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Case study analysis
Boeing and Airbus, both airline companies, made an approach to the Iberia Airlines targeting a new market in Spain (Pandey, 2010). These companies are the sole massive producers of commercial airlines. While on an approach to the Ireland Airlines, a couple of negotiations strategies revealed themselves. Mr. Dupuy, who was the chief financial officer and leading officer in the search of a suitable airline supply for Ireland, significantly contributed to the decision on the airline company to supply planes to the nation. Additionally, Leahy Airbus’s salesperson and Bright (Boeing top sales representative), participated in an interactive negotiation with Ireland’s chief financial officer Newhouse,.
The case involving the two companies reveals a variety of negotiation strategies and tactics used by Dupuy while determining the best offer between the airlines suppliers. The case presents Dupuy as a well competent financial officer willing to negotiate on the airline proposals presented by the companies (Pandey, 2010). Despite Airbus winning the bid earlier on 1995, he is willing to shift the tender to another company based on the value of their offer. Additionally, despite presentation of top sales representatives from the two companies, he takes a step farther where he meets the managers to the companies on enquiries based on the best offer from the airline organizations.
Surprisingly, despite Dupuy waiting for the best offer from the companies, he places his bid value after the airline companies (Pandey, 2010). It is a strategic approach presented in the case aimed at ensuring that he does not negotiate with ‘himself.’ On the other hand, availability of second-hand planes as an alternative to Dupuy aids in ensuring that these airline companies enhance competition between themselves thus presenting a favorable bid for the plane supply.
The case presents some crucial sales strategies applied by the airline companies aimed at winning the bid for the supply. Discounts revealed by continued reduction of price, indicating that the two airline companies had the urge of cutting down their prices aimed at winning the bid. Similarly, additional guarantee of more seats that prompts an increased revenue for the Ireland Airlines is another sales strategy used in the case (Newhouse, 2007).
Fair competition, as presented, is an essential practice in business. Fair competition has a dependence on consumer education. Consumer awareness depends on information presented by sellers (Pandey, 2010). However, in the case, despite the airline companies presenting their offers with additional guarantees to the Ireland Airlines, Boeing, as highlighted Leahy, did not maintain honesty in presenting information to Mr. Dupuy. Initially, Bright postulated that 777 had a capacity of 30 more seats while compared to the Airbus plane. However, Leahy reports that Boeing carriers have at most five more seats than their Airbus. Seemingly, Boeing appeared desperate for the bid than Airbus. Unlike the latter, the former was not willing to give up on the bid as they continued pressuring Dupuy on his final decision regarding his offer. Lastly, the case presents a challenge to Ireland Airlines on the suitable company to offer a bid. Availability of alternatives grants Ireland a bargaining power that suitably sees them landing for the Airbus Newhouse,.
In conclusion, based on the observations made from the case, there are a couple of recommendations to the challenges presented. Bright as a sales representative should ensure he maintains his honesty to his clients. In addition, as seen in Leahy, he should give the clients time to make their decision without pressuring them (Pandey, 2010).
Newhouse, J. (2007). Boeing versus Airbus: The inside story of the greatest international competition in business. New York: A.A. Knopf.
Pandey, M. R. (2010). How Boeing defied the Airbus challenge: An insider's account.
ASALAM aircraft began in 1988 aiming to be the leader in maintenance, technical support and modification of aircraft parts in Saudi Arabia. It was developed through efforts from the Ministry of State and defense in line with the kingdom’s goals in increasing self-sufficiency and reliability in the aviation industry (Company, Alsalam Aircraft, 2013). Apart from offering services to the civilians, the company also deals with civil and military aircrafts in offering technical advice, support and maintenance options.
It is the leading repair in maintenance, repair, and overhaul (MRO) of avionic systems. The company has several aircraft hangers with three of them being the largest and capable of housing huge aircrafts. It has three B747-400 size aircraft hangers used for MRO services and housing of large aircrafts (Company, Press Releases). The hangars are fully equipped with offices and workshops in-built to facilitate the delivery of MRO services (Company, Alsalam Aircraft, 2013).
The Company has grown from 1988 and expanded its services with each year. This is because of the funding and support the company acquires from the royal institutions. The company AHS also incorporated different technologies into its MRO services, which have seen it, double up on the services. This is because it has increased the number of aircraft that it is capable of handling. In the current capacity, the aircraft company can handle Boeing, Airbus, Lock-head martin, Bell and Gulfstream IV, all of which require a vibrant and superior technology.
The company has been on the forefront in developing technological equipment and hiring skilled professionals that can handle aircraft of different sizes and specifications. This has increased its market share both in Saudi Arabia and in the international arena. Apart from offering services on MRO, the company also has a varied client base. This is because it deals with both civilian air crafts and military air crafts (Company, Alsalam Aircraft, 2013).
The diversity in the application operations increases the resources and proximity to advanced technology. For instance, during MRO services for military planes the company must acquire superior and first-class quality technology. This does not only work to the benefit of the serviced military air crafts, but it also boosts the resources available for the company to deal with other air crafts.
AlSalam began from humble endeavors where it pioneered its operations through the support of Boeing Company in 1989. Factually, the first MRO service was in 1993 (Company, Press Releases). Since then, the company has been on augmented investment procedure with key focus on meeting international standards. Fortunately, the developmental trend in the company has paid off with the universal recognition, charters and approvals offered due its excellent MRO services.
AlSalam Company has different state-of-the art technology equipped to deal with different services in the aircraft industry. The company has support shops with diverse equipment and technology that conforms to contemporary standards in the aviation industry. This makes it possible for the company to customize the interior design of an aircraft to suit client demands. The aircraft company leads in the design; implementation and finishing of customized aircraft's with classy interior design meant for high profile individuals.
The support shops are not only equipped with equipment that can facilitate customization, but they also have metal forming sections, lavatory shops, welding and thermoforming sections (Company, Alsalam Aircraft, 2013). This support shops offer additional technological services in MRO services. They serve to steer the company’s status to w excellent aviation company. The company appreciates the fact that some laboratory tests may be destructive, yet essential in the aviation industry. In order to carry out the sensitive operations, the company has a modernized non-destructive laboratory. Through the non-destructive laboratory, the company is able to conduct tests on sensitive materials that would otherwise self-destruct under ordinary tests.
They also offer composite services that are used in repair of wing blades. The composite services compliment the work done by the support shops in ensuring end-user satisfaction. The company is on the verge of expanding its facilities with an aim of increasing the support services offered on daily services. Moreover, the changing technology in the avionic industry requires that the company change its tactic in dealing with aircrafts. In order to conform to the change, the company introduced other services like; specialized military aircraft capabilities, avionics and radios, flight controls, hydraulics and miscellaneous services. These are meant to depict the excellent service delivery and superior quality in aircraft design from the company.
AlSalam commands the largest market share in the Kingdom of Saudi Arabia when it comes to offering maintenance, repair and overhaul services in aircrafts. Operating in an economy that is strongly influenced by Islamic beliefs and doctrines, the pricing of the services are not capitalist in nature. This implies that the company only charges services to acquire modest amount of profits. This contributes to minimal charges being offered for services. Unlike capitalist structure where the desire is to maximize on the amount of profits, the company focuses more on service delivery.
Extra returns are considered as incentives for the company and a reflection of the huge market share commanded by the company. In lieu of this, the company has attracted customers from different parts of the world. This is because of its cost-friendly prices that focus on quality and stands as opposed to service delivery. Consequently, the international aircraft market looking for cost friendly modification and technical support for aircrafts opt for AlSalam Company. This is because it offers quality and standards with minimal cost. Furthermore, the current market dominance is attributed to the unanimous support the company receives from the military wing of the Kingdom of Saudi Arabia.
Most of the military aircrafts are designed, maintained, and repaired at the company. This fact gives the company an edge as it has the military as its loyal customers. This implies that the company is assured of progression irrespective of the financial hitches among private clients. When private clients do not seek services, the company thrives through military support services. The regional dominance of the company within the region has made most airlines prefer to service their aircrafts at the company. Moreover, the company conducts repair services of loyal clients. The international recognition depicted through certification, charters and approvals elevate the company to an international status. This has broadened the market share for the company beyond the kingdom. Te market share for the company is controlled and influenced by the royal family.
Corporate social responsibility
Modern business is built on corporate social responsibility (CSR) which is one of the most fundamental principles in the business activities of organizations (SMITH, n.d). By definition, CSR refers to the ways in which companies manage their business operations with a sense of responsibility that goes beyond their main objective of making profits for their investors and shareholders to address issues affecting societal stakeholders. The societal stakeholders include consumers, employees, government, natural environment and the community at large.
There are four part model of corporate social responsibility, they include philanthropic, ethical, legal, and economic responsibility (SMITH, n.d). There are different societal expectation within the four part model. Philanthropic responsibility involves what the community desires about the business, ethical responsibility involves what is expected of the business by the society, legal involves what is required by the business by the society and finally economic responsibility is what is required by the business by the society.
CSR is central to the success of a company as it protects its goodwill, reputation as well as brand names (Boermeester, 2010). Companies which embrace CSR promote their capacity to attract capital in addition to improving the relations between employees, customers and the community at large. Such companies also benefit from improved financial performance and increased sales due to customer loyalty. In labor markets faced by shortage of skilled workers, companies perceived to be committed to CSR attract employees easily and have a high chance of retaining them (SMITH, n.d). Such companies also benefit from the reduced regulatory oversight by local and national governing bodies.
Evaluation of application by of the four-part model
The company has built several roads and infrastructure in the neighborhood, this has been of immense help to the community. Further, the company is also credited for the creation of King Abdul-Aziz airport primary school and hospital. These are notable philanthropic operations that the company has taken in order to return back to the society. The company has also opened up a foundation that helps students in receiving their studies abroad as well as the local education for pilots and other persons. This is an important factor as it has increased the number of Gulf pilots in the country and in the local airlines therefore, improving the lives of the local persons.
Technological research on new methods is one of the factors that the company has been working on. The most notable measure that has been taken is on the development of research on technology. This has been aimed at developing machines that do not rely on fossil fuels for energy. Ideally, this process has received tremendous growth from the period of the 2008. However, the problem is on availability, efficiency of energy, consistency and reliability. For instance, there were pump stations that were introduced to recharge automobiles that recharged the airplanes that did not require using fossil fuels. However, the output that was acquired and the amount of money invested by the company rendered the process of unfeasible. In the long run, people opted to use gasoline. Machines that do not require fossil fuels are yet to be produced in large scale for adoption by the majority of the operations by the airline. Technology has failed to offer an option that can lead to wide scale production of green machines. Nonetheless, these efforts are still under research with the aim of ensuring that future developments will be fruitful.
Reduction of chemical components. Another vital move is the elimination of alcohol and reduction of chlorofluorocarbons in cosmetic products like deodorants, colognes and perfumes used in cleaning the planes. The manufacturing companies are being advised to reduce the content of ingredients that lead to greenhouse gas emission. This venture has been developing at a snail slow pace. This is because most cosmetic product sprays that lack alcohol tend to fetch high market prices and this has led to increased costs for the airline. Nonetheless, there is a significant stride to face off sprays with alcohol content and ingredients that lead to environmental degradation.
Damping techniques to reduce noise pollution. In an attempt to reduce the levels of noise production occurring from the taking and landing of planes, the adoption of damping techniques on noise reduction becomes significant. Damping proof membranes are being used to lower the levels of noise to the required decibel limits. The airplane is also focusing on the reduction of greenhouse gas emissions by controlling and channeling the end products to other places. A significant technology that is being adopted is the directing of the emissions to mix with cleaning and water used by the airlines; instead of releasing it into the atmosphere. The water is then recycled for the use in cleaning and maintenance process in the other planes. Since the emissions are biodegradable, they combine with soil and do not cause environmental effects. However, such settings require a considerable amount of capital and deviation from the focal objective of the organization.
The company has guaranteed privacy in regards to the passenger's information. Today, the issue of internet privacy has become such a major point of discussion since it can no longer be fully guaranteed. The situation has become so bad that millions of Airline customers have been forced to sit back and watch as their credit card numbers are sold on the internet for a few dollars apiece. On other frontiers such as social networking sites, the identities of unsuspecting individuals are traded without any regard for privacy (Boermeester, 2010). The reason why this situation has escalated so much is due to the fact that online privacy is full of varying and conflicting interest Overall, airline companies and individuals advocating for privacy are at an impasse since the internet sites require all of an individual’s information while the consumers in general are unwilling to share too much information. The issue is further complicated by cyber criminals, whose sole aim is to hack into the websites that hold important information and proceed to use the information in order to gain personally. ASALAM aircraft has decided to ensure that it guarantees privacy by using advanced systems to ensure utmost security for its passengers. It has been described as one of the best airlines in terms of online security next to El Al airlines of Israel.
The company hires local staff as well as trains them. It has therefore, brought a lot of economic development to the constituents of Saudi Arabia. The company also signed another partnership with Armco, which is a Saudi based company dealing with avionic systems. This partnership would contribute to an increase in the maintenance operations of Boeing 737NG. The partnership with Aramco diversifies the MRO services offered by the company to include delivery of services to the Boeing type of aircrafts. The company will enjoy from the partnership, as it will be able to conjure new ways and methods of modifying, offering technical support, and repairing Boeing aircrafts.
This implies that there will be a diversification in the support shops and service rooms. It also means that the company ill be in a position to handle MRO service for huge aircrafts with satisfaction and conformity to international standards. The overall effect is that the competency of the company in the avionic industry will receive a boost. This venture continues to reiterate the position of AlSalam Aircraft Company as leading service provider in the region.
The partnership makes AlSalam to become the only company within the MENA region that is designated to work on the Boeing business jets (BBJ). Apart from addition of service delivery and superiority, the partnership gives AlSalam Aircraft company a competitive advantage other market entrants and existing companies.
It eliminates any form of competition. The partnership saw the company designated to be the sole provider for head-of state and very important person aircraft in the MENA region. This is another milestone edging out competitors in the region. The partnership with Aramco played a vital role in the acquisition of the three certifications and approvals formed as part of the 145 organization. These additional services acquired through partnership and innovations serve to increase the value of the company.
Business ethics and CSR
Ethics has acquired a different dimension in the 21st century that includes organizational culture and it became enshrined in the laws. Organizational culture forms part of ethics in business, coupled with the corporate social responsibility (Fernando, 2009). Rather than being optional, corporate social responsibility became constitute of ethics. Studies involving ethnographical factors and human behavioral patterns became core in determining ethics in business (Fernando, 2009).
Ethical business culture has developed into part of the strategic objectives of ASALAM airline. Unlike, in the past, contemporary practices require that both senior and junior managers share ethical dilemmas in an open and transparent manner. This is not viewed as an intimidation, but progress towards achievement of strategic objectives. Ethics in the contemporary society is part of the organizational culture. The aim is changing the employees’ attitude in terms of their relationship to each other and the external environment.
The major event leading to the creation of business, as discussed earlier, was shift to contemporary business practices and increasing competition? With technological; factors becoming constant for most companies, managers decided to opt for an edge in their organizations by focusing on ethical patterns of the people ((SMITH, n.d)).
Another factor was leading to change was the change in human rights law. It was required that discrimination should not be evident in the workplace. There ethics was inculcated into the company operations to control employee attitude and behaviors.
Changes in ethical behavior have influenced positively the business environment. For instance, junior employees can point out ethical dilemmas making top management without fear of discrimination. It has led to the development of organizational culture as part of company principles. Reporting was altered to portray factual data and information since ethical behavior upheld credibility (SMITH, n.d). Ethical practice required that officers be accountable for information reported by ensuring due diligence in the company.
In conclusion, businesses are built on corporate social responsibility (CSR) which is one of the most fundamental principles in the business activities of organizations (SMITH, n.d). By definition, CSR refers to the ways in which companies manage their business operations with a sense of responsibility that goes beyond their main objective of making profits for their investors and shareholders to address issues affecting societal stakeholders. The company uses different theoretical and practical approaches to improve service and product quality in relation to its economic responsibility. It hires skilled professionals, thereby, reducing the margin for err from human intelligence. This also eliminates professional negligence. The company focuses on the system using six-sigma analysis, which seeks to check and evaluate the performance of the processes. In order to diversify on operations, the company has entered into different partnerships with the community by building roads, hospitals, schools and educating the locals on piloting and other courses.
Boermeester, S. (2010). Best of Dubai Vol 1., Volume 1. Dubai: Global Village Productions Ltd .
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Company, Alsalam Aircraft. Press Releases. 24 November 2013. Print. 24 November 2013.
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Baker, M. (n.d). Corporate social responsibility - What does it mean?
Bilson, J. (2010). Criticisms of corporate social responsibility.
Crowther, D., & Aras, G. (2010). A handbook of corporate governance and social responsibility. New York: Gower Publishing, Ltd.
Fernando, A. C. (2009). Business ethics: An Indian perspective. Chennai City: Pearson Education India.
SMITH, N. C. (n.d). Arguments for and against corporate social responsibility.
Zu, L. (2008). Corporate social responsibility, corporate restructuring and firm's performance: Empirical evidence from chinese enterprises. New York: Springer.
Air transport is one of the most sensitive transport sectors in the world. This is because the risk involved in the transport is high and there are less chances of survival. Therefore, the national transportation safety board of America is strict on ensuring the right standards are followed to limit the chances of air accidents occurring.
The thesis of this essay is to analyze the aircraft accident that occurred in Nevada. Moreover, this essay focuses on the national transportation safety board of America findings regarding the incident. In addition, this essay seeks to establish the cause of the accident both direct and indirect.
National Transportation Safety Board of America
The plane accident number is LAX03MA292 as reported by the national transportation board of America. The plane was run by the Sundance Helicopter Incorporation and the plane’s registration number was Aerospatiale AS35OBA, N270SH. The accident occurred near the Grand Canyon west airport located in Arizona. The accident occurred in September 20/3003 (National Transportation Safety Board, 2007).
The helicopter crashed into a canyon wall while it was maneuvering thought the Descent Canyon located about 1.5 nautical miles from Grand Canyon West Airport in Arizona (National Transportation Safety Board, 2007). There were six casualties in the accident and there were no survivors. The helicopter involved in the accident was destroyed by post crash fire and impact forces. According to the air tour operators, the flight was operating under the Code of Federal Regulations. In addition, the visual meteorological conditions were favorable and the flight operated under the visual flight rules. The Sundance Helicopters were transporting passengers from the Grand Canyon to a helipad located near to the Colorado River.
Before the flight took off, the pilot flew the plane on an operational check around the company’s base in Nevada. After confirming there were no technical hitches, the Sundance Company ground personnel for the plane and the clients boarded the plane. The Sundance Company had planned a Descent Canyon tour operations where they were transporting clients to a sightseeing leisure trip. The company’s director of operation estimated every trip from the IG4 to the beach helipad would last about 3-4 minutes.
The accident commenced in the 11th trip through the Descent Canyon on that fateful day. According to the tour coordinator, she did not hear the pilot make customary radio calls when taking off to the beach helipad. Before the accident trip, another flight operated by the Papillon Grand Canyon Helicopters took off two minutes before the accident trip. According to the pilot operating the flight, the other pilot operating the accident trip did not make any customary call to announce his departure en route. Therefore, he was not aware of another helicopter behind him. The Sundance tour coordinator acknowledged that they observed the accident helicopter fly at the rim of the Descent Canyon for about 40 seconds before the plane started making a level descent. This was unusual because the helicopters usually flew directly from the loading pads to the top of the Descent Canyon (National Transportation Safety Board, 2007).
Further, planes flying across the Descent Canyon either nosed down towards the canyon or hovered over the canyon for a few seconds before making nose-low descent into the canyon. However, the Sundance tour coordinator alleged that the accident helicopter took longer before it descended into the canyon. They assumed that the pilot was waiting for the Papillon helicopter that had flew earlier to clear the canyon before he started making the descent.
Evidence at the Accident Scene
The Papillon pilot was one of the few first eye witnesses of the accident (Nickell, 2010). However, he was arriving at the Colorado helipad after finishing his descent, when he saw a large fire at the descent canyon. On the other hand, the operations director and other people at the IG4 did not see what transpired at the canyon descent because the plane had descended out of view. The planes main debris was located on the canyon wall about 400 feet past a near vertical canyon. The canyon wall had evidence of a gouging consistent together with a main root blade strike.
The pilot responsible for the accident’s plane was aged 44. He was eligible to flying commercial airplane and he had a valid pilot certificate. Further, the pilot was a certified flight instructor who had earned the ratings of a single, multiengine and rotor craft helicopter. The pilot also had a federal aviation administration first class medical certificate that had no operating restrictions.
Consequently, the pilot was an experienced pilot who owned a flight school located in Rancho, California. Before the Sundance company hired the pilot, his resume in accordance with the air transport rules and regulations. The pilot had logged 5.400 flights hours, which include 4360 helicopter flying hours before he was hired by the Sundance Company. Prior to the accident, the pilot has logged a total of 7860 flight hours, which included 6775 helicopter flight hours. Moreover, the pilot’s had just completed his recurrent ground training on February 20/2003. The Federal Aviation Administration records showed that the pilot had no incident, accident or enforcement actions reported (National Transportation Safety Board, 2007).
Statements from Flight Passengers under the Accident’s Pilot during the Tour
The national transportation board carried out private investigations to find out the pilot’s credibility. Thus, they obtained statements from previous clients who had operated under the accident’s pilot earlier that day. One client stated that the pilot hovered the plane recklessly while descending into the canyon. The client stated that the pilot was very fast and he swerved the helicopter back and forth. In addition, the client insisted that the pilot flew the plane well when taking off, but he hovered very close to the canyon wall when descending 100 feet from the top of the canyon rim (Nickell, 2010).
Further, the client alleged that the pilot followed the canyon contour wall very closely making quick movements and abrupt stops. The client considered these abrupt stops and quick movements excessive for a normal flight. Another passenger on the same flight as the first client in the tour described the descent into the canyon as so abrupt without warning. She described the descent as a horrifying free fall dive.
Moreover, a third passenger recorder a statement indicating that the pilot pointed the helicopter’s nose straight down into the canyon. During this descent, the passenger stated that the pilot helicopter tilted dangerously to the right. The passenger indicated that no passenger was able to take photographic evidence of the flight because they were clinging tightly to the helicopter during the descent (National Transportation Safety Board, 2007).
Complaints from previous clients about the pilot
Sundance Company had previously received complaints about the pilot from clients even before the accident incident. According to the company’s sources, they received a complaint through fax in July 5/2001. The client complained about the pilot’s descending into the canyon. Further, the patient even demanded a refund and seemed totally disappointed by the flight. The Sundance Company did not take any actions against the pilot after the complaint was filed (Perritt. 2014).
Another complaint regarding the pilot was reported in august 17/2001. The Sundance Company issued a memorandum informing the director of operations to take disciplinary actions against the pilot. This was after another client complained about the pilot’s dangerous descent into the canyon wall. The complaint came from Air Vegas owner who had initially taken a flight under the accident’s pilot. He accused the pilot of going against the Tour Operators Program of Safety regulations. The pilot was given a one week suspension from flying the company’s planes. The pilot agreed to comply with the one week suspension terms (National Transportation Safety Board, 2007).
However, according to the Safety Board investigators, the Sundance Company never enforced the pilot’s suspension (Perritt, 2014). The evidence is present in an email written by the Sundance Company director of operations requesting the suspension to be delayed because of lack of enough pilots. On the other hand, the Sundance Company defended their failure to suspend the pilot claiming that they had postponed the suspension. Nevertheless, the suspension was never enforced indicating the company’s unprofessional hitches.
Statements from the Pilots Former Work Mates
A former tour coordinator for the Sundance Company reported that many clients were not comfortable with the way the pilot descended down the canyon wall. The former tour coordinator acknowledged that she had flown with the pilot many times before the incident. She admitted that the pilot was prone to causing fatal accidents because of the risky way he used to fly the planes. She presented the Safety Board Investigators a copy of a video footage where the pilot flew very close to the canyon wall almost crushing into the wall (National Transportation Safety Board, 2007).
Apparently, other pilots operating for the Sundance Company referred to the pilot as an over qualified and experienced pilot. However, they acknowledged that he often exceeded the Company’s safety rules especially when descending down the canyon wall. Another pilot who had reported for duty during the fateful day reported that she noticed the pilot descending at dangerous speeds exceeding the safety standards (Nickell, 2010).
Information about the Operational Condition of the Accident’s plane
The helicopter involved in the accident was originally manufactured in 23/10/1985. It was originally an AS350B model before it was converted to AS350BA model. The modification included structural changes in the plane, which constituted of new rotor blades, modifications in the drive system and new tail rotor. These modifications were in accordance with the Eurocopter Service Bulleting Bill of plane standards. The plane was bought by the Sundance Company in 3/2/1999 and the new helicopter’s registration was issued in 17/5/1999.
Under the new ownership, the Sundance Company modified the helicopter in 2/3/1999 and they were issued with a Supplemental Type Certificate. The Sundance Company changed the helicopter’s engine to a more powerful engine. Before the accident, the helicopter had made about 54976 cycles and 10890 flight hours. The new engine had made about 12, 465 cycles and 9, 516 flight hours. The helicopter did not have a cockpit voice recorder or a flight data recorder. However, these recorders are not mandatory according to the safety regulations (National Transportation Safety Board, 2007)
Previous Accident Involving the Helicopter
The helicopter involved in the fateful accident had previously crushed in two incidents. In May 23/2000 the plane’s vertical fin assembly hit a rock and received minor damage. The helicopter was repaired and inspected in accordance with the Eurocopter approved inspections. Another accident involving the helicopter was reported in July 30/2000. The accident occurred when the helicopter had a low-level flight turn and the main rotor blade struck a tree. The helicopter was repaired and inspected according to the Eurocopter-approved repair standards (Perritt, 2014).
Findings about the Accident
Moreover, during the fateful accident, the helicopter was operating with the right weight and balance levels recommended by the Eurocopter flight manual. Further, before the accident commenced the Sundance Company had earlier issued all the pilots with a weather summary for the Las Vegas area. The weather was normal and there were no extreme weather conditions detected. However, the weather summary did not have weather information regarding the Grand Canyon area and the IG4 was not capable of providing a reliable weather report. Witnesses in the Grand Canyon area reported that the area was clear and there were no turbulence reported (Nickell, 2010).
After the accident, various tests were carried out on the vital parts of the helicopter. These tests included engine and rotor system examinations. The rotor and engine system examinations indicated that the rotor blades and the fuselage were intact during the flight. Moreover, the engine transmissions in the helicopter did not reveal any preexisting defects. Further, the servo actuator system examinations were carried out after the accident. These examinations revealed no pre-impact malfunctions (National Transportation Safety Board, 2007).
Another post accident report was carried out on the helicopter. This report included the study of camera images during the accident. Four digital cameras were recovered from the helicopter’s accident site. The cameras were sent to the Safety Board Vehicle Recorder Laboratory. Image data was recovered from two cameras containing photos of the accident’s flight. Other photos recovered from the passenger’s cameras were also sent to the laboratory for analysis and comparison. After investigations, it was confirmed that the images provided sufficient evidence that the plane was flying at a low altitude close to the canyon wall (National Transportation Safety Board, 2007).
Professional Aviation Standards
According to the National Transport Service Board the accident can be partially blamed on the Sundance Company for failure to take action against the pilot’s behavior. The accident may have been avoided if the right professional standards of aviation would have been followed. In addition, there other work colleagues alleged that the pilot had a reputation for flying at risky angles.
Maintenance Personnel Fatigue
The quality control inspector and the mechanics, who were eligible for the helicopter’s inspection, had completed their work the day prior to the accident. Reports indicate that the mechanical operators may have been fatigued during the operation and the maintenance operation was not fully efficient (National Transportation Safety Board, 2007).
Therefore, the recommendations proposed for the Sundance Company entailed proper considerations towards the maintenance personnel working conditions. These working conditions include workload, adequate rest time, timely shifts and start time. Further, other recommendations made included the review of the human factors causing human error and its effect on the service performance.
The accident showed the fatal risk involved in aviation technical hitches. This case simulated increased sensitivity towards the efficiency of the air transport service board regulations and the safety of air transport. Thus, this is an example for other air transportation companies about the danger of neglecting duty.
Nickell, J. (2010). Camera Clues: A Handbook for Photographic Investigation. Lexington: University Press of Kentucky.
National Transportation Safety Board (2007). Aircraft Accident Brief. Washington, D.C. 20594.
Perritt Jr, H. H. (2014). Sharing Public Safety Helicopters.
The design of the routes and flights in the airline follows the hub and spoke model. Just like a bicycle wheel, the hub is at the center with the spokes leading away from it. The hub and spoke network operates with the hubs being the airports and the spokes being the flight routes. Delta Airlines has seven hubs (airports) that make up its main network for the flights.
The biggest hub is Atlanta. The hub also doubles up as the headquarters for the airline. The presence of the airline in the hub is felt with the promotions for the chosen operations displayed visibly in Atlanta (Fleming, 2010). The hub makes up the most important strategic position of the airline. The second largest site for the airline is the Detroit hub at the Wayne County. The airline acquired the hub from the northwest airlines after the merger. The hub in the Detroit Wayne county is an important strategic position from which all the planes flying towards the east coast and the Asian countries. Detroit is the primary gateway from the United States.
The third largest location for Delta Airlines is the former headquarters at Minneapolis-Saint Paul. This hub is used for both domestic and international flights. The airline also operates much smaller hubs in the Salt Lake City. The Salt Lake City hubs were acquired with the acquisition of the western airlines in 1987. The company also operates the hubs at La Guardia, Cincinnati and Memphis (Reed & Reed, 2014).
Atlanta hub is the leading location for the company. From this hub, there are vast numbers of international flights. The presence of the airline in the airport is emphasized on the writing on the Hartsfield-Jackson Atlanta International Airport. The hub has many international flights from the state to London. The London route is operated by three daily flights at 18 00 hrs, 20 45 hrs and 22 45 hrs (Fleming, 2010). The routes are operated by B767-400ER. The flights have full business class capabilities. The airline has cut the single Gatwick flight in order to focus on the Heathrow airport as the main entry and exit point.
The airline also flies to the KLM hub in Amsterdam. The airline operates three flights to Amsterdam in a day. The aircraft model used is the A330 and MD-11. Other destinations that the airline frequents include; ashen and Barcelona. It also flies to Beijing, Brasilia, Bueno Aires, Brussels, Dubai, Dublin, Dusseldorf, Istanbul, Johannesburg Lagos, Madrid, Milan, Manchester, Munich, Paris, Rio De Jenairo, Rome, so Paulo, Stuttgart and Zurich.
From the second hub in Detroit, Delta Airlines operates fewer flights. Flights operating from the airport lead to Amsterdam, Frankfurt, Hong Kong, Beijing, London, Nagoya and Tokyo. The airline also flies from the Los Angeles hub to Australia, Rome, and Tokyo. In most of the routes, it is no longer viable to operate long haul flights. They prefer to code share the routes with the most dominant airlines flying the routes. Strategic importance of the routes at Heath row and Amsterdam is critical for the success of the flights. Flying with the airline to the two hubs guarantees transfers to one of the main flight teams such as the sky team. The quality of the flight service attained from the strategic partners is more or less the same with the one attained from flying delta (Reed & Reed, 2014).
The development of the strategic alliances was informed by the need to take advantage of the customers flying those routes without incurring the additional set up costs. Strategic alliances allow the airline to come up with new partnerships with the main benefit being the creation of more customer value and sustenance of goodwill (Fleming, 2010).
The decision to fly international routes also aligns itself with the organizational goal of ensuring that the company has increased its presence in the international routes. It is also part of the organization’s goal to be an international airline (Fleming, 2010). It dispels the notions that the airline is a reserve for the domestic market. The selection of the routes and the design of the routes architecture have followed the main demand routes. The concentration of the company is on the European aviation market. The Atlanta hub is the main departure and entry point for the airline. Any person connecting to Europe has to pass through the hub. The design of the airline to include a major hub has ensured that the management of the airline and its respective routes adhered to in the right manner (Reed & Reed, 2014).
The concentration of the flights in one airport next to the headquarters has also increased the management’s control over the airline. Therefore, all decisions made by the management in the design of the route network have been aligned to the organizational goals and strategies. It has also been designed to increase the efficacy of the management.
More focus on the international markets has been a running goal for the airline. It has also been cementing its positions in the domestic market since with the acquisition of the northwest airlines and western airlines; it also obtained the rights to ply the routes that the smaller airlines flew. The domestic airlines have smaller planes. In both the domestic and international flights, there is an emphasis on the classification of the passenger categories with the main structure being business, second and third class. Domestic flights are smaller than the international flights.
The airline has differentiated its product offering to meet the needs of the specific markets. The customers have an option of flying business class whereby there are better advantages or frills than in the rest of the classes. The consideration in this product development is the comfort and the inclusion of all the members and the customization of service to meet the needs of a certain market segment. There is also the third class, which is a cascade of the first class. It has reduced benefit. The final class is the third class. This class has fewer frills. The cost of the service is the main concern in the development of the products. Accommodation of all the customers is a priority in the company. Therefore, the airline has developed the different products to meet the needs of the people.
The airline industry is rife with high costs of operation. The main costs that the company has include the payment for partnerships with Arline teams such as sky team, the running of the internal operations such as servicing and maintenance of the planes and airports, the payment of the employees, the payment of leases on the planes and marketing of the company (Fleming, 2010).
The fare structure in the airline is dependent on the class and the distance. The overall strategy has been the reduction of the dollar per mile in the international flights in order to reduce the competition’s grip on the airlines routes. The low cost entry strategy has been working for the company with the main elimination of the wasteful processes being the goal for the company. Therefore, the company has managed to offer reduced fair prices to all the people more so in the interracial flights (Fleming, 2010). The company also has customer loyalty programs that seeks to reduce the cost of flying as a means of rewarding the loyal customers,
Distribution and promotion
The airline has always adopted a distribution campaign that is centered on the hubs. Each hub is responsible for a certain geographic region even though there are times when the distribution channels overlap (Reed & Reed, 2014). The focus for the company is still the domestic market. The company has routes that reach virtually all the parts of the nation. In the international market, the company operates from Atlanta, Los Angeles and Detroit.
Promotion activities conducted by the airline seek to emphasize on the low costs and the focus on the rewarding of loyalty. The airline uses some of its hubs to promote itself since the medium is cheaper. In the Atlanta airport, the airline has bold writing on the advantages of flying with them (Fleming, 2010). The second promotion channel used is the mainstream media. The airline has adverts running in the broadcast stations (radio and television), the internet and print media. It occasionally launches promotion campaigns aimed at getting certain customers.
Target customer segments
The airline targets all segments of the customers. It targets the domestic customers with the market still leading for the airline. It has also increased the focus on the international markets whereby the customers come from the different destinations. In these two types of destinations, the airline also focuses on the classes. It has business class, second class and third class. Differing advantages accompany the classes (Fleming, 2010).
Competition and profit history
Despite the increased competition in the market, the airline has been capable of managing a record of profitability. The competition in the market includes the domestic airlines and the international airlines (Reed & Reed, 2014). The company has been able to attain profitability by waste reduction. The company has been making consistent profits over the last 4 years (Fleming, 2010).
Fleming, S. (2010). de[Washington, D.C.]: U.S. Govt. Accountability Office.
Reed, T., & Reed, D. (2014). American Airlines, US Airways and the Creation of the World''s Largest Airline. Jefferson: McFarland & Company, Inc., Publishers.
Fly emirates is one of the leading airlines in the world. It flies to various destinations all over the world. Its foundations are in the emirates region of the Middle East. The company has managed to develop and sustain its leading position in the world due to its skilled labor set and the fleet of modern airplanes that it operates (Martin, 2009). Survival in the airline industry depends on the ability of the organization to cut on costs while providing impeccable quality of service. Service quality dimensions that the company focuses on are timely departures and arrivals, fat turnaround time and amicable cabin crew service. The industry has many barriers of entry given the regulations and the high initial investment costs (Gilmore & Williams, 2009). The industry is dominated by numerous carriers from Europe, America, Africa and Asia. Stiff competition between the players in the industry has led to the development of a sharp focus towards the customer with the major players offering the customer loyalty programs in form of frequent flyer programs. However, the companies that have been able to distinguish themselves from the rest have always focused on the creation of the best human resource development programs since they are the source of the competence and competitive advantage for the organization. The industry requires highly skilled labor such as the pilots, engineers, ground crew and cabin crew. The investment in training the employees in the industry could be lost if they are not well versed with the diversity. There are different aspects of diversity that the airline passengers demand (Mondy, Noe & Gowan, 2005). The company ought to provide the diverse passengers with the same quality of service. This paper focuses on how the airline ought to change the diversity policy.
The airline flies to all parts of the world. Therefore, there is a diverse group of passengers that use it. Being able to derive the customer’s satisfaction and retain them is dependent on the ability of the company to come up with strategies that focus on the diverse customers. A customer could rate the quality of service according to the generic ratings. However, some of the unique aspects of the customer could lead to the development of an aversion from the company. A loss in customer is a threat to the stability of the company.
Therefore, the only way that the company can retain its customers is by looking at the different aspects of the routes that it plies. Some customers will be found in a certain route. The staffs that work on this route have to understand what issues that affect the perception of service quality that the people in the route they hold. They should go further to look at the individual religion and cultural influencers that will affect their reaction to a certain dressing mode or not. The organization ought to change its focus on diversity training from the universal application to a route specific training model. The abolishment of the universal training module will lead to the reduction of the confusion that arises from use of one model to training (Gilmore & Williams, 2009). In the event that a staff member transfers from one of the routes, he or she will have to undergo retraining to enable him or her focus on the pertinent issues that apply to the route. The new model will enable the company to provide the customers with the service quality that fits into their dimensions (Mathis & Jackson, 2003).
However, the full crew should be mixed with other people that are aware of the general protocols on diversity to cater for the rest of the customers that may be plying a route for the first time. The pertinent considerations when reviewing the diversity training policy is the long-term station of the employee (Martin, 2009). Whenever the clientele plying a route will be coming from a certain culture, the airline ought to focus on the development of the crew that is particularly conversant with the culture. It should also focus on the development of more in-depth knowledge of the clients before they board and configure the assignment of the attendants focusing on certain clients. The company ought to break the traditional even in seemingly trivial issue of dress code. Anything that will affect the perception of the client on the diversity policy of the company ought to be considered. Decisions ought to be made based on the objectives on diversity management set by the company. Ways of not managing by the objectives ought to be ruled out.
Change of the diversity policy is important since the company needs to cater for the needs of the ever-changing global populations. The cultural differences and factors that inform the perception on diversity have to be put into consideration since now more than ever, there is a need for the development of the approach to diversity that seeks to increase the accommodation of the differences than imposition of a conventional way of doing things. The competition in the industry also forces the company to consider the diversity management as the only way of sustaining the competitive advantage that the company currently enjoys. Increase in the technology and the affordability of the same by the major players in the industry has eliminated the possibility of the technological competence being the main source of competitive advantage. In the airline industry, the only source of competitive advantage is the customer. The diverse customers that use the service ought to feel that they are treated in their own way while maximum attention is expended on the cultural difference. Customer’s loyalty will now be gained by the way that the company treats their points of diversity.
The second perspective of looking at the importance of the diversity-training program is from the employee’s point of view. Employees in the modern firms are often drawn from the international labor market. These employees are equally qualified and have to similar output levels. The ability of the management to develop a training program that will enable the employees to look at their points of diversity as sources of strength will lead to the development of synergy in all that they do (Mondy, Noe & Gowan, 2005). Often, the workers will be able to develop an understanding of the input that the differences that they have bring in the working environment and capitalize on them. Some of the customers are better versed with some customers than others. For example, some of the crew could be better versed with the children such that they have an easy time dealing with the children on the flights. The diversity-training program ought to focus on the diversity and what it brings to the company. Understanding of the diversity as a source of competitive advantage will lead to the development of an organization that will be able to serve different groups of customers (Martin, 2009).
Establishing a sense of urgency
The people involved in the change process ought to understand that diversity is a source of competitive advantage and it is no longer a fulfillment of the responsibility of the company to employ people from the diverse backgrounds (Martin, 2009). The urgency will come from the catch up played by the rest of the businesses in the market that has ruled out the technological advancements as the main source of the competitive advantage.
There are different hats that will be put on in the debate surrounding this topic. The best coalition will be formed by the positivists and mavericks in the organization. It is important to gain the support of the top management since they will have the final perspective on the issue.
Developing a vision
The vision of the policy change is to come up with a different policy on diversity that will be more targeted and focused on the different cultural groups that are served by the company.
Communicating the vision
The vision will be communicated to all members of the organization with the focus being the employees that will be charged with the implementation. However, all the members will be required to contribute their perspectives on the policy change. Customers should also be informed about the diversity policy change.
Attaining short-term gains
The short-term gains will be assessed using the acceptance levels of the managers in the functional levels as the bar. The consolidation of continual short-term gains will lead to the long-term and overall gains (Gilmore & Williams, 2009). The policy will be anchored into the culture of the organization by inducting the new employees using the new and revised manual. More attention will be expended on the development of new approaches to the culture (Gilmore & Williams, 2009). Development of an inclusive approach to the project will lead to the development of the approach that the change being proposed is meant for all the people. Failure to include all the people will lead to the resistance in the first stage of change management. Ensuring that there is a united approach to change is one of the key short-term gains in the change management.
Resistances to change
There are various sources of resistance to the proposed change. One of the principal sources of the resistance will be the management since they may purport that the change will be detrimental to the continued operations of the organization (Mathis & Jackson, 2003). The counter of the resistance will be by informing the resistance pockets of managers that the changes will be better if instigated now than when the organization has to deal in firefighting activities. Normal anti-change attitude is expected. It will be countered using the freeze and unfreeze method of change management.
In-house communication of the change to the departments using internal memos
Development of a common online platform for the communication such as a Gmail group
Individual communication whereby it will be used for the top management only
The implementation of the change will take two years.
Introduction of the change to the management and incorporating new ideas from the executive managers 2 months
Development of the strategies for managing change 6 months
Implementation of the change 8 months
Evaluation of the change; intermittent evaluation will concurrent with implementation 8 months
Evaluation of the final change management 2 months
Gilmore, S., & Williams, S. (2009). Human resource management. Oxford: Oxford University Press.
Martin, J. (2009). Human resource management. Los Angeles: SAGE.
Mathis, R., & Jackson, J. (2003). Human resource management. Mason, Ohio: Thomson/South-western.
Mondy, R., Noe, R., & Gowan, M. (2005). Human resource management. Upper Saddle River, N.J.: Pearson Prentice Hall.
The prices of airlines are often made on several factors, and distance is one of them. This is the basis as to why it is possible to find that airfare to a long distance costs the same as airfare to a short distance (Peoples, 2012). This is the reason as to why an airline ticket costs the same from Casper, Wyoming to Denver, Colorado, and from Denver to Orlando, Florida.It is important to realize there are four factors that drive the prices; they include competition, supply, demand as well as oil prices. Together all these four factors affect the load factor of an airplane. Airlines in almost all instances often want to fill their planes and maximize profits, and this is done by calculating the plane’s load factor.
The load factor of an airplane can be described as the percentage of seats that are sold on a flight. Automatically, the airlines often want this number to be high as possible for them to get maximum revenue (Peoples, 2012). By the law of supply and demand, if the load factor is low, and the demand is low, it means that the airline will increase the availability o the cheap fares. On the other hand, if the load factor is high, and the demand is high, the airline will in most instances raise the prices. The airline prices follow the simple market demand and supply curve shown below.
Despite the distance, it is critical to realize that in the airline industry, there are two types of passengers, there are those business travelers, and there are the leisure travelers (Doganis, 2002). The business travelers are often flexible when it comes to the price, but they are not flexible on the dates. However, the leisure travelers are not flexible on the price but they are flexible when it comes to the dates (Doganis, 2002). Therefore, despite the distance there is a need or the airlines to try constantly and ensure that they strike a balance between these two types of people for them to make a profit.
There are some areas that have high demand than others. For example, trips to New York often have a higher demand as compared to trips to place such as Chicago. Therefore, despite the origination of the flight, there is a need for the airlines to understand the differences that exist between the demands and make sure that they capitalize on them. There are times when the demand curve is followed and the airline decrease the airfare, however, there are several instances that they increase the fare based on the load capacity.
Airlines also understand that when it comes to long distances, there a certain number of people who will book in advance to try and find a decent price. They understand that they need to hold a certain number of seats ready for the business travelers that book last minute and consequently pay more. Therefore, it can be seen that ticket prices jump up and down, and this is based on the demand for the seats and the distance.
There are also the major issues of taxes and fees. Sometimes the factor is not the distance but rather the airports that one will fly to connect to the destination (Doganis, 2002). The distance might be short, but it might involve increased fees and taxes as compared to a long distance flight. Therefore, the discrepancy in airfares can sometimes be caused by the fees and taxes rather than the distance.
Peoples, J. (2012). Pricing behavior and non-price characteristics in the airline industry.
Bingley, U.K: Emerald.
Doganis, R. (2002). Flying off course: The economics of international airlines. London:
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