Answer To: Case Study Project A 4000 – 6000 words group report (exclusive of annexes) involving an analysis and...
Tanmoy answered on Jan 03 2022
Case Study Project A – KLM & Easy Jet Airlines
1.1 Introduction to Airline Industry
Aircraft Industry’s contribution towards the Netherlands economy is significant. The country’s welfare as well as the economy is associated with the aviation industry of Netherlands. Netherlands is a small country located in the Northwest Europe with a population of 1.74 crores. Its through its robust international positioning and highly skilled expertise in the aircraft industry are able to deliver products for every aircraft which are flying in the country. In the 20th century there the Dutch aircraft builders were able to construct more than 1600 airliners and made KLM as the national carrier which was brought to the operation since 1919. It’s the Schiphol Airport from where more than 50 million passengers fly to more than 317 destinations worldwide. Further, the airports in Netherlands are highly sophisticated and holds leading position throughout Europe. They are experts in the field of logistics and innovation along with aircraft maintenance. Further, the aviation industry in Netherland’s expertise in manufacturing of F35 fighter jets and other military parts which are exported globally (NAG; 2022).
Further, the aviation industry in Netherlands employs more than 306000 people in the industry. The aviation industry contributes approximately €22 billion to the Netherland economy which is around 3.2% of the entire GDP of the country. By 2037, it is expected that the Netherlands aviation industry is likely to employ more than 40000 jobs and is estimated to contribute another €8 billion to the GDP of the country. On the contrary, another research suggests that if there is a slump due to weakened competitiveness in the Dutch industry then there are chances of 84000 job losses in Netherlands. This is a worrying factor for the aviation sector. The aviation industry in Netherlands plans to reduce the amount of carbon emissions by almost half of 2005 by the year 2050. Further, emphasizing on this issue there has been significant progress made by the aviation industry in Netherlands for reduction of carbon dioxide emissions per passenger to nearly half since 1990. Further, there is necessity of huge investment for meeting the goals of 2050 which emphasizes on aviation fuels which are sustainable in nature along with hybrid electric technologies. For this the Netherland government in associating with the aviation industry for encouraging investments for demonstrating climatic changes and open new economic prospects for the country. Netherlands is looking for restoration of passenger carbon taxes again. These taxes were being charged earlier by the aviation authorities by were found to lower the passenger footfalls for the airliners and didn’t have much impact on the climatic changes. Hence, it’s the strategic policies which needs to be implemented for supporting the sustainable aviation fuels which can also help to reduce the carbon emission faster without hampering the economic air travellers in Netherlands (IATA; 2019).
1.2 KLM
KLM airlines is the national and flag carrier airline of Netherlands. It is headquartered in Amstelveen and operates mostly from Amsterdam Airport, Schiphol. Further, KLM operates through its collaboration with Air France and Sky Team airlines. It is one of the oldest airlines still operating globally since 1919. There are more than 35488 employees working in KLM as on 2020. Further, it operates through scheduled passenger and cargo services in more than 145 destinations worldwide. The marketing slogan of KLM airlines is ‘Journey of Inspiration’ and displays their presence through various social media platforms and blogs. These platforms allow the customers to make feedback and enquiries through these channels. KLM provides a low fare ticket with various offers and discount facilities available for the customers. Further, they focus on convenient schedules for the customers, high quality services and punctual arrival and departure which are the consistent hallmark of KLM airlines.
1.3 Easy JET
Easy Jet is one of the oldest and low-cost airliners operating in Europe. It is more than 25 years old airlines based in Meyrin, Switzerland. It operates with its scheduled flights from the Geneva Airport and European airport of Basel, Mulhouse and Freiburg. The airline was founded in the year 1988 by TEA group as TEA Switzerland. The company travels to more than 80 destinations worldwide and there are around 31 fleets of Easy Jet which carries the business operations. Presently, there are 51% private investors and 49% holding with Easy Jet Plc. There are more than thousand routes from where the airlines flies and this has made the airlines profitable. But compared to KLM airlines, Easy Jet is a no-frill airline with no additional benefits other than operating as a passenger and logistics carrier. Also, the seats are much smaller and less comfortable in comparison to KLM airliner. But Easy Jet as a whole delivers a consistently friendly, reliable and hassle free travelling through its air carriers. It offers its lowest cost flights to various countries starting with a minimum £13.99 for a tour to London Gatwick travel. Further, the price for travelling to Geneva is £16.99 and Spain for a price of £14.99 (Easy Jet; 2022).
2. Theoretical Background
Both the airlines KLM and Easy Jet focuses on delivering a sustainable zero emission carrier which will be environmentally friendly and cost efficient. The ultimate aim is to use the aviation fuel in the most efficient and sustainable manner which will emit low carbon. Since 2008 KLM was able to compensate the carbon footprints and was able to reduce the carbon emission to 2,00,000 tonnes through its program KLM CO2Zero. As of 2018, there were approximately 88,000 customers who were able to travel with CO2 neutral facilities due to the KLM CO2Zero program. There were more than 50% increase in the number of passengers who were compensated in 2018 compared to the previous year. Emphasizing on the reforestation program KLM invested in the ‘CO2OL Tropical Mix’ in Panama. Through this initiative the pastures will be transformed into new forests which consists of new species of trees and developing a well-integrated ecosystem. Further, it helps will help in protecting the biodiversity, restoring the ecosystem which will help in sustainable wood and cocoa production. It will also help in generation of new employment opportunities for skilled labour, delivering them knowledge and training in development of sustainable and ecological balance as well as alternatives. This will ensure that the local workers will improve the standard of living as well as hone their skills and knowledge in a steady manner. Further, KLM invests in project which are certified as per the Gold Standards with respect to global goals (KLM; 2018).
Easy Jet airlines have also committed themselves for the lowering of carbon emissions through research and development along with implementation of technology which will enable to reduce the intensity of carbon. This can be done by lowering the weights from our aircrafts as well as taxing on the engines. Further, the project is a medium and long term which will be generally focused towards developing a zero-emission aviation technology. Since 2000, Easy Jet was able to reduce the carbon emission per passenger per kilometre by more than ⅓ times and aims to reduce it further. Further, Easy Jet have introduced Airbus A320 neo flights which is sustainable and fuel efficient along with largest, cost-efficient and noiseless aircrafts. Yet, Easy Jet have a credibility of filling each of its flights fully with a load factor recorded at 92.9% as of 2019. Also, Easy Jet carries its passenger from point-to-point rather than transporting them to the hub airport and then to the actual destination. This helps in reducing the cost of fuel through its efficient utilization. Further, Easy Jet expertise in the usage of its engine while landing on the ground. They land on the ground by using only one engine through the usage of climb, descent and landing techniques for lowering the carbon emissions. Finally, Easy Jet have introduced a lightweight seat for the passenger which is known as the Recaro passenger seats and usage of electronic devices instead of the paper documents. This helps in lowering the weights of the aircrafts as well as reduces the fuel consumption (Easy Jet; 2022).
2.1 Strategy of the Airline in business operation
The strategy used recently by the airline industry in the business operations are with respect to providing a safe aviation for the customers. Further, its also aims for modernizing the technology through implementation of a safety management system for all the airline companies....