Business Continuity and Disaster Management for Aviation - Case Study Example

Business Continuity and Disaster Management for Aviation INTRODUCTION Business Continuity Management Systems (BCMS) refers to the response-driven system that employs fundamental principles of continuity in business operations. Due to the simplicity of the BCMS model developed for Heathrow Airport, it is very compatible to the coverage and the scope of much general types of business continuity models, including disaster management programs (DMP) and Continuity of Operations Planning (COOP) among others. In the light of the development of the BCMS of the airport and the disaster management model, an incident/disaster refers to any event that affects or presents the potential to disrupt the normality of airport operations (ACI world secretariat, 2012). A significant event or crisis refers to such events, where there is a pressing need for an immediate and novice response, with the aim of lessening the adverse effects taking place in the reputation, profitability and the operations of the airport. This paper will examine the particular problems that affected Heathrow airport frequently and the effects felt by the airport, British airways and the UK aviation industry as a whole. Additionally, the paper will examine the steps that could be taken to minimize the effects of adverse weather and the outcomes that the new strategy would yield, for the wide array of industry stakeholders. CONTEXT DEVELOPMENT ABOUT THE ADVERSE EVENTS THAT AFFECT/ HAVE AFFECTED AIRPORTS AROUND THE WORLD Airports are highly intricate systems and are very essential to the effective transit of people and goods across the globe. In addition, airports are significant employment hubs, which allow them to work as economic drivers for surrounding regions; support businesses by facilitating the transit of goods and people, foster trade and support tourism. Despite the fact that airports have remained a critical link to the stability of natural infrastructural models, they have also been identified as highly vulnerable to a variety of external and internal disturbances. All of the internal and the external disturbances affecting the performance of airports impact or even limit the normality of airport operations. One of the recent events that gave evidence about the adverse effects of airport disturbances was the failure of the systems and the performance of London Heathrow’s Terminal 5, after it was launched. The newly opened airport building suffered from significant failures in the performance of operational and passenger-specific functions (Brady & Davies, 2010). The failures led to the cancelation of more than 34 flights in a day, after the start of the launch of operations and the cancelation of flights left many passengers stranded. The aviation networks of major airports have suffered from the disruption of unanticipated weather changes. One of such events was the eruption of the Eyjafjallajokull volcano of Iceland on the 14th of April 2009; the effects of the event showcased the vulnerability of the global networks of aviation to the uncontrollable changes in weather patterns and natural hazards. The massive amount of volcanic ash released into the atmosphere led to the closure of European airspace for five days; the closure affected more than 1.2 million passengers on a daily basis (Folattau and Schofield, 2010). The five-day closure of the industry had a major cost; it was estimated that the closure led to the cancelation of 100,000 flights globally and the loss of about USD 1.7 billion on airlines around the world (Wall, 2010). The industry did not foresee the closure of such magnitude. One of the airlines that were affected by the closure in an extreme way was British Airways, which had to ground its entire fleet (Booth & Carrell, 2010). Another threat that faces airports is the risk of disease and epidemic outbreaks, following the response mechanisms used to deal with the SARS outbreak and the Avian Flu epidemics, during 2003-2005. The response models used and the service gaps identified during the planning and the execution of the response for the two events led to the establishment of a set of business contingency measures, for dealing with public health concerns. Some of the measures developed in response, and in preparation to deal with such events include departure and arrival screening procedures, contingency plan models, and health declaration forms for dealing with suspicious cases in flights (ACI world secretariat, 2012). In a similar or more adverse way, airports face events that threaten their survival. One of these threats threatening the success of airports is the current incidence of terrorist attacks. The effect of this adverse event was demonstrated through the bombing of Glasgow Airport in 2007 (Crichton, 2008) and from the more recent suicide bombing event that took place at the arrivals hall of Domodedovo Airport in January 2011. The losses resulting from these security threats is significant, whether as the loss of confidence in the security of airports or the loss of lives, especially due to the centrality of the threat of terrorism upon national security systems. From the variety of disturbances affecting airports, whether triggered by security threats or the failure of systems – the recovery of normal functions is a crucial consideration, due to the commercial and the operational impacts of such events. Due to the centrality of airports in the interconnectedness of the world in the recent past, they have been recognized as highly dependent on security and regulatory coverage. THE SPECIFIC PROBLEMS THAT AFFECTED THE HEATHROW AIRPORT, BRITISH AIRWAYS AND THE UK AVIATION SYSTEM IN GENERAL Adverse weather (December 2010 Snow falls) Tanger and Clayton (2013) reported that one of the prevalent problems affecting the operations of Heathrow airport is changes in weather conditions. The impact of this problem was highlighted by the December 2010 event, when snow falls led to the accumulation of an ice layer of nine centimetres in less than an hour at the Heathrow airport. The snow fall incident led to the closure of the airport and also the cancelation of more than 4000 flights. The cancelation of flights affected more than a million travellers. The consequences of the delays and the cancelations caused by the snowfalls resulted in negative publicity for the airport, and the impacts of the delays were also felt by the airlines that use the airport, including British airways. Damage caused by the adverse weather on the Heathrow Airport The damage caused to the airport included that, at 0730, all flights by British Airways were cancelled, and the information was communicated across all media outlets, and the news sent a wave of criticisms among customers among other groups. The criticisms levelled against the airport were mainly caused by the confusion surrounding the issue of whether the airport would close or would remain open throughout the time of the adverse weather (Tanger and Clayton, 2013). The confusion about, whether the airport was closed made passengers keep flowing into the airport, and the effects included that the passengers kept inconveniencing the operations of other terminals. Following the persuasion of HAL, the airport and British Airways conceded to the invocation of a scarce capacity protocol (SCP), which was instituted to allow the various airlines, equal access to landings and takeoffs. The institution of the SCP, due to its conservative nature and the difficulty of enforcing it, led to the emergence of a variety of issues, which raised concerns about its usability in the future. The financial losses felt by the airport due to the disruptions were about USD 60 million. Damage caused by the adverse weather on British Airways The airline and its customers were adversely affected by the adverse weather throughout the month of December, but the effects were more intense between 1 and 2nd and also the 18th and 19th of the same month. Apart from the extreme cases, the airline had to deal with weather-related challenges for 20 out of the 31 days of the month. The adverse weather also led to the diversion of 38 long-distance flights for the airline, coming into London. The flights were redirected to other cities in UK and Europe, during the weekend of 18/19th of the month. Many of the customers of the airline were required to fly the services of its competitors. All through the duration of the disruptions, British airways initiated a customer care program; the participants in the program entailed responding to calls, processing refunds, rebooking customers, and in providing information on general issues to its customers. Wilson (2011) reports that the December 2010 snow falls led to a decrease in the customer population of the airline by 10.9 percent during the same month; the immediate financial costs of the events were about £24 million. Damage caused by the adverse weather on the UK aviation system in general The effects of the December 2010 snowfalls on the UK aviation system include that passengers and members of the public communicated their disappointment about the UK aviation system; many felt that their rights had been infringed. The results of the event included that; the people of the UK, as well as other parts of the world, lost their faith in the UK aviation system; that affected its reputation and credibility. The event exposed the extent to which the UK aviation system was unprepared to deal with adverse weather conditions, and also its inability to recover business operations after a significant incidence. For example, the communication systems of airports and airlines service providers showed a major level of incompetency; some information boards showed that flights were scheduled, when they were – in the real sense – already cancelled. IT systems and software failures The second aviation problem that affected Heathrow airport, British Airways and the UK aviation sector is the IT failure of the airports terminal 5 (Krigsman, 2008). The project leading to the launch of the operations at the new terminal were extensive; the terminals operations are manned by 163 It systems, 546 interfaces, 9000 connected devices and more than 2000 computers. The functional systems of the terminals include 131 escalators, 175 lifts, and more than 18 kilometres of conveyor belts for handling baggage. One of the incidences that demonstrated the weaknesses of the IT systems included the transmission of wrong information by computer software; the computer showed that the plane undergoing baggage loading had taken off. The incident led to the return of baggage to the handling area, which led to extensive delays and confusion throughout the facility. The damage caused by the event to Heathrow airport The effects of the event included that the airport frustrated more than 36 thousand passengers during the first day, the baggage handling system failed and security searches were problematic. Further, the airport experienced car parking problems, and it incurred the costs of transporting baggage to other areas for sorting (House of Commons Transport Committee, 2008). More than 68 flights were cancelled, some baggage was lost and many flights were delayed while waiting for baggage loading. Other effects included that incoming planes had to suffer from delays before their baggage would be picked up, and in some cases, the airport only accepted passengers with only hand-held baggage. The damage caused by the event to British Airways The staffs of the airline and the airport suffered from car parking problems and delays. The staff search and control check area affected staffs going through the ramp area of the terminal. There were failures in the X-ray machine operations, which required staffs and other people entering some areas to be searched by security officials, which slowed the operations of the facility. Many lifts and escalators were not operating, and there were problems with the use of airbridges, which was mainly caused by the lack of staff familiarity with the systems. There was baggage handling problems, particularly in relation to the fact that the system did not move the loading devices to the aircrafts for loading (Brady and Davies, 2010). The failure led to the loss of 23000 bags and also the cancelation of 500 flights. The financial loss accrued by British Airways was as high as £16 million (Computer weekly, 2008). The damage caused by the event to UK aviation system The event affected the UK aviation system negatively; its effects and criticism came from many groups. The event attracted the criticism of the foreign secretary, Mr. Milband, after it became apparent that the crisis would cost British Airways more than £50 million (Krigsman, 2008). Criticism also came from the entire European block, after it felt the negative effects of the failures and also the loss of baggage. The event led to the questioning of the minister for transport by the House of Commons, admonishing that the government should have done more to correct the situation. The event led to the loss of the pride of UK’s aviation and also bruised that of the UK as a whole. THE STRATEGY TO MINIMIZE THE EFFECTS OF BAD WEATHER AND ITS OUTCOMES FOR STAKEHOLDERS A strategy to minimize the effects of bad weather will include six steps. First step: Risk and Vulnerability evaluation The first stage in the BCM will be that of assessing the weather threats facing Heathrow airport among other airports (Halliwell, 2008). For example, in evaluating the risks of snow, this step would entail checking all recorded information about the risk of snow fall, fog and other weather-related risks. The team will also draft a risk and vulnerability model, which will show the risk that present the highest risks to airport operations. The outcomes of this stage to the stakeholders include that airports and the aviation sector will get information about the risks it faces. Second Stage: Identification of critical business practices After the diagnosis of the risks, the team will administer a Business Impact Assessment (BIA) to identify the critical business practices of Heathrow airport, among others, and also the maximum outage time for the various functions (Skelton, 2007). These will include flight take-off and landing. The outcomes of this step for the stakeholders in the aviation industry will include that they will determine their ability to resume operations after a disaster. Third Stage: Response, operation Continuity and Recovery approach After identifying the critical business functions and the maximum outage time, The BCM team will develop the response teams to counter the halt of functionality, sustain sufficient functionality and foster a return to complete functionality (Lagadec, 1997). One of the strategies proposed to reduce the risk of snowfalls will be that of developing runway electrical heating systems, which will keep eliminating any snow build-up. Fourth stage: Documentation This phase of the process will entail the exploration for and the documentation of viable operations continuity plans, incorporating emergency responses, continuity plans and recovery approaches. The documentation should give information about bets way of implementing the business continuity, in the best interests of the airport (Elliott, Swartz & Herbane, 2002, p. 162). Fifth Step: Testing and Training The testing and training process will entail the evaluation of whether the models developed lead to business recovery, like they are supposed to. The training aspect will cover the education of staffs in their particular roles and increase their knowledge about the BCM throughout the organization (Salas et al., 2001). Sixth step: Model maintenance This stage will entail the activities aimed at ensuring that the plans for continuity are reviewed and updated to include emerging risks and newer plans (Standards Australia, 2006). However, it is important to guarantee the capacity of trigger points, including shifts in processes or technology. CONCLUSION The case of Heathrow airport demonstrated the vulnerability of airports to weather and other incidents. The problems that have been known to affect airports in the past include weather changes, the risk of disease and pandemics and terrorist attacks. The events that affected Heathrow airport include adverse weather and the failure of IT systems and software. The strategy for minimizing the risks of adverse weather will entail six stages, including risk vulnerability evaluation; identification of critical business areas and maintenance of the BCM, among others. References ACI world secretariat. (2012). ACI World Facilitation and Services Standing Committee Best Practice Paper: Business Continuity Management Framework and Case Studies for Health-Related Disruptions at Airports. Airports Council International, 1.0, 3-20. Booth, R., and Carrell, S. (2010). Breaking News: Volcano Eruption in Iceland Wreaks Havoc Across Europe. VRforums. Retrieved from: http://forums.vr-zone.com/chit-chatting/625311-volcano-eruption-iceland-wreaks-havoc- across-europe.html Brady, T. and Davies, A. (2010). From hero to hubris – Reconsidering the Project management of Heathrow’s Terminal 5. International Journal of Project Management, 28, 151–157. 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New York: Booz & Company Inc. Wilson, A. (2011). Heathrow operator BAA says December snow cost £24m. The Telegraph. Retrieved from: http://www.telegraph.co.uk/finance/newsbysector/transport/8254246/Heathrow-operator- BAA-says-December-snow-cost-24m.html Read More