EAAVN1011 Introduction to Air Transport Industry and Management

Question: Discuss about the Introduction to Air Transport Industry. Answer: Organisations and their roles International Air Transport Association IATA is a private organisation which promotes the worlds scheduled airlines for ensuring secure, safe, economical, and dependable air services, across the globe. It was founded by the end of World War 1 in Hague in the year 1919, and currently it handles 280 airlines from 130 countries. It is worth mentioning that the organisation handles about 95% of the worlds total scheduled air traffic. The structure of IATA defines that the final authority of the association holds with its annual general meeting in which all the active members of the association have an equal vote, and a president is chosen among them in the meeting. Further the decision related to technical aspects of aviation as well as the commercial counter part of the airline industries are taken according to this framed group and its corresponding general body executives. The execution and determination of policy is executed by the Executive Committee which consists of 21 senior executives from the association. International Civil Aviation Organisation ICAO is an organisation which designs and suggests the safety principles and policies for international air transport. It was created by following the signing in the Convention of Chicago on the International Civil Aviation. It consists three primary bodies. The assembly meeting is done in every three years for reviewing the work of organisation and the daily business of ICAO is conducted by the council between the assembly sessions (Lindenthal, 2014) The air navigation commission is the permanent part of the association which is responsible for all technical matters. It is noteworthy to mention that the agency is responsible for aviation development objectives including the strategic progress, safety and air navigation related decision, monitoring the air transport metrics, and audit of States civil aviation capabilities. International traffic rights and air services agreements The International Air Services Transit Agreement (IASTA), includes the first two freedoms that are critical for the airline management aspects. The first freedoms describes the right of flying over any foreign country without landing on it. Member states of the IASTA grant the above freedom to the other member states, which are subjected to transiting aircraft in the assigned air routes (IATA, 2014). The second freedom allows any technical stop without the boarding or landing of the passengers or cargo, which also include emergency control situations. International traffic rights and air services agreements provides the right to land in any country solely for refuelling as well as in emergency conditions, which are for the safety and benefit of commonwealth from any nations (IATA, 2014). The rules and regulations play an important role in the safety and security of the aviation department, as dictated in the report by Vasigh et al. (2013). These elements are necessary in every aspect of the business operation in conjunction with objectives like providing economic regulatory reform. Aviation safety and security also describes the investigation related to flight failures and the act for preventing such failures through education as well as training, regulation and ethical practice. The safety rules in context of air travel can also be informed to the public in the form of campaigns. In particular, the natural elements include lighting, ice or snow, misleading information, fire, and bird strike (Vasigh, Fleming and Tacker, 2013). Likewise, the human factors like piloting while intoxicated, controlled flying during terrain, fatigue of crew members, electromagnetic interference, and terrorism. Industry operational standards, training, and best practice According to a report by Ornato and Peberdy et al. (2014), the airport authority has developed standardised operating procedures for the high-value activities in field. However, the standardisation of these activities have importance as it support critical issues like (i) quality control, (ii) increased efficiency, (iii) ensured the consistency of the air traffic, and (iv) managing safety of commonwealth. Notably, the airline industry is highly regulated in terms of having standard operating procedures, security protocol and timely maintenance and for which the personnel needs can be trained and well informed. E-Learning is an advanced form of paradigm in this consideration which serves as an asset for training employees regarding the changes in operating procedures and technology. Likewise, LMS also serves as an important medium for providing the training related to assigning and tracking for minimizing the duplication of the efforts, especially regarding maintenance of regulation a t various branches, countries and time zone (Ornato and Peberdy, 2014) Ticket pricing, tariffs and financial reconciliation Accorinding to the regulatory issues, the pricing of air tickets have several elements. This include a base price, service tax, and other investment related to corporate social responsibilities such as realated to education, farming, health, and eco friendly approaches (Gustafson, Ivanov and Ritter, 2015) Notably, the commercial interest of airline companies are maintained with respect to base fare, which can be based on dynamic policies, related to market price, and also are based on company's pricing strategies to achieve market competitiveness. On the other hand, the tax and corporate social responsibilities related duties within the scope of pricing are determined and fixed based on the national government policies (Gustafson, Ivanov and Ritter, 2015). Conclusion Over years ICAO has developed a comprehensive facilitation program for eliminating the unnecessary documentary requirements, simplifying the clearance and handling procedures. The programs also helps in liberalisation of requirements for visa for the temporary visitors, provides machine readable passport, and clearance procedure for baggage, mail and cargo. Even IATA have been undergone constant progress in commercial and technical air transport affairs. Its procedures help the passenger to travel from one airline to other in single ticket. It has created air transport as a safer, regular and cheaper option for the public. Recommendation Within the scope of recommendations, the first requirement is linked with training and education for personnel working within the airline industries. This is critical not only for ethical practices but is also required for the safety of customers. Secondly the tax and investment to corporate responsibilities for social cause is required to support government activities for the attainment of community well-being status (Wong and Brooks, 2015). Other than this, the regulations and legislation are framed for the purpose of good practices and to make use of technological advancements for the benefit of society, which must be preserved by all the airline companies (Wong and Brooks, 2015). References Gustafson, M.T., Ivanov, I.T. and Ritter, J., 2015. Financial condition and product market cooperation. Journal of Corporate Finance, 31, pp.1-16. International Air Transport Association, 2014. IATA press release No. 57. Lindenthal, A., 2014. Aviation and climate protection: EU leadership within the International Civil Aviation Organization. Environmental Politics, 23(6), pp.1064-1081. Ornato, J.P. and Peberdy, M.A., 2014. Applying lessons from commercial aviation safety and operations to resuscitation. Resuscitation, 85(2), pp.173-176. Vasigh, B., Fleming, K. and Tacker, T., 2013. Introduction to air transport economics: from theory to applications. Ashgate Publishing, Ltd.. Wong, S. and Brooks, N., 2015. Evolving risk-based security: A review of current issues and emerging trends impacting security screening in the aviation industry. Journal of Air Transport Management, 48, pp.60-64.