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Contingency Plans for Hawaiian Airlines - Essay Example

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The essay "Contingency Plans for Hawaiian Airlines" focuses on the critical analysis of the major issues in the contingency plans for Hawaiian Airlines. Hawaiian Airlines is entrusted with giving customers an efficient performance level as well as quality service…
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Contingency Plans for Hawaiian Airlines
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Another main risk of Hawaiian Airlines includes causing distress to passengers in cases where the authorities find that their luggage’s “size, weight, or character renders it unsuitable for transportation on the particular aircraft which is to transport it, or which cannot be accommodated without harming or annoying passengers” (Contract of Carriage, 2013). Hawaiian Airlines is forbidden from allowing any passengers to carry an item that is prohibited in their regulations or laws.

Another thing is that Hawaiian Airlines does not allow any object or device, which can get in the way of its usual processes, on board the aircraft. “Risk management is a systematic way of identifying potential risks within a project, gauging or estimating the probabilities of these risks occurring, to then develop strategies to manage these risks” (Bliss, 2005).

Hawaiian Airlines explores various options available to reduce costs. But this is a very difficult task as present-day competition between different airlines is very stiff. Some risks face by the airlines arise because of the complex structure of its industry. These risks have to be identified and managed for the airlines to maintain their business and progress to higher levels. One of the major issues faced by airlines is that they can sometimes alienate their loyal customers. This happens at times when the Aloha flights of Inter-Island are skimped to upscale or refurbish Hawaiian Pacific Airlines to increase client service.

Risk assessment is not just related to identifying risks, but also making the stakeholders and project team aware of them. It also includes assessing the possible severity of these risks, thus, recognizing where most attention is to be given to transform risks into the advantage of the organization. In the case of aggressive growth, Hawaiian Airlines faces medium risk as mentioned before. It is a fact that they do not provide services for flights to countries such as Singapore and India, which are common tourist destinations. Singapore is an extremely popular tourist center and the third richest nation in the globe, should be included by Hawaiian Airlines in the list of countries they provide services. Market Share in Inter-Island Services in Hawaiian Airlines shows low risks comparatively. To remove the competition in the Inter-Island facilities area, the industry needs to develop some strategies to attract further customers and, therefore, increase its market share. Announcing particular offers, introducing special services, offering additional discounts to common fliers, etc can be a few of the strategies. Brand Image in Hawaiian Airlines is an element that poses high risks. Corporate reputation is influenced to some extent by the value of the pilots in the airlines. It is the most crucial part of strategic airline management and, therefore, Hawaiian Airlines have to maintain as well as find ways to improve its brand image.

Decisions on the best way to respond to certain risks will be based on the risk analysis. Also, the airlines should take into consideration the profit or loss that will entail, the cost that will be incurred for the risk response as well as the impact of the original risk.

Once the best response to being used for each risk has been developed, the planned strategies for dealing with the influences of those risks shall be put in place. “Hawaiian Airlines today announced that the company has completed a successful renegotiation of lending agreements that address upcoming term loan maturities, provides for an expanded revolving line of credit, and puts the airline in a strong position for future growth” (Hawaiian Airlines Announces New Financing Facility, Strengthens Financial Position for Future Growth, 2012).

The risk monitoring is performed after the risk planning, mitigation, and distribution processes have been executed. “It must continue for the life of the project because risks are dynamic. The list of risks and associated risk management strategies will likely change as the project matures and new risks develop or anticipated risks disappear” (Risk Monitoring and Updating, 2013).

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