Four Ways to Rise Above the Ash Clouds – What the Airline Industry Can Improve On

15th April 2010 About ten million passengers would never forget this date. They were stuck for a whole week in airports around the world! The volcanic ash from the second eruption of Iceland’s Eyjafjallajokull Volcano was thrown several kilometers into the air.

Chile is a new threat, and we have been watching it for a little over a month now in June 2011. Now in its second week, the eruption of the Puyehue volcanic peak, located high in the Andes mountains, has been ongoing. Ash has disrupted flights once again.

Challenges faced during previous Ash Storm

In 2010, it was believed that ash clouds could destroy engines. Aerial flights were therefore banned. Flight delays were also caused by the lack of reliable information about what was considered high-risk or low-risk. Over ten millions passengers and cargo were left stranded while the situation was clarified. The airline industry was estimated to have lost 2.2 billion dollars due to this traffic stoppage. The sudden closure of the airspace in many parts of Europe created a crisis for all flights, passengers and goods traveling to and from Europe.

In 2010, IATA Director general and CEO Giovanni Bisignani reportedly stated in The Moodie Report that the ash crisis had slowed down the global recovery for all carriers. The air traffic fell by 7% compared to pre-crisis figures.

In 2011, the delays are affecting air travel to and from North and South America as well as New Zealand and Australia. It’s too early to tell if this will be another airline crisis.

Responses for Event

The Chinese word for crisis is “wei Ji”. In popular business and political culture, these two characters were often portrayed as a moment in time that was both dangerous and ripe for opportunity. This theory is controversial. It is possible, however, that when an appropriate response to a particular event is applied, the outcome will be better than expected.

Was the global transport sector able to find silver linings in these looming clouds of ash? Could it prepare for future events? According to me, there are 4 areas where aviation managements and government could focus.

1. Contingencies Plans. The industry can be better prepared for such situations by developing robust contingencies and action plans.

Congratulations to the Governments, Airport Managements and Airlines who have taken appropriate measures and found solutions during this crisis. Normal planning should include clear and concise contingency plans. They must be periodically tested for their effectiveness. When a crisis happens, the plan can be implemented. The plan would be implemented by all parties.

These plans may involve different transport industries. The rail, coach and shipping industries are involved. They could unite to solve unforeseen circumstances. Private airlines that operate out of smaller airports and have less stringent rules can also help. Ferry services could be increased by maritime operators.

These efforts must be made in concert.

2. Reasonable prices . The service industry must maintain reasonable prices to help stranded travelers.

There are many opportunities for price increases when passengers are in limbo. After all, passengers are required to use services and products. To create value for passengers, reasonable prices must be maintained.

By building a good relationship with their aviation and concessionaires, the commercial teams in airports can also regularly engage them. Then, they can be reminded to not take advantage of the situation and fleece the passengers.

As hotel rooms began to fill, prices for food and beverages and accommodation also went up. In 2010, tour operators and agents in Dubai went to great lengths to assist their passengers. They created a pleasant situation. Hans Haensel is a senior divisional vice president at Emirates Holidays. He said that his team had contacted each client individually to extend their accommodation. He helped them to find cheaper accommodations. The hotel partners also provided complimentary rooms.

In such circumstances, a positive image could be created for the industry if prices remain reasonable.

3. Legislative flexibility . In 2010, airlines demanded more flexibility in legislation.

In the past, European Union regulations allowed passengers who flew on European carriers into or out of Europe to receive a refund for their flight or be rerouted. In 2010, European airlines were grounded due to safety concerns raised by the respective governments. Michael O’Leary, the boss of Ryanair, reaffirmed his position to lobby for changes. He described these rules as being “grossly unjust”.

In May 2010, this particular EU legislation was revised to better align it with natural disasters like the ashstorm. The new rules were established to allow planes to fly over areas where volcanic ash is twice as dense.

Airlines can now focus on their strengths with the help of new flexible rules. The airlines can decide for themselves whether they want to fly around or through the ash. The government aviation rules do not apply to them.

4. Hospitality and Services Linkages. Links between different hospitality and service linkages could also be improved. This is a great opportunity to improve branding and connectivity between services and the hospitality industry.

Different ways were used by airports and airlines to reduce the increasing number of passengers at the airport. Easyjet stated that the flight ban cost them 50m. It paid for more than 15,000 hotel rooms. This incident has a positive side. Easyjet’s hospitable policies can be viewed as a 50m advertising investment.

The airport provided sleeping bags, blankets and phone cards for passengers to call their homes. Showers were also provided for free. Changi Airport Group offers free city tours. The aim was to reduce the stress of passengers.

The governments of different countries can also work together to resolve future problems. Johor Bahru, the capital of Johor is located in southern Malaysia. In 2010, the hotels in Johor Bahru were full of stranded Singaporean flight passengers. It was due to the fact that tourists and travel agencies, who were unable to find rooms in Singapore managed enter Johor.

If the tourism ministers of both governments were to come up with a coordinated effort to address such issues, passengers could then be diverted to other locations with accommodations and services available. Tourism ministries in large countries can also implement and execute joint initiatives with their respective stakeholders. Airline passengers can therefore find affordable and available accommodation in the locality.

Summary: Aviation managements and government are strongly encouraged, in times of crisis, to improve their plans. It is important to keep looking for opportunities. Airport management and its partners, such as airlines, concessionaires, and other operators, must work together with local governments.

Together, they can create effective contingency planning, maintain reasonable pricing, implement flexible legislation, and reinforce robust hospitality and service links. This would result in a higher level of satisfaction and benefits for passengers.