Saturday, April 24, 2010

ERP 201 ... Volcanic Ash and Beyond

The last week was a time of revelations, it showed how fragile was the air transportation system was. A volcanic ash cloud over Europe closed the airspace grounding the majority of the airlines in that region. It also affected almost every airline in the world. The losses to the industry was USD 1.7 Billion in a week, imagine if it went on longer. This is what the airline lost and does not account for what other industries that relied on air cargo across the world lost.

That week was in a way an educational week. It showed how airlines and ancillary services reacted, some with compassion others just followed the rule book. Nevertheless, there are several lessons to be learnt here.

1.The airline industry is very global and very vulnerable to disruptions. The closure of the European airspace affected airlines across the world. The industry just stood gawking helplessly, at what potentially was its own demise, as losses mounted at the rate of USD 200 millions a day. No contingency plan or business continuity plan was effective. This was a scenario that no one foresaw, the airlines had no idea what to do with passengers, staff or aircraft. There were no protocols for the testing of volcanic ash and its potential effect on aircraft engines and airframes. The health impact was not even addressed.

2.Emergency Response; I bet no airline Emergency Response Plan catered for such a disruption. The traditional means of communications, although important were not adequate to cope with the scope of the disruption and the amount of queries. The traditional media, print, radio, TV and even websites were not fast enough or real time to respond to an evolving situation which increased in number and complexity, with each day bringing on more stranded passengers to the already chaotic scene. Enter Social Media to the rescue with Twitter and Facebook playing a major role allowing airlines and Eurocontrol to interact with passengers and to give up to date information and responding to questions in real time. Several airlines refined their internal social media processes to meet the challenge.
Every airline must review its Emergency Response Plan to take into account of such or similar disruption. The last time this volcano erupted it lasted for more than a year. However, the most important revision should be in Communications. It is a must that Social Media be acknowledged as a means of responding to crises and keeping passengers and their families and friends along with all other stake holders in the information loop. It should not by any means replace press conferences, call centers and other media channels.

3.Protocols and processes must be agreed by all stake holders (authorities, OEMs and airlines) to test and gauge the safety impact of volcanic ash on people's health and aircraft safety, allowing flights to operate in the presence of the ash.

4.Just like the airlines, Import/Export businesses that rely on air transport for their survival, must look again at their contingency and continuity plans and act accordingly.

Let us not waste a good crises.

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