Aviation industry needs professional management
What you need to know:
According to many recent research carried out by Air transport Action group (ATAG), the global aviation market outlook had been quite positive over a couple of years earlier and it could support 65.5 million jobs and is responsible for a mammoth $.2.7 million in economic activity worldwide
The Aviation industry is a world in itself, encompassing a massive work force and contributing a significant percentage of the global economy. The sector was set for major growth, challenges notwithstanding, until the pandemic hit,post which it plummeted to a considerable extent. Yet it is fair to state that despite the economic impact of the covid -19 on the the airline industry, it has been on the road to recovery and may well get back to the mainstream in a few years .
According to many recent research carried out by Air transport Action group (ATAG), the global aviation market outlook had been quite positive over a couple of years earlier and it could support 65.5 million jobs and is responsible for a mammoth $.2.7 million in economic activity worldwide. Additionally, the research claimed that a free-trade approach will help further the growth in air transport and it will come to record $5.7 trillion in economic activities by 2036,while supporting around 97.8 million jobs.
From the above projections for the industry and in view of the challenges that Uganda ‘s economy is facing especially un employment of the youth ,inadequate planning for markets of our agricultural products as well as the need to aggressively market Uganda as a first choice tourism destination, Uganda airlines could provide critical solutions for this economy.
It should ,however, be noted that management of an airline is a service oriented and requires professionalism at all levels since it survives on creating experiences that deliver the required reputation in the global market where it operates. This reputation starts from the home airport and the country at large. This reputation has worked well for Emirates, KLM British Airways, Qatar Airways, Singapore Airlines etc. among others. Many of these Airlines have managed their reputations by employing the right people for the right jobs through meritocracy recruitment systems.
In the recent years the Aviation industry is faced with exogenous factors that require professional management across all levels in order to ensure sustainability of maintaining these economic infrastructures as any financial leakage will lead to a huge cumulative loss.
Some of the key factors affecting the industry are as below;
Fuel efficiency as Aviation fuel costs have remained one of the major economic factors affecting the airline industry. In the last three decades ,fuel prices have had an adverse direct impact on the financial portfolio of many airlines and their profitability margins plummeting to 1-3% This requires expertise and prudence in airline financial management to ensure sustainability of operations.
The state of the global economy directly affects the airline market as it determines the propensity to fly across markets. The covid -19 pandemic had a disastrous effect on the economy and the propensity to travel dropped. The impact also negatively affected tourism which supports travel. With our Airline at a nascent stage for air route development, a lot of experience and exposure is required to develop new routes with good empirical data projections as this is one area where airlines lose money.
The third factor is ever demanding passenger comfort and experience since the industry is service- driven and its success depends enormously on how passengers are satisfied on any flight. It should be noted that no passenger is alike and at some stage of the flight supply chain ,a section of them are always dissatisfied because of issues like delays and long lines especially at home airport ,menu, leg room, blankets ,baggage claims, customer care promotional packages etc.
There is therefore need to always keep the airline services seamless throughout flights, excellent security and less/no hassles if the service is to be rated well by passengers
The fourth factor in the need for the Airline to continuously invest in its infrastructure starting from Airport lounges, shopping, communication gadgets, ground handling etc to remain ahead of the competition. Again these investments require professionalism as they involve examining a number of industry options.
The fifth challenge is global congestion of Airport terminals, Air space which have increased the turn round cost of flights and inconvenience to travellers .In many cases these delays and incidents have affected reputations of airlines yet it is not directly caused by individual airlines. This requires good levels of professionalism and exposure for airline managers to navigate.
The sixth challenge is continuous investment in modern technology in air ticket booking software, communication, in-flight entertainment, security systems etc. Terrorism and climate changes are other key challenges which continue to affect the sector with very adverse effects. Each airline need to always manage the risks that could arise out of these challenges.
It is therefore imperative to conclude that as Uganda airline investment needs to be run by professionals at all levels of the Board, Management and Staff if the economic benefits are to be realised in view of the challenges facing the industry. It should be noted that Uganda Airlines has space in the industry give the location of the home Airport, tourism potential of Uganda as well the fresh produce potential of this country.
Prof.Tom Davis Wasswa,PhD,FCIM
