Periods 1 and 2 Decisions

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u1a1-global_air_strategy-final.docx

RUNNING HEADER: AIRLINE STRATEGY 1

26

AIRLINE STRATEGY

Team A

Misti Camacho, Nhi Hoang, Prince Chavis

Sharon Coleman, Temitope Adaje, Tony Ausby

MBA 6028

Dr. Steven Callender

August 30, 2015

Introduction

Global Airlines was established and implemented in 2013, headquartered in Cary, NC. The federal government deregulated the airline industry, all companies were afforded the opportunity to compete for passengers by utilizing creative thinking by creating competitive fare structures and tempting routes. Global Airlines was implemented since the NC Airlines stopped servicing the local region. During Global Airlines first year, the company transported 2,700 passengers, has grown to a regional airline, transporting 20,000 passengers last year. Global Airlines has a financial history of profitability, which we would like to see this grow throughout the years.

Purpose

Global Airlines is looking to compete and to gain more of the market by redesigning our aircrafts and providing premium customer service to our consumers. Global Airlines will perform a complete make over to utilize the latest technological advances in electronics, information, logistics, and aviation to ensure low operating and marketing costs, which will maximize our overall efficiency customer service and convenience. This will provide the needs and wants in the highest regards to all of our customers. Global Airlines’ purpose is to become the number one choice in transportation throughout all market segments.

Strategy Statement

‘To implement the best experience to our customers by providing the best customer service and lowest fares within the United States.’

Mission Statement

‘To Provide the best value, best customer service and the lowest fares within the airline market. To achieve this, our employees are pivotal members of the company, and customer service is their number one priority. So make it your number one priority and fly with Global Airlines.’

Vision Statement

‘Our dedication prevails of striving towards being the best airline in the eyes our customers. Global Airlines will provide different and distinctive products that would bring us closer to being number one in our customers, our family. Which in turn, Global Airline employees and shareholders are considered family; Global Airlines would not exist if it were not for our shareholders and employees.’

Rationale:

The evaluation of competing futuristic and emerging technological solutions for all of our aircraft; rational of this strategy is to determine the best technology that fits Global Airlines and will offer the best growth opportunity in the future.

The Operating Environment

Global Airlines is strategically positioned to grow the customer base and maintain the quality of service that it has earned. The preparedness and readiness of the airline to face future market demands is given by the dynamic state of the airline and the adaptability measures put in place to ensure swift fitting into newer challenges that the future might bring.

One of the airline’s strengths is the growing popularity gained by a strong influence of its unparalleled customer service, exciting routes, and cost effective pricing. The airline is market driven and has positioned itself to solve the many challenges that the city dwellers faced previously. The Airline has had a sharp rise in customer approval ratings that has influenced the rise in customer base as demonstrated herein above.

The airline has established itself as a premier airline and the ultimate mode of transport for all people it serves in the region. This is of big significance in the sense that it has an outstanding record of accomplishment among the many clients and customer satisfaction has been essential in driving the company’s growth. Providing the very best in air transport for both people and cargo is a significant factor in the company’s pursuit. The delivery of value in every aspect of air transport is the key strength that the company thrives on to propel future growth prospects.

Value in the airline’s growth prospects is delivered through keenly planned and implemented safety standards that guarantee customer’s confidence in the airline. Investments in the latest safety standards and equipment have been costly for the airline, but promise to ultimately guarantee customer satisfaction and confidence. With highly trained and motivated staff members on the latest safety standards and demands, the airline’s major focus on safety is critical to delivering its mandate and serves the customer’s best.

SWOT Analysis

Strengths

Air Travel

Safety Record

Staff is highly trained

Utilize different types of marketing segments.

Weaknesses

High spoilage rate

Expensive to operate

Bad communication and monitoring

Unable to change schedules due to climate change

Opportunities

Market growth offers opportunities of leisure and different destination expansion.

Technology and innovation can bring cost savings.

Possible links to other airlines would increase passenger volume.

Threats

Global down spiral would affect travel

Upward spike in fuel and associated costs

Governmental laws and guidelines that cost or introduce international market competition.

PESTEL Analysis

· Political Factors

(a) Impacted by issues, such as: war, terrorism, and outbreak of diseases

(b) Deregulation Act of 1978

(c) Antitrust Division’s Civil Enforcement Program past in August 2013.

· Economic Factors

(a) Fluctuation in oil prices

(b) Industrial output & business confidence

(c) Growth in gross domestic product (GDP)

(d) Disposable income

(e) Consumer confidence

· Social Factors

(a) Retiring baby boomers

(b) Forecasting demand shrinking

(c) future travel preferences decreasing

· Technology Factors

(a) Latest Technological advances result in lower fuel consumption.

(b) Implementing innovative technology solutions that are utilized by the major regional airports that cut operating costs in half.

· Environmental Factors

(a) Global Aviation Industry processes 2% of all human –induced carbon dioxide emissions.

(b) Alternative fuels are expected to reduce the aviation carbon footprint of fuel by 80%.

Porters Five Forces Model Regarding the Airline Industry

Threat of new entrants

1. Airport regulations

2. Limited slots

3. Aggressive prices

Bargaining Power of customers/suppliers

1. Greater bargaining power of users

2. Competition driven

Threat of substitute products

1. Low-cost airlines

2. Direct rivals on certain routes

Competitive rivalry within the industry

1. Limited number of competitors within the region

2. Excessive weight of incumbents

Course of Action

The Global Airline is evaluating her position in the market in order to prepare for the future as appropriate. A keen analysis of the current routes and their overall contribution to the company’s undertakings has been critical. The viability and the number of customers each route contributes is critical. The analysis is significant as it helps the airline make pertinent decisions on which routes to maintain or relinquish.

In the same context, the review of pricing per destination is critical as it will guides the company to adjust the fare structure to fit the current and future market demands as compared to the present-day market conditions.

The company continuously plans to expand and the plans to do so are critical as they help the industry plan future prospects in terms of destinations, size of fleet and additional routes. The review entails understanding past fuel procurement methods and how best to acquire the commodity, investments in employee trainings in order to manage the company better and the company’s engagements in corporate social responsibility initiatives such as donations to charities and carbon footprint reductions. All these are critical as the airline positions herself for a more competitive future.

Goals & Objectives

Global Airline being a leading commercial airline accomplishes its mission by believing in its people. People choose to work here for many reasons; there is the excitement of being a part of a vibrant, international, and expanding airline community. We also offer the opportunity to travel and this incentive motivates prospective employees who want to join the team and work for the “Wings of Cary”.

Global Air is a customer-focused airline that offers consistently outstanding services to both business and leisure travellers. We have earned a reputation for providing "the best care in the air". Industry experts have awarded us for delivering outstanding services. ‘No airline does it in the unique Global way’.

Global Air offers customers excellent services on domestic, regional, and international routes so we seek the very best candidates to support the accomplishing of this mission. Interested and qualified professionals must be team players with a passion for people and service and possess undisputed integrity, honesty, mutual respect, and responsiveness to our customers’ needs, which are important values at Global Air.

The Global Airline, as an organization, also values its shareholders by considering them in all business decision making. The relationship is between benefits and shareholder’s value (including a positive impact on shareholder value drivers). We identified three key drivers capable of increasing shareholder’s value and include:

Revenue or market share growth. Certain utilization strategies reap benefits that can directly increase revenues (for example, additional sales made through aircraft trips or the use of the aircraft as a charter vehicle for third parties);

Profit growth. To calculate the increased earnings resulting from using business aircraft, a cost-benefit comparison must be performed to determine whether the quantifiable costs of operating the aircraft are less than the quantifiable benefits. The evaluation must take into account the financing strategy for the aircraft, the tax implications, the operating costs, and the tangible and intangible benefits derived. In general, if the quantifiable benefits are greater than the quantifiable costs, business aircraft utilization should be a “must” for the company; and

Asset efficiency. A company can increase its asset efficiency in a number of ways, including improving business processes and leveraging existing assets more effectively. Supply chain improvements fall into this category. Some specific strategies that would cause large increases in asset efficiency include cycle time reductions and key employee advantage.

For an airline, like Global Airline, the best hedge against fluctuating fuel costs is to invest in aircraft that use advanced engine technology resulting in improved overall fuel efficiency. Lower fuel burn reduces total fuel consumption and contributes to an airline’s profitability. This has been our business practice since 2013 and we shall continue along this trend.

Since fixed costs associated with aircraft purchases are high, it should be supported by a strong demand for air travel. Hence, an investment increase is also an indicator of expected growth in future demand. However, excess capacity may hurt margins as it leads to lower yield and utilization rates. Due to an increase in the average aircraft size, growth in available seat miles will increase, but passenger load factor will be impacted slightly.

Global Airline has established a solid reputation for being one of the best employers in since inception. Global Airline, employees enjoy travel and other related fringe benefits.

Global Airline offers a wide array of employment opportunities in administrative, professional, technical and airline-specific disciplines; irrespective of the level or area of responsibility, each employee contributes to the growth and success of our airline. We believe that individuals score goals, but ultimately ‘the team wins the game’. This has been made possible from the huge investments on staff training by management.

At Global Airline, you will become part of a heritage of great achievement with a future of even greater promises.

At Global Airlines, we consider the different facilities at the different airports, including gates and baggage-handling facilities. These facilities at the airports should be planned efficiently to accommodate the planned flight schedule economically. The processes of facility planning are more crucial at the airline hub, where the airline operates many flights, and the usability of each resource is critical. Scheduling of airport facilities should consider schedule disruptions that typically result from adverse weather conditions.

Having gone through challenging times in the most recent months as a player in the airline industry, Global Airline is capitalizing on new technologies to deliver the best possible experience and will continue to innovate by improving seating and catering, convenience, comfort and the check-in process, and even by creating business-focused flights.

The rationale is to keep the goals and objectives of Global Airline alive that includes:

· To operate above and beyond the highest standards of safety and security;

· To offer a superior level of customer service and to deliver on all promises made to our guests;

· To provide our shareholders with an attractive return on their investment;

· To provide continuous quality training and development to all our employees; and

· To conduct our business with the highest level of integrity, business ethics, and moral values.

Operating Guidelines

Global Airlines Standard Operating Guidelines mission is to achieve consistently safe flight operations through adherence to SOPs that are clear, comprehensive, and readily available to flight crewmembers. Global Airlines operating guidelines follow strict adherence to the Federal Aviation Administration (FAA) in the USA and the Joint Aviation Authority (JAA) in Europe. Global Airlines International flights operations methodologies fall under the jurisdiction of International Civil Aviation Organization (ICAO) when operating abroad and are regulated by the country of registration and the sovereignty in which the operation is included. Global Airline’s commercial operations addresses the US, the Code of Federal Regulations (CFR Section 14), Parts 119, 121, and 135 which covers commercial operations; in addition, Part 91 addresses general operating and flight rules. Parts 61, 65 and 67 govern aircrew certification. Many large airlines also utilize fleet-specific flight operation guidelines under agreements with the local governing authorities.

Global Airline’s Standard Operating Procedures (SOPs) are universally recognized as basic to safe aviation operations. Effective crew coordination and crew performance, two central concepts of crew resource management (CRM), depend upon the crew's having a shared mental model of each task. The Global Airline’s shared mental model, in turn, is founded on its mission, philosophy, and SOPs. Global Air’s operating guidelines are to provide its crew with working background knowledge, basic concepts, and Global Air philosophy in respect to SOPs. Global Air’s SOPs are clear, comprehensive, and readily available in the flight deck manuals for all crewmembers.

Standardization Program

Global Airline’s Department Standardization Program (DSP) encompasses the use of SOPs and Standardization Flights to ensure effective crew coordination. Crew coordination is the effective delegation of responsibility and division of workload among the flight crewmembers. Crew coordination is essential in the safe operation of Department aircraft. The use of SOPs, checklists, and terminology creates a standardized system whereby the pilots become immediately aware of any departure from the normal sequence of events or system operations. The use of these SOPs will place our flight crew in the best position to recognize potential problems and respond to emergency/abnormal situations as appropriate.

Use of Checklist

Global Airline’s SOPs are based on the systematic use of checklists to accomplish the required checks, i.e. normal, abnormal, emergency, etc. SOP items that are shown in quotation marks are to be stated as written. The following condensed SOP is to be utilized in all routine fixed-wing flight operations conducted by Global Airlines. Any deviation from this SOP as dictated by conditions, or circumstances, must be thoroughly briefed by the Pilot Flying (PF) and Pilot Not Flying (PNF), and understood by all crewmembers.

Before Starting Engines Check

Starting Engines Check

A minimum of one person qualified to operate aircraft engines must be seated in a pilot seat when an aircraft engine is started, or running. Engines will be started utilizing the proper checklist procedures.

Task/Initiation Cue PF PNF

Before Starting Engines Start engines utilizing a flow pattern check.

After Starting Engines Check

Task/ Initiation Cue PF PNF

After engines have been Call, “After Starting Engines started check”.

Taxi Check

Nose wheel steering and braking should be checked as soon as possible during taxi and while operating at low speed. When any Global Airlines aircraft is to be moved under its own power, two persons qualified to taxi the aircraft are required to be seated in the pilot seats with seat belts fastened and seats and controls properly adjusted.

Task/Initiation Cue PF PNF

PF calls, “Taxi check,” Complete checklist.

Takeoff Briefing

Prior to taking the active runway for takeoff, the PF shall consider special factors influencing takeoff, i.e. wet runway, anti-icing requirements, crosswind, deviations from the norm, etc.

Takeoff Procedures

Takeoff power must be set prior to attaining 60 KIAS. Runways limited by performance requirements for the aircraft gross weight, or by other factors, will require the use of a specific takeoff procedure, as shown herein below. Refer to the applicable AFM. The PF must advise the PNF of the procedure that will be utilized.

Takeoff

Task/Initiation Cue PF PNF

In position on the active Hold brakes. Advance Call, “Power set,

runway. Before Takeoff power to takeoff N/EPR, instruments stabilized.”

checklist completed and per AFM. Monitor engines and

cleared for takeoff. systems indications.

PNF calls, “Power set, Release brakes.

instruments stabilized.”

Takeoff Roll

After Takeoff Check

Task/Initiation Cue PF PNF

At positive rate of climb: Call, “Positive Rate.”

Task/Intiation Cue PF PNF

PNF calls, “400 feet” Call, “Flaps up.” Confirm IAS not less

Altitude Verification Procedure

The following procedures will normally be used regardless of which pilot is flying.

Altitude Callout Procedure

The PF will verbalize leaving the altitude 1,000 feet prior to an assigned altitude. The callout is to include the altitude vacating and the assigned altitude, i.e. “Six thousand for seven thousand” or “Flight level three-zero-zero for two-niner-zero”. After the PF makes this call, the PNF will verify and validate the call by stating “check”. If the PF fails to make the call, the PNF shall initiate the call and the PF shall validate the call.

50,000 Foot Climb Check

Task/Initiation Cue PF PNF

At or above 50,000 MSL Either PF or PNF call, “50,000 feet.”

Cruise Check

Task/Initiation Cue PF PNF

Established at assigned Either PF or PNF call, “Cruise check.”

cruise altitude.

PF or PNF calls, “Cruise Complete checklist. Call, check.

“Cruise check complete.”

Descent Check

Task/Initiation Cue PF PNF

Clearance to descend. Call, “Descent check.”

PF calls, “Descent check.” Complete checklist. Call, “Descent check complete.”

50,000 Foot Descent Check

Task/Initiation Cue PF PNF

Below 50,000 MSL: Either PF or PNF call, “50,000 feet.”

PF or PNF calls, “50,000 ft” Call, “50,000 Foot Complete checklist.

Descent check.” Call, “50,000 Foot Descent check complete.”

*Note: Both pilots set altimeters. PNF call, “Altimeters set and cross-checked”.

Approach and Landing Briefing

The PNF shall have the appropriate navigation and approach charts organized and readily available. The PNF shall obtain the destination weather and the approach in use information and advise the PF. The PNF shall complete the landing data computations (or verify if already computed) and enter or post numbers, as applicable. Both pilots shall review the information and procedure to be used for the descent and approach. The PF shall brief the PNF of his/her intentions. The briefing should be concise and not be an attempt to memorize the approach procedure. It should include a review of the pertinent information and any special conditions, or procedures, that will be utilized for the approach and landing. The 4 “M”‘s should be reviewed as follows: MSA; Marker altitude; Minimum altitude; and Missed approach procedure.

In-Range Check

Complete the In-Range check when below 10,000 feet MSL and/or within 30 nautical miles of the destination airport.

Task/Initiation Cue PF PNF

Below 10,000 feet MSL Call, “In-Range check.” Complete checklist.

Approach Check

Task/Initiation Cue PF PNF

Flap selection. Call, “Flaps , Select requested flap

Approach Check setting. Call, “Flaps selected.” Monitor and call, “Flaps indicated.” Complete Approach

Checklist.

Approach Checklist Complete. Call, “Approach check complete.”

Precision Approach (ILS)

Task/Initiation Cue PF PNF

At initial convergence of Call, “Localizer alive.” Confirm and call,

Course Deviation Indicator “Localizer alive.”

(CDI):

Before Landing Check (Precision Approach)

Landing gear and landing flaps will be selected at or before the final approach fix (FAF). Approach will be stabilized from FAF until landing, or missed approach.

Before Landing Check (Non-Precision)

Visual Approach

Reported weather at the airport must have a ceiling of at least 1000 feet and visibility of at least 3 miles. Landing flaps will be selected no later than 500 feet AGL. The approach will be stabilized from 500 feet AGL until landing. The stabilized approach requires the aircraft to be established on the desired track, glide path, in landing configuration and with airspeed and sink rate constant.

Approach Deviation Limits (Callouts after passing FAF or 1000 feet AGL)

After passing the FAF or 1000 feet AGL, the PNF will call out any warning indications, or deviations, as noted below. The PF will acknowledge with “Correcting”. If the PF does not respond and the deviation continues, the PNF will repeat the call. If the PF still does not respond and/or the deviation remains uncorrected, the PNF will take control of the aircraft following the second failure to respond by the PF. The change of control will be announced by the PNF stating, “My airplane”.

Precision Approach

Non-Precision Approach

Additional SOPs not detailed:

Visual Approach Slope Indicator (VASI)

Approach Speed

Vertical Speed

Missed Approach Procedure

Landing Roll

After Landing Check

Task/Initiation Cue PF PNF

Clear of active runway or Call, “After Landing check.” Complete checklist. Call,

upon completion of a 180° “After Landing check

turn. complete.”

Shutdown Check

Task/Initiation Cue PF PNF

Aircraft parked on ramp. Call, “Shutdown check.” Complete checklist. Call, “Shutdown check complete.”

Post-flight Check (Pilot)

If a post-flight inspection will not be accomplished by Department maintenance personnel after the completion of the last flight of the day, the Trip Captain, or his/her designee, shall conduct a walk-around check of the aircraft, noting any oil or fuel leaks, abnormal wear or damage to the aircraft. Any discrepancies found during this walk-around are to be listed in the Aircraft Maintenance Log. The Trip Captain will notify Maintenance if there is any question as to the airworthiness status of the aircraft.

Flight Crew Debriefings

In order to continuously evaluate and improve Global Airlines flight operations procedures and enhance interpersonal skills, crewmembers should conduct post-flight debriefings after each flight. The debriefings should include all crewmembers of the flight, as practical, and be discussed from the self-discovery perspective.

Standardization Flights (Pilots)

Standardization flights will be conducted by Department Standardization Pilots in order to provide a method to ensure that the Program is being followed in day-to-day operations and to constantly evaluate the program. The Standardization Pilot shall use a Standardization Flight Worksheet as an evaluation guide. Each Department pilot will receive at least one standardization flight at intervals of approximately six months. These intervals shall not exceed eight months. If the pilot is qualified, current, and assigned to more than one type aircraft, the six month standardization flight will alternate between types. The minimum number of standardization flights per 12 month period, per aircraft, shall be one.

Standardization Flights (Flight Attendant)

Flight attendant standardization flights will be conducted by the Lead Flight Attendant, or a person designated by the Operations Director, in order to provide a method to ensure that Department policies and procedures are being complied with. At a minimum, each flight attendant will receive one standardization flight every twelve months. Any performance area observed to be unsatisfactory during a standardization flight will be discussed with the crewmember during post-flight debriefing unless, in the opinion of the evaluator, the deficiency directly affects the operational safety of the flight. If this is deemed to be the case, the evaluator will advise the crewmember of the deficiency immediately upon discovery.

International Procedures

Regulatory Compliance on International Flights

When conducting international flights, pilots of Company aircraft must adhere to the US Federal Aviation Regulations, ICAO rules, and host nation regulations in which they enter airspace or land in. Flight crews must be familiar with and comply with relevant laws, regulations, and procedures of the host nation where conducting operations. Where differences exist between the US Federal Aviation Regulations, ICAO rules, and foreign regulations, the most restrictive of these regulations will apply. Flight regulations for oceanic operations and special use airspace, including flights in MNPS and RVSM airspace, can be found specifically in Annex 2, ICAO Rules of the Air and Advisory Circular AC 91-70. If a deviation in an emergency situation violates local regulations or procedures, the PIC will notify the appropriate local officials without delay. If required by the state where the incident occurs, the PIC shall submit a detailed written report on any such violations to the appropriate authority in that state.

Crew Qualifications and Training

All flight crew members who fly international flights shall attend an International Procedures course approved by the Global Airlines Operations Director prior to their first international flight. For a flight crewmember to be considered qualified for international operations, that flight crewmember must be knowledgeable of ICAO operational rules and regulations, ICAO measurement standard, use of oceanic flight planning charts, and applicable sources and contents of international flight publications. Additional qualifications are further detailed in the Global Airlines SOP/Policies and Procedures manual.

Trip Planning

All international trip preparation is the responsibility of the Trip Captain. The Trip Captain shall assign flight crewmembers planning duties as appropriate. The Trip Captain shall keep all crewmembers informed of the status of the flight planning process. The use of outside planning and weather agencies will be used at the Trip Captain’s discretion.

Permits and Entry Requirements

When operating Global Airlines aircraft across international borders or in international airspace, the Trip Captain will insure that the crew and passengers are in full compliance with each country’s passport, visa, aircraft entry, and health requirements prior to entry. Confirmation of overflight or of landing must be obtained in writing prior to the planned flight.

International Navigational Charts

Prior to departure on an international flight, the Trip Captain will ensure that current coverage of all required navigation charts, including SIDs, en route, STARs, terminal and high and low altitude charts are on the aircraft. The International Flight Information Manual and the FAA International Notices to Airmen will be available prior to flight.

Trip Briefing

The Trip Captain shall have a preflight briefing with all flight crewmembers prior to all domestic and international flights.

Communication Strategy

Communication is the number one priority of Global Air. Without effective communication, Global Air will not make it. With that said, Global Air’s communication strategy will be as follows:

· Virtual communication, utilizing a centralized dashboard;

· Virtual File Exchange, to exchange important documents; and

· Phone meetings, when clarity is questionable.

As Global Air strives to keep the competitive edge within the airline industry, information gathering and communication technologies are important because these concepts will help Global Air with eventually facilitating globalization (Ramon-Rodiguez, Moreno-Izquierdo, & Perles-Ribes, 2011). New technology has transformed over the years, which allows Global Air to communicate with potential customers, which forms a stronger and profitable relationship (Ramon-Rodiguez, Moreno-Izquierdo, & Perles-Ribes, 2011).

Effective communication outside of Global Air will also form alliances between airlines, which will eventually reduce costs, minimize capital requirements and improve Global Air’s image (Ramon-Rodiguez, Moreno-Izquierdo, & Perles-Ribes, 2011). Effective communication will also bring a whole new avenue to Global Air, such as having a mutual agreement with other airports, this will bring low-cost carriers, which will decrease Global Air’s expenditures, which is always a plus.

Summary

Global Air is here to stay. Air travel has always been a profitable business (Franke & Florian 2011). The dynamics of the recession and economic crisis, there is a large gap between being successful and less successful, Global Airlines is going to fill that gap. Global Airlines will be improving our technology within our aircraft and making each of the aircraft within its inventory the most comfortable and safest place any customer would like to be while in transit. As you are able to see from our SWAT analysis, PESTEL Analysis, Porters Five Forces Model, Global Air means business! Our teams within Global Airlines are partners of the business. Global Airlines will leave a lasting impression with any customer that flies with us!

References

Franke, M. & Florian, J. (2011). What comes next after recession?-Airline industry scenarios and potential end games. Journal of Air Transport Management. Vol 17, Issue 1, January 2011, P 19-26. Retrieved from: http://www.sciencedirect.com.library.capella.edu/science/article/pii/S0969699710000918

http://www.airweb.faa.gov

https://www.nbaa.org/

http://www.faa.gov/documentLibrary/media/Advisory_Circular/AC120-71A.pdf

http://www.faa.gov/pilots/training/airman_education/media/ac%2061-107a.pdf

Ramon-Rodrigues, A., Moreno-izquierdo, L., & Perles-Ribes, J., (2011). Growth and Internaitonalisation strategies in the airline industry. Journal of Air Transport Management Vol 17, Issue 2, March 2011, Pages 110-115. Retrieved from: http://www.sciencedirect.com.library.capella.edu/science/article/pii/S0969699710001080

Appendix A

STANDARD OPERATING PROCEDURES

The following listing is a comprehensive, effective SOP’s for pilot and crew trainings:

- Captain's authority

- Use of automation

The operator's automation philosophy

Specific guidance in selection of appropriate levels of automation Autopilot/flight

Director mode control inputs

Flight management systems inputs

- Checklist philosophy

Policies and procedures

(Who calls for; who reads; who does)

Checklist interruptions

Checklist ambiguity

Checklist couplings

Checklist training

Format and terminology

Type of checklist

Challenge-Do-Verify

Do-Verify

Walk-around

- Checklists

Safety check-power on

Originating/receiving

Before start

After start

Before taxi

Before take-off

After take-off

Climb check

Cruise check

Preliminary landing

Landing

After landing

Parking and securing

Emergency procedures

Non-normal/abnormal procedures

- Communications

Who handles radio

Primary language used

i

ATC

On the flight deck

Keeping both pilots in the loop

Company radio procedures

Flight deck/cabin signals

Cabin/flight deck signals

- Briefings

CFIT risk considered (refer AIC 01/2004 dated 19 Feb 2004)

Special airport qualification considered

Temperature corrections considered

Before takeoff

Descent/approach/missed approach

- Flight deck access

On ground/in flight

Jump seat

Access signals, keys

- Flight deck discipline

Sterile cockpit

Maintaining outside vigilance

Transfer of control

Additional duties

Flight kits

Headsets/speakers

Boom mikes/handsets

Maps/approach charts

Meals

- Altitude awareness

Altimeter settings

Transition level

Callouts (verification of)

Minimum safe altitudes (MSA)

Temperature corrections

- Report times

Check in/show up

On flight deck

Checklist accomplishment

- Maintenance procedures

Logbooks/previous write-ups

Open write-ups

Notification to maintenance of write-ups

Minimum equipment list (MEL)

Where it is accessible

Configuration Deviation List (CDL)

Crew coordination in ground de-icing

- Flight plans/dispatch procedures

VFR/IFR

Icing considerations

Fuel loads

Weather package

Where weather package is available

Departure procedure climb gradient analysis

- Boarding passengers/cargo

Carry-on baggage

Exit row seating

ii

Hazardous materials

Prisoners/escorted persons

Guns onboard

Count/load

- Pushback/power back

- Taxiing

Single engine

All engines

On ice or snow

Prevention of runway incursion

- Crew Resource Management (CRM)

Crew briefings

Cabin Crew

Flight crew

- Weight & balance/cargo loading

Who is responsible for loading cargo, and securing cargo

Who prepares the weight & balance data form; who checks it

Copy to crew

- Flight deck/cabin crew interchange

Boarding

Ready to taxi

Cabin emergency

Prior to take-off/landing

- Take-off

Who conducts it

Briefing, IFR/VFR

Reduced power procedures

Tailwind, runway clutter

Intersections/land and hold short procedures (LAHSO)

Noise abatement procedures

Special departure procedures

Flight directors

Use of: Yes/No

Callouts

Clean up

Loss of engine

Reject takeoff

After V1

Actions/callouts

Flap settings

Normal

Nonstandard and reason for

Crosswind

Close-in turns

- Climb

Speeds

Configuration

Confirm compliance with climb gradient required in departure procedure

Confirm appropriate cold temperature corrections made

- Cruise altitude selection

Speeds/weights

- Position reports

ATC

Company

iii

- Emergency descents

- Holding procedures

Procedures for diversion to alternate

- Normal descents

Planning beginning of descent point

Risk assessment and briefing (see example, paragraph 4.b in this AC)

Speed brakes: Yes/No

Flaps/gear use

Icing considerations

Convective activity

- Ground proximity warning system (GPWS or TAWs)

Escape maneuver

- TCAS

- Winds shear

Avoidance of likely encounters

Recognition

Recovery / escape maneuver

- Approach philosophy

Precision approaches preferred

Stabilized approaches standard

Used of navigation aids

Flight management system (FMS) autopilot

Use, and when to discontinue use

Approach gates

Limits for stabilized approaches

Use of radio altimeter

Go-arounds: Plan to go around: change plan to land when visual, if

stabilized

- Individual approach type

All types, including engine-out

- For each type of approach

When stabilized approach gates are missed

Procedure

Callouts

Clean-up profile

- Landing

Actions and callouts

Configuration for conditions

Visual approach

Low visibility

Contaminated runway

Close-in turns

Crosswind

Rejected

Transfer of control after first officer landing