International Civil Aviation - Assignment Example

Strategic Review - International Civil Aviation Introduction The sector considered for strategic review in the current review report is the "International Civil Aviation Industry" which is one of the fastest growing sectors in the world. This growth is more significant in the past two decades with the world transforming itself into a globalized economy. Apart from the immense increase in demand for air transport services, the operating environment of the civil aviation industry has also turned more sophisticated with the emergence of the new technologies, changing strategic policies and procedures. The paper aims at examining the existing short- and long-term environmental factors affecting the international civil aviation industry, reviewing the effectiveness of existing air business strategies, policies and plans, and developing the options for strategic planning based on the review findings. (Civil Aviation Training Centre, 2003) Overview The review report is intended to build a future in which aviation exists in harmony with the natural and human environment. To make this possible the detrimental factors and strategic measures affecting the aviation industry are thoroughly analyzed for getting a better insight into the knowledge and understanding of existing and future environmental impacts, as well as the opportunities for mitigating or avoiding them.(Transportation Research Circular, 2006) Such analysis serves as an important tool in anticipating facilities and services which are required to meet the future demands of air travel and in ascertaining where and when airspace or airport congestion is likely to occur. These reviews also have a significant role in strategic planning towards the cost-effective implementation of communications, navigation and surveillance or air traffic management systems.(Trends in air transport, 2004) This review report summarizes progress that the international civil aviation industry is making towards the future. Thus the study involves - Defining the critical issues in the media or process area; - Observing the current arena of practice, research, and policy; - Suggesting a vision of future capabilities that would address the critical issues; (Transportation Research Circular, 2006) Environmental factors affecting the aviation industry There are many environmental elements, both short term and long term in nature affecting the International Civil Aviation. In today's world, where aviation traffic has grown to an indispensable mode of transport, the environment has become too much stressed from a variety of sources. Population explosion has yet made the whole system more complex and difficult to manage efficiently and equitably. This paper which reviews the said sector from a strategic angle compiles from the result of researches and statistics conducted on ways to assess and provide solutions to these conditions. Use of tools like SWOT analysis, which brings to light the Strengths, Weaknesses, Opportunities and Threats of aviation industry, could be very useful in bringing out the detrimental environmental factors. The research agenda categorized the factors as in the figure (Refer Appendix - 1). (Transportation Research Circular, 2006) The main environmental constituents identified affecting the sector mainly from the Media (aircraft) and its Process (operations) are: Noise: Aircraft noise is one of the most constraining factors affecting the sector. However, there were significant developments in providing quieter aircrafts and organizations like National Aeronautics and Space Administration (NASA) and the European Community are continuously going ahead with such projects limiting noise pollution to the maximum. (Transportation Research Circular, 2006) Air quality: This deal with all the environmental impacts including emissions from aircrafts like greenhouse gas emissions, ozone acidification, depletion, and impact on local air quality. Carbon dioxide, Nitrogen oxide, etc., particulates and aerosols, sulfur compounds, and water emissions take place at cruise (altitudes above 900 m). At the ground-level (altitude below 900 m) aircraft emissions affecting local air quality are Nitrogen oxide, Carbon monoxide, unburned hydrocarbons (HC), and other volatile organic compounds. Ground-level emissions from aircraft are critical due to its effects on climate. (Aviation and the Global Atmosphere, 1999) Water quality: Potential contaminants like vehicle and aircraft fueling, maintenance, deicing etc., are regulated under the requirements of the Clean Water Act's for more than a decade, due to its adverse effect on the environment. The inevitable agents used for deicing and anti-icing which ensures safe operations against frost formation too exert environmental impacts. Moreover, many airports, due to historical reasons are situated on or adjacent to water bodies ("e.g., Los Angeles International Airport; San Francisco International Airport; Logan International Airport, Boston, Massachusetts; Ronald Reagan National Airport, Washington D C.,; and John F. Kennedy International Airport, New York"). These areas are usually filled with marshes and other wetlands, which provide natural habitat for a large number of birds which often cause severe damage to aircrafts or result in aircraft crashes. (Transportation Research Circular, 2006: 22) Environmental process: Tackling environmental issues from the aviation sector often results in a complex and inefficient process, both in terms of environmental development proposals and in terms of ensuring that airport operations meet regulatory standards and requirements. Enforcement of regulatory standards in a command-and-control way might also fail to benefit the environment in accordance with the financial costs. (Transportation Research Circular, 2006: 26) Tools: The biggest challenge is to understand the inter-dependent nature of aircraft noise, aviation emissions, and among various emissions to strive and optimize mitigation strategies for minimizing environmental impacts as a whole. Continuously increasing the computing power in this regard could do a significant role in achieving that understanding. (Transportation Research Circular, 2006: 30) Technology: Any improvement with the prevailing environmental impacts from the aviation industry could be made possible through the deployment of technologies. However, the pace and scope of deploying such new and sophisticated technologies within the aviation industry is growing increasingly complex with the dynamic future and depends on numerous unpredictable factors. (Transportation Research Circular, 2006: 34) Stake holder's expectations Responsive strategies should be worked out to meet the stake holder's expectations that allow aviation to grow smoothly in an environmentally responsible manner. The stake holders look forward to an experience on board where there is minimum pollution and low emissions, minimum noise, extended and personalized services, low fares of travel etc., saving the environment they live in. They need reliable and clear information regarding the proposed environmental actions, policies and decisions for reducing the overall pollution caused from the aviation sector. Stakeholder expectations are increasing day by day with safety and security high in the agenda. (Risk reality within the aviation industry, 2006) Environmental factors likely to affect the future aviation strategies The International Civil Aviation Organization, a UN Specialized Agency, with 187 member nations serves as the global forum for regulating the international civil aviation sector. The entity itself imposes strategic objectives connected with the environment compulsory to be followed by the member countries. The organization has laid down certain strategies covering most of the detrimental environmental factors for the period 2005-2010 which include: (i) : "Safety - Enhance global civil aviation safety (ii) : Security - Enhance global civil aviation security (iii): Environmental Protection - Minimize the adverse effect of global civil aviation on the environment (iv): Efficiency - Enhance the efficiency of aviation operations (v) : Continuity - Maintain the continuity of aviation operations (vi): Rule of Law - Strengthen law governing international civil aviation" (Strategic objectives, 2005-2010) Analysis of current business plans The pricing strategies, experience curves etc., are the tools used here to measure and analyze the current business strategies in the international aviation industry. International civil aviation sector has seen rapid expansion in the past 50 years in relation to the growth of the world economy. It resulted in a steady decline in costs and fares, which fostered an immense traffic growth. The output of the aviation industry thus "(measured in terms of tonne-km performed) that has increased by a factor of 23 since 1960; total GDP, which is the broadest available measure of world output, increased by a factor of 3.8 over the same period" (ICAO, 1997a). Although growth curve in international civil aviation has been much greater compared to world economic growth, economic theory and analytical studies depicts that there is a high level of interdependence or correlation between the two. Almost all forecasts in this regard shows that the aviation demand is based primarily by global economic development. Statistical analyses describes that GDP growth is about two-thirds of air travel growth, which in turn reflects the increased commercial and business activity and growing personal income and propensity for air travel. The figure below shows the relationship between the economy and the demand for air travel. This figure gives evidence of the relationship between the economy and air traffic demand by illustrating fluctuations in the rate of growth from 1960 to 1995 and the trend follows till date. (Aviation and the Global Atmosphere, 1999) Current position of International Civil Aviation industry The current modern era of civil aviation took its pace in the 1960s, with the adoption of new technology jet aircraft which increased the speed, security and luxury of air travel, simultaneously reducing the operating costs. The continuing trend of fall in air fares began in this period. Air fares have declined approximately by almost 2% per year since 1960. The deregulation of airline services in the United States in 1978, trends towards liberalization of airline services in Europe etc, have allowed the international civil aviation to improve its services by expanding their route systems and reduce average costs by efficiently scheduling the aircraft use. The growth rate in global passenger demand over the past 35 years from 1960 to 1995 is shown in the figure below. Air freight also drastically increased during this period. This period also witnessed the global traffic by a factor of 4.6 (revenue passenger kilometers) (Aviation and the Global Atmosphere, 1999) United Nations' International Civil Aviation Organisation has forecasted that the global passenger traffic will continue its growth by 7.6%, 6.5% and 6.2% in 2005, 2006 and 2007 respectively. This growth rate as per the forecast was achieved in 2005 after the decline caused due to the 11 September 2001 terrorist attacks and the Sever Acute Respiratory Syndrome (SARS) outbreak. As per the reports by the Associated Press, the civil aviation industry started its recovery after these incidents from the latter half of 2003 followed by a 14% increase in 2004. (Airline industry information, 2005) Current Aviation Strategy - Pros and Cons Currently, the strategies of the international civil aviation industry compliment a balanced approach. It suits and recognizes the significance of aviation to national and international economies, and strives to minimize the natural impacts of airports near water bodies. The strategies are also adopted to reduce the operating costs and thereby provide air travel at reduced fares ensuring foolproof safety measures. It abides by the governmental regulations and air boundaries and is working on futuristic ideas of Surface Access too. (Delivering sustainable growth, 2003) However, the passenger requirements are increasing day by day and keeping them satisfied with optimum service is still a long journey to go in reality. The industry still suffers from the issue related to the environmental factors which even could disturb the natural equilibrium. Proving highly sophisticated technology enabled systems on board is the demand of the day, that too with competitive fares and increased safety. Airliners around the globe are striving to achieve this goal by revising, experiencing and modifying their strategies for maintaining the growth curve. Sustaining and improving the air transport - Strategic requirements Strategic policies should be developed with a futuristic outlook which ensures aviation providers to meets its external costs, inclusive of its environmental and health costs. The aviation industry also has a responsibility to lower its impacts as per the 'polluter pays' principle. The critical impact in monetary terms is aviation industry's contribution towards climate change for which a solution to that end is set out in the Air Transport White Paper for the betterment of the sector. (Delivering sustainable growth, 2003) International bodies like the International Civil Aviation Organization (ICAO) have to address the current issues seriously, with creative solutions to the increased challenge of global warming. It should continue in developing the ensuring the airlines to abide by their principles and protocols of international air navigation and coordinate the strategic planning and continued development of international civil aviation ensuring safe and orderly growth. ICAO duly accelerates air accident investigation followed by transport safety authorities in the member countries of the Convention on International Civil Aviation, otherwise termed as the Chicago Convention. (ICAO, 2006) Conclusion The paper reviews the strategic policies and procedures of the International Civil Aviation Industry in pursuit of identifying the intended strategies required for the improving better future growth. The findings are based on the critical and analytical studies carried out by examining the different factors detrimental to the working of any industry. The paper takes the environmental factors, the human factors including the stake holder's interests, the decisions, policies, procedures, regulatory frameworks etc., to arrive at the findings. Recommendations This strategic review highlights certain critical areas for which the recommendations have been made to further the international civil aviation to greater heights with improved efficiency, securing and safeguarding the passengers on board as well as the overall environment. Airliners should work to ensure that they cover its external costs, including its environmental and health costs. The aviation industry has a responsibility to reduce its impacts under the 'polluter pays' principle. The biggest impact of global warming and climate change should be tackled creatively and avoid environmental disasters. Well-designed financial measures like environmental charges, taxes, trading schemes etc., are an important mechanism for delivering the Government's environmental objectives, for aviation industry. Measures are to be taken to include noise and emissions-related landing charges, 'en route' charges to tackle certain specific pollutants, and emissions trading. Aviation sector should develop strategic plans to pave way for rapid development regarding greenhouse gas emissions at an international level. Involvement of high-end technology backed comforts to be given to passengers on board and provide optimum air travel experience as people are the best way to promote and foster the growth of international civil aviation sector. In short, safety and security, liberalization of the industry, growth in air traffic and cargo traffic and the environment require unanimous levels of cooperation to reinforce the efficiency of the international civil aviation system for the benefit of mankind. There should be sincere efforts to prevent terrorists from entering the air transport system. Security must never be overlooked to economic or political considerations. Moreover global cooperation is the best possible way to incorporate all the suggestions enabling an integral civil aviation system. Thus adopting these recommendations to overcome the current shortcomings the International Civil Aviation industry can race forward conquering greater heights making air navigation the fastest, safest and most efficient mode of transportation ever created. References 1. Airline industry information, 2005, M2 Communications (C)1997-2005 LTD, 29 July 2005. Available at: http://www.findarticles.com/p/articles/mi_m0CWU/is_2005_July_29/ai_n14838091 [Accessed 10 June, 2006] 2. Aviation and the Global Atmosphere, 1999, Impacts of Aircraft Emissions on Atmospheric Ozone, Intergovernmental panel on climate change. Available at: http://www.grida.no/climate/ipcc/aviation/153.htm#10421 [Accessed 09 June, 2006] 3. Civil Aviation Training Centre, 2003, Establishment of The Hong Kong Civil Aviation Training Center, Thailand, 15 - 21 July 2003. Available at: http://www.icao.int/icao/en/ro/apac/cnsmetsg7-cnsatmicsg10-2003/ip22.pdf, [Accessed 08 June, 2006] 4. Delivering sustainable growth, 2003, Aviation and shipping: delivering sustainable growth CM 6234. Available at: http://www.dft.gov.uk/stellent/groups/dft_about/documents/page/dft_about_031276.hcsp [Accessed 10 June, 2006] 5. ICAO, 2006, International Civil Aviation Organization, Wikipedia - The free encyclopaedia, 7 June 2006. Available at: http://en.wikipedia.org/wiki/International_Civil_Aviation_Organization [Accessed 09 June, 2006] 6. Risk reality within the aviation industry, 2006, Addressing the new risk reality within the aviation industry. Available at: http://www.dnv.com/consulting/transportation/aviation/index.asp [Accessed 09 June, 2006] 7. Strategic Objectives, 2005-2010, International Civil Aviation Organization. Available at: http://www.icao.int/cgi/goto_m.plicao/en/strategic_objectives.htm [Accessed 10 June, 2006] 8. Transportation Research Circular, January 2006, Critical issues in the aviation and the environment 2005, Transportation Research Board - Environmental Impacts of Aviation Committee. Available at: http://onlinepubs.trb.org/onlinepubs/circulars/ec089.pdf [Accessed 07 June, 2006) 9. Trends in air transport, 2004, Fourteenth Meeting of the APANPIRG ATM/AIS/SAR Sub-Group, ICAO 28 June - 2 July 2004. Available at: http://www.icao.int/icao/en/ro/apac/2004/atm-ais-sar-sg14/ip06.pdf [Accessed 10 June 2006] Appendix -1 Read More