AI503 Airline Management Assignment Sample

Introduction : Ai503 Airline Management

Airline management is explicated as that area of business which emphasises on managing operations at the airport. The managers are accountable for undertaking the significant management procedure that led to enhance customer satisfaction (Hassan et al, 2021). Easy Jet Airline PLC is a British multinational low-cost airline group which headquartered at the London Luton Airport. It offers international and domestic scheduled services on the 927 routes in 34 countries through its affiliate airlines EasyJet UK, EasyJet Europe and EasyJet Switzerland. This provides the short haul passenger airline services (Easy Jet Airlines, 2023). The organization uses operational efficiency, cost advantages and leading positions within the primary airport to seamlessly connect the Europe with warmest welcome in the sky, deliver the low fares. This is one of the largest airlines in the world, operating 1045 routes with the 343 aircraft across 158 airports and 35 countries. The report will critically evaluate the one airline base for Easy Jet and that is London Luton Airport. Further, it will also demonstrate on the three key detailed recommendations to develop the operations from base.

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Critical Evaluation

(Source- London Luton Airport, 2023).

The London Luton Airport [LLA] is the fourth largest airport after Gatwick and Stansted. It is a prime base for EasyJet having a significant presence of 30 aircraft, operating around 1500 flights every week and serving more than 100 destinations. LLA's proximity is to central London makes it an attractive point (London Luton Airport, 2023). However, the coordinated capacity of the airport is creating a major challenge. Despite its significant presence, Easy Jet Airlines is also experiencing the capacity constraints during the last few years. This is mainly due to an increase in airport restrictions and air traffic control issues. Hence, this leads to delays and cancellations of flights and creates a negative impact on the customer satisfaction. From the research, it has been witnessed that, there are extreme delays occurred at LLA due to inappropriate management (Cook and Billig, 2023). The flights often get cancelled and customers have been made aware of this at the last moment. There is no specific procedure followed by the team at the airport. Meanwhile, the consumer gets dissatisfied to the higher extent. Due to high traffic jams, LLA is highly busy and difficulties have been faced by the customers with regards to attending the flights.

Fleet

An airline fleet is a collection of aircraft that has been operated by an aviation company. EasyJet’s fleet at the LLA consists of Airbus A320-200 and A320neo aircraft. It has 242 aircraft that have an average age of 5-6 years (Easy Jet Airlines, 2023). The core focus is on assuring that the airline operates appropriately while minimising cost and enhancing environmental impact (London Luton Airport, 2023). EasyJet’s prime focus is on enhancing the environmental impact by reducing the level of pollution. However, there is an extreme competition at LLA due to the varied competitors of Easy Jet that flies from the same airport such as Ryanair, Wizz Air, and Jet2.com. The company has limited brand differentiation in comparison to these organisations and further a smaller number of fleets as well (An et al, 2021). Consequently, it has become extremely challenging for the company to grab the attention of consumers. Thus, it is required to ensure a specific focus on this area so that operations can be enhanced. At the airport, there is only one terminal for Easy Jet which reduces the confusion for the customers and they can easily reach to the flight.

Business model

(Source- London Luton Airport, 2023).

Easy Jet has adopted the low-cost [LCC] model and provides affordable fares to the customers and generates revenue by offering the additional services. These services are aligned with the checked baggage fees, seat selection and the sales of food & drink. The business model of airlines is designed for maximising revenue per passenger and minimising the cost. At LLA customers prefer Easy Jet due to its low pricing strategy, consumers prefer Easy Jet Airlines when they want to travel for short distances. London Luton Airport is the prime base which makes it easy for the consumers to reach the flights (Park et al, 2020). LLA has a unique ownership model. It is completely owned by the local authority. However, it is operated via the private sector and all the arrangements have been made accordingly (London Luton Airport, 2023). The headquarters of Easy Jet is at Hanger 89 at London Luton Airport however, the business model of Easy Jet creates barriers for the company to attract the consumers at this base (London Luton Airport, 2023). There are different airlines at LLA that provides premium services to the customers and they prefer those ones. The management at LLA is quite disturbing. Easy Jet keeps cancelling their flights due to extraordinary circumstances and this cannot be avoided. As a result, management at LLA gets disturbed, and cancellation of flights leads to an increase in crowd and develops varied difficulties for the consumers.

Ancillary revenue

Ancillary Revenue generated from those goods and services which are not considered as company’s core products and services. This revenue proves to be a significant contributor in Easy Jet’s overall revenue. In 2020, the ancillary revenue of Easy Jet accounted for around 35% of the airline's total revenue (Easy Jet Airlines, 2023). There are different types of services at LLA through which the company earns ancillary revenue and those are-

Checking baggage fees- Passenger at the airport prefers to pay extra for checking baggage service. Most of the customers who are concerned about their luggage pay an extra charge (Su et al, 2021).

Food and beverage- The meals and snacks it the flight have been sold; this is another way of earning ancillary revenue for Easy Jet (Easy Jet Airlines, 2023). Guest on the flight orders a variety type of drinks and snacks as per their preferences.

Seat Selection – Passenger are allowed to select seats as per their choice after paying additional fees. Many guests want different seats on the flight and they are ready to pay for this. Hence, in this manner organisation earns ancillary revenue (Bondoux et al, 2020).

Priority boarding- Guest pays for priority boarding services at the airport so they do not have to stand in long lines. However, LLA has been highly criticised due to their aggressive approach to ancillary revenue, particularly, Easy Jet (London Luton Airport, 2023).

Excessive fees- The passengers of Easy Jet have been charged with the extra fees for checking bags, and boarding passes. Even they have been charged for using Wi-Fi at the airport. These charges lead to increased expenses for passengers (Kao et al, 2020).

Lack of transparency- The Airport and Easy Jet do not provide sufficient information to passengers regarding the charges (Easy Jet Airlines, 2023). Due to this, it has become extremely difficult for passengers to make decisions and plan journeys.

Over-reliance- The airport is highly depending upon ancillary revenue and this developing a concern that profit has been prioritised at the airport instead of customer experience (London Luton Airport, 2023). Thus, there has been negative impact has been created on passenger’s experience.

Hidden cost- The passengers of Easy Jet often get surprised by the additional charges at the airport. This creates frustration among them as there is an increase in the overall cost of travel.

Inconsistent policy- There is an inconsistent application of the fees and policies that result in creating dissatisfaction among passengers (Easy Jet Airlines, 2023).

Thus, these are the loopholes at the LLA, Easy jet is famous for its low pricing and therefore, customers prefer this airline. Nevertheless, the ancillary revenue system at the LLA deploying the USP of Easy Jet by charging higher prices to passengers.

Schedule

(Source- London Luton Airport, 2023).

There are multiple flights for EasyJet at LLA, and the airline schedule has been designed in order to maximise the utilisation of its aircraft to ensure that the customers are satisfied. Furthermore, it has been assured that consumers are reaching by the flights as per the scheduled time. This enables Easy Jet to reduce its cost along with minimising the ground times and requirement of the additional aircraft (Ali et al, 2021). Henceforth, this can be stated that the scheduling system at LLA is effectual which enables customers to attend the flight. However, at times of rush or any circumstances, LLA is not able to manage the cancellation of scheduled aircraft which leads to serious issues. There is a need to adopt specific strategies so that in case of uncertainties appropriate actions could be taken and support to the customers can be ensured (London Luton Airport, 2023). Scheduling at the airport is an essential aspect as it is comprised of making services available for consumers. In case, scheduling has not been done in an appropriate manner then, this highlights the lack of efficiency of airline management (Guo et al, 2022). Based on the analysis this can be stated that there is a need to take appropriate strategies so that scheduling can be maintained at LLA specificity at the time of uncertainties.

The issues with the scheduling are persisting to greater extent and therefore, it is important to create significant focus on this area so that appropriate support can be initiated for the passengers. Henceforth, scheduling system needs to be managed by undertaking SLOT management so that effective experience can be developed for the passengers and they can prefer Easy Jet flights.

Recommendations

Below mentioned are the major recommendations for Easy Jet in order to enhance their operations from London Luton Airport-

Optimising SLOT allocation

From the analysis it has been witnessed that LLA is busiest airport and there are limited slots. Easy Jet need to optimise strategies for enhancing their slot allocation. This supports in reducing the delays at the airport and further helps in enhancing the efficacy and improving the punctuality (Varma, 2021). In order to imply this strategy, there is a need to evaluate the flight scheduling system and re-timing must be set so that appropriate scheduling can be done. Consistent collaboration with the airport authorities cab support in knowing about the loopholes and accordingly appropriate actions could be taken. The slot allocation process must be undertaken atter analysing the needs of customers so that effective decision can be taken. Technological advancement is important for enhancing the slot allocation. Therefore, slot management and real-time monitoring requires to be done by undertaking the technological advancement (Roucolle et al, 2020). This results in enhancing the management system at the base. Thus, by developing significant focus on this area SLOT management can be done in effective manner and support could be assured to passengers by reducing burden on them. The major issue at LLA is about delay in flight and by focusing on SLOT management support can be initiated for the passengers and further effective experience could be developed for them.

Enhancing passenger experience

To boost the experiences at LLA, EasyJet needs to implement consistent and clear communication passages to keep the consumer informed related to the delays, flight statuses and cancellation. Organization can develop the apps related to the consumer service to offer real time information and updates on the boarding gates, flights and baggage claims. This makes sure about the transparency related to the additional charges and fees, permitting passengers to plan the better trip. Easy jet should decrease the waiting time by regularly investing in the self-service bag drops and automated check-in’s to advance boarding procedure (Auvinen and Malinen, 2022). Organization needs to implement the automated scheduling software which can decrease the risks related to delays and optimise the flight accuracy. The issue related to ancillary revenue has been witnessed, which places negative impact on the customer. EasyJet is famous for charging fewer prices from the customers. However, extra charges at the base create negative perception in the consumer’s mind. Therefore, it is important to develop significant focus on this area so that appropriate support can be assured to customers (Ammirato et al, 2020). For instance British airways is investing in the enhancing the passenger experiences, this has increased the consumer satisfaction and boost the profitability. Consequently, Easy jet also can regular invest in the consumer experience enhancement. This can provide the different benefits to the organization and easily attract the consumers by satisfying service offerings.

The collaboration with the authorities at LLA must be made so appropriate decision regarding charging Ancillary Revenue could be taken and customer support can be ensured. The prices need to be kept minimum and so that satisfaction level of consumer can be enhanced. The organization ought to provide the developed amenities and seating options which include complimentary Wi-Fi, legroom, to boost the comfort in flights. By launching the robust system, for evaluating and collecting the feedbacks of passengers, firm can identify the developmental areas so that effectual measures can be taken on time (Thongkruer and Wanarat, 2021). This term increases the effective services and decreases the influences of loopholes within Easy Jet at LLA. The organization should boost the accessibility for some passengers, who are having disabilities, this is important. The organization can offer the dedicated services, clear signage and accessible seating via aircraft on board and airport.

The organization can make sure about the digital platform which can include the mobile apps and website; these can be mainly accessible for the consumers who are having disabilities. By developing the data analytics, this can be customised according to the different travel experiences, this includes flight recommendations and tailored promotions, also can boost the consumer satisfaction (Thongkruer and Wanarat, 2021). By introducing the programs of loyalty can provide rewards to the flyers that are using services on the frequent bases. The exclusive offers and complementary services will helpful in attracting and retaining the consumers.

Investing in sustainable operations

The Easy Jet is recommended to invest funds in the sustainable operation which seems essential to fulfil the regulatory requirement and boost the environmental impacts. The organization needs to gradually replace the aircraft with the models which are fuel efficient. This mainly includes Airbus A320neo which provides the best fuel economy and lower emissions. The organization must implement maintenance scheduling to makes sure about the aircraft functions at the optimal effectiveness. The organization can boost the utilisation of eco-friendly aviation fuel which can decrease the carbon emission. Effective partnership with the suppliers to protect the constant SAF supply and integrates in the fuel mix. By advocating for the incentives and policies can support manufacture and utilise the SAF (sustainable aviation fuel) within the aviation industry. The flight paths optimisation and reduction in fuel consumption can be developed by making use of the effective tools for flight planning and developed navigation systems (Graham, 2019). Organization can implement the practices; this can include on-going descent approaches and only engine taxiing approaches to reduce utilisation of fuel and emission at the time of landing and emission. For example, TUI is focusing on the increasing the sustainable operations, this is helping in attracting the consumers which are more focused about the sustainability. Easy jet can increase the sustainable practices by replacing the aircrafts with the fuel efficient models. This may increase the consumer base and attract them with the sustainable and eco-friendly practices.

The organization can promote and develop programs related to carbon offset which permits the passengers to contribute in sustainable programs, offsetting related to carbon footprint within the flights (Kankaew, 2022). This can increase the partnership and collaboration with the sustainable and environmental organizations to offer support in renewable and reforestation energy projects. It also can implement the programs related to waste management to boost the recycling efforts and decrease in flight waste. By inspiring the passenger to take initiatives related to waste reduction, the organization can offer the incentives to reduce use of plastics and utilisation of reusable items. The sustainable practices can boost the brand image or EasyJet and increase the sustainable commitment (Kankaew, 2022). This can attract the consumers which are more concerned about the eco-friendly practices.

The above mentioned are the major recommendations to organisation and there is need to implement collaboration with LLA as it helps in the execution of strategies in specified manner. Further, this helps in creating effective support for passengers as their experience could be enhanced to greater note. Specifically, the issues regarding delays needs to be managed so consumer experience must be enhanced on the greater note.

CONCLUSION

Conclusively this can be said that airline management is a crucial process as it is concerned with the management of aircraft and operations at the specified base. There are so many hurdles such as cancellation and delay in the flight, increasing traffic and so on develop potential barriers for LLA. From the report, it has been witnessed that, operation and the London Luton base require improvement as consumers are highly dissatisfied. LLA is not able to manage the disruption at the airport if in case the flight gets cancelled or delayed. It is the prime base for Easy Jet even though, operation management needed varied improvements. EasyJet attracts consumers with its low-price tactic.

However, the organisation is lacking in providing premium service due to which it is not able to compete with other airlines present at the same base. There is a high level of competition and ineffective operational practices can lead to developing threats for the company. Easy Jet can maintain its position as a leading low-cost airline but there is a need to take certain measures regarding the management at the base. The low-cost carrier model of organization, this can attract the travellers which are budget conscious, struggle against the premium services which is provided by the competitors. The contribution of 35% in total revenue of Easy jet and Ancillary revenue, this has showcases criticism related lack of transparency and negative impacts on the consumers experiences. Apart from the effective scheduling to boosts the use of aircraft, the management of LLA struggles with the highest rate of cancellations at peak times. To resolve the challenges and issues, the organization can focus on recommendations to boost the passenger experiences and optimisation in slot allocation. Moreover, by investing in the sustainable practices, it can boost the brand image and effective operations.

REFERENCES

Books and Journals

• Ali, N.S.Y., Yu, C. and See, K.F., 2021. Four decades of airline productivity and efficiency studies: A review and bibliometric analysis. Journal of Air Transport Management, 96, p.102099.
• Ammirato, S., Felicetti, A.M., Linzalone, R., Volpentesta, A.P. and Schiuma, G., 2020. A systematic literature review of revenue management in passenger transportation. Measuring Business Excellence, 24(2), pp.223-242.
• An, J., Mikhaylov, A. and Jung, S.U., 2021. A linear programming approach for robust network revenue management in the airline industry. Journal of Air Transport Management, 91, p.101979.
• Auvinen, T. and Malinen, M., 2022. Passenger satisfaction studies in global aviation context: trends and best practices.
• Bondoux, N., Nguyen, A.Q., Fiig, T. and Acuna-Agost, R., 2020. Reinforcement learning applied to airline revenue management. Journal of Revenue and Pricing Management, 19(5), pp.332-348.
• Cook, G.N. and Billig, B.G., 2023. Airline operations and management: a management textbook. Routledge.
• Graham, A., 2019. Aerotropolis: London's airports as experiences and destinations. In Destination London: The expansion of the visitor economy (pp. 61-89). London: University of Westminster Press.
• Guo, Y., Hu, M., Zou, B., Hansen, M., Zhang, Y. and Xie, H., 2022. Air traffic flow management integrating separation management and ground holding: An efficiency-equity bi-objective perspective. Transportation Research Part B: Methodological, 155, pp.394-423.
• Hassan, L.K., Santos, B.F. and Vink, J., 2021. Airline disruption management: A literature review and practical challenges. Computers & Operations Research, 127, p.105137.
• Kankaew, K. ed., 2022. Global air transport management and reshaping business models for the new era. IGI Global.
• Kao, G.H.Y., Wang, S.W. and Farquhar, J.D., 2020. Modeling airline crisis management capability: Brand attitude, brand credibility and intention. Journal of air transport management, 89, p.101894.
• Park, S., Lee, J.S. and Nicolau, J.L., 2020. Understanding the dynamics of the quality of airline service attributes: Satisfiers and dissatisfiers. Tourism Management, 81, p.104163.
• Roucolle, C., Seregina, T. and Urdanoz, M., 2020. Measuring the development of airline networks: Comprehensive indicators. Transportation Research Part A: Policy and Practice, 133, pp.303-324.
• Su, Y., Xie, K., Wang, H., Liang, Z., Chaovalitwongse, W.A. and Pardalos, P.M., 2021. Airline disruption management: A review of models and solution methods. Engineering, 7(4), pp.435-447.
• Thongkruer, P. and Wanarat, S., 2021. Logistics service quality: where we are and where we go in the context of airline industry. Management Research Review, 44(2), pp.209-235.
• Varma, T.M., 2021. Responsible leadership and reputation management during a crisis: The cases of Delta and United Airlines. Journal of Business Ethics, 173, pp.29-45.
• Online
• Easy Jet Airlines, 2023. Online. Available through: < https://www.easyjet.com/en >
• London Luton Airport, 2023. Online. Available through: < https://www.l

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