Essential civil air transportation in developing countries

Essential civil air transportation in developing countries

Service Operations Management: Essential Civil Air Transportation in Developing Countries Susanta Deb and George Leylegian College of B u s i n e s s ...

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Service Operations Management: Essential Civil Air Transportation in Developing Countries Susanta Deb and George Leylegian College of B u s i n e s s University of San Francisco,USA

Throughout the Third World, development of national infrastructures has been hampered by peaks and valleys, be they geographical, financial, technological, or political. As domestic industries produce goods and services available for foreign consumption, a need for an efficient distribution system arises. In many countries, because of these peaks and valleys, it has actually become less expensive and more efficient to develop an aerial distribution system rather than a surface system. Knut HammerskjSld, Director General of the International Air Transport Association (IATA), sees aviation not only as a vital transport mode for passengers, goods and services, but also as an alternative to crushing tax burdens necessary to subsidize surface construction and maintenance. He said that in 1978: it h a d b e e n c a l c u l a t e d t h a t t w o m o d e r n r e g i o n a l a i r p o r t d e v e l o p m e n t s , r e l a t e d f a c i l i t i e s a n d f o u r c o n v e r t e d f o u r - e n g i n e d a i r f r e i g h t e r s c a n b e obt a i n e d a t t h e s a m e c o s t a s o n l y e i g h t e e n m i l e s of r u r a l A f r i c a n h i g h w a y . A n d t h o s e e i g h t e e n m i l e s , o n c e laid i n a c e r t a i n d i r e c t i o n , p o i n t t h e r e fore v e r . A i r p o r t s , p l a n n e d s m a l l , l a t e r c a n b e e x p a n d e d or e v e n a b a n d o n e d . The aircraft can land anywhere -- provided basic facilities are there -a n d c a n s u r m o u n t a n y t e r r a i n ( V i v i a n 1 9 8 1 ;37). Therefore, air transport comprises not only a system for passenger travel, but also an essential network of freight for both products and services

The consolidated Department includes reports on research activities, reports on the work of public and private agencies, conference reports, field (industry) reports, and other relevant topics and timely issues. The origanizational headings for this department are: Research Notesa ; Field (industry) N0tesb; Agency Reportsb; Conference Reports; and Other Notes/Reports b. Individuals interested in submittingresearch notes and reports should write directly to Dr. Turgut Vat. Dept. of Economics and Commerce. Simon Fraser University, Burnahy, B.C. VSA 1$6 Canada. The Editor reserves the right to evaluate submitted materials for their applicability and usefulnessand will decide whether to publish each (in original or edited form) in this Department. • Three to five typewritten pages {double space], including bibliography. b One to three typewritten pages (double space), including bibliography.

Annals of Tourism Research, Vol. 13. pp. 287- 299, 1986

Printed in the USA. All rights reserved.

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REPORTS AND RESEARCH NOTES domestically and i n t e r - l i n e . A few key prlniciples can lead to greatly improved service and profits to the countries involved. From the perspective of service operations m a n a g e m e n t , essential civil air transportation is defined by opportunity costs and perishability of product; yet it can alleviate m a n y timeworn problems. Excessive load times in production lines at factories have resulted from delayed ships, train derailments, or failure of lorry equipment. Depending upon the significance of the materials in question (raw, unfinished, or finished) a n d the distances involved in t r a n s p o r t i n g them from sources to users, shortages created by poor distribution systems have led to inefficient operations in terms of inputs, processes, and outputs. In m a n y instances, companies experience large opportunity costs because of shortages and s u b s e q u e n t operations' under-utilization, or because of carrying large inventories. For example, in some congested ports, "vessels have had to remain at bay for indefinite periods" (Fitzsimmons and Sullivan 1982). Apart from excessive demurrage charges, in themselves a direct cost to the economy, opportunity costs m a y be incurred from ships " c a r r y i n g badly-needed ingredients in the production process of one crucial factory or a n o t h e r " (Africa 1979:89). Enos Haimbe, m a n a g i n g director of Zambia Airways, explains t h a t "times have changed. Modern air t r a n s p o r t a t i o n is as vital to us as food. Our goal is to have bigger routes, domestic, regional, and international, and right now we are seeking the m e a n s to buy new planes, equipment, a n d services, mainly from Western countries" (Krause 1981:38]. Mr. Haimbe's s t a t e m e n t is reflective of most less developed c o u n t r y (LDC) air c o m p a n i e s ' operations: the relationship between domestic production and foreign dem a n d for agricultural and industrial goods and services; the relationship between aircraft efficiency and the cost/availability of oil; a n d the relationship between capital structure a n d c u r r e n t international debt. Since most African airlines today trace their short history to colonially administered aviation, it is not surprising that the lack of finance and technology has "frozen" airline service since independence. Most LDC's p u r c h a s e used, fuel-inefficient aircraft to operate domestic flights; a n d then they go to the other extreme of incurring massive debts to acquire one or two new aircraft (e.g., Boeing 7 4 7 ' s or D C - 10's) for international, f l a g carrier routes. P u r c h a s i n g new aircraft not only requires huge outlays of hard c u r r e n c y (or worse, m o u n t i n g debts), but also includes n e c e s s a r y technical service, operational and m a i n t e n a n c e s y s t e m s (Lombolou 1 9 8 1 : 3 2 3 - 3 3 ) . But in the exemplary case of the Ethiopian Airlines, aircraft (DC-3's) were p u r c h a s e d from the United States, and in addition, a service contract was made with T r a n s World Airlines for training, technical assistance, and service operations (Geiger 1 9 5 9 : 5 5 - 73 in passlm). The success of Ethiopian Airlines came from the e m p h a s i s on developing Ethiopia's domestic air structure, leaving the international service to inter-line a g r e e m e n t s with TWA (mostly t h r o u g h connections in Cairo). TWA's r e m u n e r a t e d assistance included m a i n t e n a n c e facilities in Addis Ababa (thus avoiding the old process of sending aircraft as far a w a y as London for maintenance), improved scheduling (Ethiopia has 32 airports, 288

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REPORTS AND RESEARCH NOTES but only three are paved and have lights, so most scheduling had to be done during day-light hours), a basic reservation system (using telephones, telegraphs, and later on, telex), and most importantly, a sense of standardized service. Standardization of service, especially in transportation, eases access to the flow of goods. During the great age of railways, efforts were made to standardize t r a c k width t h r o u g h o u t Europe (standard gauge) so that passengers a n d freight did not require additional switching of cars and trains at each border. The same is true of airlines in the Third World. Service and operations ought to be compatible with neighboring and interline carriers, although unique features of each airline should be maintained. But attempts to merge national carriers into regional carriers (e.g., East African Airways and Kenya, Uganda, and Tanzania) have not always been successful becuase of politics, though they have been successful in terms of standardized s y s t e m s ' operations (Africa 1979:85). Following the example of Ethiopain Airlines, Third World airlines ought to concentrate efforts on (1) developing domestic passenger a n d freight t r a n s p o r t by incorporating indigenous c o n s t r a i n t s as well as benefits into a standardized system; (2) developing airport a n d aircraft support systems with financing and guidance from the World Bank (Schwartz 1 9 8 1 : 3 1 3 2 I); (3) m a k i n g their transportation system as well as their m a i n t e n a n c e facilities and reservations compatible with major carriers (this would switch the c u r r e n t "competition" between fledgling African airlines and established Western carriers (Malumo 1 9 7 9 : 7 7 - 8 4 in passim) into a mutually beneficial and more cost-effective cooperative, inter-line system); a n d (4) creating an ef[icient m a n a g e m e n t information system to monitor and improve current service operations (Lucas 1982). One of the problems with airline service operations m a n a g e m e n t , particularly in those countries with virtually no surface transportation involves attitudes versus costs. This conflict is most obvious in airlines straying from posted schedules, w h e t h e r because of equipment trouble or poor capacity planning. A flight scheduled to depart on Monday m o r n i n g m a y be delayed u p w a r d s of 48 hours. Even with such delays, the passenger will still arrive five days earlier t h a n if he had t a k e n the only alternate transportation (personal experience a n d communication). This same attitude permeates cargo operations. Consequently, both the airline and the customer (passenger or forwarder) in an LDC tend not to complain about equipment failures and lost luggage; for m a n y are of a generation very familiar with pedestrian journeys. This attitude, though, is very costly in t e r m s of global interaction as Westerners, accustomed to reliable service, forecast production by relying upon prompt delivery of n e c e s s a r y goods and services. One example of opportunity cost is cut flowers. In 1974, Europeans purchased US $3 Billion in imported, cut flowers because the recent oil crisis had made " h o t h o u s e " production too expensive. Of the thirty-seven countries in Africa able to produce and export cut flowers by air, only two were successful, and earned US $3 Million in European hard c u r r e n c y (Vivian 1986 ANNALS OF TOURISM RESEARCH

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REPORTS AND RESEARCH NOTES 1981 ). L i k e w i s e , o u t - o f - s e a s o n f r u i t s a n d v e g e t a b l e s a s w e l l a s f r e s h fish all h a v e p o t e n t i a l a s e x p o r t i t e m s a n d w o u l d c o m m a n d t o p p r i c e for a g r i c u l t u r a l l y r i c h A f r i c a . U n f o r t u n a t e l y , t h e q u a l i t y of t h e s e p e r i s h a b l e e x p o r t s c a n n o t b e g u a r a n t e e d d u e to of i n h e r e n t t r a n s i t d e l a y s . T h e u r g e n c y of u s e to t h e u l t i m a t e c o n s u m e r m u s t b e c l e a r l y c o n v e y e d to g o v e r n m e n t s u n a w a r e of b o t h t h e p o t e n t i a l in d o m e s t i c a i r t r a n s p o r t a t i o n a n d a l s o t h e h a r d profit in i n t e r - l i n e c a r g o , a n d o p p o r t u n i t y difficult to d i s m i s s in t h i s e r a of large national debts. A n o t h e r e x a m p l e of o p p o r t u n i t y c o s t is in t o u r i s m . T o u r i s t s g e n e r a t e r e v e n u e for a n a t i o n , b u t t o u r i s t s a l s o r e q u i r e c e r t a i n s t a n d a r d s e r v i c e s , o n e of w h i c h is r e l i a b l e a i r t r a n s p o r t a t i o n d u r i n g a s c h e d u l e d flight in a p l a n n e d i t i n e r a r y . If a d o m e s t i c flight is d e l a y e d , o v e r b o o k e d , o r c a n c e l l e d , w h a t t y p e of o p e r a t i o n s m a n a g e m e n t s y s t e m e x i s t s to a c c o m m o d a t e t h e c u s t o m e r ( a n d a s s u r e r e p e a t , o r r e t u r n p a t r o n a g e ) ? Will t h e a i r l i n e b e fam i l i a r w i t h c a p a c i t y p l a n n i n g , r e s e r v a t i o n s s y s t e m s , r e c i p r o c a l flight a g r e e m e n t s w i t h o t h e r c a r r i e r s in o r d e r to e x p e d i t e t h e c u s t o m e r s t r a n s i t ? Or, will a s a l e s r e p r e s e n t a t i v e m e r e l y a n n o u n c e e v e r y h o u r t h a t t h e p l a n e will a r r i v e in 4 5 m i n u t e s ? T h e I n t e r n a t i o n a l Civil A v i a t i o n O r g a n i z a t i o n (ICAO) m a i n t a i n s a T e c h n i c a l A s s i s t a n c e B u r e a u a n d h a s b e e n i n s t r u m e n t a l in p l a n n i n g , c r e a t i n g , a n d i m p l e m e n t i n g a i r l i n e s e r v i c e o p e r a t i o n s m a n a g e m e n t s y s t e m s in s e v e r a l T h i r d W o r l d c o u n t r i e s . A c k n o w l e d g i n g t h e c o s t - e f f e c t i v e n e s s of b u i l d i n g a i r p o r t s in o t h e r w i s e i n a c c e s s i b l e r e g i o n s h a s n o t o n l y i m p r o v e d t h e q u a l i t y of s e r v i c e o p e r a t i o n s m a n a g e m e n t b u t h a s a l s o i m p r o v e d m e d i c a l c a r e (e.g., " F l y i n g D o c t o r " s e r v i c e s i n N o r t h e r n C a n a d a a n d in A u s t r a l i a ) , e d u c a t i o n (e.g., m i s s i o n a r y t e a c h e r s s h u t t l i n g b e t w e e n i s l a n d in t h e C a r i b bean), postal service, national defense, and the economies as wholes. The k e y to a i r l i n e s e r v i c e o p e r a t i o n s m a n a g e m e n t is u n d e r s t a n d i n g t h e p e r i s h a b i l i t y of t h e p r o d u c t ; p r o d u c t h e r e m e a n s n o t o n l y f r e i g h t b u t t h e a i r l i n e s e a t a s well. E m p h a s i s s h o u l d b e p l a c e d u p o n c h a n g i n g a t t i t u d e s , i m p r o v ing technical support, and most importantly, standardizing the operations in o r d e r to p r o v i d e r e l i a b l e , p r o f i t a b l e , a n d e s s e n t i a l a i r s e r v i c e . [] []

REFERENCES Africa 1979 The new Airlines take off. Africa 91 (March 1979}:85-89. 1979 Serving the export sector. Africa 91 (March):89-91. Fitzsimmons, J a m e s A. and Robert S. Sullivan 1982 Service Operations Management. New York: McGraw-Hill Book Co. Geiger, Theordore 1959 TWA's Services to Ethiopia, United States Business Performance Abroad series, Eighth Case Study. New York: National Planning Association. Krause, Axel 1981 Third World Airlines: Zambia Airways leads drive to modernize and expand. Europe (March- April:38 - 4 I. 290

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Lombolou, Edouard 1981 Current professional training needs--specialized training for civil-aviation careers in Africa. Impact of Science on Society 31 (July-September):323333. Lucas, Henry C. 1982 Information Systems Concepts for Management. New York: McGraw Hill Book Company. Malumo, Siyanga 1979 African Airlines: In unity lies strength. Africa 91 (March 1979:85-89). Schwartz, Adele C. 1981 Airports in developing nations: World Bank helps with financing, expert guidance. Impact of Science on Society 31 (July- September 1981):313- 321. Vivian, Jack 1981 ICAO assistance to civil aviation in the developing world. Impact of Science on Society 31 (July- September):305 - 312.

Recreation and Park Congress

Robert McLellan and Muzaffar Uysal Dept. of Parks, Recreation and Tourism Clemson University, USA

" L e i s u r e : T h e E s s e n c e of L i v i n g " w a s t h e t h e m e of t h e 1985 C o n g r e s s for Recreation a n d Parks. This year's a n n u a l conference, sponsored by the N a t i o n a l R e c r e a t i o n a n d P a r k A s s o c i a t i o n (NRPA) w a s held O c t o b e r 25 - 2 8 i n Dallas, T e x a s . P a r t of t h e t i m e a t t h e C o n g r e s s w a s d e v o t e d to m e e t i n g s of b o a r d s , c o m m i t t e e s a n d s p e c i a l i n t e r e s t g r o u p s ; h o w e v e r , e d u c a t i o n a l s e s s i o n s a n d r e s e a r c h p r e s e n t a t i o n s c o m p r i s e d t h e m a j o r i t y of t h e m e e t i n g time. A n i n t e r e s t i n g a d d i t i o n to t h e p r o g r a m t h i s y e a r w a s a l i s t e n i n g sess i o n b y m e m b e r s of t h e P r e s i d e n t i a l C o m m i s s i o n o n A m e r i c a n s Outdoors. T h e N a t i o n a l r e c r e a t i o n a n d P a r k s A s s o c i a t i o n is t h e n a t i o n ' s l a r g e s t n o n - p r o f i t service, r e s e a r c h , a n d e d u c a t i o n o r g a n i z a t i o n devoted to imp r o v i n g t h e q u a l i t y of life t h r o u g h effective u s e of n a t u r a l a n d h u m a n resources. Traditionally the Association has sponsored recreation program s e r v i c e s a n d e n c o u r a g e d e n j o y m e n t of o u t d o o r n a t u r a l r e s o u r c e s . In r e c e n t y e a r s , NRPA h a s g r o w n closer to t h e c o m m e r c i a l r e c r e a t i o n a n d t h e t r a v e l i n d u s t r y , a s e v i d e n c e d b y t h e c o n t e n t of b o t h t h e e d u c a t i o n a l a n d r e s e a r c h s e s s i o n s a t t h e C o n g r e s s . S o m e detail o n T o u r i s m a n d C o m m e r c i a l Recrea t i o n s e s s i o n s follows. R i c h a r d P e r d u e (North C a r o l i n a S t a t e U n i v e r s i t y ) o r g a n i z e d a n d m o d e r ated t h e T o u r i s m a n d C o m m e r c i a l R e c r e a t i o n s e s s i o n . T h e following s e v e n p a p e r s w e r e p r e s e n t e d . D a n i e l J. S t y n e s (Michigan S t a t e U n i v e r s i t y ) pres e n t e d a p a p e r e n t i t l e d , "A R e v i e w a n d E v a l u a t i o n of M a r k e t S e g m e n t a t i o n A p p l i c a t i o n s i n R e c r e a t i o n a n d T o u r i s m . " He r e p o r t e d o n t h e q u a l i t y 1986 ANNALS OF TOURISM RESEARCH

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