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AIR TRANSPORT INDUSTRY Katherine Hill Rachael Buckingham Michael Brogden.

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Presentation on theme: "AIR TRANSPORT INDUSTRY Katherine Hill Rachael Buckingham Michael Brogden."— Presentation transcript:

1 AIR TRANSPORT INDUSTRY Katherine Hill Rachael Buckingham Michael Brogden

2 Presentation Structure Evaluate the key characteristics of the air transportation industry incorporating customer needs, service concept and product development To critically evaluate the range of skills and competencies required for successful management in the airline industry To critically reflect on the impact of external factors on the airline industry and their operational implications

3 Understanding Customer Needs Diverse range of needs from different customer groups Airline consumers have some of the highest expectations within service industries Lewinson (1997) categorises service expectations in three levels: 1. Essential2. Expected3. Optional Lewinson (1997) cited in Kandampully (2001)

4 Service Concept Definition The service concept identifies the proposed nature of the business, the service in the mind that the organisation wishes to create. This helps the organisation to focus on the value that it can provide to customers (Johnston & Clark, 2001:345)

5 Service Concept of Airlines The service concept provides guidance on: Core product Augmented product and; Differentiation Methods (Williams & Buswell,2002) Full-service airlines may have different concepts for individual customer groups Service concept must span numerous supporting functions in delivering the product

6 Product Development within the airline industry Certain service concepts necessitate innovation Product innovation is essential in full-service airlines Current Innovations within the industry are: - Online/SMS/Office based desk Check-in - Iris scanning at Immigration - Chauffeur transportation & drive thru check-in - A380/Sonic Cruiser (www.britishairways.com, www.virgin-atlantic.com, www.finnair.com, www.airbus.com, www.boeing.com)

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8 Interdependency of service characteristics Customer Needs Service Concept Product Development

9 Skills and Competencies for the Airline Industry The nature of the service product Service concept influences the scope and depth of skills required Competence has been defined as: The skill, expertise and professionalism with which the service is executed...degree of product or service knowledge and the general ability to do a good job. (Johnston & Clark, 2001: 89)

10 Skills and Competencies for the Airline Industry cont... Core competencies: -Team Work -Problem Solving

11 Baggage Dispatch Cabin Crew Reservations and Ticketing Check-in Security Maintenance Boarding Agent Immigration

12 The Impact of External Factors Impacts from both macro and micro environments Macro Environment: Air Traffic Control Problems 09/11 Economic Downturn Political Unrest – Zimbabwe Union Strikes e.g. Fire Fighters at airports

13 The Impact of External Factors Cont... Micro Environment: FEGP – Fixed Electrical Ground Power Health and Safety Issues Crew Bus Service

14 Conclusion Customer Needs Service Concept Product Development Product Delivery Skills Macro/Micro External Environment

15 Bibliography Johnston, R. & Clark, G (2001) Service Operations Management, Pearson Education Ltd: Essex. Lewinson. D.M. (1997),cited in Kandampully, J. & Mok, C. & Sparks, B. (2001) Service quality Management in Hospitality, Tourism and Leisure, Haworth Press: New York. Williams, C. & Buswell, J. (2003) Proofs. Service Quality in Leisure and Tourism. CAB International British Airways [online] [cited 12 th Dec 2002] Available from URL:http:www.britishairways.com.htm Virgin Atlantic [online] [cited 11 th Dec 2002] Available from URL:http:www.virgin-atlantic.com.htm

16 Bibliography Finn Air [online] [cited 12 th Dec 2002] Available from URL:http:www.finnair.com.htm Airbus [online] [cited 14 th Dec 2002] Available from URL:http:www.airbus.com.htm Boeing [online] [cited 12 th Dec 2002] Available from URL:http:www.boeing.com.htm


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