Airline Operations: The Impact of a Global Monitoring System on Safety and Finances - Coursework Example

 Table of Contents Table of Contents 1 Introduction 2 Problem Statement 3 Justification 4 Safety and Tracking Proposals 5 Cost-Benefits Analysis 7 Bibliography 10 Introduction Disappearance of an airliner is a concept that surpasses logic, for the immense size of such an engineered object. The failsafe and safety measures and constant communication with the airport towers should provide details of the whereabouts of the aircraft, of a much lesser size. Regarding technologies such as Radar, the disappearance of aircrafts, much less in the 21st century, should not be an occurrence. With reference to current affairs, such as terrorism, one might have thought that the plane was shot-down (Power-Waters 2001: 92). While in the case of nature, freak weather conditions might have disintegrated the craft and buried all evidence of the craft. The problem with both hypotheses is that there are early warning and detection systems for either case. In the case of terrorist activity, various routes are avoided and security measures in monitoring the people getting on board utilized to ensure mitigation of associated risks. In considering weather, technology has been used to analyse global weather, identifying possible risk zones, and hazards that may affect flight, thereby averting any accidents that may be affiliated to weather conditions (Becker 2013: 49). In addition, there are on-board systems that have been designed to act as beacons for an aircraft in the event of failure. Components such as the black box have been designed to survive intense pressure from the environment and external factors. The disappearance of an airliner, on a scheduled flight, via ‘safe’ routes, with all systems working correctly, and all personnel up to par, beats logic and sense in every way. Problem Statement Airline safety is and has been a concern for many players in the industry for decades. Continuous enhancements and improvements in the standards of aircrafts have been focused on ensuring the safety of operators and passengers. Companies and businesses in this field have incurred expenses geared towards improving the aircraft design, but from the evidence of disappearing and crashing flights, are not fool proof (Cobb & Primo 2003: 53). Disappearance of aircrafts while in flight is not a new issue, as it has been with the Bermuda Triangle, but understanding the factors that contribute to the disappearance is yet to be understood. Several factors may lead to a failure in communication between the aircraft and tower, affecting the data on the location of the craft. In such a scenario disappearance is a simple case of misplacement of an aircraft, such as human error, instrument and measurement inaccuracies, and foreign objects in flight that may have interference properties such as magnetism. The use of navigation technologies such as Global Positioning Systems (GPS) in real-time tracking are technologies developed to ensure the ground crew receives data from an aircraft at all times, with respect to condition and position (Fitzgerald 2010: 104). In every system, it is elemental to consider the possibility of an error, which translates to the GPS system of aircraft tracking not being a hundred percent effective and efficient (Lawrence 2013: 67). The inability to have a fool proof real-time tracking system is the basis by which support and backup systems of tracking are used. The incorporation of Wide Area Augmentation System (WAAS) and aboard Inertial Navigation System (INS) technologies in navigation is evidence of the extent to which aircraft manufacturers and operators engage to ensure safety in flight (Gero 1996: 88), even in the event of a failure. Loosing track of the aircraft, though unlikely, is a possibility, even with countermeasures incorporated in the system. Since factors such as ignorance, neglect, and freaks of nature may nullify the effect of the engaged systems. Justification Despite the use of technologies such as GPS, WAAS, and INS, aircrafts still disappear (Holanda 2009: 86). Evidence of disappearing aircrafts, especially in top classes, as the case of a long haul airliner (for example Malaysian airliner), is a strong point by which arguments for improved global monitoring systems. The loss of a single aircraft is a huge blow to the airline industry, as it has a high affinity to loss of life, where passenger ferrying crafts are concerned. The call for new methods of tracking aircrafts in real-time as sanctioned by the International Air Transport Association (IATA) in June 2014 (IATA, 2014), indicates willingness of the body to invest in a new system that ascertains the safety of passengers and limits the loss of investment to players in the industry (Ferguson & Nelson 2014: 67). IATA was involved in the development of a panel that was responsible for keeping track and considering a variety of new technologies that would help in real-time tracking of aircrafts (IATA 2014: Para 3). Various proposals have been tabled to improve the current monitoring systems. Seeing as to how there is no immediate replacement for the existing system, propositions such as the installation of video recorders in cockpits (Pasztor 2014: Para 4) as suggested in a recent meeting between the United States of America and Europe International Air-safety Authorities are an alternative (Rodrigues, Cusick & Wells 2012: 104). Developments directed towards improvement of the current system of real-time air flight tracking are natural following a public outcry on the failure or lack of information following the disappearance of the aircraft. The incorporation of other technologies in aircraft tracking might contribute to the enhancement of existing systems, but might not be a complete overhaul of the navigation systems. Safety and Tracking Proposals Developed nations play the most influential role in air safety standards. The U.S. and European authorities in air safety and control have policies, regulations, standards and requirements that have been forwarded to any party willing to operate in the region’s control regions. Adherence to the air authorities’ requirements is mandatory, and considering the flight between the two regions, a common approach is elemental to safety in air safety. Compromise and common ground must be found in developing a global safety system for the air transport industry, and agreements across borders are difficult. There is a universal agreement on the need for improved safety systems (Wald 2012: Para 2). The question is how to achieve that result. In considering the causes of aircraft disappearance, the approach may be different for the parties involved in the policy formation. A challenge could be directed to human error, considering pilots and controllers, while a different view could concentrate on the mechanical and electrical systems of the aircrafts, or both depending on the (believed) cause of the last disappearance. The parties involved in discussions supporting reform may feel the need to improve on a particular aspect of security, monitoring and components (Huang 2009: 84). Ensuring an agreement between all parties is important, as there is a weight on the costs that are to be incurred via different enhancements to the aircrafts. Agreements may be common, but by considering the economic state of the region, the time allowed for changes may differ, which shows a lack of conformity in the involved bodies (Paur 2010: Para 4). The disappearance of the Malaysian Boeing flight 370 (in 2014) sparked discussions on the ability to track flights over oceans ad polar regions. Current systems have been faulted of not having the ability to track aircrafts, minute-by-minute globally. Challenges in technology based on extreme conditions and expansive areas such that Radar may not work present a challenge in real-time air flight tracking (Kane 2003: 66). Different companies, whose specifications, develop tracking technologies and capabilities may differ, in line with marketing forces. The contributions of the company are limited to technology fine-tuning, but there is a need to improve on the current method of tracking. ICAO and IATA have invited contributors from different schools of thought to table global tracking systems that would facilitate tracking of aircrafts over the globe’s expanse, incorporating oceans and polar regions (Pasztor 2014: Para 4). The area of concentration in the setup is not the design of the system, but of the technical and functional ability of the monitoring design. Furthermore, increasing the data transmitted from an aircraft is a recommendation that has come up from the failure of the Malaysian flight. Transmission of flight data, including the performance of systems (aero, mechanical, electrical, and hydraulic, among others) and on-board personnel (mainly video) is part of the suggested developments in the communication between tower and aircraft (Smith, Furse & Gunther 2005: 1472). The data capacity of transmission is argued from the facilitation of experts on the ground to reconstruct events leading to the disappearance or fall of the aircraft, thereby providing answers where there was none. Although air safety authorities are responsible for implementing regulations and policies, another vested group has been involved in making steps towards improving aircraft safety. Aircraft manufacturers, driven by various factors, have been looking towards developing a system that would covey flight data, from the position, speed, and condition among others, in an effort to improve on safety (Sweet 2009: 78). The manufacturers’ participation in improving the safety of aircrafts is seen as early steps to improve on the current safety of flights. There is a belief that more data from air flights would facilitate the search of ‘disappeared’ aircrafts, which is a hypothesis that has been developed from the inadequate data used in the search for different flights that have gotten lost. The data transmission may be there, but the ability to receive the data that is the major concern to ICAO and IATA. Systems that are developed with the intention of global transmission of signals would contribute to the degree of effectiveness associated with real-time tracking and ultimately the ability to locate lost crafts (IATA 2014). This must be facilitated by systems that are able to transmit data over long distances, under water, in snow, and in extreme conditions, among other challenges, such that the fate of every accident or disappeared craft shall be known. Cost-Benefits Analysis Development of an enhanced global monitoring system has benefits to the airline industry, and increased consumer ratings are one of them. Disappearance of an airliner equates to a loss in life, which is a decision, on whether to board an aircraft or an alternative form of transport, which cannot be made willy-nilly. A loss in business is expected in the short distance front, especially where ground transport can reach, especially with the arrival of faster trains. Adoption of a new tracking system is bound to improve the faith consumers have on the aircraft, and as much as it may seem an expense, it would be an investment towards the growth of the business (Stolzer, Halford, & Goglia 2008: 62). Investing in business to enhance services usually leads to new customers as well as retaining the old customers, and incorporation of better safety means in the transport sector is the equivalent of such an investment in business. This investment is particularly important to the consumers who travel overseas, for business or leisure (Krause 2003: 104). The business and leisure consumers rake in the most revenue to the airline business, and a lack of faith in the tracking systems may see a reduction in long-distance travel, due to a fear of loss in life. Although in the incidence where an aircraft has disappeared the passengers are regarded as a major loss, aircraft companies also suffer a huge loss in capital. Disappearance of an aircraft equates to a loss in revenue, in the form of invested capital as well as projected returns. Losing an aircraft is a huge loss to any airline company, especially since even insurance claims might be side-tracked by a lack of evidence. Efforts of searching for the aircraft also represent additional expenses that the business would incur, as both an act of duty and corporate social responsibility. Lawsuits may spring from such an event, which would translate to legal fees, and where the cases have been lost compensation to the plaintiff. The loss of an aircraft translates to an accumulation of costs that have to be incurred by the airline business, and this cost would come alongside other challenges in the business. Even in the event that an insurance claim made is met, there is an aspect of lost time. Unlike vehicles, where one can simply purchase and drive, airlines usually take time to be delivered. Prior to the delivery of the aircraft, there would be much downtime for the business, particularly the lost craft and its associated replacement. Society views the greatest loss in the disappearance of the aircraft as the disappearance in life. Though it is difficult, and some would say inhumane, to place an amount on a human’s life, loss of an individual has multiplier effect on the economy and wellbeing of a family, region, nation, and so on. A company may lose all its employees, a family all its members, just as well as a prominent member of the nation. The society would bear the most grief from a loss in life since it would consider the loss an attack on its being. The society may raise an issue over the safety of flying while targeting the industry of a single career and ultimately cause the shutdown of the targeted party. The loss in revenue is most likely to be affiliated with the actions of society, and further regulations and restrictions may be founded on the plight of the community. Society demands recompense to lost lives, which involves monetary compensation, but extends to other activities and securities to the beneficiaries of the affected victims. Adopting new and enhanced methods of tracking flights are an expense to the industry, but an expense that holds benefits for both society and industry (Diehl 2013: 67). The costs that would go into the development of a global monitoring system, from research and development to testing may be in the millions, but the millions will be spent on resource, of which is employment to the community. Investing in a new system would mean employment of members of the community, who would be beneficiaries of salaries, considering that such a plan may take several years to mature, and this development would be made with honour to members who lost their life in disappeared crafts. This approach would appease the society, partially since there would be a realization of efforts to ensure that no other members of society suffer a similar fate as those involved in the missing crafts. Investing in the project lifecycle of newly developed systems would be the greatest cost that investors in the airline industry would have to foot by adopting a new system, although there might be several trail runs that may have not produced the desired effect, the cost would be minimal compared to the possible downfall of the airline industry. Conclusion There is more safety than cost in the development of a new global monitoring system. The costs would be great for the initial stages of development considering that would be initiating a project in which trials and errors are expected. The process may involve the establishment of an entirely new infrastructure. The benefits that would result from such a plan would facilitate saving the face of the airline industry, with faith in the market having been addressed. The relationship between the market and the air transport service provided must be cordial as failure would mean death of the sector. 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