Unit 4 - interrelationships with in the aviation industry

Unit 4 - interrelationships with in the aviation industry

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Unit 4 - Task 1

An annotated diagram of the structure of the UK aviation industry (P1) 2Identify the key relationships within the UK aviation industry. You will need to look at the key areas and their sub components. (P2) Evaluate the most important relationships within the industry that exist at present. This should include examples of relationships of legal, commercial, mutual benefit and combinations. (M1)

The structure of the UK aviation industry

The airlines UK is the trade body for the all registered airlines within the UK. This is one example of the UK avaition trade body They work with governments, regulators and legislators to promote the interests of UK airlines, and with organisations across the sector to encourage long-term and sustainable growth in aviation

CAA is the UK avaition regulator for the UK avaition industry. Its role is to ensure safety standards are met, ensure customers are getting value for money, trying to reduce co2 emmisions are reduced and ensure security risks are effiectivley dealt with

There are over 40 airports in the UK. Some of the being Heathrow, Gatwick and London city Airport. These airports have different purposes to the aviation industry as some work as feeder airport, some work as hub airports and some work as point to point.

General aviation is defined by the International Civil Aviation Organization as all civil aviation aircraft operations with the exception of commercial air transport or aerial work, which is defined as specialized aviation services for other purposes

Ancillary Organizations are independent bodies whose operations are separate from those of SEM but have an overlapping membership with SEM and a history of meeting during the SEM annual conference. Ancillary organisations provide services that will help airlines and airports operate in a safe and clean manner

Airline operators are categorized under four groups; namely airline, air taxi, general aviation and balloon operators. The operators, which satisfy the requirements prescribed by the regulations, carry out and perform transportation activities under the air operator's certificate granted by our Directorate General

Aircraft manufacturers are very important because without them there would be no such thing as aviation. in the UK majority of commercial airlines planes are using manufacturers such as Embraer, Boeing and Airbus.

Key relationships in the Uk avaition industry

Organisations also work together for mutual benefit. The obvious example is trade associations, where organisations primarily decide to work together to promote their interests to government or policy makers. Organisations can have all these inter-relationships and could quite easily have all three with the same organisation.Going into further detail you can talk about the relationships in different scenarios such as how airlines and Airports share relationships in order for where the both in ways benefits. Airports share commercial relationships with ground handling services. It is also a legal requirements for a ground crew engineer to check up on the aircraft.

There are 3 basic types of relationships, within the aviation industry. These are Legal relationships, Commercial relationships and mutual benefit relationships.

Legal relationship have the force of law to bind the parties together should it be needed, as non-compliance can have serious consequences for the organisation if it does not fulfil its legal obligations to the required standards. Commercial relationships can take a number of forms, which can be complex and diverse. A terminal retail outlet might have a concession agreement or a tenancy agreement with the airport; one has a rent based on turnover the other a rental agreement based on shop area. Whichever pathway is chosen, the commercial agreement will involve a contract based on financial payments and be backed up by the possibility of legal redress. This is enforceable through common law.

Most important relationships within the industry that exist at present (M1)

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Unit 4 - Task 2

An analysis of the methods used by organisations to work together for mutual benefit. You will need to give specific examples and give a generalised analysis. (P7) Look at the advantages of organisations working together for mutual benefit. Use specific examples relating to airlines and airports. (P8) A discussion around how organisations have worked together to influence decisions. You should provide two examples and explain them in detail. (M3)

Methods used by organisations to work together for mutual benefit.

organisations use different methods in order to work together for mutual benefit. 3 of these ways are; - Trade Associations - Airport users committees- Airline Alliances Trade Associations; Working on behalf of these members, the AOA’s mission is to influence governments, regulators and opinion formers at national and international level, in order to secure the policy outcomes that will deliver its vision. This includes playing a leading role in security, economic development, operations and safety and environmental sustainability issues.

Airport users committee;The role of the Consultative Committee is to help provide a forum for discussing airport-related issues with all those who may be affected. Typically, the Consultative Committee will include representatives of businesses that operate from the airport, passengers, and local residents. Airline Alliances; Airline alliances are partnerships between or among airlines. Within these collaborations, airlines can share resources, pick up or extend partner routes and even offer the ability to earn and redeem miles through each others' rewards programs

Advantages of organisations working together for mutual benefit.

Elaborating on other Advantage, which is increasing route network. Increasing your organisation route network is very important as it gives more opportunity to link with other organisations through organisations you are personally connected with. It shows the importance of having a good connection with other organisation especially if you would want to expand your own organisation. Reduce charges can help within the company especially when coming to spend money. For example if you have a good relationship mutual benefit connection with an airline and they personally know your a big customer they would defiennetly ensure you are getting a good price on all your purchases

There are multiple advantages when organisations work together for mutual benefit. Some being; - Influencing government policy - Remove or improve industry regulation - Improve facilities and services - Reduce charges - Standardise and agree of operating procedures - Increase route network - Improve safety and security Improving things such as safety and security is not only an advantage within the company. It is important to keep employees and customer safe and secure and its gives you an advantage when working with other organisations as you show that as your own company you are safe and secure suggesting your a good organisation to work with. it is also a benefit for employees that they are working for organisations that are safe and secure

How organisations have workedtogether to influence decisions

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Unit 4 - Task 3

A summary of the key regulatory relationships. You will need to cover all organisations listed in the unit content. (P3) An explanation of the impact of legal operational obligations. You only need to explain from an airline and airport point of view. (P4) A review of the key commercial relationships. You should give 10 examples. (P5) A discussion around the scope of commercial agreements. You should use 10 examples and the likely penalties for these should be included. (P6) An explanation regarding how legal obligations impact on regulatory and commercial inter-relationships. You will need to explain the difference between regulatory and commercial relationships as well. (M2) An analysis of the consequences of not complying with security regulations. You will need to analyse the relationship between the DfT and an airport. You should comment on cost, the inconvenience security regulations cause, and whether or not the current sanctions are appropriate. Therefore, you will need to outline the security regulations provided by the DfT.

Summary of the key regulatory relationships.

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Over time, a relationship forms between supervisory authorities and companies that manage risky activities. This relationship makes an important contribution to safety, and helps to ensure the effective management of industrial risks.