Airline Operations Management, Essay Example

Introduction

Qantas is one of the oldest airlines in the world. The Corporation was founded in 1920 and has grown steadily over the years to become the largest and most successful provider of flight services in Australia. For many years, Qantas has maintained a dominant leadership position in the domestic market. The airline also offers international flights and is recognized as a leading long distance carrier in the world (Qantas, 2017). The carrier is upgrading its fleet of aircraft to include the B787-9-9 planes. This paper explores operational issues that will arise from such a fleet change.

Operational issues that will arise following the introduction B787-9 Aircraft

Capacity, City Pairs, and Seat Plans

With the introduction of the 787-9 fleet, Qantas has opportunities to redesign its oceanic flights to cover more city pairs strategically. Under the current fleet of 747 planes, the efficiency of oceanic flights is low due to the limited number of city pairs that can be covered. Unlike the 77, the 747 planes have low endurance for long flights, which makes it difficult for operators to expand city pairs. But the 787-9’s enhanced flight capabilities and a host of other improvements provide greater opportunities for better planning of city pairs. Transatlantic flights between Europe and the United States constitute one of the busiest and most profitable air spaces in the world. The most profitable city pairs that Qantas can cover with its long-haul 787-9 fleet include New York-London, Hong Kong- New York, London-Dublin, Melbourne-Frankfurt, Paris-Shanghai, Shanghai-New York, Melbourne-Shanghai and Dubai-New York.  

The new planes have spacious cabin spaces which allow for arrangement of seats in such a manner as to increase returns from each flight. The spacious interior allows for up to 240 sets in duo-class domestic configuration with 117 cm pitch in first class and 86 cm pitch in the economy class. But to maximize seat arrangement, up to 296 passengers can seat in high-density 3-2-3 arrangement with a smaller business class arrangement. In a larger pitch first class arrangement, up to 234 passengers may be seated comfortably. The various seat arrangements are possible because the cabin interior of the B787-9 is more than 18 feet long at armrest (Norris & Wagner, 2009, 22). This was a significant increase from the 747 version and what was originally planned for the plane. By comparison, the 787-9 interior cabin space is 15 inches greater than that of the A330 (Airbus) but slightly narrower than A350. The main issue to be considered is that the 787 premium seat arrangement and lack of economy seating arrangement can bring great losses to the airline. Compared to the 747, the 787-9 has greater fuel efficiency and is less harmful to the environment. However, the actual fuel consumption depends on many variables, the main one being seating arrangement. A dense seating arrangement means a heavier aircraft and hence more fuel consumption. The implication here is that marketing for the premium seating should be expanded to ensure high returns from each flight.

Maintenance Crew Training

Retraining of maintenance crew is an important operational issue that will have to be addressed following the acquisition of B787-9. This is because the training will be an additional expense, which will be an additional cost to the company. The plane has a large number of features not found on the current fleet of B747 planes. As a matter of fact, the B787-9 comes with several new digital technologies which necessitate the need for crew training so as to maximize value to customers. The Dreamliner features an all-digital internet based teaching system that is ideal for flight maintenance and supervision. The plane also has various training tools that link real-time to virile plane systems. The most important of these systems is the personal desktop computers which require interactive computer based training.

The overriding objective of new training for the crew is to replicate the new planes and bring real-time performance-based information to mechanics and pilots. This requires the use of real-time flight simulators in all maintenance training environments which necessitates practice. The crew training needs of the 787-9 reflect many of the technological advances that are being utilized in modern aircraft. The approach of new training puts trainees (both maintenance training and in-flight) as close to the actual aircraft as possible. An effectiveness of the training program means shorter and more efficient training. For example, a 747 can complete training on flight differences in 787-9 in less than ten days in the presence of full-flight simulator. Options for continuous training have the potential to reduce the amount of time required for 7447 pilots to upgrade their skills and be conversant with the 787-9 planes.

Although extensive crew training is required to start operating the B787-9 fleet, the planes come with helpful features making it easier to offer excellent training. The new simulation system for the 787-9 use latest technologies to make training more efficient and of great value to the crew. These include three-dimensional images, as well as a host of other modern flight training simulators and features designed to optimize digital delivery of training. The training tools are combined with currency-based flight commonality courses. To make the training more relevant and supportive of the airliner’s strategic objectives, Qantas will be required to make strategic decisions about the building of electronic performance systems as opposed to the traditional training program.

Any training program introduced by Qantas should be an integrated electronic environment that is easily accessible and available to each member of the crew. Also, the training program should be designed to provide individualized and immediate access to a wide range of information from systems information to flight and maintenance technical and flight trouble shooting (Norris & Wagner, 2009, 51). The most important consideration is for the training to focus more on the guiding principles behind the operations of B787-9 aircraft and how performance can be optimized for increased passenger safety and comfort. Moreover, the training should be subject to approval by appropriate regulatory agencies before they can be used to train the company’s mechanics and airline pilots. The training can be offered in-house or through third-party companies.

Long-Haul Routes

The B787-9 is a state-of-the-art plane that will alter the future of flying. The aircraft is designed to optimal performance during long flights, meaning that Qantas has opportunities to consider additional routes. The plane has powerful engines which produce enough power as needed during flights including that used by customers to charge phones. The powerful engines allow the plane to fly at Mach 0.85, equivalent to 650 miles per hour (Norris & Wagner, 2009, 13). The high speed increases the possibility of the plane covering long flights in considerably less time than the B747 version. Qantas can start new non-stop flights to faraway places such as Europe, the Americas, West Africa and Asia.

In comparison with the B747, the B787-9 has greater fuel efficiency and thus the possibility of enduring long haul flights covering several hours. Because of the plane’s revolutionary engines and composite structure, flights are more fuel efficient and less carbon IV oxide is emitted into the atmosphere (about 20% less than the amount of CO₂ emitted by the B747). One of the reasons why Qantas does not cover many long haul flights currently is because of the limited capabilities of the B747. The B787-9 eliminates this problem because it can practically fly for 8000 miles without stopping during flights. Essentially, the B787-9 can fly to distant places where the B747 cannot reach.

As to allow for long haul flights, the 787-9 planes are equipped with sophisticated flight control systems. The planes use a version of Ethernet called AFDX, which allows for the real-time and trouble-free transmission of data between the aircraft systems and the flight deck. The entire flight deck features high-quality LCD multi-function displays which use industry standard widget toolkits. Unlike the previous Boeing planes, the 787-9 uses a yoke instead of side sticks. As such, the flight control system is superior and more efficient than that in the 747 planes. These important features will help in giving the 787-9 fleet greater competitive advantages than the 747 planes.

The B787-9’s expanded flight capabilities, superior economic performance, and unmatched fuel efficiency allow Qantas to replace the less efficient B747 aircraft from its fleet and target more long-haul markets (Boeing, 2017). Because the B787-9 is constructed from carbon-fiber composite materials which are light, the plane’s aerodynamic systems are optimized to maximize speed and minimize drag during flights. This feature, together with the attribute of reduced weight also makes the plane to fly longer and for less time than the B747.

The implication of long-haul flights is the possibility of increased market share and improved economic performance for Qantas. The ever increasing competition in the aviation industry requires airliners to be innovative regarding the target markets they cover. If Qantas gets approval to cover more long haul flights using the 787-9 Dreamliner, its returns will increase considerably. In a way, the Dreamliner enhances the capability of Qantas to compete with other leading airlines in long haul flights especially the trans-continental ones. So by all standards, Qantas has more opportunities to grow into a stronger player in the global aviation industry.

Customer Comfort

Customer performance is the most critical strategic issue to consider when making decisions about aircraft operations (Shaw, 2011, 68). Qantas’s acquisition of B787-9 fleet means that the operational issue of customer comfort will be impacted significantly due to the fleet’s enhanced features. Compared to the B747 fleet, the new B787-9 fleet’s revolutionary cabin environment is optimized to help customers feel better during each inch of the journey, especially in long-distance flights. The plane is designed to withstand lower cabin altitude which reduces the effects of intense pressurization on customers (Qantas, 2016). The plane can function well at altitudes of just 6000 feet, unlike the B747 whose altitude is more than 8000 feet. Another important aspect of customer comfort associated with the B787-9 is increased luggage storage. The fleet’s overhead storage bins are the most spacious and voluminous in the industry. This allows enough space for all passengers to fit standard size bags in the bins. In contrast, the B747 has limited luggage space meaning that not all customers can fit luggage bags in the cabin-bins.

The B787-9 fleet comes with innovative architectural design elements such as more natural light, large windows, and sweeping arches. It can be noted that B787-9’s windows are larger than those of even the Airbus, giving passengers a larger view of the horizon from any seat. Instead of the traditional pull-down window shades, the B787-9 uses electro-chromatic shades, which allows customers to dim the windows but still get a good view of the outside terrain. Also, the new fleet has a simulated cabin sky. The entire cabin is illuminated with specially designed ambient LED which creates a feeling of the sky overhead (Boeing, 2017). Depending on the location during flight and the outside environment, the cabin crew can control the color and brightness of the cabin sky. This means passengers can get a simulated sense of day sky during the daytime and night sky at night. All these create a feeling of spaciousness, which makes flights more relaxing and comfortable to customers.

Unlike the B747 fleet, the B787-9 has sophisticated air purification systems which ensure cleaner and less dry cabin air. This allows for more fresh air and high cabin humidity which helps in combating the effects of dry air on both passengers and the crew. Additional features that enhance customer focus include an innovative sound and in-flight entertainment system (Evans & Lindsay, 2012, 98). The system lowers noise both outside and inside the cabin, which helps in reducing passenger fatigue during long haul flights. Besides, reduced engine noise equates to quite take-offs and landings which minimize the impact on communities living around airports.

Purchase Cost and Maintenance

The greatest setback to Qantas’ change of fleet is the high cost of purchasing and maintaining the B787-9 planes. The advanced plane has a factory price of about $200 million and requires substantial amounts to maintain the fleet and keep it running (Boeing, 2017). Compared to the current fleet of B747, the B787-9 is a very expensive plane and operating it will push Qantas’ financial fortunes to the lower end. One of the reasons for the plane’s high cost is the advanced features. The plane is designed to be the future of aviation technologies with the primary objective of enhancing passenger experience and ensuring high returns for airline operators. Important features such as the capacity for reduced environmental impact, advanced electronic system, and spacious cabin design all add to the plane’s high cost.

For Qantas to operate the 878-9 fleet more successfully and profitably, the company should have a sophisticated maintenance program in place. Luckily, Qantas has a reputation for operational excellence regarding aircraft engineering and mechanical systems maintenance.  The company employs close to 6000 staff at its maintenance centers in Adelaide, Brisbane, Los Angeles and Melbourne (Qantas, 2017). Being one of the largest industrial organizations in Australia, Qantas’s engineering department provides a wide range of mechanical, engineering, maintenance and support services for aircraft engines and components. The current capacity can easily be integrated into the demands of the new fleet. Most importantly, the airliner should upgrade its capacity to ensure delivery of best practice performance and maintain its reputable position as the market leader.

There are no indications that the cost of acquiring and maintaining the Dreamliner fleet will drop shortly. If anything, the cost may climb because of the ongoing economic recession in many countries, which pushes prices high (Gareth, 2013). As such, Qantas should be prepared to deal with a tougher business environment following the acquisition of the B787-9 planes. The cost will be particularly higher for the 787-9-9 variance whose production expense is greater than that of the longer-established 787-9-8 variant. The implication is that there is more work to be done to reap the expected benefits of upgrading fleet from 747 to 787-9. The most important consideration should be increased focus on risk reduction as a strategy for improving long-term productivity and cash flow.

If Qantas wants to achieve its expected profitability objectives with the 878-9 fleet, it will have to expand the learning curve compared to the operation of the 747 fleet (Shaw, 2011, 19). Since the new planes require a lot of money to maintain, the Australian operator should be able to reduce cash costs by at least 25% compounded annual growth rates than the 747. This way, the cumulative avenge cost of the 878 fleet will be significantly lower than that of the 747. The latter planes are comparatively less efficient but more cost effective to maintain.  It is important for the management of Qantas to set a shorter time frame for achieving breakeven. If it takes too long to break even with the 787-9 planes, the cumulative costs (for maintenance) will be discouragingly higher.

Conclusion

The decision by Qantas to introduce 787-9-9 planes into its fleet is an important strategic decision that will lead to the airliner’s growth and enhance its ability to deal with competitive forces in the industry. The new planes are optimized for improved performance and can withstand long flights. Also, the 787-9 planes cause minimum impact on the environment compared to the current fleet of 474 planes. A key operational issue that Qantas should address as it introduces the new planes is the potential to start more long haul flights involving several city pairs. This factor has the potential to increase Qantas’s revenue, notwithstanding the high cost of acquiring and maintaining the new planes.

Reference List

Boeing (2017). Boeing 787. Retrieved from http://www.boeing.com/commercial/787/

Evans, J. & Lindsay, W. (2012). Managing for Quality and Performance Excellence, 9^th ed. New York: South-Western College Pub.

Gareth, E. (2013). Qantas Airways Limited Fleet, Efficiency, and Engineering. Retrieved from http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/presentations/fleet-efficiency-engineering.pdf

Norris, G. & Wagner, M. (2009). Boeing 787 Dreamliner. Minneapolis: Zenith Press.

Qantas (2016). Qantas Annual Review 2015. Retrieved from http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/file/annual-reports/qantas_annual_review_2015.pdf

Qantas (2017). About us. Retrieved from https://www.qantas.com

Shaw, S. (2011). Airline Operations Management and Marketing. London: Routledge.

Zou, L., Oum, T. & Yu, C. (2011). Assessing the price effects of airline alliances on complementary routes. Transportation Research, 47, 320–332.