Resource and Logistics Management at Airports

Resource and Logistics Management at Airports
BBA
Airline & Airport Management
(Annual Pattern)
IInd Year
Paper No. 10
School of Distance Education

Bharathiar University, Coimbatore - 641 046
Author: Reji Ismail
Copyright © 2014, Bharathiar University

All Rights Reserved
Produced and Printed

by
EXCEL BOOKS PRIVATE LIMITED
A-45, Naraina, Phase-I,
New Delhi-110028
for
SCHOOL OF DISTANCE EDUCATION
Bharathiar University
Coimbatore-641046
CONTENTS
Page No.
UNIT I
Lesson 1 Human Resource Management in Aviation 7
Lesson 2 Managing Internal Relations in an Airline Firm 21
Lesson 3 Managing Relations with Passengers, Regulatory Authorities and Civic Bodies 34
UNIT II
Lesson 4 Space Allocation 49
UNIT III
Lesson 5 Airlines Staffing Issues and Solution 67
Lesson 6 Manpower Planning 80
UNIT IV
Lesson 7 Recruitment, Selection and Training in Aviation 97
Lesson 8 Financial Planning and Budgeting in Aviation 113
UNIT V
Lesson 9 Logistic Management at Airport 129
Lesson 10 Air Cargo 144
Model Question Paper 163
RESOURCE AND LOGISTICS MANAGEMENT AT AIRPORTS
SYLLABUS
UNIT I
The role of Human Resources - Dealing with Superiors - Dealing with Peers and Subordinates - Dealing with
Others: Passengers, Regulatory Authorities and Civic Bodies
UNIT II
Space allocation in Terminals and Airside - Hold / Gate Allocation - Baggage Management: Make-up and Break-
up - Challenges and Solutions
UNIT III
Air Operators and Service Providers: Staffing Issues - Security and Other Sovereign Functions: Manpower
Planning - Equipment Requirements - Budgeting and Cost Analysis
UNIT IV
Recruitment, Selection, Training and Certification of Personnel - Management of Human Resources - Material
Resource Management - Financial Planning and Budgeting
UNIT V
Concept of Logistics - Role of Warehousing - trend in Material Handling - Global Supply Chain - Quality
Concept and Total Quality Management - Improving Logistic Performance - Air Cargo Concept - Cargo Handling
- Booking of Perishable Cargo and Live Animals - Industry Relation - Type of Air Cargo - Air Cargo Tariff,
Ratios and Charges - Airway Bill, Function, Purpose, Validation.
UNIT I
7
LESSON Human Resource Management
in Aviation
1
HUMAN RESOURCE MANAGEMENT IN
AVIATION
CONTENTS
1.0 Aims and Objectives
1.1 Introduction
1.2 Role of Human Resources
1.3 Concept of Human Resource Management in Aviation Industry
1.4 Objectives of HRM in Aviation
1.5 Personnel Management in Aviation
1.6 Functions of Human Resource Management in Aviation
1.6.1 Managerial Functions
1.6.2 Operative Functions
1.7 Differences in the Human Resource Management of Airline Companies
1.8 Let us Sum up
1.9 Lesson End Activity
1.10 Keywords
1.11 Questions for Discussion
1.12 Suggested Readings
1.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Discuss the Human Resource Management (HRM)
z Describe the role of HRM in aviation industry
z Identify the objectives of HRM in aviation
z Explain the need of personnel management in aviation
1.1 INTRODUCTION
In the next 20 years, airlines everywhere in the world need to add 25,000 fresh aircraft
to the present 17,000-strong commercial fleet. By 2026, the aviation and aerospace
industry require 480,000 new technicians to keep up these aircraft and more than
350,000 pilots to fly them. The requirement of manpower in aviation, plans are
staggering. Asia is at the core of this growth, will face the effect of this expert
manpower shortage. Thus the requirement to address the challenge of growing and
shaping aviation’s future manpower pool becomes essential.
8 It is known to everyone that the achievement of the aviation business is determined by
Resource and
Logistics Management at Airports its skilled workforce. Whereas the scarcity of aviation specialists is a global challenge,
the Asia-Pacific would be hit hardest. Boeing predicts that the Asia Pacific region
would need some 185,000 additional commercial pilots and 243,000 new technical
professionals in the next 20 years. In tandem with these projected statistics, the
international aviation community will correspondingly need numerous more air traffic
controllers, cabin and ground crew, engineers, inspectors and other authorities to keep
the industry working. This important shortfall in aviation professionals prompted
ICAO to launch the Next Generation of Aviation Professionals (NGAP) initiative in
2008 to confirm that adequate qualified and competent aviation professionals would
be available to work, manage and uphold the future worldwide air transport system.
1.2 ROLE OF HUMAN RESOURCES

Human Resources (HR) in an aviation industry is worried with the questions of
handling people in aviation organisation. The airline industry needs staffs to handle
their clienteles with care and established moral values to help their corresponding
airline to achieve its goals.
For any organization working in any area, HR is certainly a valued asset – right from
the customary agricultural sector to the recent Information Technology sector. It is
human effort that brings together all features of production to accomplish the goals
and objectives fixed for the business. Taking into consideration the recent news of
‘turbulence’ in the Indian Airline industry, it would be fascinating to take stimulus and
few HR lessons from one of the Most Admired Airline in the world – Singapore
Airlines (SIA).
SIA’s achievement can be directly recognized to its customer driven services. To
achieve this, universal and overall development of employees is stimulated.
Employees are permitted to continuously modernize and to give more new ideas. The
employees here are trained to glad customers in a price effective manner. One of the
service creativities of SIA is the ‘Transforming Customer Service’ programme. The
purpose of this initiative is to make sure that the whole voyage of a commuter right
from the buying of a SIA ticket till the commuter reaches the destination; everything
is made at ease and pleasant for them so that they are happy and satisfied and in this
way will favour SIA over the competitors.
For these customer driven facilities to take place, staff members are divided into
various groups. Team spirit is built amongst these members by a lot of activities. The
objective is that each person must work with each other towards the common
objective of satisfying the customer and simultaneously each member of the team
must know, raise the value and be at easiness working with others in these functional
team set up. SIA uses 40-30-30 rule in this regard. This basically means that 40% of
the resources are dedicated to training, 30% of resources on the examination of
numerous practices and events across sections and the left over 30% of resources are
used for generating new product ideas and services.
SIA’s rewards system pays bonus based on the productivity of the airline. Thus
workforces make best use of assets available and also come up with arrangements that
have good profit margins. So constant response is taken from commuters to be in
tandem with their fluctuating preferences be it in designing trustworthiness and
reliability programmes or in coming up with food and wine options or in provided that
services that will meet or go beyond customer opportunities.
Training in SIA is measured as the best in the airline industry and a SIA
steward/stewardess has exceptional status wherever he goes. The training time here is
of four months, longer than working out given in any other airline businesses and the
whole crew identifies how to go about in a specialized manner with an individual 9
Human Resource Management
touch when dealing with commuters travelling to and from different parts of the in Aviation
world. Every employee, regardless of the level of management he/she fits to, has an
exact and actionable training and development strategy. Training is given in well-
designed spaces along with training in individual skills and emotional assistances
based on the nature of the employee’s job. Everyday tourists have stated that the
relational services of the aircraft assistants and relaxed trip and good service are the
reasons that attract them to select SIA over other brands.
Additionally, employees are encouraged to form groups that have related interests
through diverse segments of the airline like ‘Gourmet Circle,’ ‘Performing Arts’
group etc. so that workers can involve in actions they like outside of their job and
content workforces will have work-life stability which means their performance and
efficiency will also be extraordinary. The recruitment and selection methods now are
of high standard. When the requirement rises, employees generally flight attendants
are nominated at the international level from countries wherever SIA flies to, so that
there are no linguistic barriers or cultural shocks when starting the job.
Approximately, for every 20 seats, one SIA flight attendant is answerable and so from
a human resources point of view, the value of a flight attendant as a SIA worker is
unquestionable. It is said that only people who indeed enjoy helping others are
appointed and that’s why even workers stay longer with SIA.
Example: Perception of British Airways towards its human resource.
In the Human Resource Department, they are conscious that the way people in British
Airways work with each other have a direct impact on the way they work towards our
clienteles. So developing an environment where everyone is treated with respect and
the ultimate professionalism is one of British Airways’ main priorities.
British Airways likewise knows that the mode of people thinking about the company
they work for has a big effect on the levels of inspiration they put on to their
individual role which is why certifying good staff morale is very important for us.
As a team, British Airways’ role is to guarantee the business has the correct people
with the exact skills to help us realize our company objectives. Think about how large
their operations are, the diverse places around the world, the vast numbers of people
working in centres like Heathrow and Gatwick – and you start to realise the size of the
task. We need to make sure that everyone working as part of a team with a pure
management structure to lead and support them.
And in a business as competitive and liable to transformation as this, we have a
continuously developing range of subjects to address, not least of which is certifying
that our executives have the leadership skills to provide change through the
participation of their people. We also need to emphasis on more well-organized ways
of working, through simplifying and transforming our people procedures and using
them to help us manage individual and organisational performance.
1.3 CONCEPT OF HUMAN RESOURCE MANAGEMENT IN

AVIATION INDUSTRY
Human Resource Management is a practice of getting people and organisations
composed so that the objectives of each are met. It is that portion of the management
practice which is concerned with the administration of human resources in an
organisation. It tries to protect the best from people by winning their committed
assistance. To be brief, it may be defined as the art of obtaining, developing and
upholding competent staff to attain the goals of an organisation in an effective and
efficient manner.
10 According to Ivancevich and Glueck, HRM is concerned with the most effective use
Resource and
Logistics Management at Airports of people to achieve organisational and individual goals. It is a way of handling
individuals at work, so that they provide their finest capabilities to the organisation. It
has the following features:
1. Pervasive Force: HRM is pervasive in nature. It is stated in all enterprises. It fills
all stages of management in every organization.
2. Action-oriented: HRM emphases devotion on action, rather than on maintaining
record, written measures or rules. The complications of employees at work are
resolved through normal policies.
3. Individually-oriented: It tries to help workers to improve their potential
completely. It inspires them to give out their finest capabilities to the organization.
It encourages workforces through an organized practice of recruitment, selection,
training and development joined with fair wage policies.
4. People-oriented: HRM is all about people at work. It attempts to put people on
allotted jobs so as to yield good results. The consequential advantages are used to
reward people and encourage them to additional improvements in output.
5. Development-oriented: HRM aims at developing the full potential of workforces.
The reward structure is adjusted to the needs of workforces. Training is offered to
polish and progress their skills. Staffs are interchanged on several jobs so that they
achieve good experience and exposure. Each effort is made to utilize their talents
completely in order to attain organisational goals.
6. Integrating Mechanism: HRM attempts to build and continue friendly
associations between people working at different stages in the organisation. In
short, it makes an effort to incorporate human assets in the best probable custom
in the service of an organisation.
7. Comprehensive Function: HRM, to some point, is worried with any
organisational decision which has an influence on the workers or the potential
workforce. The term ‘workforce’ indicates people working at different levels,
including workers, supervisors, middle and top managers. It is concerned with
dealing with people at work. It covers all kinds of employees. Workers working
may take diverse shapes and forms at all level in the organisational pyramid but
the elementary objective of attaining organisational efficiency through effective
and efficient utilisation of human resources remains the identical. “It is mainly a
technique of developing abilities of employees so that they acquire maximum
contentment out of their work and give their best efforts to the organisation”.
8. Auxiliary service: HR departments exist to support and give advice to the line or
operating managers to do their workers work more successfully. HR manager is
an expert advisor. It is a staff function.
9. Inter-disciplinary Function: HRM is a multi-disciplinary action utilising
information and contributions drawn from thinking, sociology, anthropology,
economics, etc. To solve the unknown thoughts of human brain, managers, need
to recognize and raise the value of the contributions of all such ‘soft’ disciplines.
10. Continuous Function: According to Terry, HRM is not a one short deal. It cannot
be practiced only one hour each day or one day a week. It requires a constant
alertness and awareness of human relations and their importance in everyday
operations.
11
1.4 OBJECTIVES OF HRM IN AVIATION Human Resource Management
in Aviation
HRM in aviation industry seeks to achieve the subsequent objectives:
1. To help the organisation reach its goals: HR department, is similar to other
sections in an organisation, happens to attain the objectives of the organisation
first.
2. To employ the skills and abilities of the workforce efficiently: The main aim of
HRM is to make the strength of people fruitful and to benefit customers,
stockholders and employees.
3. To provide the organisation with well-trained and well-motivated employees:
HRM needs to keep the workforces motivated so as to give their maximum
efforts, that their presentation to be estimated properly for results and that they be
compensated on the basis of their assistances to the organisation.
4. To increase to the fullest the employee’s job satisfaction and self-actualization:
It attempts to prompt and inspire each worker to understand their capabilities. To
this end, appropriate programmes have to be intended at refining the excellence of
work life (QWL).
5. To develop and maintain a quality of work life: Without upgrading in the quality
of work life, it is challenging to increase organisational performance.
6. To communicate HR policies to all employees: It is the accountability of HRM to
interconnect in the completest possible intelligence both in tapping ideas, opinions
and feelings of customers, non-customers, regulators and other external public as
well as in understanding the views of internal human resources.
Thus, HRM in short should try to:
(a) Attain economically and effectively the organisational goals;
(b) Serve to the highest possible degree the individuals goals; and
(c) Preserve and advance the general welfare of the community.
The above mentioned objectives (drawn from Ivancevich and Glueck) ultimately
result in employee satisfaction and fulfilment. This is however, easier said than done.
Unless HR people are systematically familiar with the social, legal and economic
fashions in the economy, managing people in today’s world of work would always
prove to be a ticklish affair.
1.5 PERSONNEL MANAGEMENT IN AVIATION

It is the employees in any organization that perform many significant activities.
Managers and HR professionals have the significant job of organizing individuals so
that they can successfully complete these activities. This needs observing employees
as human assets, but not as the costs to the organization.
The job of a personnel manager has gone through a dramatic change in latest years. As
a record keeper and a welfare man trying to manage guidelines to keep staff happy, he
is required by situations to look at the big picture. He is enforced to strike a
relationship in the middle of organisational demands and employee expectations,
precisely in synchronization with trends in the labour market. In this new era, the
personnel manager is thought to wear many hats that of being a recruiter; trainer,
developer and motivator; coordinator; mediator and more prominently act as an
employee champion. To confuse the matters further, these roles are being looked at
with critical attention by everyone. Today’s demands have showed themselves long
12 ago forcing HR people to change gears, change hats and undertake roles that have
Resource and
Logistics Management at Airports developed as quite complex, demanding and challenging. The personnel manager is
supposed to bring about variation creativities that help people grow and understand
their potential fully and also act as a strategic partner translating management rhetoric
and philosophy into concrete action plans.
Personnel Management is all about people at work and their relationships with each
other. It may be defined as a set of programmes, functions and actions aimed to
enhance both personal and organisational goals. It is basically concerned with that the
organisation invites and hire qualified, imaginative and competent people for the
organisation. This function also comprises the formation of several rules to deal with
the workers and to preserve them with the organisation.
The main aim of personnel management is getting the best out of people. By keeping
in mind the concerns and desires of people at work, HR people normally plan policies
directed at meeting the individual, organisational and societal goals. Incentives and
rewards are put in place so as to increase performance from time to time. The
principle of parity, i.e., every one receiving salaries in a fair and reasonable manner,
when associated to their colleagues working inside and outside the company is also
taken care of. The stress is on creating a healthy work climate where employees can
work with freedom and self-sufficiency. (The terms ‘personnel management’ and
‘human resource management’ have been used interchangeably in this text – putting
aside the subtle differences between the two).
1.6 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

IN AVIATION
To enable easy understanding, the purposes of HR managers may be generally divided
into two categories: managerial functions and operative functions.
1.6.1 Managerial Functions

The basic managerial functions involve planning, organising, directing and
controlling.
1. Planning: Planning deals with the determination of the upcoming sequence of
action to accomplish preferred results. Planning of employees these days avoids
calamities tomorrow. The HR manager is projected to define the HR programme
concerning recruitment, selection and training of employees.
2. Organising: This purpose is mainly concerned with proper grouping of personnel
activities, allocating different sets of activities to different personalities and
assigning authority. Formation of an appropriate basic structure is his main task.
Organizing, actually, is considered to be the wool of the entire management fabric
and hence cannot afford to be overlooked.
3. Directing: This comprises directing and controlling the workforces. To implement
policies, direction is vital as without direction there is no destination. Many a
time, the victory of the organisation is influenced by the direction of things rather
than their strategy. Direction comprises motivation and leadership. The HR
manager must be an active leader who can make winning teams. While
accomplishing results, the HR manager must, habitually, take care of the
apprehensions and expectations of workforces at all levels.
4. Controlling: Controlling purpose of HR management includes evaluating the
employee’s performance, correcting negative deviations and assuring a proficient
execution of plans. It makes persons conscious of their performance by the help of
periodical reports, records and personnel audit programmes. It makes sure that the 13
events are being carried out in accordance with stated plans. in Aviation
1.6.2 Operative Functions

The operative function of P/HRM is interrelated to particular actions of HR
management, viz., employment, development, compensation and industrial relations.
These functions need to be achieved in combination with managerial functions.
1. Procurement Function: The first operative function of HR management is
procurement. It is concerned with acquiring and employing people who own
required expertise, information and aptitude. The procurement function includes
job analysis, manpower planning, recruitment, selection, placement, induction and
internal mobility.
Job analysis: It is defined as the process of accumulating information
concerning to the processes and accountabilities relating to a particular job.
Human resources planning: It is a practice of defining and assuring that the
organisation will have a sufficient number of competent individuals, available
at correct times, performing works which would run into their needs and offer
contentment for the personalities involved.
Recruitment: It is the practice of searching for forthcoming workforces and
encouraging them to apply for jobs in the organisation.
Selection: It is the practice of determining credentials, experience, skill and
knowledge of an aspirant with a view to reviewing his/her suitability to the
job in question.
Placement: It is the process that makes sure a 360º fit, matching the
employee’s credentials, experience, abilities and interest with the job on offer.
It is the responsibility of the personnel manager to place the right applicant at
the right level.
Induction and orientation: Induction and orientation are procedures by the
help of which a new employee is rehabilitated in his new environments and
familiarized to the practices, policies, and people. He must be accustomed
with the codes which describe and drive the organisation, its assignment
statement and values which form its support.
Internal mobility: The movement of workers from one job to another through
transfers and promotions is called internal mobility. Some workers leave an
organisation owing to several reasons that may lead to resignation, retirement
and even termination from job. These movements are recognized as external
mobility. In the best interest of an organization and its workforces, such job
changes should be directed by well-conceived values and strategies.
2. Development: It is defined as the process of refining, moulding, changing and
increasing the services, knowledge, creative ability, capacity, attitude, morals and
obligation established on present and future requirements at both individual’s and
organization’s level. This function includes:
Training: Training is a nonstop procedure by which workforces acquire skills,
knowledge, abilities and attitudes to promote organisational and personnel
goals.
Executive development: It is an orderly practice of increasing professional
skills and capabilities through suitable programmes.
14 Career planning and development: It is the scheduling of one’s career and
Resource and
Logistics Management at Airports application of career plans by means of education, training, job search and
gaining of work experiences. It comprises succession planning which suggests
identifying, developing and tracking important persons for executive
positions.
Human resource development: HRD has an objective of developing the entire
organisation. It makes a climate that empowers every employee to develop
and use his skills in order to further both individual and organisational goals.
3. Motivation and Compensation: It is a method which stimulates individuals to
contribute their finest to the organisation through the use of internal (achievement,
recognition, responsibility) and external (job design, work scheduling, appraisal-
based incentives) rewards.
Job design: Organising jobs and accountabilities to a productive unit of work
is called job design. The main aim of job design is to incorporate the needs of
employers to suit the necessities of an organization.
Work scheduling: Organisations must understand the significance of planning
work to encourage employees by the help of job enrichment, shorter work
weeks, and flexi-time, work sharing and homework projects. Employees need
to be tested at work and the job itself must be one that they value. Work
scheduling is an effort to structure work, incorporating the physical,
physiological and behavioural aspects of work.
Motivation: Uniting forces that permit individuals to act in positive ways is an
important feature of motivation. Individuals must have both the skill and the
inspiration if they are to execute at a high level. Managers usually try to
inspire people through appropriately administered rewards (financial as well
as non-financial).
Job evaluation: Organisations officially regulate the worth of jobs through the
methods of job evaluation. Job evaluation is the efficient practice of defining
the comparative worth of jobs in order to found which jobs should be
rewarded more than others inside the organization. Job evaluation helps to
begin internal likeness between various jobs.
Performance appraisal: After a worker has been selected for a job, is given
training on that work that need to be carried out for a particular time, his
performance should be estimated. Performance evaluation or appraisal is the
practice of determining in what way workforces do their jobs. It is a process
of evaluating the behaviour of workforces at the workplace and generally
comprises both the quantitative and qualitative features of job performance. It
is a methodical and objective way of assessing work-related behaviour and
potential of employees. It is a procedure that includes defining and
collaborating to an employee how he/she is performing and preferably,
establishing a plan of improvement.
Compensation administration: Compensation administration is the method of
allotting how much an employee should be salaried. The significant aims of
compensation administration is to design a low-cost pay plan that will appeal
to, motivate and retain capable employees – which is also perceived to be fair
by these employees.
Incentives and benefits: In addition to a simple wage structure, most
organisations currently offer incentive compensation based on authentic
performance. Unlike incentives, benefits and services are presented to all
personnel as necessary by law comprising communal safekeeping, insurance,
workmen's compensation, welfare amenities, etc. Organisations have been 15
proposing a surplus of other benefits and services as well as a means of in Aviation
‘sweetening the pot’.
4. Maintenance: It purposes of guarding and conserving the physical and
psychological well-being of employees through several well-being measures.
Health and safety: Managers at all stages are expected to recognize and
implement safety and health values all through the organisation. They must
make sure that a work environment that safeguards employees from physical
hazards, unhealthy conditions and unsafe acts of other employees. Through
appropriate safety and health programmes, the physical and mental well-being
of staffs must be conserved and even enhanced.
Employee welfare: Employee welfare comprises the services, amenities and
facilities given to the workforces within or outside the establishment for their
physical, psychological and social well-being. Housing, transportation,
education and recreation amenities are all involved in the employee welfare
package.
5. Integration Function: This tries to incorporate the aim of an organization with
employee objectives through several employee-oriented programmes, like
rectifying criticisms on time, introducing proper disciplinary events, authorizing
persons to choose things freely, boosting a participative culture, proposing
productive aid to trade unions, etc.
Grievance redressal: A complaint is any aspect connecting wages, hours or
circumstances of service that is used as a grievance against the employer.
Constructive grievance treatment is influenced by first on the manager’s skill
to recognize, identify and correct the causes of potential worker discontent
before it transforms into official grievance.
Discipline: It is the force that stimulates an individual or a group to perceive
the guidelines, regulations and actions, which are considered essential for the
accomplishment of an objective.
Teams and teamwork: Self-managed teams have developed as the most
essential official groups in today’s organizations. They improve employee
contribution and have the potential to produce helpful synergy. By growing
worker communication, they create companionship among team members.
They inspire persons to redirect their specific aims for those of the group.
Teams have integral strengths which eventually lead to organisational
achievement at various levels.
Collective bargaining: It is the method of approving on an agreeable labour
agreement between management and union. The agreement contains treaties
about conditions of employment such as wages, hours, promotion, and
discipline, lay off, benefits, vacations, rest pauses and the grievance
procedure. The practice of bargaining usually takes time, as both parties
incline to make suggestions and counter-proposals. The subsequent contract
must be approved by unions, workers and management.
Employee participation and empowerment: Participation simply means
sharing the decision-making ability with the lesser ranks of an organisation in
a suitable method. When workers contribute in organisational decisions they
are capable to realize the big picture clearly and also how their movements
would impact the total progress of the company. They can give feedback
instantaneously on the basis of their experiences and increase the quality of
choices greatly. Industrial relations: Harmonious industrial relations between
16 labour and management are important to attain industrial progress and higher
Resource and
Logistics Management at Airports efficiency. When the association between the parties is not pleasant,
dissatisfaction grows and clashes break out abruptly. It is not every time easy
to put off the fires with the prevailing dispute clearance machinery, created by
the government. Hence both labour and management must raise the value of
the importance of openness, trust and teamwork in their everyday dealings.
6. Emerging Issues: Actual management of human resources depends on filtering
HRM practices to altering conditions. Hence, there is a need to look at other
significant subjects that can stimulate people to provide their best in a dynamic
and ever-changing environment.
Human Resource Audit: Human resource audit refers to an investigation and
appraisal of policies, processes and practices to control the competence of
HRM. Personnel audit:
(a) Measures the efficacy of personnel programmes and practices.
(b) Determines what should or should not be done in future.
Human Resources Research: It is the method of estimating the efficiency of
human resource policies and practices and developing more suitable ones.
Human Resources Accounting (HRA): It is a measurement of the cost and
value of human resources to the organisation. Human resource management is
said to be in effect if its assessment and influence in any organisation is more
than its price.
Human Resource Information System: HRIS is a combined system intended to
expand the efficacy with which HR data is compiled. It makes HR records
more valuable to the management by allocating as a source of information.
Stress and Counselling: Stress is the mental and physical response to certain
life occasions or circumstances. Companies are closely looking at what should
be done to encourage the physical and mental well-being of workforces
through proper analysis and worker expansion programmes.
International Human Resource Management: International business is
significant to nearly every business these days and so companies must
gradually be managed with a pure comprehensive focus. This, certainly, poses
many tests before managers containing coordinating production, sales and
financial operations on a global basis. Worldwide HRM places better
importance on a number of accountabilities and functions such as relocation,
orientation and training services to help employees adjust to a new and
different environment outside their own country.
Check Your Progress 1

State whether the following statements are true or false:
1. Human Resource has nothing to do in profit making of the industry.
2. HR is a very important part of the aviation industry.
3. Stress is the mental and physical response to certain life occasions or
circumstances.
4. It is the method of approving on an agreeable labour agreement between
management and union.
17
1.7 DIFFERENCES IN THE HUMAN RESOURCE Human Resource Management
in Aviation
MANAGEMENT OF AIRLINE COMPANIES
This section of the lesson is composed of two major parts. The first part emphasises
on the deviations in the external atmosphere, which has influenced the HRM in the
airline industry since late 1970s. Different methods of HRM in the aviation will be
recognized in the process. British Airways (BA) will be used as an example of “hard”
and South West Airlines (SW) as an example of “soft” HRM approach. The second
part will examine British Airways and South West Airlines methods of adaptation to
the external pressures. Special stress will be made on how the organization style
accepted by BA and SW influences their HRM approach.
The need to know the HRM methods accepted by airline corporations is better since
airline industry is accounted amongst service businesses. A clear connection among
the employee and customer contentment, in service industries, has been recognized
since 1980s, when the term human resource management (HRM) started to swap the
term personal management. Since then writers point out that HRM should be
integrated in the business policies of corporations, as it could deliver a market
competitive benefit. The leading feature of service industries is the significance of the
“human factor” that provides the customer service. On the other hand the way
companies manage their HR policies can be further divided in the views of managerial
strategy, the “soft” and “hard” HRM approach. Hard approach can be described as
viewing the employees as one of the costs of doing business. Then again “soft”
approach can be defined as “the treatment of employees as esteemed assets, where the
stress is on producing their promise channel communication, motivation and
leadership”. To realize the motives behind the HRM methods accepted by airlines, the
essay will start with a brief explanation of factors, which are argued to have the
biggest effect on the industry.
According to Som (2003) and Appelbaum and Fewster (2004) deregulation of the
United States Airline industry in 1978 triggered a chain of events that led to the
liberalization of markets throughout the world. The later had two major effects. First
and instantaneous one was the entrance of low cost airlines in the market. The second,
more regular outcome was the result of augmented struggle forces from the low cost
airlines. Competition forced bigger countrywide owned airline carters to improve the
business strategies and accept new cost saving measures, which consequently drove
the need for their privatization.
An allegation that can be made is that the time period between the US and EU airline
industry deregulation played an energetic role in defining the HRM style of airline
corporations. Blyton et al. (2001) points out that before the deregulation airline market
was stable, predictable and often State controlled. Because of the limitations enforced
by the State, companies did not want to cut costs or grow new products to compete on
the market. The “monopoly” situation of airlines meant market steadiness and the
consequence was job safety and good circumstances of service. That sharply changed
for the European carriers with the deregulation of the EU market in 1997. BA
undertook the problem of increased opposition and thus cost cutting by proposing
controlled redundancy to 5,000 of their employees.
The US airlines went through the deregulation practice almost 20 years earlier, when
airline industry was not well developed. That made their competition adaptation
development more regular. The latter could consequence in adaptation of the “softer”
HRM methodologies of some companies. Legge (2005) also maintains that due to the
cultural differences US companies are more likely to lean towards the “soft” and UK
companies towards the “hard” HRM style.
18 In addition to service orientation of the industry and competition pressures among
Resource and
Logistics Management at Airports airlines, safety-sensitivity is argued to be the third factor that has a strong influence on
the HRM of airline companies (Holtbrügge, Wilson and Berg, 2005). Crisis events,
especially terrorist attacks in September 2001 raised the level of safety-sensitivity and
resulted in a sharp 32 per cent drop in the number of the passengers carried (WTO,
2006). Consequently many of the major US Airlines, such as United Airlines and US
The crisis events, such as terrorist attacks, virus SARS and the Tsunami had a main
influence on the airline industry and therefore the HRM styles of airline carriers.
Because of the severe fall in the revenue, airline firms additionally reduce the number
of cabin crew to the smallest prerequisite, increased working hours and put pressures
on staff to overlook the safety hazards in order to speed up the turnaround time of
airplanes. Although the labour association between the BA employees and
management improved from 1997 and the management started investing in training
and working conditions with the “Putting People First” initiative, September 11th
attacks forced the BA to once again adopt the “hard” HRM approach. BA cut 13,000
jobs or 23 per cent of their personnel in years from 2001 to 2004 and removed the
Christmas bonuses for their employees (Vedpuriswar and Ramachandran, 2003). Boyd
(2001) maintains that economic and political environment provided airline
corporations with the liberty to accept the” hard” HRM approach, though the example
of SW shows that, with the well-organized planned management, corporations are able
to cut costs in other areas than labour and consequently recollect the “soft” HRM
style.
Other features of SW are their cost saving trials. They are saving money by flaying in
and out of airports that are situated close to the city centre. This strategy allows to
retain clients that do not need to travel 45 minutes to an airport to board a flight that
only takes 40 minutes. SW also established a system of point-to-point trips, with 20 to
30 minutes turn-around time. No seating plan supports to speed up the lodging time
and aids limitation the time plane has to spend on the ground. They do not attach with
other carriers; consequently do not want to apply extra money on waiting for linking
travellers. Company is in the air to the less packed airports, where there is less chance
for delays and simultaneously airport taxes are lower, which reduces the price of the
airline tickets. They use only the Boeing 738 airplanes, which stay in the air 12h
(competition 8,6h) and make over 7 flights daily. By the use of only one form of plane
decreases the cost of upkeep and cost of staff training. The next way that SW
maintains is its competitive advantage with persistent product improvement. They
were first air-company in the world with their own Internet site and had started to sell
online tickets, as one of the first biggest air companies, in 1995. SW was the first
airline that does not serve food on the plane. SW also considers rail and train transport
as rivalry. It is its strategy to keep values low even if the request for definite routs
rises. They are constantly devoting in marketing; over 4 million people are promised
to their weekly Internet publication. The management smartness and strategy accepted
by the SW has allowed them to make long-term savings in their employees, with profit
sharing, no redundancy policy, extensive training and career promotion opportunities
It has to be recognized that some of the overhead declared costs saving events could
only be approved by the low cost airlines, because of the lower feature of facility
estimated by customers, though other non-budget airlines established other methods to
prices savings. One of the replies of airline carriers to opposition pressures was
starting of alliances, which aided the companies to keep competitive edge and cut
costs by sharing facilities and routs. Boyd asserts that four major associations that
were designed in late 1990s now account for 46 per cent of world market. If starting
the associations showed as a good marketing strategy, two-thirds of all merges and
attainments in global aviation, mainstream of them in the US, failed because they did
not prosper in mixing the organisational HR culture. This again validates the 19
significance of the HRM in the airline industry. in Aviation

Fill in the blanks:
1. HRA stands for ………………….
2. HRM attains ………………… and effectively the organizational goals.
3. …………………… and ……………………… are the two main
functions of HRM.
1.8 LET US SUM UP

The aviation industry is an exceptionally competitive, safety-sensitive, high
technology service industry. General public, workforces and clienteles, not products
and machines, must be the arena of an organization’s core capability. The inferences
are immense and universal affecting no less than the organization’s arrangement,
strategy, culture, and several working activities. The conclusion drawn from this work
is that, with the exception of a handful of high performing airlines, the industry as a
whole continues to function as per a traditional, top-down, highly divisionalised,
industrial model of processes and governance. HRM expertise in general and
recruitment and selection as well diversity and equal opportunity in particular are
necessary now, more than ever, to spearhead the strategic development of a customer-
centric, learning-oriented workforce that is capable of adapting quickly to the strategic
goals and change imperatives facing the airline industry
1.9 LESSON END ACTIVITY

Identify the HR policies of your college and discuss them in your class.
1.10 KEYWORDS
Collective Bargaining: Collective bargaining is a process of negotiations between
employers and a group of employees aimed at reaching agreements that regulate
working conditions.
Compensation: Compensation of employees (CE) is a statistical term used in national
accounts, balance of payments statistics and sometimes in corporate accounts as well.
It refers basically to the total gross (pre-tax) wages paid by employers to employees
for work done in an accounting period, such as a quarter or a year.
HRA: A Human Resources Audit is a comprehensive method to review current human
resources policies, procedures, documentation and systems to identify needs for
improvement and enhancement of the HR function as well as to ensure compliance
with ever-changing rules and regulations.
HRIS: It refers to the systems and processes at the intersection between human
resource management (HRM) and information technology.
HRM: Human Resource Management is defined as the management of human capital
at the work place.
Wages: Wage is remuneration paid by an employer to an employee. It may be
calculated as a fixed task based amount, or at an hourly rate, or based on an easily
measured quantity of work done. It is contrasted with salaried work, which is based on
a fixed time period and with commission which is based on performance.
20
Resource and 1.11 QUESTIONS FOR DISCUSSION
Logistics Management at Airports
1. Explain HR in aviation.
2. Explain the strategies that the HR Manager uses to increase the profit of the
organisation.
3. What are the differences in the Human Resource Management of airline
companies?
4. Distinguish between soft approach and hard approach in HR policies.
Check Your Progress: Model Answers

CYP 1
1. False 2. True
3. True 4. True
CYP 2
1. Human Resource Audit 2. economically
3. Managerial and operative
1.12 SUGGESTED READINGS

Wells A- Airport Planning and Management, 4th Edition- McGraw Hill London 2000
Doganis. R- The Airport Business- Routledge, London 1992
Alexander T. well, Seth Young- Principles of Airport Management - McGraw Hill 2003
21
LESSON Managing Internal Relations
in an Airline Firm
2
MANAGING INTERNAL RELATIONS IN AN
AIRLINE FIRM
CONTENTS
2.1 Introduction
2.2 Dealing with Superiors
2.2.1 Misreading the Boss–Subordinate Relationship
2.2.2 Understanding the Boss
2.2.3 Understanding Yourself
2.3 Dealing with Peers
2.4 Dealing with Subordinates
2.5 Management Styles in Managing Work Relations
2.6 Let us Sum up
2.8 Keywords

z Discuss the characteristics of relationship among the workers in the organization
z Explain the relationship among supervisors and peers
z Describe the management styles in managing work relations
2.1 INTRODUCTION
Sustaining the association between superior and subordinate will change greatly,
depending on the opportunities of the individual parties. Some will settle down for
nothing less than a close relationship with their superior, and others may be just
absorbed on conserving a specialized association, while some may not get well along
with their superiors may focus on just maintaining a public relationship. The
uncommon association between superior and subordinates needs detailed conservation
approaches since some typical ones, like avoidance, are unacceptable. There are four
common types of connection. First there are easy connections, such as joking and non-
work related discussions that give emphasis to creating a friendship. There are also
formal connections, such as politeness and respect for the superior's power, that help
22 to create a professional superior–subordinate association. There are also strategies to
Resource and
Logistics Management at Airports perform inspiring to the superior, such as indecision to deliver bad news or being
enthusiastic. The final association preservation policy comprises open conversation
about the association with the superior, including openly telling them how they want
to be treated in the office
2.2 DEALING WITH SUPERIORS

It is unusual to many people to use the phrase "managing your boss". Because of the
outdated top-down stress in most organizations, it is not understandable that why you
want to manage relationships upward, you do so for personal or political motives. But
we are not mentioning to political directional or to apple polishing. We are consuming
the term to mean the process of deliberately working with your superior to get the best
promising results for you, your boss, and the firm.
Effective managers take time and energy to make good relation not only with their
subordinates but also with their bosses. This essential characteristic of management is
occasionally overlooked by talented and aggressive managers. Certainly, some
managers who dynamically and effectively manage subordinates, products, markets,
and technologies undertake nearly inactive sensitive attitude in respect of their bosses.
Such a stance almost always hurts them and their companies.
2.2.1 Misreading the Boss–Subordinate Relationship

People often do not entertain the examples like the one we just used as being simply
circumstances of personality conflict. As two individuals can at certain instance be
mentally or temperamentally incompetent of working together, this can be a suitable
description.
However more frequently, we have found, a character conflict is the only problem –
occasionally a very small part. Some individuals perform as if their superiors were not
very reliant on them. They are not successful to see how much the superior needs their
assistance and collaboration to do his or her job efficiently. These people decline to
admit that the superior can be strictly hurt by their activities and requirements
collaboration, reliability, and trustworthiness from them.
Some individuals see themselves as not very reliant on their bosses. They dwell on
how much service and evidence they need from the boss so as to achieve their own
jobs well. This posturing view is predominantly harmful when a manager's job and
results disturb other parts of the group. A manager's instant boss can show a serious
part in connecting the supervisor to the rest of the business, ensuring the manager's
urgencies are steady with structural requirements, and in safeguarding the properties
the manager requirements to achieve well. Yet some bosses need to see themselves as
almost self-sufficient, as not demanding the critical figures and resources a boss can
supply.
Many managers, assume that the boss will miraculously see what information or
assistance their subordinates need and offer it to them. Undoubtedly, some superiors
do an outstanding job of caring for their subordinates in this way, but for an executive
to assume that from all supervisors is precariously unrealistic.
A more sensible expectancy for managers to have is that diffident assistance will be
approaching. After all, bosses are only human. Actually effective managers admit this
information and assume prime duty for their own careers and development. They
make a point of pursuing the information and assistance they need to do a career
instead of waiting for their bosses to provide it.
Managing a condition of mutual dependency amongst fallible human beings needs the 23
Managing Internal Relations
following: in an Airline Firm
1. You have a decent understanding of the other individual and yourself, particularly
concerning strengths, flaws, work styles, and requirements.
2. You can use this intonation to grow and achieve a strong operational association-
one that is well-matched with both people's work styles and assets, is categorized
by mutual opportunities, and meets the most serious requirements of the other
individual.
This combination is fundamentally what we have found extremely effective managers
doing.
2.2.2 Understanding the Boss

To work well with your boss needs that you must gain an understanding of the boss
and his or her background, as well as your own condition. All managers do this to
some degree, but many are not thorough enough.
At a minimum, you must appreciate your boss's objectives and pressures, his or her
strong point and flaws. What are your boss's structural and individual objectives, and
what are his or her pressures, particularly those from his or her own boss and others at
the same level? What is the favourite style of doing a job? Does your boss like to get
data through memorandums, official meetings, or phone calls? Does he or she thrive
on conflict or try to minimize it?
Without this information, a supervisor is flying unseeing when dealing with the boss,
and needless battles, confusions, and difficulties are unavoidable.
In one situation, a top-class marketing manager with a superior performance record
was employed into a company as a vice president "to straighten out the marketing and
sales problems." The company, which was having financial complications, had
recently been learned by a larger company.
The president was keen to turn it around and gave the new marketing vice president
free rein-at least initially.
Based on his prior experience, the new vice president properly identified that bigger
marketplace was required for the business and that strong product management was
mandatory to bring that about. Following that logic, he made a number of estimating
choices designed at growing high-volume business.
When boundaries failed and the financial condition did not progress, nevertheless, the
president amplified pressure on the new vice president. Believing that the situation
would ultimately correct itself as the corporation grew back in market share, the vice
president fought the pressure.
When by the subsequent quarter, margins and profits had still failed to improve, the
president procured straight control over all estimating conclusions and put all stuffs on
a set level of boundary, irrespective of volume.
The new vice president inaugurated to find him shut out by the president, and their
connection faded. Actually, the vice president found the president's behaviour strange.
Inappropriately, the president's new valuing arrangement also miscarried to increase
margins, and by the fourth sector, both the president and the vice president were
dismissed.
What the new vice president had not recognized while waiting for it was too late was
that refining marketing and sales had been only one of the president's goals. His most
immediate goal had been to make the company more profitable-quickly.
24 The vice president made three simple errors. He took information provided to him at
Resource and
Logistics Management at Airports face value, he made suppositions in parts where he was not having information, and –
what was most damaging – he certainly not vigorously tried to explain what his boss's
purposes were. Consequently, he finished up taking arrangements that were really at
odds with the president's importance and objectives.
Managers who function successfully with their bosses do not behave this way. They
try to find out information about the boss's objectives and difficulties and pressures.
They are attentive for occasions to interrogation the boss and others around him or her
to test their suppositions.
They pay responsiveness to clues in the boss's behaviour. Although it is overbearing
that they do this particularly when they inaugurate employed with a new boss,
effective managers also do this on an ongoing basis because they identify that imports
and concerns change.
Being thoughtful to a boss's work style can be important, specifically while the boss is
new. He also wished official conferences with set programs. One of his division
managers understood this requirement and worked with the new president to recognize
the kinds and frequency of information and news that the president desired. This
executive also made a point of sending background information and brief agendas
ahead of time for their discussions. He found that with this type of research their
meetings were very useful.
Another exciting consequence was, he found that with suitable planning his new boss
was even more real at brainstorming difficulties than his more casual and instinctive
predecessor had been.
2.2.3 Understanding Yourself

The boss and you both are the halves of the relationship as well as the part on which
you have additional straight control. Developing an effective working relationship
requires, then, that you recognize your individual needs, powers and flaws, and
personal style.
You are not going to change either your simple character assembly or that of your
boss. But you can develop consciousness of what it is about you that inhibits or
enables working with your boss and, with that responsiveness, take actions that make
the association more effective.
For instance, in one case we detected, a manager and his superior ran into problems on
every occasion they distressed. The boss's characteristic answer was to stabilize his
location and exaggerate it. The manager's response was then to raise the ante and
strengthen the influence of his argument. In doing so, he directed his annoyance into
improving his assaults on the rational myths he saw in his boss's suppositions. His
boss in tum would become even more obstinate about holding his original position.
Probably, this increasing cycle caused the subordinate sidestepping each and every
time probable any topic of potential conflict with his boss.
In studying this difficulty with his peers, the manager open that his response to the
boss was distinctive of how he usually responded to counterarguments- but with a
difference. His answer would overpower his peers but not his boss. Because his efforts
to discuss this difficult situation with his boss were ineffective, so he decided that the
only way to change the circumstances was to deal with his own inherent responses.
When the two reached a bottleneck, he would check his own irritation and suggest that
they break up and think about it before receiving together again. Generally when they
renewed their discussion, they had processed their changes and were more able to
work them through.
The system in which a manager handles these obstructions largely depends on his or 25
her tendency to requirement on authority figures. in an Airline Firm
Some people's natural reaction under these conditions is to resent the boss's ability and
to dissident against the boss's assessments. Sometimes a person will deteriorate a
conflict beyond what is suitable. Seeing the boss nearly as an official enemy, this type
of manager will frequently, without being aware of it, fight with the boss just for the
sake of struggling. The subordinate's reactions to being forced are generally strong and
sometimes spontaneous.
He or she perceives the boss as somebody who, by virtue of the role, is an interference
to progress, a hindrance to be avoided or at best tolerated. Psychologists call this
design of reactions counter helpless behaviour. Though a counter reliant on person is
problematic for most superiors to manage and typically has a history of stressed
relations with superiors, this sort of manager is apt to have even more trouble with a
boss who tends to be directive or authoritarian. When the manager acts on his or her
bad moods, habitually in subtle and nonverbal ways, the boss occasionally does
become the enemy.
Detecting the assistant's latent resentment, the boss will lose faith in the subordinate or
his or her conclusion and then behave even less openly.
Unexpectedly, a manager with this type of tendency is often a decent manager of his
or her own individuals. He or she will many times go out of the way to get support for
them and will not hesitate to go to bat for them.
On the other hand the managers who accept their annoyance and perform in a very
obedient fashion when the boss marks what they know to be a poor decision.
These managers will decide with the boss even when a difference influences the boss
and he would easily modify a decision if given more information. Because they accept
no association to the particular situation at hand, their replies are as much an
overreaction as those of counter dependent managers. In place of seeing the boss as an
opponent, these people negate their anger – the other extreme – and incline to see the
boss as if he or she were an all-wise close relative who should see best, should take
accountability for their careers, train them in all they need to see, and safeguard them
from excessively determined peers.
Both counter dependence and overdependence lead managers to hold impractical
views of what a boss is. Both opinions overlook that bosses, like everybody else, are
damaged and weak. They don't have limitless time, comprehensive knowledge, or
mystic observation; nor are they evil enemies. They have their own pressures and
concerns that are sometimes at odds with the wishes of the subordinate – and often for
good reason.
Changing tendencies to authority, particularly at the limits, is nearly incredible
without rigorous analysis (psychoanalytic theory and research suggest that such
predispositions are deeply rooted in a person's personality and upbringing). Though, a
mindfulness of these extremes and the assortment among them can be very suitable in
accepting where your own tendencies fall and what the allegations are for how you
incline to deport yourself in relation to your boss.
If you have confidence in, on the one hand, that you have some inclinations to counter
dependence, you can recognize and even forecast what your responses and
overreactions are likely to be. If, on the other hand, you trust you have some
inclinations toward overdependence, you might question the degree to which your
over obedience or incapability to challenge real variances may be making both you
and your boss less effective.
26 Check Your Progress 1
Resource and
Logistics Management at Airports State whether the following statements are true or false:
1. Supervisor do not help his junior.
2. Employees work in accordance with the rules set by the boss.
3. Subordinates increase the conflicts.
4. The management does not handle the conflicts.
2.3 DEALING WITH PEERS

In the office, handling relationships undertakes importance due to the countless
relationships - your peers, superiors, subordinates, partners, clients, customers, etc. –
and for everybody there's a different code of conduct. Though protocol is passé', many
corporations still have unexpressed rules that need to be followed.
Collaboration is really significant in the workplace. Working co-operatively for the
advantage of the clienteles is the drive of your job. You will appreciate your job much
more if the atmosphere is cooperative and positive.
Managing your peer group at office is like walking on the edge of a knife. The quicker
you develop to them, the interfering they will be. And, when you try to go far away
everyone would be readily stamping you as an introvert or boss’s close associate.
With a little bit of common sense and some official tactics applied in the office
environment, you could easily win over their heart without earning the bad name from
your boss.
Following are some important tips to develop actual working connection with your
peers:
1. Search for Common Goals: Proactively spread out for a mutual denominator.
Think of how you can add value. Spread a hand to upkeep your nobles in areas
that you can affect.
If outstanding client provision is critical to you and your peers, start a
conversation with them on the best way to attain it. Find out the pertinent
variables that will impact customer service. For instance, one of the variables is
apt delivery, of your goods within 30 days from the date of an order.
You should proactively seek to comprehend the whole distribution procedure of
such product and control what you control in a straight line as well as what you
can effect indirectly.
Approximately, the whole distribution process will include getting an authorized
command from the customer, inputting in order facts into your supply chain
system, studying order particulars by the product fulfilment group, confirming
products readiness, turning them for consignment, padding the products and
shipping/delivering them to customers.
On the basis of the delivery process, one would know closely which mechanisms
you have straight control on. And for those workings, you execute promptly.
Similarly, one would also know which constituents you can effect ultimately. And
for these constituents, offer support and backing to your peers enthusiastically.
2. Establish Trust and Respect: Make an atmosphere of trust and admiration with
your peers. The operative way to launch that is to reliably validate these
behaviours:
Do not put your peers on the spot: If there are any subjects or difficulties 27
interrelated to your aristocrats work systems, ensure that you participate and in an Airline Firm
converse with them directly first. The last article that you would need to occur
is for such matters to be taken up in the organization or staff conference or
email communication deprived of their prior knowledge.
Be a true professional: Escape conversation about your peers in arrears or
being involved in office chatters.
Keep your commitments: If you say you need to do a little within a definite
time, do it and distribute on time.
Resolve conflicts with urgency: Work on talking battles with your peers at the
first possible time. Uncertain clashes will obstruct development in association
building, team building as well as ongoing projects.
Make yourself available: Accept an open door strategy. Be presented to listen,
discuss, debate and plan together with your peers. Sometimes, make time to
have lunch together.
3. Pursue Collaboration: Continuously ask yourself, “In what way best can I work
together with my peers for the profit of my organization?” You can think through
the following methods to team up with your peers:
Seek clarity on shared goals, roles and responsibilities: You must jerk on the
right path. Participate with your peers and converse about developments that
you equally work together. Be clear about the development goals. Talk
through particulars on who is hypothetical to do what and when.
Imprisonment your mutual contracts in terms of common goals, roles and
duties to ease the procedure of checking progress later.
Negotiate fairly: When assigning for creativities, finances and possessions,
every time recollect that your association requirements come first, not wants.
Take the high road. Focus on the joint purpose. Classify individual needs. In
the event that you end up with unfavourable outcomes, concede without being
personal.
Be responsibly responsive: Re-join to communications and voicemails in an
appropriate manner. Give your peers’ matters and worries just as considerable
importance as yours. Avoid plagiarism of a huge list of people on a long email
chain with an intention of revealing error or winning mindshare from others.
When you have a severe difference in a seminar, take the matter off line, in
private.
Celebrate success: Identify achievement as it comes, no matter how small.
Mark it a routine to enjoy yourself every milestone attained. Such merriment
and acknowledgement sustain your energy and motivation to go on ahead.
Actually, take the chance, in a staff conference for example, to identify your
peers and highpoint their major contributions.
4. No Blame Game: “When a fellow points a finger at somebody else, he should
recall that four of his fingers are indicating at himself.” - Louis Nizer. Quit
accusing others. If to some degree goes extremely wrong, be it in missions or
association with your peers, take a step back and review the circumstances under
these lenses:
Treat everything as a learning experience: Every single day presents a new
chance for you to learn to be a recovering person. The best way to learn the
most is by concentrating on these three aspects:
28 Agree on what should be done differently moving forward
Resource and
Logistics Management at Airports Capture what’s working and what’s not
Take stock of what really happened
Make a choice: Choose not to tag yourself as the ‘victim’. Charging others for
entirety that goes incorrect everywhere you will give them your control. You
will end up at the dropping end – feeling regretful for yourself, ongoing to tick
on the problem and not capable to let go. Consequently, you won’t be
competent to make any development. In its place, be a slight self-critical.
Identify your flaw and the fact that you might have partially contributed to the
whole condition. With these feelings, you would be able to accurately
examine the condition and choose for yourself on the main developments that
you want to follow.
5. Make Time to Bond with Each Other: This is so clear that many are inclined to
take it for granted. It gives to get to identify your peers well. Take an honest
attentiveness in their lives. Devote time with them in comfortably setting external
activities of the office such as going to lunch/dinner, playing golf, doing common
hobbies etc. It helps to build relationship which will go a long way to establish a
condition of common admiration and attention between each other.
6. Recognize Good Work: Compliment somebody – honestly, properly – when
they’ve completed something effectively. Whether this means in public noticing
all their hard work at your following management meeting, or just dipping by their
desk to thank them for helping you perfect your presentation, you’ll build trust
and consideration from your peers with simple recognition.
You’ll be astonished at in what way it can change the tone of a discussion or even
an association. In fact, try giving your boss a genuine admiring comment; perhaps
somewhat you learned from them or that captivated you. It appears like higher up
you go the fewer accolades you receive.
7. See Your Peers as Your Most Powerful Advocates: Just because somebody is at
the same professional level as you doesn’t mean they can’t have a vast impact on
your future achievement. A professional once said, “I used to emphasis all of my
networking vigour on people I believed were ambitious and prominent, assuming
they might have the main overall impact on my future.
But who ended up becoming the system I trusted upon for chances, support, and
big ideas? It was the persons I helped who were in the same place as I was when
we were all just figuring it out.
You at no time recognize that who around you has the ability to totally change
your life. Don’t write off your peers for their apparent lack of inspiration or
power; involve them, and pool forces as you all get healthier at what you do”.
Furthermore our organization peer relations are critical to our victory as a manager.
These associations can also be very annoying. Managers obviously have our areas of
accountability, but our area of duty is eventually impacted by additional manager's
procedures, events, or directives. Our job is to effectively work with managers with
different priorities, objectives, characters, and responsibilities. We don't need to select
who we work with, but the relations we figured and affect our performance.
Popular management peer relations let us to be extra effective. Making process
developments, proficiency gains, and applying events which affect other areas of duty.
Deprived of positive relations, managers can become "regional". This time and again
results in concentrating only on our area of duty leaving enactment chances
unfamiliar. Good relational abilities and actual relational communication are vital 29
tools desired to build management relationships that make value and inferior to in an Airline Firm
necessary constituents of the relationship.
1. Education/Understanding: Successful management relations are constructed on
education and understanding. We must recognize other manager's ranges of duties
to undoubtedly know how procedure and technique changes in our area have
impact on other pieces of the action. As managers, we must instruct our peers as
fluctuations to their areas of accountability affect our operations. Taking the time
to learn how our presentation affects other managers allows us to make better
decisions for the business and gives us valued information to converse efficiently
with our peer managers.
2. Focus on Business Needs: Effective managers emphasise on commercial
requirements in its place of departmental needs. What is the best choice for
company effectiveness? That is the question that must be responded by managers
and our peers. Upper management is anxious with profitability. Mangers must be
focused on profitability. Accounting, quality, production, sales, engineering, etc.
all influence it. Successful managers think of the business requirements and how
conclusions affect overall profitability. If manager’s communications, decisions,
and actions continuously emphasis on the requirements of the business, our peers
will grow faith in our affiliation and respect our opinions.
3. Effectively Communicate: Managers must be able to link our ideas to make
fruitful peer relations at work. Managers must be talented to break down walls to
effective communication. Actual written communication permits managers to
offer, measure, and count process progresses and their impact on productivity.
Good managers create suggestions built on truths and based on commercial
requirements to connect with peers. Opinions, unsupported facts, and lack of
information breeds barriers to communication and result in managers spending
valued time solving conflict with our peers.
4. Accountability: Managers must embrace each other responsibility. Effective
relations are constructed on responsibility. Applications, material for applications,
and process developments need teamwork. We must be answerable to fulfil our
promises and our peers answerable to fulfil theirs. Accountability creates faith.
Without it, somebody will not be as effective as they should be. Managers connect
in group gatherings and comfortable settings. Effective managers place
answerability in formal meetings, document of particular duties, and hold each
other accountable for commitments accepted.
2.4 DEALING WITH SUBORDINATES

The master-servant relation is also known as the supervisor–employee relationship. It
is one that is continuously being conversed, anticipated and revisited. Supervisors
have problem in dealing with a subordinate when they are recently endorsed to
managerial rank, now in-charge of workers who were once their peers. Also,
supervisors practice difficulties allocating with subordinates who refuse to follow
work orders and are insubordinate. Another task supervisors face is preserving a
headship role in its place of seeking admiration or being frightened of giving
employees positive response because they're scared that workers will react
destructively to response planned to improve performance.
1. Trust: Trusting a subordinate is a choice that you make when you appoint the
individual. Sequentially, you imagine the worker to trust you. Whether you carry
on to count on each other for the life of your working connection rest on the
activities you and your member of staff take. It is your responsibility to act in a
30 decent, honest, balanced and dependable manner at all periods so your subordinate
Resource and
Logistics Management at Airports has assurance in you and mirrors your performance. If you or your employee
breaks the trust among you by telling a lie, for example, the trust will be broken.
Re-establishing trust is exceptionally problematic but it is obligatory for an
agreeable, profitable relationship.
2. Communication: As a supervisor, continuously preserve open and authentic
communication with your dependents. Without consistent, two-way
communication among you and your employees, it's problematic to make sure that
workers recognize your performance prospects. And if employees don't know
what you and the organization think, it's unmanageable for them to accomplish
high performance ratings. On the other hand, communication is just the start of
dealing with your subordinates efficiently and in a way that cares a productive
working association. Communication is mainly important when you deliver
positive feedback concerning presentation deficiencies and when you conduct
performance appraisal meetings. Don't allow poor performance go unaddressed,
and abstain from avoiding the yearly face-to-face meetings with your subordinates
during performance assessment period.
3. Recognition: Management adviser Frederick Herzberg supposed that an active
way to encourage workforces was through acknowledgment, which is one
component of his two-factor, motivation-hygiene theory. Acknowledgment, such
as giving workers desirable projects when their performance permits higher-level
work and duties, is one way to encourage subordinates. When you give employees
more accountability, they are motivated to need to demonstrate that they're well-
intentioned of your recognition. In other words, they don't want to disappoint you
when you've recognized that their skill sets are good enough to promote them to
higher-level work.
4. Supervisor Popularity: As a supervisor, your objective isn't to increase your fame.
In fact, some of your conclusions will be disliked; however, as long as you stand
steady concerning work-related conclusions and are capable to rationalize the
occupational reasons that backing your decisions, your workforces will admire
you. The other is being a supervisor who's more worried about being popular
among a small set of workers, providing to their impulses rather than acting in the
best benefits of the whole work group.
5. Coaching Philosophy: Too many companies have discipline strategies that advise
a parent-child association is between supervisors and employees. There is no aim
for an employee to be "reprimanded" or sense that he's "in trouble" for problems
that include mature behaviour in an office where grown-ups work collaboratively.
Get free from the discipline-focused dialect and use expressions that suggest
employee coaching, positive strengthening and presentation advising. Refrain
from using terms and concepts that diminish employees' value to the organization.
Include language and ideas that establish esteem for your workers' talents, skills
and qualifications.
6. Effective Leadership: Real leaders view to gain as much from their workforces as
their workers gain from their managers. Don't pass up chances to study from
workers who report to you. Management guru John Maxwell says, "Leaders must
be close enough to relate to others, but far enough ahead to motivate them," which
means your role as a supervisor should have a fluid exchange of ideas from your
viewpoint, as well as from your employees. You and your staffs are, after all,
working to shared goals – general productivity and effectiveness. Placing too
much space between you and your subordinates doesn't put you any earlier to the
company's overall objectives.
7. Clarification of Roles: The relationship between supervisor and subordinate is 31
defined by their positions in the company. You need to be the leader of your in an Airline Firm
employee, as you have the professional authority and responsibility to embody
that role. The subordinate, likewise, needs to understand his role as an employee
and be committed to following your directives even if they conflict with his own
ideas. This does not mean he should not feel free to come to you with his own
concepts, which you should consider, but it does mean the final decision is yours
to make as his supervisor. While you want your relationship to be friendly, it is
your duty as manager to maintain the clearly defined roles of supervisor and
subordinate.
8. Boundaries: Boundaries must be proven in your associations with a staff
associate. It has to be proficient in nature. Even if your business manual does not
have a detailed procedure hostile mixing with staffs, you should make it a
particular rule not to develop complicated passionately relation with a
subordinate. This helps in protecting you and your employee from allegations of
superior treatment – and it safeguards you from charges of sexual harassment.
You should also avoid flattering too personally difficult in a relationship with your
subordinate. While you want your association to be friendly, it is not wise to
spread your affairs to personal outings and visits to one another's homes. You do
not want to develop so difficult that your decision is troubled by personal moods
for an individual.
2.5 MANAGEMENT STYLES IN MANAGING WORK

RELATIONS
Thus by keeping in notice the above conversation of handling relations with your
superiors, peers and subordinates we can come to an inference that in an organization,
managers achieve many functions and play numerous roles. They are in charge for
controlling many circumstances and these circumstances are typically dissimilar from
one another.
When it comes from to controlling such circumstances, managers use their own
management classes. Some management styles may be finest for the situation and
some may not be. So, awareness on dissimilar types of management styles will help
the managers to handle different circumstances the optimal way.
Autocratic
In this management style, the manager is the sole decision maker.
The manager does not upkeep about the subordinates and their participation in
decision making. So, the choices reproduce the character and the view of the manager.
The choice does not reproduce the team's collective belief. In some cases, this style of
management can move a business in the direction of its goals quickly and can contest
through a stimulating time.
If the manager has a great behaviour, involvement and introduction, the conclusions
made by him or her could be better than shared decision making. On the other hand,
assistants may become reliant on upon the manager's decisions and may need
thorough supervision.
There are two types of autocratic managers:
1. Directive Autocrat: These types of managers make their decisions without help
and oversee the assistants closely.
2. Permissive Autocrat: These types of managers make their decisions alone, but
allow assistants to freely execute the decisions.
32 Democratic
Resource and
Logistics Management at Airports In this style, the manager is open to other's sentiments and comfortable their influence
into the choice making process. Consequently, every choice is completed with the
majority's agreement.
The choices made reproduce the team's opinion. For this organization style to work
positively, robust message between the managers and the underlings is a must.
This type of organization is most fruitful when it comes to choice building on a
multifaceted matter where a variety of expert advice and opinion is necessary.
Before creating a business choice, typically a series of gatherings or brainstorming
sessions take place in the governments. These meetings are suitably deliberate and
recognized.
If decision making through the democratic style takes too long for a critical situation,
then it is time to employ autocrat management style before it is too late.
Paternalistic
This is one of the dictatorial types of management. The decisions made are usually for
the best interest of the company as well as the employees.
When the organization marks a choice, it is described to the employees and gets their
upkeep as well.
In this management style, work-life stability is give emphasis to and it finally upholds
a high confidence within the organization. In the long run, this promises the reliability
of the employees.
One disadvantage of this style is that the staffs may become reliant on the managers.
This will limit the originality within the organization.
Laissez-faire
In this type of organization, the manager is an originator for the staff. The employees
take the accountability of dissimilar areas of their work. Whenever the staffs face a
problem, the manager interferes and eliminates it. In this style, the employee is more
self-governing and possesses his or her duties. The manager has only a little decision-
making tasks to perform.
When associated with other styles, a minimum message takes place in this
organization style between the workers and the managers.
This style of organization is the best suited for businesses such as technology
businesses where there are extremely expert and creative workforces.
Thus to sum up our conversation we can say that dissimilar organization styles are
capable of controlling different circumstances and solving different problems.
Therefore, a manager should be a lively person, who has vision into many types of
managing styles.

Fill in the blanks:
1. ………………… is one of the dictatorial types of management.
2. In ………………… the manager is open to other's sentiments and
comfortable their influence into the choice making process.
3. ………………… managers take time and energy to make good relation.
33
2.6 LET US SUM UP Managing Internal Relations
in an Airline Firm
The employees are the most important part of the organization as they totally involved
in giving the organization the work they want. They are the assets of the organization.
They are the important factor that helps the organization to attain their goals. The
relation among the employees must be sound as the relation among them either shoots
the working ability of the organization or reduce it and make the organization to suffer
a loss either in the form monetary form or in the form of loss of proficient worker.
Once the relations among the employees are good and sound they will able to
concentrate on the work more and help to attain the organizational work more
effectively. Good work relations are essential for any occupation to flourish and do
well in today’s economy. If workers are not satisfied with their current nature of work
duties or teams, your clienteles and total organizational output will certainly be
obstructed by the tension. To keep worker confidence and performance moving to
optimal achievement, you should learn and exercise measures that can build and
maintain healthy relationships at work.

Study the relation between the faculties of your college and discuss it with your
friends.
2.8 KEYWORDS
Laissez-faire: An economic doctrine that opposes governmental regulation of or
interference in commerce beyond the minimum necessary for a free-enterprise system
to operate according to its own economic laws.
Peers: A person who has equal standing with another or others, as in rank, class, or
age: children who are easily influenced by their peer.
Subordinate: It refers to the employees working at the lower rank.
2.9 QUESTIONS FOR DISCUSSION

1. Explain the relationship between the supervisor and peer.
2. How to have a healthy environment at work? Comment.
3. Explain various managing styles of an organisation.

CYP 1
1. False 2. True
3. False 4. False
CYP 2
1. Paternalistic 2. Democratic
3. Effective

Wells A - Airport Planning and Management, 4th Edition- McGraw Hill London 2000
Doganis. R- The Airport Business- Routledge, London 1992
Alexander T. well, Seth Young- Principles of Airport Management - McGraw Hill 2003
34
Resource and
LESSON
3
MANAGING RELATIONS WITH PASSENGERS,
REGULATORY AUTHORITIES AND CIVIC
BODIES
CONTENTS
3.1 Introduction
3.2 Working of Airline Crew
3.3 Airline Passenger Service Commitment
3.4 Dealing with Passenger in Aviation
3.5 Managing Disruptive Passenger in Aviation
3.5.1 Sky Police
3.6 National Aviation Authority
3.7 Let us Sum up
3.9 Keywords

z Discuss the working of airline crew
z Describe airline passenger service commitment
z Know about managing disruptive passengers in aviation
z Explain National Aviation Authority
3.1 INTRODUCTION
In this lesson you will study about the working of airline crew, passenger airline
service commitments and dealing with passengers in aviation. Further in this lesson
you will learn dealing with disruptive passengers in aviation and you will learn about
the national aviation authority of India.
3.2 WORKING OF AIRLINE CREW

For every fifty passengers there ought to be one flight attendant, in a flight. These
attendants have various duties in their work, that starts as soon as the 1st passenger
boards the flight and last up to the entire flight. Prior to boarding the flight, the whole
crew meets, the captain reviews the schedule of the flight and any concerns related to 35
Managing Relations with
safety, and the lead attendant allocates each attendant to a specific section of the Passengers, Regulatory
plane. Before the plane takes off, the attendants must: Authorities and Civic Bodies
1. Greet passengers and direct them to their seats

2. Help passengers put their carry-on luggage
3. Ensure passengers near the emergency exits are prepared to help out in an
emergency
4. Inform regarding the safety procedures or show a safety video
5. Check every seat to confirm that all passengers are buckled-in and that their seats
are in the right position
6. Lock the doors and arm them so that the emergency slides will inflate if they are
opened
Flight attendants strap themselves into their jump seats, once they have worked
through this checklist. Once the plane takes off, food and drinks are prepared by the
attendant, they load the refreshment and meal carts, and serve the passengers.
In addition, attendants must ensure that all passengers abide by to the safety
guidelines, and they have to deal with any emergency situations that come up. If there
is a problem with the plane, the crew need to keep the passengers calm and help them
exit the aircraft if required. Attendants must also be ready to deal with terrorists,
annoyed passengers and several medical emergencies. In case of circumstances where
most people would be paralyzed with panic, flight attendants must keep their wits
about them and work through the emergency.
In order to fulfil such duties and responsibilities, it is essential for flight attendants to
possess certain abilities and personality traits. Airlines look for people who are
friendly in nature, able to remember a lot of information and can keep themselves cool
and calm under pressure. To get a position with an airline, potential flight attendants
must interview for the job, pass a medical exam, and work their way through a
rigorous schedule of instruction and performance reviews. In the course of the training
period, which can last between 3 to 9 weeks, a prospective attendant lives with other
candidates at a hotel or student house facility, where they attend classes on everything
from food service to dealing with armed hijackers. At this point in time, the candidates
may get a weekly allowance for expenses, but they are not actually considered airline
employees. They are not hired officially till they complete the full training course and
clear all tests.
There are a number of prospective applicants who look for the position of flight
attendant as compared to the number of vacancies, therefore only few selected
candidates are able to make through the complete process and get hired by the airline.
The position is competitive primarily for the reason of the unique benefits it offers. In
a number of airlines, flight attendants can fly domestically and internationally at
minimal cost (as little as $5 for a domestic trip) as long as the plane has available
seats. People are also attracted to flight-attendant work because it has not a five-day,
"9-to-5" schedule.
As with pilots, a flight attendant's work schedule is determined by seniority. Newer
flight attendants have to fly reserve, hardly knowing where they will be headed the
next day. They are at the mercy of the crew-schedulers – the airline employees who
figure out who needs to be where on a day-to-day basis. After a year, or in some cases
many years, attendants may hold their own line, maintaining a regular, set schedule.
The world of flight attendants and pilots has changed significantly since the beginning
of commercial aviation.
36
Resource and 3.3 AIRLINE PASSENGER SERVICE COMMITMENT
Before we understand how different types of passengers are handles in an aviation
sector first let us concentrate on the airline passenger service commitment which is
followed by some airlines. A brief understanding of such commitments will help us
know what is expected out of airline staff while dealing with its passengers.
There are number of airlines that have a mutual set of non-legally binding services
that will be supplied to people who travel with them.
1. A lowest fare will be offered to passengers which is available through each of
their direct outlets: Each airline will:
Offer the least applicable fare that passengers are eligible for through its
telephone reservation systems, its web site and its ticket offices for the date,
flight and class of service requested.
Inform passengers regarding the different fares that are available by way of
different outlets.
Bring into notice of the passengers regarding the terms and conditions that
relate to the fare chosen and any taxes, fees or charges that are applicable.
2. Honouring the agreed fare after payment: Once the passenger has paid for a
ticket, no increase in fare will be applied for that particular date, flight and class of
service booked. Though, any change in taxes, fees and charges will be subject to
extra payment or refund.
3. Notifying passengers of known delays, cancellations and diversions: Each airline
has decided to give passengers at the airport and on board affected aircraft the best
available information regarding known delays, cancellations and diversions
immediately as possible.
4. Helping passengers facing delays: Each airline has agreed that it will furnish
suitable assistance, for example, accommodation, meals, and so forth, to
passengers facing delays of over two hours, in case that the local conditions
permit the delivery of such assistance. The assistance given to delayed passengers
on an inclusive tour package flight will be in accordance with the published policy
of the tour organiser. Assistance may not be provided in circumstances including
long strikes in important services, political unrest or other exceptional situations
beyond the airline's control. Assistance may also not be rendered if it would
further delay departure.
The assistance furnished above may not be extended on:
Routes operated under public service obligations in harmony with the
authority defining the obligation, or
Where weather leads to disruption on routes where the regularity of flights is
significantly affected by weather conditions, or
On routes of less than three hundred kilometre helping remote airports
operated by aircraft with less than eighty seats.
Each airline has decided to frame clear and short statements of its policy on
serving passengers facing delays, which will be made available to passengers.
This statement will take account of lists of routes on which any exceptions to the
airline's policy apply.
5. Delivering baggage immediately as possible: Each airline has decided to make
every reasonable effort to transport all checked baggage to the Arrivals Hall in the
airport in question as quickly as possible. In cases of mishandled checked 37
baggage, each airline will make every reasonable effort to deliver the baggage to Passengers, Regulatory
the passenger within twenty-four hours of its arrival at the final destination free of Authorities and Civic Bodies
charge. The airline will also offer immediate help that is adequate to meet the
reasonable short-term requirements of the passenger.
6. Permitting telephone reservations to be held or cancelled without commitment
or penalty within twenty-four hours: Subject to applicable ticketing deadlines,
each airline will allow passengers to either:
Hold a telephone reservation made directly with the airline devoid of payment
for a minimum of twenty-four hours or
Where the airline needs immediate payment at the time of booking, to cancel
a reservation devoid of penalty for up to twenty-four hours.
7. Providing prompt refunds: Where a passengers claims and is entitled to a refund
on a ticket purchased directly from the airline, each airline will issue repayments
within seven business days for credit card purchases and twenty business days for
cheque or cash purchases. Any taxes, fees and charges collected with the ticket
fare and shown on the ticket will be refundable where the ticket is not used. This
consists of non-refundable tickets. The refunds on taxes, fees and charges will be
issued within the same ticket limits as those for tickets.
8. Providing assistance to passengers with reduced mobility and passengers with
disabilities: Each airline will publicize the services it extends for passengers with
disabilities and passengers with reduced mobility.
9. Meeting passengers' essential needs during long on-board delays: Each airline
will make every reasonable effort to provide food, water, toilets and admission to
medical treatment for passengers on board an aircraft that is delayed on the
ground for a long period of time devoid of admittance to the terminal. Each airline
will make every reasonable effort to make sure that passengers are not kept on
board the aircraft in the course of long delays.
10. Taking measures to speed up checking in: Each airline will set reasonable check-
in deadlines. In co-ordination with airports, each airline will take suitable
measures to avoid congestion in departure areas and speed up checking in.
11. Reducing the number of passengers who are denied boarding: In the event of a
flight being overbooked, each airline will first look for volunteers who are
prepared to forego their seats on the flight in question.
12. Providing information to passengers about airlines' commercial and operational
conditions: Each airline will provide its passengers with the following
information:
Any change of aircraft, terminal or airport
Any conditions attaching to the flight fare
Assistance programmes for lost, damaged or delayed baggage
Cabin baggage allowance
Charges for excess baggage
Details of the Airline Passenger Service Commitment and the airline's own
service plan
Details of the airline's frequent flyer programme if one exists
Facilities for passengers with disabilities and any charge for using them
38 Free baggage allowance and liability limits
Resource and
Logistics Management at Airports Services normally offered on board
The aircraft type scheduled to be operated on the route and the seat pitch (the
distance between a row of seats)
The airline's Conditions of Carriage
The airport/terminal of departure and arrival
The confirmation of flight times. If, after a passenger purchases a ticket, the
airline makes a significant change to the scheduled flight time that is
unacceptable to the passenger and the airline is unable to book the passenger
on an alternate flight that is acceptable to the passenger, the passenger will be
entitled to a refund.
The name of the operating carrier and the flight number. In the event of a
substitution of the operating carrier that has not previously been disclosed and
that is unacceptable to a ticket holder, the person concerned will have the right
to a refund or to be carried on the airline's next flight in the same class.
The number of en-route stops
The planned scheduled time of departure and the arrival of flights
Whether smoking is permitted on the flight
Whether specific seats can be allocated or pre-booked
13. Furnishing information on the operating carrier: In the case of flights that are
operated under a code share, franchise or long-term planned lease agreements,
each airline will:
Inform the passengers about the name of the airline that is operating the flight.
In case of reservation made from any distribution channel, passengers will be
informed upon reservation under the direct control of the airline, for example,
the airline's own offices, telephone reservation system, and so on, or at the
airport upon check-in. Where a reservation is made through a distribution
channel that is not under the direct control of the airline, i.e., travel agencies
and independent web sites, the airline will remind the travel agents and web
site operators to inform passengers at the time of reservation.
Make it clear through suitable language that the passenger's contract is with
the marketing airline, namely, the airline whose designator number appears on
the flight ticket/coupon or routing slip next to the flight number.
Provide information to the passengers who are travelling on code share
services that the level of service may be different and that the Airline
Passenger Service Commitment may not apply.
14. Being reactive to passengers' complaints: Every airline will, in case of normal
situations, render an essential response to written complaints from passengers
within twenty-eight days from the date of receiving the complaint. If this time
period does not allow for the complaint to be properly investigated, the airline will
provide a temporary response to the passenger furnishing the reason for the delay.
Each airline will designate a suitable point of passenger contact for all complaints.
The address and/or phone number and departmental name of this customer service
function will be furnished in timetables, on web sites and on any other public
information source and will also be accessible in any travel agent accredited by
the airline.
39
3.4 DEALING WITH PASSENGER IN AVIATION Managing Relations with
Passengers, Regulatory
1. Do be polite: At times rudeness crumbles in the face of courtesy. Even when it Authorities and Civic Bodies
does not, anger may feel good but hardly achieves much and can quickly get out
of hand.
Example: In recent times, a female passenger on JetBlue became upset when a
coach flyer was moved into her exclusive section because of a broken seatback
screen. She was angry for the reason that she paid a premium for her seat and the
interloper did not – but the condition worsened to the point that she took it out on
a flight attendant allegedly with a head-butt. Consequently, the pilot made an
emergency landing and the angry passenger’s was removed from the plane.
2. Do not refuse to negotiate: In case you have a problem, speak up. If you are stuck
in the middle seat and the passengers on either side of you have seized both of
your armrests, they may not realise it – and they won’t unless you let them know
politely. Communicate and negotiate – trade off armrests, maybe. Use a sensible
approach and if everybody involved is a grown-up, your problem is solvable.
3. Do not try the gadget approach: One of FareCompare’s most popular blog posts
over the years was about a neat little gizmo called the Knee Defender which when
used in the prescribed manner, provides the seat in front of a passenger immobile
– in other words, non-recline-able. Though, flight attendants who spot these
gadgets have been known to confiscate them so you’ve been warned.
4. Do stay clear-headed: Drinking too much alcohol on a plane has led to plenty of
disruptive passenger incidents together with flyers who mistook passages for
restrooms (gate areas, too) and a flyer who attempted to bite cabin crew members.
Do not be tempted to work off your own frustrations with such passengers by
overindulging in alcohol; it may lead to an early landing and even a little jail time.
5. Do know when to contact a flight attendant: If it becomes impossible to
communication with a fellow passenger, if the passenger is drunk or intimidating
or makes you uncomfortable in any way – up to and together with a passenger
who smells bad – this is the time to press the call button for a flight attendant. Do
not hesitate! This is one of their jobs, and they are trained to handle such
situations.
6. Do know when to take matters into your own hands: Passengers have been
taking down bad guys ever since the dark days after 9/11. They helped capture the
would-be Underwear Bomber, and helped duct tape a rampaging passenger to his
seat. Sometimes, crew members can use a hand.
7. Don’t sweat the small stuff: If someone is wearing an outrageous T-shirt or
maybe pants that are way too low, you can always avert your eyes – or just hope
you’re flying Southwest where they sometimes have a low tolerance for perceived
dress code violations.
8. Do have a sense of humour: After reading all this, it should be clear there will be
times when you will need one.

1. The world of flight attendants and pilots has changed significantly since
the beginning of commercial aviation.
2. Attendants must ensure that all passengers abide by to the safety
guidelines, and they have to deal with any emergency situations that come
up.
40
Resource and 3.5 MANAGING DISRUPTIVE PASSENGER IN AVIATION
Air Rage or Disruptive Passenger Behaviour can be defined as abnormal, anomalous,
or unmannerly behaviour on the part of passengers either at airports or onboard
commercial flights. Disruptive and violent passengers make an enormous safety risk
to the aircraft and its passengers. They can also prove to be very expensive to airlines.
In some circumstances, captains have been forced to divert a flight to discharge the
violent passenger. According to the British Airways the average cost of an
unscheduled landing is 40,000 pounds sterling.
Disruptive Passenger Behaviour can have various causes extending from the stress of
travel and the prohibition of smoking to the side effects of prescription drugs.
However, many of the incidents that are seen reported have one thing in common, i.e.
alcohol. Most airline passengers are either going on or coming from a holiday; or are
travelling on business. The holiday makers are often in the party mood, in good spirits,
and want to continue partying on board. The business man/woman is often stressed
and tired, and considers themselves in need of a stiff drink.
The situations leading to disruptive behaviour of the passengers are as follows:
z Overly Happy Holiday Maker: Even on early morning flights many holiday
makers have started drinking well before they get on an aircraft. They will
continue to drink once on board and as with any situation where there are drunk
people minor incidents such as a perceived slight, a long queue for the toilets or
being refused any further alcohol by a flight attendant can lead to abusive and
even violent behaviour.
z Don’t You Know Who I Am: These cases often hit the headlines but this not only
applies to celebrities but also to people who are used to other people doing what
they tell them to, for example politicians and senior businesspeople and. When
such a person is refused service or not treated with the respect they consider they
deserve then can, particularly if drunk, get physically or verbally abusive.
z Let Me Out of Here: Surprising as it may seem many Air Rage situations involve
someone either opening or attempting to open an external aircraft door. Reasons
for this vary, most occurring during taxiing when a passenger either decides they
need to exit the plane early on landing or decide they no longer wish to fly on
departure. Though, infrequently because of a disturbed mental state somebody
will try to open a door during flight, reasons given take account of needing some
fresh air and wanting a cigarette but on very rare occasions these are suicide
attempts.
z Medication: An adverse reaction to prescription medication or otherwise when
someone has failed to take their prescription medication can lead to bewilderment
and abnormal behaviour. These can be principally problematic circumstances for
cabin crew to handle as other passenger may find the behaviour troubling even if
there is no actual threat.
z Smoking: The general ban on smoking on flights can lead to bad temper by
smokers having an enforced self-discipline and in extreme situations problems
when someone is caught having a cigarette in the aircraft s toilets.
The vast majority of people can deal with the uncomfortable aspects of flying, but
when under the influence of alcohol, medication some people turn out to be
volatile and a minority, come to be violent.
Incidents involving disruptive passengers are a continuing apprehension for
airlines. They are happening in all parts of the world and in all classes of travel.
And the outcome from each incident cuts across many aviation sectors, together 41
with safety, security, legal, and flight operations. Passengers, Regulatory
Authorities and Civic Bodies
A disruptive passenger is defined as “a passenger who fails to respect the rules of
conduct at an airport or on board an aircraft or [fails] to follow the instructions of
the airport staff or crew members and thereby disturbs the good order and
discipline at an airport or on board the aircraft.” [ICAO Annex 17 to the
Convention on International Civil Aviation (the Chicago Convention) Security
Safeguarding International Civil Aviation Against Acts of Unlawful Interference
(March 2011)].
z There are number of motivational factors behind these events. A lack of
understanding about why an electronic device needs to be switched off can be a
trigger point, for example.
3.5.1 Sky Police

Dealing with an unruly passenger can be a tricky business. In December 2012, IATA
issued Guidance on Unruly Passenger Prevention and Management. The guidance
material contains a Passenger Notification Warning Card that can be handed to a
disruptive passenger, similar to a yellow card in soccer. This card clearly outlines the
powers of the pilot in command and warns of the consequences of continued
misbehaviour.
There are also specifications related to company policy, procedures, and training in
the IATA Operational Safety Audit (IOSA) and through IATA’s Recommended
Practice 1798a. Additionally, IATA is calling for civil aviation authorities to deter and
prevent unruly behaviour by promoting passenger awareness of the unacceptability
and legal consequences of disruptive behaviour in aviation facilities and on board
aircraft.
“But really we need to shift the focus from managing these events to the prevention of
these incidents in the first place,” says Guenther Matschnigg, IATA’s Senior Vice
President, Safety and Flight Operations. “The crew is concerned with safety, security
and the comfort of their passengers on board the aircraft and shouldn’t have to be
placed in a position where crew members become a police force in the sky.”
z Taking responsibility: A number of steps are needed to move toward a preventive
solution. Prominently, it cannot be presumed that this is purely an airline problem.
All stakeholders need to be called for in curtailing the problem at the source. A
collective and united approach by the aviation industry might result in noteworthy
improvements to the problem of disruptive passengers. Airports, for instance, can
play a significant role in helping to evade such events. Passengers often start
drinking at an airport and this needs to be acknowledged by airports and their
concessionaires.
z Betting on the outcome: Providing greater clarity in the legal framework will go
some way to defining the consequence of disruptive passenger incidents.
Currently, it is a lottery. Depending on the legislative framework of the country
where the plane lands, for instance, it could be that a crew member has to
personally press charges. Airlines want to make sure a safe workplace but such a
situation may need the crew member to persist in the country for a period as it is
often a long process. He or she may not speak the language and this can be
personally distressing.
Crew members will already have had to deal with the incident, sometimes getting
physically injured and often getting threatened.
42 Even carriers can be put off by the deceitful and lengthy legal cases that follow
Resource and
Logistics Management at Airports from disruptive passenger incidents. Every so often, the carriers do not press
charges. Some might call the unruly passenger to take a course at the airline on
why their behaviour was so dangerous. Other unruly passengers just receive a
letter warning them of future behaviour, while in extreme cases the passenger
might even be banned from using that particular airline.
It is worth pointing out that regardless of the serious nature of some of these
incidents that potentially affect aircraft safety, there has never been a total
industry-wide ban on disruptive passenger. There are no standards for airlines
sharing information on such passengers and, often, the easiest thing to do is to let
the passenger continue his or her onward journey.
z Out of pocket: Getting any money back for the costs involved in dealing with the
incident is unlikely. If the passenger in question leaves the authority under which
any legal proceedings are occurring, it will often be difficult or impossible to
recover these losses.
“Disruptive passenger incidents can be very unruly both at the time of occurrence
and for many months afterwards.” “They can affect the travel plans of other
passengers and cost airlines hundreds of thousands of dollars. A right legal
structure is required to be framed that deals with these incidents and so
discourages similar disruptive behaviour in the future.”
3.6 NATIONAL AVIATION AUTHORITY

A national aviation authority (NAA) is a government statutory authority in each
country that oversees the approval and regulation of civil aviation.
Role: Due to the inherent dangers in the use of flight vehicles, NAA's typically
regulate the following critical aspects of aircraft airworthiness and their operation:
z Design of aircraft, engines, airborne equipment and ground-based equipment
affecting flight safety
z Conditions of manufacture and test of aircraft and equipment
z Maintenance of aircraft and equipment
z Operation of aircraft and equipment
z Licensing of pilots and maintenance engineers
z Licensing of airports and navigational aids
z Standards for air traffic control
Depending on the legal system of the parent country, the NAA will derive its power
from an act of Parliament (such as the Civil or Federal Aviation Act), and is then
empowered to make regulations within the bounds of the act. This allows technical
aspects of airworthiness to be dealt with by subject matter experts and not politicians.
The NAA may also be involved in the investigation of aircraft accidents, although in
many cases this is left to a separate body [such as the Australian Transport Safety
Bureau (ATSB) in Australia or the National Transportation Safety Board (NTSB) in
the USA], to allow independent review of regulatory oversight.
The NAA will regulate the control of air traffic but a separate agency will generally
carry out air traffic control functions.
History: The independent development of NAAs has resulted in differing regulations
in country to country. This has required aircraft manufacturers in the past to develop
differing models for specific NAA requirements (such as the BAe Jetstream 31), and 43
difficulty for airlines to travel into foreign jurisdictions. In an effort to resolve these Passengers, Regulatory
issues, the Convention on International Civil Aviation (Chicago Convention) was Authorities and Civic Bodies
signed in 1944. This then led to the establishment by the United Nations of the
International Civil Aviation Organization (ICAO) in 1947 which now oversees
member states and works to implement regulatory changes to ensure best practice
regulations are adopted.
Major national aviation authorities
1. Agência Nacional de Aviação Civil (ANAC, Brazil)
2. Civil Aviation Safety Authority (CASA, Australia)
3. Civil Aviation Administration of China (CAAC, People's Republic of China)
4. Civil Aviation Authority (Greece) (ΥΠΑ, Greece)
5. Civil Aviation Department (CAD, Hong Kong)
6. Civil Aviation Authority of Pakistan (CAA, Pakistan)
7. Civil Aviation Authority (CAA, UK)
8. Civil Aviation Authority (CAA, NZ)
9. Civil Aviation Authority of Singapore (CAAS, Singapore)
10. Direccion General de Aeronautica Civil (DGAC, Mexico)
11. Directorate General of Civil Aviation (DGCA, India)
12. Directorate General of Civil Aviation of Turkey (SHGM, Turkey)
13. Direction Générale de l'Aviation Civile (DGAC, France)
14. Ente Nazionale per l'Aviazione Civile (ENAC, Italy)
15. European Aviation Safety Agency (EASA, is not actually an NAA but plays part
of the role within its member states of the EU)
16. Federal Aviation Administration (FAA, USA)
17. Iran Civil Aviation Organization (CAO, Islamic Republic of Iran)
18. Instituto Nacional da Aviação Civil (INAVIC, Angola)
19. Instituto Nacional de Aviação Civil (INAC, Portugal)
20. National Transportation Safety Committee (NTSC, Indonesia)
21. Luftfahrt-Bundesamt (LBA, Germany)
22. Transport Canada (TC, Canada)

Fill in the blanks:
1. A ………………… is a government statutory authority in each country
that oversees the approval and regulation of civil aviation.
2. ………………… Behaviour can be defined as abnormal, anomalous, or
unmannerly behaviour on the part of passengers either at airports or
onboard commercial flights.
44
Resource and 3.7 LET US SUM UP
For every fifty passengers there ought to be one flight attendant, in a flight. Attendants
must ensure that all passengers abide by to the safety guidelines, and they have to deal
with any emergency situations that come up. There are number of airlines that have a
mutual set of non-legally binding services that will be supplied to people who travel
with them.
Air Rage or Disruptive Passenger Behaviour can be defined as abnormal, anomalous,
or unmannerly behaviour on the part of passengers either at airports or onboard
commercial flights. Disruptive Passenger Behaviour can have various causes
extending from the stress of travel and the prohibition of smoking to the side effects of
prescription drugs. Dealing with an unruly passenger can be a tricky business.
A number of steps are needed to move toward a preventive solution. A collective and
united approach by the aviation industry might result in noteworthy improvements to
the problem of disruptive passengers.
A national aviation authority (NAA) is a government statutory authority in each
country that oversees the approval and regulation of civil aviation.

Prepare a presentation on the ways of handling disruptive passengers in aviation.
3.9 KEYWORDS
Disruptive Passenger: Disruptive passenger is defined as “a passenger who fails to
respect the rules of conduct at an airport or on board an aircraft or to follow the
instructions of the airport staff or crew members and thereby disturbs the good order
and discipline at an airport or on board the aircraft.”
International Air Transport Association: It was founded in Havana, Cuba, in April
1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable,
secure and economical air services – for the benefit of the world’s consumers.
National Aviation Authority (NAA): National aviation authority is a government
statutory authority in each country that oversees the approval and regulation of civil
aviation.

1. Explain the working of airline crew.
2. What are the guidelines for the attendants before the plane takes off?
3. What are the airline passenger service commitments?
4. Discuss few steps to deal with passengers in aviation.
5. Describe ways of managing disruptive passengers in aviation.
6. Explain the history and role of the National Aviation Authority.
45
Check Your Progress: Model Answers Passengers, Regulatory
Authorities and Civic Bodies
CYP 1
1. True 2. True
CYP 2
1. National Aviation Authority (NAA)
2. Air Rage or Disruptive Passenger

Senguttuvan. P S, (2006). Fundamentals of Air Transport Management, Excel Books, New
Delhi.
Jaroslav J. Hajek, Jim W. Hall and David K. Hein, (2011), Common Airport Pavement
Maintenance Practices, Transportation Research Board.
Manuel Ayres (Jr.), (2007), Safety Management Systems for Airports: Guidebook,
Transportation Research Board.
Antonín Kazda and Robert E. Caves, (2007), Airport Design and Operation, Emerald Group
Publishing.
Knippenberger, Ute, (2010), Airports in Cities and Regions: Research and Practise; 1st
International Colloquium on Airports and Spatial Development, Karlsruhe, KIT Scientific
Publishing.
UNIT II
49
LESSON Space Allocation
4
SPACE ALLOCATION
CONTENTS
4.1 Introduction
4.2 Space Allocation in Airports
4.2.1 Office Planning Standards
4.2.2 General Instructions to Request Space
4.2.3 Determining Space Needs
4.3 Gate Capacity Management
4.3.1 How the Gate Capacity Manager Works?
4.3.2 Other SAMANTA Modules
4.3.3 SAMANTA Gate Capacity Manager
4.3.4 Objective
4.4 Baggage Management Make Up and Break Up
4.5 Management of Resources in Aviation
4.6 Challenges in Aviation and Their Solutions
4.7 Let us Sum up
4.9 Keywords

z Discuss the space allocation at airport
z Describe the importance of baggage management system at airport
z Understand the Gate Management System
4.1 INTRODUCTION
There is a growing fashion that international airports are working in a competitive,
market-driven atmosphere and in self-financing method. Consequently, how to
successfully assign airport terminal-building space to make most of the revenues from
a host of marketable activities with the help of concession lease has developed into an
50 important matter. This study explores the associations between concession revenue,
Resource and
Logistics Management at Airports passenger service level and space allocation for public facilities and commercial
activities at international passenger terminals. Terminal space allocation prototypes
are then created to assign the ideal amount of space for a diversity of stores at diverse
locations and for public services. The models put on mathematical programming
techniques and aim at taking advantage of concession revenues subject to preserving
the service level of passenger dealing out. In addition to the study uses CKS
international airport as an example to determine the implementation of the models.
The results tell us that that the optimal amount of floor space for various types of
stores and public facilities changes under several passenger volumes and service
levels. And the amount of space allocated for public services not only has a straight
effect on the passenger service quality, but also indirectly marks the concession
revenue, and accepts an close relation to how the commercial space is allocated
4.2 SPACE ALLOCATION IN AIRPORTS

The space allocation problem (SAP) is the method in planning or in any kind of Space
Planning (SP) practice, of defining the situation and size of numerous elements,
affording to the input identified design program necessities, mainly topological and
geometric restrictions, and the arranging of openings according to their geometric
measurements, in a two or three dimensional space
These space allocation standards have been set up to safeguard those facilities which
encounter a steady level of space application and efficiency. Space Allocation
Standards intend to apply to all services being remodelled or recently constructed for
use by a State agency. Use of these criterions to the current facility where no major
changes are scheduled will be restricted to the extent that they are possible and
economically practical.
4.2.1 Office Planning Standards

1. The Office Planning Standards define how workplace space possessed or leased
by the State has to be scheduled when planning new structures or remodelling or
re-configuring present facilities.
The “Open Office” plan will be the typical design for State owned and leased
facilities. The Department’s aim is to lessen original costs, reduce the
expenditure linked with forthcoming remodelling and maximize flexibility.
Minimizing floor to ceiling walls also increases competent inner
environmental control and take advantage of experience to natural lighting
which gives to employee health and efficiency.
Enclosed offices and other enclosed spaces shall be placed in the core regions
of office space rather than on windowed exterior walls. The objective of the
Department is to arrange for natural light for the maximum number of staffs,
and for the better dissipation of heat and cold from exterior walls and
windows.
Enclosed workplaces for employees, who are under the Administrative level
on the Office Space Standards Table, need written explanation and support by
the managerial director, on the basis of the duties and accountabilities of the
position.
Built-in casework or cabinets will be minimized in favour of unconnected or
modular constituents, which are easily moved.
Agencies are fortified to practice Systems Furniture to decrease the quantity
of space desirable and increase elasticity and ergonomic adjustability.
2. When operating Systems Furniture drafts in workplace space possessed or leased 51
Space Allocation
by the State the following advantages will be recognized by the agency:
Diminish vital working and circulation area by 20% associated to predictable
workplaces.
Adjust to personnel turnover and altering technology and diminish
reconfiguration expenditure and disturbance by moving people, not furniture.
Create a supple network in which the essential spine transmits electrical
power and voice cabling, reducing particular runs to work postings.
Place connected at the right angle to window walls to tolerate for full
penetration of light into construction core areas.
Locate workspace collections absent from external window walls to let
improved dissipation of heat extremes off the glass.
Get the most out of the flexibility by using 2' and 4' wide panes not exceeding
5'-9" in height.
Design layout to reduce sight and sound distractions.
Provide each workstation with occupant-controlled task lighting.
Adhere to federal, State and city laws, regulations, codes and standards.
4.2.2 General Instructions to Request Space

Requirements for extra allocation, relinquishment or adjustment of space in State-
leased and owned amenities under the DOA control shall be prepared in writing to the
Division of General Amenities by the agency head or designee of the requesting
agency.
1. Requests should make available the information listed below:
Exception to Lease Boundary Request
Justification for private offices not allotted in the space standards
Justification form for above standard allocations
Purchase Requisition Form
Standard Office Lease Calculation Form
2. The Department of Administration will execute a three tier analysis of all items
that need rationalization.
Step one: The agency submits their documentation to the Division of General
Services Contracting Officer.
Step two: Once approved by the Contracting Officer, the documents are
reviewed by the State Leasing and Facilities Manager.
Step three: The final review is completed by the Chief Procurement Officer
4.2.3 Determining Space Needs

The space allocation criterions contain two categories of space:
1. Office Space: General office spaces are calculated using the Office Space Lease
Calculation classifications and titles. Circulation factors are added to the totals.
The square footages given are not entitlements, but are generally the maximums
allowed.
52 2. Support space and special area allowances: Support or special area needs are
Resource and
Logistics Management at Airports based upon client agency use. The requirements for these areas have the greatest
variation among agencies, since these requirements are primarily mission driven.
Support or special area needs will be developed by the agency and approved by
both the agency Director and Division of General Services.

1. Standards intend to apply to all services being remodelled or recently
constructed for use by a State agency.
2. Space allocation is very important in aviation industry.
3. Support or special area needs are based upon client agency use.
4. The Office Planning Standards define how workplace spaces possessed or
leased by the State have to be scheduled when planning new structures or
remodelling or re-configuring present facilities.
4.3 GATE CAPACITY MANAGEMENT

We can understand the Gate Capacity Management by the help of an example of
Amsterdam Airport.
Amsterdam Airport Schiphol is one of the leading European hubs. Currently,
Amsterdam Airport Schiphol provides services to approximately to 48 million
commuters per year. For the next years, the airport forecasts an extra rise in traffic. To
provide accommodations to this traffic, Amsterdam Airport Schiphol capacity
managers by means of SAMANTA to evaluate bottlenecks, to enhance accessible
capacity and to regulate the capacity requests in the future. To define the mandatory
gate capacity in the future, Schiphol uses SAMANTA Gate Capacity Manager
Simulating Airports
Airports have faced a rapid development over the last years with annual growths in
number of flights, passengers and traffic. Consequently, airports have now turned out
to be more and more congested and hence with time capacities may seems to be
inadequate.
As the consequence of this at terminal level the passenger are discontent due to delays
and waiting times at check in counters, passport control and security checks. Outside
the terminal, aircraft regularity and punctuality can be reduced, due to delays at
airports.
Accordingly, long term savings in airport extensions or progresses have to be made.
These in turn need a solid upkeep to regulate the essential capacities, such as the
number of check in counters and security controls, the organization capacity of a
baggage handling system, and the number of gates and remote aircraft stands.
Simultaneously, the everyday tasks have to be taken care of and anticipated for in the
best possible way to account for peaks and bottlenecks. The quantitative supports for
operational improvements are thus required. SAMANTA is developed with by
keeping in mind:
z A powerful airport simulation and capacity management tool, that can analyse
parts of an airport, but if necessary even entire airports.
SAMANTA stands for Simulation Application for Modelling and Analysis of a 53
Space Allocation
Total Airport. It offers a quantitative understanding in the current and future
capacity requirements, while preserving a high service level and reducing the cost.
SAMANTA not only estimate individual airport processes, but also the relation
between various processes. SAMANTA can be used to confirm and analyse long-
term progresses, and assess blocks, capacity allocation and personnel development
issues in day-to-day operation.
SAMANTA is designed and developed in close cooperation between ‘In control
Enterprise Dynamics and Amsterdam Airport Schiphol’.
z Operational decision making on the short term (0-1 years), for example a quick
analysis of the season forecasts, influence of work on the platforms and of
disturbances in the operation.
Amsterdam Airport Schiphol is benefitted by following ways after using this

SAMANTA
z To optimize internal procedures without exclusive investments in capacity
allowance.
z Probability to choose about just-in-time investments in capacity. Investments can
be done when it is actually required and this will keep the visit costs as low as
possible.
z Possibility of fundamental study by using the Gate Capacity Manager together
with at present existing baggage and passenger simulation models.
To realize reduction of visit costs, Amsterdam Airport Schiphol needs to
accommodate an increasing number of aircraft schedules while reducing the
investments in gate capacity. This involves a well-organized management of airport
procedures. Design and use of infrastructure is a significant issue. The Gate Capacity
Manager makes it possible to examine these capacity problems in a quick and easy
way.
4.3.1 How the Gate Capacity Manager Works?

The Gate Capacity Manager (GCM) makes use of a flight timetable for a definite day
and the accessible capacity of stands. Constructed on a user defined instruction set, the
GCM allocates the flights to the existing stands.
It estimates all rules in priority order (requirement, preference, avoidance) and
allocates flights to stands with the peak thinkable score. The subsequent gate
preparation can be characterized in a Gantt Chart or in Excel graphs.
The Gate Capacity Manager works with other SAMANTA modules like the Pax-Bax
Generator and the passenger simulator PaxSim. This makes is possible to evaluate the
influence of a certain gate planning on passenger and baggage flows.
4.3.2 Other SAMANTA Modules

SAMANTA is an airport simulation and capacity management application. The Gate
Capacity Manager is one of the SAMANTA modules. Amsterdam Airport Schiphol
uses other modules. These modules can be used individually, and also in combination
with each other.
This implies that the outcomes of the Gate Capacity Manager can be used directly. For
example the passenger flow models (PaxSim module) and the baggage system and
process models (BaxSim module).
54 SAMANTA would be established continuously. The following generation will be
Resource and
Logistics Management at Airports based on the current theory. Current modules will be improved, and new modules will
be developed. This will lead to a total airport simulation and analysis tool where all
the conceivable processes can be investigated.
SAMANTA comprises the record with airport data together with a flow generator for
passengers and baggage. The data can be examined used for capacity management
drives, for example to relate the available capacity with expected flows. The same data
can also be used in simulation models. The outcomes of simulations are actually more
detailed than static analyses and offer a better understanding of interrelating processes.
The results of simulations can be stored again in the airport data, and exported to
graphs for further analysis and presentation purposes.
4.3.3 SAMANTA Gate Capacity Manager

Is today’s infrastructure appropriate to simplify tomorrow’s flights? Is it possible to
use the current set-up in a more competent way? These and more questions can be
answered with SAMANTA’s Gate Capacity Manager. The tool is not an everyday
gate scheduling tool, but is used for analysis of current and future gate capacity.
Joyce Groot, capacity manager at Amsterdam Airport Schiphol, started in the summer
of 2006 with the Gate Capacity Manager. The functioning Gate Planning system is too
difficult to rapidly evaluate changes in preparation rules. The SAMANTA Gate
Capacity Manager is stress-free to use gate distribution tool that provides insight in the
required number of gates and remote locations, now and in the future.
4.3.4 Objective
The Gate Capacity Manager has been established in close collaboration with
Amsterdam Airport Schiphol. The Gate Capacity Manager supports Amsterdam
Airport Schiphol in choices about the capacity of gates and remote aircraft position
and the use in day-to-day operation. Decisions regarding allowances, adjustments and
other use of stands can be sustained at different levels:
z Strategic decision making on the long term (5–20 years), for example decisions
about new piers and platforms, allocation of carrier segments in certain areas.
z Tactical decision making on midterm (1–5 years), for example decisions about 55
Space Allocation
investments in extensions or adjustments within the current infrastructure. Or
analysing the impact of changes in allocation rules.
4.4 BAGGAGE MANAGEMENT MAKE UP AND BREAK UP

Baggage management is the main point to improve “Passenger Contentment”.
Actually, the major purpose of well-organized airport management is the decrease of
danger of damaged or lost baggage and the improvement of passenger security. To
cope with the risk of terrorism, for more than ten years ago, ICAO (International Civil
Aviation Organisation) issued the Annex 17 article and numerous guidelines to
promise that airlines were capable to safeguard that no belongings was carried without
its legal owner. Software Design has intended a comprehensive set of solutions to
upkeep both belongings settlement and lost baggage organization. Bag Guard, the new
keystone in the baggage settlement field, allows treatment agents to take real-time
choices about baggage stocking and receiving with precise credentials on their
position in the hold. The system obtains data from the barcode of the baggage loaded
both in ULD and in hold by a wireless network and wearable plans that harvest alert
messages in case of incongruence between baggage and flight, packing incongruence
with load sheet, etc. Also, the request permits presenting a list of not reconciled bags
to be unloaded and a dynamic provision to find them.
A baggage Management system (BMS) is a kind of conveyor system fitted in airports
that transports tested luggage from ticket counters to regions where the bags can be
loaded onto airplanes. A BMS also transports checked baggage coming from airplanes
to baggage claims or to a space where the bag can be loaded onto another airplane.
Even though the main purpose of a BMS is the shipping of bags, a usual BMS will
help other functions involved in ensuring that a bag catches the correct place in the
airport. The procedure of identifying a bag, and the evidence related to it, to make a
choice on wherever the bag should be directed within the system is known as
sortation.
In addition to sortation, a BMS may also perform the following functions:
z Bag counting
z Bag tracking
z Detection of bag jams
z Load balancing (to evenly distribute bag volume between conveyor sub-systems)
z Redirection of bags via pusher or diverter
z Volume regulation (to ensure that input points are controlled to avoid overloading
system)
Many baggage handling systems deals in software to better control the system. There
has also been a development with "mobile" BMS software where managers of the
system can check and correct difficulties from their mobile phone.
The baggage handling system at an airport plays an important role in keeping tourists
happy. It also can make the variance in an airport's capability to fascinate or keep a
major airline hub.
A baggage-handling system has three main jobs:
z Move bags from one gate to another during transfers
z Move bags from the arrival gate to the baggage-claim area
z Move bags from the check-in area to the departure gate
56 The measure of an effective baggage-handling system is simple:
Resource and
Logistics Management at Airports z Can the bags move from point to point as fast as the travellers can?
If the bags move slower, the traveller will get frustrated waiting for bags or bags
failing to make connecting flights on time. If the bags move too fast, you might have
bags making connecting flights that passengers miss.
Each airport has its own desires. Such as, the time assigned for a bag to succeed from
the check-in area to the gate is determined by how quick a passenger can make the
same trip. In some airports, it might only be a short distance to the passenger terminal,
while in others passengers might need to travel a long distance.
The Denver International Airport has a modern, automated baggage-handling system
designed by BAE Automated Systems, Inc. (In June, 2003 G & T Conveyor
Company, Inc. acquired BAE) United Airlines uses Terminal B at the Denver Airport
as a hub, so this terminal has the most automation. This system incorporates some
amazing technology to move bags from the check-in counter to the departure gate in
an almost completely automated way:
z Automatic scanners scan the labels on the luggage.
z Conveyors equipped with junctions and sorting machines automatically route the
bags to the gate.
z Destination-coded vehicles (DCVs), unmanned carts propelled by linear induction
motors mounted to the tracks, can load and unload bags without stopping.
4.5 MANAGEMENT OF RESOURCES IN AVIATION

A Resource Management System supports the scheduling of flights, check-in desks
and associated departure lounges, all stands from the pier-served stands to remote
stands, gates, baggage carousels, together with staff and mobile equipment. There are
five main modules commonly attached in a typical Resource Management System:
1. Check-in allocation module
Ticket Desks
Flight Check-in
Common Check-in
2. Gate allocation module
Gates (including their associated departure lounges)
Arrival Gates
Departure Gates
Passenger Hold Room
Control of Boarding
Control of Doors
Stands (pier-served stands and remote stands)
Remote Stands
Hangar Positions
3. Baggage allocation module 57
Space Allocation
Baggage Carousels
Explosive Detection Devices
4. Staff allocation module
5. Equipment allocation module
A Resource Management System has to include capability to allocate manually all
these resources but the airport can benefit of added functionality from these
applications as listed hereinafter.
Check-in Allocation
The Check-in Module allocates check-in desks to departing flights. It has to assign
Check-in positions based on defined rules. At check-in the demand curve can vary
greatly, depending on the sequence in which passengers arrive.
A typical Resource Management System’s Check-in Module:
z Optimizes the use of check-in allocations to lower the airport’s costs, and offers
best service to the airlines and their passengers;
z Captures the knowledge of airport operators into a set of rules which can reliably
and equitably allocate check-in desks on a daily basis;
z Uses schedule and real-time data via feeds from airlines sources, integrated
systems, or by manual entry.
Check-in Module Considers Operational Requirements and Characteristics such as:
z Mandatory desks for individual airlines;
z Landside common, dedicated and airside transfer desks;
z Desk preferences for particular flights;
z Passenger arrival profiles by class and time;
z Expansion strategies for airlines/handlers (such as how the desks available should
expand as passenger check-in peaks);
z Handler and carrier preferences for aisles and desks.
Benefits include:
z Dynamic allocation of check-in desks to meet changing requirements;
z Maximized usage of desks in greatest demand;
z Day-to-day consistency for improved operational efficiency; and
z Improved carrier and customer satisfaction resulting in increased business
opportunities and ultimately increased revenue.
Latest check-in solutions incorporate the latest PC capabilities to help airport staff to
perform both simple and difficult passenger check-in transactions. For example,
graphical windows-style presentations simplify the passenger check-in. User prompts,
colour-coded screens, drop-down menus and dialogue boxes allow agents with
minimal training to complete quickly passenger check-in.
Hold/Gate Allocation
A typical Resource Management System’s Gate Module optimizes the use of gates,
stands and parking positions to lower the airport’s costs and to provide best service to
58 the airlines and their passengers. The system captures the knowledge of airport
Resource and
Logistics Management at Airports operators into a set of rules which can reliably and equitably allocate gates on a daily
basis. Gate Module assigns gate positions based on defined rules administered by the
user. When demand exceeds supply, Resource Management System allocates a
defendable fair share to each airline, handling agent or other entity.
Gate module considers operational requirements and characteristics such as:
z Gate passenger capacity
z Lounge area passenger capacity
z Security processing facilities
z Carrier/airline preferences
z Proximity to airline premium customer lounges
z Multi-use gates such as Schengen
z Aircraft and stand compatibility
z Remote stands versus stands with air-bridges
z Pushback conflicts, and
z Timing of consecutive aircraft on stands
The benefits of using this application in the allocation of ground resources include:
z Optimal management and allocation of resources
z Delay potential capital expenditure for additional resources
Usage of Existing Resources:
z cater for peak periods with the dynamic allocation and optimization of resources;
z reduce aircraft turnaround by ensuring that sufficient and practical resources are
timely available to service flights; and
z increase passenger flow through the terminals with the logical allocation of check-
in desks and gates.
Hold allocation and the Gate allocation are similar to each other. They constitute the
intelligent agent and OR techniques. A frame of Hold/Gate Allocation is planned
based on the analysis of a real-time Aircraft Gate Assignment Problem. The intelligent
agent is developed to decide the candidate hold/gates for every aircraft. These gates
are chosen by the consideration of conditions like passenger and baggage transferring
space, operation rules along with the requirements from the air company. The
principles are applied in the form of production rules. This aims at reducing the scale
of the difficulty to make it easier to define a concluding optimum assignment. By this
method, accessible gates will be given to aircrafts by the consideration of the
parameters like the passenger walking distances, compatibility of the gates and
aircraft, baggage handling distances, and conflicts between adjacent gates as well as
aircraft passenger capacity. These are rules applied in the expert system.
Baggage Allocation
The Baggage Allocation Module provides airports with a mechanism to handle arrival
baggage carousel allocations. A typical baggage module considers operational
requirements and characteristics such as:
z Capacity and load of baggage carousels,
z Varying number of arriving passengers on flights,
z Airline preferences, 59
Space Allocation
z Domestic versus international arrivals, and
z Locations of stands and gates at multiple terminal buildings.
Benefits include:
z Quick and easy reassignment of baggage carousels to meet changing
requirements;
z Improved quality of service through minimized passenger waiting times; and
z Reduce passenger frustrations by making carousels available in time for arriving
flights. Baggage Module has to alert users of any conflicts that occur throughout
the scheduled day.
Staff Allocation
A typical Staff Allocation Module is designed for the aviation industry to meet the
challenges of roistering a large and diverse 24 × 7 workforce. The ability of staff
solutions to address changing circumstances within a business environment – quickly
and effortlessly – is enhanced by the sophisticated, yet simple to use rule-base. The
staff module considers operational requirements and characteristics such as:
z Automating the deployment of manpower while increasing staff utilization;
z Streamlining the assignment of daily tasks and the roistering process;
z Generating every task that must be completed during a roster period by using the
flight schedule of an airline or airport, human resources and non-flight related task
files;
z Allocating appropriate resources to manage all tasks and providing a clear
visualization of the day’s tasks, shifts and staff. Benefits include:
Increased staff utilization;
Substantial reduction in the staff-hours required to prepare and maintain
rosters;
Significant reduction in the time taken to evaluate and respond to operational
disruptions;
Reduction in idle time in staff rosters translating into a reduction of costs for
airport operators.
Equipment Allocation
A typical Equipment Allocation Module is specifically designed for the aviation
industry to meet the challenges of roistering a large and diverse range of equipment.
The Equipment Module considers operational requirements and characteristics such
as:
z Automating and increasing the utilization of equipment resources;
z Streamlining the assignment of equipment to ensure smooth management of the
operation;
z Allocating equipment for every task that must be completed during a roster period
using the flight schedule of an airline or airport, and related task files; and
z Allocating an appropriate equipment to manage all tasks and providing a clear
visualization of the day’s requirements.
60 Benefits Include:
Resource and
Logistics Management at Airports z Increased equipment utilization;
z Substantial reduction in the time taken to evaluate and respond to operational
disruptions; and
z Reduction in idle time in equipment rosters translating into decreased costs.
4.6 CHALLENGES IN AVIATION AND THEIR SOLUTIONS

Aviation industry is facing a lot of problems earlier. Increasing fuel costs, staff
shortages and a fragile economy and the most important problem is the allocation of
the space has all impacted flying, resulting in a number of airlines going smashed,
forced to up prices or weather the storm as customer demand for flights drops.
This year 2013 has proved to a very important as far as the airlines and airport is
concerned:
1. Improving Efficiency: Airlines are trying their level hard in order to avoid the
airline delays including crowdsourcing and computer algorithms – but
successively the security gauntlet, dealing with paperwork and procedures as well
as the joys of the border can not only irritate the customer, but bounds the amount
of existing time slots for planes to take off.
Airports are pretty congested and security is all-time high, so management is now
facing an tough struggle; keeping the business in profit, maintaining security,
coping with increased competition and of course, the ever-present risk of contrary
weather conditions.
2. Security: To keep the passengers safe both at the airport and while flying is the
first priority of airlines, especially after the events like September 11. On the other
hand, going beyond minute liquid bottles and taking your shoes off at security
checkpoints, the introduction of full-body scanners has started much argument.
Some airports will not allow you to fly if you do not go for scanning, however
others have removed the technology totally not only due to privacy concerns but
also because they slow down the security process to unacceptable levels. At some
point, an adequate balance between safety and practicality has to be achieved.
3. In-flight Connectivity: As modern technology makes instant connectivity and Wi-
Fi an expectation of the modern consumer, transport businesses are having to keep
up. The use of gadgets and Internet services are still in fledgling stages when it
comes to aviation. When money is scarce and belts are being tightened, it is pretty
important to give these services – as Emirates does, especially if you want to
attract the deeper pockets of lucrative business travellers.
4. Safety in the Air: While travelling by air safety is in fact the best it has been since
the 1960s, with only 23 documented fatal crashes in 2012 and the increase of tools
to predict climate conditions, there are still concerns when it comes to the higher
crash-rates of Latin America, Africa and emerging areas. In addition, U.S. pilots
are under inspection, as fight arena automation and gradually congested airports
may prove to become dangers.
5. New Fuels: Biofuels, renewable energy sources resulting from biological
material, can be used as in place of traditional fossil fuels. Though, the pure
quantity and expenditure in production due to the industry's young age means that
it is not essentially financially viable to introduction of commercial projects for
airline carriers. Not only this, commercial projects also have the possibility to
make worse food shortages in developing countries.
Though, certain airlines, comprising Cathay Pacific, have amalgamated the 61
Space Allocation
Sustainable Aviation Fuel Users Group to try and get these kinds of projects
moving as the rising cost of dwindling fossil fuels is fated to rise.
6. Going Green: It is not just biofuel growth and the effect on the situation that are
impacting the aviation industry, but airlines have had to cope with the introduction
of legislation which would tax them established on carbon releases.
The European Commission scheduled to control planes based on greenhouse gas
emissions if they landed in EU member states, although this was suddenly
suspended in November. When the International Air Transport Association
(IATA) committed itself to carbon-neutral growth by 2020, you know the issue's
pretty severe.
7. Innovative Plane Design: A main problem on airline management's mind: how do
you keep flying cost-efficiently and profitably, particularly when increasing
operating costs including fuel and taxes impact the balance sheet?
8. Finding Staff: According to reports, airlines are finding it ever more difficult to
find and train up pilots, sending the industry into fright. New federal regulations
coupled with a compulsory retirement age for pilots in the United States have
contributed to the shortage no doubt a severe headache for management in the
coming year as half of U.S. pilots are already over 50.

Fill in the blanks:
1. SAMANTA stands for ………………….
2. Baggage Management System is defined as the ………………….
3. Space allocation is very important in ………………… industry.
4. A typical Staff Allocation Module is designed for the …………………
industry to meet the challenges of roistering a large and diverse 24 × 7
workforce.
4.7 LET US SUM UP

Space allocation refers to the distribution of the available areas of airport among a
number of entities with different sizes so as to ensure the optimal space utilization and
the satisfaction of additional requirements and/or constraints. In this generic case, an
important condition exists i.e. the areas of space that can be used and the space
required by the entities are not subject to modification.
Then the quality of a solution or allocation is measured in terms of the following
aspects:
z The number of entities than have been allocated
z Satisfaction of any additional requirements
z Satisfaction or no violation of constraints
Space utilization, i.e. the amount of space that is wasted (space not used) and the
amount of space that is overused (entities with less space allocated than needed).
The ideal explanation in the space allocation problem is one where all the entities are
allocated, no space is wasted or overused and every additional requirements and
constraints have been satisfied. However, not always this ideal optimal solution is
achievable. In a more realistic scenario, the optimal solution would be one where all
62 objects are scheduled and the space utilisation is the best possible, i.e. the amount of
Resource and
Logistics Management at Airports space misused and overused has been reduced to the minimum and the additional
requirements and constraints have been all satisfied.
Some examples of constraints (specific restrictions that should or must be fulfilled)
are listed below, but different constraints may exist in different scenarios. Constraints
can be classified as hard or soft. Hard constraints are those that cannot be violated
while soft constraints are those that can be broken but penalized. To minimize the
penalties in a solution for an Office Space Allocation problem, no hard constraints
should be violated and as many as possible soft constraints should be satisfied. Like,
restricts the amount of space that can be not used in each area. The amount of space
that can be overused, i.e. the difference between the space available and the space
needed for the allocated entities.

Do the space allocation of your classroom or of the kitchen of your home.
4.9 KEYWORDS
Be Adjacent to: Refers to the situation in which some entities have to be allocated in
adjacent areas.
Be Away of: Specifies that some entities have to be allocated away of a certain entities
or areas.
Be Grouped with: Refers to the situation, in which some entities have to be grouped,
i.e. the entities will be in nearby areas.
Be Located in: Restricts the allocation of a particular entity to the indicated preferred
area.
Be Together with: Refers to the situation in which some entities have to be allocated
in the same location.
Disturbance: Restrict the amount of changes when reorganising an existing solution.
Not Overused: Specifies that certain areas cannot be overused.
Sharing: Restricts sharing a common area between two or more entities, i.e. refers to
entities that must not be allocated in the same office space.
Unallocated: Refers to those entities that are not allocated in the solution.

1. Define Baggage Management System.
2. How is Baggage Management System helpful in efficient working of the airport?
3. Explain various modules of resource management in aviation.
4. Explain SAMANTA.

CYP 1
1. True 2. True
3. True 4. True
Contd...
CYP 2 63
Space Allocation
1. Simulation Application for Modelling and Analysis of a Total Airport
2. Conveyor system fitted in airports that transports tested luggage from
ticket counters to regions where the bags can be loaded onto airplanes.
3. Aviation
4. Aviation

Wells A-Airport Planning and Management, 4th Edition-McGraw-Hill, London 2000
Doganis R- The Airport Business- Routledge, London- 1992
Alexander T.Well Seth Young- Principle of Airport Management-McGraw Hill 2003
Paul R.Murphy, Jr and Donald & F. Wood- Contemporary Logistics- Prentie Hall. 9th Edition
2008
64
Resource and
UNIT III
67
LESSON Airlines Staffing Issues and
Solution
5
AIRLINES STAFFING ISSUES AND SOLUTION
CONTENTS
5.1 Introduction
5.2 Air Operator Service Providers
5.2.1 Staff Departments
5.2.2 Information Services
5.2.3 Personnel
5.2.4 Medical
5.2.5 Legal
5.3 Corporate Communications
5.3.1 Flight Operations
5.3.2 Flight-serving Passengers
5.4 Staffing Issues – Security and Other Sovereign Function
5.4.1 The Total Solution for Aviation Staffing Needs
5.4.2 Aerospace and Aviation Staffing Expertise in Key Industry Sectors
5.4.3 Proven Track Record of Aviation Staffing Solutions
5.4.4 Creating a Path of Professionalism for the Aviation Staffing
5.5 Cost Analysis and Budgeting
5.5.1 Capital Costs
5.5.2 Direct Operating Costs
5.6 Let us Sum up
5.8 Keywords

z Understand the concept of aircraft service provider
z Discuss staffing issues
z Explain the cost and budgeting
68
Resource and 5.1 INTRODUCTION
Having considered network management over the last 2 years, we turn next to a
second topic central to managing capacity: fleet management. Traditionally, fleet
planning has focused on aircraft acquisition.
Many large airlines now take a broader view, with fleet management encompassing:
z Aircraft acquisition and financing;
z Tactical fleet management;
z Asset value maintenance; and
z Trading.
This lesson will follow that four – part approach, but will concentrate on aircraft
acquisition and financing.
5.2 AIR OPERATOR SERVICE PROVIDERS

Airlines have grown so rapidly in the past 20 years that it is difficult to say that any
organizational chart is typical or that the chart of one company at any particular time
is the one still in effect even a few months later. However, all airlines do have certain
organizational traits in common, such as the administrations, departments, divisions,
and so forth into which airline activities are divided. Understandably, the larger the
carrier, the greater the specialization of tasks and the greater the departmentalization.
5.2.1 Staff Departments

Staff departments include those areas that provide a service to the line departments.
They are primarily located at the carrier’s executive headquarters or at major regional
offices.
Figure 5.1: A Typical Major Air Carrier’s Staff Department Structure

Finance and Property 69
Airlines Staffing Issues and
The finance and property administration formulates policies for the financing of all Solution
activities in the airline and is charged with the receipt and safeguarding of the
company’s revenues and the accounting of all receipts and disbursements. In carrying
out these functions, it administrates the activities of (1) the treasurer’s departments;
(2) facilities and property, which involves the administration of all owned and leased
property and equipment; and (3) purchasing and stores, which is a multimillion-dollar
business by itself. Airlines purchase everything from uniforms, supplies, parts, and
equipment to food, fuel, and hundreds of other items on a daily basis. Other major
departments include auditing, accounting, and insurance.
5.2.2 Information Services

The information service is responsible for designing and maintaining the date
communications network within the airline. Included in this administration are
database administrations, who coordinate the data collection and storage needs of user
departments, and systems analysts, who are responsible for analysing how computer
data processing can be applied to specific user problems and for designing effective
data processing solutions. Programmers, who are responsible for developing programs
of instructions for computers, work very closely with the user administrations.
Figure 5.2: A Typical Major Air Carrier’s Information Services Administration
5.2.3 Personnel
The primary goal of the personnel administration is to maintain a mutually satisfactory
relationship between management and employees. It is responsible for providing fair
and adequate personnel policies. Major departments under personnel include
employee development, employee relations, and personnel field services, which
encompass the employment function.
5.2.4 Medical
The medical department provides health services to all employees through physical
exams and emergency treatment and establishes health criteria for hiring new
employees. In recent years, some major carriers have virtually eliminated their
medical staffs, choosing instead to have private physicians and clinics provide medical
examinations and other specialized services. Medical service at the major base or at
regional facilities is thus limited to emergency treatment.
5.2.5 Legal
Every airline has a legal department under a Vice-President or general counsel. This
administration is responsible for handling all legal matters, including claims against
the company loss of or damage to the property of others and of injuries to persons.
70 This administration also works closely with government agencies regarding regulatory
Resource and
Logistics Management at Airports matters.
Figure 5.3: A Typical Major Air Carrier’s Medical and Legal Administration
Figure 5.4: A Typical Major Air Carrier’s Corporate Communications Administration
5.3 CORPORATE COMMUNICATIONS

This is can be seen as the mouthpiece for the carrier. Most announcements regarding
company activities, whether it is an impending strike, weather caused flight
cancellation, or the latest traffic or financial statistics, are made by a representative of
this department. This department also has representatives, or lobbyists, in Washington,
D.C. and a number of state capitals who are important to the carrier from a legislative
standpoint. Legislation regarding increased fuel taxes would be of concern to such
individuals.
5.3.1 Flight Operations

The office of the Senior Vice-President of flight operations is responsible for
developing flight-operations policies, procedures, and techniques to promote the safe,
efficient, and progressive operation of aircraft. Flight operations must maintain the
airline operating certificate in compliance with FAA regulations. In addition, the
administration is responsible for developing schedule patterns and procedures for the
economic utilization Flight operations activities throughout the system.
Departmental Level
The Vice-President of air traffic and safety develops and recommends ways to
promote the safe, economic, and expeditious flow of air traffic from departure to
arrival. This executive develops programs for aircraft interior cabin safety and is
responsible for safe aircraft operations, navigation aids, and ground communications
(telephone). The Vice-President also maintains current information on all airports and
airways that may affect operating policies and procedures. The Vice-President of
flight procedures and training develops and recommends operating policies,
procedures, and techniques for the entire fleet. This executive makes
recommendations with regard to equipment, such as instruments, controls, power
plants, and radios, in addition to directing the flight-operations training department 71
and the flight standards department. Solution
Overnight Maintenance
At the end of the working day, workers conduct a 1 – to 1½ hour inspection to ensure
that the plane is operating to accord with the Original Equipment Manufacturers
(OEM’s) Minimum Equipment List (MEL). This also represents an opportunity to
remedy passenger and crew complaints and to implement marketing-driven
modifications (such as the installation or telephone), as well as to attend to aspects of
FAA Airworthiness Directives (ADs) and Manufacturers’ Service Bulletins. This is a
chance to do whatever work can be completed in the time allotted so as not to disrupt
the aircraft’s flight schedule.
A-check
Roughly every 125 flights hours (two to three weeks), an amplified pre-flight visual
inspection of the fuselage exterior, power plant, and certain readily accessible
subsystems, including avionics (aviation electronics) and accessories, is conducted to
ascertain the general condition of the aircraft.
B-check
Approximately every 750 flight hours, workers conduct an open inspection of panels
and cowlings, during which some preventive maintenance (exterior wash, engine oil
spectro-analysis, and so on) is performed, oil filters are removed and checked, part are
lubricated as required, and the airframe is carefully examined. The B-check
incorporates an A-check.
C-check
This fundamental airworthiness inspection, which is carried out approximately every
3,000 flight hours or every 15 months, incorporates both A-and B-checks. In addition,
components are repaired, flight controls are calibrated, and major internal mechanisms
are tested. Other tasks include heavy lubrication, attendance to service Bulletin
requirements, minor structural inspections, flight control rigging tests, engine
baroscopic inspections, compressor washes, aircraft appearance maintenance and
usually, some corrosion prevention. The C-check also includes a post check flight test.
D-check
This is the most intensive from of routine maintenance, typically occurring every six
to eight years or approximately every 20,000 flight hours. Cabin interior (including
seats, galleys, lavatories, cockpit, furnishings, headlines and sidewalls) are removed to
enable careful structural inspections. Flight controls are examined, and the fuel system
is probed for leaks and cracks. The aircraft essentially is stripped to its shell and
rebuilt with the intention of returning it to original (Zero-timed) condition as much as
possible. A and B-checks and overnight maintenance are example of “line”
maintenance work that can be managed at an airport (sometimes even on the ramp)
and usually performed overnight so as not to encroach on flight plans. C and D
checks, however, constitute “heavy” maintenance, demanding special facilities and
extensive downtime.
Advertising
Advertising is an extremely important marketing department, particularly in today’s
competitive environment. The advertising department, working closely with the
company’s advertising agency, provides expertise on promotional messages, copy,
72 medic, and timing. This department may influence, but generally does not determine,
Resource and
Logistics Management at Airports the amount of company funds spent on advertising and promotion.
Marketing Services
Marketing services is another extremely important marketing department, as it literally
designs the carrier’s products and determines the firm’s market opportunities.
Included are such major divisions as market research and forecasting, pricing and
schedule planning.
Market research and forecasting is charged with the responsibility of systematically
gathering, recording and analysing data relating to the marketing of air transportation.
Operationally, this means forecasting market opportunities and finding out about the
market for air transportation – the numbers and types of consumers, the product itself,
channels of distribution, and consumer motivation and behaviour. With the so-called
consumer-oriented marketing concept in use in recent years, whose objective is to
furnish consumer satisfaction, market research and forecasting has been recognized by
most major carriers as co-equal in status with sales, advertising, new product and
services development, pricing, and scheduling.
Services Planning
The services planning department is responsible for the development of the in-flight
and ground services for the various markets identified by market research and
forecasting. These include everything from reservations and ticketing services to in-
flight entertainment and dining services. The latter includes such details as the type of
meal service aboard various flights, the number of courses, and the various menus.
Sales Planning
Sales planning are concerned with the means by which a carrier’s products and
services are delivered to consumers. Given the markets developed by market research
and forecasting, the prices and schedules, and the services planned for the various
markets, it is up to sales planning to develop an approach to reach these target groups.
This department works closely with regional sales and services personnel in
implementing their plans. Traditional organizational planning holds that when the
number of reporting functions becomes too numerous, a useful solution is to regroup
them into several clusters and appoint a manager to each cluster. Accordingly, most of
the major carriers have separated the marketing functions into operations and
planning. In a sense, the three aforementioned departments–marketing services,
services planning, and sales planning – have become staff departments to sales and
services.
Sales and Services

Sales and services are concerned with the implementation of the plans formulated by
the planning staff. Airline sales management is as old as the carriers themselves, but
there have been significant changes since World War II. The social sciences, and
especially psychology, have given sales personnel new insights into old problems.
Newer organizational methods have increased sales efficiency. To implement the
selling function, personnel in this department must have complete knowledge of who
consumers are, what makes them purchase the product, and how they can be reached.
The planning departments have helped in meeting these selling challenges.
Food Service
Food service is a major business for any large carrier. Flight kitchens, located
throughout the system at major hub airports, serve thousands of meal a day, not only
to the carrier’s flights but also to those carriers that contract with the major carrier. 73
Company cafeteria services at locations throughout the system, including the carrier’s Solution
major overhaul base, require additional thousands of meals served to employees
working on shifts around the clock.
5.3.2 Flight-serving Passengers

This is the end product of marketing and serving customers’ needs. The typical airline
customer spends more time with the flight attendants than with any other employee
group. Thus, the flight attendants have much to do with how an airline’s customers
feel about the carrier and whether they will fly that airline again in the future. In the
eyes of the flying public, the flight attendants are the airline, so it is up to the flight
attendants to turn every customer into a repeat customer. Although their primary
function is ensuring in flight safety, flight attendants have become extension of the
marketing effort. Flight attendants receive training in aircraft familiarization, customer
service, galley equipment, and food and beverage presentation. Through classroom
lectures, hands-on demonstrations, and simulations, they become professionals ready
to deal with any emergency situation and dedicated to making every passenger’s trip
comfortable and safe. Flight attendants are required to sign in at the airport one hour
prior to their flights’ scheduled departure time. Flight attendant schedules – like those
of the pilots – are based on each flight attendant’s preferences, weighted by seniority.

Fill in the blanks:
1. …………………. department is responsible for the development of the
in-flight and ground services for various market identified by market
research and forecasting.
2. ………………… must maintain the airline operating certificate in
compliance with FAA regulation.
5.4 STAFFING ISSUES – SECURITY AND OTHER

SOVEREIGN FUNCTION
When we talk about aerospace and aviation employment solutions, Reliance Aerotech
Services is the leading business specialist. Reliance appreciates the issues customers
face in aviation staffing and works as a bond between repairs and manufacturing
managers and human resource professionals to make staffing clarifications that are
exactly intended to meet the sole needs of the aviation industry.
These answers need more than just the finest people. Only a business that concentrates
in flying staffing solutions can make sure controlling compliance, alleviate supply
chain management risk and upsurge workplace presentation through proven quality
assurance programs. Reliance Aerotech Services is that company.
5.4.1 The Total Solution for Aviation Staffing Needs

With more than a period of aviation specific experience, Reliance Aerotech Services
offers clienteles with a total solution to aviation staffing bringing the flying industry’s
best people by assisting guide them through a five-step hiring process:
1. We help customers define their staffing requirements through our Aviation
Staffing Firm Audit so governments fully realize insurance accountability, FAA
compliance, excellence assurance and screening desires when using contract
upkeep professionals.
74 2. We source candidates from our Employment Center database of more than 5,000
Resource and
Logistics Management at Airports aerospace professionals and extensive industry networks.
3. We screen candidates using our exclusive selection methodology developed over
wide flying maintenance industry surveys and key metric pursuing over the past
decade.
4. We mobilize each candidate through our complete start-up program so they hit-
the-ground-running in your facility.
5. We monitor performance through our key performance pointer matrix and
customer feedback surveys to ensure our treaty professionals deliver on your
mission.
Whether it’s temporary staffing, contract-to-direct or direct hire placements, Reliance
Aerotech Services has the recruiters and program managers to confirm your aviation
recruitment program is an achievement, from start to finish.
5.4.2 Aerospace and Aviation Staffing Expertise in Key Industry Sectors

Reliance Aerotech Services brings specific know-how in key aerospace and aviation
areas provided that our customers with the best people, programs and sector specific
solutions other companies can't match. Through more than a period of aviation
industry practice we've come to comprehend these sectors from the inside out:
z Aerospace Manufacturing: We began as a dealer of highly practical personnel for
the aerospace manufacturing sector and bring over a period of staffing know-how
to the sole supplies of the manufacturing area.
z Business Aviation: We know the model supplies and short time distances of
commercial flying and fully influence our Employment Center to deliver highly
specialized personnel in the shortest cycle time.
z Commercial MRO: The team of Reliance Group of Companies gets a depth
reserve of sympathetic to the recruitment challenges that MRO services face. We
specify in the hard to place maintenance punishments including avionics, sheet
metal and type/model A&P mechanics.
z Defense: Reliance management transports wide military knowledge to our
aviation staffing answers for the defense segment. We recognize military aircraft
and security supplies so we can find mission ready personnel.
z Government: from NASA to NOAA and agencies in between, Reliance has
experience as long as aviation staffing teams to meet the requirements of
challenging government aviation programs.
z Rotor Wing: from staffing helicopter conservation and alteration facilities to
contract field and technical teams, Reliance is the leading supplier of contract
conservation personnel for the Rotor Wing sector.
5.4.3 Proven Track Record of Aviation Staffing Solutions

Reliance Aerotech Services has extensive experience providing high value aviation
contract maintenance, manufacturing, engineering and logistics personnel in 36 states
and 17 countries worldwide. Using our leading online Aviation Employment Center
and proprietary employee screening process, Reliance effectively sources, recruits,
and mobilizes dependable aviation professionals with a comprehensive range of
expertise including:
z A&P Mechanics – Aircraft Type/Model Specific
z Aircraft Composite Fabricators
z Aircraft Painters (CARC included) 75
z Aircraft Sheet Metal Fabricators Solution
z Aircraft Structure Modification Specialists

z Aircraft Structure Repair Specialists
z Aircraft Weapons Loaders
z Aviation Life support and EGRESS Specialists
z Aviation/Aerospace Leadership and Management
z Avionics Bench Repair Specialists
z Avionics Final Check and Line Troubleshooters
z Avionics Modification and Installation Specialists
z Contract Field Team Personnel
z Corporate Interior Fitters
z Designated Airworthiness Representative (DAR)
z Designated Engineering Representative (DER)
z Engineers and Engineering Assistants
z Field Technical Representatives
z Inspectors Aviation
z Logistics Support Specialists
z Maintenance Supervisors
z Maintenance Training Specialists
z Platform Specific Engine Rebuild Specialists
z Program Managers
z Simulator Technicians
z Subject Matter Experts
z Wire Harness Build and Fabrication Specialists
z Flight Test Specialists
5.4.4 Creating a Path of Professionalism for the Aviation Staffing

As aerospace and defense staffing specialists, Reliance Aerotech Services carries a
sole viewpoint to flying staffing solutions. We work to make a path of professionalism
for the contract upkeep industry by frequently surveying maintenance, manufacture
and human resource professionals as well as contract upkeep professionals for
improvement insight into the issues of outsourcing upkeep personnel in the major
aviation industry sectors. We share this knowledge by speaking at leading aircraft
upkeep conferences, contributing to aircraft maintenance, manufacturing and
engineering magazines and conducting outsourcing ROI workshops with a goal of
making a path of professionalism for people who follow their desire for flying as a
contracted professional.
76
Resource and 5.5 COST ANALYSIS AND BUDGETING
This sub-section distinguished between capital and operating cost (DOCs). In fact,
capital cost feeds through into DOCs through ‘cost of ownership’ like items such as
depreciation and/or lease rentals (which are fixed DOCs) Furthermore, what really
matters is the cost of acquiring and operating an aircraft across its entire life cycle, and
it is therefore life-cycle cost as a whole that need to the focus of analysis. At a
growing number of airlines, shareholder value is the framework used for this analysis:
the acquisition and operation of an aircraft must be seen to add shareholder value
through its impact on eight or both revenue and costs. The most important point to
bear in mind is that whilst an aircraft’s capital and operating costs are critical, they are
– like any cost an airline might incur – relatively meaningless figures outside the
context of revenue generated. With regard to aircraft, we need to look at the revenue
they can generate (and therefore at their service design implications in reselect of
variable such as the onboard product and also frequency/capacity trade-offs on the
airlines network) in order to assess whether their life-cycle cost are acceptable.
5.5.1 Capital Costs

Different manufactures breakdown their prices in different ways, but most will include
the elements given in the following Box.
Box 5.1: Price Breakdown Structure
Airframe price (including engine nacelles) at standard specification

+ Engines (the price of which will be separately negotiated where there is a choice of
power plant).
+ Options (which might include standard options, customized options, seller-furnished
equipment (SFE), and buyer-
= AIRCRAFT CONTRACT PRICE
+ Price escalation per agreed inflation formula(sometime many large airlines will no
longer accept a few now even being able to negotiate a clause entitling them to a price
reduction in another buyer obtain better price from the manufacturer during defined
period after contact signing)
– negotiated discount and/or the value of credit notes from OEM(s) already held by the
airlines and/or any fleet integrations assistance (i.e. financial support from a manufacturer
to smooth the integration of its aircraft into the fleet of an airlines currently operating a
competitor’s products, and perhaps provided in preference to offering a larger discount
which might then serve as a benchmark in future price negotiations with the same airlines
or with other carriers)
+ change order initiated by the airlines after contract signing
= FLYAWAY PRICE
+ product support (i.e. training of engineers/mechanics and aircrew, initial provisioning
with spares and the cost of any type-specific ground support equipment)
= TOTAL INVESTMENT
+ Number of seats on the type in the airlines configurations
= Total Investment per seat
77
Price per seat has trended upwards with each successive generation of aircraft Airlines Staffing Issues and
technology that has been introduced. The reasons have been general price inflation in Solution
the global economy, and the constantly improving level of technology and
performance incorporate into new types (Trevett, 1999). However, airlines –
particularly carriers with strong bargaining position-are no longer willing to accept
ever increasing capital costs for new generations of aircraft performing essentially the
same missions as those they replace unless there are palpable benefits in terms of
firmer yields or, more usually, lower DOCs. Aircraft are simply revenue generating
resources, and carriers are increasingly insisting on a linkage between capital cost and
their potential contribution to shareholder value. OEMs and their supplier have, on the
whole responded well to this new pricing environment for their products.
5.5.2 Direct Operating Costs

We know that DOCs are operating costs that are dependent upon the type of aircraft
being flown. They have two elements: fixed and variable. Certain variable DOCs
notably fuel-burn, crew costs and en-route charges are sensitive to the stage length
chosen for DOC analysis. Standard formulae have been developed by aircraft
manufacturers and airlines trade associations to assist with DOC forecasting.
However, care has to be taken to ensure their underlying assumptions are compatible
with a particular airline’s network, fleet size, and operating environment DOCs
incurred by alternative aircraft flying a given stage-length selected for an evaluation
(because it is either representative or particularly challenging within the context of the
carrier’s network) can be examined using many different criteria. The following are
perhaps most critical.
1. Aircraft-mile and trip Costs: Which are, respectively, the cost per mile and the
cost for that trip as a whole.
With dollar on the vertical axis and distance on the horizontal, the curve
graphing this relationship for any given aircraft slopes downwards (as stage-
lengths increases) and then levels of.
Aircraft-mile and trip costs are generally higher for any given type than for a
small type of the same technological generation.
2. Seat-mile (or unit) Costs: These generally decline as aircraft capacity increases
(airlines with substantial freight business will also want to look at the cost per
ATM as well as per ASM) (Because aircraft-mile and seat-mile costs vary
depending upon stage-length selected and larger airlines operate any one type over
many different stage-lengths, it is not unusual to use cost per block-hour as
another basis for comparison).

Fill in the blanks:
1. ………………… refers to the capabilities and limitations of an airplane in
different phases of flight.
2. ………………… are operating costs that are dependent upon the type of
aircraft being flown.
5.6 LET US SUM UP

An airline is in principle a portfolio of resources – some tangible, many intangible –
brought together to pursue a corporate mission or purpose. In the same vein, a fleet is
a portfolio assembles to fulfil a number of payload-range missions. The primary
78 objective of fleet planning is to equate production capacity (and the output that is a
Resource and
Logistics Management at Airports capable to produce if efficiently utilized with forecast demand, given certain price and
other marketing assumptions. These are two fundamental reasons for acquiring
aircraft.

With the help of internet, collect more information on aircraft evaluation.
5.8 KEYWORDS
Absorption Ratio: This is the ratio of outstanding orders (aircraft units) or number of
seats) to the existing fleet, net of planned disposals or retirements.
Aircraft-mile: It is the cost per mile.
Fleet: It is a portfolio assembles to fulfil a number of payload range missions.
Seat-mile (or unit) Costs: These generally decline as aircraft capacity increases
(airlines with substantial freight business will also want to look at the cost per ATM as
well as per ASM).
Trip Costs: It is the cost for that trip as a whole.

1. Explain the concept of aircraft acquisition and financing.
2. Describe aircraft evaluation.
3. Write a note on marketing analysis.
4. Briefly explain the following:
(a) Technical Analysis
(b) Performance Analysis
(c) Cost Analysis

CYP 1
1. Service planning department 2. Flight operation
CYP 2
1. Performance 2. Direct operating cost

Berliner, William M., Managerial and Supervisory Practice, 7th ed., Homewood, III: Irwin,
1979.
Fitzsimons, Bernard, Maintenance Control Made Easy, Interavia/Aerospace World, March
1993.
Fradenburg, Leo G., United States Airlines: Trunk and Regional Carriers - Their Operations
and Management, Dubuque, lowa: Kendall/Hunt, 1980.
Justis, Robert T., Dynamics of American Business, Englewood Cliffs, N.I.: Prentice-Hall, 1982. 79
Morton, Alexander, C., Official 1983-84 Guide to Airline Careers, Miami: International, 1983. Solution
Morton, Alexander C., The Official 1983-84 Guide to Stewardess and Steward Careers,
Miami: International, 1983.
S. Ramanathan, Airport Management, Scope Publishers, New Delhi.
80
Resource and
LESSON
6
MANPOWER PLANNING
CONTENTS
6.1 Introduction
6.2 Features of the Manpower System in Airlines
6.2.1 Support Systems
6.2.2 Predicting Demand and Supply
6.2.3 Seat Ranking
6.3 Predicting Demand and Supply
6.3.1 Reserve Crew
6.3.2 Transition
6.4 Training and Vacation
6.4.1 Course Scheduling
6.4.2 Reward Decisions
6.5 Steps in Manpower Planning
6.6 Let us Sum up
6.8 Keywords

z Discuss the different features of the manpower system in airlines
z Understand training and vacation
z Explain the steps in manpower planning
6.1 INTRODUCTION
Crew charges are one of the main expenses for airlines and effective manpower
planning is consequently significant to make best use of profit. The emphasis of
investigation in the field of manpower planning for airlines has mostly been on the
scheduling of crew, while other areas, amazingly, have established very little
attention. This provides an impression of some of the other difficulties facing 81
Manpower Planning
manpower arrangers, such as planning a career ladder, planning transitions and
making course schedules.
This lesson starts by providing an outline of the most significant types of the
manpower system in airlines and then continues with a short performance of how
airlines solve different manpower planning difficulties both factually and at currently.
Finally a wide impression of different problems in manpower planning in airlines is
obtainable.
6.2 FEATURES OF THE MANPOWER SYSTEM IN

AIRLINES
All cabin and flight deck crew locations can be labelled by a few features:
z Base: Base is the geographic setting where the crew member is positioned, i.e.
where he/she starts and ends his/her trips.
z Rank: There are typically three different ranks for pilots; flight captain, first
officer and relief pilot. The flight captain is the commanding officer on the aircraft
and therefore has the general accountability on the link. The flight pilot has
essentially the similar task as the captain but has no impressive post. A release
pilot everything wholly on long tug trips were the release pilot substitutes the
captain or first officer when they are in want of a rest. The relief pilot is not
permitted to take off or land the aircraft. The cabin crews are also normally
divided into three levels of rank: purser, steward and flight attendant.
Most Airlines have various kinds of aircrafts and the experiences of a crew member
state which types of aircrafts the crew member is permissible to man. Pilots are
usually only competent for one type of aircraft while nearly all cabin crew members
are allowed to man two or more types of aircraft. Apart from the features concerning
the position, each crew member has a unique superiority number based on length of
facility within the airline, with some decreases for long deficiencies. The seniority
number regulates the priority of the crew member when promotions, vacations, etc.
are allocated. Most pilots need to move from lesser to bigger airplanes and from first
officer to captain, since pay and status are highly related with aircraft and
accountability, hence pilots change locations many times during their careers.
Manpower planners also want pilots to move between locations since the need at
different positions change with time. The process of determining which pilot to be
transferred from one position to another is referred to by many names, but here the
notation transition planning will be used.
Nearly all pilots that are consigned to a new location need training. On the other hand,
the amount of training desired depends on their previous experience and the new
position. The kind of training that is necessary when a pilot changes position is called
initial training. Initial training is the most broad and time-consuming type of training,
demanding between 5 and 8 weeks. There is also regular training and refresher
training. All pilots go through recurring training a combine of times yearly to safe the
feature of the pilots by both check-ups and training on irregularities and safety.
Reminder trainings are devoted to pilots who have not newly flown the compulsory
number of legs wanted to keep their qualification. All training types include all or
some of the following elements:
z classroom training
z ground training
z simulator training
82 z in-flight training
Resource and
Logistics Management at Airports z flight checks
Most of the training elements need a mentor that is capable to teach for the rank,
qualification and training type in question. Trainers are usually veteran senior pilots
that have undergone training to become instructors. The preparation of transitions and
training is two of the difficulties facing manpower planners in airlines but there are
several others.
6.2.1 Support Systems

All airlines have some means for handling their manpower such as legacy database
applications, spreadsheet applications and paper-based record keeping. Most of these
means are only a provision for manual preparation and for many years an advanced
decision-support system has been envisioned by operations research and information
technology professionals.
Figure 6.1: Overview of Demand and Supply of the Crew

In 1991, Verbeek presented a framework for such a system for a planned manpower
planning problem for airline pilots. His system, which was intended for KLM, was
organized in three parts:
z A data preparation part,
z An (interactive) planning support part,
z A reporting part.
The system intended to help when explaining the problem of “when to program
transition training for aviators from one group of pilots to another and when to hire
new pilots, so as to minimize surpluses and shortages of pilots and training costs”.
Verbeek formulated some sub problems as mathematical models, but all sub-problems 83
Manpower Planning
were resolved with heuristics in the system. The initial ideas for the development of an
integrated manpower planning decision support system at Continental Airlines were
presented by Yu et al. in 1998. The system contained pilot and flight attendant fleet
optimization, monthly planning optimization, training administration, vaca1tion
administration, and seniority administration.
Figure 6.2: Overview of the Crew Resource Solver

The system uses progressive optimization methods to resolve the different manpower
planning problems, and some of these techniques will be described in the coming
sections. Even though both Yu’s and Verbeek’s systems have been intended for one
precise airline, the approaches used to solve the difficulties are general and can after
only some alterations of rules be used by any airline.
A related application was presented by Haase et al. in 1999 who developed a decision-
support method for course planning at Lufthansa Technical Training GmbH, which
delivers training to meet the requirements technical staff to perform duties in such
areas as aircraft maintenance, overhaul, and inspection.
84 6.2.2 Predicting Demand and Supply
Resource and
Logistics Management at Airports Very little study has been done precisely for demand and supply forecasting in airlines
and it is consequently hard to get a summary of how different airlines solve the
problem. The information accessible below is consequently based on the information
at Jeppesen about how their clients do. As for most establishments correct estimates of
supply and demand of manpower is essential for airlines. There are some different
ways of determining supply and demand, but the most common one is block-hours.
The number of block-hours is dignified as the time between an aircraft is separating
the departure gate and arriving at the destination gate. The major constituent of
demand is fabrication, i.e. how many block-hours or manufacture days that are
desirable to man all aircrafts, and added to this request is need for free days, standbys,
training, vacation, etc. For supply the major constituent is of course the number of
employees, which is subtracted by approximations of retirements, different kinds of
leave of absence, long-term sickness, etc. To get the number of offered block-hours,
the number of obtainable crew members is increased by the application. Utilization is
the predictable amount of work from each crew member.
Whether a constituent is measured to touch request or supply is not clear and
fluctuates between airlines. A long time in advance the evaluation of request is based
on the predictable fleet of the company. Closer in time (about 1 year) there often
exists a (preliminary) timetable to base the approximations on. By making an initial
fleet obligation and crew pairing a very good approximation of demand can be
obtained, but unfortunately very few airlines do this. Close to the day of operation
(1-3 months) crew programs are obtainable and this provides very good estimations on
both supply and demand of manpower.
A Swedish airline, which uses production days (number of crew members needed per
day) as a dimension, assessments that each airplane will want two crew members per
place during one day to cover the flights. They also guess that to yield one
manufacture day of flying, they need 7.31 manufacture days to cover free days,
vacations, etc. This means that if they 17.3 is not the true number with respect to the
company have 15 aircrafts of one type they estimate that the demand for production
days on that type of aircraft is 15 ・ 2 ・ 7.3 = 219 per position.
Most airlines have wide evidence about their crew in a personnel system. From these
systems data on current numbers of crew members at different positions, and to some
degree also trends for sickness, child-nursing, etc. can be derived. Consumption is, in
contrast to other businesses, a very small problem in airlines. Few pilots change
business, possibly because of the assistances of being a senior pilot. There is yet one
problem related with forecasting supply, namely the gathering of poles apart contracts
used, stipulating when and how much the crew is to work.
6.2.3 Seat Ranking

Till now the habits that crew members want to change between locations have been
measured to be fixed. This is possibly true to some degree, since big airplanes often
fly to unusual terminuses while the small carry national travellers. The vocation ladder
that most pilot shadow is different at different airlines. For example, pilots at SAS
change position about six times throughout their occupation and the variation from
first major to captain at the same aircraft type in advance they change to a bigger
aircraft.
At Lufthansa, on the contrary, aviators change from first officer on one aircraft to first
officer on another aircraft, and when they spread the top of aircrafts they change to
captains on the smallest aircraft, and so on. Some airlines have achieved to put some
locations in equivalent and by that dipping the number of variations a pilot makes
during a career; we have seen an example of an airline were a pilot only changes 85
Manpower Planning
position approximately 2.4 times, although the number of aircraft types is greater.
By annoying to disturb the pilots’ selections there might be change to save by less
trainings, which lead to less time away from construction. The major means of
inspiration is of progression the salary on different positions. By assessing how
different salary locations effect pilot wishes, and how these wishes effect training
costs and salary costs, a career ladder that is cheaper might be found, even if the
incomes become more luxurious. An example of how putting aircraft types in parallel
can affect the number of trainings can be found. The goal of the seat ranking is to find
a remuneration delivery that leads to a vocation ladder with minimal total cost. In a
model of how to evaluate different career ladders can be found. To my knowledge
there is no published research in this area.

Changing from the old vocation ladder to the new one means two transitions less and
training costs that are substantially lower.
Crew Groups
Most manpower problems offered in this hypothesis emphases on preparation of

pilots; there is conversely, a stimulating problem almost single to manpower planning
of cabin crew, namely crew grouping. When forecasting demand and supply all crew
members have to be gathered into disjoint groups, were members of a groups are
measured as equal for planning purposes. For pilots this is easy to do meanwhile they
rarely have more than one requirement and consequently can be grouped by
requirement and rank. For cabin crew on the other hand, creating disjunct groups
becomes more problematic since they time and again have at least two experiences.
When deciding which groups of qualification to use and how to size each of the
groups used there are a few things to keep in mind:
(a) Crew assemblages with many qualifications are easier to assign in the crew
combination, leading to a better and cheaper solution.
(b) It prices more to embrace numerous qualifications since the crew members need
preparation for maintaining all their qualifications.
86 (c) If the groups are also big or the practice of qualifications in a group is very
Resource and
Logistics Management at Airports unstable, problems with recency may arise, i.e. the crew members cannot fly the
obligatory number of flights to keep their qualification.
(d) Multi-qualified crew members mark the recovery stage much easier in the
meantime the degree of freedom is greater. If on the other hand recency is a
problem, it might be hard to find a recovery solution that declares crew members
to fly sufficient to keep their qualification.
(e) If there is interdependence among foundations, the groups should be comparable
at all bases, while if there is no interdependence one combination per base could
be used.
Traffic Assignment
Strategic and planned assessments such as presenting a new fleet, growing a current
fleet, varying destinations, making a timetable, etc., all influence the demand of crew.
So when seeing such choices the impact of these on the crew must be strong-minded
to correctly approximation changes in crew costs. As a result of this, manpower
organizers are often referred during the choice process to assessment potential changes
in crew costs. To do these estimates manpower planners reflect one or often more of
the problems labelled in this chapter, but with a situation in its place of the reality. An
example can be found at SAS Scandinavian Airlines where a process called “snurran”
is used for planned decisions such as building a timetable. This process starts with the
building of a timetable by workers in charge for journeys and customer market. The
manpower organizers then do an important investigation to find what crew changes
would be essential and what the cost would be. The results are sent to the traffic
planning that attempts to create a timetable that poises the customers’ needs to costs.
This timetable is then sent back to the personnel in charge for flights and client
market, and the process start all over again until a timetable that works well for both
crew and customers have been constructed.
Equipment Requirements
There are so many techniques for Manpower Planning. They are listed below:
(a) Conversion ratios that convert workload (production schedules, patient loads,
expansions or contractions in operation) data into personnel demand estimates
may be used for a short-range manpower planning.
For example, as sales rise by a particular percentage, an industrial concern may
define that the number of employees in the departments or divisions must also
increase. Similarly, hospital administrator may select that a 10 % increase in
patient load will involve a 10 % increase in nursing staff, 8 % increase in
laboratory and x-ray personnel, and 2 % increase in upkeep, and administrative
employees. But this method just can offer a rough estimate of the number of
employees needed. An organization needs not only the number of employees they
need, but also the kind of workers required at different levels, departments, and
locations.
(b) Aggregate planning model is a kind of long-range human resource forecasting
which is more responsive to mathematical and statistical model than short-range
forecasting. This model incorporating the following factors is used to forecast
overall employment in an organization:
1
( Lagg G )
En = X
Y
Where 87
Manpower Planning
En: is the estimated level of personnel demand in n planning periods (e.g. 5
years).
Lagg: is the overall or aggregate level of current business activity in dollars.
G: is the total growth in business activity anticipated through period n in today’s
dollars.
X: is the average productivity improvement anticipated from today through
planning period n (e.g. if X=1.08, that means an average productivity
improvement of 8%).
Y: is a conversion figure relating today’s overall activity to the human resources
required. It reflects the level of business activity per person.
Earlier to working numbers into the model, estimates of G, X and Y must be
made. Such estimations may be based on the prior experiences of management,
along with future strategic choices to which the organization’s decision makers
are dedicated. And the accuracy of these estimates will heavily affect the
forecasting results.
(c) Another quantitative approach, linear regression analysis may also be used to
estimate the human resources essential at a future point in time, based on a
business factor such as sales, output, or services rendered. The prior information
can help to find the relationship between the demand of the employees and some
business factors. Then the statistical technique linear regression can be used.
(d) There many other methods which are used in manpower planning like Zero-Based
Forecasting.
6.3 PREDICTING DEMAND AND SUPPLY

6.3.1 Reserve Crew
In the forecasting procedure which consequences in a schedule for crew and fleet was
labelled. This timetable does though rarely operate as deliberate. Interruptions due to
conservation difficulties or severe weather circumstances are usual and throughout a
typical day numerous flights may be delayed or null and void causing airplanes and
crew to miss the rest of their dispensed flights. The problem of dealing with
disturbances is the thing of recovery preparation. It is frequently not promising to
resolve the problems by means of only unvarying crew and airlines consequently keep
standby crew members. The reserve crew members work on call and are assigned to
those flights where the assigned regular crew cannot fly the aircraft due to
interruptions. Airlines using the bid line structure also allocate reserve crew to
“exposed trips”. During the attempting process crew memberships are allowed to bid
for programs that struggle with their separate vacation and training projects. This
generates bidding-invoked battles causing combinations to be dropped from the
characters’ schedule and hence become uncovered. For airlines using the bid line
system these “uncovered trips” donate to a major portion of reserve crew demand; for
a major U.S. Airline such as Delta it can contribute to more than 60% of the reserve
demand. Airlines using superior bidding systems do not have exposed trips,
subsequently they stop conflicts with training and break assignments during the
rostering process.
Approximating the request of reserve crew is hard. It look like the overall
approximation of request in that it can to some degree be resulting from corporation
fleet or schedule, but differences are far greater. By involvement airlines typically get
88 some idea of how much standby crew they need. A problematic when originating
Resource and
Logistics Management at Airports approximations based on past data is that reserve crew is then almost always used,
since the aim of regaining planning is to find an explanation instantaneously and not
reducing team use, but in many belongings there might have been an answer that did
not need much reserve crew at all. Diverse tactics for reserve crew are realistic by
different airlines. For some airlines understudy crew are a singular group that always
flies flights that for some reason have been deassigned from the consistent crew, this
plan is common in the U.S. The reserve crew programs do not contain pairing like for
the regular crew, but of groups of consecutive on-duty and off-duty days and are
called reserve patterns. A design type is determined by the total number of, and
grouping of the off-duty days, one instance of a design type used by a large U.S.
carrier is 4-3-3-2:6-3 which is a backup pattern with one group of four off-days, two
of three off-days and one two off day, all disconnected by at least three days and with
at most six successive on-days. How to choose which designs to use have been a field
subject to some investigation, and Dillon and Kontogiorgis presented in 1999 a
deterministic model which had been implemented at US Airways with achievement.
In 2004 Sohoni et al. obtainable a stochastic optimization preparation reducing
instinctive flying hours and cost over a determinate number of situations.
Not all carriers have singular team for reserve duty; there are corporations that use the
normal crew for reserve duty as well. These companies schedule reserve duty the
exact same way as flights, and planning of reserve duty is hence done by the crew
paring and rostering.
For airlines the factors that are easiest to decide over and plan for are transitions, i.e.
who are going to get promoted or transferred, training, i.e. when are the required
training going to take place, and vacation, i.e. how many is going to have vacation at a
certain time.
6.3.2 Transition
One way of adjusting supply to request is moving pilots from one seat to alternative.
The procedure of determining which pilot to be transferred from one position to
another varies between corporations but one can usually differentiate two different
schemes: system bid award and special bidding. As a part of the process the number of
new hires and pilot releases are also decided.
When by means of a system bid reward the airline deals positions to the pilots,
established on predicted wants for the company. The pilots then bid on the locations
they wish and position are awarded in seniority order. If there are not sufficient pilots
wanting a position, projects will be made in opposite precedence order. In a regular
system offer award at Continental Airlines 15-20 per cent of the pilots change
position. Special request is alike, but here the pilots first order the situations in the
order they wish them, then the planners award conversions based on forecasted need,
desires and seniority. Both systems dispense all transferees for a period (often 6-12
months) and have a real date when all aviators who been allocated to a new location
shall have been transferred to their new positions.
In some airlines it is likely to break the seniority order in special cases, this is though
related with a cost called pay-protection. Pay-protection means that the extra senior
pilot that did not get the transference he wanted, due to contravention of seniority
rules, accepts the same pay as he would have had if transferred, from the day that the
less older pilot is transferred. Since initial developments are very exclusive manpower
planners do not want pilots to spend too short times in a certain seat. Most airlines
therefore have a rule that force pilots to spend a minimum amount of time in the new
seat before changing again. This time is called the binding period. It is different
between airlines and depends both on the new and old seat, but is usually 2-3 years.
Presently most companies do change in planning for only one period of time, e.g. a 89
Manpower Planning
year. Since exercise and hiring take a long time, e.g. Air France cadets get hired 26
months before they are ready to go into production, it would be required to take
numerous time stages into explanation when making the change plan. Manpower
planners also want the plan to keep exercise costs at a low level, have a low level of
transfers and achieve crew wishes. The seniority-order awarding does however not
leave room for adjustments that would reduce number of transfers and training costs.
To my knowledge there is no research on how to make a good transition plan and only
a little on how to make a transition plan at all.

1. Base is the geographic setting where the crew member is positioned, i.e.
where he/she starts and ends his/her trips.
2. Pilots are usually only competent for one type of aircraft while nearly all
cabin crew members are allowed to man two or more types of aircraft.
3. All airlines have some means for handling their manpower such as legacy
database applications, spreadsheet applications and paper-based record
keeping.
6.4 TRAINING AND VACATION

When conversion planning has been completed the next step is to plan when the
changeovers, new employs and pilot releases are going to take place. When making
such a plan there are many limitations that need to be considered:
1. A very significant area when generating a strategy is to safeguard that the request
of pilots at each time and position can be enclosed by those available. This is yet
not continuously likely and then the block hour shortage should be minimized.
2. Assets for training, such as mentors and simulators, are inadequate and the
training strategy must validate that all resources desired for a pilot’s initial
training are accessible.
3. Pilots may have pre-assigned events, such as vacation, avoiding them from going
through exercise at a specific time. Since on the other hand the plan at many
airlines is made a long time in advance, the number of such activities should be
relatively few.
4. All pilots that were presented a transition must be transferred within the essential
period.
5. There might be seniority rules limiting the order of changeovers, such as pay-
protection or rules forcing changes to be in superiority or reverse-seniority order.
Yu et al. have built and implemented a model considering all these restrictions for
Continental Airlines. There are however a few aspects that their model does not reflect
in a way that may be necessary:
z Recurrent sequences are only measured to block possessions and capacity, no
optimization of when to place recurrent courses is made. This would however be
wanted since regular courses use the same incomes as the initial training.
Additionally pilots in recurring courses are not offered for production. This
suggests that preparation of recurrent courses at the same time as initial training
makes it easier to meet the restrictions on resource readiness and block-hour
shortage minimization.
90 z A vacation economical is measured an input to the model. Since holiday takes
Resource and
Logistics Management at Airports away pilots from making in much the same way as training sequences do, it would
mark it easier to stop block-hour deficiency if the leave were deliberate at the
same time as the courses. Laws and union protocols regulate rules on when and
how leave can be retained, and on how frequently and which kind of recurring
training that is needed. These consequences in a diversity of rules that vary a lot
between airlines. An example of a law that touches vacation distribution is the
Swedish holiday law that specifies that if nothing else has been agreed-on, for
example in union regulations, personnel have the right to four consecutive weeks
of vacation during the summer. An example of laws regarding recurring training is
EU OPS 1.965 that specifies what kind of recurring training that is desirable in a
commercial airline within the countries of the European Union, an example from
this law is that all flight crew members undergo a line check2 every 12 months.
While discovery a plan that take place all limits and rules the objective is of
sequence to diminish the costs. The costs that would be considered are:
Transition Costs: When a pilot changes situation the costs for that pilot, chiefly the
pay but possibly also training costs, etc. often change.
Course Costs: There is of course a cost associated with holding the required courses,
and the cost of the course can often be divided into two parts, a cost for holding it and
a cost per participant. An instructor checks pilots throughout one of their normal
flights.
Shortage Costs: When requiring manpower the airline has to crack the problem of this
in some way, which is frequently related with costs that have to be measured. It is
however problematic to know what the costs really are and consequently conclusion a
good estimate is important. Pay-protection costs If pay-protection is used the costs of
that should be considered.
6.4.1 Course Scheduling

In the training portion a plan for when pilots shall go through training is created
captivating into account limits on resources, such as mentors and trainers. To get a
comprehensive schedule still, there needs to be a plan for which pilots/courses use
which reserve and when. This problem is called course arranging, and schedules all
course happenings while conveying essential resources to each activity. The
constraints on a program that essential to be considered are:
z There are rules concerning the order of the happenings within a course, often the
doings need that one or more of the actions have been done earlier. Occasionally
there are also limitations that some undertakings must be planned successively
without days-off in between. With each course a pattern is therefore related,
defining which the doings are and the common order of them.
z Resources can be allocated only once every device period.
z Pilots that are reserved on consecutive days must day 2 be programmed in the
same or a later expedient period than day 1.
z Pilots are permitted to days-off that have to be arranged. At Continental Airlines
the overall rule is that for every 7 successive days there must be at least 1 day-off,
and for every 14 consecutive days there must be at least 4 days off Qi et al. have
presented a complex heuristic to solve the course scheduling problem and this
heuristic is included in the Crew Resource Solver implemented at Continental
Airlines, and described by Yu et al. These are the only efforts to resolve the
course planning problems for airlines known to me. The time available in a
simulator (training device) throughout a day is frequently separated into phases
mentioned to as device periods. Timetabling, resource-constrained project
scheduling and machine scheduling but all of these are different in some way that 91
Manpower Planning
makes them inappropriate for request to the course scheduling problem.
6.4.2 Reward Decisions

All policies for terminating the gap obtainable above use some kind of force. The
planners agree what the crew must do and when. There is still other ways to make the
crew achieve the requirements of the company by simply presentation the “right”
decisions. A few examples of this are presented below.
z By Swedish law all workers have the right to at least 4 weeks of associated
holiday during June, July and August. This can be to some extent a difficulty to an
airline that cannot shut down during the summer. One airline does consequently
give their workers the subsequent offer. If you move out vacation from the
summer to a different part of the year you gain 0.5 extra days for every day
moved. The contradictory is also true, if you want to have more holidays during
the summer than the 4 weeks obligatory by law you have to pay 1.5 vacation days
for each extra vacation day during the summer. This means that if you move 6 day
from the summer you can have 9 days of vacation at another time, but if you want
to move 6 days from the autumn to the summer you will only get 4 vacation days.
z An airline that has a difficulty with redundancy has measured giving their
employees the subsequent offer. If captivating a leave of time off there will be no
loss of superiority, i.e. the pilot will keep his/her place on the rank list even
though not employed. Additionally the carrier will keep paying for your upcoming
allowance as if you were working. By giving this offer the airline can recall their
pilots in the business for later times when they might be wanted, while paying
very little for them.

Fill in the blanks:
1. ………………… is the geographic setting where the crew member is
positioned, i.e. where he/she starts and ends his/her trips.
2. The goal of the ………………… is to find a remuneration delivery that
leads to a vocation ladder with minimal total cost.
6.5 STEPS IN MANPOWER PLANNING

1. Analysing the current manpower inventory: Before a manager makes predict of
prospect manpower, the present manpower position has to be analysed. For this
the following things must be keep in mind:
Employees in these work units
Number and quantity of such departments
Number of departments
Type of organization
Once these factors are registered by a manager, he goes for the future forecasting.
2. Making future manpower forecasts: On one occasion the factors affecting the
prospect manpower forecasts are recognized, preparation can be done for the
future manpower necessities in numerous work units. The Manpower forecasting
methods usually engaged by the organizations are as follows:
(a) Expert Forecasts: This includes informal decisions, formal expert surveys and
Delphi technique.
92 (b) Trend Analysis: Manpower needs can be projected through extrapolation
Resource and
Logistics Management at Airports (projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure).
(c) Work Load Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division.
(d) Work Force Analysis: Whenever production and time period has to be
analysed, due allowances have to be made for getting net manpower
requirements.
(e) Other Methods: Several Mathematical models, with the aid of computers are
used to forecast manpower needs, like budget and planning analysis,
regression, and new venture analysis.
3. Developing employment programmes: Once the present record is compared with
future forecasts, the service programmes can be framed and developed for that
reason, which will take account of recruitment, selection procedures and
placement plans.
4. Design training programmes: These will be based upon degree of diversification,
expansion plans, development programmes, etc. Training programmes depend
upon the extent of enhancement in knowledge and development to take place. It is
also done to pick up upon the skills, capabilities, knowledge of the workers.
Material Resource Management and Management of Human Resources

Material resource management is defined as the scientific technique that includes the
Planning, Organizing and Controls the movement of the materials, from their starting
point of purchase through the internal operations to destination.
Aim of Material Resource Management

To get:
1. For the Right cost
2. At the Right time
3. The Right quality
4. Right quantity of supplies
5. At the Right place
Purpose of Material Resource Management

z To carry reserve stock to avoid stock out
z To gain economy in purchasing
z To provide reasonable level of client services
z To satisfy the demand during period of replenishment
z To stabilize fluctuations in consumption
6.6 LET US SUM UP

The key management functions are planning, organizing, directing and controlling that
are based upon the manpower Planning. Human resources facilitate in the realization
of all these managerial actions. Consequently, employment becomes a means to all
management functions. Well-organized utilization or efficient management of
employees becomes a significant task in the industrialization of the world of
nowadays. Setting of large-scale enterprises needs management of large-scale 93
Manpower Planning
manpower. It can be effectively completed through staffing function. Motivation is the
staffing function that not only comprises putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for more
contribution and employment of workers in a concern. Consequently, all types of
incentive plans become a basic part of staffing function. A better human relation is a
concern and can soothe itself if human relationships develop and are strong. Human
relationships become a strong channel effectual control, clear communication,
effective supervision and leadership in a concern. Staffing function also looks after
training and development of the employees which leads to collaboration and better
human relations. Productivity increases when resources are utilized in finest possible
manner. Higher productivity is a consequence of smallest amount of wastage of time,
money, efforts and energies. This is possible through the staffing and its related
activities.

Study the recruitment plan of your college and discuss in your class.
6.8 KEYWORDS
Management: Management in business and organizations means to coordinate the
efforts of people to accomplish goals and objectives using available resources
efficiently and effectively.
Manpower: Total supply of personnel available or engaged for a specific job or task.
Reward Management: Reward management is concerned with the formulation and
implementation of strategies and policies that aim to reward people fairly, equitably
and consistently in accordance with their value to the organization.
Scheduling: Scheduling is the process of deciding how to commit resources between
a variety of possible tasks.

1. What is manpower planning?
2. How can you say that manpower planning is important in aviation?
3. Explain the training and vacation concept in aviation industry.
4. Describe the features of manpower planning in aviation.

CYP 1
1. True 2. True
3. True
CYP 2
1. Base 2. seat ranking
94
Resource and 6.10 SUGGESTED READINGS
Berliner, William M., Managerial and Supervisory Practice, 7th ed., Homewood, III.: Irwin,
1979.
Fitzsimons, Bernard, Maintenance Control Made Easy, Interavia/Aerospace World, March
1993.
Fradenburg, Leo G., United States Airlines: Trunk and Regional Carriers - Their Operations
and Management, Dubuque, lowa: Kendall/Hunt, 1980.
Justis, Robert T., Dynamics of American Business, Englewood Cliffs, N.I.: Prentice-Hall, 1982.
Morton, Alexander C., The Official 1983-84 Guide to Stewardess and Steward Careers,
Miami: International, 1983.
Morton, Alexander, C., Official 1983-84 Guide to Airline Careers, Miami: International, 1983.
S. Ramanathan, Airport Management, Scope Publishers, New Delhi.
UNIT IV
97
LESSON Recruitment, Selection and
Training in Aviation
7
RECRUITMENT, SELECTION AND TRAINING
IN AVIATION
CONTENTS
7.1 Introduction
7.2 Recruitment
7.2.1 Recruitment Function
7.2.2 Internal Recruitment and Recruitment Policy
7.2.3 Sources of Recruitment
7.3 Selection
7.3.1 Preliminary Screening of Applicants
7.4 Interview
7.5 Training and Certification of Personnel
7.5.1 Need for Manpower Training
7.5.2 Classification of Training Programmes
7.5.3 Steps for Designing the Training Programme
7.5.4 Sequence of a Training Programme
7.5.5 Need for a Training Policy
7.6 Let us Sum up
7.8 Keywords

z Discuss the characteristics of recruitment
z Describe the selection process
z Identify the training need
z Understand the difference between recruitment and selection process
98
Resource and 7.1 INTRODUCTION
Any discussion on Human Resource Management (HRM) would be incomplete,
without an overview on the process of its development. Hence we have to take a brief
note on HRM, especially its different phases of development, conceptual issues,
objectives, importance and linkages with other organizational roles. With this
backdrop, we then have to understand HRM and appreciate why HRM has now
become so important for the successful management of an organization.
Particularly at a stage when we all confine our attention to downsizing or rightsizing
of manpower, organizational restructuring, process re-engineering, cost minimization,
etc. to address to the problem of an organization, HRM, per se, has assumed more
importance. While employment practices differ from country to country, we find the
experiences of industrially advanced nations also by and large converge on HRM
issues. Almost everyday, newspapers and business magazines carry news items on
VRS, job-cuts, downsizing or rightsizing, early retirement, retrenchment and
manpower pruning. And this is not limited to only those organizations that are
operating on a smaller scale, even globally visible multinationals are also in the fray.
Thus HRM issues are globally relevant, although their magnitude may differ from
country to country at the macro level and organization to organization at the micro
level.
For staffing various positions in the organization, we need to go for external hiring, as
redeploying existing manpower through job restructuring may not be adequate.
External hiring process succeeds Human Resource Planning. Through HRP we can
understand the extent of external hiring after adjustment of internal manpower.
7.2 RECRUITMENT
Recruitment is an important tool for procuring and effectively using human resources
in an organization. While recruitment involves employing suitably trained work force,
selection helps in choosing the right candidate for the right job. Induction and
placement is putting the men to the right jobs. This unit focuses on these four
important organizational activities. The traditional approach to personnel management
was to ensure routine human resources maintenance functions for the organizations.
But recently, radical changes in human resource management, i.e. perceiving human
resources like other important resources (physical and financial) of an organization
have developed new areas for personnel management. The human resources are the
people who are part of the organization. Broadly, they may be direct employees, the
customers served, part-time persons, temporary employees or consultants or any
person or persons with a variety of other relationships to the organization. Within the
human resources area, there are two major activities. The first is concerned with the
recruitment, selection, placement, compensation and appraisal of the human resources
(they are known as human resources utilisation functions or personnel functions). The
other functions are directed to work with the existing human resources, improving
their efficiency and effectiveness. These are known as human resources development
(HRD) functions which are designed to enable existing human resources to learn
activities for their effective functioning in the present jobs, future identifiable jobs and
so also for future undefined jobs. For increasing importance of human resources, it is
now imperative for all organizations to retain the manpower and at the same time to
recruit and select best possible talents in the country. Most of the organizations are
now facing technological changes, resulting in the radical change in the recruitment
process. Such a technological change, inter alia, calls for hiring manpower having
higher skills and knowledge, which were not so far available. However, when we
consider the recruitment of manpower for unskilled jobs, there seem to be no apparent
problems for the organization, as these people are abundantly available in our country
due to the high rate of unemployment. For high technology employees, i.e. mostly 99
Recruitment, Selection and
those who are in managerial positions with professional skills, recruitment function is Training in Aviation
more complex and dynamic.
7.2.1 Recruitment Function

The term recruitment may be defined as the process to discover sources of manpower
to meet the requirements or the staffing schedule and to employ effective measures for
attracting that manpower in adequate number to facilitate the selection of an efficient
working force. The first important task of recruitment function is to frame a
recruitment policy, which calls for review of manpower requirement i.e. it should be
adequately supported by effective manpower forecasting. Manpower planning and so
also manpower forecasting of an organization depends on many important factors like
present nature of work, possible change in the future working of the organization, the
manpower records and information available in the organization for the present
strength, the diversification plans and programmes of the organization, the
environmental change and the change necessary in the organization to respond to such
environmental change, etc. Most of the organizations, in principle, believe in
recruiting the best possible manpower from outside the organization. However, the
recruitment policy of some organizations considers recruiting the employees based on
the recommendation of the present employees or recruiting employees from the wards
of the existing employees. For example, in Tata, there is a system to recruit employees
for unskilled/low-skilled jobs, both technical and non-technical nature, from the wards
of the existing employees. Such a policy of recruitment in Tata has been accepted in
principle and Tata, in their manufacturing units, maintain separate employment
exchange records to enlist the names and other details of the employees' wards to offer
them employment as and when a vacancy arises. But such type of recruitment policy
is not followed while hiring manpower for managerial jobs. In such cases, companies
are looking for best available talents. Thus, they go either for advertising the vacancies
in leading newspapers of the country, even in good professional journals or they may
go in for recruitment of such managerial manpower by effecting campus interview,
and also going for retaining the services of recruitment consultants. Such recruitment
consultants, having maintained a separate data bank for the prospective job seekers,
can make available a list of prospective managerial manpower to such companies. In
addition to the framing of the recruitment policy, each organization for making their
recruitment a scientific process of selection carries out regular forecasting of
manpower recruitments.
7.2.2 Internal Recruitment and Recruitment Policy

In some cases, organizations are also trying to internally man higher managerial
vacancies from their existing employees. In those cases, organizations need to develop
their existing manpower adopting suitable training and development functions.
Training and development may not necessarily always ensure availability of the best
talents internally. Organizations are then compelled to recruit from outside sources,
mentioned above. A sound recruitment policy calls for adopting a scientific process of
recruitment, i.e. those techniques, which are modern and scientific. Recruitment policy
also requires one to consider the high cost of managerial turnover. Unless a company
adopts a suitable recruitment policy, it may not be possible for the company to select
the right candidate for the right job. A sound recruitment policy, therefore, needs to:
1. Identify, at the outset, the recruitment needs of the organization,
2. Identify the preferred sources of recruitment,
3. Frame suitable criteria for selection and finally,
4. Consider the cost of recruitment.
100 7.2.3 Sources of Recruitment
Resource and
Logistics Management at Airports As has already been discussed, a particular organization may effect recruitment either
from the internal sources, i.e. by promoting the existing employees for higher
positions, or they may go for outside sources. Thus internal and external sources of
recruitment can either be resorted to by any organization, subject to convenience and
feasibility. Recruitment is an art of attracting applicants, from whom the most suitable
ones may be selected in a particular job or jobs. Internal recruitment may often avoid
unpleasantness, but it is not necessarily effective because it does not allow the
organization to get many alternatives to select the best available talent. External
sources being available, it gives opportunity to an organization to tap the best or
suitable candidates from widely dispersed areas. The requisition for recruitment
contains a brief description of the post, qualification and experience required, etc.
Such requisitions are normally signed by the head of the human resource department.
External sources of recruitment are taken recourse to keeping in view the type of
personnel required. The workmen may be recruited at the gate itself or from the
employment exchange. Management trainees are taken from the institutes and
universities, effecting campus interviews. Senior executives are attracted through
advertisements in leading newspapers and magazines. The major sources of
recruitment for different types of personnel, therefore, are as follows:
1. Employment exchanges,
2. Consultants and private employment agencies,
3. Advertisements in periodicals and newspapers, radio and TV,
4. Deputation,
5. Universities and management institutes,
6. From the source of existing employees,
7. Trade unions,
8. Internet/job site, etc.
The employment exchanges maintain a register of candidates seeking various types of
job. Under Compulsory Notification of Vacancies Act, 1955, the employers are
required to notify certain types of vacancies to the nearest employment exchange and
recruit candidates from among the applicants registered with them. The skilled and
unskilled workers and the clerical staff are mostly recruited through employment
exchanges. Private consultants and agencies assist organizations in locating technical
and managerial staff.
They charge prescribed fees for their services to the organization. Advertising in
newspapers and magazines, radio and TVs, have now become most effective sources
for attracting the prospective candidates. It also helps in building the image for the
organization because through such advertisements, the organizations make available
certain information, like their products, their market share, their turnover value, etc. to
the public in general and target consumers in particular. Since written Press insertions
or verbal advertisements through audio and audio-visual methods give first-hand
information to the prospective job seekers, each organization is required to give as
much factual information as possible regarding the job-expectations from the
candidates, their age group, qualifications and experience, salary and perks attached to
the positions and important conditions of service, the time-limit and mode of applying,
etc. There are some agencies that help organizations in drafting, publishing and
broadcasting advertisements. Deputationists are mainly appointed in public sector
undertakings. The civil servants are often deputed for many senior and mid-level
positions for a specified time. Recruitment from universities and management
institutes are effected through campus interviews. Almost all good private 101
organizations select their management trainees through such method. Some Training in Aviation
organizations even sponsor the cost of prospective students during their learning to
join them after completion of the course.
From the source of existing employees also, recruitment is done by many private
organizations to ensure commitment and loyalty and at the same time to motivate the
employees. Such type of recruitment however is restricted only to the clerical and
unskilled jobs in most of the cases. Trade unions also recommend candidates for
clerical and unskilled jobs. This practice is not in vogue in many organizations. Only
in technical training schemes, trade unions were found to influence the organizations
to induct their recommended candidates as apprentices. Recruitment through
internet/job sites also have now become very popular for its wide reach to focussed
job seekers, immediacy and cost effectiveness. Because of its global reach,
organizations also get the flexibility to attract the best talent. Many placement agents
have now started this service to increase their business volume.
7.3 SELECTION
The major step in selection procedure is to personify such attributes in candidates, i.e.
developing a specification of persons, to define the background education, training,
personality and characteristics of the candidates to suit the vacancy position. This in
reality is an exercise to pre-portray an ideal candidate for a job.
7.3.1 Preliminary Screening of Applicants

The number of applications normally received against any advertised vacancy is
usually more. This creates the problem of selecting the right persons. Moreover,
conducting tests and interviews for all the candidates may not be always feasible and
cost-efficient. To obviate such problems, most of the organizations sort out unsuitable
candidates before going ahead with the selection process. There are many different
ways to do such preliminary screening. Some organizations conduct short tests for all
the applications, while the best method may be the checking of 'application blank'.
Each organization before going for the selection process develops their own standards
or potential attributes for the prospective candidates. This helps them also to define
the rejection standards. For example for the post of a stenographer, a particular
organization may define their rejection standards as below:
1. Those having shorthand speed below 100 words per minute and types speed below
40 words per minute.
2. Those who are not having any working experience.
3. Those who are above 35 years age.
By checking 'Application Bank' of the candidates, an organization may reject a good
number of applicants based on the above rejection parameters. All the above
processes, therefore, enable the organization to short-list the candidates before going
ahead with the subsequent stages of selection. The rejection standards, like the ones
stated above, may also be mentioned in the advertisement itself so that the number of
applicants is minimized. Some organizations also adopt the 'successive-hurdles'
technique as an effective screening process. This technique calls for arranging all
selection factors in order of importance. For example, if for a particular post, aptitude
test is considered most important, the first step should be to test the aptitude of the
candidates, then the other successive tests, like qualification, job experience,
personality etc. may be conducted provided the candidates qualify these hurdles one
by one.
102 Review of Application Blanks
Resource and
Logistics Management at Airports The application blank form is designed to have detailed information about the
applicants. Some organizations have their own printed application blank, while others
ask the candidates to give their particulars in a standard format to elicit information
like.
(a) Personal data and biographical Information, i.e., name, address, telephone
number, age, sex, marital status, children, nationality, education (school, college,
university attended, degree/diploma passed, year of passing, subjects, grade or
division obtained etc.), professional qualification and membership of professional
bodies, language known (ability to read, write and speak) etc.
(b) Chronological employment history for all jobs (with joining and leaving dates in
each case of employment change), employer's name, address and nature of
business positions held and duties, reason for leaving (if any).
(c) Personal circumstances, whether prepared to serve anywhere or not.
(d) Medical history, brief details of any serious illness, remained absent for how many
days during the last few years (in case the applicant served earlier somewhere) on
medical grounds, record of hospitalization (if any), disability, major operation,
etc.
(e) Interest, hobbies, sports and other activities.
(f) Anything else which the applicant may like to add in support of his candidature.
Several other items may be included in the application blank on the specific
requirements of the organization and the job. Weighted application blanks are also
prepared by some organizations to record personal history items associated with job
success. For each item of the application blank, weight factors are predetermined. The
importance of weight factors for different jobs also varies. For example, for unskilled
labourer's job, education may be given less weight, while for executive positions,
education receives higher weightage. Application blank, therefore, helps in comparing
the applications.
Reference Checking
Some organizations ask for references from the applicants in the application blank
itself to get information on a candidate's character and antecedents. Such references
are preferred from earlier employers and schools/colleges/universities that have some
acquaintance with the candidates. Organizations try to verify candidates’ antecedents
from the references either over phone, through correspondence or through personal
visits. Most of the organizations send a brief questionnaire to such references along
with a confidential note, requesting them to furnish such details.
Psychological Testing
Generally, psychological testing is used for purposes like, determining training needs
and evaluation of training programmes, selection and placement, transfer and
promotion, counselling. However, such testing is primarily used for selection and
placement. Such tests are of different types such as group or individual tests,
instrumental tests, aptitude or achievements tests, personality and interest tests, etc.
Group tests are designed to test a group of candidates simultaneously. Individual tests
are for individual candidates at a particular point of time. Instrumental tests can be
group tests or individual tests. When it is an individual test, it makes use of different
tools to study candidate's familiarity and skills. But in case of its application for a
group, it involves a written test or paper-pencil test to study the written responses of
the candidates.
Aptitude tests are intended to assess the potentiality of the applicants to learn the job, 103
while achievement tests enable us to assess how effectively an individual can perform Training in Aviation
his job. Conventionally, aptitude tests are administered on freshers, i.e. those who are
not having any past job experience, while achievement tests are intended for
experienced candidates. For marketing jobs and managerial and executive positions
such tests have much relevance. However, psychological tests are mostly designed to
measure the aptitude and skills of successful job performers. For selection and
placement, most of the organizations retain the services of consultants and experts for
psychological testing. This minimises the chance of error in selecting the wrong
candidates for different job positions. Since psychological testing is a complex method
and it has wide divergence, we have briefly introduced the concept of attitudinal
measurement with simple examples and illustrations together with some conceptual
details about different types of measurement and scales.
Defining Attitude
Attitude is a mental state of an individual who tends to act or respond or is ready to
respond for or against objects, situations, etc., with which his/her vested feeling or
affect, interest, liking, desire and so on, are directly or indirectly linked or associated.
During the course of development the person acquires tendencies to respond to
objects. These learned cognitive mechanisms are called attitudes. Changes in
knowledge are followed by changes in attitudes. Attitudes are different from
knowledge in a sense that attitudes are emotion-laden. Knowledge reinforces attitudes
and reinforced attitudes in the long run reinforce individual and group behaviour.
Hence, attitude is neither behaviour nor the cause of behaviour but it relates to an
intervening predisposition or a frame of reference which influences the behaviour of
an individual. When the interest, feeling, etc., of an individual is not connected in any
way with the object or situation, his/her responses (towards the said object or
situation) will then not be attitude but opinion. Attitudes or psychic states cannot be
observed because psychological variables are dormant or latent. Being covert, attitude
measurement is difficult. Inference, prediction from behaviour data, interviews with
structured questionnaires and scales are the usual tools for attitudinal measurement.
Attitude Survey
To recruit new incumbents and to evaluate the human relation in the factories,
industries and different organizations, attitude survey is indispensable. The study of
attitude is also important in designing a training programme, which is a core HRD
function. Attitude surveys focus on feelings and motives of the employees' opinions
about their working environments. There are three basic purposes for conducting
attitude surveys:
1. To compare results with other survey results;
2. To measure the effect of change that occurs; and
3. To determine the nature and extent of employee feelings regarding specific
organizational issues and the organization in general.
Usually attitude surveys are carried out by interviewing a person with a structured
close ended questionnaire. The skill of the interviewer is all important here for correct
measurement of attitude. While framing the questionnaire, the interviewer should be
cautious, as simple opinion-laden questionnaire items will not depict the attitude of the
interviewee. What is important is to put value-laden questionnaire items, use of
behaviourally anchored statements, asking the respondents to rank any myth
statements, etc. A sample list of such myth statements and value-laden questionnaire
items are given below:
104 Myth Statements
Resource and
Logistics Management at Airports 1. Hard work ensures better result.
2. Liking to work with subordinates for prompt results.
3. Never say no to anyone; listen to everybody's problems.
4. One who is indispensable is efficient.
5. Maintaining the hierarchical structure while taking decisions.
For measurement of attitude, we can use various statistical tools. Since attitudes are
psychological variables or qualitative variables, the first and foremost task for the rater
is to assign numerals to objects, events or persons. Use of Likert type of scale,
Thurstone scale, etc. helps the interviewer to assign numbers, either discrete or
continuous. Analysis of variance, correlation, chi-square test, Kendal's coefficient and
concordance test are some useful statistical tools for attitude measurement.
Changing attitudes, values and motivations are now the major issues before the
organizations. Through appropriate HRD interventions, organizations can turn such
change into advantages, ensuring quality of work life, keeping pace with the changing
human expectations. The following areas of attitudinal changes require HRD
intervention:
(a) Attitudes towards perceived threats to trade union legality and other large scale
efforts to reduce trade union power or cohesion;
(b) Attitudes towards methods of wage negotiations, whether by collective or local
bargaining;
(c) Attitudes towards working conditions and any administrative machinery for the
discussion or regulation of such conditions; and
(d) Attitudes towards worker training or promotion and towards education in general
as means of improving management and industrial skills.
7.4 INTERVIEW
In the literal sense of the word, an interview means a conversation with a purpose.
Such purposes are classified under three categories i.e., obtaining information from
the candidates, giving information to the candidates and finally motivating the
candidates. The first purpose is intended to get information from candidates regarding
their background, experience, education, training and interests to evaluate their
suitability as per the requirements of the organization. The second purpose is to
provide the candidates information regarding the organization, its philosophy,
personnel policies, etc. The third purpose is to establish a positive relationship to
motivate the prospective candidates to join the organization. However, all these
purposes being successive stages of interview, the subsequent stages will be followed
only when the interviewers are prima facie satisfied with the candidates in the first
stage. The human resource department of most of the organizations conduct
preliminary interview for the candidates. However, for subsequent interview, a
committee of executive is formed to select the right candidates. For managerial and
executive positions, organizations prefer to retain the service of consultancy
organizations with subject experts on the selection committee. There are different
types of interview as under:
(a) The Patterned Interview: This is also known as structured or standardized
interview. It is intended to assess the candidate’s emotional strength and stability,
industry, ability to get along well with others, self-reliance, willingness to accept
responsibility, motivation, etc.
(b) Indirect or Non-directive Interview: This type of interview is meant for helping 105
the candidates to feel relaxed and free to talk. Interviewers become listeners and Training in Aviation
allow the candidates to reveal their personality, in-depth knowledge in a free and
relaxed atmosphere.
(c) Direct Planned Interview: It is a simple question-answer session to ascertain the
suitability of the candidates.
(d) Stress Interview: This interview assesses the candidates' emotional balance under
a situation of tension and stress.
Such tension is, therefore, deliberately created by interruptions, provocations,
silence, criticism or even by firing questions. Interviewers in such a situation
deliberately become more unfriendly and even, at times, hostile. For selection of
executives, who are required to work under stress, such method is often adopted.
(e) Group Interview: This method is intended to assess the leadership ability of the
candidates. Generally, a topic is given to the candidates to discuss among
themselves. The interviewers remain in the background to assess the best leaders,
their initiative, poise, adaptability, awareness, interpersonal skills, etc.
(f) Panel or Board Interview: Several interviewers collectively interview a candidate
to rate his/her attributes. Generally, such a panel consists of several experts and
each of them interview a candidate only in those areas on which they have the
requisite expertise.
For conducting a successful interview, interviewers should be adequately competent
and trained. Interview should be conducted in a suitable place. It should be well
planned; job descriptions and information about the applicants should be adequately
studied. Interviewers should be free from any conceivable prejudice. Interviewees
should be allowed to feel relaxed, beginning and ending of an interview should be
made in a best possible friendly manner, etc.
The limitations of traditional selection process like failure to select the right persons
for the right jobs, too much emphasis on written tests and interview, resulted in the
development of psychometric method. This method enables us to quantify the
attributes, adding which we can select the candidates in order of their merit. Many
organizations today are making use of this method to ensure proper selection of their
employees.

1. Recruitment is a negative process.
2. Recruitment and selection are same topics.
3. Recruitment makes the candidate to rejects a company.
4. Selection is a positive process.
7.5 TRAINING AND CERTIFICATION OF PERSONNEL

Training is an important HRD activity which reinforces HRM in an organization.
Apart from the need for internal staffing, training enhances job related skills and also
facilitates acquiring of new skills required for averting skill obsolescence in an
organization. HRD is a macro concept and it consists of organized services of learning
activities within a given time limit for achieving desired behavioural changes in
people. From the organizational point of view, HRD is a process and it helps
106 employees to improve their functional capabilities for present and future roles. It also
Resource and
Logistics Management at Airports develops their general capabilities, harnesses their inner potentialities, and there by
facilitates for self and organizational development.
Discussions on training remain incomplete without linking the same to performance
appraisal. This is because performance appraisal is one single important tool, which
helps in deciding about training requirements for an organization and it reinforces
training activities. There are lot of misconceptions about training, education and
development functions vis-à-vis HRD, which we have clarified in the introductory
unit. Without precisely knowing the functions of training, education and development,
as pointed out earlier, it would make it difficult for us to appreciate the objectives,
roles and significance of training in an organization. Training may be defined as a
systematized tailor-made programme to suit the needs of a particular organization for
developing certain attitudes, actions, skills and abilities in employees irrespective of
their functional levels. Training, therefore, serves the following important purposes for
an organisation:
z To increase the performance level of an employee and to develop him/her in such
a manner that he/she can rise to the position of higher responsibility.
z To constantly develop manpower to meet the current as well as future needs of the
organization.
z To ensure effective utilisation of human resources.
z To integrate individual goals with the organization goals by creating a climate so
that an individual employee can best achieve his goals by achieving the goals of
the organization. To be more specific this is the stage of identifying employees
with the organization.
7.5.1 Need for Manpower Training

Most of the organizations prefer internal manning of positions than external hiring for
obvious motivational benefits and cost effectiveness. Even though training, prima-
facie, emphasizes on increasing the performance level of an employee, a continuous
training function enables the organization to develop employees for future responsible
positions in the organization itself. The needs for manpower training in an
organization may be categorized as follows:
z Updating Knowledge: Technological advancement, business environmental
changes and new management philosophies have now made it imperative for the
organization to renew and update the knowledge and skills of the employees so
that they do not become redundant for obvious functional incompetence. The first
and foremost need for manpower training therefore, is to renew and update
knowledge and skills of employees to sustain their effective performance and so
also to develop them for future managerial positions.
z Avoiding Obsolescence: Recent economic liberalization programmes of
Government of India are necessitating organizational restructuring, which inter
alia, calls for training the employees, irrespective of their functional level, for
their redeployment in restructured jobs. Therefore, the second important need for
training is to avert functional obsolescence.
z Improving Performance: Continuous training being required to renew and update
knowledge and skills of employees, it makes them functionally effective. The
third need is therefore, to make employees effective in their performance through
continuous training.
z Developing Human Skills: Apart from emphasizing on technical and conceptual
skills, new training programmes also emphasize on developing human skills of
employees. Such human skill is necessary for effective interpersonal relations and 107
sustaining healthy work environment. This need for training therefore also cannot Training in Aviation
be altogether ignored.
z Imparting Trade-specific Skills: In industrial employment, the convention is to
recruit workers and employees through compulsory apprenticeship training. Such
apprenticeship training enables an organization to impart industry and trade
specific skills to workers. This also, therefore, is an important need for manpower
training.
z Throughout the world the importance of training is now increasingly felt for
stabilizing the workforce to withstand the technological change and for making
the organization dynamic in this changed process. Management theorists now
unanimously agree that it is the responsibility of the organization to train and
develop their manpower as a continuous process.
7.5.2 Classification of Training Programmes

Depending on the functional level and occupational categories of employees, an
organization can classify training programmes as under:
Level Nos. Types of Training

1. Workers
(i) Introduction
(ii) Job Training
(iii) Craft Training
(iv) Special-purpose Training
2. Supervisors
(i) Induction
(ii) Foremanship/Shop floor Supervision
(iii) Manpower Management
3. Staff Members
(i) Introduction
(ii) Professional
(iii) Technical
(iv) Human Relations
4. Managers and Executives
(i) Induction
(ii) Executive Training
(iii) Training in Executive Development
Apart from the above routine training programmes for different levels, training on
total quality awareness and training encompassing all aspects of total quality
management have now become almost compulsory for all functional levels.
7.5.3 Steps for Designing the Training Programme

Traditionally, training needs identification is done by the HRD department. Which to
keep pace with organizational requirements identifies a series of training modules for
108 different categories of employees and publishes such training calendars to circulate
Resource and
Logistics Management at Airports among different departments to depute their employees for such training courses.
Depending on the facilities available, some of these training courses are also offered
utilizing in-house training faculty, while for others (where expertise is not available)
such training may either be offered by retaining professional trainers or by deputing
employees to attend some outside training courses. However, to ensure better
utilisation of employees' acquired knowledge and skill, identification of training needs
are now being left with the respective departmental heads, who because of their
proximity with the employees concerned can better suggest the training and
development needs. Hence, right at the beginning of the year, HRD department
circulates the format for suggesting training requirements of different departments,
which after necessary processing, are developed as training calendars. The heads of
the departments through performance appraisal, job evaluation and keeping in mind
future requirements (due to change of technology, etc.), may identify such training
requirements and also study the cost-benefit aspect closely monitoring employees'
post-training performance. Incidentally, it has now also become one of the important
corporate practices in line with ISO Certification requirement. The following steps are
involved in designing the training programme.
z Selecting Strategies: The first step is to choose a strategy or strategies for training
methods. Strategies prioritise training objectives and also help in selecting training
areas which may be skill formation, developing conceptual understanding, etc.
z Breaking Objectives: The second step in to break the general training objectives
into different parts like, knowledge, understanding and skills. Each constituent
part of the training objective is matched with appropriate training events.
z Choosing Methods: The next step is to use specifications for different training
methods to decide over time the facilities required for the programme as a whole.
z Deciding on Packages: The fourth step is to decide different package in which
programmes could be offered. An organization at this stage considers different
training packages, keeping in view the time and cost aspects.
z Designing the Programme: The final step is to design the training programme.
7.5.4 Sequence of a Training Programme

Any training programme should follow the order of sequence of actions, as under, to
make it effective.
z Designing the programme and matching with the learning process.
z Matching the programme to the organizational expectations.
z Developing the training group.
z Identifying the themes of training and development.
z Achieving consistency in training.
7.5.5 Need for a Training Policy

To ensure consistency in Training and Development Function, the HRM department
of each organization develops a suitable training policy, defining the scope, objective,
philosophy and techniques. Such a training policy, inter alia, serves the following
purposes.
z It defines what the organization intends to accomplish through training.
z It indicates the type of persons to be responsible for training functions.
z It identifies the formal and informal nature of training.
z It spells out the duration, time and place of training. 109
z It indicates the need for engaging outside institutions for training. Training in Aviation
z It embraces and includes training in relation to labour policies of the organization.

Fill in the blanks:
1. Recruitment is a ………………… process.
2. Recruitment and selection are very important in any …………………
process.
3. Training is given to employees for ………………… the skills.
4. Training is improves the ………………… of employees.
7.6 LET US SUM UP

Recruitment is an important tool for procuring and effectively using human resources
in an organization. While recruitment involves employing suitably trained work force,
selection helps in choosing the right candidate for the right job. Induction and
placement is putting the men to the right jobs. This unit focuses on these four
important organizational activities. Recruitment from universities and management
institutes are effected through campus interviews. Almost all good private
organizations select their management trainees through such method.
Training reinforces HRM in an organization. In this era of technological change and
global competitiveness, organizations are constantly required to renew and update
skill of their people or else they are likely to encounter the problem of manpower
obsolescence, which among others, will call for frequent downsizing or rightsizing.
Training helps to address the skill-gap.

Study the recruitment policy of the organization. Assume you were asked to develop a
training programme to improve customer sales skills. What training techniques would
you use? Why?
7.8 KEYWORDS
Application Blank: It is a written form completed by job aspirants detailing their
educational background, previous work history and certain personal traits.
Apprenticeship: A training method that puts trainees under the guidance of a master
worker, typically for 2-5 years.
Case: An in-depth description of a particular situation an employee might encounter
on the job.
Counselling: The discussion of an employee’s problem with the general objective of
helping the worker cope with it.
Development: Activities that prepare an employee for future responsibilities.
Education: Conceptual learning that improves understanding of a subject/theme.
Employee Referral: A recommendation from a current employee regarding a job
applicant.
110 Executive Development: The process in which executives acquire not only skills and
Resource and
Logistics Management at Airports competence in their present jobs but also capabilities for future managerial tasks of
increasing difficulty and scope.
Executive Search: Hiring search firm/head-hunter to track candidates.
Gate Hiring: A process where job seekers (generally blue collar employees) present
themselves at the factory gate and offer their services on a daily basis.
Induction: Introduction of a person to the job and the organization.
Interview: The oral examination of candidates for employment.
Job Instruction Training: Training received directly on the job.
Job Rotation: Moving a trainee from job to job to provide cross training.
Layoff: A layoff entails the separation of the employee from the organization for
economic or business reasons.
Management Game: It is a learning exercise representing a real-life situation where
trainees compete with each other to achieve specific objectives.
Mentoring: An experienced employee offering guidance and support to a junior
employee so that the later learns and advances in the organization.
On-the-job Training: Any training technique that involves allowing the person to
learn the job by actually performing it on the job.
Placement: Actual posting of an employee to a specific job, with rank and
responsibilities attached to it.
Promotion: Movement of an employee from a lower level position to a higher level
position with increase in salary.
Recruitment: The discovering of potential applicants and prompting them to apply for
actual or anticipated organizational vacancies.
Resignation: A voluntary separation initiated by the employee himself.
Retirement: Termination of service on reaching the age of superannuation.
Role Playing: A training method involving the creation of training facilities separate
from the regular production area but with the same equipment.
Selection: The process of picking individuals who have relevant qualifications to fill
jobs in an organization.
Simulations: Any artificial environment that tries to closely mirror an actual
condition. These include case studies, decision makings, role plays, etc.
Test: A standardized, objectives measure of a sample of behaviour.
Training: Activities that teach employees how to perform their current jobs.
Transfer: A lateral movement within the same grade, from one job to another.

1. Briefly explain the steps involved in hiring human resources in an organisation.
2. What are the various sources of recruitment? How can an organisation evaluate
the worth of these sources?
3. Discuss the relative merits and demerits of internal and external sources of
recruitment.
4. What do you mean by selection? Explain the process of selection in a modern 111
organisation. Training in Aviation
5. Write short notes on the following:
(a) Personality Tests
(b) Achievement Tests
(c) Application Blank
(d) Assessment Centre
6. Define ‘training’. Distinguish between training, development and education.
Explain the various methods of training.
7. ‘Training programmes are helpful to avoid personnel obsolescence’. Discuss.
8. What do you mean by executive development? Discuss the various methods of
executive development.
9. State the importance of executive development, keeping the Indian conditions in
mind.
10. Explain the terms ‘placement’ and ‘induction’. Outline their objectives.
11. What are the components of an employee induction programme? What measures
should be taken to make the induction programme successful?
12. ‘Employee selection in India is a process of elimination and not an evaluation.’
Comment.
13. Mega Corp consists of a group of companies which manufacture and market
diverse products including textiles, sugar, tyre and pharmaceuticals. The policy of
the group has been to recruit management trainees from various engineering and
management institutes. As an In-charge of recruitment, how would you undertake
this task?
14. What are the principles to be kept in mind while developing a sound employee
training programme?
15. ‘Human Resource Development is nothing but looking at the development of
manpower of an organization in the light of its requirements.’ Do you agree with
this statement? Give reasons for your answer.
16. Do you think that the recent liberalization programme of the government of India
has made training function more important for an organization? Elaborate your
answer duly suggesting important training areas in the context of changing
environment.

CYP 1
1. True 2. True
3. True 4. False
CYP 2
1. Negative 2. Positive
3. Improving 4. Skills and talent
112
Resource and 7.10 SUGGESTED READINGS
Michael Armstrong, A Handbook of Human Resource Management Practice, 10th edition,
Kogan Page Publishers.
Robert Wood & Tim Payne, Competency-Based Recruitment and Selection, 1st edition, Wiley.
P L Rao, Comprehensive Human Resource Management, 2nd edition, Excel Books.
113
LESSON Financial Planning and
Budgeting in Aviation
8
FINANCIAL PLANNING AND BUDGETING IN
AVIATION
CONTENTS
8.1 Introduction
8.2 Goals of Establishing a Resource Management System
8.2.1 Fundamentals of Airlines Operations
8.3 Airport Financial Accounting
8.3.1 Liability Insurance
8.3.2 Airport Liability Coverage
8.3.3 Operating Revenues
8.4 Budgeting in Aviation
8.4.1 Types of Budget
8.4.2 Zero-Based Budgeting in Airlines ZBB
8.4.3 Advantages of Zero-Based Budgeting
8.5 Base of Airline Budget Process
8.6 Airline Budget Approach
8.7 Activity Based Budget
8.8 Process of Activity Based Cost Analysis
8.8.1 Some Examples of Cost Reduction in ABC Budgeting
8.9 Budget Checklist
8.10 Budget Consolidation
8.11 Planning and Administering an Operating Budget
8.12 Let us Sum up
8.14 Keywords

z Describe the role of financial management in aviation
114 z Identify the role to establish a resource management in aviation
Resource and
Logistics Management at Airports z Identify the budgeting in aviation
8.1 INTRODUCTION
In today’s rapidly changing airport business environment, challenges have continued
to increase for IT infrastructures because of the widening variety of hardware,
operating systems, software packages, database platforms, development tools, and
communication protocols. Increasingly, the air traffic market requires greater
efficiency in the deployment of resources. To ensure that the capacities of check-in
desks, departure Lounges, gates, aircraft stands, baggage carousels, staff and
equipment are available as needed; airports require comprehensive information
around-the-clock on the expected resource demand and on the current traffic and
allocation situation.
8.2 GOALS OF ESTABLISHING A RESOURCE

MANAGEMENT SYSTEM
The objective is to enable the check-in process, capacity control and dispatch of
flights to be done more efficiently, than it is possible by manual methods and at least
economically. The deploying of a Resource Management System will help airports to
achieve the following business goals:
z Optimizing the current resources
z Providing an overview of the resource allocations covering the entire day
z Maximizing the runway and airport capacity
8.2.1 Fundamentals of Airlines Operations

z Identifying and alerting of potential bottlenecks and providing conflict resolution;
z Attracting new traffic by offering off-peak service and pricing package for low
cost carriers;
z Cutting workload of scheduling managers in optimizing handling capacities;
z Allowing user modifications to accommodate the airport specific business
processes by flexible maintenance of business rules;
z Enhancing the overall service quality (punctual departures, cost competitiveness
and reliability);
z Optimizing the cost of operation by levelling the resource utilization and enabling
an effective process control for all aircraft turnaround on the airport;
z Consequently growing the top line income, and optimizing revenue. Furthermore
by implementing a Resource Management System airports will no longer need to
store the same data on a number of different systems, that is why it is a basic step
in the information system integration process.
Resource Management System Functionality: A Resource Management System
supports the scheduling of flights, check-in desks and associated departure lounges, all
stands from the pier-served stands to remote stands, gates, baggage carousels, together
with staff and mobile equipment. There are five main modules commonly attached in
a typical Resource Management System:
1. Check-in Allocation Module:
Ticket Desks
Flight Check-in 115
Financial Planning and
Common Check-in Budgeting in Aviation
2. Gate Allocation Module:

Gates (including their associated departure lounges)
Arrival Gates
Departure Gates
Passenger Hold Room
Control of Boarding
Control of Doors
Stands (pier-served stands and remote stands)
Remote Stands
Hangar Positions
3. Baggage Allocation Module:
Baggage Carousels
Explosive Detection Devices
4. Staff Allocation Module
5. Equipment Allocation Module
A Resource Management System has to include capability to allocate manually all
these resources but the airport can benefit of added functionality from these
applications as listed hereinafter.
The vast amount of property, infrastructure, and labour that is required to operate,
maintain, and improve airports requires significant levels of financial resources. Such
resources are realized through a number of strategies available to airport management.
With each source of funding available to airports, however, come rules and policies
that determine which strategy airport management may employ to cover a portion of
the airport's cost burdens. Airport expenses may be described as falling into two types:
capital improvement expenses and Operation and Maintenance (O&M) costs.
Operation and maintenance costs consist of those expenses that occur on a regular
basis and are required to maintain the current operations at the airport. Such expenses
typically include wages and salary of airport employees, costs of utilities such as
power, water, and telecommunications, and a broad spectrum of regularly needed
supplies, from individual airfield lights to office supplies. Capital improvement
expenses, on the other hand, are very large, periodic expenses which contribute to
significant airport infrastructure improvement or expansion. Capital improvement
expenses include the costs of major construction projects such as airfield and terminal
expansion, the acquisition of major utilities such as air rescue and fire fighting
vehicles, and the purchase of land for future expansion. In general, revenues from the
operation of the airport are used to cover the airport's O&M expenses. To manage the
balance of operating revenues and expenses, financial accounting is typically
employed.
8.3 AIRPORT FINANCIAL ACCOUNTING

The nature of airport expenses depends upon a number of factors including the
airport's geographic location, organizational setup, and financial structure. Airports in
warmer climates, for example, do not experience the sizable snow removal and other
116 cold weather-related expenses that airports in colder climates must face. Some
Resource and
Logistics Management at Airports municipalities, counties, or local authorities absorb the costs of certain staff functions,
such as accounting, legal, planning, and public relations. Certain operating functions
such as emergency service, policing, and traffic control might also be provided by
local fire departments and local law enforcement agencies at some airports. In
addition, the ever-changing demand characteristics of passengers, service
characteristics of air carriers and other aircraft operators, as well as aircraft,
navigation, communication, and information technologies affect the need to invest in
projects involving airport capital improvements. Airport accounting involves the
accumulation, communication, and interpretation of economic data relating to the
financial position of an airport and the results of its operations for decision-making
purposes. It differs from accounting procedures found in business firms because
airports vary considerably in terms of goals, size, and operational characteristics. As
such, it is very difficult to derive a unified accounting system that can be used by all
airports. A system tailored to the needs of a large commercial airport might be
impractical for a small GA airport or vice versa. Many airports have different
definitions of what elements constitute operating and non-operating revenues and
expenses and sources of funds for airport development.
A good accounting system is needed for a number of reasons:
z Financial statements are needed to inform governmental authorities and the local
community regarding details of the airport's operations.
z A good accounting system can assist airport management in allocating resources,
reducing costs, and improving control.
z Negotiating charges for use of airport facilities can be facilitated.
z Financial statements can influence the decisions of voters and legislators.
z Operating expenses can be divided into four major groupings: airfield, terminal,
hangars, cargo, other buildings and grounds, and general and administrative
expenses.
Operating Expenses
Operating and maintenance expenses associated with the airfield area include:
z Runways, taxiways, apron areas, aircraft parking areas, and airfield lighting
systems maintenance
z Service on airport equipment
z Other expenses in this area, such as maintenance on fire equipment and airport
service roads
z Utilities (electricity) for the airfield Operating and maintenance expenses
associated with the terminal include:
Buildings and grounds-maintenance and custodial services
Improvements to the land and landscaping
Loading bridges and gates-maintenance and custodial services
Concession facilities and services
Observation facilities-maintenance and custodial services
Passenger, employee, and tenant parking facilities
Utilities (electricity, air-conditioning and heating and water)
Waste disposal (plumbing)-maintenance 117
z Equipment (air-conditioning, heating, baggage handling)- maintenance Operating Budgeting in Aviation
and maintenance expenses associated with hangars, cargo facilities, other
buildings and grounds include:
Buildings and grounds-maintenance and custodial services
Improvements to the land and landscaping
Employee parking-maintenance
Access roadways-maintenance
Utilities (electricity, air-conditioning and heating, and water)
Waste disposal (plumbing)-maintenance
General and administrative expenses include all payroll expenses for the maintenance,
operations, and administrative staff of the airport. Other operating expenses for
materials and supplies are included under general and administrative expenses.
Airports also often incur non-operating expenses including the payment of interest on
outstanding debt (bonds, notes, loans, etc.), contributions to governmental bodies, and
other miscellaneous expenses. In addition, some airports compute depreciation on the
full value of facilities including federal and other aid, whereas other airports limit
depreciation to only their share of the construction costs.
8.3.1 Liability Insurance

An increasingly large percentage of airport expenses are derived from required
insurance to cover various areas of liability. Airports and their tenants have the same
general type and degree of liability exposure as the operator of most public premises.
People sustain injuries and damage their clothing when they fall over obstructions or
trip over concealed obstacles, and their automobiles are damaged when struck by
airport service vehicles on the airport premises. Claims from such accidents can be for
large amounts, but claims stemming from aircraft accidents have even greater
catastrophe potential. The occupants of aircraft might be killed or severely injured and
expensive aircraft damaged or destroyed, not to mention injury to other persons or
other types of property at or near an airport. Liability in such instances can stem from
a defect in the surface of the runway, from the failure of airport management to mark
obstructions properly, or failure to send out the necessary warnings and to close the
airport when it is not in usable condition.
Airports and their tenants are liable for all damage caused by their failure to exercise
reasonable care. The principal areas in which litigation arises can be summarized
under three main headings:
z Aircraft Operations: Liability to tenants and the general public arising out of
aircraft accidents, fuelling, maintenance and servicing, and rescue efforts.
z Premises Operations: Liability to tenants and the general public arising out of
automobile and other vehicle accidents, elevators and escalators, police and
security enforcement, tripping and falling, contractual obligations, airport
construction, work performed by independent contractors, and special events such
as air shows.
z Sale of Products: Liability to tenants and the general public arising out of
maintenance and servicing, fuelling, and food and beverage services.
Airport operators require that all tenants purchase their own insurance as appropriate
for their particular circumstances and with certain minimum limits of liability.
118 Generally, the airport operator is included as an additional insured under the tenant's
Resource and
Logistics Management at Airports insurance coverage; however, this does not relieve the airport operator from securing
its own liability protection under a separate policy. The comprehensive coverage and
limits of liability needed by most major airports far exceed what is required by the
average tenant.
8.3.2 Airport Liability Coverage

The basic airport premises liability policy is designed to protect the airport operator
for losses arising out of legal liability for all activities carried on at the airport.
Coverage can be written for bodily injury and property damage. A number of
exclusions apply to the basic policy, and consequently the insuring agreements must
be amended to add certain exposures. By endorsement, the basic contract can be
extended to pick up any contractual liability the airport might assume under various
agreements with fuel suppliers, railroads, and so forth. Elevator liability and liability
arising out of construction work performed by independent contractors might also be
covered. The basic policy can also be extended to provide coverage for the airport that
sponsors an air show or some other special event. For those airports engaged in the
sale of products or services, the premises liability policy can provide coverage for the
airport's products liability exposure. Aircraft accidents arising out of contaminated
fuel originally stored in airport fuel storage tanks or even food poisoning from an
airport restaurant would be examples. Aircraft damaged while in the care, custody, or
control of the airport for storage or safekeeping can be covered by extending the
premise's liability policy to provide hangar keepers coverage.
The growth of aviation and airports during the past 30 years has increased the
industry's exposure to liability claims. Airports invest thousands of dollars in
purchasing adequate insurance coverage and limits of liability to protect their
multimillion-dollar assets. The courts have consistently held airport operators
responsible for the safety of aircraft and the public as well as for the issuance of
proper warning of hazards. In many cases, municipalities have not been immune, with
courts determining that the operation of an airport is a proprietary or corporate
function rather than a government responsibility.
8.3.3 Operating Revenues

Similar to operating expenses, airport operating revenues can be divided into five
major groupings: airfield area, terminal area concessions, airline leased areas, other
leased areas, and other operating revenue. The airfield or airside of the airport
produces revenues from sources that are directly related to the operation of aircraft:
z Landing fees for scheduled and unscheduled airlines, itinerant aircraft, military or
governmental aircraft
z Aircraft parking charges in hangars and on paved and unpaved areas
z Fuel flowage fees from FBOs and other fuel suppliers
z Terminal concessions include all of the non-airline users of the terminal area:
z Food and beverage concessions (includes restaurants, snack bars and lounges)
z Travel services and facilities (includes checkrooms and lockers, flight insurance,
restrooms, car rentals and telephones)
z Specialty stores and shops (includes boutiques, newsstands, banks, gift shops,
clothing stores, duty-free shops, etc.)
z Personal services (includes beauty and barber shops, valet shops, and shoeshine 119
stands) Budgeting in Aviation
z Amusements (includes video arcades, movie and TV rooms, and observation
decks)
z Display advertising
z Outside terminal concessions (includes auto parking, ground transportation, hotels
and motels)
Airline leased areas include revenue derived from the air carriers for ground
equipment rentals, cargo terminals, office rentals, ticket counters, hangars, operations,
and maintenance facilities. All of the remaining leased areas at the airport that produce
revenue are brought together under other leased areas. Freight forwarders, fixed-base
operators, governmental units, and businesses in the airport industrial area would be
included under this category. All revenue derived from non-airline cargo terminals
and ground equipment rentals to non-airline users would also be included. Other
operating revenue includes revenues from the operation of distribution systems for
public utilities, such as electricity and steam, and contract work performed for tenants.
Other miscellaneous service fees are also included under this category. Airports also
generate non-operating revenues, including interest earned on investments in
governmental securities, local taxes, subsidies or grants-in-aid, and selling or leasing
of properties owned by the airport but not related to airport operations. The magnitude
of non-operating income can vary considerably between airports.

1. The nature of airport expenses depends upon a number of factors
including the airport's geographic location, organizational setup, and
financial structure.
2. Budgeting in aviation is not necessary.
8.4 BUDGETING IN AVIATION

We may define budget as a plan or estimate of future income and expenses of an
activity covering a definite time period. Airline budget is slightly different from other
business types. Basically the number is purely statistics, percentage, or available
resources.
8.4.1 Types of Budget

There are many types of budgeting techniques available; however the following two
are very important to understand:
Incremental Budgeting: It is defined as the increase on the previous year percentage
or on a fixed value or converting it to a next year budget. For example, increase of
expense budget to the percentage of the next year increased planned sole by a
percentage.
Zero-based Budgeting: It may be defined as the process of building up the fresh
budget from zero, by evaluating the social, economic, business condition, and find out
the alternatives to arrive on real time expenses of revenues. For example, analysing
the expenditure based on the change in the market, cost effective and qualitative
alternatives.
120 8.4.2 Zero Based Budgeting in Airlines ZBB
Resource and
Logistics Management at Airports z ZBB I a technique of planning and decision making which reverse the working
process of traditional budgeting.
z In traditional increment in budgeting, departmental manager justify increase over
the previous period year budget and what has been already spent is already
sanctioned.
z By contrast, in ZBB, every department function is reviewed comprehensively and
all expenditure must be approved, rather than only increase.
z No reference is made to the previous level of expenditure. Zero-based Budgeting
requires the budget request be justified in complete details by each division
manager starting from the zero-base.
z The zero-base is indifferent to whether to the total budget is increasing or
decreasing.
8.4.3 Advantages of Zero-Based Budgeting

Technological Changes: Aviation is the field of advance technology, automation
brought huge amount of reduction in manual tasks. High tech equipment and service
are added to operation and infrastructure. This will change the behaviour of operating
cost.
Cost Effective alternatives: AS mentioned in the previous point, Many cost effective
alternatives are available in airline operation. In ZBB business managers will prompt
to think cost effective alternatives.
Changes in the Economic Conditions: While thinking about ZBB, department
manager can consider the possible socio-economic conditions.
Activity Based Cost (ABC) Analysis: During ZBB in order to justify the expenditure
business manager will run through the activities through which we can find out the
items of high cost impact and the mentioned of controlling the cost.
8.5 BASE OF AIRLINE BUDGET PROCESS

Operating Plan: This is a kind of blue print of future operation somewhat like a
production plan. This is the first step towards airline budget. The types of frequency of
operation, and types of aircraft are used. Available seat for sale, capacity to carry
cargo will be available on it. The whole set of cost will be linked to the operating plan.
Revenue Projection: Revenue projection will be done based on the available seats and
expected load factor with an average price per ticket per class per sector. This also
should consider the revenue adjustment from the Customer Loyalty Programs.
Revenue projection should include the ancillary revenue from onboard sales, souvenir
shops, other incentives and commissions on marketing etc.
Capital Commitments: CAPEX commitments are in huge numbers typically in
airlines. This will have a huge impact on the financial budget. CAPEX such as
Aircraft purchases, pre-delivery payments. Engine purchase, rotables (asset under
rotation), spares and stocks, etc. are few examples.
8.6 AIRLINE BUDGET APPROACH

In an airline set up we can initiate budget process in two lines, centralized budget and
department budget. Below are the examples of the certain cost elements can be
considered in each group.
Centralized Budget 121
z Airport charges Budgeting in Aviation
z Handling charges
z Overflying/Navigation
z Catering
z Fuel and Technical
z Manpower and Crew cost
z Taxes and Insurance
z Foreword Depreciation
Departmental Budget
z Admin Expenses
z Temp Manpower
z Telephone utilities
z Departmental CAPEX
z Local Taxes
z Projects
z Other expenditures
8.7 ACTIVITY BASED BUDGET

Activity based budgeting is an approach to the budgeting process that focuses on
identifying the costs of activities that take place in every area of a business or
organization, and determining how those activities relate to one another. The data
regarding those activities and how they relate to one another is used to establish goals
that allow the organization to move forward. By understanding the relationship
between all the activities of the organization, it is often possible to create realistic
budgets for each department that are more equitable and in the best interests of the
company in the long run.
The concept of activity based budgeting is different from the process known as cost-
based budgeting. Often, the cost-based approach relies on assessing the actual
expenditures connecting with a previous budgetary period, and simply adjusting those
amounts based on the current rate of inflation, or to account for changes in the amount
of revenue generated. By contrast, activity based budgeting is more concerned with
what is being done within the organization, how those actions or activities work
together, and then allocating funds to each activity based on how much it will cost to
successfully complete those activities.
8.8 PROCESS OF ACTIVITY BASED COST ANALYSIS

8.8.1 Some Examples of Cost Reduction in ABC Budgeting
Ground Power Unit
z Is fixed power unit available?
z Is it cost effective to use APU?
122 PAX Bus
Resource and
Logistics Management at Airports z Is it possible to get a nose-bay and aero bridge?
Office Space
z Optimum utilization of existing space
Manpower
z Is it cost effective to outsource?
8.9 BUDGET CHECKLIST

z Publish the annual operating with all required details
z Publish customized templates to the user departments
z Publish the budget approval process
z Publish budget approval process
z Publish budget guidelines and policies
z Common assumption to be used across the board
z Projected FOREX rates
z Timelines
8.10 BUDGET CONSOLIDATION

Budget consolidation is a tiresome work since the whole cost center/location budget
should bring into one single report to arrive on the performance. If you are doing any
adjustments during the consolidation time, do it correctly on the base sheet, Not ON
THE FINAL REPORT. Analyse the final number by using ratios and airline statistics.
Budgetary Control 123
Budget without budgetary control have no use. It is quite simple in automated ERP Budgeting in Aviation
environment. Budget/MIS Department should get involved in the spending process
before any unpleasant things happen in the year end. Monthly variance analysis should
be forwarded to the cost center managers to explain the variance. Considering the
recurrent changes in airline operation, it will be good to have periodical budget
reviews.
8.11 PLANNING AND ADMINISTERING AN OPERATING

BUDGET
Planning an operating budget is an integral part of airport financial management.
Every airport must make short-term decisions about the allocation and scheduling of
its limited resources over many competing uses; it must make long-term decisions
about rates of expansion of capital improvements and funding sources. Both short-
term and long-term decisions require planning.
Planning is important because it:
z Encourages coordinated thinking. No one department can act independently.
z A policy decision in a particular department affects the airport as a whole.
z Helps develop standards for future performance. Without plans, the airport's
measure of financial performance can be based only on historical standards.
Although past operating statements help to set these standards for the future, they
should not necessarily serve as standards themselves.
z Assists management in controlling the actions of subordinates. By planning,
employees are provided a goal or standard to achieve.
z Might help reveal potential problems for which remedial measures can be taken
earlier.
z Promotes smoother-running operations. For example, new equipment can be
ordered in advance of its anticipated usage.
With smooth, uninterrupted operations, the overall efficiency of the airport can be
increased. Once the airport has decided upon a plan of action for the future, these
plans are incorporated into a written financial budget. Budgets are simply the planned
dollar amounts needed to operate and maintain the airport during a definite period of
time such as a year. Budgets are established for major capital expenditures such as
runway resurfacing, taxiway construction, and new snow removal equipment as well
as for operating expenses during the planning period.
In an airport maintenance department, there are labour expenses and a variety of other
expenses for supplies, minor equipment purchasing and repair, and mechanical
systems maintenance. The real expenses incurred during the year are a measure of the
actual performance. The difference between actual expenses and the budgeted amount
is called a variance. The variance measures the efficiency of the department. Airports
generally operate under one of three different forms of budget appropriation: lump
sum appropriations, appropriation by activity, and line-item budgeting.
A lump sum appropriation is the simplest form of budget and generally only utilized
by small GA airports. There are no specific restrictions as to how the money should be
spent. Only the total expenditure for the period is stipulated. This is the most flexible
form of budgeting. Under an appropriation by activity form of budget, appropriated
expenses are planned according to major work area or activity with no further detailed
breakdown. Appropriation by activity enables management to establish capital and
124 operating expense budgets for particular areas such as airside facilities, terminal
Resource and
Logistics Management at Airports building area, and so forth. It also permits flexibility in responding to changing
conditions.
The line-item budget is the most detailed form of budgeting, used quite extensively at
the large commercial airports. Numerical codes are established for each operating and
capital expense item. Budgets are established for each item and often adjusted to take
into consideration changes in volume of activity. For example, as the number of
passenger enplanements changes, budgets for the terminal building maintenance can
be adjusted accordingly. A very popular approach to budgeting at many airports is the
zero-based budget. The zero-based budget derives from the idea that each program or
departmental budget should be prepared from the ground up, or base zero for each
budget cycle. This is in contrast to the normal budgeting practice, which builds on the
base of a previous period. By calculating the budget from a zero base, all costs are
newly developed and reviewed entirely to determine their necessity. Various programs
are reviewed and costed thoroughly and then ranked in degree of importance to the
airport. Managers are presumably forced to look at a program in its entirety rather than
as an expense add-on to an existing budget. In drawing up a budget, the first step
normally involves an estimate of revenues from all sources for the coming year. The
next step is to establish budgets for the various areas of responsibility.
When budgets are being investigated, predetermined, and integrated, the department
managers who must live within the budgets are consulted about the amount of money
available and help draw up budgets for their departments for the coming period. A
manager who has some say about the budget and expenses is more inclined to make an
added effort to keep down the actual expenses of the department. Actual expenses are
then checked against budgeted expenses frequently during the period that the budgets
are in effect. Managers are supplied with figures of actual expenses so that they can
compare them with budgeted expenses and investigate variances.

Fill in the blanks:
1. The nature of airport expenses depends upon a number of factors
including the airport's ………………… location, organizational setup,
and financial structure.
2. Airport accounting involves the…………………, …………………, and
interpretation of economic data relating to the financial position of an
airport and the results of its operations for decision-making purposes.
8.12 LET US SUM UP

Financial planning of an airport is not a static activity. Continuous planning and
management is required to adapt to the changing levels in demand, needs for
maintaining and improving facilities, and especially the changing levels of revenues
and other funding available to the airport.

Organize a debate on “Financial planning of an airport is not a static activity”.
8.14 KEYWORDS
Operation and Maintenance Costs (O&M): Those expenses that occur on a regular
basis and are required to maintain the current operations at the airport.
Operational Activity Forecasts: Includes forecasts of operations by major user 125
categories (air carrier, commuter, general aviation, and military). Budgeting in Aviation

1. Briefly describe budgeting in aviation.
2. What is airport accounting?

CYP 1
1. True 2. False
CYP 2
1. Geographical location 2. accumulation, communication

Antonín Kazda and Robert E. Caves, (2007), Airport Design and Operation, Emerald Group
Publishing.
Jaroslav J. Hajek, Jim W. Hall and David K. Hein, (2011), Common Airport Pavement
Maintenance Practices, Transportation Research Board.
Manuel Ayres (Jr.), (2007), Safety Management Systems for Airports: Guidebook,
Transportation Research Board.
126
Resource and
UNIT V
129
LESSON Logistic Management at
Airport
9
LOGISTIC MANAGEMENT AT AIRPORT
CONTENTS
9.1 Introduction
9.2 Introduction to Warehousing
9.2.1 Concept of Efficient Warehousing
9.3 Role of Warehousing
9.3.1 Need for a Warehouse
9.3.2 Types of Warehouses
9.4 Licensing of Warehouse in India
9.5 Trends in Materials Handling Global Supply Chain
9.5.1 Network Forces
9.5.2 External Forces
9.6 Quality and Total Quality Management
9.6.1 Total Quality Management
9.6.2 The Primary Elements of TQM
9.7 TQM in Improving the Logistic Performance
9.8 Let us Sum up
9.10 Keywords

z Discuss the characteristics of warehouse management
z Describe the role of total quality management
z Identify the competency requirements to gain the competitive edge in the market
9.1 INTRODUCTION
Logistics is the backbone of supply chain that plans and coordinates the delivery of
products and services to the customers all over the world. According to definition of
Council of Logistics Management it is defined as “Logistics is that part of supply
130 chain that involves planning, implementing and controlling the most efficient and
Resource and
Logistics Management at Airports effective movement and storage of goods, services and its related information from
point of source to the point of consumption for the purpose of customer confirming
their requirements”. Thus this definition clearly defines the scope of logistics which
extend beyond transportation and it includes all activities that involve procurement,
material handling, and packaging beside distribution network design. Logistics can be
also defined as a business planning framework for the management of material,
service, information, and capital flows. It includes the increasingly complex
information, communication and control systems required in today’s business
environment (Logistix Partners Oy, Helsinki, FI, 1996). Logistics has been performed
since the beginning of civilization: it is similar to old saying “old wine in a new
bottle”. However implementing the best practice of logistics has become one of the
most exciting and challenging task in manufacturing and service sector.
Supply Chain Management

According to the Council of Supply Chain Management Professionals (former Council
of Logistics Management): “Supply Chain Management is the systematic, strategic
coordination of the traditional business functions and the tactics across business
functions within a particular company and across businesses within the supply chain
for the purposes of improving the long-term performance of the individual companies
and a supply chain as a whole” (CSCMP 2005). Here Supply Chain Management
(SCM) can be best described as the natural extension of the downsizing (right-sizing)
and re-engineering performed by the organization(s) in the past. Downsizing and re-
engineering transformed the enterprises into “lean and mean competitive units”, by
cost cutting and process simplifications. These operations (of downsizing and re-
engineering) involved the “optimization” (in terms of the number of persons involved,
the time taken, the complexity of the work etc.) of business “units” (functional and/or
administrative domains) over which the organizations had full control. These
strategies did lead to increased productivity and profitability of the organizations but
as the benefits of these levelled off, it was realized that the approach to the way
organizations work needed to be changed. The above changes were a by-product of
the “isolationist” (closed system) world picture of the enterprises involved in the full
value chain; with organizations (the system) trying to survive in an hostile
environment; assuming that all other participants in the value chain were adversaries
with whom the organization must compete, even though the operations performed by
the separate organizations may be supplementary in nature rather than complementary.
The realization that this world picture was an impediment to the growth of
organizations prompted the enterprises to start seeking “strategic alliances” with other
organizations. The formation of these alliances required a basis (a common ground)
which would be acceptable to each and every partner in the alliance. This common
basis is/was supplied by the participation of the organizations in the value chain (the
demand supply chain). The participants in the chain, suppliers, subcontract suppliers,
in house product processes, transportation, distribution, warehouses, and the end
customer, generally, perform mutually exclusive tasks and thus do not compete
directly with each other.
Based on the Product: Relationship matrix Cooper and Slagmulder (1999, p.10)
distinguished four key decisions and activities areas in the integrated supply chains,
such as:
z Configuration of product and network, which covers the decisions concerning the
main rules of cooperation,
z Formation of the production network, mainly the choice of production facility and
warehousing locations as well as their capabilities,
z Product design with involvement the research and development abilities of 131
Logistic Management at
suppliers, Airport
z Process optimization in order to reduce cycle times and inventory level in the
cost-effective way. The traditional role and place of small firms within integrated
supply chains was mostly limited,
z Delivering raw-materials, parts or modules for the final goods producers,
z Delivering customer goods to wholesalers or selling small quantities of this goods
to the final customers,
z Providing transportation and forwarding services,
z Manufacturing goods and providing other services for market niches which are
considered as not enough profitable for big companies (also as a subcontractor),
z Trading under well-known brand name of large distribution networks
(franchising).
9.2 INTRODUCTION TO WAREHOUSING

Manufacturers were able to recognize the fact that the customer needs are required to
be fulfilled as soon as he is asking for the product in order to retain him. This
perspective of storage created a tendency to consider warehouses "a necessary evil"
that added costs to the distribution process and that resulted in creation of operating
expenses with little appreciation of the broader logistical spectrum in which
warehousing played a vital role. Warehousing capability used to group products into
assortments desired by customers was given little emphasis. Internal control and
maximum inventory turnover received little managerial attention. Literature of the
early era correctly described the situation. Firms seeking to operate effectively
between points of procurement, manufacturing, and consumption gave little attention
to internal warehouse operations. The establishment of warehouses was essential for
survival, but little emphasis was placed on improving storage and handling
effectiveness. Engineering efforts were centred on manufacturing problems. Operation
of early warehouses illustrated the lack of concern with material handling principles.
The typical warehouse received merchandise by rail car or truck. The items were
moved manually to a storage area within the warehouse and hand-piled in stacks on
the floor. When different products were stored in the same warehouse, merchandise
was continually lost. Stock rotation was handled poorly. When customer orders were
received, products were handpicked for placement on wagons. The wagons or carts
were then pushed to the shipping area where the merchandise was reassembled and
hand-loaded onto delivery trucks. Because labour was relatively inexpensive, human
resources were used freely. Little consideration was given to efficiency in space
utilization, work methods, or material handling. Despite their shortcomings, these
early warehouses provided the necessary bridge between production and marketing.
9.2.1 Concept of Efficient Warehousing

A warehouse is typically viewed as a place to store inventory. However, in modern
logistical system designs, the role of the warehouse is more properly viewed as a
switching facility as contrasted to a storage facility. Warehouses, in fact, are the nodes
of the supply chain network that extend the operational reach of the firm and provide a
strategic thrust to its objectives. Nearly all industries use warehouses to store goods. It
would be inconceivable to move goods such as agricultural commodities, lumber and
wood products, and aluminium, etc., from one location to another, without warehouse
facilities. Warehouses are also essential to importers. A large number of jobs are
dependent on such trade. Warehouses are utilized by retailers and wholesalers for the
132 goods that they buy and sell. Manufacturers also use warehouses to store raw
Resource and
Logistics Management at Airports materials and finished products. By locating warehouse facilities in different parts of
the world, firms can expand beyond their own local markets. The use of warehouse
facilities gives small firms the opportunity to grow without large capital investments
and one warehouse can service many small firms. Warehouse activities are significant
in a variety of industries involving transportation services, wholesaling, agriculture
and retailing. In 2004, the money that was spent on the different components of
logistics was estimated to be about $1130 billion in the United States. Out of this,
nearly 10 per cent was spent on warehousing. Though the value of money spent on
warehousing is declining, yet this amounts to a significant amount. In the context,
warehousing becomes very important.
9.3 ROLE OF WAREHOUSING

A planned space for the efficient accommodation and handling of goods and materials
is known as a warehouse. The word warehouse commonly denotes physical processes
of material handling, stocking, as well as underlying methodologies. It is also a
segment of an enterprise’s logistics function that is responsible for storage and
handling of inventories.
9.3.1 Need for a Warehouse

1. To provide an adequate buffer storage against inequalities caused by unpredictable
variations in supply and demand.
2. This helps a company to guard against loss of production.
3. To ensure production in economic batch sizes.
4. To provide marketing backup by maintaining the availability of spares and
adequate service levels, and at times.
5. To provide a speculative hedge against anticipated inflation.
6. To safe guard stock from damage, deterioration and unauthorized removal by
providing an environment which is appropriate to the material being stored.
7. To record accurately receipts, stock holding, and dispatches.
8. To provide an efficient communicational interface with all appropriate parts of the
system that is being served.
9. To enhance company’s goodwill with efficient warehouse handling systems.
9.3.2 Types of Warehouses

1. Private warehouse
2. Public warehouse
3. Bonded warehouse
4. Leased warehouse
5. Production-centred warehouse
6. Market-centred warehouse
7. Intermediately-centred warehouse
8. Warehouse in motion
9. General merchandise warehouse
10. Refrigerated or cold storage warehouse 133
11. Special commodity warehouse Airport
12. In-bonded warehouse

13. Open bonded warehouse
14. Free trade zones
15. Combination warehouses
There are various types of warehouses as mentioned above. We will discuss only few
of them in detail:
Private Warehouse
A firm with a large and stable enough demand to fully utilize the facility will own a
private ware house to achieve low warehousing cost. This arrangement provides
greatest direct control over operations. Private ware houses often interconnect with
regional offices and service centres. There are two varieties in private warehouses on
the basis of operations:
1. Plant or base warehouse
2. Distribution centre warehouse or decentralized warehouse
Plant warehouses are integral part of the plant facilities. Their primary function is to
receive products from the end of the assembly line and store them till they are shipped
to the distribution centre warehouse. A distribution centre warehouse is primarily
established for movement of goods rather than for storage. It typically serves regional
markets, consolidates large shipments from different points of production, and
regroups products into customers’ orders.
Public Warehouse
A company wishing to have warehouse facilities in a market area with too small a
demand to justify a private ware house can rent space in a public ware house. Such
independent operations provide professional management of all the functions normally
undertaken by a private warehouse and offer the rental flexibility by changing
according to the amount of work done and the amount of space required typically on
the basis of month by month commitments. This arrangement reduces the risk of the
owner who rents it. The use of public warehouse space is a particular advantage to a
firm whose requirements may change due to seasonal demand or shifting markets.
Leased Warehouse
A distinct variation of a private warehouse is the construction of a dedicated
customized facility that is leased to the firm. Leased facility provides greater
flexibility with no fixed investment.
Bonded Warehouse
Distributors often use a special type of ware house that enables them to produce,
transfer, and store products without having to pay excise taxes and duties on them.
These are the warehouses licensed by government to various parties. It is a legally
secured repository, stored generally for transshipment and consolidation. It could be
public or private.
134 In-bond Warehouses
Resource and
Logistics Management at Airports The in-bond warehouses are businesses that bring in imported merchandise in tourist
shops that sell for export or sell the merchandise which is directly exported. The most
common example is an inbound warehouse which sells liquor at the airport.
Open Bonded Warehouses

Open bonded warehouses are premises where imported goods and materials are
processed and manufactured into other products. These new products are then
exported or applicable duties are collected.
9.4 LICENSING OF WAREHOUSE IN INDIA

Suitable for proper storage of the class of goods intended to be stored.
z The applicant must be competent to conduct such a warehouse.
z Fulfil any other conditions that the state government may notify from time to time.
z Pay the fees prescribed for the issue of a license and also furnish security.
z Under the state warehouses acts, a warehouseman takes such care of the goods
stored with him as a man of normal prudence would take of his own goods.
z Warehouseman must keep his warehouse clean and in a hygienic condition, and
take all the necessary precautions against rats, pests, etc.
z Compulsorily insured against damage by fire, floods, theft or any other accident.
Warehouse Management Systems (WMS) are best described as the advanced
technology and operating processes that optimize all warehousing functions. These
functions typically begin with receipts from suppliers and end with shipments to
customers, and include all inventory movements and information flows in between.
Warehouse management systems have typically been associated with larger, more
complex distribution operations. Small, noncomplex distribution facilities have
historically not been viewed as candidates to significantly streamline operations and
reduce costs. However, even smaller and midsize companies are increasingly
recognizing the significance of warehouse management systems in today’s
environment of integrated logistics, just-in-time delivery, and e-commerce fulfilment.
In practice, successful WMS solutions are generally designed to merge computer
hardware, software, and peripheral equipment with improved operating practices for
managing inventory, space, labour, and capital equipment in warehouses and
distribution centres. Implementation of a WMS allows a company to increase its
competitive advantage by reducing labour costs, improving customer service,
increasing inventory accuracy, and improving flexibility and responsiveness. A WMS
enables a company to manage inventory in real time, with information as current as
the most recent order, shipment, or receipt and any movement in between.
WMS (Warehouse Management Systems) Benefits

z Faster Inventory Turns: A WMS can reduce lead times by limiting inventory
movement and improving the accuracy of inventory records, thereby supporting a
JIT environment. As a result, the need for safety stock is reduced, which increases
inventory turnover and working capital utilization.
z More Efficient Use of Available Warehouse Space: In addition to reducing
safety-stock requirements, a WMS can often increase available warehouse space
by more efficiently locating items in relation to receiving, assembly, packing, and
shipping points. This increased efficiency can both improve productivity and 135
lower inventory holding costs significantly. Airport
z Reduction in Inventory Paperwork: Implementation of a real time WMS can
significantly reduce the paperwork traditionally associated with warehouse
operations, as well as ensure timely and accurate flow of inventory and
information. Receiving reports, pick tickets, move tickets, packing lists, etc.,
which are typically maintained as hard copies, can all be maintained
electronically.
z Improved Cycle Counting: Companies can use WMS to capture relevant data
(e.g., frequency of movement, specific locations, etc.) to systematically schedule
personnel for cycle counts. Such cycle counts not only can improve the accuracy
of inventory records for planning purposes, but also can eliminate or reduce the
need for complete, costly physical inventories.
z Reduced Dependency on Warehouse Personnel: Implementing a comprehensive
WMS facilitates standardization of inventory movements, picking methods, and
inventory locations. This standardization helps to minimize reliance on informal
practices, resulting in reduced training costs and lower error rates.
z Enhanced Customer Service: By streamlining processes from order to delivery,
companies can more accurately determine product availability and realistic
delivery dates. A WMS can automatically identify and release back-ordered
inventory and also can reduce returns as a result of increased shipment accuracy.
z Improved Labour Productivity: A WMS helps optimize material flow, typically
by incorporating several inventory picks into one or by “cross docking”. Cross
docking is a process that routes incoming shipments to the location closest to the
outbound shipping dock, thereby reducing warehouse handling.
Advantages for WMS Users

WMS can help management to access an instant picture of:
z how much inventory exists in the warehouse;
z how many orders are currently being shipped;
z what are the stages of processing of pending orders;
z staff productivity details; and
z goods shipped by the warehouse over any given period of time
The warehouse management can determine how much inventory exists in the various
stages of processing unlike in non-automated warehouse management. Sales people
can determine how much inventory is available and can relate better to the warehouse
staff thus bettering their Customer Relationship levels. Customer Managers can
reserve inventory for a customer thereby ensuring that it will not be shipped to anyone
else. Inventory Managers can track transactions at a very fine detail to diagnose
unexpected sudden changes in inventory. For example, if we had thousands of pieces
of some SKU yesterday and today we don’t have any, then where did they go? Were
they shipped to some other customer? Were they sent to some other warehouse of the
company to be shipped from there? Or did they get lost or were picked away? WMS
helps answering such problems. The reports generated during checking processes
enable policy decision to be taken about the reliability of the suppliers. WMS is
designed to be flexible i.e., the process flow of the DC/Warehouse can now be
modified easily as business needs change.
136 1. For Warehouse Supervisors: Productivity reports for each operator can now be
Resource and
Logistics Management at Airports generated and used to implement productivity based remuneration schemes or to
fire unproductive employees. For those warehouses that have to come up with
Union problems these reports can help the company tremendously. Efficient
tracking of warehouses activities are possible with WMS as it provides a
comprehensive set of web-enabled reports detailing all the activities happening in
the warehouse and their effect on the inventory management. WMS also helps to
detect bottlenecks in operations, which can increase the overall throughput of the
warehouse.
2. For Warehouse Operators: WMS provides Graphical User Interfaces (GUIs)
wherein most of the time the operator has to just scan the barcodes. Default
navigation of cursor on the screen mimics the standard business rule. Thus WMS
eases the operator’s task and makes the data input process fast, increasing the
overall efficiency of the operator. Some programs like Locating and Pulling are
especially designed to run on hand-held radio frequency terminals. These
terminals make the task of pickers and locators easy, as these are easy to carry.
Modern WMS programs have been coded with extra emphasis on scanner based
data input to minimize the need for keyboard or mouse input.
Industrial Relations
Industrial relations is now one of the most serious and difficult problems of recent
industrial sector. The progress of the Industry is difficult without cooperation of
labours and pleasant relationships. So, it is beneficial to all to maintain and create
good relationship between labour and management.
The relationships that arise at and out of the place of work normally comprise the
relationships between workers and their employer, the relationships employers and
workers, the relations between individual workers, and the relationships between
employers, have with the organizations formed to promote their corresponding
interests, and the relations between those organizations, at all levels. Industrial
relations also comprises the processes through which these relationships are conveyed
and the management of conflict between employers, workers and trade unions, when it
arises.
9.5 TRENDS IN MATERIALS HANDLING GLOBAL

SUPPLY CHAIN
Coyle and others (2003, p. 308) define materials handling as “efficient short-distance
movement that usually takes place within the confines of a building such as a plant or
a warehouse and between a building and a transportation agency”. From time to time
the term materials management is being used in the industry. Actual materials
management seeks to reduce the materials handling and simultaneously makes
effective use of time and space. Coyle and others (2003) state that the general
objectives of materials handling are:
z effective and safe working conditions;
z enable effective overall logistics flow;
z maximize warehouse or terminal capacity;
z minimize manual labour;
z minimize non-storage or stacking space (e.g., aisle space);
z reduce costs;
z reduce the number of handling times;
The work associated with materials handling can be done by physical labour, or by the 137
help of simple or refined equipment. Present global logistics environment is Airport
categorized by growing complication and a number of important parameters
determining the global environment. The promptness of change of these constraints is
spectacular and is pouring increasing complication in the logistics ecosystem. We
have categorized these deviations as “trends”, in that they remain re-shaping the
logistics landscape, and offer an unstable set of environmental risks and limitations
that either limit decisions, or otherwise present chances which nimble enterprises are
able to exploit rapidly. We initiate it by telling the major tendencies that are impacting
organizations, and follow up with some of the crucial strategies that popular
organizations are using to cope with or even exploit these developments.
We have grouped the top six trends into two sets of related forces, network and
external forces.
9.5.1 Network Forces

Network forces is defined as the changes that are taking place inside an organization’s
vertical and horizontal network, that comprises customers, suppliers, and LSPs that
work through the global value chain system. The major network forces can be
categorized as follows:
1. The marketing experts have increased the customer expectation because of which
these expectations are being transferred to the manufacturers. Logistics service
workers are worried to deliver more and more customer-particular delivery
solutions so that they can meet a multiple of customer demands. E-commerce is
also driving growing fragmentation of supply chain networks, making more
difficult job of logistics workers to meet these requirements. Working clienteles
want it “my way”, and are keen to change brands and suppliers on short notice if
they find someone proposing a “better deal”. Companies must have high quality,
low cost, supple delivery, reliable presentation, and maintainable low-carbon
solutions on top of it to keep customers happy.
2. These days organizations have proved to be a very important part of the
networked economy. As these expectations increases, enterprises in the supply
chain are finding that their destiny is progressively entangled with others in the
system. The old “arm’s length” model of negotiating and challenging others in the
vertical and horizontal network are no longer workings. In its place, companies
are learning that they must cooperate with each other with international associates
to survive. Product industrialized and service supply are no longer stand-alone
capabilities, but are progressively bundled into a single set of abilities required by
customers. As corporations cannot be “all things to all people”, they must be well
aware of working with not just customers and suppliers, but in some cases, other
opponents as well.
3. Cost burden is and will continue to be “alive and well”! That is, customers “want
it all” – customer service, logistics ability, product innovation, and most of all –
low cost. Customers don’t want to pay a premium for services, mainly logistics
following and visibility abilities. The probability is that enterprises may offer
comprehensive visibility as part of their product and service offering. Cost
pressure is also being driven by Government pricing regulation drives the cost
pressure, low-cost country imports from global opponents, and new forms of
reasonable pressures from ecommerce and other sources.
138 9.5.2 External Forces
Resource and
Logistics Management at Airports External forces characterize changes that are not happening in the network, but are
determined by other non-network components over which organizations have little to
control.
1. Globalization of logistics networks is growing day by day. As companies continue
to grow their global impression, global networks are tense with challenges due to
the force of the government regulatory forces, channel fragmentation, and poor
logistics infrastructure. A growing risk of supply chain interruption from any
number of probable nodes along the supply chain further make difficulties in the
logistics environment.
2. The most serious concern on the horizon for worldwide organizations is the
forthcoming talent deficiency in global source or supply chains. This will not
happen, just in a manual processes, but also in managerial competence. Supply
chains cannot work without people, still organizations are identifying that they
face critical gaps in the number of vacant job requirements and this deficiency is
growing with every day.
3. Volatility of the ecosystem is the “new normal”. Volatility is defined as the major
changes in customer demand size, product or service mix, government
regulations, new competitors, substitute products, short product life cycles, and
necessities for speedy network nodal alterations and restructure. It appears as if
enterprise change is now a constant event, as organizations are constantly
adjusting and re-inventing their working model in the face of nonstop global
change. The pace and scale of this change is unmatched in the previous eras.
9.6 QUALITY AND TOTAL QUALITY MANAGEMENT

The definition of quality is determined by the role of the people defining it. Most of
the customers face difficulty in defining quality, but they know it when they see it. For
example, even though you perhaps have a belief as to which company of athletic shoes
offers the utmost quality; it would possibly be challenging for you to express your
quality standard in specific terms. Also, your friends or relatives might have different
thoughts for the quality of shoes that the athlete need. The problem in describing
quality exists irrespective of product, and this is right for both manufacturing and
service organizations. Think about how tough it may be to define excellence in quality
for products such as airline services, child day-care facilities, college classes, or even
OM textbooks. Moreover the issue gets complicated as the meaning of quality has
changed over time to time. Nowadays, there is no particular universal definition of
quality. Some people view quality as “performance to standards”. Others view it as
“meeting the customer’s needs” or “satisfying the customer.” Quality can be defined
on the basis of following parameters:
Conformance to Specifications
It measures how accurately the product or service achieves the targets and tolerances
set by its designers. For example, the measurements of the part of the machine may be
listed by its design engineers as 3 _ .05 inches. This indicates that the target dimension
is 3 inches however the dimensions can fluctuate between 2.95 and 3.05 inches.
Likewise, the wait for hotel room service may be given by 20 minutes, but there may
be a usual delay of an extra 10 minutes. Also, think about the amount of light
delivered by a 60 watt light bulb. If the bulb delivers 50 watts it does not fit in to the
specifications. As these examples illustrate, conformance to specification is directly
measurable, though it may not be directly related to the consumer’s idea of quality.
Fitness for Use 139
It emphases on how well the product accomplishes its proposed utility or use. For Airport
example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition
if one considers transportation as the intended function. On the other hand, the
definition becomes more specific and assumes that the proposed use is for
transportation on mountain roads and carrying fishing gear, the Jeep Cherokee has a
more fitness for use. You can also see that fitness for use is a user-based definition in
that it is intended to meet the needs of a specific user group.
Value for Price Paid

It is a definition based on the quality that consumers frequently use for product. This
is the only definition that pools economics with consumer standards; it thought that
the definition of quality is price sensitive.
Support Services
It is described on the basis of how the quality of the product or the service is going to
get judged. Quality does not put on to the product or service itself, but it is it also
applies to the people, processes, and organizational environment linked with it.
Psychological Criteria
It is a particular definition that takes our attentions on the judgmental estimation of
what establishes product or service quality. Different parameters help in the
evaluation, such as the atmosphere of the environment or the supposed prestige of the
product. For example, a patient in the hospital receives average health care, but a very
approachable staff may leave the impression of high quality.
9.6.1 Total Quality Management

A core definition of total quality management (TQM) describes a management
approach to long-term success through customer satisfaction. In a TQM effort, all
members of an organization participate in improving processes, products, services,
and the culture in which they work. The methods for implementing this approach
come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards
Deming, Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran.

1. Licensing for warehousing in India is not required.
2. TQM is an irregular process.
3. Logistics management and the supply chain management have reduced
the quality of the services provided by the service sector.
9.6.2 The Primary Elements of TQM

Total quality management can be considered as a management system for the
organization that focuses on the customer which involves all employees in continuous
improvement. It uses various plans, data, and actual communications to incorporate
the quality work into the culture and activities of the organization.
140 Customer-focused
Resource and
Logistics Management at Airports The customer eventually controls the level of excellence. No matter what the
organization have to do to improve the quality – training employees, incorporating
quality into the design process, upgrading computers or software, or buying new
measuring tools – the customer determines whether the efforts were worthwhile.
Total Employee Involvement

All employees work together to attain a common objective. Total employee
commitment can only be achieved once they feel that they are free to do the job as
they like, when employees enjoy empowerment, and management gives a proper
working environment. High-performance work systems incorporate nonstop
development struggles with standard business processes. A self-managed team is a
one form of empowerment.
Process-centred
A fundamental part of TQM focuses on process thinking. A process is a sequences of
stages that take feedbacks from suppliers and changes them into outputs that are
supplied to customers (again, either internal or external). The steps essential to carry
out the procedure is defined, and performance methods are regularly monitored in
order to detect unpredicted variation.
Integrated System
Even though an organization may be made up of many diverse useful spheres
frequently structured into vertically designed departments, it is the horizontal
processes connecting these purposes that are the focus of TQM.
z An integrated business system may be demonstrated after the Baldrige National
Quality Program criteria and incorporate the ISO 9000 standards. Every
organization has an exclusive work values and ethics, and it is almost intolerable
to accomplish quality in its products and services unless a good class culture has
been adopted. Thus, a combined system unites business progress elements in a try
to frequently progress and exceed the hopes of customers, employees, and other
stakeholders.
z Micro-processes add up to larger processes, and all processes combined into the
business courses needed for defining and implementing policy. Everyone must
recognize the vision, mission, and guiding philosophies as well as the quality
guidelines, objectives, and critical processes of the organization. Business
performance must be checked and communicated constantly.
Strategic and Systematic Approach

A serious part in the quality management is the strategic and systematic approach to
attaining the goal, mission, vision and to gain the competitive edge in the competing
market. This process is defined as the strategic planning or strategic management that
comprises the making of a strategic plan that incorporates quality as a core
component.
Continual Improvement
A chief thrust of TQM is repetitive procedure improvement. Constant improvement
pushes an organization to be both logical and imaginative in finding methods to
develop more competitive and more effective policy at meeting shareholder
expectations.
Fact-based Decision Making 141
With the purpose of identify how well an organization is working, information on Airport
performance measures are needed. TQM need that an organization frequently
accumulate and examine data so as to improve decision making accuracy, achieve
consensus, and allow prediction based on previous data.
Communications
During the times of administrative changes, along with part of day-to-day functions,
real communications plays a great measure in preserving morale and in inspiring
employees at all levels. Communications consist of strategies, method, and timeliness.
9.7 TQM IN IMPROVING THE LOGISTIC PERFORMANCE

Industry frequently tries to deliver assessment added products and facilities with
improved customer satisfaction. Value addition and customer satisfaction has now
come out to be strategic missions as they drive businesses’ market segments in the
local and global marketplace. Logistics service areas play an important role in
founding value addition and customer satisfaction by the help of customized services.
Logistics outsourcing is also seen as a strategic change towards achieving essential
standards by bringing products and facilities to the right place at the right time and
cost.
Severe competition in several sectors comprising logistics securities the application of
Total Quality Management (TQM) system in logistics services for the improvement of
supply chains at local and global levels. Companies looking for logistics economics
may experience continuing improvement in their services efficiently through
proficient use of information system and teamwork.
TQM in product and service management plays an significant role in attaining value
addition and customer satisfaction by introducing affirmative changes in handling
restricted ‘7M’ (men, machines, materials, methods management, money, matrix and
motherland). Resources are optimized and used in the most effective manner both
qualitatively and qualitatively, thus proposing good returns for management. TQM
also improves management’s cultural values, thus facilitating to achieve excellence in
whole corporate governance. Thus TQM is the final strategic tool for ensuing
complete benefits in industrial and service industries.
The key areas of focus concerning TQM in logistics facilities for real supply chains to
achieve the tasks of logistics economics and globalization are:
z Cost Control and Service Improvement: Rapid and constant change is rocking
this traditionally stable area and management must to adapt for growth.
z TQM Benefits in Logistics: TQM benefits derived in terms of higher market
share, customer satisfaction, customer loyalty, etc.
z TQM Implementation in Logistics Services: Frameworks related to TQM
implementation in logistics services.
z TQM in Logistics Management Decisions: Various Decision Support System
(DSS), Multi-Criteria Decision Models (MCDM) and models based on soft
computing to aid logistics managers in decision making.
z TQM in Logistics Services Management: Excellence models in logistics
management for local and global logistics management.
142 Check Your Progress 2
Resource and
Logistics Management at Airports Fill in the blanks:
1. TQM stands for ………………….
2. ………………… is a type of warehouse.
3. TQM works on the basis of ………………… improvement.
9.8 LET US SUM UP

Warehousing refers to storing of the goods on large scale in a systematic and orderly
manner from the time they are produced until they are consumed. Warehouse
operations are becoming more and more complex. The Warehouse Control System
integrates the various functions and enables a better product flow. The managerial
question to consider is whether a specific handling system should be designed on a
mechanized, semi-automated, or information-directed basis. The initial cost of an
automated system will be higher than for one that is mechanized. An automated
system will require less building space, but the equipment investment will be greater.
The key benefit from automation is reduced operating cost. An automated handling
system, if properly designed and controlled, should outperform a mechanized system
in terms of labour, damage, accuracy, product protection, and rotation. In the final
analysis, the design to be used must be evaluated on the basis of return on investment.

Study the warehouse management of any two companies and conduct their
comparative analysis.
9.10 KEYWORDS
Distribution Centre: Warehouses where product storage is considered a very
temporary activity.
Economic Benefits: Economic benefits of warehousing materialise when overall
logistical costs are directly reduced by utilizing one or more facilities. It is not difficult
to quantify the return on investment of an economic benefit because it is reflected in a
direct cost-to-cost trade-off.
Private Warehouse: A private warehouse is operated by the firm owning the product.
The actual facility, however, may be owned or leased. The decision as to which
strategy best fits an individual firm is essentially financial.
Public Warehouse: The space that can be leased to solve short term distribution
needs.

1. Define warehousing. What are the different benefits of warehousing?
2. What are the different warehousing operating principles?
3. What are the various steps in making a warehousing strategy?
Check Your Progress: Model Answers 143
Airport
CYP 1
1. False 2. False
3. False
CYP 2
1. Total Quality Management 2. Private Warehouse
3. Continuous

Agrawal DK, Textbook of Logistics and Supply Chain Management, MacMillan India Limited,
2003.
Ailawadi C Sathish and Rakesh Singh, Logistics Management, Prentice Hall India, 2005.
Kent N. Gourdin, Global Logistics Management: A Competitive Advantage for the New
Millennium, Blackwell Publishing, 2006.
Sridhar R. Tayur (Editor), Michael J. Magazine (Editor), RAM Ganeshan (Editor),
Quantitative Models for Supply Chain Management, Kluwer Academic Publishers 1998.
144
Resource and
LESSON
10
AIR CARGO
CONTENTS
10.1 Introduction
10.2 Booking of Perishable Products
10.2.1 Humid (Wet) Cargo
10.2.2 Oil and Gas Industry
10.2.3 Live Animals
10.3 Cargo Handling and Its Types
10.3.1 Dynamic Role of Cargo Handling Systems
10.3.2 Control Capabilities
10.4 Types of Air Cargo Handling Systems
10.4.1 Types of Air Cargo Handling System
10.4.2 Automated Baggage Handling Systems
10.5 Types of Air Cargo
10.5.1 Dangerous Goods
10.5.2 Perishable Products
10.6 Cargo Tariff, Ratio and Charges
10.6.1 Cargo Tariff Rules
10.6.2 Qualified Acceptance of Shipments
10.6.3 Air Waybill and Shipping Documents
10.6.4 Application of Rates and Charges
10.6.5 Claim Procedure
10.6.6 Storage
10.6.7 Charges for Dangerous Goods
10.6.8 Priority Cargo Shipments
10.6.9 Refund Policy
10.6.10 System-wide Rates
10.7 Air Way Bill, Function, Validation, and Purpose
10.8 Let us Sum up
10.10 Keywords
145
10.0 AIMS AND OBJECTIVES Air Cargo

z Discuss the characteristics of air cargo handling
z Describe the types of air cargo
z Identify validation of the airway bill
10.1 INTRODUCTION
Air cargo service has become more attractive to shippers as aircraft capacity,
frequency of lifts, handling facilities and the number of locations serviced have been
increased. Air cargo losses can be controlled with the shipper as the key figure in
effective loss control. Recognition of the hazards involved, packing cargo to survive
the toughest leg of the journey and prudent selection of transportation services will
assist the shipper in realizing successful loss-free delivery of his or her goods.
Inadequate packing and improper marking of cargo are the leading causes of air cargo
losses. It is in these areas where the shipper can effectively influence the sound arrival
of goods.
10.2 BOOKING OF PERISHABLE PRODUCTS

Perishable cargo can be defined as goods that will deteriorate over a given period of
time or if exposed to adverse temperature, humidity or other environmental
conditions. Foodstuffs, plant materials, hatching eggs and medical supplies are typical
examples of perishable goods carried regularly as air cargo. In some cases, the term
"perishable cargo" will cover shipments, which are also classified as "live animals" –
typical examples are eels, lobsters, crabs, shrimp, and fish. It is essential that for these
shipments, the provisions of the IATA Live Animals Regulations be applied.
There are many characteristics of air cargo, which make it the preferred means of
transportations for perishable goods. The speed, reliability, economics and controlled
conditions of carriage by air provide the ideal method for exporters of perishable
commodities to service existing markets and develop new ones. However, the special
nature of perishable cargo calls for specials attentions to be paid to packaging,
handling and other aspects of the transportation process. To avoid risk of delay,
perishable shipments should travel as booked cargo. Shippers should be encouraged to
reserve space for all perishable consignments and to do this in sufficient time for the
airline to make whatever arrangements are necessary. Perishables should always be
sent on the most direct route, with fewest transit stops, thereby minimizing the elapsed
time and eliminating unnecessary climatic changes. When a transfer from one fight to
another is unavoidable, connecting times must be carefully considered as some
shipments may require temporary storage in a temperature-controlled area such as a
cool-room or freezer.
Perishable are the cargoes which initial state or availability can be deteriorated under
influence of temperature or humidity changes or delay in shipment. Perishable cargo
can include the following:
z Plants: Vegetables, fruits, berries and citrus plants;
z Original Meat Products: Chilled or smoked meat of birds and animals, fish,
seafood, eggs including incubatory eggs, caviar;
z Products after Processing: Oil, grease, frozen fruits and vegetables, sausages,
canned goods, meat produce, cheese, dairy produce;
z Live plants, flowers, saplings, tubers and seeds;
146 z Live fish material, fry and live caviar.
Resource and
Logistics Management at Airports z Preserved blood, vaccines, serum, medical and biological preparations, live
human organs and frozen embryos.
z Newspapers and magazines.
10.2.1 Humid (Wet) Cargo

Special cargo that contains liquids (except one which is determined as dangerous) are
among cargo which is defined as humid there can be the following: liquids in water
resistant containers, food packed by means of dry ice, fresh or frozen or chilled
meat/fish, seafood, vegetables which may evolve liquids and live animals. Oversize
and Heavy the Boeing B747 freighter was designed for the carriage of oversize and
heavy cargo. ABC has a great experience with the B747–its team handles this special
cargo safely and carefully. You are welcome to turn to us for advice on how to prepare
and palletize the cargo on suitable air pallets and to arrange for suitable trucking. Our
portfolio of deliveries of this type of cargo includes heavy generators and oil drilling
equipment, aircraft engines, propeller drive shafts and escalators, machinery and
vehicles.
10.2.2 Oil and Gas Industry

The oil and gas market is a key part of our business and is a sector that truly
appreciates the cargo carrying capability of the airline's B747 fleet. With an
impressive client list and proven track record achieved over the past year, ABC is one
of the 'first choice' partners to the oil and gas industry, regularly transporting
shipments of vital equipment for oil exploration sites, pipeline equipment and offshore
oil rigs.
The airline's cargo planning specialists will confirm the loading feasibility of a
specific shipment and advise the customer of all the additional information required.
Volga-Dnepr's operations team will analyses the best routing for the flight and assess
airfield data in order to create the right schedule to meet all of the customer's delivery
requirements. Experienced commercial staff around the world provide customers with
a clear and detailed costing for each flight or series of operations for project
movements and identify all of the transportation options available. The airline's cargo
planning specialists will confirm the loading feasibility of a specific shipment and
advise the customer of all the additional information required. Volga-Dnepr's
operations team will analyses the best routing for the flight and assess airfield data in
order to create the right schedule to meet all of the customer's delivery requirements.
10.2.3 Live Animals

The transportation of live cargo is governed by the IATA Live Animals Regulations
(LAR), as approved by the International Animal Health Code Commission of the
World Organization for Animal Health (Office International des Epizooties). Shippers
who want to ship live animals by air must comply with the IATA Live Animals
Regulations in their entirety, as well as any government regulations, which apply in
the countries of origin, transit and destination.
10.3 CARGO HANDLING AND ITS TYPES

With air traffic predicted to grow at an average rate of 8% per year, and in some areas
even up to 20%, the amount of air cargo flown around will also increase
tremendously. As a result, companies involved with air cargo face growing challenges
on how to organize this and how to get cargo from and to their customers safely and
on time. Planning a complex cargo handling system is more than just adding separate
items. Complete systems must be designed to make sure that pallets and containers are 147
Air Cargo
conveyed to the right place at the right time.
10.3.1 Dynamic Role of Cargo Handling Systems

Total world scheduled air cargo traffic, as reported by International Civil Aviation
Organization, experienced a sharp build-up in 1947 to 1951 and a growth of 100 per
cent in the decade of the 1950’s. This 1950’s growth coincided with the advent of
propeller aircraft capable of long haul, nonstop domestic and international service.
Another surge began in 1958 with the introduction of jet aircraft for passenger
operations; their belly capacity was such as to provide an enormous increase in
available lift capacity. However, air cargo traffic and revenues most clearly began to
respond when jet freighters (B-707F and DC-8F) entered service in 1963.
Airports of modern age experience a drastic growth in air traffics resulting in a large
increase of cargo volume. International Cargo Handling standards are also
continuously increasing. To cope with this situation is an ambitious goal for airports,
airlines and authorities.
10.3.2 Control Capabilities

Integrated control and information technology ensures that any degree of automation
can be achieved depending on customer requirements. Many companies use the
appropriate hard- and software solution, which guarantees fault-free tracking of the
cargo at any point of the material flow process.
Export Acceptance
z Process:
Tour planning
Truck dock management
Identifying and weighing cargo upon arrival
z Equipment:
Truck dock equipment
z Material Flow:
Unloading truck
Weighing shipments
Storing shipment in boxes
Import Delivery and Pick-up of Shipment

z Process:
Tour planning
Truck dock management
In-time retrieval of cargo to truck dock
z Equipment:
Truck dock equipment
z Material Flow:
Transportation of boxes to truck dock
148 Unloading of boxes
Resource and
Logistics Management at Airports Loading of truck
z Process:
Planning of build-up (selecting workstations for flight, build-up/emptying of
ULD’s/AWB’s for ULD loading)
Directing empty ULD’s/boxes to workstations
Labelling, weighing and storing of built-up ULD’s
z Equipment:
Workstations, scales, label printers, scanners, RF terminals, ETV’s, TV’s,
AEM
z Material Flow:
Build-up of ULD’s
z Flight Arrival Process:
Accept ULD’s for storage
Breakdown planning
Retrieve ULD’s to workstations
Identify shipment at break down
Restore empty ULD’s
Reconciliation of flight manifest
z Equipment:
TV, ETV, workstation, terminal, RF terminal, conveyor, ULD storage
z Material Flow:
Breakdown ULD’s
Shipments at Breakdown Area

z Process:
Finding appropriate storage location
Directing boxes to their destination
Tracking transportation of boxes
Cargo Handling
z Equipment:
AEM, BSS, S/R machine, conveyor
z Material Flow:
Store boxes for import
Retrieval of Cargo
z Process:
Preparing aircraft loading sequence
Retrieving ULD’s for aprons
Handling offload 149
Air Cargo
z Equipment:
ETV’s, interface conveyors, dolly trains
z Material Flow:
Moving ULD’s to staging area for aircraft loading
Loading aircraft
Pre-pack Truck Loading

Efficient ramp handling at landside is essential for a cost-effective cargo handling
operation. A strong increase in pre-packed air cargo demands efficient and safe
facilities. Many companies offers a wide range of truck dock systems ranging from
stationary dock lifts to complex movable machines with on-board weighing equipment
and ULD contour checking devices.
Build-up and Breakdown

Many companies pay maximum attention to safety at Build-up and Breakdown areas
and to all aspects of Man-Machine Interface (MMI).The design takes in account safety
measures such as working heights and provides safety skirts at all necessary positions,
i.e. decks are equipped with walkways. However, advanced air cargo facilities
additionally demand higher degrees of automation. Today usually, ETV’s, TV’s, etc.
are operated by computer systems without any human intervention. This ensures a
decrease of risks for the operators while increasing operational performance.
Unit Load Device (ULD) Transportation

Reliable and robust powered conveyors are the backbone of any cargo handling
system. Different types of air cargo require different treatment. Cooler rooms, freezer
facilities, perishable centres: any cargo centre we have built had special requirements.
Together with consultants, architects and operators many companies find the solution
for the needs of their customers: from manual operation to fully automated solutions,
from definition of the building interface to the operational requirements – our
experience works to your advantage. Product range provides conveying elements such
as roller desks, right-angle desks and turntables. In applications where floor space and
operational areas need to be maximised, special roller conveyors with drive-over
capabilities are available.
Storage of ULD’s and Pallets

A wide range of ETV’s, CSS-tacker cranes and BSS-Stacker cranes from our standard
product range are available to solve any storage requirements. Storage and retrieval
equipment is a very essential part of a cargo handling system – designed to operate 24
hours per day and 365 days per year. With the selection of components and structural
design, we achieve optimum availability and reliability of our equipment. From
manual operation through semi-automatic mode up to full-automated unmanned
operation – many companies have the control systems to maximise the efficiency of
their operation. We are a pioneer in the field of fully automated systems and apply
latest technologies such as optical positioning systems or frequency-controlled AC-
drives. Whether half-size units, 10 ft. or 20 ft. ULD’s, empty or fully loaded
containers and pallets are handled: Siemens Dematic has developed the appropriate
equipment in close liaison with terminal operators, airlines and consultants.
150 Mail Handling
Resource and
Logistics Management at Airports Sortation of mail trays, tubs, sacks and parcels, within strict flight deadlines, requires
every process be done quickly and with great accuracy. The total system solutions
integrate proven cargo handling equipment with high-speed sortation technologies.
The tilt tray sorter provides economical sortation for packages, mail pouches and
assorted containers from 1 to 110 pounds.
Items are transferred from infeed conveyors onto moving trays. At the appropriate
divert point, the trays tilt to gently discharge items onto chutes or take-away
conveyors. The cross belt sorter provides performance features unmatched by other
sortation technologies. The powered belt conveyor on each carrier provides positive
off-loading of each item resulting in faster sort rates and closer, more concentrated
divert points. This means more chutes can be concentrated in a small space reducing
the overall footprint of the system.
10.4 TYPES OF AIR CARGO HANDLING SYSTEMS

Key material handling can assist in designing and layout of a material handling
system. The new equipment or use existing components can help to expand a system.
Upgrades and Repair Services are also available. Following are the types of Air Cargo
Handling Systems:
10.4.1 Types of Air Cargo Handling System

Conveyor
Conveyor Decks are manufactured to handle the punishment seen in the Air Cargo
Handling Industry
z Heavy Duty Structural Steel
z 2½" × 11ga Galvanized Rollers
z 11/16" Hex Shafts
z Steel Sheet Enclosed Rollers for Safety
z Non-Skid Safety Coating on all Walking Surfaces
z Heavy Duty Pallet Stops
These units are designed to handle 96" × 125" Aluminium Skids Powered Roller
Options are available.
Ball Transfer Decks

Ball Transfer Decks are Heavy Duty units manufactured to handle continuous use and
abuse.
z 3/16" Steel Top Deck
z Heavy Duty Stainless Steel Balls
z Structural Supports between every Ball Transfer row
z Non-Skid Safety Coating on all Walking Surfaces
Ball Transfer Decks are manufactured in modular designs to enable configuring of a 151
Air Cargo
complete Material Handling System to suit individual needs.
Scissor Lifts
Scissor Lifts are Heavy Duty units with High Capacities.
z Container or Pallet Transfer on and off Trucks
z Build Up and Breakdown Stations
z Hydraulic Operation
z Roller Deck or Ball Mat Deck
z Edge of Loading Dock
z In-Ground Pit
Impact Bumper
Impact Bumpers are used at the transfer point of the system. These units take the
abuse of Slave Pallets or Containers affecting the system.
z Heavy Duty Laminated Rubber Bumpers
z 3/8" Steel Face
z Anchored to Floor with Wedge Anchors
z Welded to System
10.4.2 Automated Baggage Handling Systems

With a design team of more than 90 engineers and technicians, Automated Baggage
Handling Systems is a system integrator with all in-house technical expertise starting
with system design, including simulation, mechanical and electrical engineering. The
quality system is focussed on customer satisfaction with a strong emphasis on the
implementation of efficient and reliable processes to guaranty a timely delivery of a
system that will meet all customers' specifications. Following are the Automated
Baggage Handling Systems:
Automatic Baggage Drop-off Machine

As part of the evolution of airport check-in systems towards more fluidity and speed,
BAGXpress is an automatic baggage drop-off machine. The design is based on a
patented, innovative concept defined by Aéroports de Paris with the intention of
offering better service to passengers. BAGXpress is outstanding when compared to
other automatic baggage drop-off systems. It is able to process a high number of
passengers per hour, requiring only a short time to process each bag. BAGXpress can
process up to 120 bags per hour.
Conveyor Systems and Carousels

A full range of baggage handling conveyors (check-in, collector, transport conveyors)
is designed to meet the demanding specifications of airports. Carrousels based on
Caterpillar, friction drives and linear drives. The main references include Paris CDG,
Lyon St. Exupery, Basel-Mulhouse, Abidjan and Istanbul.
152
Resource and 10.5 TYPES OF AIR CARGO
Following are the categories of Air Cargo:
10.5.1 Dangerous Goods

Dangerous goods are articles or substances which are capable of posing a risk to
health, safety, property or the environment and which are shown in the list of
dangerous goods of IATA Dangerous Goods Regulations. Some dangerous goods
have been identified as being too dangerous to be carried on any aircraft under any
circumstances; others are forbidden under normal circumstances but may be carried
with specific approvals from the States concerned; some are restricted to carriage on
all cargo aircraft; most however, can be safely carried on passenger aircraft as well,
provided certain requirements are met. Packaging is the essential component in the
safe transport of dangerous goods by air. The packing instructions normally require
the use of performance-tested specification packaging, however these are not required
when dangerous goods are shipped in Limited Quantities under the provisions of
Limited Quantity "Y" Packing Instructions. The quantity of dangerous goods
permitted within these packaging is strictly limited by the Regulations so as to
minimize the risk should an incident occur. The proper declaration of dangerous goods
by the shipper ensures that all in the transportation chain know what dangerous goods
they are transporting, how to properly load and handle them and what to do if an
incident or accident occurs either in-flight or on the ground. The pilot-in-command
must know what is on board the aircraft in order to properly deal with the
emergencies, which may occur. Dangerous goods can be transported safely by air
transport provided certain principles are strictly followed.
10.5.2 Perishable Products

Perishable cargo can be defined as goods that will deteriorate over a given period of
time or if exposed to adverse temperature, humidity or other environmental
conditions. Foodstuffs, plant materials, hatching eggs and medical supplies are typical
examples of perishable goods carried regularly as air cargo. In some cases, the term
"perishable cargo" will cover shipments, which are also classified as "live animals" –
typical examples are eels, lobsters, crabs, shrimp, and fish. It is essential that for these
shipments, the provisions of the IATA Live Animals Regulations be applied.
There are many characteristics of air cargo, which make it the preferred means of
transportations for perishable goods. The speed, reliability, economics and controlled
conditions of carriage by air provide the ideal method for exporters of perishable
commodities to service existing markets and develop new ones. However, the special
nature of perishable cargo calls for specials attentions to be paid to packaging,
handling and other aspects of the transportation process. To avoid risk of delay,
perishable shipments should travel as booked cargo. Shippers should be encouraged to
reserve space for all perishable consignments and to do this in sufficient time for the
airline to make whatever arrangements are necessary. Perishables should always be
sent on the most direct route, with fewest transit stops, thereby minimizing the elapsed
time and eliminating unnecessary climatic changes. When a transfer from one fight to
another is unavoidable, connecting times must be carefully considered as some
shipments may require reicing or temporary storage in a temperature-controlled area
such as a cool-room or freezer.
z Plants: Vegetables, fruits, berries and citrus plants;
z Original Meat Products: Chilled or smoked meat of birds and animals, fish,
seafood, eggs including incubatory eggs, caviar;
z Products after Processing: Oil, grease, frozen fruits and vegetables, sausages, 153
Air Cargo
canned goods, meat produce, cheese, dairy produce;
z Live plants, flowers, saplings, tubers and seeds;
z Live Fish Material, fry and live caviar.
z Preserved blood, vaccines, serum, medical and biological preparations, live
human organs and frozen embryos.
z Newspapers and magazines.

1. Air cargo traffic and revenues most clearly began to respond when jet
freighters entered service in 1973.
2. Reliable and robust powered conveyors are the backbone of any cargo
handling system.
10.6 CARGO TARRIFF, RATIO AND CHARGES

IATA TACT (The Air Cargo Tariff) contains comprehensive information regarding
air cargo rules, regulations, rates and charges. More than 100 airlines contribute to
TACT, making it the most reliable and comprehensive source on the market. The
definitive source for general industry rules and regulations include country and carrier
regulations. Some 70,000 professionals from the cargo industry consult it on a regular
basis.
TACT has the world's best coverage of Industry Rates and carrier specific rates, with
nearly 4.2 million rates in the database. TACT – The Air Cargo Tariff Become a
TACT Participating Airline: benefit from the privileges and become more visible to
freight forwarders. TACT is the definitive industry source for global air cargo rules
and regulations, rates and charges. As a TACT Participating Airline, you can simplify
and reduce the costs of your administrative and cargo handling procedures by
publishing valuable data on your operations. The majority of that information is
standardized; however, every airline is likely to deviate from the standard (e.g. on
insurance, transport of perishables, etc.). These deviations need to be communicated,
and airlines may need to comply with legal obligations of price publishing. TACT
Participating Airlines have the exclusive right to publish their carrier specific rates and
rules in TACT. Over 70,000 cargo professionals refer to TACT on a daily basis when
making day-to-day cargo transactions. By publishing in TACT, you will be more
visible to freight forwarders, influencing them to use your services. Because of
TACT’s unique worldwide distribution network, you will reach the widest audience
possible. More than 100 key airlines participate in TACT, and over 70,000
professionals from the cargo industry refer to TACT for Rates & Rules on a daily
basis.
Benefits of participating:
z Cost-effective communication of your carrier rules and rates
z Maximum worldwide marketing exposure to freight forwarders
z Increase your chances of being selected by freight forwarders
z Discounts on subscription fees of TACT products
z Free advertising in TACT
z Choice of distribution method of TACT CD or Manuals
154 10.6.1 Cargo Tariff Rules
Resource and
Logistics Management at Airports The rules related to Cargo Tariff are as follows:
Disposition of Fractions
Fractions of kilograms will be assessed at the charge for the next higher kilogram. In
computing rates or charges, fractions of less than one-half cent will be dropped, and
fractions of one-half cent more will be considered one cent. Before computing cubic
dimensions, fractions or less than one centimetre will be dropped.
Computation of Days
In computing time in days, full calendar days will be used and Sundays and legal
holidays will be included, except when the last day falls on a Sunday or legal holiday
in which event the next following calendar day (other than a Sunday or legal holiday)
will be included.
Packing and Marking Requirements

Shipments must be so prepared or packed as to insure safe transportation with
ordinary care in handling. Any article susceptible to damage by ordinary handling
must be adequately protected by proper packing and must be marked or bear
appropriate labels. Any article susceptible to damage as a result of any condition,
which may be encountered in air transportation, such as high or low temperatures,
high or low atmospheric pressure, or sudden changes in either, must be adequately
protected by proper packing and any other necessary measures. Each piece of
shipment must be legibly and durably marked with the name and address of the
shipper and consignee. Pieces with a floor-bearing weight in excess of that which may
be handled by the carrier must be provided with a suitable skid or base, which will
distribute the weight to that which the carrier may accept. The weight of such skid or
base shall be included in the weight of the shipment.
Shipments Acceptable
Except as otherwise provided in this tariff, all property is acceptable for transportation
only when the rules and regulations of the tariff and all laws, ordinances, and other
governmental rules and regulations governing the transportation thereof have been
complied with by the shipper, consignee, or owner.
Shipments Subject to Advance Arrangement

The following will be acceptable for carriage only upon advance arrangements:
(a) Shipments liable to impregnate or otherwise damage equipment or other
shipments;
(b) Shipments requiring special attention, protection or care en-route;
(c) Valuable shipments and/or other extraordinary articles;
(d) Shipments of live animals;
(e) Shipments of human remains (other than cremated remains);
(f) Shipments with pieces of unusual weight, shape, size, or;
(i) In excess of 100 kilograms
(ii) In excess of 50 × 60 × 100 centimetres
(iii) With floor bearings weights in excess of 3.0 kilograms per square decimetre
(g) Shipments with accompanying personnel; and 155
Air Cargo
(h) Any other unusual shipment such as dangerous goods.
Shipments not Acceptable

Shipments, which require the carrier to obtain a Federal, Provincial or local license for
their transportation, will not be accepted when the carrier has elected not to comply
with such license requirements. Shipments requiring special devices for safe handling
will not be accepted unless such special devices are provided and operated by and at
the risk of the shipper or consignee. Shipments not expressly covered by the rules of
this tariff, which would likely cause injury to crew or passengers, or whose carriage is
prohibited by law, will not be accepted.
10.6.2 Qualified Acceptance of Shipments

The carrier retains the right to reject a shipment prior to the performance of any
transportation by air from the airport or origin when it reasonably appears to the
carrier that such shipment is:
(a) Improperly packed or packaged;
(b) Subject to damage if exposed to heat or cold;
(c) Of an inherent nature or defect, this indicates to the carrier, that such
transportation could not be furnished by the carrier without loss of damage to the
goods;
(d) Not accompanied by proper documentation and necessary information as required
by any convention, statue or tariff applicable to such shipment; and
(e) Subject to advance arrangements unless such arrangements have been
satisfactorily completed.
(f) Human remains other than cremated remains must be adequately secured in the
casket to prevent shifting and the escape of offensive odours. The casket must be
enclose in an outside shipping container of wood, canvas, plastic or paperboard
construction with sufficient rigidity and padding to protect the casket from
damaged with ordinary care in handling.
10.6.3 Air Waybill and Shipping Documents

The shipper shall have the duty to prepare and present a non-negotiable Air waybill
with each shipment tendered for transportation subject to this tariff. If the shipper shall
fail to present such Air waybill to the carrier at the time of tendering the shipment, the
carrier may accept such shipment(s) if accompanied by a non-negotiable shipping
document or memorandum. No Air waybill or other shipping document or
memorandum issued or accepted by a carrier shall be negotiable, irrespective of the
wording of such document or memorandum. Each shipment, irrespective of the form
of shipping document or memorandum accepted by the carrier in connection
therewith, will be subject to the carrier’s tariff in effect on the date of acceptance of
such shipment by the carrier. The Air waybill, and the tariff applicable to the shipment
shall inure to the benefit of and be binding upon the shipper and consignee and the
carrier by whom transportation is undertaken between the origin and destination. It
includes destination on reconsignment or return of the shipment, and shall inure also
to the benefit of any other person, firm or corporation performing for the carrier pick-
up, delivery or other ground service in connection with the shipment. The Air waybill
and the tariff applicable to the shipment will apply at all times when the shipment is
being handled by or for the carrier, including air transportation by the carrier, such
pick-up, delivery or ground service in connection with the shipment. No agent, servant
156 or representative of carrier has authority to alter, modify or waive any provision of the
Resource and
Logistics Management at Airports contract of carriage or of this tariff. The contents of shipments must be indicated by
accurate and specific descriptions on the Air waybill. The number of pieces included
in a shipment must be specified on the Air waybill.
Notice and Disposition of Property

When perishable property, or property which by its very nature requires expeditious
handling, is accepted for shipment, and delay at point of origin thereafter develops or
is reasonably anticipated, carrier, upon receipt of such knowledge, will promptly
attempt to notify shipper thereof, requesting instructions. If, after reasonable attempt
on the part of carrier, in such cases to give such notice, no further instructions are
received, carrier reserves the right to reroute the shipment by other means of
transportation. Carrier will promptly notify consignee by mail or otherwise upon the
arrival of shipment. If after notice of arrival has been given to consignee, or delivery
has not been effective, and the shipment is undelivered at the expiration time of the
free storage time, carrier will notify shipper and consignee, at the addresses shown on
shipment, of carrier's inability to affect delivery. Any undelivered shipment will, upon
written request from shipper received within 10 days after date notice of non-delivery
was mailed to shipper, be returned to shipper, forwarded, or otherwise disposed of, all
at shipper's expense. When a shipment containing perishable articles is delayed in the
possession of the carrier, or is unclaimed, refused, or threatened with deterioration, the
carrier will have the right immediately to take such steps as it sees fit for the
protection of carrier and other parties in interest. This includes collect
communications for instructions, or sale or other disposition of such perishable
articles without instructions. When a shipment containing non-perishable property
remains unclaimed or is refused after notice of arrival, and notice of non-delivery as
herein provided, carrier will have the right to store and has the additional right to
dispose of the shipment or any part thereof at public or private sale after 30 days’
written notice to shipper and consignee at the addresses shown on the shipment. In the
event of non-payment of any sums payable to carrier, the carrier will have the right to
hold the shipment subject to storage, and to dispose of the shipment at public or
private sale, without notice to shipper or consignee, paying itself out of the proceeds
of such sale all sums due and payable, including storage charges.
Routing and Rerouting

Carrier, in the exercise of due diligence and in order to protect all property accepted
for transportation, will determine the routing of any shipment, not routed by the
shipper. Carrier reserves the right to deviate from any route shown on the Air waybill,
and to forward, when necessary in its opinion to expedite delivery via any such carrier
or other transportation agency at the rate prescribed by such agency. This is provided
that when either of the foregoing rights is exercised, the transportation charges shall
be no greater than the air freight charges from origin to destination via the route
shown on the Air waybill. Routing shown in conjunction with specific rates is for
informational purposes only. Where specific flights or routing is requested by the
shipper, the carrier may, at its sole discretion, apply the applicable sector rates for the
flights or routing requested by the shipper.
10.6.4 Application of Rates and Charges

The carrier or its agent will assess charges at the rates in effect on the day of
acceptance of the shipment. When the charge for a shipment would exceed the charges
for a greater weight of the same commodity from and to the same points over the same
route, the lower charge will apply. Specific commodity rates remove the applicability
of the general commodity rates on the same quantity of the same article or commodity
from and to the same points over the same route. Whenever and for such period as 157
Air Cargo
direct service is suspended or discontinued between points named in this tariff, rates
published between such points via such direct suspended or discontinued service will
be inapplicable (except for combination or intermediate application) during such
period as the service may be suspended or discontinued. The carrier or its agent will
assess charges for shipments of commodities at the stated percentage of the applicable
general commodity rate in effect on the day of acceptance. Charges for Weight Cubic
measurements will be based on the greatest dimension (height, width and length) of
(a) the shipment; or (b) of each part therein in the event of mixed shipments
containing differently rated parts. Cubic dimensional weight will be derived from the
cubic measurement of shipments or part thereof on the basis of one kilogram for each
6,000 cubic centimetres or fraction thereof. The chargeable weight of the commodities
shown below will be determined according to the service level selected by the shipper.
10.6.5 Claim Procedure

All claims must be made in writing to the originating or delivering carrier within 270
days after the date of acceptance of a shipment by the originating carrier. Damage
and/or loss discovered by the consignee after delivery and after a clear receipt has
been given to the carrier must be reported in writing to the delivering carrier at
destination within 15 days after delivery of the shipment, with the privilege to the
carrier to make inspection of the shipment and container(s). No claim for loss or
damage to a shipment will be entertained until all transportation charges thereon have
been paid. The amount of claims may not be deducted from transportation charges.
10.6.6 Storage
Shipments will be held by the carrier without charge for 48 hours (excluding Sundays
and legal holidays for freight other than perishables) after arrival and tender of
delivery at destination or notification of arrival, whichever is applicable. Such 48-hour
period will be computed from the first 8 a.m. after tender of delivery, or notification of
arrival.
(a) After the expiration of such free time, the carrier will, if practicable, continue to
hold such shipment as agent for the shipper and consignee, subject to a charge of
$7.50 per day per 100 kilograms or any fraction thereof. Alternatively, if such 221
continued holding is not a practicable carrier, as such agent, will place the
shipment in a public warehouse subject to a lien for all transportation, storage,
delivery, warehousing and other charges, including handling charges of $2.00 per
100 kilograms or any fraction thereof, minimum charge of $30.00 per shipment.
(b) For shipments removed in bond from storage, the charge will be:
Note: Each additional 1000 kg or fraction thereof charge $20.00.
Charge is based on the greater of actual or dimensional weight. When the shipment is
held by the carrier, the carrier's liability will be reduced to that of a warehouseman,
and when the shipment is placed in a public warehouse, carrier's liability for the
shipment will terminate. Outbound shipments delivered to the carrier's premises,
which are not acceptable for any reason, will be subject to storage charges as
prescribed in this Rule (without any free time) from the first business day after the
delivery until such shipment is made acceptable for carriage or removed.
10.6.7 Charges for Dangerous Goods

Dangerous goods, which cannot be packaged for transportation on passenger aircraft,
will be accepted subject to the advance notice. Charges for such commodities will be
the rate for General Commodities published plus a charge of $55.00.
158 10.6.8 Priority Cargo Shipments
Resource and
Logistics Management at Airports Priority cargo applies only, upon the services of First Air and may not be combined
with any other type of online cargo service. Service standards quoted in this rule apply
only to transportation over the services of First Air and do not apply to the transfer of
shipments to/from other airlines, their pick-up or delivery, or any other ancillary
services. Where the carrier cannot accommodate the complete shipment on one flight,
separate air waybills will be cut and cross-referenced with each Air waybill showing
the flight(s)/date(s) on which each portion of the shipment is scheduled to travel. The
rate charged will be the rate applicable to the weight of the complete shipment.
Flight(s)/date(s) information will be shown on the Air waybill. Rates charged on the
Air waybill will be the carrier's priority (PRI) rate applicable to, the shipment weight
as noted in its tariff. Carrier, at its option, may elect to transport the shipment on a
flight prior to that shown on the original Air waybill. Shipments will be available no
later than two hours after the actual arrival of the flight on which the shipment is
booked. Shipments will arrive within four hours of the flight's scheduled arrival time
as shown in the carrier's computerized reservation system. It will be the responsibility
of the shipper to inform the consignee of the flight on which the shipment is scheduled
to arrive.
10.6.9 Refund Policy

Refund policy applies only to transportation charges over the services of First Air and
does not include charges for any other carrier(s) and/or services, including but not
limited to pick-up, delivery, transfer, excess valuation, and insurance. Carrier will
refund the difference in the transportation charges between the applicable Priority
(PRI) and the General Commodity Rate (GEN) if the carrier fails to fulfil the
following criteria:
z The shipment does not travel on the flight(s)/date(s) agreed upon, or upon such
other flights, as to arrive at the online destination noted on the Air waybill within
four hours of the planned arrival time of the original flight as shown in the
carrier's computerized reservation system.
z The shipment is not available for pick-up within two hours of the actual arrival of
the f light on which the shipment is carried.
z Notwithstanding the above, refunds will not apply to shipments scheduled on
flights, which have been delayed, cancelled, or rerouted due to weather or other
conditions beyond the control of the carrier provided the shipment is carried and
arrives at the online destination on the next scheduled flight.
z It will be the responsibility of the consignee, or his agent, to note on the Air
waybill that the shipment did not meet the service standards for transportation
and/or availability on arrival at destination. Request for a refund on the Priority
cargo rate must be made at the time of acceptance of the shipment by the
consignee or his agent. Except for split shipments, a refund will be applied to the
complete shipment if a portion of the shipment is lost or delayed. In the case of
split shipments a refund will be applied only to that portion of the shipment,
which travelled under the same Air waybill as that of the goods, which were lost
or delayed.
z Refund will be returned to the person or company making payment to First Air for
the shipment. Complete payment of the charges originally noted on the Air
waybill must be received before the refund is processed. Where payment is
charged to an approved First Air account the refund will be in the form of a credit
note on account.
10.6.10 System-wide Rates 159
Air Cargo
System-wide cargo rates as shown on the applicable rate which is valid between any
two points on First Air's scheduled route network. System-wide cargo rates apply only
upon the services of First Air and may not be combined with any other type of online
cargo service. Interline shipment is not permitted under these rates. Size and/or weight
maximums must be met. Validity periods must be followed where specified in the rate
type. Form of payment restrictions must be met where specified in the rate type.
10.7 AIR WAY BILL, FUNCTION, VALIDATION, AND

PURPOSE
Air Waybill (AWB) is a non-negotiable instrument which is issued by an international
airline for goods and it works as an evidence of the contract of carriage.
The Air Waybill (AWB) is the essential certificate issued by a carrier either directly or
through its authorized agent. It is a non-negotiable transport certificate. It takes the
cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting
on behalf of the carrier whose air waybill is issued.
Air Waybills is made up of specific eleven digit numbers which can be further used to
make bookings, check the status of delivery, and current position of the shipment. The
number consists of:
z The first three digits are the prefix of the airline. Each airline has been given a 3-
digit number by IATA, so from the prefix we came to know that by which airline
the air bill has issued.
z The next seven digits are the running number/s – one number for each
consignment
z The last digit is what is called the check digit. It is arrived at in the following
manner:
Divide the seven digit number by 7, by the help of long division calculation. The
remainder works as the check digit. So no AWB number ends with a figure which is
greater than 6. An air waybill has 8 sets of different colours. The first three copies are
originals. The first original is Green in colour which is Issuing Carrier's copy. The
second is pink in colour which is a Consignee's Copy. The third is blue in colour,
which is the shipper's copy. A fourth one which is yellow in colour is taken as the
delivery receipt, or proof of delivery. The remaining three copies are white.
Functions of Airway Bill

There are various functions that an air waybill serves, but its main functions are:
z Contract of Carriage: Conditions of contract for carriage are extremely important
behind every original of the air waybill.
z Evidence of Receipt of Goods: When the shipper supplies goods to be delivered,
he receives a receipt. The receipt act as a proof that the shipment was supplied in
good order and form and also that the shipping directions, as contained in the
Shipper's Letter of Instructions, are acceptable. After finishing the delivery, an
original copy of the air waybill is given to the shipper as a proof of the acceptance
of goods and as proof of contract of carriage.
z Freight Bill: The air waybill can work as a bill or invoice together with auxiliary
documents since it may point to the charges to be paid by the consignee, charges
due to the agent or the carrier. An original copy of the air waybill is used for the
carrier's accounting.
160 z Certificate of Insurance: The air waybill may also serve as a proof that whether
Resource and
Logistics Management at Airports the carrier is in a position to protect the shipment and is demanded to do so by the
shipper.
z Customs Declaration: Even though customs authorities need various documents
like a commercial invoice, packing list, etc. the air waybill too is an evidence of
the freight amount to be paid for the goods carried and may be required to be
checked for customs approval The format of the air waybill has been given by
IATA and these can be used for both domestic as well as international shipping.
These are offered in two forms,
(i) the airline logo equipped air waybill
(ii) the neutral air waybill.
Generally, airline air waybills are distributed to IATA cargo agents by IATA airlines.
The air waybills show:
z its head office address
z its logo
z the carrier's name
z the pre-printed eleven digit air waybill number
It is similarly likely to complete an air waybill through a computerized system. Agents
in the whole world are now by means of their own personal computer systems to give
airlines' and freight forwarders' personal air waybills. IATA cargo agents generally
hold air waybills of some carriers. However, it slowly became problematic to
accommodate these pre-numbered air waybills with the published credentials in the
computer system. Consequently a neutral air waybill was made. Both types of air
waybills have the identical format and layout. On the other hand, the neutral air
waybill does not allow any pre-printed individual name, head office address, logo and
serial number.
Validity
The air waybill is an agreement which is enforceable by law. To develop a valid
contract it must be signed by the transporter or his agent and by the carrier or its
authorized agent. Even though the one individual or organization may act on behalf of
both the carrier and the shipper, the air waybill must be signed twice one each in the
respective carrier and shipper boxes. Both signatures may be of the same person. This
also implies that the air waybill should be issued immediately upon receipt of the
goods and letter in instructions from the shipper.
Responsibility for Completion

The air waybill is an agreement among the shipper and the carrier. The agent only
needs to act like a middle man between the shipper and carrier. The air waybill is also
a contract of good faith. This means that the shipper will be accountable for the haul
also be responsible for all the destruction suffered by the airline or any person due to
irregularity, inaccuracy or incompleteness of attachments on the air waybill, even if
the air waybill has been accomplished by an agent or the transporter on his behalf.
When the shipper signs the AWB or gives the letter of instructions he at the same time
approves his agreement to the situations of contract.
Check Your Progress 2 161
Air Cargo
Fill in the blanks:
1. ………………… and ………………… are the types of Air Cargo.
2. ………………… Decks are manufactured to handle the punishment seen
in the Air Cargo Handling Industry.
10.8 LET US SUM UP

Air cargo got its start on May 28, 1910, when Glenn Curtiss flew a sack of mail from
Albany to New York City for the Post Office Department, covering the 150 miles in
two and a half hours. Air freight, on the other hand, has always been marketed
independently by airlines in competition with one another. Air mail service, the first of
the air cargo services, was an important factor in the formation of air transportation in
the United States. Air express service was inaugurated at Hadley Field near New
Brunswick, N.J., on September 1, 1927, by National Air Transport, a predecessor of
United Airlines, created specifically for the purpose of carrying air express, and by the
American Railway Express Agency (REA). Three other carriers joined the effort to
provide a comprehensive express service: Colonial Airlines, Boeing Air Transport,
and Western Air Express. The air cargo industry includes three types of carriers:
integrated carriers, passenger airlines, and conventional all-cargo carriers. A
fundamental reason for air cargo’s inability to surpass passenger revenues is that air is
a premium-cost transportation mode compared to any surface system. Two primary
factors influence freight growth: economic conditions and rate levels. The most
important advance recently was the formation of the Global Air Cargo Advisory
Group (GACAG) as an industry force.

Critically examine the future looking positive perspective for air cargo sector.
10.10 KEYWORDS
Air Cargo Guide: The Air Cargo Guide is a basic reference publication for shipping
freight by air.
Air Cargo: Goods transported by aircraft.
Air Freight: Air freight is the transfer and shipment of goods via an air carrier, which
may be charter or commercial.
Air Mail: Airmail (or air mail) is a mail transport service branded and sold on the
basis of being airborne.
Container Rates: Container rates are low rates charged by the carriers to shippers
using containers to ship air cargo.
Priority Rates: Priority reserved air freight is designed to serve shippers of heavy or
bulky freight who need the advantage of reserved space on a specific flight.
Specific Commodity Rates: Specific commodity rates are established for unusually
high-volume shipping of certain products between certain cities.
Speed Package Service: Speed package service is a small package fast-delivery
service, airport-to-airport, with certain carriers on their own systems.
162
Resource and 10.11 QUESTIONS FOR DISCUSSION
1. Discuss the overnight air express.
2. Describe the types of carriers.
3. Highlight the reason for freight lags behind passenger traffic.
4. Explain the types of air freight rates.
5. Write a brief note on assembly service.
6. What do you understand by air cargo guide?
7. Discuss the factors affecting air freight rates.

CYP 1
1. True 2. True
CYP 2
1. Dangerous, Perishable 2. Conveyor

Allaz, Camille (2005). “History of Air Cargo and Airmail from the 18th Century.” Google
Consultant.
Evans, Amanda and Maloney, Jade (2008). “Transport and Logistics”. Career FAQs.
Morrell, Peter S. (2012). “Moving Boxes by Air: The Economics of International Air Cargo.”
Ashgate Publishing.
Hertwig, Paul and Rau, Philipp (2010). “Risk Management in the Air Cargo Industry: Revenue
Management, Capacity Options and Financial Intermediation.” Diplomica Verlag.
Wensveen, John G. (2012). “Air Transportation: A Management Perspective.” Ashgate
Publishing.
Skinner, Richard L. (2011). “Security of Air Cargo During Ground Transportation
(Redacted).” DIANE Publishing.
MODEL QUESTION PAPER
BBA (Annual Pattern)
Second Year
Subject: Resource and Logistics Management at Airports

Time: 3 hours Total Marks: 100
Direction: There are total eight questions, each carrying 20 marks. You have to
attempt any five questions.
1. Define warehousing. What are the different benefits of warehousing?

2. What are the different warehousing operating principles?
3. What are the various steps in making a warehousing strategy?
4. Describe the types of carriers. Highlight the reason for freight lags behind
passenger traffic.
5. Explain the types of air freight rates.
6. Write a brief note on assembly service.
7. What do you understand by air cargo guide?
8. Define Baggage Management System. How is it helpful in efficient working of
the airport?

Resource and Logistics Management at Airports

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Resource and Logistics Management at Airports

Uploaded by

Copyright:

Available Formats

Resource and Logistics Management at Airports

School of Distance Education

Copyright © 2014, Bharathiar University

Produced and Printed

1.0 AIMS AND OBJECTIVES

1.2 ROLE OF HUMAN RESOURCES

1.3 CONCEPT OF HUMAN RESOURCE MANAGEMENT IN

1.5 PERSONNEL MANAGEMENT IN AVIATION

1.6 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

1.6.1 Managerial Functions

1.6.2 Operative Functions

Check Your Progress 1

Check Your Progress 2

1.8 LET US SUM UP

1.9 LESSON END ACTIVITY

Check Your Progress: Model Answers

1.12 SUGGESTED READINGS

2.0 AIMS AND OBJECTIVES

2.2 DEALING WITH SUPERIORS

2.2.1 Misreading the Boss–Subordinate Relationship

2.2.2 Understanding the Boss

2.2.3 Understanding Yourself

2.3 DEALING WITH PEERS

2.4 DEALING WITH SUBORDINATES

2.5 MANAGEMENT STYLES IN MANAGING WORK

Check Your Progress 2

2.7 LESSON END ACTIVITY

2.9 QUESTIONS FOR DISCUSSION

Check Your Progress: Model Answers

2.10 SUGGESTED READINGS

3.0 AIMS AND OBJECTIVES

3.2 WORKING OF AIRLINE CREW

1. Greet passengers and direct them to their seats

Check Your Progress 1

3.5.1 Sky Police

3.6 NATIONAL AVIATION AUTHORITY

Check Your Progress 2

3.8 LESSON END ACTIVITY

3.10 QUESTIONS FOR DISCUSSION

3.11 SUGGESTED READINGS

4.0 AIMS AND OBJECTIVES

4.2 SPACE ALLOCATION IN AIRPORTS

4.2.1 Office Planning Standards

4.2.2 General Instructions to Request Space

4.2.3 Determining Space Needs

Check Your Progress 1

4.3 GATE CAPACITY MANAGEMENT

Amsterdam Airport Schiphol is benefitted by following ways after using this

4.3.1 How the Gate Capacity Manager Works?

4.3.2 Other SAMANTA Modules

4.3.3 SAMANTA Gate Capacity Manager

4.4 BAGGAGE MANAGEMENT MAKE UP AND BREAK UP

4.5 MANAGEMENT OF RESOURCES IN AVIATION

4.6 CHALLENGES IN AVIATION AND THEIR SOLUTIONS

Check Your Progress 2

4.7 LET US SUM UP

4.8 LESSON END ACTIVITY

4.10 QUESTIONS FOR DISCUSSION

Check Your Progress: Model Answers

4.11 SUGGESTED READINGS

5.0 AIMS AND OBJECTIVES

5.2 AIR OPERATOR SERVICE PROVIDERS

5.2.1 Staff Departments

Figure 5.1: A Typical Major Air Carrier’s Staff Department Structure