Importance of the Safety and Risk Management in Aviation World - Research Paper Example

Are Safety and Risk management Important in aviation world?     Abstract       The research taken focus on the efficacy for taking effective safety and risk management activities by airline companies. In that it first tries to define the safety management systems and operational risk management systems as used by the aviation companies. Case studies of international airline companies are presented to throw light on the pragmatic use of such techniques. A review is made on the level of benefits that accrue from such initiatives taken by the airline companies. The benefits are studied both from the internal as well as from the external stakeholder point of view. Importance of increasing staff training standards to reduce repetition of faults is emphasized which in turn help in gaining customer satisfaction.                             Introduction       The aviation industry is showing a serious trend towards the frequent occurrence of fatal accidents. In order to avoid such a climax it is highly essential to view the hazards and trends of safe practices in the current aviation industry. Accident prevention programs are gaining due importance in airline industries owing to the stated cause. A conference on aviation safety held on 1995 in United States of America stated about diminishing the accident rate to zero. Thus, a growing expectation of the government and airline officials to increase the standards of safety to meet the zero accident rates becomes obvious. In regards to the above context, an estimate on the current accident rate reveals that it has come down to be a single for every million flights. Due importance needs to be given to the safety paradigm of the aviation industry with effective training programs enhancing the culture of safe practices in aviation industry. In spite of taking a move towards the promotion of a zero accident climate in the aviation industry there are situations where the callous mindedness of the aviation officials becomes evident. Repeatedly accidents in the air are caused owing to the same reasons for which it had occurred in the past. The occurrences of air accidents are observed on a passive note, which does not trigger a change in the unsafe practices of the airline staff. Effective training on safe flying practices and role management of airline staff needs to be closely observed for avoiding such incidents. (Calvano, 2003, pp. 2-3). In regards to the growing complexity and uniqueness in the aviation industry, an observation made suggests that ground level needs are not properly escalated to the higher management. The above has its effect on the frequency of airline accidents, which claims hundreds of lives. The Safety Management System (SMS) of an airlines company to be effective must rightly identify and control the associated risks. Risk management should be effectively made keeping an eye on the cost factor. Customers feel the need for safety in flights but simultaneously want the service to be cost-effective. The Risk Management program earns its effectiveness for guaranteeing flight safety by focusing on all the paradigms of flight operation. (Operational Risk Management, N.D.) The paper endeavors to highlight on the different safety and risk management measures that are taken by the airlines industry to promote a hassle free journey in the air. It also tries to understand the due importance of safety measures in the light of reducing air accidents.   Literature Review        In regards to the safety paradigm in aviation Stolzer, Lalford and Goglia (2008) observe that programs initiated in regards to it have a voluntary approach by the airline companies. Stolzer, Lalford and Goglia (2008) state that the participation of the airline operators to the safety management programs cannot be forced through regulations. Stolzer, Lalford and Goglia (2008) further observe that international bodies like the International Civil Aviation Authority (ICAO) and European Joint Aviation Authorities have set standards both in international and regional context urging the airline operators to participate in safety programs. However, Stolzer, Lalford and Goglia (2008) observe that in the context of United States of America the Federal Aviation Administration still consider the voluntary approach to such safety programs quite effective. Reason sought for the voluntary approach to these programs in United States are revealed by Stolzer, Lalford and Goglia (2008) stating that the unions and management of the aviation industry fear the occurrence of data sharing events if maintained by regulatory bodies. In regards to the pattern of training program initiated for safety aviation practices Stolzer, Lalford and Goglia (2008) state that the programs earn their effectiveness for focusing on definite areas of aviation systems. Stolzer, Lalford and Goglia (2008) observe that for Advanced Qualification Program (AQP) separate training modules are made. Again, for programs on Air Transportation Oversight System, Stolzer, Lalford and Goglia (2008) observe that an oversight on the national airline operations is given. In a similar manner for programs on Flight Operational Quality Assurance (FOQA) and on Independent Evaluation Plan (IEP) Stolzer, Lalford and Goglia (2008) observe that detailed training and evaluation activities are taken care off. (Stolzer, Lalford and Goglia, 2008. p.53). The host of separate programs taken to focus on the different areas operates in an integrated fashion for the holistic management of the airlines.       To this end, Harris and Muir (2005) observe that the initiation of the Crew Resource Management (CRM) training not only helps in enhancing the team spirit but also focuses on the safety paradigm in the light of the complex airline operations. Harris and Muir (2005) further observe that the Crew Resource Management (CRM) program in the aviation industry focuses on drawing commitments from the airline staff to revive from their past mistakes. They further observe that the training program helps in the steady acceptance of expertise knowledge by the crewmembers. Harris and Muir (2005) also observe that the Crew Resource Management (CRM) program helps the crews to get more sensitive to the operational procedure and in better understanding the complex dimensions of it. In order to make the Crew Resource Management (CRM) and other concurrent trainings taken to such end effective Harris and Muir (2005) further observe that the airline industries incorporate data on failures and mishaps and also accident reports and statistics in the training program. (Harris & Muir, 2005, p. 173).       In regards to focusing on areas like prevention of accidents and occurrence of fatal incidents, Calvano (2003) puts stress on the technical paradigm. Calvano (2003) states that accidents, which occur due to maintenance and mechanical problems of aircraft, signify the stress needed to be put on such areas to avoid deficiencies and oversight problems. To this end, Calvano (2003) reveals a 2003 estimate stating that the number of airlines accidents caused due to faulty maintenance activities surpassed the accidents caused due to accidental ground flights. In regards to the increased tensions due to maintenance and technical problems tied with human practice and attitudes, Calvano (2003) states the emergence of regulations like ‘Jar-145’ framed by Joint Aviation Authorities in Europe. Calvano (2003) observe that the regulation frames an outline on the training of Human Factors (HF) in regards to technical issues and focuses on the execution of maintenance policies. In regards to the above cause, Calvano (2003) observes the role of the safety manager involves the proper management and execution of the safety plan and must act as a facilitator to hazards and risk management activities. Calvano (2003) further states that the safety manager also earns the responsibility to carry on a thorough investigation on the incidents occurred and in providing needed training to the staff on such matters. (Calvano, 2003, pp. 3-4).       In regards to risk management in the aviation, sector Connell in National Research Council (U.S.) Transportation Research Board (2000) observes that information relating to the happening of incidents leading to accidents provide as a safeguard to future operations. Connell in National Research Council (U.S.) Transportation Research Board (2000) specifically states that information collected as to the reason behind the occurrence of such problems, detection of the above problems and actions initiated to minimize the risks help in future management of risks involved. To this end, Connell in National Research Council (U.S.) Transportation Research Board (2000) mentions of the Aviation Safety Reporting System (ASRS) which was created in 1976 by the joint collaboration of the Federal Aviation Administration (FAA) and the National Aeronautics Space Association (NASA). Connell in National Research Council (U.S.) Transportation Research Board (2000) further observe that the Aviation Safety Reporting System helps in the identification of discrepancies and shortfalls in the National Aviation System. Moreover, Connell in National Research Council (U.S.) Transportation Research Board (2000) observe that the Aviation Safety Reporting System suggests useful recommendations on aviation policies, procedures and operations and conducts research on the human power for better development of the aviation system. (National Research Council (U.S.) Transportation Research Board, 2000. p.24)          Risk management in the aviation industry focuses on customer satisfaction by diminishing the rate of cancelled flights for weather reasons. In regards to the said context, MSI Guaranteed Weather (2010) revealed an estimate given by the Air Transport Association stating the growing problems due to the increase in the number of deferred flights. MSI Guaranteed Weather (2010) observes that the delay in flights have increased along a four year span from 839 in 1998 to 1234 in 2000. MSI Guaranteed Weather (2010) further observes that the annual cost of delays sum up to $5 billion on an annual basis. The main factor triggering such delays in flight operations are stated by MSI Guaranteed Weather (2010) as the weather, which has a 72 percent stake on the factors attributed for the same. To this end, MSI Guaranteed Weather (2010) states that the introduction of weather risk analysis as a process helps in providing a historical analysis on airline delays due to weather reasons and the effects of weather conditions on other airports. (MSI Guaranteed Weather, 2010)          Apart from risks targeted by weather factors the aviation industry faces a lot more challenging risks from theft, terrorism, hijack, extortion and similar other factors. In regards to the said context, Control Risks (N.D.) observes that the development of three dimensional technology serves as a guide in tracking terrorist activities conducted in airports. Control Risks (N.D.) further observe that staff training and recruitment parameters in airlines should be designed keeping in mind the security concerns. It states that effective training should be given to the staffs in making them aware of the anti-terrorist procedures being adopted by the organization. It further states that at times of recruitment personnel should be properly scanned before being absorbed. In the light of cargo fraud, illegal immigration and hijacking activities Control Risks (N.D.) observes that an installation of an effective team will help in the identification and the breaking of the network of such activities. (Control Risks, N.D.)         In regards to the above cause McCabe (2006) has focused on four key success factors in regards to the aviation industry. McCabe (2006) observes that an airline to earn success in its field must focus on factors like attracting a huge base of customers, effectively managing its fleet operations, the staff involved and applying proper financing measures. Elucidating the key success factors McCabe (2006) states that in attracting customers the airlines must focus on effective service management and must enhance promotional activities. McCabe (2006) further observe that effective fleet management by grouping the airplanes helps in increasing flight efficiency. In regards to people management in the airlines industry, McCabe (2006) mentions of increasing the employee morale of personnel directly involved with giving passenger services. Measurement of employee productivity as an enhancement factor is emphasized upon by McCabe (2006). In regards to management of finances as one of the key success factors to the airlines industry McCabe (2006) draws the concept of unit cost and unit revenue. McCabe (2006) states that a balance between the unit cist and unit revenue is essential to promote organizational efficiency. Apart from the concept of unit cost and unit revenue McCabe (2006) mentions of the need for growth in the airline industry by inviting funds from investors. McCabe (2006) states that the airlines industries in order to be lucrative to the investor’s eyes must focus on enhancing its equity base. In regards to inviting debt-funds McCabe (2006) further states the development of the debt-to-assets ratio as a potential source of attracting the debt investors to the airline companies. (McCabe, 2006)       The discussion made above using book reviews highlight on the importance of safety practices to be practiced in the airlines industry. It highlights on effective training initiatives to be taken to minimize the chances of fatal accidents. In regards to risk management initiatives, the discussion highlights on effective strategic practices that can help attract more passengers to the airlines companies thereby augmenting its revenue.    Aim       The paper aims at citing the importance behind taking effective safety and risk management programs by airline companies. In that the paper endeavors to focus on the benefits obtained from effective safety management initiatives taken. The paper also hints on the evaluation standards, which denote whether the safety and risk management programs taken by a company are effective, or not. Thereby, it also suggests useful recommendations to that end to make the safety and risk management practices efficient for future needs. Methodology       The paper in context seeks to find out the importance of taking an effective safety and risk management system in an aviation company. In regards to the above cause secondary or library research sources have been used for generating findings on the same. For a research to be conducted there are essentially two types of data sources available viz. primary and secondary. Some of the primary advantages behind using secondary data sources are that it is easily accessible through on-line sources. Secondly, secondary research techniques also focus on reduction of research cost. Thirdly, secondary research serves to be the backbone for primary research activities. Hence it is conducted prior to primary research. Finally, secondary research activities help in the consolidation of huge amounts of data gathered from primary sources. This consolidation helps in making a proper inference to the questions sought in the research taken. (Secondary Research-Advantages, N.D.) Primary research is not conducted for a research project owing to certain disadvantages. Firstly, primary research as compared to secondary research adds to the cost of research to be conducted. Secondly, primary research activities are more time consuming in nature as compared to secondary research. In the third position, Primary research findings fail to provide accurate and reliable results and often confuse the research objectives. Hence, for many large projects the use of primary research methods is not considered feasible. (Primary Research-Disadvantages, N.D.)       In the course of research conducted for the paper data is generated from case studies of different airlines companies operating in the International Sphere. The data thus generated help in gaining the practical implications of the safety and risk management initiatives as observed from the literatures reviewed. It also throws light on the importance of taking such initiatives by an airline company. The case studies made on American Airlines and United Airlines focus in the safety management systems in practice in the American society. Further, two other case studies are conducted on Lufthansa and Singapore Airlines to understand safety and risk management implications in the international sphere.         However, the research limits itself in observing case studies of international airlines of developed countries like America, Germany and Japan. It fails to throw light on airline companies of developing countries like India and Africa. Moreover, the case of domestic airlines is also not dealt with in the paper, which also limits its scope. Findings       The case study of American Airlines in regards to the promotion of the safety paradigm states that the Airlines Company has set high priority standards for the safety of its passengers and crewmembers. In regards to promoting high safety standards, the Federal Aviation Administration has made mandatory a rule to check on the parts after certain flying hours and if needed to be replaced. Non-compliance to the above standards can lead to closure of activity of the company. American Airlines Company in the light of making its service operations secured enabled electronic paper workflow. Together with Docucentric a technology supplier to the airlines company designed the work Card Management System and the Documentum Enterprise Document Management (EDM) Server. In regards to the electronic workflow of paper works, the engineer on feeding the Electrical Discharge Machining (EDM) server it converts the required data to readable files. The company is using the practice for creating its aircraft maintenance manuals. The Federal Aviation Administration is keenly observing the airlines electronic practice for distribution of manuals, which used to take a long time to print previously (American Airlines, 2001).       In regards to Lufthansa Airlines, it reflects the practice of safety in each of its different operations relating to transport of goods to airport development and management activities. In regards to airline operations, the firm focuses on promoting high standards of safety and compliance with regulatory norms to bring about operational efficiency. The management team at the airports focuses on gaining customer satisfaction through the promotion of safe and efficient operational practices. The Lufthansa Airlines Company brings about operational efficiency through the spontaneous improvement of processes, resources and environmental standards in promoting a safe, reliable and efficient airlines group. The gods dispatched along the airlines are rightly checked in abiding by the security measures. Further, effective logistics management helps the company to reduce the cost factor and help in revenue gains. (Lufthansa Consulting, 2010). The company in the light of Risk Management initiatives states that being an international aviation company it is prone to be exposed to both company specific, sector-based and macroeconomic risks. In the light of the above statement the airlines company continuously updates its risk map, strategies, and links the updated map to the functions of identification, coordination, communication and control in risk management. Quarterly publishing of opportunity and Risks reports helps to target the needed areas, which will affect the earnings of the company. Review of the actions initiated in risk management is dealt in with meetings of departments prone to risks. (Lufthansa Investor Relations, 2009)       The United Airlines in the United States of America in the light of safe management practices state that the Safety Management System of the company focuses on promoting training programs on safety management. It states of having an internal control program made effective through audits, which closely monitor areas requiring management of risks and initiates safe actions. The safety programs of the company include internal evaluation programs, which continuously evaluates the operational efforts of the company to policies and regulations set and recommends corrective actions. In regards to the Air Transport Oversight System of the company, the Federal Aviation Administration’s Air Transport Oversight System (ATOS) closely review it. The International Air Transport Association carries on the safety audits of the company. The company registered itself to the International Air Transport Association Operational Safety Audit on March 2005. In addition to the above facts, the Department of Defense Commercial Airlift Division monitors the company’s safety practices. (United, 2010).       The Singapore Airlines Company in regards to effective Safety Management Systems reflect on the company’s incident or hazard reporting programs which is made mandatory by the company. Information shared is treated to be highly confidential and voluntary approach is encouraged. The Flight Data Analysis Program of the company is based on pro-active approach of the workforce and is non-punitive in nature. It rightly identifies the procedures and trends lacking realistic views and helps in operational efficiency. The Line Operations Safety Audit carried on by the company hint on reviewing the performance of the crewmembers. It helps in unearthing human faults. Singapore Airlines’ Ground Ramp Incident Prevention program launched in April 2004 sets objectives in creating safety awareness in the workforce. In addition to the above programs the company publishes in-house safety magazines, has designed a web site to act as a resource center by enabling Virtual Safety and Security operations. It also organizes safety weeks and forums for generating further safety awareness. Finally, the company also follows the external audit programs on Operational Safety conducted by the International Air Transport Association. (De Silva, 2006, pp. 4-16). Discussion       American Airlines by dearth of its electronic paper mode is tending to prove the company’s information delivery practice more efficient. The electronic paper mode has made the company enable to distribute its service and maintenance manuals online to a wide customer base. American Airlines is greatly helped by the technology of electronic paper in use for it compresses about 85,000 pages in 17,000 work cards. The Work Card Management System operating on software like Standard Generalized Markup Language (SGML) with FrameMaker and Adobe Portable Document Framework has helped speeding up the process of printing and distribution of documents. The above technology in use has a number of key benefits accruing from it other than promotion of online availability of manuals. Firstly, the process helps in saving the operational time and thereby the airlines company can accomplish more amount of work in lesser time. Secondly, the process further emphasizes on Safe Management Systems practices of the airlines company by providing updated information through net. Finally, the engineers of the American Airlines Company can better focus on issues that are more important rather than concentrating on the above cause. (American Airlines, 2001) In addition to the said factors, the American Airlines or AMR operates based on the mission of providing an environment of safety, dependability and friendliness to its passengers. (American Airlines, N.D.)       The Lufthansa Airlines in the light of its safety management programs in Airline Operations helps in better motivating its employees to function in a hassle free environment. Moreover, it helps in rightly committing to Quality Assurance and Effective Management standards of the company.  Further, effective safety management programs initiated by Lufthansa Airlines helps in segregation of roles and responsibilities and reduce the practice of shifting the blame. Similarly, proper cargo management practices taken by the company help in maximum optimization of supply chain models and thereby increase revenue. Timely dispatch of cargo at their respective destinations also brings in greater customer satisfaction. In regards to Airport Management the company by conducting an audit on the Operational parameters hints on the areas where service parameters and quality needs to be enhanced. Effective training is likewise initiated. Updating technology needs in airports helps in promoting effective collaboration between the airports and enhances safety. (Lufthansa Consulting, 2010). Opportunity and risk management initiatives taken by the company helps in reducing the re-occurrence of faults and focuses on increasing the profitability of the company. (Lufthansa Investor Relations, 2009)       In regards to United Airlines Safety Management Systems, it needs be mentioned that the company by continuously monitoring the flight operations in the light of rules and regulations reduces the chance of occurrence of accidents. The happening of an external audit conducted by International Air Transport Association reaffirms the point. Moreover, the review conducted by the Federal Aviation Association on the operational parameters of the company evaluates the structure and performance in the light of Federal regulations. This in turn helps in rightly rectifying the same in case of discrepancies observed.  (United, 2010).       The Singapore Airlines in the light of conducting the Incident and Hazard reporting programs results in effectiveness resulting through creation of an environment of trust. It promotes an open channel for effectively conducting reporting activities and helps in giving feedbacks on time.  The Flight Data Analysis Program helps the company in getting alert to operational malpractices and thereby evaluates the safety standards. Line Operation Safety Audit initiated by the company helps in identification of errors caused due to Human Factors. It helps in better focusing on training needs. Crew Resource Management programs of the company helps in resolving errors. Thereby it helps in curbing down the effect of consequences in regards to such errors. The program of Ground Ramp Incident Prevention initiated by Singapore Airlines helps in increasing awareness relating to safety and helps create competent safety practice standards at all levels. In regards to the Ground Ramp Incident Prevention (GRIP) Project of the company, it is observed that faults for every 1000 samples were reduced by 86 percent. (De Silva, 2006, pp.4-13)    Conclusion             The Safety and Risk Management have turned out to be the primary needs of any Airlines Company. Events like an increase in terrorist activities in the international sphere combined with the frequent occurrence of fatal accidents have prioritized the need for safety management. It is observed in this context that many countries have formed regulatory bodies to closely monitor the safety initiatives taken by the aviation companies. The participation in these programs depends on the voluntary approach of the airlines staff. It cannot be forced by regulations. Improved safety management practices incorporate training both on and off the job of airlines staff. Further, it recommends audit programs to evaluate the operational and behavioral standards of the airlines in regards to rules and regulations set by the governing bodies like the Federal Aviation Administration in United States of America. Airline companies like Singapore Airlines have also initiated in-house safety programs to create enhanced awareness for the same. In regards to the safety paradigm, it is observed that reason for the faults caused are both human and technological. Effective programs like Crew Resource Management programs helps reducing the occurrence if faults caused by Human Factors. It prevents the reoccurrence of an incident through effective training. Technological advancements also help in speeding up the operational process and take care of the safety paradigm. The Risk Management system of the company also needs to be effectively handled to safeguard the company from varied external risks, which in turn hamper the business. Timely reviews of such risk management initiatives must be done to update the same and in increasing its effectiveness. Apart from social, economic and internal risks, the airlines also face environmental risks. Methods like weather risk analysis helps curb the effect of the same. In total an effective safety and risk management taken by airlines company help in drawing customer satisfaction and increase in the revenue of the firm.       References 1. “American Airlines”, (N.D.). Mapsofworld.com. Retrieved on October 6, 2010 from: http://finance.mapsofworld.com/company/american-airlines.html 2. “American Airlines”, (2001), abobe.com. 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