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Requirement
Prepare a report on application of mathematics and statistics to advanced business case studies.
Solution
Introduction
Air Asia is considered as the world’s low cost flight which has been introduced in 2001 with the aim of allowing everyone to fly. The motive of the company is to help everyone experience travelling through flight. The target of the airline has been the customers that will prefer low cost flight in exchange of full frill services offered by other airlines at higher cost. The customers can travel according to their own ability to pay for things they wish. This has made the airlines a competitive airline in the world market in a shot span of time. The airline has been known among its travelers for its safety and amazing service quality at the price it charges for per person (Air Asia 2018). Safety has always been the main motive of the company since it has started its business.
With such a strong business model and ability to serve the world with their best air services, the airline has been able to growth at a fast rate. However, recently it received a drawback in its services and created terror in the life of the travelers. The airline received a history of technical failures in its services to different places. Recent incident that happened with the airline and acts as an incident was the engine failure that took place in the flight that was flying from Perth to Kuala Lumpur. The flight was forced to turn back after the pilot was able to report the engine failure in the flight. Even though many lives were saved, yet the terror of such incident remained among the passengers. Other than this there was also a plane crash that took place in 2014 killing 162 people travelling in the flight (RUDD 2017). Although the recent incident that happened did not take any life; however, such incidents questions the safety of the passenger in the flight.
The technical issues that the airline is facing has a direct impact on the life of the people making them choose some other airline. Thus, the technical issue that Air Asia is facing is causing a loss to the company by decreasing demand from the passengers (Bartiromo 2017). Moreover, it also impacts on the cost of the company. Thus, it is necessary to carry out the research on the importance of technical safety in a flight and its impact on the airline industry.
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Research Questions
1. What is technology for airline industry?
2. What is the impact of technical issues on the airline industry?
3. What is the importance technicality play in the airline industry?
4. What are the ways to address or avoid technological faults?
Research Objectives
The objectives of the research is to understand technology plays in the airline industry, which is divided into sub-parts:
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To understand the importance of technicalities in airline industry
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To analyze the importance of safety measures taken in the airline industry
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To analyze the impact of technical fault has on the airline industry
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To discuss the ways of improving the technical issues in the airline
Literature Review
Importance of technology and safety in Airlines Industry
Technology plays a crucial part for the airline industry, whether it is for its operation or for making the travelling experience good for the passengers. Technology is an important part of productivity and impacts the changes that takes place in the productivity level of the airlines. According to Gittell (2003) technology is a crucial part of production in the airline industry as it helps in combining two inputs of the industry such as the labor and aircraft to produce capacity of the airline. The growth pf technology and technical advancement has offered great capabilities to the airline sector which was not their initially. The industry need to exploit such growth in order to excel in the world and offer great experiences to the customers (Morrison and Winston 2010). Technology is the part of the airline industry since decade and is required in each and every part from ticket booking, boarding the flight to landing. Every step needs a technical support to offer the passenger hassle free experience. Distexhe and Perelman (1994) has pointed out that there are various safety measures that technology has helped the aviation industry to take up from time to time. The first safety measure that technology to the airline industry is security while travelling in the flight. There are many security measures that the flight set for the passenger so that they get a safe departure and landing. These security measures are available in different areas in the flight such as the engine, the seat, the cockpit and others. Airline companies look for ways from time to time to upgrade or improve these security measures using advanced technology. This offers them a way to deal with sudden situations easily while flying. Musson and Helmreich (2004) in their paper has stated that technology forms the crucial part of saving lives of the people on flight. This is because of the security role it plays in the flight service from time to time and in various situations.
Impact of technical faults on Airline Industry
Technical faults is a common scenario seen in the airline industry nowadays which is putting huge risk to the life of the passengers. Technical faults puts great impact on the airline companies as it is one of the high risk factors. According to Rosenkopf and Tushman (1998) technical failures are a huge loopholes that is caused from the company’s end as it puts many lives at risk which in turn effects the company. Technical failure is caused in various ways in the aircraft industry such as information technology failure, engine failure, connection failure and others. All these failures has negative impact on the image and business of the airline companies. Deterioration of efficiency is the most important impact that technical faults has on the company. This can be measured from the view point of delays caused in flights. A technical issues caused in the flight while takeoffs causes the flight to delay for some time. Thus, affecting the efficiency of the flight for timely schedule and creating delay in the life of people. This might in turn frustrate the travelers due to the delay caused in their life. Air passengers are increasing day by day and this is increasing the need for the airlines to take care of their safety measures and improve efficiency to a great scale in the business (Buhalis 2004). Apart from this the technical failure might also impact on other sectors of the airline industry such as security. The first thing that every aviation companies come across is to ensure the security of the passengers. This is because passengers that travel with such companies first seek their safety. Thus, technical failures such as engine failure and connection failure might cause a huge threat to the customers. This in turn will make them cut off any relation with the company that fails to offer security assurance to them. Thus a technical issue impacts on the security measures of the company.
Assaf and Josiassen (2012) has successfully pointed out that technical issues in flight is a huge risk to life as safety in air is hampered due to such failures. This means that technical issues will restrict the flight attendants and the pilot to keep a control on the flight which might have an impact on the passengers. In-flight connectivity might get hampered from such technical issues which is the greatest problem that can cause during a flight. This is because the connectivity that occurs between the pilot and the flight attendants is crucial. In case of any issue that is caused in the cockpit can be readily informed to the flight attendants so that the passengers can get aware. However, a failure in such connectivity can cause huge risk to the passengers in the flight.
Thus, it has be rightly stated by CMO Network (2016) that technical issues act as a plague in the growth of the airline industry. Operational failures occurs in this industry frequently which might turn to be a glitch affecting the public relation of the airline with the customers. However, the need for controlling the technical glitch is increasing in as frequent delays, engine failure and others are affecting the customers greatly. Thus, the most affecting part of any technical issues caused in the airline industry are the passengers taking the flight.
Ways to improve technical issues in Airline Industry
Another important part that involves the technical factor of the airline industry is the way to improve its technical strength and reduce the amount of glitch that occurs. As the competition is increasing greatly in the airline industry; thus, it is necessary that the companies find out ways to deal with such technical issues in order to stay ahead of competition. Kumar, Scheer and Kotler (2000) in their paper stated that tracking the severity of the incident that is caused is necessary in order to deal with technical problems. In order to deal with the issue the airline needs to monitor their performance and estimate the number of time they have faced technical issues in their flight. After tracking the incidence it is necessary to modify or alter the technical glitch in the areas. The tracking should be frequent so that the airline is able to overcome all their technical issues within the planned time period.
There should be a frequent check of the flight by the technical professionals to ensure that there is no technical issues in the flight before boarding the passengers into it. Frequent check is another important step that the airline takes so that they can improve their safety on the flight (Williams 2017). The tracking of source of delays frequently is a better check to ensure that there is no delays in flight. According to Talluri and Van Ryzin (2006) there are various website that offers facility to the airlines to track the delays caused in their departure. The website helps the airline to collect data related to their delays so that they can keep a check in them. Flight delays are also caused due to technical problems and keeping a check in the delay will help them to solve the technical issues in the flight as well.
Other technical issues that the airline can overcome and provide the customers with better service in and outside flights are the use of blended wings. Blended wings are new technology that the airlines can use in today’s world that can offer them with great advantages such as superior aerodynamics, lower engine noise and short take-off. These advantages will offer better soothing travel to the travelers. Another new technology that has come up with better airline service is turboelectric propulsion (Belobaba, Odoni and Barnhart 2015). The hybrid design of using propulsion systems will help in generating better electricity for the airplane as it will be supplemented with the turbofan thrust.
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From the above analysis it can be concluded that the Air Asia is facing a lot of problem in their technology which is increasing the risk for in flight passengers. This has increased the need for the research on the role technology play for the airline industry and the issues that the industry is facing in today’s world. Further the research will also help them to find measures by which the company can overcome the technical issues they are facing. This is because it is seen that the Air Asia is recently facing huge technical issues in its engine and in other parts of the flight. Thus, it si necessary that the company follow certain steps and research that can help them to overcome the issues. The technical faults are increasing the risk in people that are travelling through Air Asia. The airline is losing its customer trust slowly due to these issues. Thus, the literature helps in showing the importance of the research that the airline should take up in order to know their technical problems and overcome it as soon as possible. Various new technologies are coming up for the flights to help them offer a safe environment to the passenger.
References
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Air Asia 2018. About us | We're the World's Best Low-Cost Airline | AirAsia. [online] Airasia.com. Available at: https://www.airasia.com/my/en/about-us/hi-we-are-airasia.page [Accessed 28 Mar. 2018].
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Assaf, A.G. and Josiassen, A., 2012. European vs. US airlines: Performance comparison in a dynamic market. Tourism Management, 33(2), pp.317-326.
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Bartiromo, M. 2017. 'Technical issue' on AirAsia flight sends plane plummeting: 'Hostesses started screaming'. [online] Fox News. Available at: http://www.foxnews.com/travel/2017/10/16/technical-issue-on-airasia-flight-sends-plane-plummeting-hostesses-started-screaming.html [Accessed 28 Mar. 2018].
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Belobaba, P., Odoni, A. and Barnhart, C. eds., 2015. The global airline industry. John Wiley & Sons.
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Buhalis, D., 2004. eAirlines: strategic and tactical use of ICTs in the airline industry. Information & Management, 41(7), pp.805-825.
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CMO Network 2016. Forbes Welcome. [online] Forbes.com. Available at: https://www.forbes.com/sites/brandindex/2016/09/02/as-technical-failures-plague-the-airline-industry-delta-has-the-hardest-recovery/#1cf71e9261e1 [Accessed 28 Mar. 2018].
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Distexhe, V. and Perelman, S., 1994. Technical efficiency and productivity growth in an era of deregulation: the case of airlines. Swiss Journal of Economics and Statistics, 130(4), pp.669-689.
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Gittell, J.H., 2003. The Southwest Airlines way: Using the power of relationships to achieve high performance. New York: McGraw-Hill.
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Kumar, N., Scheer, L. and Kotler, P., 2000. From market driven to market driving. European management journal, 18(2), pp.129-142.
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Morrison, S. and Winston, C., 2010. The evolution of the airline industry. Brookings Institution Press.
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Musson, D.M. and Helmreich, R.L., 2004. Team training and resource management in health care: current issues and future directions. Harvard Health Policy Review, 5(1), pp.25-35.
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Rosenkopf, L. and Tushman, M.L., 1998. The coevolution of community networks and technology: Lessons from the flight simulation industry. Industrial and Corporate Change, 7(2), pp.311-346.
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RUDD, M. 2017. AirAsia's history of mechanical failure and human error is well known. [online] Mail Online. Available at: http://www.dailymail.co.uk/news/article-4638476/AirAsia-history-mechanical-failure-human-error.html [Accessed 28 Mar. 2018].
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Talluri, K.T. and Van Ryzin, G.J., 2006. The theory and practice of revenue management (Vol. 68). Springer Science & Business Media.
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Williams, G., 2017. The airline industry and the impact of deregulation. Routledge.
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