Scotia Airways Essay
Scotia Airways is a small private airline based in Glasgow, Scotland. The airline was launched in May 1996 by a group of independent business investors. The headquarters of Scotia Airways is located next to Glasgow International Airport. The airline operates scheduled flights, mainly targeting business and leisure travellers and aims to provide exceptional value for money, unparalleled comfort and convenience to its passengers, every time they are on board. Scotia Airways initially established itself in the UK domestic market but now flies directly to some of the well-known commercial hubs of Europe, thereby connecting them to the main cities of Scotland.
The airline has an increasing presence at Scotland’s main airports in Glasgow, Edinburgh and Aberdeen. It offers several value added services, such as, valets to assist the passengers in boarding the plane, gourmet meals and a range of in-flight services and entertainment.
Scotia Airways is the first airline to offer full business class services, but at prices that are equivalent to the economy class of its competitors.
The airline currently covers eight destinations across Europe, including Brussels, Paris, Frankfurt, Madrid, Rome, Lisbon, Amsterdam and Copenhagen as well as domestic flights to Manchester, Birmingham, Bristol and four London airports. The airline has a fleet of five aircraft which the management team feel enables the business to be responsive to the demands and challenges of the market. Future opportunities seem likely as the EU and UK government relax their control over the licensing of airline provision. When the investors first decided to set up Scotia Airways, they had a clear idea that business travel was a growth area.
They set about appointing a management team whose experience and expertise was firmly grounded in the budget aviation market. The airline currently employs 80 staff across all departments. Its expansion over recent years has seen the company commit significant resources to the marketing and sales department, its finance department, and its operations department in an attempt to ensure it has kept up with customer demands. There has been an increase in staffing levels, an increase in budgets and an increase in capital investment. It currently employs executives and managers in marketing, finance, HR and flight operations with operational and administrative staff within each department. Rosa Dallevic is in overall charge, assisted by her long-term colleague, Azim Ishtiaq. She has also employed the same personal assistant, Katrin Wright, since she joined Scotia and this has helped promote consistency and continuity.
One of the main strengths of Scotia Airways has been its ability to work successfully within the regulatory frameworks of the aviation industry. It has developed a reputation for its strict adherence to the UK civil aviation standards, the level of service provision it offers over and above the minimum consumer travel protection schemes and its proactive role in identifying and meeting customer needs. A key driver of the success of Scotia Airways is the management focus upon the level and quality of service output. Senior Management agrees output targets with middle and junior managers and staff, and allows the operational planning to be determined by those managers and employees. The targets for scale of provision, passenger volume and market share are determined by senior managers, and middle and junior managers and employees then populate the details into the plan.
Scotia Airways aspires to mark its international presence, by introducing flights to major European tourist destinations, as well as expanding to major business centres in Eastern Europe and the Middle and Far East. The airlines international flights will only use custom built wide bodied aircraft, and would not offer economy class travel. Scotia Airways has been able to retain the same management team that were brought to the business in 1996. The vast majority of staff have also remained with the business as it has grown through the years. A culture of trust has been emphasised and developed by both the management and workers and this has served to enhance the effectiveness, efficiency and overall performance of the business. This culture has been fostered by the Chief Executive, Rosa Dallevic, and has led to a positive working relationship within and between different departments.
This has been reinforced by positive management approaches and wide ranging reward policies that were agreed and supported by Trade Union representatives. Whilst much of the success of the business has been founded on the development and robust application of policies and procedures, a great deal of time and thought has been invested in how best to promote social harmony and integration within the workplace. The company is very much regarded as a family-style business and has established a range of suppliers and clients that are seen as the extended family. The management team within Scotia have worked eticulously in planning and evaluating their services to ensure that customer focus is the primary driver of business success. The satisfaction of the interests of the stakeholders involved in Scotia Airways has been of paramount importance to Rosa, and at times when difficult decisions have had to be taken, she has always been a strong and decisive manager.
The investors in Scotia Airways have set an ambitious programme for expansion over the next 5 years to include long haul destinations. Some members of the management team and many workers are concerned that the change in strategy will change the ethos and culture of the business. However there has been a general acceptance that in order for Scotia to successfully expand and compete in a challenging market, it will be required to change its working principles and practices. The senior management team have already started drawing up preliminary plans for the expansion. This has included the identification of potential implications for organisational objectives, goals and policies, as well as the essential restructuring that will be required to ensure the business remains viable. Understandably, many of the workforce are anxious about the expansion and the possible risk and uncertainty it could bring. The feeling of ‘if it’s not broke, don’t fix it’ has been bandied about by some Trade Union members but the recognition of a changing market and an increasingly challenging wider environment by most of the workers and the management team has seen plans proceed at a pace.