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What are the benefits of planning in the airline business?

What are the benefits of planning in the airline business?


1 Answer

Benefits of Planning in the Airline Business.

To cope with the\development of new technologies and the rapid changes in government policies, the airlines has to adopt the new planning policies to survive in the Market. A large proportion of smaller airlines had no formal planning process, relying instead on executive judgement. Planners identified the need for greater support from top management and better definition of planning requirements. The results are suggestive of the opportunity for greater dissemination of the state-of-the art and research to improve planning technique. The prime aim of the planning now seems to be the identification of attractive new opportunities and the formulation of programs for developing these areas and opportunities.

The proper airline planning should include the following elements:

  • A definition of goals and objectives.
  • An assessment of alternative courses of action.
  • Provision of contingency plans.
  • An assessment of operations.
  • The decisions regarding avenues likely to be subsequently pursued.

As a formal planning process is implemented, an increased focuses on customer. Many of the airlines companies are against the formal planning preferring to adopt more casual approach. Following are few of the benefits gain by the formal planning in airlines business:

  • Planning helps management to think beyond present scenario.
  • It assists the airlines in assessing its basic requirements.
  • It assists in setting the performance standards for monitoring and controlling.
  • It prepares the airlines management to meet sudden developments or crisis.
  • It helps in maintaining the good coordination amongst the various airlines.

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May 13, 2019