History-In April 1940, Air New-Zealand found whilst
it’s the forerunner airline, belowthe Tasman sea agreement and after that
Tasman Empire airlines confined (TEAL) become included. In October 1953 New
Zealand and Australian Governments each mutually takeovers TEAL, and in April
1961 New Zealand authorities surpasses the whole possession solely. On the
other side New Zealand government established national airlines corporation in
1947 for domestic airway transportation and then after merging both domestic
and worldwide airways transportation gave birth to Air New Zealand. The company
serves more than 15 million of passenger in a 12 month with their global
community together with shipment transportation.
“History – About Air
New Zealand | Air New Zealand
“History – About Air New Zealand | AirNew Zealand.” OFFICIAL. AIRNEW-ZEALAND
Air New Zealand is the one of the company
which is more cautious to their qualities and services,either related to customer,
employees or environment. Some of their quality relates policies and their
procedure for implementing those strategies are as discussed below: –
(Carbon Emission): -The one of the major
target of air New Zealand is to become the emission free in the upcoming years
that they will reduce 50% of carbon emission till 2050. The average airline carbon reduction measures identified
by IATA are 5% for all the airplanes but on other hand, the savings identified
for Air New Zealand were much lower by 1.46% (approximately 37,000
tonnes of carbon emissions per annum), which indicates that they are applying
right strategies towards world leading fuel efficiency improvements.
Ø Carbon Reduction & Management
Strategies | Air New Zealand. (n.d.). Retrieved December 12, 2017, from
Procedure they adapted-
-They began focusing on the
development of environmentally sustainable bio-
gasoline deliver chains using a various kind of feed-shares -They
start promoting ground services like usage of electrical transportation system in
preference to carbon-emission car and the use of energy efficient strategies at
the airport and offices.-Recycling the dresses and waste material, Not only
this but they start using paper coffee cups so that it will be recycled and can
be put into use again.
(add on-PDSA/PDCA and Phil
Crosby Zero Defects Policy)
the benefits of the customer, Air New Zealand introduced new policy named by
KORU club under which they offer membership to clients and in which the client
have to pay the certain amount of money annually or 5-yearly (depends on the
status of membership) after registeringwith this clients can get various benefits
-They can access airlines lounges,
-Enjoy the services like priority check in and boarding,
-Can get additional baggage privileges like complimentary 1 additional luggage.
– can have access to reserved flyer seating facility.(“Koru programme –
Spending Airpoints DollarsTM – AirpointsTM | Air New
v Notification services: -Air New Zealand utilizes its customer notification policy
upon delays. To avoid delays, the airline ensures information is conveyed to
its customers within the shortest time possible. The company has an efficient
team that ensures information is available in cases of delay caused by
unavoidable weather, cancellations, or diversions, and safety or operational
reasons. The airline ensures that any flight that delayed, cancelled or
rescheduled on the travel day is compensated with flight rebook with minimal
problem. On the other side, the industry also ensures that passenger’s luggage
is reach their destination on time and in the same condition as received. The
company handles luggage delays by returning them to their respective owner
within 24 hours of getting missing luggage notification with minimal expenses
imposed to the owner.
Air New Zealand introduced air points dollars under which they provide the loyalty
points to their regular travellers, which they can carry forward for four years
after the issuing date. The value for One air point dollar is equal to one New
Zealand dollar and are redeemable or transferable to any person at any time. Customer
can have benefit of these point in having travel insurance or booking tickets
and hiring vehicle or for travellingallowance after landing.
3- Innovation: -Air New Zealand
opted a new technique to attract the customer and providing the best quality
services to the customer by introducing a new team member (Sophie) in the form
of digital human being as a soul machine which uses its artificial intelligence
to interact with the customer and provide them the accurate answers to their
enquiries about New Zealand as a best tourist destination and promote their own
product line and services and harness the customer experiences.
CEO of Air New Zealand commented in an event that they are not employing Sophie
on a permanent basis, it was just an experiment which madean innovation about
the experience of being in contact with digital human or soul machines.
to customer: –
is the one of the easiest means for communication.
-Customer can get all information from a single model.
-Fastest way for communication such as having an enquiry and giving feedbacks.
Ø Team, StopPress, and 26 Sep 2017. “Meet Sophie, Air New
Zealand’s Digital ‘Human.’” Idealog, September 26, 2017.
4- SAFETY STANDARDS: –
major strategy that the airline has implemented is an integrated management
system which merged both quality and some features of SMS (safety management
system) thus, creating a basis of the airlines’ method to officially managing
safety. Air New Zealand made more improvements in 2003 by introducing the
International Operational Safety Audit Program (IOSA) which was meant to
encourage the implementation of standard approach and procedures for managing
safety. The airline has since 2004 undertaken IOSA audit every two years. Air
New Zealand has over the years formed a committed safety team that comprises of
a team of both Safety Specialists and Quality Specialists and a Safety Data
5- RISK MANAGMENT:
Another strategy that the industryemploys
is management of risk. The risk of management is acentral management obligation
and cannot be delegated. Entire management team and staff workers are then
responsible for implementing a risk management procedure inside their areas of
control which will directly help in the fulfilment of main objectives. A
process to guarantee risk has been effectively recognized, reflected and is
manageable. Itmust be apparent in each significant decision-makingprocedure.
In 2010, Air New Zealand
installed a coverage assertion that particularly addressed control danger. The
airline has officially diagnosed that threat control structures are significant
and help mangers to cognizance at the futures’ uncertainties and flaws which
enhances the chances of achieving the goals of the business. The airline
ensures that right risk control formation is ready for all non- regular
scheduled flights, aircraft delivery and flight checks. Air New Zealand is
dedicated to very well coping with its risks and assembly its legal, governing
and regulatory obligations at the same time as sustainably running as a
marketable airline. The airline achieves this via putting in risk control into
its cultures and strategies to assist and formulate knowledgeable choices for
the gain of the firm and its shareholders
– The principal purpose of
the airline’s policy is to support a reliable Risk Management procedure
extensive enterprise and to warrant that every risk that could endanger the
achievement of the industry’s objectives is managed to a suitable level.
– Risk Management is an
integral part of Air New Zealand’s procedures and how the Company is a critical
contributor for planned and business organization, decision making and daily
operational activities. All business entity is anticipated to recognize,
evaluate, treat, observer and analyse their management risks as part of the
business consistency. Managers are accountable for understanding, prioritizing
and handling the risks for their region is matter of concern to a reasonably
practicable level and standard to ensure that the objectives of Air New Zealand
-Risk management techniques
and capability assist managers to focus on uncertainties and vulnerabilities
associated with the future thereby improving the likelihood of meeting business
AIR NEWZEALAND. “RISK MANAGMENT
POLICY,” January 26, 2010, 3.
Risk: -A probability
or threat of damage, injury, liability, loss, or any other negative occurrence
that is caused by external or internal vulnerabilities, and that may be avoided
through pre-emptive action.
Read more: http://www.businessdictionary.com/definition/risk.html
Risk is always present in each aspect. Whether
it’s in relation to finance (like capital risk, economy risk, exchange rate
risk and many more), Life safety (some health related mis-happenings may occur
or physical disorder and many more), Food industry (quality of food, delivery
of food, processing of food)
In this case of Air New Zealand risk is categorised into many categories and
explained as under:-
main reason for mechanical fault is the machine failure either by any of the
engine part or any subsidiary parts connecting to the machinery. Every year, many workers became the victims of these
work-related accidents like some of them became serious and some even get fatal
or they get in contract with occupational diseases because they are exposed to
numerous hazards which are posed by the machines they operate and their work
environment. In terms of prevention, adequate actions can be taken initially at
the source, and it is necessary to provide the healthy work environment and
heathy working conditions and personal protective equipment to eliminate the risks
at the source.
Q – How the mechanical fault can be
– By proper intimation system should be introduced
By routine based service and checking of plain.
– By using genuine spare and complimentary parts
In air New Zealand there was the case in 2012 about the pipeline failure in
which the pipeline got punctured by the digger and due to which thousands of
the people suffered a lot and all the operations of the air New Zealand shuts
down with bunch of losses.
was also one of the cases in air New Zealand about the excessive release of
carbon-dioxide from their fan which is a hazard to environment, but after doing
proper workout on fault now air New Zealand became the first airline with least
emersion of carbon dioxide.
Weather directly effects the
operations of the airways. Sometimes due to uncertain weather conditions it is
quite difficult for the plane to run on time or may needed to land in transit
airport due to no visibility and radar may also stop working, this may lead to
inconvience to the passenger. Then airways need to incure some extra cost for
serving their passengers like have to provide accomoation, food and various
amenities, which sometimes does not meet their quality standards.
Moreover, due to uncertain
weather conditions airways can not provide the proper ground and air services
to their passanger
is the prospect of loss resulting from inadequate or failed procedures, systems
or policies. Operaion risk is an event that disrupts business processes like
some policies and decisions are interpretated falsely which may went wrong . The
reason can either be the Employee errors, Systems failures, Fraud or other
criminal activity. Any event that disrupts business processes. For an example: -Any misinformation from the control
base tower would ultimately result to a plane crash without any doubt. Control
towers become the cause of the plash crashes on many instances since they keep
providing the pilot with wrong information, thus the pilot acts upon that
information and this could prove fatal to the safety of both the crew members
and the passengers. Airplane accidents are often foremost events affecting the
public’s general views about aviation safety.
Example of operational risk:
-Risk arising from natural calamities
like earthquakes, disasters and other environmental changes.
– Internal and external fraud.
-Implementation of policies and strategies.
– lack of supervision and rectification of errors.
4:_DEPENDANCY FACTOR RISK :-
cannot hire his own staff for all the services and needs to depend on outsourcing for various services like food and packing,
cleaning, security and many more.
for an example:- Air New Zealand has his offices at various airports in
different countries and it is quite difficult for the management to hire and
handle this much staff. So instead of hiring the employees they do tie-ups with
the other agencies for all these kinds of services and discuss their quality
the other does not meet the quality standards and needs of the agreement. So,
the airline has to suffer from that.
up the Policies and strategies: –
the airports in different countries have their own policies and strategies for every
other airline. So, it is important for airlines to have a smooth relation with
the countries. An airplane has to cross various borders for different countries
and require permission to do so.
For an instance, There was the case of Air New Zealand that their relations
with middle east countries was not smooth and sound and flights from Auckland
to Los angles was stopped for some time because Quatar refused the crossing
permission to New Zealand from their border and have the right to shoot the
aircraft without any prior notice to any of the person.
major risk for the airlines is the security risk.
passenger safety:- To keep the well-being, secrecy and protection of the
traveller is the fundamental rationale of each airline. Security must be given
in every airport (either destination airport or any travel airplane terminal)
and in the plane. For an example: -There is a flight of Air New Zealand to
India. They have their stoppage at Bangkok and they must guarantee the
traveller’s security even at Bangkok airplane terminal and at India’s air
Moreover, now days Criminal methodologies and tactics
increasing day by day. Terrorists use simple to more complex tactics to carry
out attacks. Individuals conceal weapons which can range from knives to rifles
and bombs with an intention to pass through security checks at the port of
entry and their focus is towards the system hacking which hack the internal
software’s and control towers for hijacking the plane. So, it is a need of hour
for covering up this risk.
In addition to it, Individuals can carry or send some
confined/prohibited/illegal products with them or send by means of messengers,
so it might bring forth pirating/give birth to smuggling which is called cargo
service. Thus, it must adapt up to security system at every other airport.
which air New Zealand employs for managing operational risks are as follow: –
company has undertaken initiatives to ensure maximum security for its
passengers and stuff at the port. The industry is taking all security measures
such as increased surveillance of passenger behaviour, screening passengers
flying to and from other countries as part of new the international security
flights operating within the airport undergo security screening procedures
before departures. The airline has established CCTV cameras for monitoring and
recording abilities at designated places where it conducts its operations. CCTV
cameras are mainly located at passenger screening points and passenger bag
search parts for both carry-on and checked-in international baggage.Moreover, developing their systems in according to the capacity to
eliminate the weather and climatic risks like introducing the real-time wind
and weather information into ground and airborne systems to match aircraft and
ground based trajectories. Developed the system about timely communications for
weather information timely and efficiently by minimizing the need for human
2-Coping up with mechanical faults:-
Air New Zealand has set up a separate team whose role is
to provide 24 hours mechanical assistance to plane and for ground machinery.
The main aim is to avoid the inconvenience regarding every Air New Zealand
flight that take off from New Zealandmust pass from the pre-test before
departing. Proper checking is done for the air craft under this process. Each
part of air craft must be passed through various process and then only the
plane gets ready to use.
POTENTIAL FAILURE MODE
POTENTIAL FAILURE EFFECT
RPN RISK CONTROL
OR ACTION NEEDED
BREAK DOWN OF MACHINE PART
LIFE RISK,SERIOUS INJURY OR DELAY OF FLIGHT.
DELAYED IN REGULAR MAINTAINACE OR USAGE
OF UNAUTHORISED PARTS
ROUTINE MAINTAINACE OF FLIGHTS AND
PROPER MANAGERIAL POLICIES TO BE IMPLEMENTED.
FLIGHT MAY GET HIJACKED, DRUG OR
RESTRICTED GOOD MAY BE SMUGGLED
MAY BE DUE TO INSUFFIECENT SECURITY OR BREAK
DOWN OF SECURITY SYSTEM OR BY HACKING
INCREASING SURVELLANCE,USING EFFIECENT
MODES FOR PROTECTION AND CHECKING.
LACK OF SECRECY OF DATA
DELAY OF FLIGHT, INCONVINIENCE TO
MISINTERPRITATION OF INFORMATION, LACK
OF SUPERISION AND RECTIFICATION OF ERRORS, FRAUD
DELIGATING AUTHORITIES TO
EVERY LEVEL AND REGULAR MAINTAINCE OF WORK RECORD
UNABLES FLIGHT TO TAKE OFF
DELAY IN FLIGHT AND OTHER SERVICES
LESS VISIBILITY WHILE T0RAVELING,
UNCLIMATIC WEATHER CONDITIONS
ADJUSTING PLANE TIMING AND MAKING
PRE-ARRANGEMENTS OF OTHER SERVICES WIT WEATHER PREDICIONS
CRIETERIA:- SEVERNITY OF EFFECT
HAZARDOUS- WITHOUT WARNING
MAY RESULT INTO INSTANT DEATH, HUGE LOSS FOR COMPANY AND PASSENGER
HAZARDEOUS- WITH WARNING
MAY EXPOSE SERIOUS INJURY, MAY CREATE LIFE RISK
MAY RESULT IN CLIENT LOSS AND A CASE AGAINST CONSUMER COURT
MAY RESULT IN CLIENT LOSS WITH MANY SOME PHYSICAL HARMS
DISRUPTION OF SERVICE NOTICED AND RESULS IN INCONVEINCE TO PASSENGER
FAILURE NOTICED BY PASSANGER BUT NO INCONVENIENCE TO PASSENGER
NO SERVICE FAILURE NOTICED BY PASSENGER AND DEOS NOT PROVIDE
INCONVENIENCE TO PASSANGER
PROBABILITY OF FAILURE
VERY HIGH:-Failure is almost inevitable.
MORE THAN ONCE PER DAY
ONCE IN EVERY 3-4 DAYS
ONCE IN WEEK
ONCE IN FORENIGHT
ONCE IN MONTH
ONVE IN EVERY SIX MONTH
ONCE IN A YEAR
ONCE IN 2-3 YEAR
REMOTE:- failure is unlikely. No failures associated with almost
ONCE EVERY 3-6 YEARS
ONCE EVERY 7+ YEARS
NO KNOWN CONTROL AVAILABLE TO DETECT FAILURE
CURRENT CONTROL ARE AVAILABLE BUT CAN NOT DETECT ACCURATELY
VERY REMOTE LIKELIHOOD CURRENT CONTROL WILL DETECT FAILURE MODE
HIGH LIKELIHOOD THAT CURRENT CONTROL WILL DETECT FAILURE MODE
VERY HIGH LIKELIHOOD CURRENT CONTROL WILL DETECT FAILURE MOOD
RELIABLE DETECTION CONTROL DETECT THE FAILURE MODE
FMEA recommendation sheet for risk control
LESS THAN 500
URGENT ACTION NEEDED
ACTION CANT BE POSTPONED
LESS THAN 100
CAN BE ACTIONED LATER