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Risk Management Module: Why Airlines Need Risk Management?

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Risk Management Module
Why Airlines need risk management?
The most relevant impediments to airlines are related to industry structures, economic conditions, government interventions, customer dynamics etc and over these the industry has limited or no control. Since industry in is very cyclical, competitive and seasonal in nature. Therefore even a slightest of a change in any external or internal factors makes it difficult to plot the right course for meeting the objective and continuous success. In order to place it better and built ability to identify, adapt and minimize the effect of spontaneous and unfavourable changes Airlines needs risk management
How risk management helps:

Types of risk airlines can face
According to CAPA …show more content…

Easy Jet
Cost management Flexible business model that focuses on shifting their cost structure from fixed to variable costs as much as possible. Together, this model allows the company to scale up or down to meet demand, while maintaining higher margins than competitors. Delta Effective management of routes operating on look for profitable routes ; routes with low occupancy rates are to be closed shortly Ryan Air Low or no agent commission and innovative monetization of ancillary revenue example advertising on internet boarding cards and planes Non stops routes avoid the cost of connecting passengers baggage transit …show more content…

Easy Jet Alternative service providers are identified and assessed within the major markets Robust transition plans are agreed in the event of switching suppliers to enable an acceptable level of service to be maintained.
IT failure or obsolescence Key systems are hosted across two data centres in two distinct locations, with failover arrangements between them, or within third-party provider locations, for which failover arrangements are contractually agreed with them Easy Jet IT disaster recovery plans a in place and tested regularly to identify areas for improvement in resilience. An IT incident management team is in place to respond rapidly to any unforeseen incidents that may arise. Availability of alternative sites at short

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