Introduction
France has been faced with threatening trends in her air travel industry in the recent past. Although declining economic and leisure demands for air travel are evident across the world due to various economic, political, and social factors, France seems to have experienced its fare share of this occurrence. The situation has even worsened following the decline of leisure and business demands that are dependent of air travel (Flottau & Buyck 2013, p. 33). In fact, it is projected that, within the next few months, there will be cancellation of flight bookings or complete cancellation of travel by clients.
This outcome is likely to worsen the situation in the air travel industry in France. Annulment of flights will mean increase in losses that the air travel industry is already experiencing. This termination by both domestic and international travellers will translate to a decline in economic returns in France. The economy of France is therefore in the verge of losing a large share of its income. With these threats ahead, there is a need to safeguard the economic position of the French airline.
Both financial and operational efforts must be put in place before the situation grows worse. Strategies to regulate flight fleets, routes, and resources required for the airline should be devised. This paper provides a rescue plan based on the witnessed operational and financial issues of flight fleets, routes, and resources in an effort to offer recommendations on survival measures.
Operational Predisposition
Operations in the aircraft industry demand a highly skilled workforce and high technology. There is a need for coordinated operations in the airport from the entrance, through the waiting bay to the control towers and the human resource offices. Proper operations management ensures that there is efficiency, security at the airport, security in the air, and that customers’ demands are satisfied prior to, during, and after the journey.
Efficiency Demands
In order to achieve efficiency and effectiveness, Air France must put in place mechanisms to ensure that the time spent carrying out a certain duty is worth the amount of work done. Knibb (2012, p. 28) observes that delays in airports continue to increase thus reducing the number of airplanes that can take off in a certain airport in a given period. There have been increased demands for efficiency in the French airports.
According Cabon et al. (2012, p. 44), due to the increased security risks and threats of terror attacks by terrorism groups such as the Al-Qaida and Taliban, airlines in France have increased the number of security checks. The airlines have also installed scanners for languages and individual cargos. Scanning and scrutinising these items may take a longer duration than the previous inspection methods.
According to Barros, Bin Liang, and Peypoch (2013, p. 668), inefficiency of the operation takes a lot of time. In some cases, it has resulted in flight delays. Travellers have therefore been complaining about delayed arrival and departure from various airports in France. Therefore, there are fresh demands for increased efficiency in France airports.
Passengers are demanding increased personnel for inspection, direction, and management of travellers both at the airport and in the airplanes. According to Wong and O’Connor (2011, p. 30), there are demands that the airlines installs modern technology devices that will enable them to carry out most of their operations online. Although airlines have installed computerised registration mechanisms and crowd-sourcing mechanisms, the delays are still evident as given below.
Source: (Carbon et al. 2012)
Despite all efforts, there has been a lot of paper work in the airport, which has increased the number of hours that passengers have to wait for clearance. Therefore, air travel companies in France should adopt the use of online bookings and/or promote it to ensure that the majority of travellers can access it.
According to Wong and O’Connor (2011, p. 30), customers should be able to do most of the travel arrangements and processing online in order to save the amount of time used in clearance and inspection at the airport. Barros, Bin Liang, and Peypoch (2013, p. 668) argue that, with increased efficiency in the airport, there will be an amplified number of flights and travellers hence increasing revenue for the government and private airline companies.
The number of travellers who demand air transport has also been on the rise. However, congestion and tight security checks in the airports have made the process of air travel very cumbersome.
It is therefore difficult for the airline management to keep the business on the profit side. Since there has also been an increase in the number of airlines in the world today, competition for customers of various classes has also increased. Many airlines are competing with the French airlines. The demand for better services continues to rise.
Bad weather condition is another cause of inefficiency of France airlines. Knibb (2012, p. 28) observes that poor weather conditions in various destinations and routes have resulted in cancellation of frights. This issue makes some routes and places inaccessible via airplanes. Increase in the number of inaccessible places because of poor weather conditions results in reduced revenue for the airlines.
The situation has become even worse with the increased greenhouse effect that has led to unpredictable changes in weather conditions. Increase in efficiency will increase the market share of these airlines. The airlines should also work to colonise new markets in order to increase their market chunk.
Use of alternative routes will also ensure that the airlines can deliver passengers at the same destinations via other routes. This strategy will ensure that their loyal customers will not move to other airlines hence saving on their revenue.
Security Provision and Air Safety
There has been an increase in demand for security assurance by air travellers across the globe. Governments and individual companies have called for tight security measures at airports especially after the September 11 attacks in the United States. Since then, the government of France has made a deliberate move to seal the loopholes that existed before in its airports.
It is worth noting that the 19 hijackers who terrorised the US airlines during the twin attacks went through the normal security checks and even shut the alarms of the metal detectors that the security men were using. Therefore, there is a need to install high-tech detectors and scanners at the airport.
The hijackers then made these planes fly into the World Trade Centre and the Pentagon crushing on the buildings. Thousands of people and those that came to respond to the attack died innocently portraying the fact that most of the airports in the world are unsecure.
Because of terrorism threats, airports in France need to adapt advanced screening devices with the ability of screening bomb materials and/or even metallic devices. Previously, passengers could not carry bottled water into the airport or the airplanes. The inception of new technology in airports has enabled passengers to carry such roles.
In France, computer companies such as Siemens will have to work with the airports in the process of installing baggage screeners, which allow passengers to drop any bag immediately they enter the airports for screening. This new luggage screening system will speed up the process of passenger and luggage screening.
A good example of an airline that has implemented this strategy is the Delta Airline, which has increased the number of luggage screened per hour from 200 to 500. This technology will ease congestion in the airport thus reducing the safety risk.
Cabon et al. (2012, p. 43) affirm that there is demand on the side of the government of France to provide good administration by investing on development of sophisticated sensors that have the ability to recognise dangerous persons such as those who carry explosives in their clothes long before they get into the gates of the airports.
These sensors should be portable to enable security agents to use them outside the airports to detect any dangerous people or even vehicles long before they cause any damages in the airports or n the airplanes.
In fact, Clemons and Madhani (2010, 43) observe that demand for non-computed tomography X-rays form of transmission, large scale ray detectors especially the gamma ray detectors, explosive trace-detectors, and the hand-held devices for detecting explosives has gone up. These devices will enable the airports to heighten up its security checks.
There is the need for the French airports to acquire advanced information technology devices that will enable the police and special units that deal with border patrol to exchange data faster. New technology will allow the police units and airport authorities to exchange information freely and quickly even when they are using different databases.
Sparaco (2011, p. 20) argues that the security personnel employed in airports should pass through a vetting process for any criminal record. It is worth noting that, before the September 11, some airports had hired employees with criminal records. For example, the Philadelphia International Airport had hired untrained security personnel with criminal accounts.
Clemons and Madhani (2010, p. 43) observe that airlines should also adopt the use of video surveillance gargets that enable monitors to supervise and detect abnormal behaviour in crowds. The technology will enable the security agent to identify the specific persons who commit crimes. For example, the equipment was able to identify the bomber who bombed the Times Square accurately amongst other people in a crowd.
The government of France should plan and establish a security unit, which will consistently investigate terrorism attacks besides taking pre-emptive actions to prevent any act of terror. In the wake of the September 11 attack, Nawaf-al-Hazmi, Majed Moqed, Khali al-Mihdhar, and even Salem al-Hazmi were able to set off all metal detectors and their alarms at the security checks.
The implication is that incompetent screening devices will just endanger the lives of passengers and airline operators. When passengers realise that a certain fleet is not competent enough to offer them good security, they simply avoid it. Consequently, the airline will lose much revenue.
Financial Predisposition
The issue of finance and financial management that ensures feasibility of airlines as an investment is at the heart of the French airport management. There is a need to make profit regardless of the increased demand for better remuneration, high prices of oil, rising consumer demands, shortage of staff especially pilots, and other financial risks.
New fuel Sources and Fuel Prices
There has been an increase in the need to turn to bio-fuels as a renewable energy. Bio-fuel has been highly preferred as an alternative for traditional fossil fuels. However, the process of producing bio-fuels is not feasible. The amount of bio-fuel available in the world today is not enough for the air transport. Production of fossil fuel is not feasible especially with the low quantity of production. There is a challenge of production of enough bio fuels for airplanes in France.
Investment in biological materials that produce bio fuel is supposed to be prioritised. There is also a need for France airways to join the Sustainable Aviation fuel Users Group (SAFUG). This initiative will enable France to be an active participant in the process of ensuring the success of bio-fuel production in the world. Thomas (2012, p. 24) affirms that aircraft fuel prices have increased in a very short duration.
Production of enough fossil fuels will reduce the cost of fuels hence increasing the profitability of French airlines. Proper investment in fossil fuels will enable France to save the high cost of fuels in the world today. According to Thomas (2012, p. 24), the financial implication of the high airplane fuels has made air travel very expensive for both domestic and international travellers. There is increased demand for industries in France and the world at large to go green.
The aviation industry in France is also challenged to reduce the amount of carbon emission in the air. In fact, carbon emission has resulted in financial implications to the stakeholders. Legislations are in place to regulate the amount of carbon emission. Taxes are levied as per the amount of carbon that airplanes release into the air. For example, airplanes from France are bound to be charged a huge amount of money as per the amount of green house gases that they emit into the air.
It is projected that taxation on green house gas emission from aircrafts is likely to go up to $ 8 billion within a period of eight years. Such a move is likely to influence the success of air transport in France negatively. Increase in the cost of using air transport is one of the drawbacks of air travel in France. In fact, with such strict measures, the airlines can result in making loses.
Modern Plane and Airport Designs
The demand for modern airplanes in France has been increasing. According to Harned, Sheehy, and Yao (2012, p. 80), modern airports are working to strengthen cockpit doors in a bid to counter terror attacks. This strategy ensures that no passengers or unauthorised persons can interfere with the pilot and the co-pilot especially when the airplane is airborne. Air safety is a concern for most of travellers and airport managers.
The doors of the airplanes are made bulletproof to prevent any forceful entry to the cockpit. This strategy has made it safer to the cabin crewmembers and even the passengers. The government of France has also been made to employ air marshals that board the flight for security purposes.
Cost-effective airplanes are on high demand today. The demand for cost efficient planes especially for commercial purposes has increased with time. Flottau and Buyck (2013, p. 33) confirm that airlines are nowadays purchasing airplanes that consume low fuel to make the whole process profitable and cost effective. The manufacturers of modern aircrafts are working on reducing the weight. Reduced weight saves the amount of fuel energy that the airplane needs to fly.
Reduced weight of the aircraft also provides space for increased number of passengers that the aircraft can carry. The extra weight is substituted with passengers. Increase in the number of passengers will boost revenue hence making the airline gather more returns. Modern airplanes are replacing bulky matter with lighter materials in a bid to reduce their weight. Such heavy and bulky materials are replaced with I-pads, hybrids, and tablets.
According to Harned, Sheehy, and Yao (2012, p. 80), modern aircrafts are also adopting the use of foldable wings that use low fuel in flight. The foldable wings have reduced the amount of fuel that modern aircrafts consume. Consequently, this case has positively influenced the financial returns of the airlines. Use of a new airplane design will decrease the volume of gas that airplanes take and hence saving on the cost.
France is also faced with the challenge of purchasing and designing aircrafts that meet the demands of the modern travellers. The new designs are made in a way that a whole family can travel together and enjoy the services of certain amenities.
Some of the aircraft manufacturing companies are changing the designs in order to capture the attention of a certain group of customers. For example, some modern aircrafts have separate cabins for different passengers. Passengers who want to enjoy some quiet time can book certain cabins while those who want to travel in the company of others can use other open cabins.
Consumer Demands
There has been a falling demand for air travel tickets by customers in France. With the increase in price of air tickets from one destination to the other, the number of air travellers has reduced. For the last ten years, the prices of air tickets have been on the rise. According to Flottau and Buyck (2013, p. 33), various governments have increased the passengers’ duty.
For example, passenger duty in France has gone up to 50 percent. Customers who prefer cheaper airlines have therefore abandoned most of the standard aircrafts as the following information reveals.
Source: (Carbon et al. 2012)
Consequently, various airlines in France have begun making loses. Altanero (2005, p. 22) observes that most of the airline resources that are installed at very high cost are underutilised.
Air travellers are also demanding high technological care while on board. Labous (2013, p. 28) observes that there have been high demands for Wi-Fi internet connection in the aircrafts. Language translation demands have also come with the advancement of communication technology and high dependence on communication technology.
Altanero (2005, p. 22) also reveals how language translation and computer technology require advanced training of the cabin crew in information communication technology. People have adapted to working on the internet than working in the office. As they travel, they can also manage their offices and their investments online.
Customers would therefore prefer boarding aircrafts that offer such services. The levels of customer care services in various airlines in the world have made customers realise that it is possible to provide them with good hospitality services at the same travelling cost. Travellers that prefer lucrative services prefer airlines that have the ability to provide them with all the services that they need. For example, the Emirates airlines provide such services for business travellers.
These travellers are therefore able to pay high amounts of money for the services. It is therefore profitable to offer high quality and up-to-date services for the customers. For the airlines in France to be updated relative to other competitors in the air travel business, they must keenly observe the modern-day trends in air transport. Such a move will make them remain relevant to the market.
The 21st century has come with various changes in the air travel industry. There have been many changes in the way customers book their air ticket, have their baggage screened, label their cargo, and/or even conduct themselves in the aircrafts. Air France must therefore be up-to-date with the current computerised labelling of baggage, provide controlled check-in, facilitate the use of e-tickets, and the way it relates with customers.
Labous (2013, p. 28) affirms that airlines that still demand that customers show their passport and tickets must up their services to adapt the use of e-ticketing which saves time, money, and other resources. Efficiency is a demand that all travellers have today. The Air France must therefore invest in the modern-day technology to survive in the highly competitive air transport. In fact, the Delta airline has been able to survive the current elevated technology in air transport.
Conclusion: Critical factors for Survival
To bring the cost of service provision in the French air transport, Air France can purchase oil refineries. Having self-controlled oil refineries for the airlines will help to bring the prices of oil down hence making the business feasible. The government will also bring the prices of aircraft fuel under control. Freedman and Orr (2005, p. 102) suggest that the major target of the France airlines should be developing a method of bringing down the cost of service provision to raise profit levels.
In the modern-day world, various airlines have begun employing the use of non-union labour. Non-union labour ensures reduced demands for better remunerations. According to Sparaco (2011, p. 20), the use of non-union labour will also end the current wave of industrial action by employees. Such efforts will enable the airlines to make profits in the competitive market. France can also use of modern aircrafts with the provision of lucrative services.
Such modernisation of aircraft will appeal to travellers of all classes hence ensuring that the need of every customer is met. With such customised services, the French airlines can be guaranteed of good returns from the air travel business.
Freedman and Orr (2005, p. 100) assert that it is possible for the French airlines management to make profits against the projected possible losses. The airline should improve security and efficiency in a bid to maintain its customers and attract new ones. France should also train new and young pilots to cover up for the high number of retiring pilots.
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