A study on responsibilities of employees towards Airside

safety

A PROJECT REPORT
Submitted by

ARTHAJ KHAN P

(20201BAV0085)
in partial fulfillment of the award of the degree
of
BBA in AVIATION MANAGEMENT

SCHOOL OF MANAGEMENT,
PRESIDENCY UNIVERSITY
Private University established in Karnataka, under the Karnataka Act No 41 of
2023
Itgalpur, Rajanakunte,
Yelahanka, Bengaluru 560064
MONTH & 2023
 CERTIFICATE

This is to certify that the project report entitled Study on the functions of operations control in
airline industry submitted by Arthaj Khan P to Presidency University Bangalore, in partial
fulfillment for the award of the degree of BBA in Aviation Management is a bonafide record
of project work carried out by him/her under my/our supervision. The contents of this report,
in full or in parts, have not been submitted to any other Institution or University for the award
of any degree or diploma.

Signature

Name of the supervisor

Dr. Lizy Kalaga

Guide
Sowmya Kumble
Department of AVIATION
School of commerce

Bangalore Counter signature of HOD with seal

<Month, year>
 DECLARATION

I declare that this project report titled Study on the functions of operations control in airline
industry submitted in partial fulfillment of the degree of BBA in Aviation Management is a
record of original work carried out by me under the supervision of <Name(s) of the
Supervisor(s)>, and has not formed the basis for the award of any other degree or diploma, in
this or any other Institution or University. In keeping with the ethical practice in reporting
information, due acknowledgments have been made wherever the findings of others have been
cited.

<Signature>

Arthaj Khan P

(20201BAV0085)

Bangalore-560054
<Date>
 ACKNOWLEDGEMENT

It gives me great pleasure to thank .......................... (name, designation of the guide),

Department of Commerce, for the constant support and guidance given to us

throughout the course of this project. He/she has been a constant source of
inspiration for us.

We also take the opportunity to acknowledge the contribution of Professor and

Head, Aviation, for his support and assistance during the development of the
project.

We also take this the opportunity to acknowledge the contribution of all faculty
members of the department for their assistance and cooperation during the
development of our project. We also thank all the Non-Teaching Staff of the
Department who helped us in the course of the project. Last but not the least, we
acknowledge our friends for their encouragement in the completion of the project.

ARTHAJ KHAN P
 ABSTRACT

The Airline Operations Control Centre (AOCC) of an airline company is the organization
responsible for monitoring and solving operational problems. It includes teams of human
experts specialized in solving problems related to aircraft, Crewmembers, and passengers,
which are in a process, called disruption management or operations recovery. In this paper, we
propose a new concept for disruption management in this domain. The organization of the
AOCC is represented by a multi-agent system (MAS), where intelligent agents perform the
roles that correspond to the most repetitive tasks The human experts, represented by agents that
are able to interact with them, are part of this AOCC-MAS supervising the system and taking
the final decision from the solutions proposed by the AOCC-MAS. We show the architecture
of this AOCC-MAS, including the main costs involved and details about how the system takes
decisions. We tested the concept, using several real airlines crew-related problems and using
four methods human experts (traditional way), the AOCC-MAS with and without using quality
costs, and the integrated approach presented in this paper. The results are presented and
discussed.
 TABLE OF CONTENTS

SL.NO TITLE PAGE.NO

ABSTRACT

1 INTRODUCTION 1-4

2 LITERATURE 5-21
REVIEW

3 DATA ANALYSIS 22-32

FINDINGS
4 AND 33-34
CONCLUSION

BIBLIOGRAPHY 35-36
 LIST OF FIGURES

SL.NO TITLE PG.NO

INTEGRATED
1 AIRLINE 11
OPERATIONAL
CONTROL CENTER

2 AOCC DECISION 12
CENTER

3 AOCC DECISION 13
CENTER WITH HUB

4 INTEGRATED AOCC 13
WITH HUB

5 SOCC 20
INFORMATION
FLOW CHART

6 TYPICAL AOCC 31
PROBLEMS AND
RELATIONS
 ABBREVIATIONS/ NOTATIONS/ NOMENCLATURE

• AOCC: Airline Operations Control Center

• MAS : Multi-Agent System
• DM : Disruption Management
• DIAL : Delhi International Airport Pvt Limited
• FIDS : Flight Information Display System
• AODB : Airport Operational Database
• IGI Airport: Indira Gandhi International Airport
• A-I : Air India
• CDM : Collaborative Decision- Making
• AOCP : Airline Operations Control Problem
• HOCC : Hub Control Centre
• FAA : Federal Aviation Administration
• IROPs : Irregular Operations
• IFR : Instrument Flight Rules
• VFR : Visual Flight Rules
• ILS : Instrument Landing Systems
• FARs : Federal Aviation Regulations
• SOCC : Station Operation Control Center
• MOC : Maintenance Operations Control
 CHAPTER 1

INTRODUCTION
1.1 BACKGROUND OF THE CASE

In the modern era, the airline industry is contributing a lot to the growth and development of the global economy. Over
the past few years, the travel and tourism industry has witnessed significant growth and airlines can be termed as the
most prominent supporter of the entire industry. In monetary terms, it can be expressed that the aviation industry
contributes 3.5% to the total gross domestic product of the world. The contribution of the airlines industry can be also
understood by the fact that every year more than three billion people make use of the services provided by the industry
(Shaw, 2016). Apart from this, the industry also contributes to economic growth indirectly by creating potential
employment opportunities. Nowadays, the airports are no longer restricted to a place or particular point of departure,
and now, leisure facilities such as dinning, shopping, relaxation and much more are offered.

However, it can be critically argued that irrespective of the fact that the industry is contributing significantly to
economic growth; these days, there are several challenge that the industry is facing. The problems have started creating
several obstacles in terms of achieving higher growth and objectives. For example, the companies operating in the
airline industry are facing issues linked with management of human resources. This has further resulted in affecting the
way in which services are delivered to customers. The rate of employee turnover is increasing and this can be
considered a major threat in long-Term growth and sustainability of the airline companies. In the present scenario,
human resources are considered as the vital asset for any business enterprise.

Effective management of staff members will aid in carrying out the smooth flow of all operations and business activities
in the long run. It can be expressed that the rate of employee turnover is increasing because of factors such as rising
discrimination practices and inadequate pay in the industry. These factors have resulted in creating a high degree of
dissatisfaction among workers and, at the same time, have encouraged these individuals to quit their job and move to
other industries. Apart from this, changing technology at frequent intervals has also emerged as a major challenge for
the companies operating in the airline industry. In order to remain competitive in the marketplace, it is required by
businesses to adopt new technology or upgrade their existing technology at frequent intervals. This results in increasing
the overall operational cost that is a big threat for companies.

In addition to this, rapid technological changes also adversely affect the profit margin of the airline businesses. Even
after adopting new technology, organizations are required to invest large amounts of human, financial, and other related
resources to provide training to staff members in terms of using the technology. Frequent training programs also results
in developing a sense of dissatisfaction among workers and, thus, hampers their overall productivity to a great extent.

Nowadays, the competition among businesses operating in the airline industry has become highly intense. This has
resulted in creating different types of obstacles for these Organizations. For instance, companies are now required to
invest large amounts of resources in marketing and promotion activities to attract more and more customers.
Furthermore, the airline companies are required to offer high quality services at low cost to attract new customers,
which is not an easy task. In the modern era, the bargaining power of customers in the industry is very high as there are
several options and alternatives available for them. Increasing and intense competition is a threat because it forces the
existing business to constantly focus on improving service quality and innovation, which is never easy when the profit
margins are low. Attaining a high degree of customer satisfaction in the long run has become very complicated for the
companies operating in the airline industry.

1.2 RATIONALE

The main aim of conducting the present study is to identify various issues faced by the airline industry. It can be
expressed that issues such as changing economic conditions, intense competition, rising fuel prices, etc. have created
obstacles for the businesses in the airline industry (Top 10 Airline industry challenges, 2017). To sustain in the long run,
it is required by airline companies to develop and implement effective strategies that can support in overcoming the
critical issues. Issues such as increasing prices of fuel have adversely affected the profitability of businesses operating in
the airline industry. It can be expressed that developing effective strategies and action plans to deal with these issues is

now vital for companies in the airline industry. It will become highly difficult for organizations to carry out smooth flow
of their operations and achieve. The desired volume of sales and profitability in situations where effective strategies are
not developed to deal with the highlighted issues and challenges in the study.

Nowadays, the customers are equipped with a wide range of options and alternatives to choose from and the rationale
behind this is considered as intense competition among businesses. The companies in the aviation industry need to focus
on developing strategies to lower operational cost so that they can offer airline services at low or competitive prices
(Belobaba, Odoni and Barnhart, 2015). Another reason behind conducting the present research is to identify different
ways through which businesses can overcome these issues and ensure long-term sustainability. With the ever increasing
pace of industry, challenges due to globalization have adversely affected the companies that are operating in the market.
Every company has started to take corrective actions for dealing with the issues faced as challenges such as competition,
legal barriers, etc. affect the profitability and sales volume of the companies.

1.3 AIM AND OBJECTIVES

“To identify the key challenges faced by the airline industry”

Objectives

• To determine the present scenario of the airline industry

• To identify the key factors that have introduced challenges in the airline industry

• To determine the current issues faced by the airline industry

• To recommended ways through which the airline industry can overcome challenges and attain better
growth

1.4 RESEARCH QUESTIONS

• Explain the present scenario of the airline industry.

• What are the key factors which have introduced challenges in the airline industry?

• What are the current issues faced by the airline industry?

• What are the ways through which the airline industry can overcome challenges and attain better
growth?

1.5 SIGNIFICANCE

The present research is essential because it will help in identifying and understanding the current issues faced by the
airline industry. The increasing air traffic and competition have resulted in affecting areas such as sales and profitability
of the businesses. The emergence of low-cost airlines such as Southwest Airlines, JetBlue Airways, Spirit Airlines, and
United Airlines has resulted in making the entire industry highly competitive. The pressure on existing market players
has increased to a great extent, and the competition has emerged as a threat to the entire industry. The cost of operating
in the industry is very high, and thus, companies can sustain only when they are able to attract the desired number of
customers and profitability. The present study is significant because it will help in understanding the key issues that are
being faced by the companies operating in the airline industry. This research will support in carrying out in-
Depth analysis of the entire industry to understand different types of issues and challenges the airline industry is going
through.

This study will play a critical role in determining effective strategies that can help organizations in the airline industry
deal with the current issues. For example, problems such as low margins and fares can be overcome by introducing a
product, service, or facility that no other player in the market is offering. The business will be able to gain a competitive
advantage over other companies by introducing unique services and attracting customers. The study will be very helpful
for the companies operating in the airline industry and other related businesses. The reason behind this is that the study
will provide companies with reliable and valid information about different types of strategies and techniques that can be
used to deal with the existing challenges and issues. Businesses will be able to carry out smooth flow of all their
operations and activities by using the recommendations provided in the current study. Long-term growth and
sustainability can be accomplished by working upon or implementing the strategies that will be provided in the present
research.

1.6 FRAMEWORK AND ANALYSIS

To carry out the present research in an efficient and satisfactory manner, both primary and secondary sources of data
collection will be taken into consideration. The primary data will be collected through 101 respondents from different
airline companies at the Dallas-Fort Worth Airport. The reason behind selecting these current employees is that these
individuals will be able to provide more accurate and reliable information
About the current issues their company is facing. In addition to this, data from different airline companies will support
in enhancing the overall quality of information.

At the same time, the researcher will be available with adequate and more diverse data that will further assist in carrying
out an in-depth analysis of the topic under investigation. In terms of secondary sources of data collection, different
journals, books, and online sources linked with the aviation industry will be taken into consideration to acquire quality
and reliable data. The researcher is going to have a limited amount of resources like money and time, and therefore
using both sources will help in conducting the entire study in the best possible manner.

The data analysis In the present study will be carried out with the help of a qualitative technique of data analysis. Here,
the collected information will be presented by using different charts and diagrams. However, the analysis of data
gathered from various sources will be carried out using the thematic method of qualitative data analysis. All the aspects
linked with ethics will be accomplished in the study.

1.7 STRUCTURE OF THE THESIS

The structure of study reflects the entire way or process in which the study will be completed. Every researcher needs to
develop an appropriate and suitable structure for carrying out the whole research. The benefit of the structure is that it
provides guidelines and directions to the researcher in terms of how the study can be conducted efficiently to attain the
aim and objectives. The structure of the current study is provided below as:

Chapter I: Introduction. It is considered as a significant chapter of the study as it reflects an overview of the entire study
carried out. This section includes essential elements such as aim, objectives, rationale, and significance of the research.
This section is considered as critical because it supports the readers in getting an overview about the entire study being
carried out. Brief information about the research can be obtained by the researcher as well as the readers with the help of
this chapter.

Chapter II: Literature Review. It is the second chapter of the study that reflects the work and studies carried out by other
researchers with respect to the topic undertaken for investigation. This section is crucial as it helps the reader get insight
into the topic and become aware of the concepts associated with the same. Here, critical analysis of the work carried out
by other researchers and authors is presented to develop in-depth knowledge about the topic selected for investigation.

Chapter III: Research Methodology. The tools and techniques linked with the entire study are mentioned in this section.
Tools such as research design, philosophy, and approaches to data collection, data analysis, and sampling are reflected
in this section. This section is critical because the process of data collection and interpretation are affected by the same.
It can be expressed that the selection of right tools and techniques is vital in terms of accomplishing the objectives and
aim of the study. At the same time, the overall findings of the study are affected by the kind of tools and techniques
selected by the researcher to carry out the entire research. It is also suggested that the selection of research methodology
should be carried out based on the aim, objectives, and nature of the study.

Chapter IV: Data Analysis. In this section, different tools and techniques are used by the researcher to carry out the
evaluation of information collected from the primary and secondary sources. It can be stated that at the time of selecting
the technique for data analysis, a researcher is required to be very careful as the entire findings of the study are affected
by the chosen technique. It is very important for a researcher to make sure that the appropriate technique of data analysis
is selected while carrying out the study.

Chapter V: Conclusions and Recommendations. In this section, the findings of the study are reflected in the form of the
conclusion. In addition to this, recommendations and suggestions are provided for further improvements.

CHAPTER II

LITERATURE REVIEW

2.1 INTRODUCTION

It is one of the most important parts of the thesis that undertakes critical review of various authors and through this
research is carried out in proper manner. In every type of research, it is quite necessary to undertake reliable sources so
that expected findings can be easily obtained with the help of this. The present study carried out is based on identifying
the different types of challenges faced by the airline industry in the modern era. Further, there is no doubt that the airline
industry is facing severe challenges and this is adversely affecting the operations carried out by the businesses operating
in this sector. So, in this regard views of different authors and experts have been undertaken in order to better explore
the key challenges in the aviation industry.

2.2 DIFFERENT TYPE OF CHALLENGES FACED

According to Belobaba, Odoni and Barnhart (2015), the global airline industry is full of challenges and the range of
issues present directly affects the operations of the companies operating in the airline industry. In the modern era,
competition is one of the main barriers faced where a large number of airline companies are operating at a global level
and this has somehow harmed the operations carried out by every company in the market. Every company operating in
the market is offering the same type of services. Especially in the case of small companies, they are not able to survive
in the market due
To the presence of tough competition and, in turn, survival of the companies has become a little bit difficult. In order to
deal with the issue of high competition, airline companies are focusing on developing corporate strategies so that their
long-term survival can take place easily through this (Borenstein and Rose, 2014).

Rising competition in the airline industry is directly preventing small and medium sized companies to carry out their
operations and sometimes many companies have to shut down their operations due to the presence of high competition
in the market. According to Misopoulos, Mitic, Kapoulas and Karapiperis (2014), no doubt investment in the aviation
sector is quite high but by seeing different types of opportunities, companies are operating in this sector and they are
rendering airline services to the customers in the market. The challenge associated with competition is quite high in the
modern era as compared with the past and it has acted as one of the main hurdles for the businesses that are operating in
the market.

Apart from this, to deal with the issue of rising competition in the market it has become necessary for the company to
highlight some unique features in its service range so that long-term performance of the companies can be well
maintained with the help of this. In short, competition as one of the barriers can only be tackled if businesses are
offering some unique service and this sometimes becomes one of the main reasons behind the success of aviation
companies in the market (Choi, Lee and Olson, 2015). To deal with the high level of competition is not at all a
challenging task and it can only be Tackled if proper strategies are present with the companies that lead to long-term
survival in the market.

The low cost carriers operating in the market are adversely affected due to competition prevailing in the market. The
direct impact of competition is on market share and revenue level where companies are not able to operate as per their
real need. Sometimes, the challenge associated with high competition is unmanageable by the companies and due to this
reason, they have to shut down their operations. Like in the case of Air India, it is ranked as the third worst performing
airline in the world where its service quality is below the expectation level of the consumers (Eaton, 2017). Apart from
this, some other companies such as Frontier Airlines and US Airways are also considered one of the worst airline
companies in the world. The main issue is that these companies are not able to meet the expectations of the target
market. In the airline industry, meeting the expectation of the customer in service quality and price is an important role
to identify the success of the airline companies.

According to Abdelghany A. and Abdelghany K. (2016), customer expectation is one of the challenge faced by the
airline companies, where expectations of the customers are rising at a faster pace. Every company has to adopt some
effective strategy to comply with the expectation of the target market and this allows them to operate for longer periods
of time in the market.

However, Shaw (2016) argued that the entire airline industry is a high priced market, where a majority of the large sized
organizations is offering services at a higher Price. This is also one of the challenges where airline companies are not
able to recover the main costs by offering services at a lower price and this is one of the challenges faced by them.
Pricing in the airline industry is considered highly complex. One of the ultimate outcomes of the complexity is
substantial price dispersion (David, 2013). Overall, the cost of carrying out operations in the airline industry is high and
this enhances overall cost in this type of market. Prices are not at all under the control of the companies, as they have to
bear large numbers of costs such as fuel prices, etc.

As stated in Lee, Seo and Sharma (2013), different ways are present through which airline companies practice price
discrimination. Paying extra for seats with more leg room is one of the ways in which airline companies charge a high
price from the customers and it is also one of the main sources of income for a majority of the companies. Like in the
case of Ryanair, the company is most famous for charging extra, such as for check-in luggage. This illustrates that the
consumers that are less sensitive to price may prefer to enter into the flight early and be ready to pay (Bazargan, 2016).
Further, the majority of the costs in the airline are fixed costs that take into consideration landing, fuel, wages, etc. With
the motive to enhance the sales volume, the airline companies mainly focus on selling more and more tickets with the
help of attractive offers and this contributes a lot in enhancing the overall performance in the market.

However, Bilotkach, Gaggero and Piga (2015) argued that fluctuations in the fuel price is also one of the challenges
faced by the airline industry where sometimes the overall rise in the prices of the fuel adversely affects the situation of
airline companies Operating in the market. Sometimes the drop down in the fuel prices allows companies to earn high
revenue and the organizations are able to earn income as per their actual need in the market (Kleymann and Seristö,
2017). Further, it is a well-known fact that fuel related cost is a major one for the airline companies and to manage this
type of cost the companies have to apply large amounts of effort so that it is possible for them to maintain their revenue
level for longer periods of time. If the price of fuel rises too high, sometimes companies are not able to recover major
costs and it directly leads to decline in the actual level of performance. However, Gegg, Budd and Ison (2014) argued
that rising fuel price, as one of the challenges is not under control of the airline companies. One of the main possible
solutions to deal with this type of challenge is to enhance the revenue level where airline companies have to adopt
different strategies through which it is possible for them to bear the rising cost of fuel price.

The challenge linked with the chan”Ing need and requirement of the target market is another challenge for the airline
industry at the global level. In accordance with Ford and Despeisse (2016), the expectations of the target market changes
at a faster pace. It has been witnessed with the rise in the level of modernization, customers expect services that are most
convenient for them and match with their actual expectations in the market. This has directly acted as a hurdle in front
of the airline companies. Presently, it has been witnessed that customers perceive airline companies in a negative
manner as the aviation sector has a high impact on the environment. The airline companies are responsible for air
pollution, and, due to this reason, they are perceived adversely by society (Taneja, 2017). Therefore, it is also one of the
challenges faced by the airline companies operating.In the market where they are not able to change the perception of
the customers. Apart from this, regarding security, safety, comfort, etc. the expectations of the target market are also
high where it has been witnessed that customers prefer to purchase services of the company that can provide high
quality service. In case of low cost airlines, it is quite difficult for them to satisfy the requirement of the target market
linked with convenience, comfort, etc. as they have limited funds to invest in different types of activities. So, this
directly acts as a hurdle for the companies in the market. As reported by Eaton (2017), the range of challenges faced by
the airline companies directly influences its operations and they have to modify services accordingly so that long-term
market performance can be maintained with the help of this.

At the global level, some companies are operating on a smaller basis and some are operating on a wider basis. So, airline
companies have to carry out operations on their size (Lim and Hong, 2014). The small and medium sized airline
companies are not able to deal with the competition challenge in the market and sometimes, due to this issue, they have
to shut down operations. Further, it has been identified that large sized firms have the capability to deal with the issue of
competition in the market and their strategies are considered to be quite effective which contributes a lot in managing
their market performance for longer period of time. According to Lawton (2017), updated technology is also one of the
challenges that are faced by the airline industry where it has been identified that technology keeps on changing where
new and advanced tools are introduced that airline companies have to adopt for carrying out overall operations. In the
Modern era, it is necessary that every airline company must have its own application. Through which customer booking
can be done easily. If any organization does not operate with the market trends in terms of technology, then it has a
direct impact on the overall performance of the airline company and sometimes it leads to the decline in the overall
performance.

With the rising globalization the overall challenges in the airline industry is rising at a faster pace where every airline
company operating in the market has to search for the best alternatives through which it is possible to deal with the
challenges that affects its overall operations. The ability to deal with the different challenges has a positive impact on
the overall performance of the businesses and acts as a development tool, also. According to Oster, Strong and Zorn
(2013), air traffic is also one of the challenges faced by the airline industry. With the rising level of competition in the
market, air traffic is rising at a faster pace where airplanes of different companies are present in the market. So, this is
also one of the challenges that prevents airline companies from carrying out overall operations in the market. There is a
lack of airplanes to handle the increase in the demand from customer’s side and due to this reason, new airplanes are
needed and this leads to a rise in air traffic level. For meeting the overall demand of the target market, every company
has to operate through different airplanes.

In line with Fraher and Gabriel (2014), the airline industry is highly regulated where large numbers of legal laws and
regulations have been developed by the government and it is necessary for every airline company to follow such laws to
operate Smoothly in the market. Complying with the legal laws and requirements directly act as a hurdle for the airline
companies where they are not able to focus on their real operations.

With the rise in the level of challenges in the entire airline industry, the direct impact has been seen on the airline
companies that are operating in the market. For small companies, competition is one of the barriers they face. Further,
more companies are entering into this market that are offering almost the same type of service (Button, 2017). The main
difference lies in the quality of the services for the established players in the airline industry. Due to high levels of
competition prevailing in the market, it has become quite difficult for the businesses to focus on their main objectives
associated with enhancing sales volume, profitability, etc. The main features of the airline industry involve low profit
margin and the high fixed cost. In order to recover the main costs, a majority of the businesses are focusing on offering
discounts on the fares so that the overall sales volume can be enhanced.

Considering the example of different nations, like India, where the airline industry is facing a large number of
challenges. High aviation turbine fuel price is the challenge. At present, the cost of fuel for the Indian companies
account for 45% of the total operating cost. High tax is being applied on aviation turbine fuel by the state government
and this directly proves to be costly for the businesses operating in the market (Mallikarjun, 2015). This situation is not
at all under the control of the airline companies in the market, as taxes and other forms of duties are imposed by the
government, and the entire industry has to comply with such practices in order to operate smoothly. Apart From this, in
the Indian market airport charges are also quite high compared with the other nations. High service tax is another issue
where, at present, 12.36% of ticket fares are for service tax. The range of aviation companies operating in the market
mainly takes assistance of third party for different types of operations such as catering, aircraft maintenance, etc. (Grant,
2016). Therefore, the service tax on the air ticket and the services purchased by the operators in the airline industry adds
to the operating cost.

Further, it is a well-known fact that technological advancement in the aviation industry is quite high and this has acted
as one of the challenges where a majority of the companies has to adopt the latest tools for operating in the market.
Generally, technology adoption is considered significantly costly for the businesses operating in the market. Some
airline companies that are operating on a smaller basis are sometimes not able to adopt the latest technology for
conducting operations and this leads to a decline in the overall level of the performance in the market. If any company is
not able to adopt the latest tools for conducting overall operations, then it has an adverse impact on the overall
performance (Wittman, 2014). Adoption of the latest tools has significantly become necessary for the airline company
and this is the main significant challenge in the airline industry. Businesses in the airline industry have to invest a large
amount of funds in adopting advanced technology to deal with the changing market trend.

Emergence of substitutes in the airline industry is also one of the challenges where in countries, like India, the substitute
for air travel is railways, where many new trains have been introduced with high quality services and the majority of the
passenger Consider this as a good option as compared to the air travel (Robinson, Fallon, Cameron and Crotts, 2016).
Therefore, this challenge is also major for the Indian airline industry where the presence of a large amount of substitutes
is directly preventing different companies from conducting overall operations in the market. For dealing with this issue,
every company is indulged into the practice of offering differentiated service so that it is possible to attract customers in
large amounts and this contributes a lot in satisfying the need of the target market in a proper manner.

At the global level, the security and safety related challenges in the airline industry is quite high. Further, terrorist
related activities are mainly targeting the aviation industry and this is one of the security concerns (Daft and Albers,
2013). The challenge is to keep a balance between comforting security and the invisible security. Despite the presence
of attacks, it is necessarily required to consider that industry is ultra-safe and safety can be one of the main pressures in
the near future.

Delivering remarkable experience to the target market as per their real expectation is also one of the challenges where it
has been identified that passenger experience is the main issue for the airport operators and the owners. Further, it is a
well-known fact that customers spend a majority of the time in an airport and it is necessary for the airline industry to
ensure that airports are designed properly, keeping in view the convenience of the customers (Iatrou and Oretti, 2016).
This involves delivering them proper food service, luxury brands, etc. that can satisfy the need of the customers in a
proper manner. Development of airports as per the expectations of the customers is necessary and then,
Only they can be easily influenced to purchase the services of the airline companies. If the airports are not effective
enough in providing a proper experience to the target market, then the demand for airline services will significantly
decline and it will affect the entire airline industry.

Sustainability related challenge is adversely affecting the entire aviation industry. Further, it is a well-known fact that
the impact of the airline industry on the environment is very high as air pollution is rising at a faster pace. Carbon
emissions are one of the issues that have become one of the biggest challenges for the airline industry (Harvey, Williams
and Probert, 2013). Due to a rise in the level of air pollution, issues are rising at a faster pace, such as global warming.
With this issue, society has started to perceive the airline industry negatively. Further, there is no such option present
with the airline companies to deal with the issue of rising air pollution and they have to only adopt the latest tools like
advanced aircraft engines that produce less pollution.

Rising air traffic is linked with flight delay, where it has been identified that the delay results in time cost, money cost
and it discourages a large number of passengers (Wheeler and Bozhko, 2014). Many companies are trying their best to
deal with the issue of flight delays but no such significant solution has been identified. With the rising issue of flight
delays, customers do not prefer to travel through this source.

The global airline industry will face tough competition in the coming year, mainly due to expansion of low cost carriers
and the overall growth of the airlines that are operating in the Middle East. The companies that are operating in the
Middle East have a Competitive edge on international routes as they are properly funded and fuel cost is lower (Pearson
and Merkert, 2014). Rising competition levels have significantly affected market share and profitability of the airline
companies operating in the market.

In a country like India, poor infrastructure is one of the challenges faced by the airline industry. Only some of the
airports in India are developed like those of Delhi, Hyderabad, Mumbai, etc. and in other areas, the facilities are not at
all appropriate as per the customers’ expectations in the market (O’Connor, Flin, Fletcher and Hemsley, 2017). This is
one of the challenges for the Indian airline sector that sometimes prevents customers from accessing the airline sector,
which has led to downturn of the entire sector. No doubt, the government of India is looking into initiatives for
developing infrastructure of different areas but it will take lots of time.

In short, the overall presence of challenges in the airline industry is the main downturn of the entire industry and it is the
moral responsibility of every company to take corrective actions so that the overall impact of challenges can be reduced
and, in turn, the growth of the industry can take place easily. Challenges present in the sector are affecting every
company whether it may be big or small. Generally, low cost carriers are highly affected due to the presence of
challenges as compared with the businesses that are operating on a very large scale. The rising customers’ expectations
are also not under control of the airline companies and they have to work on different plans so that customer’s
requirement can be met easily and in a proper manner (Boyd, 2016).

Customers are interested in purchasing high-class services that provides them a luxurious experience. So, it is not at all
possible for the low cost airline to develop a high- class service, but the challenge is finance related. An adequate

amount of funds is needed for developing high-class services and this level of customer satisfaction is maintained by
every company in the market.

Fuel price, government regulations, and airport security are the main cost drivers in the airline. It has been witnessed
that high instability is present in the fuel prices and airline companies are adversely affected. Sometimes many of the
companies are not able to bear the cost associated with rising fuel prices and they have to bear high losses instead. A
majority of the companies are searching for different ways where they can easily save cost and in turn, their profit
margin can be enhanced.

Many of the airline companies view customer retention and loyalty as one of the biggest challenges at the time of
conducting their major operations (Hu, Caldentey and Vulcano, 2013). Due to the presence of tough competition,
businesses are not at all able to retain customers for longer periods of time. Some promotional methods and other
schemes have been introduced by the companies so that it may be possible for them to attract customers. For example,
in the Indian market, Indigo mainly focuses on offering low fares to the customers and this is the main reason in which
the revenue of the company is a little bit stable. Apart from this, airlines operating in areas such as Europe, the Middle
East, and Africa, etc. perceives government regulations as one of the challenges they face (Pearson and Merkert, 2014).
It has been identified that the global

Airline industry is highly regulated such that safety challenges are present in high amounts and this, in turn, has acted as
a main issue for every company operating in the market. Complying with the government laws has acted as a main issue
for the companies in the market.

In the modern era, there are several issues and challenges that the airline industry is facing. These challenges are
creating various obstacles for the businesses in terms of accomplishing their goals and objectives. The organizations in
the industry are facing issues linked with labor unrest, which adversely affects the business operations and activities to a
great extent. The walkout of pilots and other crew members has resulted in creating different types of restrictions for the
airline industry in terms of delivering fast, accurate, and satisfactory services to customers (Boyd, 2016).

Increasing the rate of employee turnover is another major HR-related issue that has been faced by the companies
operating in the airline industry. These organizations invest a massive amount of financial and other related resources
for hiring staff members and offering training to them. However, it can be critically argued that these businesses start

suffering from heavy losses due to the increasing rate of turnover after investing a massive amount of resources.
Managing diversity in the workplace is another important issue that companies operating in the airline industry are
facing. It can be expressed that managing workplace diversity is very important for the long-term development and
success of companies. At present, businesses are not able to achieve success in managing diversity and this situation is
creating several complexities for the brands.

2.3 STRATEGIES TO CARRY OUT SMOOTH FUNCTIONING OF

OPERATIONS WITHIN THE AIRLINE INDUSTRY
It can be stated that the development of effective strategies has now become vital for carrying out smooth functioning of
the businesses operating in the industry. Increasing competition can be termed as the key challenge that companies are
facing. To deal with this issue, the organizations can emphasize developing and offering innovative services and
products to customers (Daft and Albers, 2013). The strategy is useful, as it will help in attracting more and more
customers as the company is offering something unique which no other player in the market in offering. However, it can
be critically argued that developing innovative services is not an easy task for companies, as intense amounts of
resources are required to be invested during that time. It can be expressed that innovation has become very important for
organizations to gain competitive advantage over other players operating in the industry (Choi, Lee and Olson, 2015).
Here, in-depth market research can be carried out to understand the gap in the market and carry out the development of
innovative services or products to fill those gaps. To deal with the issue linked with increasing air traffic and pollution,
sustainable practices can be adopted by organizations. It has been observed that changing technology has emerged as a
major issue for companies in the airline industry.

To deal with this issue, companies can adopt different types of tools and techniques linked with change management.
The benefit of using change management tools is that these tools will provide organizations with an opportunity to
implement and Manage changes in the desired manner (Lee, Seo and Sharma, 2013). At the same time, businesses will
be able to encourage adequate corporation and support from the staff members, which is critical in terms of managing

changes. Decreasing the rate of staff turnover can be accomplished by restructuring the human resource policies and
plans. The airline companies can focus on areas such as training and development of employees so that their skill set and
knowledge base can be enhanced.

The benefit of using this strategy is that it will assist the workers in acquiring better opportunities for growth and
development in the long run. Monetary and non- monetary rewards can be offered to staff members against the
performance delivered by them. This will develop a strong sense of satisfaction among employees and will encourage
them to give their best towards delivering satisfactory services to all the customers (Eaton, 2017). To meet the customer
expectations, market research can be conducted at regular intervals. Market research will assist in awareness about the
changing demand and need of customers. Based on the data collected, the airline businesses can carry out changes in
their products, services, and overall strategy to develop a high degree of satisfaction among its customers. The strategy
will also play a vital role in enhancing the degree of customer loyalty and retention to a great extent.

Nowadays, the companies operating in the airline industry are forced to offer products and services at prices that are low
(David Mc A, 2013). The increasing competition and entry of low cost airline can be termed as the two major factors,
which have resulted in this kind of situation. To overcome this issue, companies can focus more On areas such as
technology. Modern marketing tools and techniques can be implemented to create more and more awareness about
products and services among people in the marketplace (Boyd, 2016). The rationale behind suggesting modern
marketing tools is that these tools are considered as very cost effective. The businesses are required to understand the
facts that upgrading technology will increase cost in the short run but it will provide several benefits to companies in the
long run. The speed of delivering quality and satisfactory service will enhance by upgrading technology. At the same
time, automatic process linked with service delivery will result in lowering down the cost of operations in the long run.

CHAPTER III
 RESEARCH METHODOLOGY
3.1 RESEARCH APPROACH

Research approach is denoted as the plan and actions for study that extend the steps from comprehensive assumptions to
the detailed methods that would be used for the analysis, collection of data, and their interpretation. It also takes into
consideration taking several decisions so that research can be carried out in an appropriate method (Banister and Booth,
2005). Research approach provides the base to the study and assists in attaining accurate findings as expected by the
researcher. Basically, there are two different types of research approaches that have been used by the researcher for
conducting the study namely inductive and deductive approach.

For the present study, the researcher has adopted the inductive approach in which they focus on general assumptions
then come to the specific as it applies to the industry. The present topic focuses on assessing the key challenges faced by
the airline industry. In order to assess the challenges, the researcher uses the help of the inductive approach, which the
researcher has framed around the aims and objectives. With the selected research approach, the researcher explores new
phenomenon related to the topic so that they can easily attain the objective of the study. It has been stated that this
research approach is connected with the qualitative research that depends on the findings that is derived from the
conducted literature review.

3.2 RESEARCH PHILOSOPHY

Another specification within the research methodology is the philosophy that mainly acts as the key beliefs and
assumption of the researcher related to the study. However, it also focuses on the phenomenon related with gathering
and analysing the data and information (Novikov and Novikov, 2013). Research philosophy directly progresses the
relationship between data collection and the knowledge process in research so that they can easily attain the desired
aims and objective of the study. There are a range of philosophical approaches that are linked with the research, which
mainly includes interpretivist and positivism philosophy.

For carrying out the present study in a proper manner, the researcher focuses on interpretivist philosophy in which the
researcher interprets the gathered information and data from primary and secondary sources (Munkejord, 2009).
Interpretivist philosophy helps the researchers to infer elements of the research by counting human interest so that they
can easily attain the objectives. Under this, the researcher assumes that access of original information can only be found
via social construction like shared meanings, languages, etc. Therefore, with the help of this research philosophy, the
investigator can easily determine the different social construction regarding challenges and issues faced by the airline
industry.

3.3 RESEARCH DESIGN

Research design is defined as a plan or blueprint of the entire research that help the researcher to direct their actions
accordant with the path so that they can attain Desired result and objectives. Along with this, proper research design
would help them in obtaining proper responses to the devised research questions (Hansen, 2011). In short, it can be
stated that it provides direction to the researcher for their entire study. There are different forms of research design that
must be used by the researcher for carrying out the study, which mainly includes descriptive, exploratory, experimental,
and correlation research design techniques.

Through considering the present investigation, the researcher put an emphasis on selecting the exploratory research
design technique. This technique is based on examining the data by the formulation of a hypothesis and finds the
relation between variables (Dey, 2002). Along with this, the selected research design technique has also assisted the
researcher in exploring the facts associated with the selected topics that are key challenges faced by the airline industry.
The research purpose of this design is that it provides insights to information related with the situation. Therefore, the
key benefit of implementing exploratory research design techniques is that it helps the researchers in exploring and
discovering new information because of less restrictions in the methodology.
3.4 DATA COLLECTION

Data collection plays a pivotal role in the study as it assists the researcher in collecting and gathering information from
the various sources that directly help them in gaining accurate findings. However, prior to collecting the data, the
researcher focuses on determining what kind of data or information is required to attain the objectives and Research
questions. There are two sources through which the researcher can easily collect the data and information and that is
through primary and secondary sources (Banister and Booth, 2005). The key source of data collection is the primary
source in which the researcher accumulates the raw data from the original source that increases the reliability and
accuracy of the information. The key advantage of expending the primary source in the study is that this researcher
helps accumulate the precise information that links with the title of this study. On the other hand, another source of data
collection includes the secondary source that focuses on gathering information from the published journals and books.
This form of data collection method is already published by the other authors and researcher.

For carrying out the present study, the researcher focuses on both of these sources. For the primary information, the
researcher engaged in devising the questionnaire so that they can easily accumulate the data and information
(Amaratunga and et.al, 2002). On the other hand, the secondary source is also used within the study; in which the
researcher reviews the articles and journals published by other authors. Therefore, with the help of using both the
sources, the researcher would easily acquire the information regarding the key challenges and issues that are faced by
airlines in the industry.

3.5 SAMPLING TTECHNIQU

The sampling is defined as an effective process through which the researcher easily selects the unit or sample from the
entire population from whom they may easily Acquire the data and information regarding key challenges that are faced
by the airline industry (Scruggs and Mastropieri, 2006). However, the selected sample acts as the representative of the
whole population from which they can easily draw the required information so that overall aims and objectives of the
research can be easily attained. There are different types of sampling techniques that have been used by the researcher,
which includes simple random sampling, stratified sampling, cluster sampling, etc. All these sampling techniques play a
significant role within the study as it assists the researcher in selecting the proper sample for the study. The most
commonly used sampling technique is simple random sampling in which the researcher randomly selects the sample
from the overall population so that each and every participant has a fair chance of being selected into the sample. On the
other hand, cluster sampling is also being used within the study as it is considered as a cost effective technique for
selecting the respondents for the study.

For the present study, the researcher has adopted a sampled same employees from all airlines from the Dallas-Fort
Worth airports. Under this sampling technique, the researcher divides the whole population into groups known as strata.
Each of the groups mainly relies on similar attributes and characteristics of the individual members (Novikov and
Novikov, 2013). With the help of the stratified sampling technique, the researcher engaged in grouping the sample by
employees of different airline companies from whom they would accumulate relevant information regarding the key
issues and challenges faced by airlines in the industry.

3.6 SAMPLE SIZE

The selected sample size for the present study is 101 respondents from more than 10 different airline companies from
whom they accumulate the data and information regarding the airline industry. The selected samples are the current
employees of airline companies that engage in performing day-to-day activities within the airline. However, airline
operational managers are the ones that manage the external and internal environment so that they may easily assess the
associated factors that drive challenges within the airline industry.

3.7 DATA ANALYSIS

Data analysis focuses on presenting the findings of primary and secondary research that encompasses the analysis of
both data that is qualitative and quantitative in nature. It also is regarded as the systematic process that focuses on
relating different techniques as well as statistical tools to attain desired outcomes (Kumar, 2010). There are two different
techniques of data analysis that have been used by the researcher, namely qualitative and quantitative techniques.

For the present study, the researcher focuses on adopting mixed techniques (i.e. qualitative and quantitative) for
analyzing the gathered data and information. Under the qualitative technique, the researcher put emphasis on
formulating themes of the objectives or questionnaire and interpreting them based on acquired data from the
respondents. However, under this technique, the researcher commonly adopts thematic Analysis that mainly supports in
conducting in-depth examination, therefore, the Researcher obtains accurate findings. Along with this, the researcher,
with the help of this technique, interprets the findings based on responses that are provided by operational managers of
different airline companies.

On the other hand, a quantitative technique is also being adopted by the researcher for analysing the findings. Under this
technique, the investigator focuses on using statistical tools SPSS and principle component analysis (PCA) method for
analysing the information provided by the respondents (Hussain, 2011). Therefore, adopting mixed techniques for data
analysis plays a significant role in attaining the desired aims and objectives of the study.

3.8 ETHICAL ISSUES

For carrying out the study, it is essential to focus on ethical principle as it governs the proper behaviour and attitude of
the researcher towards conducting the study. Research ethics implies that the implemented design and research
techniques are defensible and reliable which results in attaining the overall aims and objectives of study. The key ethical
issue in the research is related with data collection, that is, the researcher needs permission from the respondent to utilise

their responses in the research so that it may easily attain the desired outcome.

Along with this, there are many other ethical issues that need to be taken into consideration at the time of carrying out
the study, such as, the researcher must be aware of having the duty to secure the actual permission and interest of all the
respondents that Are involved in the study (Kothari, 2004). They must not use any type of information Obtained and it is
necessarily required to maintain moral responsibility in favour of the respondents. In addition to this, confidentiality
must be also taken into consideration so that information of respondents has not been disclosed with any other
participants. Furthermore, data is being gathered from the employees of airline companies, and therefore, information
provided by them should not been disclosed to any other employees as disclosing information might lead to bias and
wrong information.

3.9 RESEARCH LIMITATION

The main limitation associated with the present study is that it is only restricted to the airline industry where other types
of industries, for instance, the aerospace industry, agricultures industry, or construction industry, etc. were not taken into
consideration. Further, the key challenges faced within the airline industry have been covered in the present research.
Only challenges have been discussed in the study and other factors, such as, opportunities have not been taken into
consideration (Dawson, 2002). Further, the entire airline industry has been undertaken but a sample size of 101
respondents has been collected. So, this is also another limitation linked with the present study.

3.10 AREAS FOR FUTURE STUDY

In the near future, various areas are present where research can be conducted. One of the main areas that can be
undertaken is the opportunities present in the airline industry for the companies operating in the market. This will assist
in knowing what benefits are obtained by the businesses in the airline industry. Moreover, research can Also be carried
out on other industries such as retail, automotive, etc.
 CHAPTER IV

DATA ANALYSIS
4.1 ANALYZE THE QUESTIONNAIRE

After collecting data, the researcher has analysed the data by using SPSS tool. For every closed ended question, the
researcher has prepared a table by using that SPSS tool on the other side, responses are graphically represented by using
charts. Each table provides information related to frequency, percentage, and cumulative percentage. The researcher has
used bar charts and pie charts in order to present responses of each question graphically. A total of 101 respondents are
being questioned via a questionnaire, each question is formed to fulfil each research question.

Questionaire

Which of the following is a challenge faced by the airline industry in sales?

a) Increasing fuel prices

b) Strict security regulations
c) Aging fleet of aircraft
d) Air traffic congestion

Which factor has the most significant impact on airline sales?

a) Online travel agencies
b) Competitor pricing strategies
c) Customer loyalty programs
d) Global economic conditions

How does the rise of low-cost carriers affect airline sales?

a) Decreased competition in the market
b) Higher fares for customers
c) Increased demand for premium services
d) Lower profit margins for traditional airlines

Which technology has revolutionized airline sales and distribution?

a) Social media advertising
b) Virtual reality tours
c) Blockchain technology
d) Voice recognition systems

What is a common challenge faced by airlines in selling ancillary services?

a) Limited customer demand
b) High distribution costs
c) Regulatory restrictions
d) Low profit margins

How do global events, such as pandemics or natural disasters, impact airline sales?
a) Increased customer confidence in travel
b) Higher demand for international flights
c) Reduced travel demand and cancellations
d) Lower competition among airlines

Which distribution channel poses a challenge for airlines in terms of sales?

a) Direct sales through airline websites
b) Travel agencies
c) Online travel agencies
d) Airport ticket counters

Which factor influences customer buying decisions in airline sales?

a) In-flight entertainment options
b) Availability of Wi-Fi on board
c) Seat comfort and legroom
d) All of the above

How do frequent flyer programs impact airline sales?

a) Decreased customer loyalty
b) Increased competition among airlines

c) Higher ticket prices for loyal customers

d) Enhanced customer retention and repeat sales

What is a common challenge faced by airlines in implementing dynamic pricing strategies?

a) Limited customer data for personalized pricing
b) Technological limitations in price optimization
c) Resistance from travel agents
d) Inconsistent demand forecasting
4.3 SUMMARY

The first seven questions of the questionnaire have determined six different issues that are faced by various aviation
industries. These questions also fulfil the third research question of the study. Moreover, it has been found that operation
management, competition from competitors, not meeting customer expectation, fuel price hike, strict legal framework
and rinsing of air traffic are some common issues faced by airline industries.

The study has observed that airline companies handle various issues in two different ways. Organizational strategy and
perceived marketing are two approaches that an organization has considered in order to overcome existing issues and
sustain the business growth.

Market price, fuel price and high legal restriction are some common key factors that introduce challenges in the airline
industry. Questions number 11, 12, and 13 of the questionnaire fulfil the second research question of the study.

Questions 14, 15, and 16 have observed current conditions of the airline industry. It has been observed that due to

increasing of substitute products, the airline industry is highly impacted. Moreover, it has been observed that due to
providing discounts in the ticket price, performance in the business is getting significantly higher.

CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

5.1 CONCLUSIONS

From the study carried out, it can be concluded that there are large number of issues and challenges that are being faced
by the companies operating in the airline industry. At present, conducting a smooth flow of all operations and activities
is no longer an easy task for companies. The issues and challenges resulted in creating different types of obstacles for
businesses in terms of achieving desired objectives and aims. Companies are required to make changes in their strategies
and overall action plans at regular intervals due to the present working environment of the airline industry. Here,
adequate cooperation and efforts from the staff members is essential to cope with the business environment, which is
changing at a rapid pace.
From the information collected through primary and secondary data, it can be inferred that the businesses in the airline
industry have also started facing issues linked with operations management. The rising competition, prices of fuel and
rate of staff turnover can be termed as the main operational issues, which companies operating in the airline industry are
presently facing. Due to the high demand of airline services, the consumption of fuel has increased to a great extent. At
the same time, rising prices of oil have resulted in developing different kinds of obstacles for the organizations that are
operating in the selected industry. The pressure of operating with low price strategy is Constantly increasing due to new
entry of different low cost airlines in the sector.

Companies are not able to determine suitable strategies to attract new customers and retain the old ones in every
possible manner. The data collected from different sources also reflects the fact that a majority of the companies is
facing issues linked with declining sales, profitability and customer base because they are not able to meet the
expectations of the customers. It is suggested that the business should conduct market research at regular intervals to
identify the changing need and demand of people or potential customers in the target market. However, organizations do
not emphasise on carrying out market research because it consumes lots of time, resources, and efforts. Market research
is now essential because it can provide businesses with information about changing customer demand and market trends.
Based on the information or data collected, companies can carry out adequate changes in their business strategies and
services to meet the customer demand in the best possible manner.

From the study conducted above, it can be inferred that businesses operating in the airline industry are losing their
market share and customer base due to their failure of meeting customer expectations. Furthermore, the cost of carrying
out business operations is very high and at the same time, these organizations are required to offer products and services
at prices that are low. This creates complications for companies in terms of managing their overall operations and
business activities in the long run. The data collected from secondary sources reflects the fact that the airline companies
have carried out price discrimination which is ultimately affecting the customers present in the industry. For instance,
brands such as Spirit are charging extra money from customers for Check-in luggage whereas airlines such as Southwest
are offering these kinds of services At prices that are conveniently very low as compared to other brands operating in the
marketplace.

The information collected using different sources also highlights that the businesses in the airline industry are facing
challenges linked with fierce competition. Nowadays, people or customers in the target market have a large number of
options and alternatives to choose from. Here, attaining a high degree of satisfaction among customer has become a very
complicated and a challenging task for organizations. In situations where customers are not satisfied with the services
offered by a particular airline then they will prefer to use the services offered by other brands in the market. The adverse

impact of this situation can be observed on areas such as sales, profitability, and existing customer base of a business
enterprise.

On the other side of this, the fluctuations in prices of oil have also emerged as a big challenge for all the companies
operating in the sector. Fuel is considered as one of the most important elements required for smooth functioning of the
airline business. However, the drop down in prices provide companies with an opportunity to enhance their volume of
profit, whereas, an increase in the price of fuel directly results in lowering the profit volume of these businesses. Now,
the most important challenge is linked with maintaining the desired volume of sales, revenue, and profitability. Here, the
airline brands are required to develop effective strategies and action plans to attain desired objectives of sales and
profitability. At the same time, adequate monitoring of Those strategies and plans is required to make sure that the
company is heading towards the right direction.

Another issue identified by the researcher is associated with the increase in market price, which makes the overall
industry more competitive. The figure of sales and profitability tend to fall when companies start offering the airline
related products and services at high prices. It becomes very complicated for businesses that are operating at the small
scale to manage their operational cost and attract the desired number of customers in the long run. It can be also
expressed that big business may not face many complications in dealing with issues such as rising cost but for a small
enterprise, it is very difficult to deal with challenges linked with intense competition.

The companies are also required to carry out changes in their existing technology to stay competitive in the marketplace.
It can be stated that it is not an easy task for businesses, as they are required to invest a large number of resources during
that time. Sometimes, these companies face issues such as employees’ resistance to change where the staff members are
not ready to cope with changes that are being carried out at regular intervals. An adequate amount of financial resources
is required by organizations to implement new technology or up-grade the existing ones. However, it can be inferred
that it becomes very complicated for companies to arrange financial resources in situations where profit margins are
very low due to intense competition. The challenges faced by the airline industry are very high and businesses are
required to develop effective strategies to deal with these issues and challenges. To attract adequate customers and Carry
out smooth flow of operations, effective strategies are now essential for brands operating in the airline industry.

It can be concluded that a negative perception has been developed among customers because of the challenges and
issues faced by companies. The overall brand image of airline businesses has been adversely affected by these issues.
This can be considered as a major threat for all the small and large scale companies that are operating in the
marketplace. An adequate support and assistance from all the external and internal stakeholders is now vital in terms of
achieving the desired growth and success within the entire industry. Customers are considered as a king of every
industry and thus, all the strategies should be developed by keeping the changing need and demand of customers in
mind. However, sustainability is another major challenge all the businesses in the airline industry are facing. The
pressure to adopt more sustainable practices within operations and activities is constantly increasing and this has
emerged as a big problem for the entire industry.

The carbon emission and pollution ”merg’d due to airline operations and is considered a major threat for the overall
environment. It can be stated that increasing pollution has also resulted in enhancing the degree of global warming. A
negative perception about the entire airline industry has been developed due to the harm that airlines have caused to the
overall living environment. The air traffic has increased to a great extent and this has resulted in causing delays in
flights. The ultimate impact of this can be seen overall in the degree of customer satisfaction. Flight delays also
encourage

Customers to switch to the services offered by other companies in the marketplace. Different types of strategic plans are
developed by businesses but, still, today companies are not able to attain desired results. Small airlines are expanding at
a rapid pace and it is expected that in the future, the competition will become more intense within the industry.

The rate of staff turnover is also increasing and nowadays, it has become very complicated for airline organizations to
develop effective strategies that can reduce the rate of employee turnover. The causes of employee turnover include lack
of growth opportunities, inadequate pay, and frequent changes and growing practices of discrimination within the entire
industry. Most of the time, the staff members are being discriminated on the basis of different demographic variables
such as age, gender, cultural and educational background. These kinds of situations develop a high degree of
dissatisfaction among workers and also results in hampering their productivity to a great extent. To deal with the issue
of discrimination, effective plans and policies can be developed and implemented by companies.

Strict regulations and anti-discrimination practices can play a very critical role in dealing with issues linked to
discrimination. To overcome these challenges linked to increasing staff turnover, the companies operating in the airline

industry are required to focus on offering satisfactory pay and better working conditions. At the same time, companies
can put more emphasis on conducting training and development sessions for the staff members. The advantage of such
sessions is that they will provide workers with adequate opportunities for personal growth and development. In addition
to this, the Employees will be able to learn about different tools and techniques of change management, which can be
taken into consideration to cope with the technological changes businesses carry out at frequent intervals.

5.2 RECOMMENDATIONS

It is recommended to the airline companies to carry out external analysis on a continuous basis through PESTLE
(Political environment, Economic factors, Socio- cultural factors, Technological changes, Legal issues, Environmental
Aspects) as through this it is possible for them to know the external challenges that affect business operations. Through
this, it is possible for the companies to take corrective actions well in advance to reduce the level of challenges and
create favourable results for the business.

Every airline company must try to develop some unique service that is highly differentiated as through this it is possible
to highlight some unique attributes in the service range and, in turn, will act as a development tool for the entire
company. The reason behind recommending this strategy is that the airline industry is highly competitive and at the
global level, a large number of companies are operating in the market. Therefore, introduction of some advanced
services can surely assist in attracting large numbers of customers towards the service range and this can be
advantageous for the long term.
Financial related challenges are also mainly faced by the airline companies and to Reduce the level of financial issues, it
is necessary for the firms to indulge into the practice of financial planning. Through this technique, it will be possible
for the Companies to satisfy financial needs of the business in the best possible manner. Apart from this, budgeting
techniques can also be undertaken such that airline companies can satisfy their future financial need and forecasting of
future expense can take place easily.

Government laws and regulations play a significant role in the airline industry and it is necessary for the companies to
ensure well in advance that its practices are in accordance with the government regulations. It is recommended to
comply with the government guidelines so that long-term performance of the company can be well maintained.

Marketing and promotion of services must be mainly carried out with the help of social media, as the effectiveness of
this source is quite high as compared with others. Through social media, every company can highlight unique attributes
in its service and it will have a positive impact on the long-term performance of the businesses operating in the market.

It is recommended to focus more on marketing activities as in the competitive market it is one of the most effective
modes through which airline companies can maintain their market share and they can easily operate for longer period of
time.

Competitor analysis must be carried out on a continuous basis so the airline companies can plan the strategies to deal
with the different challenges involving technology, competition, political, etc.

For airline companies that are offering services at a very high price, it is recommended to offer some additional benefits
to the customers such as discounts, and other forms of offers can be introduced through which monetary benefits can be
delivered to the target market. This will support the company in retaining customers for longer periods of time and this
can act as a development tool for the businesses.

Human resource related challenges are also critical and affects the efficiency of the airline company. So, in order to
manage human resource related issues, it is recommended the companies adopt some motivational tools, like reward
strategies, which can be introduced for managing workforce in a proper manner.

A democratic leadership style must be adopted such that the employees can be easily involved in the major operations of
the business that will create favourable outcomes for the companies in the best possible manner.

Substitute of every airline service is easily present at the international level and this is one of the main reasons every
company is required to introduce some unique service for attracting customers and satisfying their need in the best
possible manner.

The challenge faced by the airline company is rising cost of operations and in order to tackle this issue, it is necessary

for all the companies to identify the main areas where it is possible for them to reduce the overall cost associated with
carrying out the major operations. This will have a positive impact on the profits of the company, as adequate amounts
of funds will be left with the company for carrying out the main operations.

Proper maintenance of aircraft and fleet must be carried out on a continuous basis so that safety related challenges might
not arise. Government pressure regarding adoption of safety practices is high and due to this reason every airline
company has to take corrective action for ensuring that its fleets are safe to travel. This will also somehow assist in
managing the overall performance of airline companies in the market.

Rise in fuel price is also one of the challenges in the airline industry. Therefore, to tackle this issue it is recommended to
the airline companies to allocate large funds in fuel and other operations that are significant and they can focus on
reduction of other expenses. So, in this case, if fuel prices rise at a faster pace than companies can handle, such
situations will affect the profitability level less.

For dealing with the challenges in a better manner, it is required for the top management to take advice of the operation
staff and other employees that are working in the company. Obtaining more and more suggestions from the employees
working in the company will surely bring positive results for the firm. Every staff member will give new ideas for the
betterment of the company and it will easily allow the company to tackle different issues present in the business
environment.
Proper market analysis must be carried out on a continuous basis to know customer preferences and changing trends for
understanding customer needs. In the competitive market, it is necessary for the airline companies to know the need and
requirement of the customers as it changes rapidly.

Further, loyalty programs and customer engagement practices must be developed on continuous basis so the customer
can be easily encouraged to purchase services of any specific airline industry and it will bring different types of benefits
for the airline company such as a strong customer base, positive brand image, etc.

It is recommended for the airline companies to introduce some form of customer feedback system like obtaining
feedback from customers through their personal email or within flights, etc. This will assist a lot in understanding
whether customers are satisfied with the services rendered to them or if any type of modification is needed. Apart from
this, feedback of the customers will also assist companies in dealing with the issue of competition prevailing in the
market and it will act as a development tool for the businesses.

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