Aviation and Airport Management - Air France-KML and Air Berlin - Case Study Example

Aviation and Airport Management Student’s name: Institution Affiliation Аviаtiоn аnd Аirроrt Mаnаgmеnt In the airline business, there are so many factors that determine the quality of services that are provided by any given airline. Regardless of the cost of operations incurred, the management of the operations in the airline determines the extent to which the quality of services will be. When an airline has good management practices, then it is probable that its service is going to meet the requirements of consumers. Airline business remains competitive as customers are presented with wide options in which they can travel to the various destination. To ensure that the airlines excel in whatever they carry out it is best that the management of the airlines is competent enough to ensure success. Management is key, and several factors regarding the management should be at the top. In this paper, we are going to look into two airlines in Europe one of them being a full-service airline and another being low-cost airline. The airlines are Air France-KML and Air Berlin. Air France-KML is a full-service airline that has its operations all over the world. It is networks are found within Europe and all over the world. It provides services ranging from cargo management and passenger management services. The airline is headquartered in France, but it also has some roots in the Dutch. On the other hand, Air Berlin is one of the largest airlines in Europe it has major world destinations where it gives all kind of services in air transport. The airline has a low cost of it services where consumers get services in a cheap manner. This was possible through using methods that will not require high costs. The airline is headquartered in Berlin German. The difference in the two airlines is that one employs methods aiming at cost cutting, while the other carries out services in a complete form. It is possible that there are costs that you will see in Air France that you will not see in Air Berlin due to the difference in innovations done by each company. Cost comparison in the two airlines Having embarked on cost-cutting actions, Air Berlin has been able to eliminate a lot of costs that were unnecessary for operations. This has made it improve in the manner in which it operates leading to better performance. On the hand, Air France operates in full form and putting everything in place that will ensure that it operates without eliminating some of the operations. The costs of subsidiaries in different countries are some of the costs that can appear in the books of Air France but will not appear in the books of Air Berlin. Another cost is the one of using tour guides in passenger handling. In Air Berlin, they eliminated this cost by having their ways of handling passengers whereas in Air France the case is different, as it has employed tour guides to handle the passengers. It is apparent that Air Berlin has been able to put mechanisms in place meant to reduce the cost of its operations as compared to Air France (Clark, 2014, pg. 4). Management and decision taking When it comes management roles, it is required that frequently decision is taking. There when this team was going for a trip, it required a range of decisions ranging from those that are entrepreneurial, how to deal with the disturbance, resource allocation and negotiation of deals with the airlines which will ensure the success of the business operations of the airlines. Management and decision taking is the key role within any industry, and the two airlines management has a task of ensuring the operations and returns from the operations will keep the airlines profitable. As indicated in the performance of the two airlines, the board of directors is the engine of any organization. The performance of any organizations will always depend on the energy and type of decisions that are being taken by the board of directors. The board of directors remains one of the most important organs of any organization as it gives the organization the direction that it requires to ensure its success. In circumstances where the energy and attitude of those who are the board of directors are not positive, it means that the whole organization also will not performing to the expected levels. The decisions that are going to be taken within the organization also will not be positive to see the organization moving forward. This is because most of the decisions taken by the two airlines are based on the board of directors. In fact, the board of directors in Air France must be those who hold to the old methods of operations making them not to change their way of operation. On the other hand, those of Air Berlin are ready to change and accommodate the new changes in the industry so as to succeed in their operations (James, 2000, pg. 15). Innovation Comparison in the two airlines Innovation is the act of industries trying to do things in a better way than there before. They are put in such a way that they are going to ensure the old models of doing things are set aside, and new ways are put in the scene. Innovation is meant to ensure that business is done in a better way and products and services are somehow differentiated from those of the rest of the competitors in the market. In the aviation, industry innovation is a very important factor as it will help a great deal in the cutting of costs and expenses and also improve services that are meant to attract customers and avoid problems. Due to that, we are going to compare between the innovations in Air France-KLM and Air Berlin so as to establish some of the innovations in the aviation industry and also see which of the two is more innovative (Rosemain, 2015, pg. 9). The first innovation that has been seen both the two airlines is that they have been able to separate fare for the passengers’ classes. This is to ensure that the passengers that are being transported in these carriers are going to enjoy their flights according to the levels of their wish. This is going to ensure that the services that are going to be provided are going to match the lifestyle of an individual. Also, both airlines are providing online booking platforms that are going to spare the passengers with the time of queuing for tickets. Air France calls branded its domestic business class product as "executive class," this came as a result of the existence of a premium economy "Connoisseur Class." Which was available for those passengers that afforded to pay full fare and the benefit on return was there was a guarantee of a seat that could be adjacent to you if possible and also one could be provided with alcohol services that are free. The business seats in Air France for Regional travels are made in a such a way that they are wider with less seat density in the forward cabin. On the other hand, the regional planes do not stand out as some of the domestic flights, for example, those within France as a country usually have a fully lie back seats on the 777 and 787 as well as 767 (767 fly regional too) (Angel, 2007, pg. 5). Air Berlin on the hand has concentrated on the improvement of it services through innovation on the way they are providing customers with services that are of great quality. The improvements include; the provision of air seats that are spacious and comfortable to all. Also, the conditions in their planes are adjusted according to the prevailing weather conditions that they are in and also ensuring that their planes go to as many destinations in the world as they can which going to ensure that passengers are going to travel with comfort without any difficult. There have been a lot of free incentives that are being provided by the airline like the free coffee services and alcohol services for their customers depending on the class in which the passenger is travel. Also, in the airline, we have a service that reminds the passengers of their departure time to avoid inconveniences. Air Berlin has concentrated on the building of its brand throughout the world something that has made it receive a lot of recognition and prestigious awards (Perry, 2008, pg. 3) Cost comparison between the two Airlines Expense Air Berlin Air France KML Financial 77,217 1,287,000 Material and Service 3,288,763 14,019,000 Other operating 654046 1,663,000 Total 4,020,026 16,969,000 From the table we can deduct that the total expenses (costs) for Airline Berlin is four time that of Air France KML. This I due to cost reduction measures that have been taken in Air Berlin. Conclusion From the above discussion, we can be able to say that Air Berlin which is a low-cost airline has more innovative methods of carrying out its operations compared to Air France. The performance of any airline is based on the level of management and innovation skills that will be employed within that particular industry leading to its success. 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