| Running an airline is a complex operation. It is one of | | | | procurement of the foods.b. Customers Demand |
| the industry that is capital, labor and technology | | | | Research - The group will determine the markets and |
| intensive, all encompassed within a single organisation. | | | | the markets' needs. For example, for the Transatlantic |
| The high capital and technology investments are due | | | | segment, it is forecasted to have 200 million students |
| the aircrafts requirements. On top of that, as it is a | | | | travelling in 2011, and the characteristic of this students |
| service industry, it is also highly labor intensive, mainly | | | | travelers are: They are price sensitive, seasonal |
| due to the direct customers services the airlines have | | | | travelers and less sensitive to the quality of in-flight |
| provide to the individual customers. These factors | | | | services.c. Customers Services - Traditionally the |
| have impacts on the types of jobs required to run the | | | | responsibilities are divided into 3 groups:i. Sale of the |
| airline. | | | | tickets - Handle and managed by the Sale Personnel |
| The types of jobs can be divided into the following | | | | and Sale Group.ii. After the sale but prior boarding the |
| groups: | | | | aircraft - handled by the Traffic Services (known as |
| 1. Aircraft Related.a. Maintenance of the aircrafts - This | | | | Ground Services). This group also handle passengers |
| is an engineering types of work. A large number of | | | | after a flight.iii. Cabin crews- The crews handle the |
| staff are required to plan, organize and do the actual | | | | passengers while they are in the aircrafts, both on |
| maintenance on the aircrafts and the related | | | | ground as well as in flight. |
| components. As the safety of the aircraft and the | | | | The customers' services group is the largest in term of |
| passengers are at stake, the airlines will put a high | | | | manpower, likely to be about half of the total work |
| priority to the maintenance works. | | | | force of an airline |
| The resources, the manpower, the spares and the | | | | 3. Business Supporta. Finance and accounting. I put it |
| available facilities have to planned years in advance. | | | | as business support as they are NOT directly involved |
| The quality of the works and the processes are | | | | in the transportation of the passengers. Some airlines |
| monitored by the Quality Assurance staffs.b. Flying | | | | consider them the core and the operation departments |
| Operation - This is where the pilots are positioned. The | | | | as the support to make money for the airlines. |
| Flying Operation section is much more than just flying | | | | The Finance Department will be concerned on the |
| the aircraft. It include the whole set up and system to | | | | sources and application of funds. They also handle the |
| ensure that the aircraft will fly from point A to B safely | | | | cash. Airlines are known to be cash rich and it will a |
| and economically. | | | | waste to have billions of dollar sitting idle in the bankb. |
| The main players will be the pilots, but you also require | | | | Corporate Service - This is where the HR personnel, |
| other types of jobs to plan for the flights, get the data | | | | the Legal personnel and Central Purchasing groups. |
| for the routes and the destinations and file the flight | | | | You can have a group of staff who specialize to |
| plans to the authority. The flight clearance have to be | | | | manage projects.c. Insurance and Medical - Airlines |
| obtained from all the countries airspace and the | | | | spend a lot of money on the insurance of the aircrafts, |
| destinations. Then there is the tasks to pay the bills of | | | | passengers and properties. The medical cost comes |
| the services from the ATC (Air Traffic Controller), the | | | | up to multi-million dollars, as the pilots and cabin crews |
| navigation aids on routes and weather information. | | | | have to undergo annual medical test to check for the |
| On some airlines, the managing and buying of the oils | | | | health. |
| and fuel is under the Flying Operation, while in others, it | | | | 4. ICT - IT and Communication is the lifeblood of an |
| is with Finance Department. Although the manpower | | | | airline. Most of the transactions and the operations are |
| needed to manage the fuel purchases is small, the | | | | using ICT. A failure in the system will cause flight |
| monetary value is huge. It ca be the biggest | | | | delays and prevent the airline from operating. |
| expenditure for the airline, bigger than the total staff | | | | Conclusion |
| cost. | | | | The structure of an airline varies between airlines and |
| 2. Customers relateda. Catering - This the kitchen of | | | | is continuously changing according to the corporate |
| the airline and it can be a very big establishment. As a | | | | strategy. However, due to the nature of airlines |
| rule, it needs to comply to the health and legal | | | | business, it will be capital, labor and technology |
| requirements. Some airlines choose to outsource the | | | | intensive. |