flight in a heavier-than-air craft. Throughout the
past century of evolution, aviation has acquired a responsibility
much greater than ever conceived. The utilization spectrum of
aviation extends from air combat and high-altitude surveillance to
more mundane functions like shipping mail and cargo. With such
versatility, aircraft have contributed to augmenting the fast paced
lives we already live.
Air transport has contributed to expansion of the global economy,
leisure activities, and influenced governments and industries to
diversify. The portrayal of aviation has impacted our society on
three stages: socially, politically and economically. Leonardo da
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Kitty Hawk, North Carolina. The inventors of ‘The Flyer’, the first
Notes heavier-than-air machine that actually flew under its power, were
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Activity
Visit___________________
your nearby air force Wilbur and Orville Wright, the Wright brothers. Orville made the
museum and prepare a first successful flight. Although their “air machine” flew for only
___________________
presentation on the history of
air transport. twelve seconds, the Wright brothers started a revolution that has
___________________
greatly affected the entire world. “The time will come when
___________________ gentlemen, when they are to go on a journey, will call for their
___________________ wings as regularly as they call for their boots.” – Bishop Wilkens
(Glaeser). With the success of the Wright brothers’ flight, powered
___________________
flight has undergone renovations that have made everyday flight
___________________ possible.
___________________
As time went on, the design and mechanics of the plane greatly
___________________ advanced, cockpits were built for the pilot and suggestions were
___________________ made to make the plane a weapon, which became a reality with
UP winged warfare in the First World War. Airplanes are used for a
variety of activities while travel is only one of them.
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Activity
the medium of air. ___________________
Prepare a chart with
diagrammatic representation
Check Your Progress of ___________________
Components of Air
Transport System.
Fill in the blanks: ___________________
___________________
1. ………………….. can fly to far-flung branches in a few
hours paving the way for international conglomerates. ___________________
___________________
Components of Air Transport System
___________________
UP
A system is a group of components that work together as a unified
whole. If one component changes in some way, the other
components must also change so that the system continues to
function effectively. If anyone component fails to work properly,
the whole system will be affected.
The components that make up the air transportation system are:
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Activity
Write___________________
a short report on the 3. Air navigation services are those services which monitor
developments in Air
___________________
Transport. and control the movement of aircrafts from one place to
___________________ another by managing the air traffic.
Technical Improvements
Technology has significantly extended the range of aircraft that
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___________________
Rising Affluence
___________________
The growth of air transport is highly correlated to income and
economic output growth. As the population of developed countries ___________________
___________________
Lower Airfares
___________________
UP
As a consequence of technical improvements, growing demands
and competition, airfares have been reduced considerably, making
air transportation affordable to the general public. This in turn
triggered additional passengers and airfreight demands.
Globalization
Trade networks established by multinational corporations imply
important movements of passengers and freight over the economic
space. About 40% of the value of global manufactured exports is
carried by air transportation (about 50% of the value of American
overseas – non-NAFTA – exports).
A key structural factor in the development of air transport
networks is the emergence of major hubs around which air traffic
converges. This trend is mainly the result of decisions made by
airline companies in the organization of their services.
improved ranges.
2. The growth of air transport is highly correlated to
…………………. and …………………. output growth.
Airport Customer Service
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Activity
The Next Generation Air Transportation System (NextGen) is the
___________________
Prepare a slideshow on
elements of NextGen. name given to a new National Airspace System due for
___________________ implementation across the United States in stages between 2012
___________________ and 2025. The Next Generation Air Transportation System
___________________
(NextGen) proposes to transform America’s air traffic control
system from an aging ground-based system to a satellite-based
___________________
system. GPS technology will be used to shorten routes, save time
___________________ and fuel, reduce traffic delays, increase capacity, and permit
___________________ controllers to monitor and manage aircraft with greater safety
margins. Planes will be able to fly closer together, take more direct
___________________
routes and avoid delays caused by airport “stacking” as planes wait
___________________
for an open runway.
___________________
UP To implement this, the Federal Aviation Administration (FAA) will
undertake a wide-ranging transformation of the entire United
States air transportation system. This transformation has the aim
of reducing gridlock, both in the sky and at the airports. In 2003,
The United States Congress established the Joint Planning and
Development Office (JPDO) to plan and coordinate the
development of the Next Generation Air Transportation System.
Elements of NextGen
NextGen consists of five elements:
1. Automatic dependent surveillance-broadcast (ADS-B):
ADS-B will use Global Positioning System (GPS) satellite
signals to provide air traffic controllers and pilots with much
more accurate information that will help to keep aircraft safely
separated in the sky and on runways. Aircraft transponders
receive GPS signals and use them to determine the aircraft's
precise position in the sky. These and other data are then
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of aircraft data link equipped, the exchange of routine ___________________
controller-pilot messages and clearances via data link will
___________________
enable controllers to handle more traffic. This will improve air
traffic controller productivity, enhancing capacity and safety. ___________________
4.
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enable better air transportation decision making.
System Wide Information Management (SWIM): SWIM
will provide a single infrastructure and information
management system to deliver data to many users and
applications. By reducing the number and types of interfaces
and systems, SWIM will reduce data redundancy and better
facilitate multi-user information sharing. SWIM will also
enable new modes of decision making as information is more
easily accessed.
5. NAS voice switch (NVS): There are currently seventeen
different voice switching systems in the NAS, some in use for
more than twenty years. NVS will replace these systems with
a single air/ground and ground/ground voice communications
system.
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Activity
___________________
Make a collage of different A number of different types of air transportation exist, both
types of Air Transportation. commercially and privately. Some of these types have been
___________________
developed over the course of decades or even centuries to meet the
___________________
needs of modern humans. Each different type is unique in the way
___________________ it achieves flight, the speed it travels and the sustainability of its
___________________ voyage. Many of the inventions have developed into large scale
industries. However, some methods are still in their infancy, or
___________________
they merely represent a small niche within the world of flight.
___________________
___________________
The first successful type of air transportation that carried humans
was the hot air balloon. The Montgolfier brothers developed the
___________________
UP idea of designing a large bag or balloon that held hot air in the late
1700s. Passengers and the heat source were placed in a gondola or
wicker basket underneath the balloon. Since hot air rises, the
balloon flew according to the direction of the wind. By cooling the
balloon's temperature, the passengers safely floated back to earth.
Today's hot air balloons use almost the same technology; however,
they are able to design the balloons into nearly any shape
imaginable.
Blimps
An offshoot of the hot air balloon is the blimp. Blimps have been
around since the end of the 19th century and were first used as
scouting tools by various militaries. The technology has developed
into a convenient and cost-effective way to travel and advertise
products. To float, blimps use hot air and large fans attached to the
gondola underneath. They can be deflated for storage or
transportation and inflated cheaply when service is needed.
)
Zeppelins
Zeppelins were built in the early 20th century, based on designs by
Count Ferdinand von Zeppelin. Visually, zeppelins appear very
much like blimps. However, they differ on two key points:
zeppelins have a metal skeleton with a rigid covering, and they are
filled with hydrogen. These two elements made zeppelins much
UNIT 2: Air Transport System
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machine to practice bombing runs. Through the successive ___________________
decades, zeppelins were used in the first commercial airline
___________________
service, ferrying passengers from Germany to the Americas.
Unfortunately, the zeppelin industry was destroyed by the public ___________________
Airplanes ___________________
Helicopters
With the success of the fixed-wing aircraft, engineers and
technicians looked for a way to make the general principles of
airplanes, sustained and fast flight, more efficient. The goal was to
develop a flying vehicle that could take off from a sitting position
and carry people to another location. This invention is the
Airport Customer Service
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___________________ top of the machine, and achieve lift, pulling the body of the
helicopter along. Designs for the helicopter had been conceived as
___________________
far back as the 1480s, with Leonard da Vinci. However, it wasn't
___________________
until the early 1900s that individuals created working models. The
___________________ post-war era saw the birth of the helicopter industry. However,
___________________ most models can only carry four to six people, limiting its
commercial use. The primary applications for helicopters are in the
___________________
military, law enforcement, medical, news or fire control sectors.
___________________
___________________
The mid-1900s saw the birth of a new type of air transportation:
the personal vehicle. Individuals invented autogyro, gliders and jet
___________________
UP packs for the purpose of transporting a single person from one
place to another. Some of the earliest styles of helicopters were
single-seat vehicles. This was the inspiration for the autogyro. The
autogyro uses elements from both fixed-wing and rotary aircraft in
order to fly. The lift is supplied by a rotor positioned on the mast.
The stability and power for flight is achieved by a rear propeller
and a set of wings. Gliders use no power to control flight. They
simply use the stability of fixed-wings to soar through the air. The
controller can move flaps on the wings in order to hit updrafts that
keep the vehicle in the air. A jet pack is a device that is generally
strapped to the back and releases a powerful blast of gases that
allow the user to fly. These devices are very inefficient, as most
models can only contain enough gases to sustain flight for a few
minutes.
Rockets
Perhaps the most advanced form of air transportation comes in the
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upper atmosphere. These vehicles are used for both public and ___________________
private enterprises.
___________________
___________________
Summary
___________________
UP
Air transport has contributed to expansion of the global economy,
leisure activities, and influenced governments and industries to
diversify. The four components of the air transportation system are
– air-lines, airports, air navigation services and civil aviation
authorities – each play a crucial role in the transportation of
passengers and goods by air.
The growth of air transport is highly correlated to income and
economic output growth. The Next Generation Air Transportation
System (NextGen) proposes to transform America’s air traffic
control system from an aging ground-based system to a satellite-
based system.
A number of different types of air transportation exist, both
commercially and privately. Some of these types have been
developed over the course of decades or even centuries to meet the
needs of modern humans.
)
Keywords
Hot Air Balloon: The hot air balloon is the oldest successful
human-carrying flight technology.
Blimp: A blimp, or non-rigid airship, is a floating airship without
an internal supporting framework, or a keel.
Airport Customer Service
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German Count Ferdinand von Zeppelin in the early 20th century.
___________________
Airplane: An airplane is a powered fixed-wing aircraft that is
___________________
propelled forward by thrust from a jet engine or propeller.
___________________
Air Navigation Services: These are those services which monitor
___________________ and control the movement of aircrafts from one place to another by
___________________ managing the air traffic.
___________________
___________________
Questions for Discussion
___________________ 1. Discuss the history of air transport.
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
Kossmann, Mario,(2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
Web Readings
http://en.wikipedia.org/wiki/Next_Generation_Air_Transportation_
)
System
http://www.ehow.com/about_4813389_different-types-air-
transportation.html
(c
UNIT 3: Airlines
Notes
ES
Activity
Visit___________________
your nearby Air India
Airlines office and prepare
___________________
presentation on various
a
___________________
Introduction
___________________
UP
Airlines are companies that provide scheduled flights for
passengers and cargo. They vary widely in size from small
companies with only one airplane to large ones with hundreds of
airplanes. Regardless of size, an airline is a complex business.
Each major airline employs a large contingent of people to ensure
its airplanes are as safe and its operations are as economical as
possible. The public is aware of pilots and flight attendants but
there are many other people working to keep airplanes flying
safely and profitably. Maintenance staff carries out the many
inspections and repairs essential to ensure airplanes stay in as
good a condition as when they were purchased. Ground crews keep
the cabins clean, provide supplies for the passengers, load cargo
and luggage and refuel the airplane.
Flight dispatchers compute airplane performance, plan flights,
monitor progress and provide support. Support staff sells tickets,
market the airline, liaise with the public, develop schedules and
)
Activities of Airlines
Airline key activities include: maintaining airplanes, training
flight crew and ground crew, making passenger reservations,
scheduling flights, booking cargo space, handling cargo and
dangerous goods in addition to operating airplanes safely and
according to schedule. These are further explained as below:
Airport Customer Service
Airplane Maintenance
Notes
ES
Airplane maintenance is an essential activity of airlines. Its goal is
___________________ to ensure airplanes are working and safe for flight. When
___________________ manufacturers deliver new airplanes, they provide extensive
documentation which tells the airline how to keep them in as good
___________________
a condition as when they were delivered. An airplane that is safe
___________________
for flight is called “airworthy”. The ongoing maintenance of an
___________________ airplane is to ensure continuing airworthiness. Every airplane is
___________________ subject to a maintenance program that ensures maintenance is
done at regularly scheduled intervals. This is very strictly
___________________
controlled by the regulatory authorities. It is a credit the
___________________ maintenance systems that technical failures contribute to only 4%
___________________ of modem turbo airplane accidents. One of the challenges for
airlines is to schedule airplane maintenance so that it does not
___________________
UP interfere with flight scheduling.
Training of Crew
Training flight crews is another essential activity of airlines. There
are thousands pilots working for major airlines. Each pilot must
hold an airline pilot license which requires years of training and
experience. Airline pilots also have to meet competency
requirements for each type of airplane flown. For example, a pilot
may be allowed fly a Boeing 747 because he has been trained on
that type of airplane, but he may not qualified to fly an Airbus 340.
Each airplane type requires extensive ground school simulator
training as well as a competency check carried out by the
regulator. Just airplanes must be continuously maintained; pilots
must continuously train and be certifying on the airplanes they
will be flying. Flight attendants are trained to ensure cabin safe
procedures such as stowing of luggage and fastening seat belts are
followed and the airplane is evacuated very quickly using the
)
Servicing Airplanes
Airlines employ large numbers of staff to service airplanes on the
ground. They are called “ground crew”. They fuel airplanes, clean
the cabin between flights, and load and unload luggage and cargo.
Sometimes airlines contract out some of these tasks to specialist
companies that provide such services at many airports.
UNIT 3: Airlines
Cargo Handling
Notes
ES
Cargo Handling Service means loading, unloading, packing or
unpacking of cargo and includes cargo handling services provided ___________________
by airlines through special aircrafts. These also include handling of ___________________
dangerous or fragile goods, perishables and live-stock.
___________________
……………… intervals.
2. Each pilot must hold an airline pilot ……………….
which requires years of training and experience.
Airport Customer Service
Operations of Airlines
Notes
ES
Activity There are different types of airline operations. Airlines can be
___________________
Write an article on Operations
of Airlines.
scheduled, which means they operate on the basis of a published
___________________ schedule. They can be non-scheduled, which means that they fly
___________________ when required. An example of a non-scheduled airline is one
___________________
providing flights for tour companies that plan trips to specific
destinations. In such a case, travel agencies charter (rent)
___________________
airplanes and schedule flights.
___________________
Airlines may operate smaller types of airplanes such as small jet
___________________ airplanes known as “regional jets” or turbo-prop airplanes. These
___________________ usually fly between smaller cities or from a small city to a large
___________________
one. They are known as “commuter airlines”. If they link a small
community to a large airport with long range flights, they are
___________________
UP sometimes call “feeder airlines” because they “feed” the large
airport.
The biggest airlines operate very large jet airplanes across
continents. These are known as “major carriers” or “international
airlines”. Sometimes large airlines operate commuter airlines as a
subsidiary operation. Airlines try to use as few types of planes as
possible because it simplifies maintenance and pilot training.
However it is impossible to have only one airplane model because
each plane is designed for a specific kind of operation - short or
long range, medium or high capacity. Airlines fly different types of
routes and use the most efficient model of airplane for each route.
Low-cost airlines, also known as no-frills airlines, offer lower fares
and fewer amenities for passengers. They reduce their operating
costs by cutting out features such as fancy meals, alcoholic
beverages and even reserved seats. They rely on increased staff
productivity and lower salaries, as well as very flexible work rules
)
to use smaller airports which are less crowded and charge lower
user fees than major airports and thus reduce delays caused by
high traffic. Low-cost airlines have been particularly successful in
the United States and Europe.
Alliances between airlines benefit the customers by providing an
extended network of routes as well as more efficient routing.
UNIT 3: Airlines
ES
Activity
offices, maintenance and operational facilities, in addition to Find___________________
out the name of caterer
sharing operational staff such as ground handling and check-in providing meal service to any
airline. Visit them and prepare
___________________
personnel. On the other hand the lack of competition on specific a short report on their
routes may give rise to higher prices. Flight frequency may be services.
___________________
Airline Meal
An airline meal or in-flight meal is a meal served to passengers on
board a commercial airliner. These meals are prepared by airline
)
ES
restrictive diets. These must usually be ordered in advance,
___________________
sometimes when buying the ticket. Some of the more common
___________________ examples include:
___________________ Cultural diets, such as French, Italian, Chinese, Japanese or
___________________ Indian style.
___________________ Infant and baby meals. Some airlines also offer children's
meals, containing foods that children will enjoy such as baked
___________________
beans, mini-hamburgers and hot dogs.
___________________
Medical diets, including low/high fibre, low fat/cholesterol,
___________________
diabetic, peanut free, non-lactose, low salt/sodium, low-purine,
___________________ low-calorie, low-protein, bland (non-spicy) and gluten-free
___________________ meals.
UP Religious diets, including kosher, halal, and Hindu, Buddhist
and Jain vegetarian (sometimes termed Asian vegetarian)
meals.
Vegetarian and vegan meals. Some airlines do not offer a
specific meal for vegetarians; instead, they are given a vegan
meal.
Summary
)
ES
class of travel. ___________________
___________________
Lesson End Activity
___________________
Study the key activities of any two airlines of your choice and
___________________
compare them. Prepare a brief report based on your conclusions.
___________________
___________________
Keywords
___________________
Airline Meal: An airline meal or in-flight meal is a meal served to
___________________
passengers on board a commercial airliner.
___________________
Ground Crew: The ground crew is the support crew supplying the
aircraft with fuel and maintenance, as opposed to the aircrew. ___________________
UP
Alliance: Alliance is a connection based on kinship, marriage, or
common interest; a bond or tie.
No-frills Airlines: No-frills airlines are airlines that offer low
fares but eliminate all non-essential services, such as
complimentary drinks snacks, in-flight entertainment systems,
business-class seating etc.
Training: Training is the acquisition of knowledge, skills, and
competencies as a result of the teaching of vocational or practical
skills and knowledge that relate to specific useful competencies.
airline.
4. What are the major operations of airlines?
(c
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Airport Customer Service
ES
Culture: The Seven Service Elements of Customer Success, IAP
___________________
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
___________________
Aviation, Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://en.wikipedia.org/wiki/Airline_meal
___________________
___________________
http://www.happycow.net/travel/air_travel.html
___________________
___________________
___________________
___________________
) UP
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UNIT 4: Airports
Notes
ES
Activity
___________________
Prepare a PPT presentation
Airports giving an overview of your
local___________________
airport.
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction
UP
Airports are points of arrival and departure for all airlines. The
facilities they provide are crucial to the smooth functioning of the
air transportation system. They must consider the requirements of
airlines and also meet the needs of passengers and cargo shippers.
Airports vary widely in size. There are small local airports, with
very little traffic, which may serve only non-commercial aviation.
At the other extreme are large international airports which are
mostly used by airlines. International airports have customs,
immigration and health services to accommodate international
arrivals and departures. International flights must land and take
off at international airports.
Overview of Airport
On one side of an airport are the aprons where airplanes are
)
parked and runways from which airplanes take off and land. This
is airside, the operational area where airplanes are loaded or
unloaded, and passengers transfer from the terminal building to
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Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________ Source:http://www.visualisation.mottmac.com/files/page/193344/Pulkovo_Airport_Cam_03_
Microsite_Large.jpg
___________________
UP Figure 4.1: Aprons and Runways
Definition
Airport is a terminal facility that functions as an interface between
air and surface vehicles. It is a processing centre providing the
necessary facilities for ticketing, documentation and control of
passengers and cargo (Ashford N. Martin – Stanton, H.P and
Moore CA, 1984).
)
ES
The main economic feature of an airport is a multi-product nature of
activity. It is a system which serves a wide range of needs related to ___________________
the movement of people and goods worldwide. It depends on four ___________________
elements, viz., passengers and goods, its physical, social and
___________________
economic environment, acts as a productive and business generator
unit and the agents which operate in it – mainly airlines and ___________________
franchise of commercial services (Prof Ofelia Betancor & Prof Robert ___________________
Rendeiro, 2001). Airport industry is undergoing a transformation
___________________
globally from being a poorly managed public utility to a highly
___________________
commercialized centre. The goal of airport administration from the
prospective of the city is generally economic development or at the ___________________
least aggregate passenger utility maximization. ___________________
___________________
Happenings at Airport
UP
Following are some of the happenings that usually take place at an
airport:
Scheduling boarding gates for airplane traffic is very complex
and most of the airports use a computerized system for this
purpose. At large international airports where there is a
mixture of large and small airplanes and often more than one
terminal, managing the apron is a complicated task requiring
constant attention.
Runway maintenance is extremely important for the safe
operation of airplanes. They must be kept clean and free from
cracks or potholes. If the airport is subject to snow and ice,
their removal is required to keep the runways opened. This
requires expensive and complex equipment as well as trained
staff.
Lights and markings must be maintained so pilots will not
)
ES
Activity
___________________
Make a chart of various Baggage handling procedures are designed to ensure that
functions of airport.
___________________ items are loaded on the right airplane before take-off and sent
___________________ to the retrieval area after landing. This is also computerized at
most airports with a system of conveyor belts and bar code
___________________
readers which direct luggage (hopefully tagged properly) to the
___________________ cart which will go to the right airplane.
___________________ In the terminal, airport operators are challenged to make the
___________________ transition from the city side of the terminal to the airplane as
___________________
smooth and efficient as possible. This is called facilitation. All
departing passengers and luggage must go through security
___________________
checks. The luggage check is done by x-ray machines. Security
___________________ checks of passengers have become very strict since the recent wave
UP of terrorist activity. Consequently airport operators find it
challenging to balance their facilitation objectives with security
measures.
Functions of Airport
Airport functional activities can be classified into three different
groups, viz.
1. Essential operational services and facilities,
)
Contd…
UNIT 4: Airports
ES
Telecommunications Luggage & Freight Restaurants & Bars
Loading & Unloading ___________________
Airside Management
Terminal Management
Cargo Management
Airport Information
Technology Management
ES
functions of Runway, Apron and Taxiway, Gate Management,
___________________ Vehicular discipline and Allocation of Bays for aircraft in the
___________________ terminal.
ES
optimal use of airport …………………… Activity
___________________
Prepare a presentation on
terminals at New Delhi Indira
Airport Terminals ___________________
Gandhi International Airport
with text and images.
An airport terminal is a building at an airport where passengers ___________________
Passenger Terminal
Airports are organizations or institutions of a different order. They
)
ES
___________________ aircraft, from runways to maintenance facilities, from fire
protection to air traffic control.
___________________
1 billion to US $ 2 billion.
International air cargo is categorized into Export and Imports goods.
Air cargo terminal is used for processing import, export,
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ES
Activity
Another classification of terminals can be: ___________________
Prepare a slideshow on the
economic impact of
___________________
privatization of airports.
Satellite Terminal
___________________
A satellite terminal is a building detached from other airport
___________________
buildings, so that aircraft can park around its entire
circumference. The first airport to use a satellite terminal was ___________________
London Gatwick Airport. It used an underground pedestrian ___________________
tunnel to connect the satellite to the main terminal. This was also
___________________
the first setup at Los Angeles International Airport, but it has
since been converted to a pier layout. The first airport to use an ___________________
Semicircular terminals
UP
Some airports use a semicircular terminal, with aircraft parked on
one side and cars on the other. This design results in long walks
for connecting passengers, but greatly reduces travel times
between check-in and the aircraft. Airports designed around
this model include Charles de Gaulle International Airport
(terminal 2), Chhatrapati Shivaji International Airport, Mumbai
(terminal 2), Dallas/Fort Worth International Airport, Seoul's
Incheon International Airport, Toronto Pearson Airport, Kansas
City Airport and Sapporo's New Chitose Airport.
ES
___________________ have major budgetary constraints.
___________________ Airports and airlines have historically been considered as essential
___________________ components of the national aviation system, and hence both were
regarded as public utilities. Due to this approach, operational and
___________________
handling activities were contemplated as being fundamental for
___________________ the development of the airport business, and commercial activities
___________________ had a less important role to play. For that reason, airport assets
and property have always been publicly managed and commercial
___________________
activities have occasionally been contracted or outsourced to
___________________
private companies. Within such a framework, economic regulation
___________________ was seen as superfluous.
___________________ The traditional airport management model becomes visibly
UP unsustainable when most governments begin to be concerned
about the burden of airport financing and its lack of efficiency.
However, for many years, a majority of airports around the world
have continued to operate under this model and some still remain
attached to it. Since the 1980s, the industry started to evolve with
changes being brought about in the traditional airport
management model. Currently, governments are progressively
regarding airports as potential profit-making enterprises rather
than merely considering them as part of the infrastructure
suppliers.
There are three main potential economic gains obtained from
privatization:
Improvements in operating efficiency (the private for-profit
business model more often leads to a further exploration for
means to cut costs and boost revenues than public
management),
)
ES
Activity
imposed by airport users over non-users or other users, generated ___________________
Write an article for a
by the provision of airport services or strengthened market newspaper on the effect of
___________________
globalization on airports.
position gained by the airport operator after privatization should
be carefully considered. ___________________
Effect of Globalization
Although globalization has had little effect besides increasing their
traffic flows, a handful of global airport operators could be
managing most of the world’s airports within the foreseeable
future. Major airport operators may propose to expand their
business to other locations and other countries in response to calls
for tenders from governments wishing to involve the private sector
in ownership, management and operations of airports.
Issues
)
The major issues that airport operators must deal with today are
airport capacity, facilitation, security, and safety.
Capacity
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ES
___________________ may be numerous airplanes waiting for departure clearance thus
taking up boa; gates required by arriving airplanes. Connecting
___________________
flights may have to be delayed in to accommodate late passengers.
___________________
This will affect the air navigation system which copes with
___________________ changed flight plans and crowded airspace.
___________________ Access to and from the terminal on the landside must also be able
___________________ to handle peak for arriving and departing passengers. The
terminal building itself may also present capacity. Issues if it
___________________
cannot accommodate the flow of passengers efficiently.
___________________
___________________ Facilitation
___________________ Aspects to be considered in preventing undue delays to passengers
UP are:
Verification of travel documents and visas.
Customs clearance of passengers and cargoAir terminal
signage.
Baggage handling facilities.
Access for disabled persons.
Contagious diseases (such as SARS).
IATA has initiated a program called “Simplifying Passenger
Travel” (SPT). Its objective is to improve the passenger travel
experience by replacing repetitive checks of passengers and their
documents with a new streamlined system that will collect
information only and share it electronically. Pilot projects have
begun in Holland, the United Kingdom, Australia, Canada and
Japan. Adoption of this technology means that most people avoid
)
Security
Aviation security is defined by ICAO in Annex 17 as a combination
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ES
ground personnel and the general public against acts of unlawful. ___________________
Safety ___________________
___________________
Safety is a condition that is free of risk. ICAO has established a
certification program to ensure that minimum safety standards are ___________________
met at airports. Responsibility for enforcing these standards ___________________
belongs to regulatory authorities within each nation. ICAO has
___________________
also specified time lines for meeting certification requirements. In
the future, airlines may refuse to fly into uncertified airports. This ___________________
Summary
In this unit you have learned that there are many types of airports
and that the larger ones are often international airports. There are
many activities going on at airports in order to make sure
airplanes come and go efficiently. In the past most airports were
owned and operated exclusively by the government but many are
now operated by other organizations including private companies.
The privatization trend continues around the world. Airports must
)
deal with capacity issues as traffic increases. They are also faced
with the problem of balancing the speed of passenger processing
while meeting strict requirements for security checks. ICAO is
concerned with safety at airports and now requires that all
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Keywords
Notes
ES
Concourse: A large open area inside or in front of a public
___________________
building, as in an airport.
___________________
Terminal: A station at the end of a transportation line or at a
___________________
major junction on a transportation line. The terminal is composed
___________________ of freight and passenger transit infrastructures as well as
___________________ infrastructures for plane accommodation.
Further Readings
(c
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
UNIT 4: Airports
ES
Aviation, Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://www.icao.int/sustainability/CaseStudies/India.pdf
___________________
http://www.scribd.com/doc/82865393/Airport-Functions ___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 5: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: Transfer Passengers’ Perceptions of Airport
Service Quality of Incheon International Airport ___________________
___________________
Airport passengers can be divided into different groups such as
departing, arriving and transfer passengers. Each of these groups ___________________
will have a different set of needs and wishes when they use
different facilities at the airport. For example, transfer ___________________
UP
passengers have discretionary time waiting and they will likely to
value their experience in airport facilities differently compared to
origin and destination passengers. The needs of transfer
passengers are quite different from those of origin and destination
passengers. After deregulation and privatization, many large
international airports have served as hubs for transfer passengers
therefore the importance of transfer passengers have been
increased. Thus, understanding and catering for the specific
needs of transfer passengers are fundamental in achieving growth
in today’s competitive airport environment. Here the effect of
airport service quality on the transfer passenger traffic of Incheon
International Airport (IIA) is explored by examining a conceptual
model that considers airport service quality as well as a number
of other factors that simultaneously influence transfer passenger’s
behavior.
Service quality is customer’s long-term, cognitive evaluations of a
firm’s service delivery. Customers compare what they expect to
get with what they actually receive during the postpurchase stage
of the service purchase process. Before customers purchase a
service, they have an expectation about service quality that is
based on individual needs, past experiences, word-of-mouth
)
ES
positioned in a market filled with look-alike competitive offerings.
___________________
Improving the quality of manufactured goods has become a major
___________________ strategy for both establishing efficient, smoothly running
operations and increasing demanding higher and higher quality.
___________________ Providing high quality service and ensuring customer satisfaction
are widely recognized as important factors leading to the success
___________________
of the various service industries. It is commonly believed that
___________________ higher service quality can lead to a customer’s higher overall
satisfaction and subsequently to positive behavioral intentions.
___________________ Like other service industries, service quality is an important issue
in the airport management. The overall airport’s experience
___________________
perceived and recollected by international travellers may have a
___________________ significant impact in promoting or discouraging future
international tourism and business activities in the corresponding
___________________ country. Thus, the evaluation of passenger satisfaction levels on
airport services has become an important issue for airport
___________________ management.
UP Customers experience various level of satisfaction or
dissatisfaction after each service experience according to the
extent to which their expectations were met or exceeded. Because
satisfaction is an emotional state, their postpurchase reactions
can involve anger, dissatisfaction, irritation, neutrality, pleasure,
or delight. The importance of customer satisfaction cannot be
overstated. Without customers the service firm has no reason to
exist. Every service business needs to proactively define and
measure customer satisfaction. Companies who command high
customer satisfaction ratings seem to have the ability to insulate
themselves from competitive pressures, particularly price
competition. Past research studies have suggested that
perceptions of service quality affect feelings of satisfaction, which
then affect loyalty and post-purchase behaviors. Satisfaction is
perceived as being an important mediator of store loyalty drivers.
Customer satisfaction has always been considered an essential
business goal because it was assumed that satisfied customers
would buy more. Recently, the evaluation of passenger
satisfaction levels on airport services has become an important
issue for airport management to understand their consumers and
in designing their marketing strategies.
)
Questions:
Notes
ES
1. Study and analyse the above case.
2. Write down the case facts. ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 6: Airline Industry
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-II
)
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Airport Customer Service
Detailed Contents
Notes
ES
UNIT 6: AIRLINE INDUSTRY
___________________ UNIT 8: CARGO TRANSPORT
Introduction Introduction
___________________
Overview of Airline Industry Air Cargo
___________________
Scope of the Airline Industry Cargo Handling Operations
___________________
Airport Operations Documentation and Control
___________________
Types of Airline Service Apron Cargo Handling
___________________
Passenger Travel
UNIT 9: AIRLINES TERMINOLOGY
___________________
UNIT 7: AIRLINES MANAGEMENT Introduction
___________________
Introduction Terms used in Airlines
___________________
Concept of Airlines Management Cabin Crew
___________________
) UP
Challenges of Airline Management
Notes
ES
Activity
___________________
Write a report on airline
Airline Industry industry, giving an overview.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
UP
What do you mean by the airline industry? What does it include?
What types of services are provided? Who is involved? These are
some of the questions that are addressed in this unit. You will also
learn about the role of the airlines as a stimulant for global
employment, and how air transportation has been a positive
influence in world development. This unit will introduce you to
basic concepts that will serve as the foundation for the rest of the
units.
Few inventions have changed how people live and experience the
world as much as the invention of the airplane. During both World
Wars, government subsidies and demands for new airplanes vastly
improved techniques for their design and construction. Following
the World War II, the first commercial airplane routes were set up
in Europe. Over time, air travel has become so commonplace that it
would be hard to imagine life without it. The airline industry,
)
ES
___________________ transport are: the automobile, followed by buses, air, and railways.
On the other hand, the most widely used modes of freight
___________________
transport, for moving goods or cargo are: sea, followed by road,
___________________
railways, oil pipelines, inland navigation and air freight.
___________________
Modes of transportation have common features. For example, they
___________________ each require an infrastructure, including transport networks and
___________________ nodes or terminals; vehicles as the means of transportation; and
operations to control the transportation systems. In the case of
___________________
airlines, we refer to the transport networks as the airways, and the
___________________
terminals as airports. The vehicles used are different types of
___________________ airplanes. Air traffic control refers to the operations used to control
___________________ air transportation. You will learn more about these specific terms
UP later in the course.
An airline’s basic function is to transport people and goods from
one location to another using the airways. The airline industry
consists of organizations providing this service for passengers
and/or cargo. An airline company owns or leases large planes
generally referred to as commercial transport planes to supply this
service. Most of these planes are designed specifically to carry
passengers and some cargo. Other commercial transports are
designed to carry only cargo. The scale and scope of airline
companies thus range from those with a single airplane carrying
cargo, through full-service international airlines operating
hundreds of airplanes in their fleet.
Air transport provides the only global transportation network for
passengers and cargo, making it essential for global business
operations and for personal travel and tourism. It provides
substantial economic benefits by connecting people and businesses
)
ES
The airline industry itself is also part of another larger industry, Activity
___________________
Write an article for a magazine
the aviation industry, which refers to the range of activities
on the scope of Airline
involved in building and flying aircraft. These include aircraft ___________________
Industry.
manufacturing, airport operations and aviation support industries. ___________________
Airport Operations
Airport Operations refer to the ground facilities required for air
travel, including runways and navigation aids. While you may be
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familiar with larger airport facilities, many are small airfields that
are able to serve only light planes, helicopters or other specialized
aircraft such as seaplanes.
Aviation support industries provide a wide range of services and
supplies to airlines and airports. For example, some companies
supply fuel for airplanes; others furnish maintenance, or repair,
Airport Customer Service
ES
Activity
___________________
Discuss within your group the transportation, including van, shuttle or taxi services. Freight
operations of airport. forwarders organize arrangements for shipping air cargo. There
___________________
are specialized professional industries providing a variety of
___________________
services such as: flight insurance and weather information, to
___________________ name a few.
___________________ Travel agents are an important contributor to the airline industry.
___________________ The formal part of their responsibilities includes being authorized
to sell and issue airline tickets. Accredited agents accept payments
___________________
from customers on behalf of the airlines whose tickets are issued.
___________________
It is essential that customers and airlines can rely on those agents
___________________ for tickets to be issued according to the required standards, and for
___________________ payments to reach the airlines in a timely manner.
UP Agents work hard on behalf of the consumer. The role of a travel
agent is to make the process of going on a trip - whether for
business or pleasure - a stress-free and memorable experience.
Travel agents spend time not only searching for affordable prices
and booking tickets, but also personalizing their services for
individual clients.
An even bigger picture of supporting industries includes the
hospitality service industries, such as hotels, car rentals, tourism
agents and cruise operators who attend to the needs of air
travelers once they reach their destinations.
Scheduled Flights
Notes
ES
Scheduled flights take place using predetermined routes according
to a planned timetable. These timetables refer to regular, ___________________
136 countries. According to the latest lATA statistics, in 2004 there ___________________
were more than 1.9 billion scheduled passengers and 39.5 million ___________________
UP
tons of cargo transported, of which 25 million tons were
international.
Scheduled airlines are considered to be a category of civil aviation,
representing all types of non-military aviation, and which includes
both private and commercial aviation. The other major category of
civil aviation is general aviation, including all other flights, private
or commercial. For the public, the most visible part of civil aviation
is scheduled air transport, but in fact, the vast majority of flights
operate under general aviation. From a global perspective, there
are over 900 airlines worldwide with an Air Operating Certificate,
which means they have been legally certificated to operate an
airline.
The airlines that provide scheduled flight service can be
categorized as: major airlines, low cost carriers or regional airlines.
Major Airlines
)
Major airlines are usually those large airlines that connect the
major cities of the world. These airlines have the capability to
handle international destinations and fly just about anywhere in
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ES
___________________ than their competitors. The term has since come to define any
carrier with low ticket prices and limited services regardless of
___________________
their operating costs.
___________________
Non-Scheduled Flights
Non-scheduled flights are typically charter flights for travelers who
want to hire a plane to fly to a specific place at a specific time. A
charter airline operates these flights that take place outside
UNIT 6: Airline Industry
ES
As mentioned previously, most passenger travel takes place on ___________________
scheduled flights, which are made over certain routes according to ___________________
a published timetable. Non-scheduled flights are mainly charter
___________________
flights for customers who want to hire a plane to fly to a particular
place at a particular time. ___________________
___________________
Air charter service is a growing part of the airline industry.
Markets for these services include athletic teams, corporations and ___________________
government agencies. Charter airline companies can be found all ___________________
over the world. They tend to be cooperatively linked in a worldwide
___________________
contact group allowing a company to help with contacts or
arrangements anywhere in the world through their associates. ___________________
___________________
UP
With chartered aircraft, a passenger may have access to many
more airports than with scheduled flights. In Europe, for example,
there are over 2,000 airports, but only 10% are reached by
scheduled airlines. There are over 5,000 airports across the United
States; the scheduled airlines, however, serve roughly 4% of them.
Passenger Travel
Notes
ES
Activity
There are essentially two main types of air travelers, those who
Make a slideshow on the
___________________
categories of passenger travel for business and those who travel for pleasure, that is, the
travel.
___________________ leisure market:
___________________
Business Travel
___________________
The business market consists of those passengers who need to
___________________
travel for the purpose of attending work-related meetings, visiting
___________________ clients or otherwise expanding and supporting the financial
___________________ objectives of their business concerns. The rapid growth of world
trade in goods and services, as well as global investment, and the
___________________
relative ease of air travel, have all contributed to the growth of
___________________
business travel. Companies have become increasingly globalised
___________________ with customers, supply and production chains located all over the
UP world. This, in turn, has spurred travel growth as managers have
been required to oversee these dispersed business ventures and
visit their customers. Business, or “corporate”, aviation refers to
the transportation of passengers, as well as cargo, for business
purposes.
Some corporations have travel requirements extensive enough to
justify owning their plane and having crew on staff. Others will opt
to charter for their corporate needs. Companies use these planes,
on an as needed basis, to fly their executives, managers,
salespeople and other employees to meetings which are out of
town. This provides a high convenience factor, allowing for greater
efficiency. This type of executive travel mainly uses the facilities of
smaller airports.
Leisure Travel
The leisure market, on the other hand, consists of passengers who
)
ES
is continual growth in the international tourist market. ___________________
___________________
1. Companies have become increasingly ….……………..
with customers, supply and production chains located ___________________
all over the world. ___________________
2. There is continual growth in the international ___________________
….…………….. market.
___________________
___________________
Summary
___________________
UP
An airline’s basic function is to transport people and goods from
one location to another using the airways. The airline industry
consists of organizations providing this service for passengers
and/or cargo. It is itself part of another larger industry, referred to
as the aviation industry, which includes the range of activities
involved in building and flying aircraft. These include aircraft
manufacturing, airport operations and aviation support industries.
The two main types of airline service are scheduled flights and
non-scheduled flights. Scheduled flights take place using
predetermined routes according to a planned timetable. Non-
scheduled flights are typically charter flights for travelers who
want to hire a plane to fly to a specific place at a specific time.
The airlines that provide scheduled flight service can be
categorized as major airlines, low cost carriers or regional airlines.
Major airlines are usually those large airlines that connect the
major cities of the world. Low cost carriers usually provide point-
)
There are essentially two main types of air travelers, those who
travel for business and those who travel for pleasure - the leisure
market.
Airport Customer Service
ES
Write a digital essay on business travel with text and images to
___________________
facilitate your explanation.
___________________
___________________
Keywords
___________________
Air Traffic Control: Air traffic control refers to the operations
___________________
used to control air transportation.
___________________
Airport Operations: Airport operations refer to the ground
___________________ facilities required for air travel, including runways and navigation
___________________
aids.
Further Readings
Books
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Web Readings
Notes
ES
http://www.investopedia.com/features/industryhandbook/airline.asp
___________________
http://www.columbia.edu/cu/consultingclub/Resources/Airlines_Eri
c_Henckels.pdf ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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(c
) UP
ES
UNIT 7: Airlines Management
Notes
ES
Activity
___________________
Write a short report on the
Airlines Management concept of airlines
___________________
management.
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
___________________
UP
Airline management practice has evolved significantly over the
past three decades. The development of this practice has
contributed to recent advances in computation and communication
technologies and, more importantly, the need to reduce costs and
increase revenues. Nowadays airlines seek to perform efficiently in
a competitive environment that only provides marginal profits. The
airline business is characterized as being one of the most complex,
involving multiple conflicting decisions that all need to be
optimized at the same time.
As in many mature industries, consolidation is a trend, as airlines
form new business combinations, ranging from loose, limited
bilateral partnerships to long-term, multi-faceted alliances of
groups of companies, to equity arrangements between companies,
to actual mergers or takeovers. Since governments often restrict
ownership and merger between companies in different countries,
we see most consolidation taking place within a country. In the
)
U.S., over 200 airlines have been merged, been taken over, or
simply gone out of business since deregulation began in 1978.
Many international airline managers are actively lobbying their
governments to permit greater consolidation, in order to achieve
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ES
___________________ kilometres. These airlines transport about to 2 billion passengers
yearly and 40 percent of Inter-regional exports of goods (i.e., by
___________________
value). Also, an estimated of 2.1 million people are employed by
___________________
airline or handling agents: like, as flight-crew, checking-staff and
___________________ maintenance-crew (ICAO 2006).
___________________ The airline services are categorized as intercontinental,
___________________ continental, regional, or domestic, and may be operate as
scheduled services or charters. In terms of the size, airlines differ
___________________
from those with a single airplane carrying mail or cargo, through
___________________
full-service international airlines operating many hundreds of
___________________ airplanes. In various parts of the world, the airlines are
___________________ government-owned or government-supported. In recent decades,
UP the trend has been to move toward independent, commercial public
companies by giving more freedom to non-government ownership
of airlines.
The ever-increasing number of commercial airline companies has
put more demands on their management to constantly seek profits,
reduce cost, and increase revenues. Increasing demand for air
transportation service has constrained airline management to take
benefit of the opportunities in different markets. At the similar
time, the increased competition among airlines necessitates that
airline management seek effectiveness in all the decisions to
promote their profit. It is no shock that many airlines throughout
aviation history have been incapable to remain in business, and in
number of cases, it is agreed that the downfall of these airlines has
been attributable to poor management.
The practice of airline management has evolved extensively over
the past three decades. The expansion of this practice has
)
ES
Activity
Therefore, these scientifically-based plans promise an easier Prepare a presentation on
___________________
decision-making practice for the airlines. The requirement for challenges of Airline
Management.
___________________
these tactics becomes more vital as the size of the airline increases,
and making the decisions based on individuals’ opinion or ___________________
Several tactics have been developed and used to better plan and ___________________
operate airlines. These tactics bank on scientific approaches ___________________
available in operations research and mathematics literature to
___________________
optimize airlines’ decision-making processes, and are usually
modeled within computerized systems that can automate decision ___________________
making. Therefore, these scientifically-based tactics promise an ___________________
easier decision-making practice for the airlines. The need for these
___________________
UP
tactics becomes more crucial as the size of the airline increases,
and making decisions based on individuals’ judgment or experience
becomes more difficult. The next section highlights the main
challenges of airline management that elaborate the complexity of
the airline decision-making process.
below:
Notes
ES
___________________
___________________
___________________
___________________
___________________
Figure 7.1: The Different Players in the Air Transportation Industry
___________________
Airport Agreements
Secondly, the airline management should consider all the
agreement terms carefully with the different airports they serve.
Various factors affect these agreements, including available
infrastructure (i.e., gates, runways, baggage handling, etc.),
expected traffic, airport charges and incentives, competition from
close by airports, available landing slots, delays and congestions,
and operational curfews.
Customer Requirements
)
Alliances
Fourthly, in several cases, an airline participates in one or more
alliances to enlarge its network coverage or share resources with
UNIT 7: Airlines Management
ES
for an airline to decide which alliance to participate in and how to ___________________
share its resources proficiently with each member in the alliance to
___________________
encourage profitability. Usually, the airline has to retain a certain
level of operating standards to serve within a worldwide alliance. ___________________
___________________
Suppliers
___________________
Fifthly, the suppliers are vital to the continuation of the airline’s
___________________
operation. Airlines depend on suppliers to provide significant items
such as aircraft, fuel, meals, employee uniforms, spare parts and so ___________________
on. Also, in many cases, airlines outsource the vendors for some of ___________________
their jobs and services, such as aircraft maintenance, aircraft
___________________
cleaning, ground handling, sales. Hence, an airline has to keep
___________________
UP
strong relationships with its suppliers to continue operating
fruitfully. Another unit in the air transportation industry that an
airline has to deal with is unions. The different groups of workers
form unions to achieve stronger negotiation authority with airline
management with respect to salary, benefits, or working rules. To
keep good relation with labour in order to guarantee the smooth
operation of the business is one of the main objectives of airline
management. The conflicts with unions might typically lead to
negative actions by the unions, such as strikes or slowdown of
work, which usually harm the operation of the airlines
significantly.
Unions
For flight professionals and the general public alike, one of the
most recognized parts of the airline industry is the strong union
presence among its professionals. Major international and national
airlines have been unionized for decades in order to protect flight
)
ES
airline industry before speaking of its virtues. The decline of labor
___________________ unions in the United States and North American countries has
___________________ made the airline union appear like it is fighting a losing battle
___________________
with public opinion. As well, the benefits of comradery amongst
union members have been weakened by increasing competition for
___________________
jobs in the airline industry. While the union advocates hard for
___________________ workers and businesses have obliged in the past, many airline
___________________ executives would rather concede optional health care plans and
other benefits than give up the big paydays that unions often push
___________________
for. Finally, the aforementioned problem of strikes among airline
___________________ unions can often make flight professionals look selfish and
___________________ unsympathetic.
___________________ However, the public should realize that unions have helped keep
UP flights in the air for years by averting greater labor strife. Indeed,
the airline unions are one of the last places in the American labor
landscape where successful negotiations are still a common
occurrence. Airline professional unions offer flight crews, pilots,
and attendants an opportunity to develop relationships with
colleagues in other companies while working toward competitive
salaries. As well, companies and the public should look at how the
union's bargaining power not only benefits flight professionals but
the overall business.
Unions are able to negotiate group health benefits for their
members, which helps the company save on providing more
expensive health options. The union-business relationship is not
one sided and while unions push for higher wages, the compromise
wages that are established in negotiations help keep experienced
professionals in the industry. The unionization of airline workers
benefits everyone involved but flight professionals need to be
)
Competitors
Finally, in the majority of market, there is tough competition
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ES
Like many other businesses, airlines management faces three
levels of interacting decisions. These levels, as shown in Figure 7.2, ___________________
include strategic, planning, and operations decisions. ___________________
___________________
___________________
___________________
___________________
___________________
Strategic decisions typically require a long lead time before
implementation and require a considerable monetary investment. ___________________
They are also expected to have a significant impact on the form of ___________________
UP
the airline in the long term. Examples of strategic decisions
include growth and expansion, fleet sizing (aircraft orders), hub
locations, merging with other airlines, alliance participation, and
location of maintenance facilities.
Planning decisions are within a few months horizon, and can be
defined as the process of efficiently using airline’s available
resources to maximize its revenue. The resources available to an
airline include the facilities and the personnel that operate the
business, including, for example, aircraft in different fleets, pilots
with different qualifications, flight attendants, maintenance
facilities, mechanics, gates, customer service agents, and ramp
agents. The planning decisions include forecasting the demand
between every origin-destination (OD), flight schedule
development, assignment of flights to the different aircraft fleet (if
the airline has more than one fleet type), aircraft routing across
the different airports with its maintenance consideration, planning
)
The operations decisions for the airlines are those decisions that
Notes need to be verified or updated on an hourly or maximally on a daily
ES
___________________ basis. They include, for example, the response to unanticipated
incidents such as adverse weather conditions, flights delays and
___________________
cancellations, aircraft breakdown, and absence of crew or staff due
___________________
to illness. Operations decisions also include watching revenues,
___________________ bookings, and anticipated demand levels in the different markets,
___________________ matching prices with competitors, and managing seat inventory on
each flight on a daily basis. Strategic decisions are expected to
___________________
impact on planning decisions, which, in turn, affect the operations
___________________ decisions.
___________________ In addition, there is a reverse feedback from the operations phase
___________________ to the planning phase, which also, in turn, may provide feedback to
the strategic decisions phase. For example, the observation of a
___________________
UP frequent delay of a certain flight waiting for its inbound aircraft
might alert schedule planning to alter the schedule of this flight to
give enough connection time for its inbound aircraft. Also, strong
demand forecasting in markets might call for a change in the
strategic plan regarding expansion and increase of fleet size. As
explained in the next section, this book covers in detail the tactics
currently practiced by airline management for the planning and
operations phase. Strategic decisions reconsidered to be beyond the
scope of this book.
Surrounding Events
The air transportation industry is characterized by the effects of
rapid and significant impacts from surrounding events and
economic and social changes. The negative impact on air
transportation of factors such as wars, civil unrest, terrorist
actions, increasing fuel prices, and epidemics has been clearly
observed in several areas across the world. These events
)
ES
For large air carriers, the number of flights reaches a few hundred ___________________
flights a day.
___________________
Operating each flight requires significant cooperation among
___________________
several groups of workers who all share the same objective of
making the flight ready for departure on time. There are about 12 ___________________
different groups who work on each flight before its departure. ___________________
These groups include pilots (cockpit crew), flight attendants (cabin
___________________
crew), maintenance crew, ramp agents, baggage-handling crew,
cargo agents, fueling agents, customer service agents, gate agents, ___________________
taxi in, park, and taxi out at the gate. Baggage handlers and cargo
agents transport, load, and unload baggage and other cargo to and
from the aircraft. Fueling agents provide fuel to the aircraft before
departure or at intermediate stops in the flight.
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ES
Activity
___________________
Write an article for a leading Check Your Progress
newspaper on the planning
___________________
and operations of airlines. Fill in the blanks:
___________________
1. The airline management must conform to the
___________________ regulations of the airline’s ……………… country.
___________________ 2. ………………….. agents help guide the aircraft to taxi
___________________ in, park, and taxi out at the gate.
Network Structure
Airlines are typically classified as scheduled airlines or charter
airlines. Scheduled airlines have a predefined flight schedule that
is published through designated channels. In this schedule, the
airline specifies the markets it flies to and the departure time and
capacity of each flight in the schedule. Charter airlines, on the
UNIT 7: Airlines Management
ES
Typically each scheduled airline has a predefined network ___________________
structure. Selecting a network structure is considered one of the ___________________
major strategic decisions of the airline. Most common network
___________________
structures include (1) hub-and-spoke, (2) point-to-point, or
(3) a combination of both. The hub-and-spoke network structure is ___________________
one in which the airline considers one or more stations in the ___________________
network to be its hub. Accordingly, any flight that is operated by
___________________
this airline either starts or terminates at one of those hubs. The
___________________
hub station is characterized by having numerous departures and
arrivals everyday for the airline. The spoke station has only a few ___________________
departures and arrivals each day. ___________________
This hub-and-spoke network structure gives considerable network ___________________
UP
coverage, enabling passengers to travel between any two cities
served by the airline by physically connecting through the hub(s).
Therefore, any flight in this network serves both local travellers
between the origin and the destination of the flight and connecting
passengers to and from other destinations.
For an airline adopting a hub-and-spoke network structure, to
allow for smooth and convenient passengers connection at the hub,
the arrivals and departures at the hub are adjusted in what is
known as time banks. A time bank consists of a set of flight arrivals
followed by a set of departures. Therefore, the time bank allows for
several connection possibilities during a short period of time.
In the point-to-point network structure, as the name implies,
airlines operate direct flights between cities. Therefore, the focus of
these airlines is to serve local traffic between these two cities, and
less attention is given to the connecting traffic beyond their
immediate destinations. Because the point-to-point airlines do not
)
ES
passenger counts on each flight in the schedule and also estimate
___________________ the possible changes in demand due to changes in schedule,
___________________ pricing, competition, and so on. The demand forecasting process
___________________
also estimates the airline share in each city-pair (OD market).
Aircraft Routing
Aircraft routing, as the name implies, means determining a route
for each aircraft. The route of an aircraft consists of a sequence of
flights and maintenance activities that extend over a few days (5–7
days). The flights are selected to ensure there is enough time
between them to complete an aircraft turn or a maintenance
activity. An aircraft turn is the time difference between the arrival
time of a flight and the departure time of the next flight. An
aircraft turn time should be long enough for deplaning passengers
of the inbound flight from the aircraft, unloading cargo and
baggage, cleaning the aircraft, boarding passengers of the
outbound flight, loading cargo and baggage, fueling, catering,
)
exchanging crew, and so on. At the same time, the aircraft turn
should not take long; long aircraft turns cause the aircraft to
remain idle or unused over long periods of time. Longer idle time
on the ground is expected to significantly dilute the revenue of the
(c
Crew Planning
It is important for the crew (pilots and flight attendants) to know
their travelling schedule ahead of time, so that they can plan their
other life activities accordingly. The crew’s work plan is typically
UNIT 7: Airlines Management
extended over a period of one month. During the month, the crew
member is classified either as a line crew or a reserve crew. A line Notes
ES
crew gets a sequence of predefined trippairs over the month. A ___________________
trippair represents a sequence of flights (segments), the first of
___________________
which originates from the home city (domicile) of the crew and the
last flight of which ends at the domicile. Efficient scheduling of the ___________________
During the planning phase, the scheduler must consider the ___________________
different facilities at the different airports, including gates and ___________________
baggage-handling facilities. The facilities at the airports should be
___________________
planned efficiently to accommodate the planned flight schedule
___________________
UP
economically. The processes of facility planning are more crucial at
the airline hub, where the airline operates many flights, and the
usability of each resource is critical. The scheduling of airport
facilities should take into consideration schedule disruptions that
typically result from adverse weather conditions. Airport staff
includes customer service agents, gate agents, baggage handlers,
and ground agents. Typically, this staff works on shifts of about
eight to ten hours every day. It is important for the airline to
position the adequate number of staff at the appropriate times to
operate the planned schedule economically and efficiently. The
airport staff should also be adequate enough to manage any
unplanned schedule disruptions at the airport due to adverse
weather conditions or any other unforeseen factors.
Revenue Management
Airlines apply advanced revenue management (RM) techniques to
maximize the revenue of their flights in different markets. RM is
)
defined as selling the right seat to the right customer at the right
price and at the right time. The idea behind RM is that travellers
have different characteristics and primarily have different
requirements for their travel. Basically, travellers can be classified
(c
times that usually span weekdays. They also tend to spend shorter
Notes periods of time at their destinations. They do not book their tickets
ES
___________________ far in advance and prefer flexible tickets that can be changed or
canceled to match any possible changes in their travel plans.
___________________
Leisure travellers, as the name implies, travel for recreational
___________________
purposes or to visit family or friends. These travellers are sensitive
___________________ to ticket prices. They also have flexible travel plans and tend to
___________________ spend longer periods of time, including weekends, at their
destinations.
___________________
ES
Fill in the blanks:
___________________
1. Planning starts by …………………. the anticipated
demand and supply. ___________________
Summary ___________________
___________________
UP
The airline services are categorized as intercontinental,
continental, regional, or domestic, and may be operate as
scheduled services or charters. In terms of the size, airlines differ
from those with a single airplane carrying mail or cargo, through
full-service international airlines operating many hundreds of
airplanes. Several strategies have been developed and used for
improved plan and manage airlines. The decisions of airline
management are extremely affected by these other players.
Planning decisions are within a few months horizon, and can be
defined as the process of efficiently using airline’s available
resources to maximize its revenue.
The hub-and-spoke network structure is one in which the airline
considers one or more stations in the network to be its hub.
Accordingly, any flight that is operated by this airline either starts
or terminates at one of those hubs. The point-to-point airlines can
also adjust arrivals and departures at one or more of their stations
to allow for a few possibilities of profitably connecting itineraries
)
Keywords
Lower Airfares: As a consequence of technical improvements,
growing demands and competition, airfares have been reduced
Airport Customer Service
ES
___________________ demands.
___________________ Time Bank: A time bank consists of a set of flight arrivals
___________________
followed by a set of departures.
___________________
Leisure Travel: Travel undertaken for pleasure, as opposed to
business travel. It is often used to indicate a trip of seven days or
___________________
longer, regardless of its purpose.
___________________
Business Travel: Business travel is the practice of people
___________________ traveling for purposes related to their work.
___________________ Crew: A crew is a body or a class of people who work at a common
___________________ activity, generally in a structured or hierarchical organization.
___________________
UP Questions for Discussion
1. What is meant by airlines management?
2. What is the impact of other competitors in the industry on
airlines?
3. Describe the network structure of airlines.
4. What do you mean by aircraft routing?
5. Explain the concept of revenue management in airlines.
6. How is planning done in airlines?
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
)
Web Readings
http://www.ashgate.com/pdf/samplepages/modeling_applications_in
_the_airline_industry_ch1.pdf
http://www.mckinseyquarterly.com/The_hidden_value_in_airline_o
perations_1348
UNIT 8: Cargo Transport
Notes
ES
Activity
___________________
Prepare a chart on air cargo
Cargo Transport with text and images.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction ___________________
UP
In this unit you will learn about another key aspect of the airline
business, that is, air cargo, and how it is transported. You will also
find out about the role of the freight forwarder, which is becoming
increasingly important with the growth of the air cargo market.
Air transport is a vital component of many international logistics
networks, essential to managing and controlling the flow of goods,
energy, information and other resources like products, services,
and people, from the source of production to the marketplace.
It is difficult or nearly impossible to accomplish any international
trading, global export/import processes, international repositioning
of raw materials/products and manufacturing without a
professional logistical support. It involves the integration of
information, transportation, inventory, warehousing, material
handling, and packaging. The operating responsibility of logistics
is the geographical repositioning of raw materials, work in process,
)
Air Cargo
(c
More than 40 million tons of air cargo (or air freight) is moved on a
yearly basis. Almost anything can be shipped by air, including
letters, packages, cars, horses, and construction equipment.
Air cargo can be transported in a variety of ways, including within
passenger airline space. It is a major user of free “belly space”, that
is, the portion of the aircraft that is not being occupied for
Airport Customer Service
ES
Activity
___________________
Prepare a presentation on Commercial airlines can make from 5 to 10 percent of their
cargo handling operations. revenue from hauling freight.
___________________
___________________
Cargo can also be transported on dedicated aircraft using freighter
airlines. Shipping companies like Fed Ex and UPS own a variety of
___________________
types of cargo planes. One of the larger ones is the Boeing 747,
___________________ which can hold about 26,000 cubic feet (736 m3) of cargo (as much
UP as five semi-truck trailers can hold).
In order to haul really big cargo, a super transporter may be
required. This is a class of plane designed for moving only huge
articles, such as a helicopter, large machinery, or even a plane. It
is built with a huge cargo area located above the cockpit, allowing
freight to fill almost the full length of the plane. It can transport
about 47 tons of cargo. One of the world’s biggest transport planes
is the Antonov AN-225. Its cargo capacity is over 250 tons,
allowing it to haul three or four military tanks.
ES
cargo but can be as simple as a direct transfer between aircraft ___________________
(sometimes known as tail-to-tail transfer).
___________________
Although air cargo ideally remains in the airport for a relatively
___________________
short time, it is necessary to provide storage facilities. Bonded
facilities are required for imports and international transshipment ___________________
The storage areas must be equipped with loading docks on the ___________________
landside to allow for rapid movement of goods to and from trucks. ___________________
UP
Most airports also provide offices near the warehouses for the
airlines and forwarders to receive/deliver cargo and prepare
shipping documents, and for customs to clear import and export
cargo.
A major issue in the layout of airports is the extent to which cargo-
handling activities take place on the airport versus outside the
airport boundaries. The airlines receive and dispatch cargo on the
airport. Inspection is generally done on the airport including
scanning, which generally implies that the palettes are built up on
the airport. Beyond that, exporters, importers and forwarders
generally prefer to locate their activities outside the airport to
avoid space limitations and reduce operating costs. Where possible,
they also prefer to build their own pallets and ULD containers
prior to delivery to airlines, especially where they have to maintain
a cool/cold chain for temperature-sensitive perishables.
However, this requires that pallets/containers be accepted “as is”
)
Also, carriers will have to bring their fleets into compliance with
Notes
ES
Federal Aviation Administration noise standards under new noise
___________________
legislation. Communities are continuing to exert pressures against
___________________ aircraft noise, resulting in increased attempts to reduce noise
___________________ impacts by imposing operating restrictions on carriers. Night
curfews are still not common in the United States, but if adopted
___________________
they could severely impact cargo operations.
___________________
Three basically different types of freight terminals can be
___________________ identified: low technology, medium technology, and high
___________________ technology.
___________________
Low Technology
___________________
These are often, but not necessarily, low-volume terminals. Where
___________________ manpower is both available and cheap, freight is moved by
UP manhandling over extensive layouts of roller beds and transfer
tables. Such terminals are also desirable when there are problems
with the supply of hard currency to purchase equipment and
spares and where there is a lack of skilled labour for equipment
maintenance.
Medium Technology
Containers are moved by mobile lifting and transfer equipment for
example, forklift trucks. The vast majority of existing medium- and
high-volume facilities still operate with this level of sophistication.
High Technology
Involving TVs and ETVs, these facilities use single or multiple
level storage of containers, which are moved within the terminal
mainly by the railed transfer vehicles. ETV operations produce
high throughputs per square meter, with minimum container
)
ES
Activity
Since cargo cannot move without documentation, the rapid
Prepare a slideshow on the
___________________
movement of large volumes of cargo requires the rapid processing documentation and control of
of large amounts of documentation with a high level of accuracy air cargo.
___________________
and reliability. In addition, the documentation must be available to ___________________
a large number of persons who are separated in the system, both
___________________
spatially and temporally.
___________________
Space is reserved on a particular flight on a space-available basis.
___________________
Scheduled to arrive at cargo reception in time for the outgoing
flight, the freight is weighed and checked against an electronic ___________________
airway bill. The loading manifests are produced in conjunction ___________________
with the flight tally and individual consignment information.
___________________
The freight is sorted at reception into small, heavy, and special or
___________________
UP
out-of-gauge freight and may be temporarily stored in the terminal
bin racks. Cargo is moved into the flight assembly area in
accordance with the flight tally. Pallets and containers are packed
after the freight has passed through the live lanes in the flight
assembly area; data on pallet contents are computerized for
tracking until final delivery.
In 2005 the IATA started vigorously to promote e-freight, with the
aim of very significant reduction of the amount of documentation
required. In the middle part of the decade, each cargo shipment
could involve up to 30 paper documents; by 2010 these were
reduced to 10, the remainder being converted to standardized
electronic messages. The move to fully electronic data was
generally supported by customs authorities and resulted in faster,
cheaper, and more reliable air freight transport.
out the transfer of the freight from the terminal to the aircraft.
Notes Since short aircraft turnaround time is essential to profitability,
ES
Activity
Write an article on apron
___________________ apron cargo handling systems should be capable of rapid unloading
cargo handling.
and loading while achieving high payload densities. The type of
___________________
equipment used depends on the exact nature of the cargo. Care is
___________________
to be exercised in using aircraft manufacturers’ estimates of
___________________ minimum unloading and loading times for aircraft. In many cases,
___________________ these times can be achieved under ideal conditions only, which are
not likely to occur on a working cargo apron.
___________________
Palletized units comprise the most common cargo form. After the
___________________
pallets have been assembled and sent to the preflight holding area
___________________
in the terminal, they must be transferred across the apron. This is
___________________ frequently achieved by transferring the pallets to roller mat
___________________ dollies, which are pulled to the aircraft by a ramp tractor. The
UP pallets are rolled onto a cargo lift that raises them to the level of
the aircraft floor, onto which they are rolled. Movement along the
aircraft can be by simple manhandling or, in the case of large
aircraft, by powered floor roller mats. At some airports, ramp
transporters are used instead of tractor and dolly systems. This is
usually when the distance from the cargo terminal to the aircraft is
considerable and a higher transfer speed is required.
Some freight terminals have nose-dock loading systems. These
allow nose-loading aircraft to load directly from the ETV system
through the open nose of the aircraft, which is parked immediately
adjacent to the system.
Loose cargo can be transferred across the apron by dollies and
loaded by either cargo lift or small cargo conveyors, which handle
light loads. Out-of-gauge and nonpalletized cargo can be handled
in this way, but this can become uneconomic in large volumes due
to poor aircraft turnaround time at the cargo apron. Freight rates
)
containers. They are normally side loaded using cargo lifts and
transporters or dollies. Wide-bodied all-cargo craft can take large
8×8-ft containers in modular lengths up to 40 ft. The largest can be
loaded by nose docks; others are side door loaded. Narrow-bodied
combination aircraft, which have low cargo capacity, must be loose
loaded in the belly holds.
UNIT 8: Cargo Transport
ES
Fill in the blanks:
___________________
1. Palletized units comprise the most ….……………….
cargo form. ___________________
___________________
Summary ___________________
The planning of a high-volume special-purpose air cargo terminals ___________________
is a complex procedure. Because such facilities are often owned and
___________________
operated by individual airlines, the design of these terminals may
well be carried out internally within the airline organization. The ___________________
Keywords
)
ES
somewhere else.
___________________
Outbound Cargo: Outbound cargo is freight that is being shipped
___________________
off to somewhere else.
___________________
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
Web Readings
http://www.mobility.siemens.com/mobility/global/en/logistics/airpor
t-logistics/cargo-handling-systems/pages/cargo-handling-
systems.aspx
http://en.wikipedia.org/wiki/Cargo_airline
)
(c
UNIT 9: Airlines Terminology
Notes
ES
Activity
___________________
Prepare a collage on the
Airlines Terminology terms used in airlines.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
___________________
UP
Have you ever found yourself sitting in an uncomfortable chair in
the airport, or buckling up in the airplane itself, only to realize
that everyone is speaking in some sort of code and you didn’t get
the memo? Airport jargon can be extremely confusing, but if you
learn a few of the basic meanings beforehand, then the airport
shouldn’t be too much of a foreign experience.
In this unit, you will study important airport terminologies. You
will also study about the cabin crew. The main responsibility of the
cabin crew is to look after the well being, comfort and safety of
passengers travelling in the aircraft. You will also study about the
airport announcements.
the actual time that an aircraft is in the air which does not
include time on the ground (For instance, waiting in line for
take-off).
Base Fair: It is the cost of a ticket prior to adding any taxes.
ADT: ADT stands for the abbreviated form for Approved
departure time.
Airport Customer Service
ES
passengers become violent towards crew members or
___________________
passengers.
___________________
APEX: APEX stands for Advance Purchase Excursion Fare. It
___________________ generally refers to international fares that have been
___________________ discounted.
___________________ Joint Fare: Joint fare is termed used for an agreement among
certain airlines to charge particular fares when a passenger
___________________
uses more than one airline.
___________________
Air Traffic Control: A game played by airline pilots and air
___________________
traffic controllers. The game has no rules, and neither side
___________________ knows how it is played, but the goal is to prevent flights from
___________________ arriving in time for passengers to make connecting flights.
UP Aerial: That part of the aircraft most frequently broken off
during the walk-around preflight inspection that pilots do to
see if anything is broken off.
Airframe: When the FAA inspector knows that you have only
a student license and sends his kids to bum a ride with you in
the plane.
Air Mass: Impromptu religious service held on board an
aircraft immediately following an announcement by the pilot
that he is lost, having an engine problem, or running out of
fuel.
ACI (Airport Council International): An international
association of more than 450 airports.
AEA: the Association of European Airlines. An association of
the largest European scheduled airlines.
)
flight. The rules and fares for luggage transportation are set
by the airline companies. Notes
ES
Luggage Sticker: A sticker attached to the passenger luggage ___________________
registered for transportation in the airplane. ___________________
UP
Communications Aviation department.
Civil Aviation Safety: A set of actions involving rules, people
and material resources aiming to protect the civil aviation
against the illegal interference in its operation.
Civil Aviation Safety Program: A set of events necessary for
protecting the civil aviation against the illegal interference in
its operation.
Civil Aviation Aircraft Staff: Individuals entrusted by the
related aviation institutions to operate the aircraft during the
flight.
Civil Aviation Aircraft: aircraft registered in the civil
aviation aircraft registry, which is not used for military,
custom or state border control institutions.
Dispatcher Commands: Instructions from the air traffic
control service dispatcher to the pilot in relation to a specific
)
action.
Security: Measures taken on entry to the airside area to
prevent illegal acts against civil aviation.
(c
ES
operation and safety during the flight.
___________________
Aircraft Type: Aircrafts with the construction of a same type,
___________________
including the modifications, except the modifications with the
___________________ different air dynamic data.
___________________ Aircraft: A flying machine holding in the air using the
___________________ interaction with air, if it does not involve the interaction of air
with land or water surfaces.
___________________
___________________ Aircraft Parking Lot: A place on the apron for parking the
aircraft.
___________________
Air transportation: Aircraft flight carrying passengers,
___________________
luggage, cargo and mail on the basis of payments or rental
___________________ agreement.
UP Air traffic: Movement of aircrafts in the air and on the
manoeuvring area of the airfield.
Jet bridge: The bridge connecting an aircraft to the gate so
that passengers can embark and disembark without getting
their feet wet.
Air route: Controlled air space or part of it is the form of a
corridor secured for use of air transportation.
IATA: International Air Transport Association. It is a global
association of more than 200 airlines.
ICA: International Civil Aviation Organisation. It is a UN
body for international civil aviation.
Departure sector: An area for passenger entrance in the
aircraft, usually marked with special numbers or letters.
Airport Office: RIX official office, from which flights are
)
ES
and airfield with restricted access.
___________________
Airfield Manoeuvring Territory: A part of the air field for
aircraft landing, take-off and manoeuvring needs. ___________________
___________________
Air Field Traffic: All traffic on the territory of manoeuvring
field as well as flights above the territory around the air field. ___________________
Air field traffic area: Air space of a certain size above the ___________________
territory around the air field to ensure the safety of the air ___________________
field traffic.
___________________
Air field: A certain land or water territory as well as building,
___________________
objects and equipment fully or partially intended for
___________________
organization of aircraft departures and arrivals (including
airplane landing, take-off, manoeuvring, parking, passenger ___________________
UP
entrance, luggage, cargo and mail loading and unloading,
technical maintenance and fuelling).
Flight restricted area: Restricted air space above the land
and internal and Baltic Sea territorial waters for aircraft
flights according to the special rules.
Airport ID card: ID card held by airport staff.
Illegal interference in the civil aviation operations:
Actions endangering or possessing a possibility of danger to
aviation safety (unauthorized entry of a person at the airport
restricted areas or aircrafts, possession of dangerous and
explosive substances or weapons without permission, use of
weapons against the aircraft personnel or passengers, aircraft
kidnapping etc.).
OneWorld: An alliance of the following airlines: American
Airlines, British Airways, Cathay Pacific, Finnair, Iberia,
)
ES
Activity Fill in the blanks:
___________________
Write an article on the
responsibilities of cabin crew. 1. ………………………… is that part of the airport
___________________
building and airfield with restricted access.
___________________
2. ………………………… is that part of the aircraft most
___________________ frequently broken off during the walk-around preflight
___________________ inspection that pilots do to see if anything is broken off.
___________________
Cabin Crew
___________________
Cabin Crew (also known as stewards/stewardesses, air hosts/
___________________
hostesses, cabin attendants) are members of an air crew employed
___________________ by airlines primarily to ensure the safety and comfort of
___________________ passengers aboard commercial flights, on select business
UP jet aircraft, and on some military aircraft.
The primary role of a flight attendant or cabin crew is to ensure
passenger safety. In addition to this, flight attendants are often
tasked with customer service duties such as serving meals and
drinks, as a secondary responsibility.
The number of flight attendants required on flights are mandated
by international safety regulations. For planes with up to 19
passenger seats, no flight attendant is needed. For larger planes,
one flight attendant per 50 passenger seats is needed.
ES
Activity
fastened. Prepare a slideshow of
___________________
generally used scripts for
Prior to take-off they demonstrate the use of emergency various announcements in
___________________
equipment and point out exit doors and notify the pilot when airlines.
___________________
they are ready for take-off.
On the flight they serve meals and drinks. Meals are generally ___________________
On few flights cabin crew sell duty-free goods such as alcohol, ___________________
perfume and tobacco. This work is generally done in pairs in
___________________
specific sections of the cabin, the work being allocated by the
___________________
chief stewardess or steward.
They make announcements on behalf of the pilot and before ___________________
Airline Announcements
The important scripts for announcements are discussed below:
Pre-boarding Announcement
Good afternoon passengers. This is the pre-boarding
announcement for flight 89B to Rome. We are now inviting those
Airport Customer Service
ES
___________________ boarding pass and identification ready. Regular boarding will
begin in approximately ten minutes time. Thank you.
___________________
Captain's Announcement
Good afternoon passengers. This is your captain speaking. First I'd
like to welcome everyone on Rightwing Flight 86A. We are
currently cruising at an altitude of 33,000 feet at an airspeed of
400 miles per hour. The time is 1:25 pm. The weather looks good
and with the tailwind on our side we are expecting to land in
London approximately fifteen minutes ahead of schedule. The
)
and beverage, and the inflight movie will begin shortly after that.
I'll talk to you again before we reach our destination. Until then,
sit back, relax and enjoy the rest of the flight.
Safety Briefing
Ladies and gentlemen, on behalf of the crew I ask that you please
direct your attention to the monitors above as we review the
UNIT 9: Airlines Terminology
ES
the nearest exit may be behind you. Count the number of rows to ___________________
this exit. Should the cabin experience sudden pressure loss, stay
___________________
calm and listen for instructions from the cabin crew. Oxygen
masks will drop down from above your seat. Place the mask over ___________________
your mouth and nose, like this. Pull the strap to tighten it. If you ___________________
are travelling with children, make sure that your own mask is on
___________________
first before helping your children.
___________________
In the unlikely event of an emergency landing and evacuation,
___________________
leave your carry-on items behind. Life rafts are located below your
seats and emergency lighting will lead you to your closest exit and ___________________
slide. We ask that you make sure that all carry-on luggage is ___________________
stowed away safely during the flight. While we wait for take off,
___________________
UP
please take a moment to review the safety data card in the seat
pocket in front of you.
Summary
In this unit, you have studied various important airport
terminologies. The main responsibility of the cabin crew is to look
after the wellbeing, comfort and safety of passengers travelling in
the aircraft. You have also got a brief idea about airport
)
announcements.
The primary role of a flight attendant or cabin crew is to ensure
passenger safety. In addition to this, flight attendants are often
(c
Keywords
Notes
ES
Aircraft: A flying machine holding in the air using the interaction
___________________
with air, if it does not involve the interaction of air with land or
___________________ water surfaces.
___________________
Security: Measures taken on entry to the airside area to prevent
___________________ illegal acts against civil aviation.
___________________ Security Check: A manual or technical check to detect weapons,
___________________ objects or substances which must it be assumed can be used in an
illegal act against civil aviation.
___________________
___________________
Luggage Sticker: A sticker attached to the passenger luggage
registered for transportation in the airplane.
___________________
Air Rage: Air rage is term used to depict a situation where
___________________
UP passengers become violent towards crew members or passengers.
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario & Hobbi,Bob, (2009), Building a Customer Service
)
Web Readings
http://www.riga-airport.com/en/main/newsroom/aviation-terms
http://www.englishclub.com/english-for-work/airline-
announcements.htm
UNIT 5: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: Shopper Anonymous at Airport Lynx
___________________
Airport Lynx specialises in first class airport transfer, from the
Cambridge area to all London Airports – for both business and ___________________
holiday travellers. It has around 20 vehicles and since its
___________________
formation in 1998, has constantly tries to improve its service,
being the first to offer online bookings and provide email ___________________
UP
confirmations. Airport Lynx prides itself on a high standard of
service but wanted to ensure that these standards including
safety, courtesy, timeliness, comfort, and cleanliness are being
met.
Opportunities Addressed by Shopper Anonymous
Steve Russell, Managing Director, was confident that his team
does a good job, but wanted to be sure they were doing a great job
and living up to the high standard expected – not just the drivers
but also the bookings team.
Steve wanted to find out how well his drivers treat the customer.
The drivers should always be on time (or a few minutes early) but
never late, but more than that, they should offer the high degree
of courtesy and attention promised by 5 Star standards of
business travel:
The luggage should be taken to the car, doors opened,
complimentary paper and bottle of water offered as well as Wi-Fi.
Once underway the customer should be kept warm enough, and
the driver must judge if the customer wants to talk, or be quiet
when appropriate.
)
The ride must be smooth and the driver makes sure that where
possible any traffic problems are avoided.
On arrival on a journey to the airport, drivers should get as near
to the airport entrance as possible, open the door for the customer
and get the luggage ready to go.
(c
On pick up from the airport, drivers should have a clear sign with
the customer’s name.
Drivers should wear the branded Lynx tie and of course be smart
and presentable.
The bookings team should be able to take a booking, whilst at the
same time watching out to help customers avoid booking errors;
double checking the details to ensure the booking ‘makes sense’
Contd….
Airport Customer Service
ES
Solution implemented by Shopper Anonymous
___________________
14 Journeys were set up to evaluate the customer service
___________________ provided by 14 different drivers. Mystery shoppers travelled to
___________________
Stansted with one driver and were then picked up by another.
The journeys had to be aligned with real flights, since drivers
___________________ check flight schedules when dropping off and picking up. Mystery
Shoppers posed as business people being taken to and then
___________________ returning from Stansted.
___________________ Our shoppers had to find innovative ways to emerge from the
arrivals area – without of course officially ‘arriving’! This was an
___________________ interesting challenge, as they were required to appear as if they
had just arrived from a business trip – complete with packed bag
___________________
and laptop!
___________________ To evaluate booking personnel, a number of bookings were made.
___________________ The experience reports for the journeys were written to track the
UP entire customer service experience: right from arrival at the
customer’s home, or meeting at the airport, getting into the car,
the journey, the drop off at the airport, or home. To create the
experience, Shopper Anonymous used Lynx’s standard driver
operating procedure, mapping this to the reports to ensure all
aspects of the journey, to and from an airport were included.
On the whole the team performed exceedingly well, largely
meeting the desired customer standards. However Lynx want to
get 100% compliance by all drivers of all standards, so whilst in
general these were good experiences for the customer, in most
cases one or two things could have been better on each journey. So
whilst in general the performance was good, it wasn’t the 100%
Lynx strive for.
The journey reports enabled Steve Russell to have meaningful
staff reviews, pointing out where they did well (this was very
motivational), whilst being able to point out where improvements
were needed. He was also able to remind all drivers of the need
for diligence, highlighting the facts that even the most
experienced drivers can miss something.
Steve Russell MD said “We will continue this exercise and as a
result, be able to demonstrate to potential new customers that we
)
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-III
)
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Airport Customer Service
Detailed Contents
Notes
ES
UNIT 11: INTERNATIONAL CIVIL AVIATION
___________________ UNIT 13: AIRPORT SERVICES’ USERS
ORGANIZATION (ICAO)
Introduction
___________________
Introduction
Users of Airport Services
___________________
About ICAO
Airport Customer Service
___________________
Safety
Passengers
Security
___________________
Environmental Protection
___________________ UNIT 14: AIRPORT SERVICE MARKETING
Introduction
___________________
UNIT 12: AVIATION ORGANIZATIONS
Decision Variable
___________________
Introduction
Indian Scenario
___________________
IATA (International Air Transport Association)
Marketing of Airport Services
Airports Council International (ACI)
___________________
CANSO
UP
New ICAO/CANSO Agreement to Deliver Improved
Other Marketing Challenges
Notes
ES
Activity
___________________
Write a short report on ICAO.
International Civil Aviation ___________________
___________________
Objectives ___________________
After completion of this unit, the students will be aware of the following
___________________
topics:
___________________
About ICAO
Safety ___________________
Security ___________________
Environmental Protection
___________________
Introduction
UP
National borders are meaningless to people flying high above the
clouds and yet nations are responsible for protecting the territories
and the people that live within their boundaries. Without
international agreements, flying above successive countries would
not be possible and international flights would not exist. A number
of international organizations have been created to encourage
cooperation among nations and establish world standards for the
aviation industry. It is important to understand the purpose of
these organizations and the role they play in the management of
the air transportation system.
About ICAO
)
(c
ES
Activity air transport, the International Civil Aviation Organization serves
___________________
Prepare a presentation on as the global forum for its 191 Member States. Amongst its many
safety as the fundamental other functions supporting all aspects of international civil
___________________
objective of ICAO.
aviation, ICAO brings together States and key industry
___________________
organizations to determine areas of strategic priority, develops
___________________ policies and standards, coordinates global monitoring, analysis and
___________________ reporting initiatives, and delivers targeted assistance and capacity
___________________
building.
Safety
(c
ES
Activity
2. The development and maintenance of Standards, ___________________
Prepare a slideshow on the
security function of ICAO.
Recommended Practices and Procedures applicable to ___________________
international civil aviation activities which are contained in
___________________
16 Annexes and 4 PANS (Procedures for Air Navigation
Services). These standards are complemented by more than 50 ___________________
collects and analyse a vast array of safety data which allows to ___________________
4.
UP
identify existing and emerging risks.
The implementation of targeted safety programmes to address
safety and infrastructure deficiencies.
5. An effective response to disruption of the aviation system
created by natural disasters, conflicts or other causes.
In all of its highly coordinated safety activities, ICAO strives to
implement practical and achievable measures to improve safety
and efficiency in all sectors of the air transportation system. This
approach ensures that aviation’s complimentary achievements of a
remarkably safe and efficient air transport network continue to
serve a fundamental role in supporting global social and economic
priorities.
Security
With the collaboration of Member States, ICAO plays an essential
leadership role in the field of aviation security with the ultimate
Airport Customer Service
ES
___________________ effective global policy and legal framework in response to the
evolving threat to civil aviation, conducting audits that identify
___________________
aviation security shortcomings, and assisting States in
___________________
implementing security Standards and resolving deficiencies.
___________________
When aviation security did arise as a serious issue in the late
___________________ 1960s, there was a need to adopt an international framework for
___________________ addressing acts of unlawful interference. ICAO assumed a
leadership role in developing aviation security policies and
___________________
measures at the international level, and today the enhancement of
___________________
global aviation security is a key objective of the Organization.
___________________
Provisions for international aviation security were first
___________________ disseminated as Annex 17 to the Chicago Convention in 1974, and
UP since then have been improved and updated 12 times. The 12th
amendment to the Annex became applicable on 1 July 2011.
With respect to security training, ICAO develops course material
on a range of topics for use by civil aviation administrations and a
network of regional aviation security training centres. This
material covers such subjects as airline and cargo security and, of
course, crisis management. Training workshops and seminars are
conducted on a regular basis.
All of ICAO’s initiatives in the field of aviation security rely, both
globally and regionally, on cooperation amongst States and all
other stakeholders. The overarching goal is to enhance global
security by implementing uniform security measures around the
world, a goal that cannot be achieved without an unswerving
commitment by all concerned.
Environmental Protection
Notes
ES
Activity
Improving the environmental performance of aviation is a
Write an article on the goals of
___________________
challenge ICAO takes very seriously. In fulfilling its ICAO for environmental
responsibilities, the Organization developed a range of standards, protection.
___________________
policies and guidance material for the application of integrated ___________________
measures to address aircraft noise and engine emissions
___________________
embracing technological improvements, operating procedures,
proper organization of air traffic, appropriate airport and land-use ___________________
All of this has contributed to aircraft operations that today can be ___________________
70% more efficient than in the 1970s. ___________________
aircraft noise;
UP
Limit or reduce the impact of aviation emissions on local air
quality; and
Limit or reduce the impact of aviation greenhouse gas
emissions on the global climate.
The ICAO Council also adopted strategic objectives, with high
priority given to environmental protection, while the new business
plan asserts the organization's status as the leading international
organization pursuing unified and coordinated measures to reduce
civil aviation's impact on the environment.
ICAO's activities in the environment field are primarily focused on
those problems that benefit most from a common co-ordinated
approach, on a worldwide basis, namely aircraft noise and the
impact of aircraft engine emissions.
Most of this work is undertaken through the ICAO Council's
)
ES
bodies that have expressed an interest in civil aviation, notably
___________________
with the Conference of the Parties to the United Nations
___________________ Framework Convention on Climate Change, to which it provides
___________________ regular statements on ICAO's emission-related activities.
Keywords
Safety: Safety can be defined to be the control of recognized
hazards to achieve an acceptable level of risk.
Security: Security as a condition is the degree of resistance to, or
protection from, harm.
UNIT 11: International Civil Aviation Organization (ICAO)
ES
interact with the system by exchanging mass, energy, or other
properties. ___________________
___________________
Questions for Discussion
___________________
1. Briefly describe ICAO. ___________________
2. Discuss the environmental goals of ICAO. ___________________
3. What is the safety function of ICAO? ___________________
4.
UP
Discuss the security objective of ICAO.
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
Web Readings
http://www.icao.int/environmental-protection/Pages/default.aspx
http://en.wikipedia.org/wiki/Civil_Air_Navigation_Services_Organi
)
sation
(c
(c
) UP
ES
UNIT 12: Aviation Organizations
Notes
ES
Activity
Visit___________________
Aviation Organizations IATA office and with the
help of their representative
___________________
prepare a report on the
functions of IATA for your
study___________________
group.
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
UP
In this unit you will be informed about important aviation
organizations namely IATA, ACI and CANSO. You will also gain
knowledge on the new ICAO/CANSO agreement to deliver
improved air navigation safety.
ES
Activity together approximately all airlines from around the world. Flights
___________________
Prepare a PPT presentation by these airlines comprise more than 98 percent of all
on duties of ACI.
___________________ international scheduled air traffic. The mission of IATA is to
___________________ “represent, lead serve the airline industry”. IATA has its
headquarters in Montreal, an executive office in Geneva and
___________________
regional offices in Miami and Singapore.
___________________
IATA ensures that people, freight and mail can move around the
___________________ vast global airline network as easily as if they were on a single
___________________ airline in a single country. In addition, IATA helps to ensure that
___________________
Members’ airplanes can operate safely, securely, efficiently and
economic under clearly defined rules.
___________________
IATA provides a useful means for governments to work with
___________________
UP airlines and draw on their experience and expertise. Working
standards for the aviation industry are developed within IATA. In
fostering safe and efficient air transport, IATA serves the stated
policies of most of the world’s governments.
ES
Activity
Airports Council International (ACI) is a non profit global trade ___________________
Prepare a write-up on
organization of the world's airports, consisting of 580 members CANSO.
___________________
operating 1,650 airports in 179 countries and territories. ACI
___________________
primarily represents member airport's interests and to promote
professional standard in airport management and operations. It ___________________
aims to provide the public with a safe, secure, efficient and ___________________
environmentally responsible air transport system. ___________________
It is governed by the ACI Governing Board. ACI World ___________________
Headquarters was based in Geneva, Switzerland but subsequently
___________________
moved to Montreal, Canada, after the 2010 General Assembly. It
incorporates the International Civil Aviation Organization (ICAO) ___________________
CANSO
)
(c
ES
Activity providing air navigation services from civil service departments to
___________________
Write a newspaper article on organizations with varying degree of independence from the
the new agreement of ICAO government. The degree of independence from direct government
___________________
and CANSO.
control varies from a State enterprise with a Board of Directors
___________________
reporting to the government, to a partly or completely privatized
___________________ entity with shareholders.
___________________
The new organizations have greater freedom to manage their
___________________ businesses in a way that will result in efficient and safe air
___________________ navigation services. These organizations have established the Civil
Air Navigation Services Organization (CANSO) as their trade
___________________
association, however any organization provided to furnish civil air
___________________ navigation services may join CANSO. CANSO headquarters are in
___________________ Hoofddorp (Netherlands) with a regional office in Brussels.
UP CANSO is the global voice of the companies that provide air traffic
control, and represents the interests of Air Navigation Service
Providers worldwide. CANSO Members are responsible for
supporting 85% of world air traffic, and through our Workgroups,
Members share information and develop new policies, with the
ultimate aim of improving navigation in the air and on the ground.
CANSO also represents its members’ views in major regulatory
and industry forums, including at ICAO, where we have official
Observer status.
ES
approaches. ___________________
The establishment of this framework is an important step in ___________________
helping CANSO and ICAO achieve the highest levels of aviation
___________________
safety worldwide. This priority knows no borders and these types
of collaborative data sharing and risk mitigation efforts are ___________________
ES
___________________ Fill in the blanks:
___________________ Summary
___________________ IATA provides a useful means for governments to work with
___________________ airlines and draw on their experience and expertise. Working
UP standards for the aviation industry are developed within IATA. In
fostering safe and efficient air transport, IATA serves the stated
policies of most of the world’s governments. The Airports Council
International (ACI) is the international association of the world
airports. It is a non-profit organization, the prime purpose of which
is to advance interests of airports and to promote professional
excellence in airport managemen1 operations.
CANSO is the global voice of the companies that provide air traffic
control, and represents the interests of Air Navigation Service
Providers worldwide. CANSO Members are responsible for
supporting 85% of world air traffic, and through our Workgroups,
Members share information and develop new policies, with the
ultimate aim of improving navigation in the air and on the ground.
CANSO.
Keywords
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ES
International (ACI) is the international association of the world
airports. ___________________
___________________
2.
UP
Discuss the functions performed by ACI.
3. Write a brief note on CANSO.
4. What is the new agreement of ICAO/CANSO?
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success. IAP
Kossmann, Mario,(2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
)
Web Readings
http://www.canso.org/about
http://en.wikipedia.org/wiki/International_Civil_Aviation_Organiza
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tion
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) UP
ES
UNIT 13: Airport Services’ Users
Notes
ES
___________________
Airport Services’ Users ___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
___________________
UP
Airport is a self-contained town in a city. It has its own
administration and specific rules for its user and the visitors.
Airport is basically meant for the use by passenger, visitors and
the consignor/consignees and hence they are the main users.
Airport authorities have to provide various facilities for them and
for which various agencies are working:
Police or other security forces for the safety and security of the
installations and other vital equipments,
Airlines and their offices for providing aviation facilities too
the passenger,
Handling agents to provide assistance to airlines for handling
of the flight,
Oil companies to provide aviation fuel to the aircraft,
Engineering companies to provide maintenance of the aircraft,
)
passengers/airlines,
Lounges and other waiting areas for the passenger,
Custom offices for the international passenger and cargo,
Immigration or the passport control offices both in the arrival
and departure areas of the international terminals, and
Provision to provide emergency service like fire fighting.
Airport Customer Service
ES
Activity
After going through the above, now we can analyze the following
___________________
Prepare a chart of users of
airport services. are airport users:
___________________
1. Airlines and their employees
___________________
2. Restaurant and Lounges
___________________
3. Agents
___________________
4. Banks
___________________
5. Custom
___________________
6. Immigration or the passport control officer
___________________
7. Oil Companies
___________________
8. Security agencies
___________________
UP 9. Airport authorities
10. Metrological Office
11. ATC officer
12. Medical unit
13. Tourism Offices
14. Taxi service providers
15. Hotel representative
16. Terminal for rail or buses
17. Left luggage Areas
18. Law enforcing agencies
For the airport, it is important that all its customers are given
proper attention and their needs are met before it is asked. The
airport authorities are responsible to provide the service to its
user.
)
These business entities own the aircraft and carry the passenger
on their flight and also bring them from various parts of the world.
They have their own set up at the airport. Their set up is basically
of two types:
Counter
Back up and Main office at the airport
UNIT 13: Airport Services’ Users
ES
counter, excess baggage charge counter etc. are those counter
which are visible to the passenger and visitor. ___________________
___________________
Back up and Main Office
___________________
Back up office is the office of the airlines which is a control room
___________________
also for the handling of the flight. The main job of this back up
office to keep up-to-date information of the flight (delay ETA etc.) ___________________
and keep the passenger informed. It is also required to send the ___________________
complete flight data to the other en route and destination station ___________________
once the flight has taken off. It is also responsible for the
___________________
accounting of all the document i.e. flight coupon, EBT and also
account for the cash collection of the sale proceed of the ticket ___________________
issued at the airport whereas the main office of the airlines is not ___________________
UP
in the departure or arrival area but a little away from the
operational area. In this office, they plan and execute the policies
of the airlines and do all other administrative work.
The employees of the airlines are quite efficient and courteous not
only to the passenger but also to the other users as they represent
the passenger and passenger look toward the airlines for any type
of assistance during their short stay at the airport for taking the
flight.
that in turn get in touch with them to ensure their upkeep and to
upgrade the facilities from time to time.
Agents
Notes
ES
At airport a lot of agencies work like ground handling, mini
___________________ reservation office agents etc. These entire agents are for the
___________________ service to the passenger directly or indirectly. For example, a
handling agent provides the service for handling the flight
___________________
departure to an airline but in indirect manner he is dealing with
___________________
the passenger, because it is the passenger who has to travel.
___________________
Banks
___________________
One of the important requirements is the existence of a bank at the
___________________
airport where the passenger can exchange their currency to the
___________________ local currency or deport the local currency and obtain the foreign
___________________ currency as the local currency of the country does not work in the
___________________
other countries. The bank official has to very clear and courteous to
UP the passenger.
Customs
Custom authorities have a major role to play in the international
traffic. They have to ensure that people don’t take the banned item
like article of historically important art and craft which are not
replaceable. Since most of the counties are the members CITES
(Convention on International Trade in Endangered Species of wild
Fauna and Flora), the custom authorities are also responsible to
see that live or dead animal of endangered species is neither
transported out nor brought in to the country.
Oil Companies
Aviation uses aircraft which need power to fly. This power is
derived by using aviation fuel by engines. These oil companies are
required to be providing this facility to the aircraft .They come in
contact with the airlines and in an indirect manner with the
passenger.
UNIT 13: Airport Services’ Users
ES
and also the equipment to refuel the aircraft. The process of
refueling has to be completed within a short period of not more ___________________
than 15 minutes in normal aircraft and approximately in 30 ___________________
minutes in bigger aircraft.
___________________
The oil companies have developed expertise for this and are doing
___________________
a good job at all the airports.
___________________
___________________
UP
Frisking of passenger, x-raying of the baggage and allowing
passenger to the aircraft through gate controlled are all properly
controlled and manned.
On the apron side, the aircraft and all other equipment are
guarded once the aircraft arrive and is parked. These activities are
of essential nature as any small adventure by any miscreant can
cause heavy damages and a bad reputation of the country.
Airport Authorities
All airports are controlled either by an independent government
body or by private entities. Airports are built, maintained and
operated by these bodies. They employ huge number of employees
depending upon the size of the airport.
All airlines depend upon airport authorities for all sorts of facilities
which are required, may be on the airside or landside and off-
course in the terminal building itself.
)
ES
___________________ Another important component of the aviation industry is the
___________________
Metrological office as we are aware that the flying depends upon
the clear weather. If the weather is not conducive to this safety of
___________________
the aircraft, the flight will not be operated at that time and route.
___________________
The reason being in case of emergency the aircraft has to come
___________________ back the pilot is in a position to sight the runway and also on the
___________________ type of aircraft, its weight and speed. And the on board
navigational equipment and also the matching navigational
___________________
equipment installed at the runway.
___________________
Each airline trains its pilot to land in the minimum visibility. In
___________________
such situation there is a need to have a weather forecast from an
___________________ independent body which also constituted by a state to prove its
UP authority and this department is known as ‘metrological
department’ and in short it is known as “MET” and its reports are
known as “MET” reports which are mandatory for the any flight,
whether it is a commercial or non-commercial or military flying.
As per the regulatory authorities the pilot must obtain the
metrological report from the met office before departure for its
destination and also for the enroute weather and should also give a
‘Debriefing” on arrival at the destination more so if the deviation
was observed during the flying than that of the met forecast given
from the origin of the station.
Earlier the pilot or the co-pilot used to go personally to the Met
office and obtain briefing and discuss the weather conditions but
now due to more accurate forecasting an officer from the operation
department of the airlines obtains the met report from met office
and then handover to the pilot when they report for the duties.
This saves a good amount of time of the pilot which is used for the
)
flying duties.
ATC Office
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At the major airports, there is more than one runway and hence
Notes
ES
the job of coordinating the arrival and departure of the aircraft
requires sophistication. This has become somewhat easier with the ___________________
use of IT where the computer tracks the movement and takes ___________________
corrective measure in case of any emergency.
___________________
As per ICAO all airport should have a qualified medical officer ___________________
round the clock. There should also be a clinic to take care of the ___________________
medial emergencies of the passengers. Thus the medical officer and
___________________
medical units are provided by the airport authorities.
___________________
Generally the location is accessible to all passengers from inside
___________________
the terminal and also from the landside.
___________________
UP
The airport clinics are equipped with the basic medical facilities
and in case of emergency or serious nature sickness, passengers
are immediately taken to the near- by hospital in the ambulances
which area available at the airports.
Tourism Offices
International Airports are the entry points for tourist. Each
country has to provide a place inside the arrival and departure hall
of the terminal building for providing the useful information about
the Tourist places of the countries.
These offices are quite equipped with the literature of the various
tourists interesting place. They are the good guide to the incoming
tourists who depends upon them for all types of solution in case of
need of the information.
Hotel Representative
Notes
ES
At all airports a counter or sometimes more than one counter is
___________________ available to the important hotel that provides assistance to the
___________________ passenger who intends to stay with them. They provide transfer to
and from hotel, generally courtesy service and do not charge.
___________________
ES
Lets us now understand the meaning of airport customer service. Activity
___________________
Write an article on customer
Customer service is a concept in which the service providers service at airports.
___________________
ensure the faculties are provided to its customer to the entire
satisfaction. In case there is a complaint, they have a grievance ___________________
officer to address the complaint and also take further action to ___________________
ensure its improvement.
___________________
Having known the customer service and the user of the airport, it ___________________
is very easy for the student to understand the need for the airport
___________________
customer service.
___________________
To provide the customer service the airport must provide the
following facilities: ___________________
___________________
In Passenger Terminal
UP
Information counters properly manned,
Sufficient telephone lines in case passenger wants to find the
flight information,
Display board for the arrival and departure of the flight,
Proper signage,
Trolleys for the passenger to carry luggage from curb side to
the terminal building and vice versa,
Toilet facilities for ladies/gents and also for the physically
challenged person,
Escalators and lift for going up and down,
Facilities for the wheel chair passenger/stretcher passenger,
Proper entry and exit gate with signage as per ICAO standard,
)
Snack Bar/Restaurant.
In Cargo Terminal
Place to park vehicle to load and unload cargo
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Information counters
Proper access to the air cargo carrier’s office
Snack bar/Restaurant
Ensure security of the goods once entered in the cargo area
Airport Customer Service
ES
Activity
___________________
Write a report on passenger
Fill in the blanks:
as the main customer of
___________________
airport. 1. Customer service is a concept in which the service
___________________ providers ensure the facilities are provided to its
customer to the entire …………………….
___________________
2. Facilities for the wheel chair passenger/stretcher
___________________
passenger should be provided at ……………..
___________________
___________________
Passengers
___________________
The most important person at the airport is a “passenger” or a
___________________ ‘visitor”. All airlines and airport exists because of passenger. If the
___________________ passengers are not there, then no airlines will operate and no
UP requirement of the airport and the entire huge infrastructure. The
passenger is the main user of the facilities of the airport. The
airport design starts from the passenger and ends with the
passenger.
The passenger require a place to sit before the security is
announced, and once inside the security area also need a place
to relax, have a coffee or watch a TV or listen to news.
The present airports are designed in such a way that at every
stage the passenger does not feel lost and is always get what
are his basic needs.
Passenger does not want to spend time which is unwarranted.
He wants to spend the minimum time waiting for the
departure of the flight.
Similarly on arrival, from a flight, he wants fast clearance from the
passport control, custom and to have quick baggage delivery. He
)
ES
cleared through custom and other law enforcing agencies and want ___________________
to receive their goods immediately on their arrival so that they do
___________________
not suffer the ‘opportunity loss.’
___________________
Normally all airports have special cargo terminals where the
facilities of proper warehousing, custom clearance and delivery, re- ___________________
packing etc. is all available. This is necessary as all the goods ___________________
which arrive have to be cleared by the custom by opening and ___________________
inspecting and then repacking before delivery to the consignees.
___________________
All the three categories of passenger and consignees have to
___________________
interface the airlines personal, custom, immigration (except when
they are on domestic travel), and security personal, both on arrival ___________________
Summary
In these days the activities at the airport have multiplied. Airport
(c
facilities for its passenger and also where the charges are more
Notes reasonable.
ES
___________________
___________________ Keywords
___________________ Passenger: A passenger is a person who travels in a vehicle but
___________________ bears little or no responsibility for the tasks required for that
vehicle to arrive at its destination or otherwise operate the vehicle.
___________________
Agent: An Agent is one who acts for, or in the place of, another, by
___________________
authority from him; one entrusted with the business of another.
___________________
UP Customs: Customs is an authority or agency in a country
responsible for collecting and safeguarding customs duties and for
controlling the flow of goods including animals, transports,
personal effects and hazardous items in and out of a country.
Immigration: Immigration is the movement of people into a
country or region to which they are not native in order to settle
there.
Further Readings
(c
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob,(2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
UNIT 13: Airport Services’ Users
ES
Aviation, Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://www.airportdesk.com/services.html
___________________
http://www.canso.org/about ___________________
http://en.wikipedia.org/wiki/International_Civil_Aviation_Organiza ___________________
tion
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 14: Airport Service Marketing
Notes
ES
Activity
___________________
Airport Service Marketing Prepare a presentation on
decision variable.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction ___________________
UP
Conventionally, it was believed that an airport travel agent (TA) is
not creating a need but only fulfilling an existing need. But it is
now a reality that a number of airport TAs not only created the
need to travel to destinations but give business to hotels, carriers
and lots of other parties. An airport TA is an important link
between the traveller and the rest. How some airport travel
agencies have grown and benefited from the marketing approach,
is being discussed in this unit.
The purpose of marketing is to create a customer, to persuade him
to purchase your product, inspite of the options open to him to
either buy from someone else or not to buy at all. It is a well
recognised axiom that the customer pays not for the product, but
for the satisfaction he desires. To begin with, only the customer
knows what would satisfy him. Or does he, really? It is, therefore,
important to know who the customer is, or can be; to determine
)
what satisfies him or does not; or, even to change his perspectives,
and bring around to recognise the possibilities inherent in the offer
you are making.
(c
Decision Variable
Obviously the operative word here is value. To qualify, it is the
value that the customer receives or perceives he is getting, in
exchange for a segment of money or time or choice surrendered by
him, which determines the ‘Decision Variable’. As a consequence,
value for money has become a consumer buzz-word as powerful
Airport Customer Service
ES
___________________
It is axiomatic that the ‘Decision Variable’ itself is not a constant.
___________________ To explain, given the same product, backed with consistent value,
___________________ the customer may decide not to buy it, or defer his purchase
decision, depending on various factors external to the product—
___________________
economic, attitudinal and societal. The marketer, in such
___________________ situations, has to reach out beyond the confidence circle of his own
___________________ product into larger concentric circles, which he can only hope to
control most of the time. It is, perhaps, this perception of outer
___________________
circles and the compulsion to reach out for them, which adds true
___________________
value to his product, particularly in fiercely competitive situations.
___________________
Fortunately, not only air travel agents, but everyone else knows by
___________________ now of the dramatic attitudinal and societal changes which have
UP come about in India over the last twenty years, in the matter of
business and leisure travel. It is no longer a luxury, and certainly
not a psychological block, to want to get from ‘Point A’ to ‘Point B’
in the least time consuming, and in a most pleasurable manner.
The ‘Decision Variable’ has, in the main, become more need driven
as the external factors influencing such decisions have weakened
and lost their bite.
Since most things in life have a price attaching to them, the
advantages of a potentially large air travel market, close at hand,
must be placed in the context of constricted marketing
opportunities. This is neither a paradox nor a contradiction in
terms. What really has emerged for the trade is a scenario in
which the players are having to operate with not much to fall back
on, in terms of Unique Selling Propositions (UPSs). The seller of a
travel services is not about ‘to change the world’—the world has
changed! What he is attempting really is to add value to an
)
ES
Activity
commercial enterprise in the world. In India too, the growth Write a term paper on Indian
___________________
patterns are exciting, but more of that later. Moreover, technology scenario of air travel service
___________________
market.
has given the business a number of powerful operational tools.
Internally, large scale computerisation of travel agencies has made ___________________
Indian Scenario
)
The travel trade in India is about sixty years old, and has received
its impetus from the growth of civil aviation in the country. From
small beginnings with a few firms like Thomas Cook, Vensimals,
Mercury of the Oberoi’s followed a few years later by TCI and Sita,
(c
today it encompasses about 750 travel agencies spread all over the
country. Yet, this growth has been random and uncontrolled,
manifest by today’s trade syndromes, a serious lack of
professionalism, particularly in areas of marketing and finance,
the absence of clearcut institutional and product definition,
competition of the most pernicious kind, and an inadequate code of
ethics.
Airport Customer Service
Also, apart from the odd one out, travel agencies in India have
Notes
ES
grown around the expertise, experience and enterprise of single
___________________
individuals and, so, tend to be highly personalised. These are
___________________ superior technocrats who have plunged in, armed with assurances
___________________ from a small but dedicated clientele, mostly with poor funding and
weakly held beliefs on the workability of modern methods in a
___________________
market place, where contacts, word of mouth publicity and
___________________ perpetual deal making predominate. For instance, how can one
___________________ explain, the fact that computerisation has been adopted just about
a decade ago, and even then, in the most rudimentary manner? Or
___________________
that, finance still remains primarily, a book keeping and debt-
___________________
collection function or that the marketing function is seen as an
___________________ exercise in trade expionage, sweet-dealing the clients, wheeling-
___________________ dealing and pumping in sales volumes at any cost or consequence.
UP The biggest problem a travel service marketer faces is determining
what to sell and to whom. As an agent there is not much he can do
about the activities of his principals, or those on whom he must
depend: be they airlines or shipping companies, government or
foreign embassies, local transport operators or their agents abroad.
Thus, the need is to be both circumspect and selective.
Overpromising and under-delivering a service can lead to loss of
money and loss of a client; and, in a trade which is as insular as
the travel trade, the ripple effect is disastrous. Ironically, the
Indian travel agent constantly gambles on these imponderables
because he believes he is safer off in familiar territory, as opposed
to offering products he is not comfortable with.
He is forced to compete not only with fellow agents, but with other
players in the field like General Sales Agents and Passenger Sales
Agents. Initially, these firms were appointed by certain airlines to
sell their capacities in areas where no IATA approved travel agent
(c
of the airlines, i.e., the principal, itself competing against its agent
for a plum account are not difficult to find. Notes
ES
In the highly price sensitive travel trade, where every other client ___________________
is primarily concerned with neutralising the effects of steeply ___________________
increasing airfares on his travel budget, this places the IATA
___________________
approved travel agent at a serious disadvantage; he is forced to
offer discounts from his earnings just to stay in the game. ___________________
___________________
Within the travel fraternity itself, at least five classifications have
emerged; the IATA agent offering a wide clutch of services on a ___________________
multilocational basis; the single location agent; the corporation ___________________
promoted ‘in-house’ agency; the ‘consolidator’ who buys business
___________________
for cash on a heavily discounted basis; the non-IATA “Mom and
Pop Shop’ who have no airline ticket stocks or service back ups and ___________________
exist by pulling in clients literally from the pavements for IATA ___________________
UP
Agents in exchange for a small sub-agency commission. Add to
these the firms which specialise only in visa or passport work on
the side, and the usual assortment of free lancers and touts. The
IATA approved air travel agent must find his way through this
maze of options and enticements to reach his prospective client.
ES
Activity
___________________ national basis have perceived these differences and flexed their
Write an article on the
components of marketing of marketing presence accordingly. On the other hand, this regional
___________________
airport services.
dispersion does explain, to some extent, the failure of many agents
___________________
to successfully spread into regions other than where they have
___________________ established themselves in the past. This problem is not exclusive to
___________________ the travel trade, as any marketer worth his pay will tell us;
focussing on regional market trends and forces is integral to the
___________________
activity.
___________________
The scenario, however, gets somewhat complicated when the
___________________
product you are selling is not really your own. For example,
___________________ assume that you have successfully sold airlines in Madras which is
___________________ inflexible in the matter of discounting, but commands strong
UP loyalties for its schedules, on board service levels, connections and
so forth. Selling the same airlines out of Delhi will not be as easy
since the rules of the game could be different there. The true
dilemma lies in having to decide whether it’s going to be the airline
service that you are selling as your product, or is it the excellence
of your travel agency service package which is the real clincher.
ES
particularly in terms of cause and effect. The generic factors which ___________________
will contribute to success are the seven C’s. This is not a priority
___________________
listing and each factor assumes importance at a particular point in
time or amidst a specific scenario. However, everything should ___________________
___________________
Seven C’s of Airport Services Marketing
___________________
Following are the 7C’s of marketing for airport services:
___________________
Credibility
___________________
Confidence
___________________
Competence
___________________
Clout
Consistency
UP
Customisation
Care
may break down miles from anywhere; a hotel may not have a pre-
booked room ready for your client; your client’s air cargo may be
shut out at the last moment; a tour can start with delay and
misunderstandings and even end in a fiasco. Each of these primary
(c
safeguard his client and himself. How well he does this reflects on
Notes his credibility and the confidence level he is able to generate and
ES
___________________ sustain in the market. Word does tend to get around and if the
marketer, in pitching for new business, can demonstrate these
___________________
qualities backed with data and facts, he can manoeuvre his agency
___________________
into a position of strength. Even so, we in the Indian market place
___________________ are lucky because loyalties die hard here, unlike in the West where
___________________ credibility is subjected to constant testing and analysis. But, with
business perspectives becoming increasingly bottom-line and
___________________
pressure oriented, things are changing. The marketing
___________________ professional must realize this and search for credibility and
___________________ confidence advantages for his agency.
___________________
Competence
___________________
UP Listing competence as a marketing advantage may be resorting to
a tautology. Nevertheless, the qualities a travel agent possesses in
terms of high job specific skills and professional staff strength, sets
it apart from the run-of-the-mill agent and promotes client
confidence. Here, competence is related to technical excellence
more than to street smart ‘Mister Fix It’ labels. There will be
enough opportunity to demonstrate the latter when things need to
get done out of turn by bending rules, but to begin with, an
agency’s prime strength lies in how will the technicalities of the
trade are handled by its staff and managers. Competence,
therefore, is a function of superior staff, strong supervision,
effective systems and controls and diverse experience culled from
the trade. The marketer who can assert, based on a proven track
record, that his firm knows all the options and can deliver the best
one to the client, or has the talent to anticipate problems before
they arise, is bargaining from a position of strength.
)
Clout
Clout of course can be applied when, inspite of having pressed all
the buttons, the machinery remains immobile. Given the
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Consistency
Notes
ES
This is another important factor which the marketer must exploit
to the firm’s advantage. It is far easier to maintain consistency of ___________________
quality in the case of sale of goods which can be produced to DIN or ___________________
BS or ISI specifications than when you are selling services which
___________________
do not conform to tangible parameters and have a perceptual bias.
___________________
As a matter of fact, it is this bias which determines the vital
___________________
‘Decision Variable’ which was discussed earlier. Consistency,
however, is easy to comprehend, but not as easy to sustain ___________________
particularly, “when you are marching in some one else’s parade.” ___________________
The travel service marketer in view of competitive pressures tends
___________________
to pitch at the highest promise levels, every time to the client. This
practice is undesirable, and one should see very objectively on ___________________
what the agency can do, time after time. The service performance ___________________
UP
must not read like the ECG of someone with a systolic problem,
nor should it be a flat-liner. It is important to learn how to say ‘No’
at times and play safe. It pays in the long run to consistently
deliver good levels of service than be a ‘one shot wonder’.
ES
___________________ volume agencies will have to create a special sales and servicing
cell, and then allocate perhaps 5 to 10 clients per each staff on a
___________________
dedicated basis. But, as is obvious, this adds not only to staff costs,
___________________
but often to pernicious in-house squabbling, when each group
___________________ member pushes for emergency attention from the ticketing counter
___________________ staff. There is at least one large agency which has found the
resources to create dedicated cells comprising one staff, each
___________________
drawn from domestic ticketing, international ticketing, sales and
___________________ servicing, and documentation departments, which deal just with
___________________ their ‘own’ clients.
___________________ Large agents in America and Europe are highly computerised, both
___________________
in-house as well as being subscribers to mega-computerised
UP reservation systems like Sabre, Galileo, Amadeous and so forth.
We, in India, are far behind till now. It has, therefore been our
endeavour, in our agency, to bring about quantum changes in our
in-house computer systems not only to go completely on-line within
nine months, but also in the process, to build up a comprehensive
travel profile of everyone who has travelled through us. Whilst
waiting for this upgradation to take full or even substantial effect,
our marketers must sell our service on the premise that every
passenger will receive personalised treatment, and ensure that his
or her commitment to the client is backed up by strong operational
support. The silver lining in this situation for a large agency is
that, with years of handling a wide span of customer needs, agency
staff is conditioned to expect complications and provide quick,
effective, cost saving solutions which are really what the client is
looking for, to begin with.
Customisation is pointless with Care, in its twin manifestations.
Firstly, the marketer must assert that his agency cares about your
)
ES
Fill in the blanks: Activity
___________________
Prepare a slideshow on the
1. The travel service marketer is rarely selling a other marketing challenges.
___________________
……………………. product.
___________________
2. With business perspectives becoming increasingly
……………………. and pressure oriented, things are ___________________
changing. ___________________
___________________
Other Marketing Challenges
___________________
There are a number of specific factors which can be used to a great ___________________
advantage in marketing of an air travel service within the
___________________
distinctive scenario that exists in India. These factors are:
___________________
1.
2.
Low general awareness,
Intense competition,
UP
3. Poor infrastructure, and
4. Lack of control.
Intense Competition
On the other hand, the market is intensively competitive, with an
)
ES
___________________
Poor Infrastructure
___________________
The tools that travel agent has to work with are at best, primitive
___________________
and at worst, non-existent. In house computerisation levels in the
___________________ trade are very low, because given the abysmal margins available to
___________________ the agent, he fights shy of all investment that cannot guarantee
instant returns. Additionally, the agent is familiar with mega
___________________
reservation systems only through the pages of foreign trade
___________________ journals. On the other hand the available domestic service
___________________ infrastructure from our telephone systems to airplanes can keep
___________________
anyone guessing and missing.
ES
___________________
Value Add-ons in an Air Travel Agency
___________________
Value add-ons in an air travel agency are as follows:
___________________
A tie up with a credit card company for rupee payment in
___________________
India, and a hotel reservation system.
___________________
A tie up with authorized dealer in foreign exchange, to secure
the benefits of quick processing at minimum cost. ___________________
budgetary process.
The art of service recovery is also a very powerful tool in the hands
of the air travel marketer. As we have seen, a travel agent is
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ES
___________________ report, are not uncommon. A leading hotel chain in America
asserts that if ‘Room Service’ takes more than 10 minutes the
___________________
service is complimentary. If the marketer is in a position to commit
___________________
such quid pro quos, he should use it to his advantage.
___________________
As far as discounts, credit and complimentary service in general
___________________ are concerned, the agency policies must be clearly defined. The
___________________ marketer must make the initial pitch by forcefully highlighting
such benefits, keeping in mind what the competition has to offer.
___________________
He must be prepared for counter demands from the prospective
___________________
client, and be flexible enough, as dictated by circumstance.
___________________ Compulsions of high volumes and prestige play an important role
___________________ here. In securing a large Bank’s travel business, higher discounts
UP and longer credits than are usually offered by his agency, may be
justified if there is a strong chance of the goodwill rubbing off on to
the Bank’s commercial clientele, who may then swing their travel
business towards that agency. Offering special terms to powerful
trade bodies and associations may also pay-off in a similar manner.
It is considered both ethical as well sound business policy to check
out the prospective client’s record with the earlier agency-why is
he leaving them? An independent financial review and rating
helps.
On the other hand, the marketer, reviewing a client’s past
performance, must take into account sales volumes and payment
record. In re-negotiating contracts, one of the prime considerations
is whether it has been a profitable relationship for both the parties.
Look through any newspaper or magazine, and you will observe
that the advertising of services in this country constitutes an
infinitesimal segment of the total amount spend on product
)
ES
kit, is important; it can form the basis of the marketer’s initial
sales pitch. Similarly, in going for a very large account it may be ___________________
worthwhile to invest in an audio-visual presentation. For instance, ___________________
once a very prestigious Bangalore based client called for an AV
___________________
presentation and Mercury Travels won the account on the
strengths of AV presentation. Newspaper and magazine ___________________
Summary
The purpose of marketing is to create a customer. To do this, you
have to know who your customer is and can be. The customer
perceives a value to be received for his money, and this perception
determines his ‘Decision Variable’. The travel trade in India over
the last sixty years or so has grown fast, but in an unregulated
manner. Consequently, a confusing admixture of players exist on
)
the scene; the IATA Agent, the Non-IATA Agent, the GSAs and
PSAs.
The qualitative success of the marketing effort depends on how
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clearly the marketer understands the service levels his agency can
deliver, and the factors which make it distinct from its competitors,
such factors are both generic as well as specific. The generic factors
are the seven Cs; competence, credibility, confidence, consistency,
customisation, care and clout. The specific factors are more clearly
identifiable by both the marketer and the person he or she is trying
to convince. The travel trade in India is one of the fastest growing
Airport Customer Service
ES
___________________
The successful air travel service marketer is, therefore, a
___________________ professional who recognises the compulsions of the trade and is
___________________ able to convince the potential client as to why that client should
not do its own travel management, but use an air travel agency
___________________
instead.
___________________
___________________ Keywords
UP Travel Agent: Someone who sells or arranges trips or tours for
customers.
Unique Selling Proposition (USP): It is the factor or
consideration presented by a seller as the reason that one product
or service is different from and better than that of the competition.
Competence: Competence is the ability of an individual to do a job
properly.
Awareness: Awareness is the state or ability to perceive, to feel, or
to be conscious of events, objects, or sensory patterns.
Clout: A heavy blow with the hand or a hard object.
Further Readings
Notes
ES
Books ___________________
Fojt, Martin, (2006), Strategic Direction: The Airline Industry. ___________________
Emerald Group of Publishing
___________________
Martinez, Mario & Hobbi, Bob, (2009), Building a Customer
___________________
Service Culture: The Seven Service Elements of Customer Success.
IAP ___________________
___________________
Kossmann, Mario,(2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd. ___________________
___________________
Web Readings
___________________
http://blog.marketingforairlines.com/2009/09/strategic-marketing-
___________________
for-airports/
UP
http://www.amadeus.com/groundhandlers/docs/Amadeus-
Navigating-the-Airport-Of-Tomorrow-2011-EN.pdf
)
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) UP
ES
UNIT 15: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: Hartsfield-Jackson Atlanta International Airport
___________________
Hartsfield-Jackson Atlanta International Airport (HAIA) is the
world’s busiest passenger airport, serving more than 83 million ___________________
passengers per year. As part of its mission “to be the world’s best
___________________
airport by exceeding customer expectations,” HAIA has
continually enhanced its 5.8 million square-foot facility. Part of ___________________
UP
that effort involves ensuring clear, reliable communications
services for passengers and airport personnel to ensure a safe and
productive environment.
In 2000, HAIA management determined that the existing
network and telecommunications infrastructure was inadequate
to support the airport’s long-term vision. “When we looked at our
current infrastructure and considered our customer needs and
where we wanted to go with services, we found that there were
major gaps,” says Lance Lyttle, HAIA’s chief information officer.
“The airport did not have an airport wide, centrally managed,
infrastructure with the required technology and bandwidth to
support future required applications.” In addition, cellular
telephone and public safety wireless coverage was spotty, with
dead spots and poor reception plaguing certain parts of the
facility. Although some cellular carriers had deployed their own,
in-building wireless distribution systems to boost their signals,
other carriers relied on nearby outdoor cell towers.
As a result of the analysis, the airport embarked on a three phase,
four-year, $11 million telecommunications infrastructure upgrade
program that would bring state-of-the-art voice, video, and data
communications to every part of the airport for passengers,
)
ES
over a year to select, design, and implement a system that would
___________________ meet everyone’s needs. “We wanted a proven system that would
support multiple providers – a system that had the carriers’
___________________
confidence,” says Lyttle. “We actually had weekly meetings with
___________________ Cingular, Nextel, T-Mobile, metroPCS, Verizon and other carriers
during our evaluation of technology options to make sure their
___________________ requirements were met.” As with most in-building systems, the
deployment included on-site base stations from cellular carriers.
___________________
These base stations are located in the airport’s new
___________________ “telecommunications hotel,” and the wireless signals would be
propagated from them throughout the airport via a distributed
___________________ antenna system (DAS). Given the size of the facility, the HAIA
team wanted a DAS that could distribute wireless coverage
___________________ evenly, without signal loss, regardless of the distance from the
___________________
carrier base station. In addition, the team wanted a system that
could easily support the airport’s high customer volume and could
___________________ be cost-effectively deployed and upgraded to support additional
UP capacity and new wireless services.
The evaluation team eventually chose the InterReach Unison®
system. The Unison system uses a familiar hub-and-spoke
architecture, much like that of an Ethernet LAN. At HAIA, the
deployment involved eight separate Unison systems that included
36 Main Hubs, 96 Expansion Hubs, over 500 active Remote
Access Units (RAUs), and more than 700 ceiling-mounted
antennas. Due to its size (one of the largest systems in the world)
and a design change during deployment, installation and testing
of the Unison system took about six months. It went live in mid-
January 2006.
The Unison system now delivers clear, high-quality voice and
data services to every area of the airport, including ticket lobbies,
baggage handling areas, gates, and throughout the underground
passenger transportation system. It currently handles traffic for
all wireless subscribers as well as the airport’s public safety
workforce. With a current capacity of nearly 70,000 calls per hour,
HAIA’s travelers can use their time more productively for
untethered voice and data calling. Already, Verizon has deployed
its new 3G mobile data service (using EV-DO) for users of its
wireless laptop cards, who are enjoying connection speeds of up to
)
900 Kbps. The other carriers are planning high-speed data service
upgrades as well. The new system has also eliminated coverage
gaps for security personnel, ensuring continuous contact in
elevators, stairwells, or anywhere else in the facility. Now at the
completion of its telecommunications upgrade program, HAIA
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Questions:
Notes
ES
1. Study and analyse the above case.
2. Write down the case facts. ___________________
Source:http://www.te.com/content/dam/te/global/english/industries/wireless-adc/knowledge- ___________________
center/documents/wireless-hartsfield-atlanta-airport-105917ae.pdf
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 16: Understanding the Customer
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-IV
)
(c
Airport Customer Service
Detailed Contents
Notes
ES
UNIT 16: UNDERSTANDING THE CUSTOMER
___________________ Objectives of Customer Service
Introduction Benefits of Customer Service
___________________
What is a Customer? Role of a Customer Service Representative
___________________
The High Cost of Losing a Customer
___________________ UNIT 19: CRM IN SERVICES
Customer Expectations of Service
___________________ Introduction
Customer-Driven Airline
___________________ Customer Retention through Relationship
Marketing
UNIT 17: IMPACT OF FRONT LINE STAFF
___________________
Introduction Components of CRM
___________________
Behind the Front-Line Steps of CRM
___________________
On the Front-Line CRM Business Cycle
___________________ Airport Excellent Customer Service
Introduction
UP
UNIT 18: CUSTOMER SERVICE
Notes
ES
Activity
___________________
Understanding the Customer Prepare a chart describing
what is a customer?
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
What is a Customer?
We are all customers, almost every day of our lives, whether we
buy something in a shop or retail outlet, or avail of a service. But
Airport Customer Service
ES
___________________
1. Customers are the most important people in any Organization.
___________________ No customers = no airline.
___________________ It’s as simple as that – Robert Crandall of American Airlines
___________________ has said that it is the last 2 passengers on every flight who
make the difference between tremendous profits and
___________________
staggering losses for an airline. Yet, it is the front-line staff
___________________ who determines the success of whether or not these passengers
___________________ board: the extra effort to find lost passengers, the reservations
___________________
staff who sells a little harder favour by asking for help, not the
other way around – your airline is not doing the customer a
___________________
favour by providing service.
___________________
UP 2. Customers are not dependent on the airline rather; the airline
is dependent on them. As we said earlier, customers have a
choice. They are completely free to choose to fly with another
carrier, use other means of transport or communication or
simply stay at home.
3. Customer are not people who interrupt your work, they are the
purpose of it.
4. Customers are doing your airline a favor by asking for help,
not the other way around your Airline is not doing the
customer a favor by providing service. The only reason you
have the opportunity to provide service is because the
customer asks you to.
5. Customers do not exist as outsiders to the airline; they are an
essential and integral part of it.
6. Customers are not cold statistics or numbers on balance
sheets. They have feelings and emotions and deserve a high
)
We all know that customers are not always right, but there is
no gain for you in telling them that they are wrong. Whether
the customer is right or wrong is not the point. The customer is
always a customer and you want to keep him. Never try to win
an argument with him.
UNIT 16: Understanding the Customer
ES
Activity
are limits which may prevent you from providing the customer ___________________
Prepare a slideshow on the
with what he wants. But these limits should never prevent you topic high cost of losing a
___________________
customer.
from responding positively in order to bring about customer
satisfaction by providing a high standard of customer service. ___________________
treatment. ___________________
10. Finally, to reinforce point 1, customers are the lifeblood of your ___________________
airline, and any other profit making organization. The vital ___________________
question which must be asked is - ‘Did the customer enjoy the
___________________
experience’? A positive response to this question from the
customer is more likely to ensure repeat business than a ___________________
ES
___________________ (Over 10% will tell more than 20 people)
___________________ Let us do some simple calculations in order to weigh up the
___________________ significance of these two points:
of apathy or inattention.”
However, it’s not all bad news, as the following figures will reveal:
70% of the customers who complain will do business again, if
an apology is received,
Of the customers who complain, 70% will do business again if
the problem is resolved to their satisfaction,
UNIT 16: Understanding the Customer
ES
Each happy customer will tell others about the experience. Activity
___________________
Prepare a presentation on
And the best news is that customers will pay in proportion to the customer expectations of
___________________
service.
degree of satisfaction they receive. This makes sense – a customer
___________________
who feels that he has been treated badly is hardly going to pay
money for the ‘privilege’ of receiving that level of customer service ___________________
a second time. ___________________
___________________
1. Organizations will spend literally hundreds of millions
of dollars to attract ……………….. customers. ___________________
ES
___________________
A lot of wasted money and customer dissatisfaction.
___________________
The following ‘EPS’ formula for Customer Service states the point
___________________ even more clearly:
___________________ Expectations
___________________
Performance
___________________
Satisfaction
___________________
Let us put this formula into action, using two different customers
___________________ with different service expectations:
___________________
Example 1:
___________________
UP Dinner at the Hotel Magnificent
Recognition
Fastest service
Mispronounced name
Satisfaction ? No
The second example has the same level of service, but with a
different set of customer expectations. This time the result is a
satisfied customer.
Example 2:
)
Slow service
Actual Performance Above average food
Mispronounced name
Five minutes delay
Satisfaction ? Yes
UNIT 16: Understanding the Customer
In theory, if a customer has never dealt with the airline before, and
Notes
ES
has had no bad experiences with it, he should approach it for the
first time with relatively high expectations. However, as we have ___________________
seen, even when a customer has not had personal dealings with a ___________________
company, he is often acquainted with someone who has. Therefore,
___________________
in practice, the customer’s expectations of service are likely to have
been prejudiced – either positively or negatively. He has been ___________________
influenced by the way in which the airline has dealt with others in ___________________
the past. ___________________
Apart from anecdotal evidence passed on to him by someone he ___________________
knows, there are a number of different factors which influence the
___________________
customer’s evaluation of service once he has dealt with the airline
in person. He appraises the standard of customer service offered by ___________________
the airline (or any company), on the basis of the following: ___________________
Efficiency
UP
Was the service I received fast, accurate and competent?
Confidence
Did the person I dealt with know what he was doing, or did he
seem unsure of himself?
Helpfulness
Was the member of staff who handled my business willing to
answer all of my queries, or did he seem to find them annoying?
Did he act like I was preventing him from doing his job?
Personal Interest
Was the staff member who booked my journey interested in
helping me, or was I just another faceless customer who had to be
dealt with?
)
Reliability
Can I feel confident that the staff member did what I asked him to
do, or will I have problems with my travel arrangements when I
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take my trip?
The above factors are internal. There are other, external factors
which influence customer expectations of service, but, as the name
suggests, they are outside the standard of customer service
provided by a member of the airline’s staff. One of them is the
anecdotal evidence of friends and family discussed earlier. The
other is media influence – the type and amount of media coverage
Airport Customer Service
ES
Activity
___________________ standard of customer service from an airline. This benefits both
Write an article on customer-
driven airline. parties. As the old Scottish proverb goes, “Looking after your
___________________
customers is not merely good manners - it’s good business too.”
___________________
COMPANY PRESIDENT
Wholesalers
Retailers
Customers
ES
several different levels or tiers. For instance, you will generally
find the company president and vice-president(s) at the top of the ___________________
structure, followed by; upper management (e.g. marketing director,
___________________
sales director), middle management (e.g. heads of departments),
___________________
lower management (e.g. line managers, foremen) and at the
bottom, the rest of the staff. If we were to represent this structure ___________________
in diagrammatic form, it would resemble a pyramid: ___________________
___________________
UP
Figure 16.2: Customer is King
CUSTOMERS
SERVICE PROVIDERS
)
SUPERVISORS
MANAGERS
PRESIDENT
ES
structures, one of which is only influenced indirectly by the
___________________ customer, who is remote from top management, and the other
___________________ which is responsive to the customer, who is integrated into a
flatter company structure.
___________________
___________________
UP Summary
Customers are not dependent on the airline rather; the airline is
dependent on them. As we said earlier, customers have a choice.
They are completely free to choose to fly with another carrier, use
other means of transport or communication or simply stay at
home. If you know why the customer feels dissatisfied, you can
take steps to remedy the situation. It is also very easy to believe
that because no customers have complained that there are no
dissatisfied customers.
A company that recognizes that its only true assets are satisfied
customers, all of whom expect to be treated as individuals and who
won’t select us as their airline unless we do just that.
Keywords
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ES
directly connected to an organization, and is usually (but not
necessarily) internal to the organization. Internal customers are ___________________
usually stakeholders, employees, or shareholders, but the ___________________
definition also encompasses creditors and external regulators.
___________________
Privilege: A special advantage, immunity, permission, right, or
___________________
benefit granted to or enjoyed by an individual, class, or caste.
___________________
Expectation: Expectation is what is considered the most likely to
___________________
happen.
___________________
___________________
1. Define customer.
___________________
2.
UP
What can be the cost of losing a customer? Is it high or low,
discuss?
3. What are the expectations that customers have from a service
provider?
4. What is the suitable organization structure for a customer
driven airline?
5. How can a service provider responds to its customer needs?
Further Readings
Books
Fojt, Martin (2006). Strategic Direction: The Airline Industry.
Emerald Group of Publishing.
Martinez, Mario, Hobbi, Bob, (2009). Building a Customer Service
Culture: The Seven Service Elements of Customer Success. IAP
)
Web Readings
http://en.wikipedia.org/wiki/Customer
http://blog.marketingforairlines.com/2009/09/strategic-marketing-
for-airports/
http://www.amadeus.com/groundhandlers/docs/Amadeus-
Navigating-the-Airport-Of-Tomorrow-2011-EN.pdf
(c
) UP
ES
UNIT 17: Impact of Front Line Staff
Notes
ES
Activity
Write___________________
Impact of Front Line Staff an article on the impact
that front line staff has on
___________________
customer while behind the
front line.
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
___________________
The aim of this unit is to outline the impact of front-line staff on
___________________
UP
the quality and effectiveness of customer service and consequently,
on the overall success of the airline.
ES
In order to best create a service environment, all staff should
___________________ understand the importance of effective service from induction
___________________ training onwards. Clear standards need to be highlighted and
communicated during training. Managerial and supervisory skills
___________________
are also very important and must not be neglected. Managers set
___________________
examples for their staff. Not only must managers know of the
___________________ company mission, but they must also understand how to achieve it,
___________________ and believe that it can be done. Equally, they must be able to
explain these objectives in a way which makes sense to their
___________________
people. From the company strategy, goals and mission, they need
___________________ to formulate a specific mission for their own department to strive
___________________ towards in support of the overall company aims. Supervisors while
having the same skills and knowledge as their staff, require a more
___________________
UP thorough understanding of company policy and procedures. This
allows them to provide proper support for all their staff, especially
those in contact with the customer.
However, the skills and knowledge necessary to give and maintain
a consistent service reputation may sometimes be undermined by
staff attitudes. In this instance, again, the managers and
supervisors bear much responsibility. Poor training often gives rise
to attitude problems. It is up to managers and supervisors to
recognize this and aim to resolve it.
Still greater problems can arise when staff has been taught how to
behave in theory, but see that those in supervisory or managerial
positions seem to base their behaviour on a different set of rules or
standards. Many employees follow the example of those slightly
higher up in the company. Teaching quality, without practicing it,
confuses the staff, and leads to disillusionment and lack of effort.
Managers must believe in commitment to the customer, which is
)
ES
___________________
Involvement of Staff
___________________
Staff involvement in continuous improvement is highly advisable.
Most people have a ‘need to achieve’, and enjoy feeling more ___________________
Customer service does not just involve the people who deal directly
with the customers. People who work in support areas (‘backroom
people’) may easily lose sight of the need to meet customer
expectations every time. But if support staff is not customer
focused, it becomes impossible for front-line people to be totally
effective customer service providers. Front-line people need the
same standard of service from support staff as customers need
Airport Customer Service
ES
Activity
___________________
Prepare a presentation on the is’.
impact of front line staff while
___________________
remaining on the front line. Check Your Progress
___________________
Fill in the blanks:
___________________
1. Poor training often gives rise to ..………………..
___________________ problems.
___________________
2. Front-line people need the same standard of service
___________________ from ..……………….. staff as customers need from the
___________________ company as a whole.
___________________
On the Front-Line
___________________
UP In the above section, you have studied that front-line staff must be
‘highly motivated individuals’ with excellent ‘people skills’. We also
made this statement – ‘They are the ones who influence the
customer’s decision to return - or not to return’. We now add a
third point – successful airlines inevitably have a customer focus,
rather than a staff or a technical one. The strength and
effectiveness of this ‘customer focus’ is heavily reliant on the
standard and quality of customer service provided by the front-line
staff. This is not an empty statement. Front-line staff have an
extremely important and influential contribution to make to the
success of an airline. Both customers and staff are VIPs but in
different ways. The customer is a very important person. Every
member of the front-line staff in an airline, is a very influential
person, Front-line staffs are influential, because it is within their
power to do the following:
To gain or lose customers,
)
competitors,
To look forward to each encounter with customer, or to resent
the intrusion every time someone calls for help - each customer
contact situation should be looked upon as an opportunity, not
an interruption,
UNIT 17: Impact of Front Line Staff
ES
satisfaction, or displeasure, with the airline and its service,
and ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
Figure 17.1: Customer and Staff
the other hand, ineffective front-line people can, over time, slowly
but surely erode an airline’s customer base and decimate its
business. The secret to success on the front-line is to think of
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ES
___________________
It is extremely important to remember that the critical element in
___________________ the success of an airline is what goes on between front-line staff and
___________________ customers. This is sometimes referred to as ‘the last meter’. In
other words, despite having spent considerable amounts of money
___________________
on marketing and advertising in order to get the customer to travel
___________________ with the airline, it’s what happens in ‘the last meter’ (about 3 feet)
___________________ between the airline employee and the customer that makes all the
difference.
___________________
___________________
It is also important to recognize that there are limits realistically
speaking, it is not always possible to do what the customer wants,
___________________
but it is always possible to respond to him. In a case where the
___________________ customer does not get what he originally wanted, he may still be
UP satisfied, if he received an excellent standard of customer service:
Customer service is being served, and
Customer satisfaction is feeling served
It is the goal of the front-line staff to ensure that customer’s feel
served; for example, in his book, Moments of Truth, (published by
Harper & Row, Inc.), Jan Carlzon recounts a story regarding a very
important businessman, a regular customer of SAS, who was late
for his flight. He radioed from his business jet to Kennedy airport
to tell SAS that he was going to be a few minutes late for the
Stockholm flight. Although he didn’t actually ask them to hold the
flight, this was the implication. The flight was not held.
However, on arrival at the airport, he was told that he had been
booked on a KLM flight leaving half an hour later. What’s more, it
was the same type of aircraft and he had been given the same seat
number he always booked with SAS. The result was twofold. The
)
customer had no cause for complaint, and SAS had not tarnished
its reputation for punctuality. If excellent customer service were
not such a high priority for SAS, things would probably not have
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ES
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Effective front-line staffs have the ability to keep
___________________
………………… customers.
___________________
2. The secret to success on the front-line is to think of
yourself as a ‘………………… provider’. ___________________
___________________
Summary ___________________
Customers and their treatment are becoming the main focus of the ___________________
business world. The person who approaches in search of a product ___________________
UP
or service is readily recognizable as a customer - an external one. .
From the company strategy, goals and mission, they need to
formulate a specific mission for their own department to strive
towards in support of the overall company aims. Managers must
believe in commitment to the customer, which is followed through
by their actions – talking with and listening to the customer,
acting on what they learn and instilling enthusiasm in their staff
to do the same.
Front-line people need the same standard of service from support
staff as customers need from the company as a whole. Every
member of the front-line staff in an airline is a very influential
person.
Keywords
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ES
intellectually to a course of action or to another person or persons.
___________________
Cog in the Machine: It refers to one part of a large system or
___________________
organization.
___________________
Crisis: A crisis is any event that is, or expected to lead to, an
___________________ unstable and dangerous situation affecting an individual, group,
___________________ community, or whole society.
___________________
___________________
Questions for Discussion
___________________ 1. Why training is necessary for front-line staff?
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario & Hobbi, Bob, (2009), Building a Customer
Service Culture: The Seven Service Elements of Customer Success,
IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
)
Web Readings
(c
http://humanresources.about.com/od/customerservice/a/serve_custo
mers.htm
http://blog.marketingforairlines.com/2009/09/strategic-marketing-
for-airports/
http://www.amadeus.com/groundhandlers/docs/Amadeus-
Navigating-the-Airport-Of-Tomorrow-2011-EN.pdf
UNIT 18: Customer Service
Notes
ES
Activity
Write___________________
Customer Service a short report on the
concept of customer service.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction ___________________
UP
In previous units, we have discussed staff who work behind the
front-line, and staff who work on the front-line (i.e. service
providers) and their power to either keep or lose customers. Next,
we looked at the customer, the high cost to the airline of losing
him, and what his expectations of customer service are.
Lastly, we described the structural difference between a product-
driven company and a customer-driven company. We shall now
examine the concept of customer service itself.
customer enjoys his experience and likes flying with the airline, so
that he will use it again in the future. The service he receives must
be friendly polite, courteous and helpful. Service providers cannot
have an ‘off-day’, as their first chance to make a good impression
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ES
___________________ airline’s staff, he forms or consolidates his opinion as to whether or
not he is satisfied with the airline itself.
___________________
___________________ Even one unsatisfactory encounter can make him decide to switch
to another carrier. The customer often blames the airline for
___________________
problems or bad experiences in areas which are outside the
___________________ airline’s control e.g. problems with airport security or customs.
___________________ When you actually calculate just how many of these ‘moments of
___________________ truth’ occur every single day, it is clear that the necessity for an
___________________
excellent standard of customer service is vital. The following
quotation refers to SAS, but its message is equally relevant to any
___________________
airline, anywhere in the world:
___________________
UP “Last year, each of our 10 million customers came in contact with
approximately five SAS employees, and this contact lasted an
average of 15 seconds each time. Thus, SAS is “created” 50 million
times a year, 15 seconds at a time. These 50 million “moments of
truth” are the moments that ultimately determine whether SAS will
succeed or fail as a company. They are the moments when we must
prove to our customers that SAS is their best alternative.”
There are many airlines in the market place, each offering
products which are barely distinguishable to the average customer.
Very often, the only factor separating one airline from the next, in
the customer’s opinion, is the standard of customer service, or the
competitive edge we mentioned before. If this edge is to be
maintained, customer service must be first-class. Paying attention
to the customer and responding to his needs is the key to success.
Customer service is part of the overall service package, or set of
related items, which the airline offers to the customer. An example
)
ES
peripheral to the standard of customer service offered by the ___________________
airline. Peripheral services are important in other industries, as
___________________
we shall see shortly, and are frequently a deciding factor when
customers make their final decision, for example regarding which ___________________
UP
international passengers on a flight home.
Allowing international passengers to eat according to their
own individual timetable.
Allowing international passengers to choose their in-flight
meal over the phone when they ring in to confirm their
seating.
Offering older passengers the names and telephone numbers of
medical and legal services overseas which speak their own
language.
Using the PNR (passenger name record) file, to generate
telephone calls to international passengers’ homes, saying that
their flight had arrived safely.
Offering video tapes to leisure travellers, containing
information which they may wish to know about travel,
customs, clothing, medication, etc. in their destination country.
)
ES
Activity
___________________
Prepare a chart on objectives For example, while two hotels on the same street charge similar
of Customer Service.
___________________ prices, and have similar bedrooms with comfortable beds,
___________________ televisions, mini-bars and bathrooms, one of them may also have a
gymnasium, while the other has not. Therefore, a customer who
___________________
likes to continue his fitness routine while abroad will probably
___________________ choose the hotel which has a gym over the hotel which has none.
___________________ He has made his decision on the basis of a peripheral feature,
rather than on the core. Similarly, a customer may be trying to
___________________
decide which new car to buy. He has eliminated various models
___________________
and makes, until he is down to a choice between one of two cars,
___________________ which are almost identical in price and size. Being a music lover,
___________________ he may base his final choice on the standard of the in-car sound
UP system. Again, the final choice is based on a peripheral feature,
rather than on the core.
The airline industry could easily be described as being highly
technical. It relies on technological systems, procedures, facilities
and equipment in order to function. It would be very easy to let the
technology take over. This cannot be allowed to happen in any
airline which strives to have a customer focus - do not let
technology rule.
ES
flying with your airline, as opposed to some other carrier. Activity
Customer service helps to ‘sell’ the airline, and ___________________
Prepare a slideshow of
benefits of customer service.
To add to airline revenue by providing a standard of customer ___________________
holes”.
Having said all that, the ways in which customer service benefits
the customer, psychologically and emotionally, are very hard to
quantify. Such benefits are perceived on the basis of a highly
varied and complex set of values. Some of these values are more or
less universal, while some are extremely personal, and differ from
Airport Customer Service
ES
Activity
___________________
Write an article on the role reminded, whereas customer B might be quite happy to remind
of a customer service staff of his name whenever he is asked.
___________________
representative.
ES
They communicate with customers through a variety of means—by ___________________
telephone, by e-mail, fax, or in person. Most customer service
___________________
representatives use computers and telephones extensively in their
work. ___________________
UP
Records details of enquiries and action taken,
Resolves customers' complaints,
Contacts customers to respond to inquiries,
Refers unresolved customer grievances to designated,
departments for further investigation,
Prepares change of address records,
Solicits sale of new or additional services or products, and
Assists a customer to solve technical problems related to the
products/services.
To be an effective Customer Service Representative you would
need to be a good communicator with good interpersonal skills. A
positive attitude and a commitment to help can take a customer
service representative very far. Efficient and memorable customer
)
ES
___________________ Fill in the blanks:
___________________ 1. ………………….. and memorable customer care requires
___________________ credibility, accessibility, reliability and excellence
(CARE) in service.
___________________
2. Most customer service ………………….. use computers
___________________
and telephones extensively in their work.
___________________
___________________
Summary
___________________
Customer service provides a psychological or emotional benefit to
___________________ the customer - it aims to make him feel happy, and confident that
___________________ his needs have been responded to. Front-line staff can also feel the
UP psychological benefits of providing good customer service. Poor
service will inevitably fail to elicit positive feedback from the
customer.
Where a poor standard exists, the morale and emotional wellbeing
of front-line staff will suffer. When a high standard exists, their
jobs will be more enjoyable on a day-to-day basis.
On a larger scale, a high standard of customer service also benefits
the airline as a whole. The quality of customer service is directly
related to the future survival, growth and financial prosperity of
the carrier. If poor quality service drives customers to choose
another airline, profits will suffer.
Keywords
Customer Service Representative: The brand ambassador of the
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ES
___________________
Questions for Discussion ___________________
___________________
4. What is the role of a customer service representative in
providing service to customers? ___________________
___________________
Books
UP
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario & Hobbi, Bob, (2009), Building a Customer
Service Culture: The Seven Service Elements of Customer Success,
IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
Aviation. Ashgate Publishing Ltd.
Web Readings
http://www.ehow.com/about_5439213_objective-customer-
service.html
http://businesscasestudies.co.uk/morrisons/developing-competitive-
advantage-through-customer-service/the-benefits-of-customer-
)
service.html#axzz2PrMheJ48
(c
(c
) UP
ES
UNIT 19: CRM in Services
Notes
ES
___________________
CRM in Services ___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction
UP
Management is a broader concept than marketing, because it
covers marketing management, manufacturing management,
human resource management, service management, sales
management, and research and development management. Thus,
CRM requires organizational and business level approaches –
which are customer-centric – for doing business rather than simply
a marketing strategy. CRM involves all of the corporate functions
(marketing, manufacturing, customer services, field sales and field
service) required to contact customers directly or indirectly. The
term “touch points” is used in CRM to refer to the many ways in
which customers and firms interact.
CRM is a business strategy that goes beyond increasing
transaction volume.
Its objectives are to increase profitability, revenue, and customer
)
ES
Activity
For a service firm, its marketing philosophy should be:
___________________
Prepare a presentation on
customer retention through To acquire customers
___________________
relationship management.
___________________ To retain customers
___________________
___________________
UP 5% loss of
Customers
95% Retention
10% loss of
Customers
90% Retention
Rate Rate
AFTER 14 YEARS:
SERVICE FIRM SERVICE FIRM
‘A’ ‘B’
DOUBLES ITS HAS THE SAME
CUSTOMER BASE CUSTOMER BASE
acquisition, etc.), a firm, which has half the customer leakage than
its rival, will have double the market base in fourteen years. Or
putting it in a different way, if two service firms intend to have the
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ES
It would be very difficult and impracticable for a service firm to be ___________________
all things to all people; instead, it should concentrate on those ___________________
customers who yield maximum profits, by giving them maximum
___________________
customer satisfaction. This segmentation will help the service firm
optimize its limited resources and get better return on capital ___________________
between customer retention (in other words, customer loyalty) and ___________________
UP
profitability. This is explained in a model called the service-profit
chain.
Profit and
growth
Customer
loyalty
)
Customer
satisfaction
Service
value
Employee
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productivity
Employee
loyalty
Employee
satisfaction
ES
Activity
5. Employee productivity is linked to employee loyalty.
___________________
Prepare a chart on the
components of CRM. 6. Employee loyalty is linked to employee satisfaction.
___________________
___________________
7. Employee satisfaction is linked to internal quality of work life
(internalizing the firm’s brand).
___________________
The service-profit chain model has certain limitations that need to
___________________
be considered before adopting it wholeheartedly. The limitations of
___________________ this model are:
___________________
Relationship between satisfaction and loyalty is not always
___________________ linear.
___________________ The relationship depends on the type of industry. Where the
___________________ choices for the customer are very high, the relationship is very
UP strong and customer migration is possible; in monopolistic
competition (utilities, public transportation, government/
public service, etc.), the relationship is weak.
Components of CRM
CRM consists of three discrete components:
)
Customer,
Relationship, and
(c
Management.
CRM tries to achieve a ‘single integrated view of customers’ and a
‘customer-centric approach’ by judiciously blending these three
factors.
UNIT 19: CRM in Services
Customer
Notes
ES
The customer is the only source of the company’s present profit
and future growth. However, a good customer, who provides more ___________________
profit with less resource, is always scarce because customers are ___________________
knowledgeable and the competition is fierce. Sometimes it is
___________________
difficult to distinguish who is the real customer because the buying
decision is frequently a collaborative activity among participants of ___________________
Management
CRM is not an activity only within a marketing department.
Rather it involves continuous corporate change in culture and
processes. The customer information collected is transformed into
corporate knowledge that leads to activities that take advantage of
the information and of market opportunities. CRM requires a
)
Steps of CRM
Notes
ES
Activity
CRM extends itself from customer acquisition to customer
___________________
Prepare a chart on the steps
of CRM. retention to customer delight. The important steps have being
___________________ discussed below:
___________________
Identifying the Right Customer
___________________
The key here is right customer segmentation. Many marketers
___________________
have failed to realize that the old models and theories
___________________ of segmentation have to be changed dramatically. The
___________________ segmentation criteria need to change from conventional
demographic/psychographic segmentation to need-based
___________________
behavioural segmentation.
___________________
This will lead to the right definition of the right target customer.
___________________
UP This paradigm shift in segmentation criteria is needed because the
conventional segmentation criteria are losing their relevance with
the evolution of the customer. Consumer behavioural variables are
more relevant and actionable and can help in the right targeting.
Hence marketers can develop sustainable business models and can
differentiate themselves from others by using high-level consumer
behavioural variables.
the segments.
Marketers need to lay down systems and processes (which can be
very simple formats and not necessarily require capital-intensive
(c
ES
Activity
customer-centric but also lead to high profitability. Pleasing the Prepare a slideshow on CRM
___________________
customers should not be at the cost of hurting the company’s business cycle.
___________________
bottom line.
___________________
Check Your Progress ___________________
Fill in the blanks:
___________________
1. Many marketers lose ……………….. focus in their ___________________
efforts to please the customer.
___________________
2. Consumer behavioural ………………….. are more
___________________
relevant and actionable.
___________________
ES
Activity
___________________
Write an article on airport Primary research to capture needs and attitudes.
excellent customer service.
___________________
Customer valuation to understand profitability, as well as
___________________ lifetime value or long-term potential. Value may also be based
___________________ on the customer’s ability or inclination to refer other profitable
customers.
___________________
Customers need to see that the company is differentiating between
___________________
service and communications based on what they have learned
___________________
independently and on what the customers have told them.
___________________
Develop and Customize
___________________
In the product-focused world of yesterday, companies developed
___________________
UP products and services and expected customers to buy them. In a
customer-focused world, product and channel development have to
follow the customer’s lead. Organizations are increasingly
developing products and services, and even new channels based on
customer needs and service expectations.
ES
Excellent Customer Service needs to be focused on your airport’s ___________________
ability to exceed the needs and expectations of your passengers (or ___________________
customers). It is this ability to consistently match its customers’
___________________
perception that their needs and expectations that will differentiate
your airport from your competitors. ___________________
___________________
Excellent Customer Service is crucial to your ability to target
strategic growth opportunities. You’ll be able to compete and win ___________________
beyond price, features and specifications. Furthermore it improves ___________________
your bottom line by reducing waste and unnecessary costs when
___________________
you focus on actions that generate value for your customers.
___________________
Excellent customer service is a particular challenge for airports.
___________________
UP
Although airports are responsible for the delivery of services
within the entire airport campus, the customer often holds the
airport accountable for the level of service, even though it could be
another service provider related issue. Recognizing this reality,
airports must provide an airport-wide approach to customer
service training for all airport employees, as well as for tenants
and other service providers. Excellent customer service is the key
driver to achieving the benefits that global service brands
regularly enjoy.
In our view, airports need to consider a Passenger Experience
Index as the "Passenger First" starting point to create a customer
services framework. This encompasses the complex service delivery
at the many airport touch points, data collection and flow and
related stakeholders.
Excellent customer service begins with a champion to step back to
gain an holistic overview of the airport’s organizational processes,
)
ES
___________________ Fill in the blanks:
___________________ 1. Excellent customer service is a particular
___________________ …………………. for airports.
___________________
Summary
___________________
CRM is a business strategy that goes beyond increasing
___________________ transaction volume. Its objectives are to increase profitability,
___________________ revenue, and customer satisfaction. To achieve CRM, a company-
UP wide set of tools, technologies, and procedures promote the
relationship with the customer to increase sales.
It is more expensive to acquire customers than retain customers.
But customer retention becomes a challenge in the era of
heightened competition and decreasing customer loyalty. Various
researches point out to the fact that customer acquisition is five to
ten times more expensive than customer retention.
CRM consists of three components: customer, relationship and
management. The customer is the only source of the company’s
present profit and future growth. The relationship between a
company and its customers involves continuous bi-directional
communication and interaction. The relationship can be short-term
or long-term, continuous or discrete, and repeating or one-time.
CRM is not an activity only within a marketing department.
Rather it involves continuous corporate change in culture and
processes. The customer information collected is transformed into
)
Keywords
Notes
ES
Conformance: Delivery quality meeting design standards.
___________________
CRM: Managing of prospects all the way through the entire sales
___________________
process and after.
___________________
Customer Lifetime Value: The profitability of a customer over
the period of a business relationship; can include multiple ___________________
Further Readings
Books
(c
ES
Aviation, Ashgate Publishing Ltd.
___________________
___________________
___________________
___________________
) UP
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UNIT 20: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: How Social Media is Enhancing Airport Customer
Service ___________________
___________________
Customer service, guest relations, passenger experience; No
matter what your specific airport calls it, it is a major component ___________________
of airport operations. This segment of this Simpli-Airports Series
focuses on Customer Service and how your airport can benchmark ___________________
UP
against what others are doing in the social space and use that
information as a guidepost for future social growth.
While more than half of the airports surveyed for the recent
SimpliFlying Social Media Outlook Report are unsure about the
specific return from their social media investment, most airports
have mapped the value of their social media performance to
business goals. The top goals were Brand Engagement, Customer
Service and Revenue.
92.7% of the airports surveyed noted that Customer service is a
prominent business driver when it comes to social media.
The biggest challenge faced by airports surveyed for in the
aforementioned study is the insufficient allocation of resources to
social media. The next biggest challenge is the lack of budget,
which often goes hand-in-hand. So how does an airport that is
aiming to increase customer service through social media obtain
that goal when resources are seemingly lacking?
Resource Identification + Allocation = Social Customer Service
Some of the airports that are currently dedicating resources to
social media with a focus on customer service include the
Portland International Airport (PDX, Portland, OR) and the
)
ES
responding to Tweets just as they would to phone calls. In this
___________________ Simpli-Airports segment, we will be exploring a case study
specific to the Port of Portland/Portland International Airport.
___________________
Simpli-Airports Series: PDX Social Customer Service
___________________
After working with a few airports on integrating social media
___________________ (namely Twitter) into their customer service response plans, I was
quite intrigued to hear Donna Prigmore from the Port of Portland
___________________ and PDX Airport speak at the recent AAAE Social Media Summit.
___________________ Donna Prigmore shared how the Portland International Airport
launched an airport Twitter program after hearing of the affects
___________________ of the Lambert – St. Louis International Airport Tornado. In the
midst of this crisis, Lambert – St. Louis’s airport Twitter handle
___________________
grew by over 4000 followers in just one hour. Mobile phones were
___________________ the only way for people to communicate with the airport, and
many travellers and loved ones went right to Twitter. This
___________________ prompted Prigmore and her team to work develop a system and
UP program for a fully functioning “Tweeting Call Centre.”
Since that time, Donna and her staff have turned a 14 member
customer relations department into a “Tweeting call centre” with
real-time coverage from 6am-11:30pm daily. The attached case
study showcases the way in which they have structured and
defined how and when Twitter is used within their organizational
structure and what the protocols are for responses.
With the implementation of Twitter assessment tests, she was
able to both train and test all of her staff for Twitter competency
and know-how (as well as interest). Ten of the 14 call centre staff
members Tweet, with shifts set up to include one Twitter “Lead”
and one “backup” to monitor and respond to customer service
tweets as they come in. This team setup has Donna’s team
Tweeting with the expectation that the typical airport Tweeter is
expecting an immediate response. The team has a goal of 5-10
minute response times.
Questions:
1. Study and analyse the above case.
2. Write down the case facts.
)
Source: http://simpliflying.com/2012/case-study-how-social-media-is-enhancing-airport-
customer-service/
(c
UNIT 21: Dealing with Complaints
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-V
)
(c
Airport Customer Service
Detailed Contents
Notes
ES
UNIT 21: DEALING WITH COMPLAINTS
___________________ UNIT 23: AIRPORT SHOPPING
Introduction Introduction
___________________
Just Cause for Complaint Non-aviation Business
___________________
Lack of Complaints: A Good Thing? Rising Expectations for Shop Owners
___________________
Why Do Customers Complain? Airport Business Model
___________________
The Complaints System
___________________ UNIT 24: AIRPORT SECURITY
Why do Airports need Customer Complaints?
Introduction
___________________
UNIT 22: BRANDING STRATEGY FOR CUSTOMER History of Airport Security
___________________
SERVICE AT AIRPORTS
Meaning of Airport Security
___________________
Introduction
Airport Security in India
Excellent Customer Service and Branding Mean for
___________________
Airports
UP
Can more ‘Typical’ Airports Really Establish a
Unique Brand?
Security at Commercial Service Airports
Notes
ES
Activity
___________________
Dealing with Complaints Write an article on just cause
for complaint.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
UP
The aim of this unit is to discuss the handling of complaints in a
quality service environment.
ES
___________________ in the organization reverting to the state of affairs which prevailed
before the service strategy began.
___________________
ES
Activity
product, and personnel (all dependent on the full details) are ___________________
Prepare a presentation on
legitimate complaints. Lack of Complaints: A Good
___________________
Thing?
Knowing what constitutes a legitimate complaint has to be
___________________
supported by your understanding of how it is to be handled, and
what compensation, if necessary, company policy offers. Is there a ___________________
special department for dealing with complaints? If not, where are ___________________
complaints dealt with? How are they recorded and processed? Does ___________________
your organization have clear guidelines for the principle areas of
___________________
complaint? And what is the policy with regard to compensation,
replacement, and authority levels possessed by each member of ___________________
staff? ___________________
ES
___________________ aim for perfection in a much more enlightened manner. Rather
than being regarded as failure, complaints should be viewed as a
___________________
chance to right what is wrong.
___________________
Once you are aware of the problems which exist, from the
___________________
customer’s point of view, you can attend to, and learn from them.
___________________ The pivotal point in the preceding sentence is ‘from the customer’s
___________________ point of view’. Without input from customers every organization is
speculating as to what is expected of its product or service.
___________________
___________________
Management may consider clean washroom facilities on airplanes
to be of major importance. From the customer’s perspective
___________________
cleanliness is taken for granted. It is only when this standard is
___________________ neglected that complaints result. Therefore, if your organization is
UP to close the gap between how it thinks it is perceived, and how it is
actually perceived by the customer, it is essential that attention is
paid to what the customer is telling you. Complaints are an
invaluable insight into customer perception of your service
package, and must be treated as such. Ignore them at your peril!
Faults, as perceived by the customer, determine the number of
complaints generated. However, there is another, often overlooked
factor - the manner in which the customer expects complaints to be
handled. Are complaints acknowledged and responded to, or is
there a tendency to ignore them? If complaints are poorly handled
the customer is likely to go elsewhere next time - you obviously do
not care enough to make him wish to return! Are there long,
complicated forms to be completed, does the customer feel as
though he should never have complained, does he feel that his
grievance is being treated with suspicion? If you were on the
receiving end of this treatment, would you honestly return for
)
ES
Activity
For every complaint received by the average business, there are 26 ___________________
Prepare a slideshow on Why
Do Customers Complain?
silent, unhappy customers. Of these 26 who remain silent, 6 have ___________________
‘serious’ grievances. The average customer tells 9 or 10 other
___________________
people about a problem with an organization. Thirteen percent of
people who have a problem with an organization tell more than 20 ___________________
ES
___________________ this service offers. What motivates someone to pay for your
service? One theory is referred to as the Expectancy Value
___________________
approach, which emphasizes how goals lead to specific behaviours.
___________________
According to this theory:
___________________
“The strength of the tendency to act in a certain way depends on the
___________________ strength of the expectancy that the act will be followed by a given
___________________ consequence (or goal) and the value of that consequence to the
___________________
individual.”
___________________ When such expectations are not met, the cracks in the service
promise become apparent. A good level of service is accepted and
___________________
expected. The customer will notice if this service falls below that
___________________ which he has come to expect, whether from previous experience or
UP from advertising promises. Although he may readily adjust to a
higher standard than expected, he is usually not so quick to accept
a lower one. Customer expectations are progressive - what was
once a novel factor of service, for example, in-flight movies on long
haul flights, is now regarded as average and normal. The more is
promised, the greater are the expectations. Only when the
customer is listened to, can you discover what the customer wants,
needs, and expects. And complaints are certainly one way of
becoming informed.
Once the customer feels that he is being cared for, cared about and
valued, even the most trying of circumstances may be transformed
from a complaint into a favourable impression. Tolerance levels
increase when individual needs are acknowledged, and will
increase even more when attempts are made to correct the
situation.
Although aware of each customer’s needs to be treated as an
)
which is perfectly adequate for one customer may fail to satisfy the
expectations of another. One customer may consider the facility of
seat-selection, when making an airline flight reservation, as
standard procedure. When this facility is unavailable, he will not
be pleased. On the other hand, another customer, unaccustomed to
this facility, will not feel deprived should this service be
unavailable. In situations where all customers have been party to
UNIT 21: Dealing with Complaints
ES
Activity
which you encounter. ___________________
Prepare a chart on the
complaints system with both
The aim is to bring the customer back, and the service provided text ___________________
and images.
facilitates this aim. However, customer loyalty is difficult to
___________________
develop. It is by nature circumstantial, fragile, and fleeting. Any
level of service below that which is expected, negatively affects ___________________
loyalty. ___________________
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. ………………….. levels increase when individual needs
are acknowledged. ___________________
___________________
2.
UP
The standard of service which is perfectly adequate for
one customer may fail to satisfy the ………………….. of
another.
Inform the customer that you are dealing with the complaint,
the likely timescale and any immediate action taken.
If you are not the person who can solve the problem, send a
copy of the details to the person who can. (If interim action has
been required you will probably have already spoken to him.)
Airport Customer Service
ES
to solve the problem.
___________________
Once the problem has been resolved complete notes of the
___________________
action taken.
___________________
Write/speak to the customer to tell him what action has been
___________________ taken:
___________________
To solve his problem
___________________
To resolve any underlying causes of his problem
___________________
To provide compensation
___________________
Send the person who received the complaint a copy of the form
___________________
showing the action taken, and where appropriate, a copy of the
___________________ letter to the customer.
UP Ensure the complaint has been analyzed and fed into a central
data system. Keeping a record of complaints is worthwhile so
that trends can be identified.
Where complaints are answered in letter form, careful
consideration must be given as to their wording. Although it is
easy to resort to a standardized letter format, the customer will
appreciate an individualized letter. Remember, letters can contain
‘You’ messages, so beware of how you phrase them. Use ‘I’
messages in an effort to avoid patronizing, or appearing to blame
the customer.
As with all complaints there may be legal implications, so be aware
of that possibility with regard to each specific complaint. Where
compensation claims are expected and cannot be avoided,
guidelines must be clearly laid out. However, you can sometimes
react spontaneously to the situation at hand, knowing the
)
ES
Activity
employee should still be available.) ___________________
Prepare a collage on the
reasons why do airports need
Aspiring to total quality and world-class management is a ___________________
customer complaints?
challenge. While pursuing these objectives, an organization’s
___________________
techniques and methods should implement effective procedures to
deal with complaints. Remember, you can transform complaints ___________________
into a profit opportunity. And don’t rule out the possibility of ___________________
compliments - you can’t always get it wrong. ___________________
2.
UP
Aspiring to total ……………….
management is a challenge.
and world-class
Address any issues with the customer and follow-up with the
breakdown in the customer service chain to correct the issue. Many
times customer complaints can reveal where needs are going
unmet and can inspire new product and service offerings that could
increase profitability. Regardless of how many customers your
Airport Customer Service
ES
___________________
Improve Customer Loyalty
___________________
A study by TARP found that customers who had a complaint
___________________
resolved in a satisfactory manner were 30 percent more loyal than
___________________ those who never complained and 50 percent more loyal than those
___________________ who remained dissatisfied. Airports should encourage customers to
come forward if they are not satisfied. This exchange is an
___________________
opportunity to effectively solidify the relationship between the
___________________ business and the customer.
___________________
Increase Word of Mouth
___________________
Satisfied customers are more likely to refer friends and peers to
___________________
UP your small airport. Since studies have shown that those who
complain are more loyal, this is a rich target market for referrals.
Keeping customers satisfied is important for the personal airport
they bring to you, as well as referrals.
ES
Fill in the blanks: ___________________
1. When an airport gathers and maintains data about ___________________
complaints from customers, it is easier to implement a
___________________
……………… -solving process.
___________________
2. 2. A simple ……………… can easily track the type of
___________________
complaint and the solution.
___________________
Summary ___________________
Keywords
Customer Charter: This is ‘any formal writing in evidence of a
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ES
resentment and is regarded as grounds for complaint. It is a feeling
___________________
of resentment or injustice at having been unfairly treated.
___________________
Legitimate Complaint: A legitimate complaint is any complaint
___________________ which is not based on gender, race, creed or colour. Problems with
___________________ service, product and personnel are all considered to be legitimate
complaints.
___________________
___________________
Questions for Discussion
___________________
1. Discuss the complaints’ System at airports.
___________________
2. What are the various causes of customer complaints?
___________________
___________________
3. For what reasons do customers complain?
UP 4. What are the two factors were said to determine the number of
complaints generated? What are they?
5. What are the factors any product or service business needs
customer complaints?
Further Readings
Books
Fojt. Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success. IAP
Kossmann, Mario,(2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
)
Web Readings
http://customerservicezone.com/customerserviceguest/whycomplain
.htm
(c
http://smallairport.chron.com/airportes-need-customer-complaints-
2042.html
http://smallbusiness.chron.com/businesses-need-customer-
complaints-2042.html
UNIT 22: Branding Strategy for Customer Service at Airports
Notes
ES
Activity
Write___________________
Branding Strategy for Customer an article on the
excellent customer service
___________________
and branding for airports.
Service at Airports ___________________
___________________
Objectives ___________________
After completion of this unit, the students will be aware of the following
___________________
topics:
___________________
Excellent Customer Service and Branding Mean for Airports
Typical Airports and Unique Brands ___________________
Introduction
UP
Excellent customer service is the synergy created when an airport’s
ability to exceed its customers’ airports needs and expectations
consistently matches its customers’ perception that their needs and
airports expectations are well met. This is particularly challenging
in the airport environment where, although airports many are
responsible for the delivery of services, the customer and other
stakeholders often hold the airport operator accountable for the
level of service provided airport-wide. If airport management takes
airports a strategic and holistic approach to customer service and
airport branding, customer satisfaction with the airport experience
can be significantly improved and airport net revenues can be
tracked to show direct relationship with increased customer
satisfaction.
)
ES
___________________ who is responsible for service delivery, airport managers can either
b defensive and try to explain to customers and stakeholders all
___________________
the reasons why excellent customer service is difficult to achieve,
___________________
or they can incorporate customer-centricity at the top and airports
___________________ through the core of how their airports are managed. Starting from
___________________ the top requires establishing a customer-driven vision for the
airport and leveraging the relationship airports between excellent
___________________
customer service and airports branding.
___________________
While customer service is often described by the services, products
___________________
and experiences that an airport provides, airport brand is what
___________________ customers and other stakeholders think about the airport and the
___________________ services and products provided. That is, an airport’s brand is the
UP sum total of all the customer experiences at an airport, as airports
perceived by the customer. Every airport has a brand, just as
individuals have a personal brand — namely, the esteem in which
they are held when people think about their names.
Airport brands can be either:
Ad hoc
It is formed by the customers’ perceptions of the typical
experiences encountered there or by what they have heard or read
about that airport. For example, most people have heard of or
flown through John F. Kennedy International Airport in New York
City. This airport has such a venerable history and reputation as
America’s gateway to the world that most people recognise it solely
by its initials – JFK – initials which conjure up very specific
airport images in people’s minds. Some are nostalgic, some are
stereotypical and associated with New York City’s image, and
)
Strategic
It is defined and managed by the airport operator in collaboration
with its stakeholders, business partners and airport employees.
This represents an airport’s promise to its customers. Singapore
Changi Airport is renowned for its successful strategic airport
brand. Changi Airport’s management clearly understands the
UNIT 22: Branding Strategy for Customer Service at Airports
ES
Activity
___________________
Prepare a presentation on the
Check Your Progress establishment of unique brand
___________________
for typical airports.
Fill in the blanks:
___________________
1. Starting from the top requires establishing a
___________________
…………………. -driven vision for the airport.
___________________
2. Singapore Changi Airport is renowned for its
…………………. strategic airport brand. ___________________
___________________
Can more ‘Typical’ Airports Really Establish a Unique ___________________
Brand? ___________________
ES
Activity
___________________
Prepare a chart on the role of Fill in the blanks:
airport standards in providing
___________________
excellent customer service. 1. Both Apple and IBM understand the …………………
___________________ value of their brands and the resulting revenue impact
that branded customer experiences provide.
___________________
2. If an airport is to be considered one of the best in the
___________________
world by its customers, its management needs to be
___________________
intrinsically focused on defining and managing the
___________________ airport’s ………………… brand, as well as providing
___________________ ………………… customer experiences.
___________________
Role of Airport Standards in Providing Excellent
___________________
UP Customer Service
Once the airport’s brand has been defined and customer priorities
have been determined using appropriate market research
methodologies, airport standards which support the brand and
address the drivers of customer satisfaction should be established.
It is important that they are developed in collaboration with the
airport community and subsequently published and shared with
all who will be affected, including airport employees and even
customers. As customers expect seamless and transparent airport
experiences and judge airports on the collective performance of the
entire airport community, published customer service standards
facilitate the delivery of consistently excellent service by providing
generally accepted guidelines for all service providers at the
airport.
Airport operators are uniquely positioned to spearhead the
adoption of customer service standards for their airport. They are
)
ES
Activity
Write an article on how can
___________________
Check Your Progress airports ‘stay on brand’?
___________________
Fill in the blanks:
___________________
1. Customers expect ………………….. and …………………..
___________________
airport experiences and judge airports on the collective
performance of the entire airport community. ___________________
___________________
How can Airports ‘Stay on Brand’?
___________________
UP
There are a number of techniques to ‘stay on brand’:
Periodic review of airport policies, procedures and systems
to enable excellent customer service: Policies, procedures and
systems provide an organisation with the assurance that business
is being conducted in a manner that advances the attainment of its
vision, the fulfilment of its mission and, therefore, the realisation
of its brand. As airports become customer centric and focused on
enhancing customer experiences, they often find that they are
saddled with policies, procedures and systems from a prior era,
which are obstacles to providing excellent customer service. In fact,
they sometimes assure abominable service by their very design. A
review of these fundamental management tools, both from a
customer perspective (utilising a review of complaints as well as
focus groups, for example) and for consistency with the brand
strategy, is critical for airports to provide excellent customer
service.
)
ES
___________________ communicate ‘performance at a glance’ for each service provider;
action plans that identify what will be done b whom and in what
___________________
timeframe to improve key performance indicators; incentives to
___________________
improve performance; as well as initiatives to energise and engage
___________________ airport employees. Without a formal and effective market research
___________________ programme, it is difficult to know the right things to do to improve
customer satisfaction and airport image, and achieve the
___________________
concomitant increased revenues possible as a result. Without a
___________________ formal and effective performance management system, it is
___________________ difficult to know if these things are being done right.
___________________ Many have heard the performance management mantra that what
___________________ gets measured gets done. Therefore, it is extremely important that
UP the right things get measured. One banking institution learned
this lesson the hard way. It had determined that increased
personalisation of teller and customer interactions were a key
driver of customer satisfaction. Although tellers were informed of
this new customer service initiative, standards were defined and
training provided, customer satisfaction lagged. Upon further
scrutiny, it was discovered that the bank’s performance
management system rated employees on speed of transactions.
This practice was counterproductive to enhancing people-to-people
interactions and in fact damaged the customers’ perception of the
bank’s performance.
Unique service programmes focused on customer priorities
that also advance the airport’s brand: Customer service
programmes provide facilities, products, services and amenities
that fulfil customer needs and wants and resonate with the
airport’s brand. Branded service programmes respond to customer
)
ES
achieving internal goals and reporting to upper management, ___________________
senior management and supervisors in a customer-centric
___________________
organisation are all focused on supporting the front-line staff in
delighting the customers who are at the core of the organisation. ___________________
The brand definition provides the roadmap for outlining a strategic ___________________
customer service improvement and branding strategy that guides
___________________
business decisions.
___________________
Check Your Progress ___________________
Fill in the blanks: ___________________
2.
UP
and therefore staying on brand.
…………………… service programmes respond to
customer priorities in a way that differentiates the total
experience at one airport from another.
Summary
Customers judge an airport’s performance on the collective
performance of all the airport partners which provide service.
Therefore, to achieve higher levels of customer satisfaction,
airports should ratchet up airport performance while managing
customer expectations regarding service delivery. As performance
exceeds expectations, customer satisfaction increases. This is
easier said than done when every aspect of an airport’s business
has repercussions on the service provided to its customers, which is
then personified by the face-to-face customer interactions with
)
ES
___________________ bottom line.
___________________
___________________
Lesson End Activity
___________________ Discuss within your group the brand definition for airports.
___________________
___________________
Keywords
___________________ Brand: Brand is the name, term, design, symbol, or any other
feature that identifies one seller's good or service as distinct from
___________________
those of other sellers.
___________________
Customer: A customer (sometimes known as a client, buyer, or
___________________
purchaser) is the recipient of a good, service, product, or idea,
UP obtained from a seller, vendor, or supplier for a monetary or other
valuable consideration.
Further Readings
Books
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ES
Aviation,” Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://www.gatewaygroupone.com/Press/03_06_08%20Airport%20
___________________
Management.pdf
___________________
http://simpliflying.com/2011/are-your-airport-customer-services-
___________________
delivery-under-pressure/
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 23: Airport Shopping
Notes
ES
Activity
___________________
Airport Shopping Prepare a write up on the non-
aviation sector at airports.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
___________________
Introduction
___________________
UP
Almost all airports provide a number of facilities for its customers.
In this unit you will be introduced about most of these facilities.
These facilities are provided to customers in order to give them the
best experience at airport and to welcome them again to book their
flights from the same airport. An airport is a first impression of the
city you are entering into and thus a customer service executive
makes all his efforts to provide customers with best experience.
Airports are not solely geared toward handling passengers and
baggage. The non-aviation business—including shopping, dining,
parking, and advertising—is constantly expanding as a vital
source of revenues.
Non-aviation Business
Non-aviation business refers to everything at airports not directly
related to air travel, such as retail trade, catering, parking, and
advertising. Airports have recognized the opportunity to boost both
)
revenues and profits with the help of the non-aviation sector and,
as a result, have significantly expanded the areas dedicated to
retailers and restaurants. Even airports not initially designed or
(c
ES
Activity
___________________
Prepare a presentation on the
Accessorize store in Munich and Zara in Barcelona. Wellness and
rising expectations for shop beauty outlets are found at numerous airports and work
___________________
owners.
particularly well at those with a large number of transfer
___________________
passengers. The Be Relax wellness brand, to name one, is
___________________ represented at nine airports in Europe. Beauty products are now
___________________ sold in mono-brand shops in addition to duty-free stores.
Until recently, the most commonly used type of routing for duty-
free walk through shops was meandering, allowing passengers to
walk through as wide a range of merchandise as possible. Now,
however, shop layouts provide clear and functionally efficient
(c
routing that ensures optimal orientation with less time delay. This
creates a more relaxed environment for stressed passengers, with
the added advantage of increasing their willingness to buy
products. An example is the shop layout planned by Gebr.
Heinemann for Berlin Brandenburg Airport that opened in 2012.
UNIT 23: Airport Shopping
ES
For years, successful airports have put their faith in regional-style
retail formats and unique offerings. Now, airports also expect the ___________________
duty-free shops to contribute to the distinct character of the ___________________
airport, with best-practice shops adopting regional and local
___________________
aspects not only in product mix but also store design. Along with
traditional duty-free products, there is a sophisticated regional ___________________
___________________
Build a Strong Brand
___________________
UP
Another success factor for duty-free operators is a strong retail
brand. Until recently, the retail brands in duty-free shops—in
Europe, they are mostly variations of the overarching Travel Value
umbrella brand—were not familiar to most customers.
Increasingly, shop operators are coming up with their own trade
brands to position their shops clearly with their customers. For
example, the new Heinemann brand from Gebr. Heinemann is
meant to be associated with uniform prices for travellers (single
pricing for duty-free), a guaranteed price advantage, and three core
elements: service-oriented, personal, and surprising. The objective
is to increase customer loyalty and encourage shoppers to buy. Its
financial success has proved the concept.
Get Innovative
Airports are placing ever greater demands on caterers to match
their offerings to individual airports and customers. Among the
ideas is allowing passengers to check in to a flight from a
)
ES
Activity contribute to the distinct character of the airport.
___________________
Prepare a chart on airport
business model.
___________________
Airport Business Model
___________________
Airports are often criticized for their interchangeable retail
___________________ formats, so they are always looking for top-notch brands to add to
___________________ their retail mix—brands that are either not yet represented at
___________________
other airports or that underpin the airport's unique profile. To get
unique concepts, some airports are willing to take certain risks; for
___________________
example, Singapore's Changi Airport created a young fashion and
___________________ accessories concept together with students from Singapore
___________________ Polytechnic. When airports plan new developments and extensions,
they explicitly earmark about 20 percent of the retail mix for
___________________
UP regional best performers. This means there are great opportunities
for retailers that are not yet in an airport.
Airports are always looking to add top-notch brands that are either
not yet represented at other airports or that underpin their unique
profile.
Airport locations are doubly valuable for brand manufacturers as
they promise profits and provide a prominent location that
supports the brand. Successful models may include independently
operated shops and concessions allocated to retailers, which in
turn may be the traditional duty-free companies. Luxury brands,
such as Armani, choose different operator models in different
locations.
However, merely having a strong brand and a successful business
in high-street retailing does not guarantee success. The travel
retail segment has its own business models and challenges and
requires a certain kind of management. Consider, for example, the
)
ES
Rent, ancillary expenses, and personnel costs are considerably
higher. ___________________
Tenancy agreements generally run for only five to eight years, ___________________
Business ___________________
What does all of this mean for retailers and manufacturers that ___________________
wish to break into the airport business segment or successfully
___________________
expand an existing foot-hold? There are three success factors to
___________________
keep in mind:
1.
UP
Establish an independent management structure: Travel
retail requires its own independent management, because the
business model is far different from high-street retailing.
2. Adapt the market entry strategy to travel retail: The
unique features of travel retail require a market-entry
strategy with an appropriate format and product mix and a
specific business model. Simply copying the high-street model
will not work.
3. Align with a strong partner: In some cases, travel retail is
more successful when run with a strong partner with airport
experience. There are usually several established retailers at
each airport that already hold licenses or franchises of various
global brands.
ES
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. The non-aviation business segment continues to attract
___________________
a more diverse group of …………………..
___________________
2. Knowing your customers—their terminals, flight
___________________
schedules, destinations, and preferred products—can
___________________ prove ………………
___________________
___________________ Summary
___________________ Airports are not solely geared toward handling passengers and
UP baggage. The non-aviation business—including shopping, dining,
parking, and advertising—is constantly expanding as a vital
source of revenues. Airports have recognized the opportunity to
boost both revenues and profits with the help of the non-aviation
sector and, as a result, have significantly expanded the areas
dedicated to retailers and restaurants.
For years, successful airports have put their faith in regional-style
retail formats and unique offerings. Now, airports also expect the
duty-free shops to contribute to the distinct character of the
airport, with best-practice shops adopting regional and local
aspects not only in product mix but also store design. Airports are
always looking to add top-notch brands that are either not yet
represented at other airports or that underpin their unique profile.
Keywords
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ES
used for the intended task or purpose.
___________________
Innovate: Innovation is the development of new values through
solutions that meet new requirements, inarticulate needs, or old ___________________
___________________
Questions for Discussion ___________________
1. What is meant by non-aviation business at airports? ___________________
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario & Hobbi, Bob, (2009), Building a Customer
Service Culture: The Seven Service Elements of Customer Success,
IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
Aviation, Ashgate Publishing Ltd.
Web Readings
)
http://www.atkearney.com/paper/-
/asset_publisher/dVxv4Hz2h8bS/content/airport-shopping-takes-
off/10192
(c
http://www.usatoday.com/story/travel/flights/2013/02/12/airport-
shopping-choices/1911177/
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) UP
ES
UNIT 24: Airport Security
Notes
ES
Activity
___________________
Airport Security Prepare a write-up of history
of airport security.
___________________
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
Introduction
UP
One of the most significant customer services provided at airports
is airport security. Most users of commercial service airports are
subjected to security infrastructure, policies, and procedures
within the airport terminal area. Airport security is not limited to
the terminal area, however. Airport security concerns all areas and
all users of the airport. Airport security procedures are designed to
deter, prevent, and respond to criminal acts that may affect the
safety and security of the travelling public. Criminal activity
includes the hijacking of aircraft, known as air piracy, damaging or
destroying aircraft with explosives, and other acts of terrorism,
defined as the systematic use of terror or unpredictable violence
against governments, publics, or individuals to attain a political
objective. Criminal activity also includes acts of assault, theft, and
vandalism against passengers and their property, aircraft, and all
airport facilities.
)
ES
___________________ aircrew member. The first major act of criminal violence against a
U.S. air carrier occurred on November 1, 1955, when a civilian by
___________________
the name of Jack Graham placed a bomb in luggage belonging to
___________________
his mother. The bomb exploded in flight, killing all 33 people on
___________________ board. Graham had hoped to cash in on his mother’s life insurance
___________________ policy, but instead was found guilty of sabotaging an aircraft and
sentenced to death. A second such act occurred in January 1960,
___________________
when a heavily insured suicide bomber killed all aboard a National
___________________ Airlines aircraft. As a result of these two incidents, demands for
___________________ luggage inspection at airports serving air carrier aircraft surfaced.
___________________ With the rise of Fidel Castro in Cuba in 1959 came a significant
___________________ increase in the number of aircraft hijackings, at first by those
UP wishing to escape from Cuba, then by those hijacking U.S. aircraft
to Cuba. In May 1961 the federal government began using armed
guards on select air carrier aircraft to prevent hijackings. In
August 1969, Arab terrorists carried out the first hijacking of a
U.S. aircraft flying outside the Western Hemisphere when they
diverted an Israel-bound TWA aircraft to Syria. Another incident
that October involved a U.S. Marine who sent a TWA plane on a
17-hour circuitous journey to Rome. This was the first time that
FBI agents attempted to thwart a hijacking in progress and that
shots were fired by the hijacker of a U.S. plane. In March 1970, a
copilot was killed and the pilot and hijacker seriously hurt during
a hijacking. The first passenger death in a U.S. hijacking occurred
in June 1971. Following the hijacking of eight airliners to Cuba in
January 1969, the Federal Aviation Administration created the
Task Force on the Deterrence of Air Piracy. The task force
developed a hijacker “profile” that could be used along with metal
detectors (magnetometers) in screening passengers. In October,
)
Eastern Air Lines began using the system, and four more airlines
followed in 1970. Although the system seemed effective, a
hijacking by Arab terrorists in September 1970, during which four
(c
airliners were blown up, convinced the White House that stronger
steps were needed. On September 11, 1970, President Richard
Nixon announced a comprehensive anti-hijacking program that
included a federal air marshal program.
Between 1968 and 1972, hijacking of U.S. and international
aircraft was at its peak. During the 5-year period, the U.S.
Department of Transportation recorded 364 hijackings worldwide.
UNIT 24: Airport Security
ES
Activity
On March 18, 1972, the first airport security regulations were ___________________
Write an article on the
made effective, later formalized within the FAA as Federal meaning of airport security.
___________________
Aviation Regulations Part 107—Airport Security, in 1978. Under
this regulation, airport operators were required to prepare and ___________________
controls, and
UP
A plan to upgrade the security of air operations with a time
schedule for each improvement project.
ES
Activity dangerous situations from arising or entering the country. If
___________________
Prepare a presentation on the airport security does succeed in this, then the chances of any
airport security in India.
___________________ dangerous situations, illegal items or threats entering into aircraft,
___________________ country or airport are greatly reduced. As such, airport security
serves several purposes: To protect the airport and country from
___________________
any threatening events, to reassure the travelling public that they
___________________ are safe and to protect the country and their people.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Airport security attempts to prevent any threats
___________________
or potentially dangerous situations from arising or
___________________ entering the ……………...
UP 2. Airport security refers to the techniques and methods
used in protecting ………………, …….………….... and
……………… which use the airports, from accidental/
malicious harm, crime and other threats.
security.
Terrorist threats and narcotics are the main threats in Indian
airports. Another problem that some airports face is the
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ES
1. The objective of airport security will be to safeguard the
passengers, crew, ground personnel, the general public and the ___________________
airport infrastructure against unlawful acts as per ICAO ___________________
Standards and Recommended Practices laid down in
___________________
Annexure-17 to the Chicago Convention. The level of security
will be calibrated by the BCAS according to the threat ___________________
purpose.
Airport security checks are essential for the safety of both the
passengers and the country. Documents like the passengers’
passport, ticket, visa etc. are checked at the boarding counter prior
to the passenger boarding the aircraft. If these are found genuine a
boarding card is issued to the passenger.
The next step is the immigration check where the biographical
data and the passport is screened and details fed into the computer
Airport Customer Service
ES
___________________ passenger. These completed the passenger is allowed to enter the
aircraft.
___________________
If carrying explosive substances or arms one should declare
these at the check in counters as concealing them is an offence.
The hand luggage should be small and not contain dry cells or
battery cells which would be removed while checking and the
airport will not be able to return them to the passenger.
Explosives like compressed gases, fireworks, hand guns, blank
cartridges, pistol caps, acids and alkalis or any apparatus
containing mercury should not be carried in your baggage.
Liquids that is highly flammable such as fire or cigarette
lighters, paints and thinners, matches, oxidizing material,
radioactive material, peroxides or bleaching powders should be
avoided.
Insecticides and poisonous weed killers or live viruses are
strictly prohibited.
Valuable articles like jewels, money, precious metals should
)
ES
Activity
Fill in the blanks: ___________________
Write a report on the security
at commercial service
1. Airport security checks are essential for the ……………. ___________________
providers.
of both the passengers and the country.
___________________
2. Passengers should not agree to carry packets or ___________________
baggage of ……………….. people.
___________________
___________________
Security at Commercial Service Airports
___________________
You will find following components of security at a commercial
___________________
service airport:
___________________
Passenger Screening
___________________
UP
The processing of passengers and baggage for the purpose of
ensuring the security of the civil aviation system has undergone a
virtual overhaul following the terrorist attacks on the United
States on September 11, 2001. As of 2003, passenger and baggage
security screening is managed and operated by the Transportation
Security Administration (TSA). Even though the TSA has ultimate
authority of the facilities and procedures that comprise the
security screening processes, airport managers and planners
should be keenly aware of the security screening process, because
the process has presented the most significant impacts on airport
terminal planning and operations in recent years. As of 2003,
policies surrounding passenger and baggage security screening
remained in a high state of flux. Despite this, certain
fundamentals of the passenger and baggage screening process
remain.
Passenger screening facilities include an automated screening
)
ES
___________________ baggage for prohibited items such as firearms, sharp objects that
may be used as weapons, or plastic or chemical-based trace
___________________
explosives. All carry-on baggage is first inspected through the use
___________________
of an x-ray machine. Bags selected because of suspicions as a result
___________________ of the x-ray examination, or selected on a random basis, are
___________________ further inspected through the use of explosive trace detection
(ETD) equipment and/or by manual search. In addition, personal
___________________
electronic items such as laptop computers or cellular phones are
___________________ frequently inspected by being turned on and briefly operated to
___________________ check for authenticity.
___________________
Controlled access
___________________
UP A variety of measures are used around airports to prevent, or more
appropriately, control the movement of persons and vehicles to and
from security-sensitive areas of the airport property. At most
commercial service airports, controlled access through doors that
provide access to the AOA, secure areas, sterile areas, and other
areas within the SIDA, as well as many employee-only restricted
areas, is enforced by the use of control systems. These systems
range from simple key locks to smart-access technologies, such as
keypad entry systems requiring proper pass code. In many cases,
pass codes are calibrated with a person’s SIDA badge, requiring
both a presentation of the person’s badge and proper pass code
entry to gain access.
One weakness associated with door entry to security-sensitive
areas, regardless of their access control measures, is the ability to
allow unauthorized persons to enter through the door after an
authorized person has opened the door. This situation is known as
piggybacking, and is almost always a violation of security policies.
)
areas.
Biometrics
Advanced identification verification technologies, including those
that employ biometrics are continuously being developed to
enhance access control at airports. Biometrics refers to technologies
that measure and analyze human body characteristics such as
UNIT 24: Airport Security
ES
authentication purposes. Biometric devices typically consist of a ___________________
reader or scanning device, software that converts the scanned
___________________
information into digital form, and a database that stores the
biometric data for comparison. For the most part, biometric ___________________
___________________
Perimeter Security
UP
An important part of an airport’s security plan is its strategy for
protecting the areas that serve as the border between secured and
unsecured areas of the airport, known as the airport perimeter.
Four of the most common methods for securing the airport’s
perimeter are perimeter fencing, controlled access gates, area
lighting, and patrolling of the secured area. Perimeter fencing is
one of the most common methods of creating a barrier in otherwise
easily accessible areas of an airport’s secured area boundary.
Fencing can vary in design, height, and type, depending on local
security.
Lighting units for perimeter fences should be located a sufficient
distance within the protected area and above the fence so that the
light pattern on the ground will include an area on both the inside
and the outside of the fence. Generally, the light band should
illuminate the fence perimeter barrier and extend as deeply as
)
Continuous Lighting
(c
Standby Lighting
Notes
ES
Activity
___________________ Lights in this system are either automatically or manually turned
Prepare a slideshow on the
future of Airport Security. on when an interruption of power occurs or when suspicious
___________________
activity is detected.
___________________
___________________
Movable Lighting
ES
current type of threat, and (2) the creation of new threats against ___________________
civil aviation that the system has not been prepared to mitigate.
___________________
This has been evidenced by the historical development of different
threats, from non-violent hijackings, to violent hijackings using ___________________
CAPPS II
The Computer Assisted Passenger Pre-Screening System, known
as CAPPS II, is an enhancement of a profiling system employed by
the FAA that selected passengers for additional screening based on
their air carrier itinerary and citizenship.
CAPPS II designed to be a nondiscriminatory selection system uses
passenger information to verify identity and then determine risk,
which is presented in a score and its corresponding colour: red,
)
ES
___________________ would be relieved from secondary searches, which historically have
existed on a random basis, or be allowed to proceed through
___________________
expedited security screening at the airport.
___________________
Keywords
Notes
ES
Directional Marker: An airway marker located on the ground
___________________
and used to give visual direction to an aircraft; consists of an arrow
indicating true north and arrows indicating names and states of ___________________
the nearest towns. ___________________
Direction Sign: Airfield sign that identifies the designations of ___________________
intersecting taxiways leading out of the intersection at which an
___________________
aircraft is located.
___________________
Final Approach Areas: Areas of defined dimensions protected for
___________________
aircraft executing instrument approaches.
___________________
Final Approach (IFR): The flight path of an aircraft which is
inbound to the airport on an approved final instrument approach ___________________
course, beginning at the final approach fix or point and extending ___________________
UP
to the airport or the point where circling for landing or missed
approach is executed.
Global Positioning System (GPS): A satellite-based navigation
system that will enhance user-preferred routing, reduce separation
standards, and increase access to airports under instrument
meteorological conditions (IMC) through more precision
approaches.
Ground Access Systems: Existing and planned highway and
mass transit systems in the area of the airport.
on baggage at airports?
5. What is biometrics? What are some of the technologies that
are considered to apply biometrics to the airport security
environment?
6. What is CAPPS II?
7. What is the Trusted Traveller Program?
Airport Customer Service
Further Readings
Notes
ES
___________________ Books
___________________ Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
___________________
Emerald Group of Publishing
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: Gatwick Airport
___________________
In September 2010, a customer service training project kicked off
at Gatwick for all passengers facing staff based on Tourism South ___________________
East’s Welcome Host Gold course. That is more than 1,600
employees. It is all part of Gatwick’s ambitions to remain in the ___________________
top three of all EU airports in terms of customer service.
___________________
UP
The training programme began with Gatwick’s security team
which has also introduced a ‘mystery shopper’ initiative involving
passengers giving feedback anonymously about their experience
of the security process.
CEO Stewart Wingate said “We’re focusing on our passengers’
experience because that’s key to delivering excellent customer
service. Improving their journey through the airport will not only
show our understanding of what passengers want, but help us
reach our goal of becoming London’s airport of choice”.
Completion of the ‘Delivering Excellent Customer Service’
(Gatwick’s version of Welcome Host Gold) sees participants
awarded with a City & Guilds Level 2 accredited award.
Scott Stanley, Chief Operating Officer said “This training
programme provides our staff with the tools to deliver excellent
customer service and receive this nationally recognised
qualification”.
Results so far have been impressive. As a direct result of the
programme, compliments received by security staff have doubled
and complaints have fallen by 70%.
And if that wasn’t rewarding enough, Gatwick received its own
)
Glossary Notes
ES
___________________
Agent: An agent is one who acts for, or in the place of, another, by ___________________
authority from him; one entrusted with the business of another.
___________________
Air Navigation Services: These are those services which monitor and
___________________
control the movement of aircrafts from one place to another by managing
the air traffic. ___________________
Air Rage: Air rage is term used to depict a situation where passengers ___________________
become violent towards crew members or passengers.
___________________
Air Traffic Control: Air traffic control refers to the operations used to ___________________
control air transportation.
___________________
Aircraft: A flying machine holding in the air using the interaction with
___________________
UP
air, if it does not involve the interaction of air with land or water surfaces.
Brand: Brand is the name, term, design, symbol, or any other feature
that identifies one seller's good or service as distinct from those of other
(c
sellers.
ES
commercial gain, by ship or aircraft, although the term is now extended
___________________ to intermodal train, van or truck.
___________________ Civil Air Navigation Services Organization (CANSO): CANSO is the
global voice of the companies that provide air traffic control, and
___________________
represents the interests of Air Navigation Service Providers worldwide.
___________________
Clout: A heavy blow with the hand or a hard object.
___________________
Cog in the Machine: It refers to one part of a large system or
___________________ organization.
___________________ Commercialization: 'Commercialization' is the process or cycle of
___________________ introducing a new product or production method into the market.
Crisis: A crisis is any event that is, or expected to lead to, an unstable
and dangerous situation affecting an individual, group, community, or
whole society.
CRM: Managing of prospects all the way through the entire sales process
and after.
the customer.
ES
analysis and data mining.
Efficiency: It refers to the extent to which time or effort is well used for
the intended task or purpose.
happen.
beginning at the final approach fix or point and extending to the airport
Notes or the point where circling for landing or missed approach is executed.
ES
___________________ Final Approach Areas: Areas of defined dimensions protected for
aircraft executing instrument approaches.
___________________
Ground Crew: The ground crew is the support crew supplying the
aircraft with fuel and maintenance, as opposed to the aircrew.
Hot Air Balloon: The hot air balloon is the oldest successful human-
carrying flight technology.
ES
international industry trade group of airlines headquartered in Montreal,
Quebec, Canada, where the International Civil Aviation Organization is ___________________
also headquartered.
___________________
Legitimate Complaint: A legitimate complaint is any complaint which
___________________
is not based on gender, race, creed or colour. Problems with service,
product and personnel are all considered to be legitimate complaints. ___________________
No-frills Airlines: No-frills airlines are airlines that offer low fares but
eliminate all non-essential services, such as complimentary drinks
snacks, in-flight entertainment systems, business-class seating etc.
ES
granted to or enjoyed by an individual, class, or caste.
___________________
Retail: Retail is the sale of goods and services from individuals or
___________________ businesses to the end-user.
___________________ Return on Capital Employed: Establishes the relationship between the
profit and the capital employed.
___________________
Safety: Safety can be defined to be the control of recognized hazards to
___________________
achieve an acceptable level of risk.
___________________
Safety Management Systems (SMS): SMS is a term used to refer to a
___________________ comprehensive business management system designed to manage safety
___________________ elements in the workplace.