INTRODUCTION-History-In April 1940, Air New-Zealand found whilstit’s the forerunner airline, belowthe Tasman sea agreement and after thatTasman Empire airlines confined (TEAL) become included. In October 1953 NewZealand and Australian Governments each mutually takeovers TEAL, and in April1961 New Zealand authorities surpasses the whole possession solely. On theother side New Zealand government established national airlines corporation in1947 for domestic airway transportation and then after merging both domesticand worldwide airways transportation gave birth to Air New Zealand.
The companyserves more than 15 million of passenger in a 12 month with their globalcommunity together with shipment transportation. “History – About AirNew Zealand | Air New Zealand“History – About Air New Zealand | AirNew Zealand.” OFFICIAL.
nz/history. Air New Zealand is the one of the companywhich is more cautious to their qualities and services,either related to customer,employees or environment. Some of their quality relates policies and theirprocedure for implementing those strategies are as discussed below: -1-Safeguarding EnvironmentPolices(Carbon Emission): -The one of the majortarget of air New Zealand is to become the emission free in the upcoming yearsandtargetedthat they will reduce 50% of carbon emission till 2050. The average airline carbon reduction measures identifiedby IATA are 5% for all the airplanes but on other hand, the savings identifiedfor Air New Zealand were much lower by 1.46% (approximately 37,000tonnes of carbon emissions per annum), which indicates that they are applyingright strategies towards world leading fuel efficiency improvements. Ø Carbon Reduction & ManagementStrategies | Air New Zealand.
(n.d.). Retrieved December 12, 2017, fromhttps://www.airnewzealand.
co.nz/sustainability-carbon-reduction-managementProcedure they adapted–They began focusing on thedevelopment of environmentally sustainable bio- gasoline deliver chains using a various kind of feed-shares -Theystart promoting ground services like usage of electrical transportation system inpreference to carbon-emission car and the use of energy efficient strategies atthe airport and offices.-Recycling the dresses and waste material, Not onlythis but they start using paper coffee cups so that it will be recycled and canbe put into use again.(add on-PDSA/PDCA and PhilCrosby Zero Defects Policy)2-Customerservice: -v Koruservices:- Forthe benefits of the customer, Air New Zealand introduced new policy named byKORU club under which they offer membership to clients and in which the clienthave to pay the certain amount of money annually or 5-yearly (depends on thestatus of membership) after registeringwith this clients can get various benefitslike:–They can access airlines lounges,-Enjoy the services like priority check in and boarding,-Can get additional baggage privileges like complimentary 1 additional luggage.
– can have access to reserved flyer seating facility.(“Koru programme -Spending Airpoints DollarsTM – AirpointsTM | Air NewZealand,” n.d.
)(https://www.airnewzealand.co.nz/koru)v Notification services: -Air New Zealand utilizes its customer notification policyupon delays.
To avoid delays, the airline ensures information is conveyed toits customers within the shortest time possible. The company has an efficientteam that ensures information is available in cases of delay caused byunavoidable weather, cancellations, or diversions, and safety or operationalreasons. The airline ensures that any flight that delayed, cancelled orrescheduled on the travel day is compensated with flight rebook with minimalproblem. On the other side, the industry also ensures that passenger’s luggageis reach their destination on time and in the same condition as received. Thecompany handles luggage delays by returning them to their respective ownerwithin 24 hours of getting missing luggage notification with minimal expensesimposed to the owner.v Airportdollars: -Air New Zealand introduced air points dollars under which they provide the loyaltypoints to their regular travellers, which they can carry forward for four yearsafter the issuing date. The value for One air point dollar is equal to one NewZealand dollar and are redeemable or transferable to any person at any time. Customercan have benefit of these point in having travel insurance or booking ticketsand hiring vehicle or for travellingallowance after landing.
https://www.airnewzealand.co.nz/about-airpoints 3- Innovation: -Air New Zealandopted a new technique to attract the customer and providing the best qualityservices to the customer by introducing a new team member (Sophie) in the formof digital human being as a soul machine which uses its artificial intelligenceto interact with the customer and provide them the accurate answers to theirenquiries about New Zealand as a best tourist destination and promote their ownproduct line and services and harness the customer experiences.TheCEO of Air New Zealand commented in an event that they are not employing Sophieon a permanent basis, it was just an experiment which madean innovation aboutthe experience of being in contact with digital human or soul machines.Benefitsto customer: –Itis the one of the easiest means for communication.
-Customer can get all information from a single model.-Fastest way for communication such as having an enquiry and giving feedbacks. Ø Team, StopPress, and 26 Sep 2017. “Meet Sophie, Air NewZealand’s Digital ‘Human.’” Idealog, September 26, 2017.http://idealog.co.
nz/tech/2017/09/meet-sophie-air-new-zealands-digital-human. 4- SAFETY STANDARDS: -Anothermajor strategy that the airline has implemented is an integrated managementsystem which merged both quality and some features of SMS (safety managementsystem) thus, creating a basis of the airlines’ method to officially managingsafety. Air New Zealand made more improvements in 2003 by introducing theInternational Operational Safety Audit Program (IOSA) which was meant toencourage the implementation of standard approach and procedures for managingsafety. The airline has since 2004 undertaken IOSA audit every two years. AirNew Zealand has over the years formed a committed safety team that comprises ofa team of both Safety Specialists and Quality Specialists and a Safety DataManager Analystref:-https://www.
caa.govt.nz/SMS/sms_case_study_one.pdf 5- RISK MANAGMENT:-Another strategy that the industryemploysis management of risk. The risk of management is acentral management obligationand cannot be delegated.
Entire management team and staff workers are thenresponsible for implementing a risk management procedure inside their areas ofcontrol which will directly help in the fulfilment of main objectives. Aprocess to guarantee risk has been effectively recognized, reflected and ismanageable. Itmust be apparent in each significant decision-makingprocedure.
In 2010, Air New Zealandinstalled a coverage assertion that particularly addressed control danger. Theairline has officially diagnosed that threat control structures are significantand help mangers to cognizance at the futures’ uncertainties and flaws whichenhances the chances of achieving the goals of the business. The airlineensures that right risk control formation is ready for all non- regularscheduled flights, aircraft delivery and flight checks. Air New Zealand isdedicated to very well coping with its risks and assembly its legal, governingand regulatory obligations at the same time as sustainably running as amarketable airline. The airline achieves this via putting in risk control intoits cultures and strategies to assist and formulate knowledgeable choices forthe gain of the firm and its shareholders- The principal purpose ofthe airline’s policy is to support a reliable Risk Management procedureextensive enterprise and to warrant that every risk that could endanger theachievement of the industry’s objectives is managed to a suitable level. – Risk Management is anintegral part of Air New Zealand’s procedures and how the Company is a criticalcontributor for planned and business organization, decision making and dailyoperational activities. All business entity is anticipated to recognize,evaluate, treat, observer and analyse their management risks as part of thebusiness consistency.
Managers are accountable for understanding, prioritizingand handling the risks for their region is matter of concern to a reasonablypracticable level and standard to ensure that the objectives of Air New Zealandare achieved. -Risk management techniquesand capability assist managers to focus on uncertainties and vulnerabilitiesassociated with the future thereby improving the likelihood of meeting businessobjectives. AIR NEWZEALAND. “RISK MANAGMENTPOLICY,” January 26, 2010, 3. ANSWER:-2Risk: -A probabilityor threat of damage, injury, liability, loss, or any other negative occurrencethat is caused by external or internal vulnerabilities, and that may be avoidedthrough pre-emptive action. Read more: http://www.businessdictionary.
com/definition/risk.html Risk is always present in each aspect. Whetherit’s in relation to finance (like capital risk, economy risk, exchange raterisk and many more), Life safety (some health related mis-happenings may occuror physical disorder and many more), Food industry (quality of food, deliveryof food, processing of food) or operations.In this case of Air New Zealand risk is categorised into many categories andexplained as under:-1-Mechanical fault-Themain reason for mechanical fault is the machine failure either by any of theengine part or any subsidiary parts connecting to the machinery. Every year, many workers became the victims of thesework-related accidents like some of them became serious and some even get fatalor they get in contract with occupational diseases because they are exposed tonumerous hazards which are posed by the machines they operate and their workenvironment. In terms of prevention, adequate actions can be taken initially atthe source, and it is necessary to provide the healthy work environment andheathy working conditions and personal protective equipment to eliminate the risksat the source.Q – How the mechanical fault can betraced?- By proper intimation system should be introduced-By routine based service and checking of plain.
– By using genuine spare and complimentary partsCase study-In air New Zealand there was the case in 2012 about the pipeline failure inwhich the pipeline got punctured by the digger and due to which thousands ofthe people suffered a lot and all the operations of the air New Zealand shutsdown with bunch of losses.Therewas also one of the cases in air New Zealand about the excessive release ofcarbon-dioxide from their fan which is a hazard to environment, but after doingproper workout on fault now air New Zealand became the first airline with leastemersion of carbon dioxide. 2-Weather:-Weather directly effects theoperations of the airways. Sometimes due to uncertain weather conditions it isquite difficult for the plane to run on time or may needed to land in transitairport due to no visibility and radar may also stop working, this may lead toinconvience to the passenger.
Then airways need to incure some extra cost forserving their passengers like have to provide accomoation, food and variousamenities, which sometimes does not meet their quality standards.Moreover, due to uncertainweather conditions airways can not provide the proper ground and air servicesto their passanger 3-Operationalrisk: -Operational riskis the prospect of loss resulting from inadequate or failed procedures, systemsor policies. Operaion risk is an event that disrupts business processes likesome policies and decisions are interpretated falsely which may went wrong . Thereason can either be the Employee errors, Systems failures, Fraud or othercriminal activity.
Any event that disrupts business processes. For an example: -Any misinformation from the controlbase tower would ultimately result to a plane crash without any doubt. Controltowers become the cause of the plash crashes on many instances since they keepproviding the pilot with wrong information, thus the pilot acts upon thatinformation and this could prove fatal to the safety of both the crew membersand the passengers. Airplane accidents are often foremost events affecting thepublic’s general views about aviation safety.Example of operational risk:–Risk arising from natural calamitieslike earthquakes, disasters and other environmental changes.- Internal and external fraud.-Implementation of policies and strategies.- lack of supervision and rectification of errors.
4:_DEPENDANCY FACTOR RISK :–Airlinecannot hire his own staff for all the services and needs to depend on outsourcing for various services like food and packing,cleaning, security and many more.for an example:- Air New Zealand has his offices at various airports indifferent countries and it is quite difficult for the management to hire andhandle this much staff. So instead of hiring the employees they do tie-ups withthe other agencies for all these kinds of services and discuss their qualitystandards.
sometimesthe other does not meet the quality standards and needs of the agreement. So,the airline has to suffer from that. 5-Meetingup the Policies and strategies: -Allthe airports in different countries have their own policies and strategies for everyother airline. So, it is important for airlines to have a smooth relation withthe countries. An airplane has to cross various borders for different countriesand require permission to do so.For an instance, There was the case of Air New Zealand that their relationswith middle east countries was not smooth and sound and flights from Aucklandto Los angles was stopped for some time because Quatar refused the crossingpermission to New Zealand from their border and have the right to shoot theaircraft without any prior notice to any of the person.6-Security risks:-Themajor risk for the airlines is the security risk.passenger safety:- To keep the well-being, secrecy and protection of thetraveller is the fundamental rationale of each airline.
Security must be givenin every airport (either destination airport or any travel airplane terminal)and in the plane. For an example: -There is a flight of Air New Zealand toIndia. They have their stoppage at Bangkok and they must guarantee thetraveller’s security even at Bangkok airplane terminal and at India’s airterminal.
Moreover, now days Criminal methodologies and tacticsincreasing day by day. Terrorists use simple to more complex tactics to carryout attacks. Individuals conceal weapons which can range from knives to riflesand bombs with an intention to pass through security checks at the port ofentry and their focus is towards the system hacking which hack the internalsoftware’s and control towers for hijacking the plane.
So, it is a need of hourfor covering up this risk.In addition to it, Individuals can carry or send someconfined/prohibited/illegal products with them or send by means of messengers,so it might bring forth pirating/give birth to smuggling which is called cargoservice. Thus, it must adapt up to security system at every other airport. The strategieswhich air New Zealand employs for managing operational risks are as follow: – 1-Advancedsecurity systemThecompany has undertaken initiatives to ensure maximum security for itspassengers and stuff at the port. The industry is taking all security measuressuch as increased surveillance of passenger behaviour, screening passengersflying to and from other countries as part of new the international securitymeasures.
Allflights operating within the airport undergo security screening proceduresbefore departures. The airline has established CCTV cameras for monitoring andrecording abilities at designated places where it conducts its operations. CCTVcameras are mainly located at passenger screening points and passenger bagsearch parts for both carry-on and checked-in international baggage.
Moreover, developing their systems in according to the capacity toeliminate the weather and climatic risks like introducing the real-time windand weather information into ground and airborne systems to match aircraft andground based trajectories. Developed the system about timely communications forweather information timely and efficiently by minimizing the need for humanintervention.2-Coping up with mechanical faults:- Air New Zealand has set up a separate team whose role isto provide 24 hours mechanical assistance to plane and for ground machinery.
The main aim is to avoid the inconvenience regarding every Air New Zealandflight that take off from New Zealandmust pass from the pre-test beforedeparting. Proper checking is done for the air craft under this process. Eachpart of air craft must be passed through various process and then only theplane gets ready to use.
ANSWER:-3 RISK LOG RISK FACTORS POTENTIAL FAILURE MODE POTENTIAL FAILURE EFFECT SEVERNITY POTENTIAL CAUSE OCCURANCE CURRENT CONTROL DETECTION RPN RPN RISK CONTROL INTERPRETATION. OR ACTION NEEDED MECHANICAL RISK BREAK DOWN OF MACHINE PART LIFE RISK,SERIOUS INJURY OR DELAY OF FLIGHT. 9 DELAYED IN REGULAR MAINTAINACE OR USAGE OF UNAUTHORISED PARTS 2 ROUTINE MAINTAINACE OF FLIGHTS AND PROPER MANAGERIAL POLICIES TO BE IMPLEMENTED.
9 162 SECURITY RISK FLIGHT MAY GET HIJACKED, DRUG OR RESTRICTED GOOD MAY BE SMUGGLED 8 MAY BE DUE TO INSUFFIECENT SECURITY OR BREAK DOWN OF SECURITY SYSTEM OR BY HACKING THE DATA. 3 INCREASING SURVELLANCE,USING EFFIECENT MODES FOR PROTECTION AND CHECKING. 6 144 OPERATIONAL RISK LACK OF SECRECY OF DATA DELAY OF FLIGHT, INCONVINIENCE TO CUSTOMER 6 MISINTERPRITATION OF INFORMATION, LACK OF SUPERISION AND RECTIFICATION OF ERRORS, FRAUD 4 DELIGATING AUTHORITIES TO EVERY LEVEL AND REGULAR MAINTAINCE OF WORK RECORD 4 96 WEATHER UNABLES FLIGHT TO TAKE OFF DELAY IN FLIGHT AND OTHER SERVICES 6 LESS VISIBILITY WHILE T0RAVELING, UNCLIMATIC WEATHER CONDITIONS 4 ADJUSTING PLANE TIMING AND MAKING PRE-ARRANGEMENTS OF OTHER SERVICES WIT WEATHER PREDICIONS 7 168 SEVERNITY SCALE EFFECT CRIETERIA:- SEVERNITY OF EFFECT RANKING HAZARDOUS- WITHOUT WARNING MAY RESULT INTO INSTANT DEATH, HUGE LOSS FOR COMPANY AND PASSENGER 10 HAZARDEOUS- WITH WARNING MAY EXPOSE SERIOUS INJURY, MAY CREATE LIFE RISK 9 VERY HIGH MAY RESULT IN CLIENT LOSS AND A CASE AGAINST CONSUMER COURT 8 HIGH MAY RESULT IN CLIENT LOSS WITH MANY SOME PHYSICAL HARMS 7 MODERATE 6 LOW 5 VERY LOW DISRUPTION OF SERVICE NOTICED AND RESULS IN INCONVEINCE TO PASSENGER 4 MINOR FAILURE NOTICED BY PASSANGER BUT NO INCONVENIENCE TO PASSENGER 3 VERY MINOR NO SERVICE FAILURE NOTICED BY PASSENGER AND DEOS NOT PROVIDE INCONVENIENCE TO PASSANGER 2 NONE NO EFFECT 1 OCCURANCESCALE PROBABILITY OF FAILURE TIME PERIOD RANKING VERY HIGH:-Failure is almost inevitable. MORE THAN ONCE PER DAY ONCE IN EVERY 3-4 DAYS 10 9 HIGH:- ONCE IN WEEK ONCE IN FORENIGHT 8 7 CRITICAL ONCE IN MONTH ONVE IN EVERY SIX MONTH 6 5 RARE ONCE IN A YEAR ONCE IN 2-3 YEAR 4 3 REMOTE:- failure is unlikely. No failures associated with almost identical processes ONCE EVERY 3-6 YEARS ONCE EVERY 7+ YEARS 2 1 DETECTION SCALE DETECTION CRIETERIA RANKING ALWAYS IMPOSSIBLE NO KNOWN CONTROL AVAILABLE TO DETECT FAILURE 10 VERY REMOTE CURRENT CONTROL ARE AVAILABLE BUT CAN NOT DETECT ACCURATELY 9 REMOTE VERY REMOTE LIKELIHOOD CURRENT CONTROL WILL DETECT FAILURE MODE 8 VERY RARE 7 RARE 6 LOW 5 MODERATE 4 HIGH HIGH LIKELIHOOD THAT CURRENT CONTROL WILL DETECT FAILURE MODE 3 VERY HIGH VERY HIGH LIKELIHOOD CURRENT CONTROL WILL DETECT FAILURE MOOD 2 ALMOST CERTAIN RELIABLE DETECTION CONTROL DETECT THE FAILURE MODE 1 FMEA recommendation sheet for risk control RPN LEVEL ACTION LESS THAN 500 CRITICAL URGENT ACTION NEEDED 300-500 EXTREME ACTION NEEDED 100-300 MAJOR ACTION CANT BE POSTPONED LESS THAN 100 MINOR CAN BE ACTIONED LATER REFERENCES:-