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An Analysis of Factors Influencing Southwest’sRequired Navigation Performance InitiativeAshley FarringtonMatt HoffmanAndrea NewhouseBryan RogoffMBAD 284-15Professor JosephApril 28, 2010Executive SummaryOn April 6, 2010, Southwest Airlines radically upgraded the cockpit software for two-thirds of its fleet of airplanes and implemented a more precise way of flying approaches into airports. This new approach is through Required Navigation Performance (RNP) routes, which uses satellite-based navigation to conduct approaches and is expected to save fuel, reduce noise and minimize delays. The Federal Aviation Administration (FAA) is trying to design and establish standardized RNP routes and procedures while also trying to train air-traffic controllers in how to safely combine the legacy procedures with the new RNP routes. Southwest took the initiative to upgrade its technology in order to move forward with its planned RNP routes, but is concerned that the FAA will not establish new and effective procedures for the RNP routes and will simply continue to use the legacy procedures. If the FAA is unable to provide new procedures and routes for RNP, Southwest will have lost its $175 million investment in new technology and its RNP routes will do nothing to increase efficiency or save money.?In order to maximize the chance of success to regain the money spent to implement RNP routes, Southwest shall evaluate its alternatives, determine a strategy, and undergo a variety of methods to ensure its RNP routes will achieve the desired result of reducing costs and increasing revenue.?IntroductionSouthwest Airlines is primarily a budget airline carrier. ?Its core business strategy emphasizes operational efficiency, cost-cutting, and customer satisfaction. ?Southwest, in part by its large capital investment of $175 million dollars, announced in April, 2010 that it has made the decision to become one of the pioneers of Required Navigation Performance (RNP) technology and has started using RNP routes for takeoffs and landings. ?RNP technology has the opportunity to change the way of not only how Southwest Airlines operates, but also the way everyone, from those living in the vicinity of airports to the airline chief executive officer, interacts with the commercial airline industry as a whole. ?Southwest’s initial capital investment in RNP alone will not provide a complete and desired transformation of the industry; it will likely require a long-term and solid strategy from numerous entities to achieve this outcome.?Legacy Commercial Airline Landing ApproachesThe current system used for approaches and landing in the commercial airline industry is decades-old and based primarily on radio and radar technology. ?When a commercial plane nears its final decent (i.e. when passengers are instructed to turn off all electronic devices and stow their tray tables), the pilot switches to an approach frequency where he or she communicates with air-traffic controllers responsible for directing the final decent. Airplanes depend primarily on ground-based navigation aids (NAVAIDs). ?These devices are usually radar terminals positioned near the airport and on aircraft to help guide the aircraft to its final destination. ?The plane via this radar contact is given specific directions over radio. ?The pilot will make numerous corrections during the landing approach. ?The landing sequence resembles a staircase as the airplane must constantly make speed and altitude adjustments to adapt to current conditions. ?These adjustments are both felt by passengers on the plane as well as heard on the ground by neighborhoods surrounding airports. ?Additionally, “planes must get clearance each time they move to a lower altitude; this wastes a lot of fuel, not to mention time” (Dillow, 2010).The Next GenerationRequired Navigation Performance (RNP) is a key component of the “NextGen” initiative, a broad-based, government approach to upgrade commercial airline industry infrastructure. ?Computerized automation and satellite navigation are at the crux of the RNP system. In place of the NAVAIDs, global positioning system satellites (GPS) signals would be used in conjunction with an RNP-equipped airplane computer system to determine and aid with the execution of the final approach. Radar signal degradation and interference from terrain, a common problem facing radar-based systems are virtually eliminated when using GPS signals. ?NextGen technology, using RNP, will also allow planes to more precisely communicate with other planes, the ground, and with air traffic controllers. ?If fully implemented, this will ultimately free air traffic controllers from routine guidance duties to allow staff to use airspace more efficiently, to increase capacity, and accommodate more flights in a more efficient manner (FAA NextGen, 2009).Southwest was not the first airline to use RNP. ?Alaska Airlines was the first airline to begin the transition to RNP. Alaska, with its unique radar-averse terrain, proved a valuable testing ground for Alaska Airlines and RNP. Around 1995, Alaska Airlines began to implement RNP at some of the airports in the state citing RNP success at the “world's most remote and geographically challenging airports”. In 2005, Alaska Airlines flew “the FAA's inaugural public RNP approach procedure into Reagan National Airport in Washington, D.C.” (Alaska Airlines, 2006). Since then, Alaska Airlines helped establish RNP service in Palm Springs and San Francisco, as well as in many other cities nationwide.The IssueIf successfully implemented, RNP would be of important concern to Southwest Airlines’ bottom line. Alaska Airlines has shown proven, realized cost savings with RNP. For example, in its Portland Oregon implementation, for every RNP-assisted arrival at Portland’s International Airport, “about two minutes and 28 gallons of fuel” are conserved compared against the legacy system. ?Southwest, which currently strives to keep costs low, should realize immediate savings from this infrastructure investment (Alaska Airlines, 2006).One of Southwest’s operating strategies is to fly strictly Boeing 737 aircraft.? This has several advantages including near-uniform repair procedures as well as parts sourcing and availability within their system.? This bodes well for the RNP implementation.? Southwest’s RNP-strategy is two-fold, with a completion date of 2013 (Ostrower, 2010). Southwest currently operates three different types of Boeing 737 aircraft.? The first phase of RNP implementation is to enable RNP on the newer Boeing 737-700 series, which comprises two-thirds of its fleet.? The next phase, to be complete in 2013, is to install RNP and display equipment into the remaining third of its fleet, the Boeing 737-300 and 737-500 series.? The changes overall will be mostly seamless with the new displays and will be tuned to better display important details while keeping a similar look-and-feel to the legacy Boeing 737-300 and 737-500 display interfaces beginning in “early 2011” (Ostrower, 2010).Southwest Airlines RNP: Initial ImpactThe Southwest Airlines RNP implementation, if the NextGen initiative takes off, appears to be sustainable. On the equipment side, once the legacy Boeing 737- 300 and 500 series planes are updated and with the Boeing 737-700 currently ready to fly RNP, the equipment update phase would be complete.? Future Boeings 737s can be ordered with the RNP system already in place.? ?Financially speaking, “if just one minute is shaved off every flight, on average, Southwest says it will recoup its investment” (McCartney, 2010). Since Alaska Airlines Portland scenario shows a two-minute time savings, it’s likely that Southwest’s fleet-wide implementation of RNP would realize savings.? Southwest Airlines’ current RNP upgrade initiative appears to be in line with its overall business strategy and directed to the correct audience, its entire group of stakeholders.??Stakeholders & OpponentsA number of parties have a stake in Southwest’s RNP initiative, ranging from federal agencies, airports, and other airlines, to neighborhoods that fall under the proposed flight grid. While incentives for each stakeholder varies, commonalities do exist, including an overall push for decreasing flight times and delays, carbon emissions, aircraft noise pollution, and excessive operating costs for airlines.The Federal Aviation Administration (FAA)The FAA is closely connected to Southwest’s RNP innovation. Southwest must rely on the FAA to design the RNP routes and procedures, similar as to how trucking companies must rely on the Department of Transportation to build roads and highways (McCartney, 2010). Despite a strong lobby by Southwest and others for many years, the FAA has been slow to implement satellite-based technology in its flight routes. An FAA initiative known as the Next Generation Air Transportation System, or “NextGen”, seeks to modernize U.S. air infrastructure by implementing more up to date technologies, including RNP. The FAA acknowledges that the current system (based on WWII-era radar technology) is not performing adequately, citing that demand remains high in already congested markets and that the system does not utilize current available technologies to “support aviation’s role in the national economy and address aviation’s environmental impact” (FAA, 2008). NextGen’s focus is to implement GPS technology in 15 of the largest U.S. metropolitan areas –the same areas where, perhaps not coincidentally, Southwest’s planes fly.NextGen has the attention of the Obama administration and has seen federal funding ramp up significantly in the past few years. In FY09, the budget for NextGen was increased by 198%, from $230.8 million to $688 million (FAA, 2008). This increase in funding directly correlates with increased attention to RNP as well as progress made against NextGen goals. “We've left the drawing board. Now we're in implementation,” says Randy Babbitt, FAA Chief (McCartney, 2010). The FAA’s biggest challenge will likely arise in the form of combining the old procedures with the new. Since use of RNP is optional at this point in time, some airlines (like Southwest and Alaska Airlines) will be using RNP while other airline giants (United, for example) will continue to use the old procedures for the foreseeable future. Southwest’s largest concern is that the FAA, in an attempt to please everyone involved, will simply design the new RNP infrastructure map to lay right over the same paths that planes currently use. This would be the most likely course of action, since the other airlines and neighborhoods that fall below the existing flight grid may not be very happy if this were to suddenly change. Should the FAA follow this strategy, Southwest will be unable to realize gains from its RNP investment. “If the government only does overlays, then we have wasted $175 million,” says Jeff Martin, Southwest's senior director of flight operations (McCartney, 2010).Neighborhoods To have old-technology planes flying in the same pattern as before along with RNP-retrofitted planes flying in new paths creates additional air traffic from the point of view of the neighborhoods below. While Southwest asserts that RNP planes will be quieter as they swoop in to land, since engines are usually idling during the approach, the RNP planes will fly in the exact same path every single time, potentially increasing air traffic over some areas. Neighborhoods, homes and businesses falling directly under this flight grid are likely to sue the FAA and/or Southwest if this occurs due to an increase in noise and degradation of quality of life. AirportsNot all airports in the U.S. currently have the ability to accommodate RNP procedures. However, Southwest has ensured that all the airports its company uses does (which includes most major U.S. hubs). From the airport’s point of view, it may be difficult for air traffic controllers to handle planes approaching the airport via different flight paths. While other planes may have to queue up to land and take off because they are sharing the same flight grid, Southwest planes could swoop right in under their different RNP route. “Southwest planes wouldn’t have to wait in the conga line,” says Martin (McCartney, 2010). If the FAA puts all aircraft (RNP and non-RNP) on the same flight grid, however, then there would be essentially no change to the airport’s current air traffic control procedures.Other Airlines Those most affected by the changes in airline queues would be other airlines that have not yet undertaken a similar investment in RNP as Southwest. Air traffic controllers at RNP-equipped airports may likely be instructed to allow RNP planes to land first and force the rest to wait in the standard line. The threat of being delayed behind better-equipped jets will serve as an incentive for airlines to quickly upgrade, the FAA says (McCartney, 2010). However, until airlines using legacy systems and flight paths make a technology upgrade, they could be considered Southwest’s opponent since they are now threatened by Southwest’s competitive advantage. Not only will Southwest get priority for takeoffs and landings due to its upgraded technology, but will be saving money through fuel efficiency and reduced delays. These airlines may petition the FAA to cease giving priority to airlines equipped for RNP routes, although the likelihood of success is minimal. Airlines have been lobbying Congress for years for federal funding to pay for new RNP equipment. Most are unwilling provide the multi-million dollar investment required to implement RNP technology in their fleet without some significant federal subsidies. However, that does not mean that they have not been actively pursuing an RNP strategy. On April 9, 2010, just days after Southwest’s debut of RNP in all of its planes, American Airlines conducted a highly-publicized test of RNP technology on a flight from Paris to Miami. The test flight was important because it was conducted in conjunction with the Atlantic Interoperability Initiative to Reduce Emissions (AIRE), a joint initiative between the U.S. FAA, the European Commission (EC) and several international airlines (AA Tests Next-Gen Tech for Carbon Emissions, Fuel Savings, 2010). Air France, another large international carrier, conducted a similar test flight just one day earlier.Environmental ConsiderationsThe FAA acknowledges that aviation presents an environmental impact in the form of aircraft noise and emissions, and claims that “increased efficiency with NextGen will lead to reduced fuel consumption, resulting in lower carbon emissions” (FAA, 2008). Not surprisingly, the FAA has been working closely with the Environmental Protection Agency (EPA) on its NextGen initiative. According to a Government Accountability Office (GAO) report from 2008, the “EPA estimates that aviation emissions account for less than 1 percent of local air pollution nationwide and about 2.7 percent of U.S. greenhouse gas emissions, but these emissions are expected to grow as air traffic increases” (GAO-08-706T, 2008). In fact, air traffic is projected to triple in the next few decades (FAA NextGen, 2009).Clearly, all major airlines in the U.S. have a strong incentive to convince the FAA and Congress to support and subsidize this modernization effort. The Obama administration, known for its stronger stance on environmental protection and efforts to reduce carbon emissions, has already indicated its support of this initiative by increasing the FAA’s NextGen project budget significantly since 2008.CongressThe current Senate bill, the FAA Air Transportation Modernization and Safety Improvement Act, is expected to be voted upon at any time. Among other things, the bill mandates that airlines buy their own RNP equipment (Micheals, 2010). The bill also sets new requirements for the FAA, including requiring the FAA to “set a target of achieving a minimum of 200 Required Navigation Performance approach procedures per fiscal year through FY2012, with 25% of that target number meeting the low visibility approach criteria consistent with the NextGen Implementation Plan” (S.1451, 2009).Southwest, along with American Airlines, have adamantly voiced to Congress that if airlines are required to implement RNP, it should subsidize the purchase, which they estimate to be around $4 billion. The airlines point out that subsidies to their industry are long-overdue, as they were not included in the 2009 stimulus package: “I am still dumbfounded that there was no support for air traffic control infrastructure, particularly equipage, in the stimulus legislation,” notes American Airlines chief executive Gerard Arpey.In lieu of subsidies, Congress is mulling over the authorization of incentives, such as the “best-equipped, best-served” policy discussed previously, in which air traffic controllers will be instructed to let RNP-fitted planes land before others. Sen. Kay Bailey Hutchison (R-Texas) said that senators are discussing a provision that would allow, but not direct, the FAA to pay for the carriers' equipment, but that she was not sure if this proposal would succeed (Micheals, 2010). Government loans to the airlines are also being discussed.While the FAA expects to issue a proposal by this May that would mandate adoption of the avionics by 2020, the Senate bill sets the date at 2015 (Micheals, 2010).Southwest Employees and Pilot UnionsInitially, Southwest pilots resisted the change to RNP. Reasons for this include an increased push for autopilot navigation under RNP, since the technology is so precise. Many pilots view Southwest as an excellent airline to fly for since Southwest’s philosophy has always been to encourage pilots to be alert and fly the planes themselves as much as possible. In order to win over these employees, Southwest implemented a complex training program for its employees that emphasized the benefits of switching to RNP. “If done correctly, this can be safer. And it can help us get in and out of some places,” says Jacob North, a Southwest first officer and communications chairman of the Southwest Pilots' Association (McCartney, 2010).The Life-Cycle?? ?Southwest's $175 million investment in the Next Generation technology initiative has taken three years of preparation, involved re-training 6,000 pilots, and required cockpit upgrades for all aircraft (McCartney, 2010). Southwest's re-training involved putting each pilot through a ground-school course that developed familiarity of the new cockpit equipment. It also required the purchase of a new flight simulator that enabled each pilot four hours of flying simulated approaches in order to seamlessly transition pilots skills to comfortably use the new RNP procedures. In addition, Southwest rewrote all of its flight procedures in order to accommodate the full implementation of RNP routes.??? ?Southwest is currently in the mature stage of the life-cycle to implement its RNP initiative as it has already started using RNP routes. Southwest did an impeccable job conducting research into the cost-saving benefits of RNP routes, planning its initial strategy for implementation, developing the necessary software and equipment, and preparing the pilots for transition through training. The final stage for this initiative is follow-through to ensure the initiative is successful by achieving new RNP routes from the FAA, getting a return on its $175 million investment, and continuing to save money on operating costs to increase revenue.?Alternatives, Recommended Strategy & ImplementationSouthwest has benefitted immensely from being proactive. For example, Southwest overhauled its frequent flyer program and used the number of flights as a credit rather than the number of miles, which was unique to most airline programs, and was the first to offer ticketless travel. Southwest continues to be proactive through its investment of new technologies and software to implement RNP routes instead of waiting for the FAA to establish standardized routes and procedures. Currently, RNP has allowed Southwest preferential approaches in Chicago’s Midway airport, keeping flights on time, which is a key metric of Southwest’s success. The FAA has begun to give preference to airlines with RNP routes and as such, Southwest's aircraft no longer have to wait for departure and arrival times among the many other airlines. This enables its airplanes to stay up longer in the air rather than on the ground, which increases revenue for Southwest.??? ?By investing $175 million into new RNP technology, Southwest planned to maximize profits by utilizing the technology to save on fuel costs and reduce delays. However, this cannot be done through Southwest alone. There are multiple alternatives Southwest can pursue in order to successfully complete its RNP initiative and achieve a return on its investment.??? ?Alternative: "Do nothing"Southwest has already done the research, planning, and implementation of RNP routes. One could argue that it has done all that it can for its RNP initiative and now its success depends solely upon the FAA and that Southwest's hands are tied. Southwest could simply sit around and wait for the FAA to slowly develop and implement new RNP procedures. This is assuming the FAA will eventually provide new procedures rather than using overlays. However, leaving the fate of a $175 million investment in the hands of the FAA is not recommended and Southwest should continue to be proactive. ? ?Alternative: "Do the work for the FAA"One of the main challenges, as well as frustrations, Southwest has faced with incorporating RNP into their fleet has ultimately been with the FAA. Rather than designing new RNP flight routes and procedures that would maximize the value of Southwest's technology upgrade, the FAA has been unable to implement this yet and instead uses existing procedures for the new flight paths, which negates the use of the new technology (McCartney, 2010). Along with flight paths, the FAA is required to develop procedures, which cost approximately $20,000 per new RNP procedure developed (Dunlay, 2006).? Currently, the FAA has authorized more than 265 procedures, totaling $5.3 million since 2001 (FAA II, 2009). ?However, the FAA has not been coordinating this effort alone. ?It has outsourced private contractors to design and produce the new approaches and departures to expedite the process. ?From there, the FAA will approve the new designs. ?This approach has stimulated the market for third-party development. ??? ? ?Despite the FAA modernization efforts, it has not been fast enough for Southwest or other airlines. ?Critics have accused the FAA for taking the "quantity over quality" approach (Schofield, 2009). With Southwest and other carriers investing in new technology, the FAA has overlooked areas that could generate quicker deployment. ?The agency has been exceeding their goals of 25 per year for new RNP approaches without any improvements by only concentrating on overlaying the existing flight routes (Hughes, 2007). The FAA's strategy offers carriers minimal value and should use new tools to redesign the airspace. However, the FAA has been working with Mitre Corporation to approach the incorporation of the RNAV/RNP system. ?The concentration on the overlaying approaches of flight paths will have huge efficiency gains and will enable greater precision for approaches in all weather conditions.For Southwest and other airline carriers, the FAA is an essential component in designing new flight routes to maximize the benefits of RNP. ?However, because not all airlines are using RNP procedures, the FAA is experiencing difficulty standardizing the implementation of combined RNP and legacy procedures. Southwest could research and develop air-traffic control solutions for the FAA regarding the use of all airline routes and assist with the development of the procedures, much like Alaska Airlines did. ?Former technical pilots from Alaska Airlines formed Naverus, which provided RNP procedures that were eventually approved through the FAA for flights in and out of terrain-challenged airports (Hughes, 2007). Through those efforts, Naverus has become a third-party leader in RNAV/RNP and was approved by the FAA to assist airlines and airports in applying for RNP procedures. In addition to the U.S., Naverus is currently assisting the growth of RNP technology in the Asian - Pacific Region as well as Canada by developing 350 RNP procedures that are used by Air China, Air New Zealand, Qantas, Virgin Blue, and WestJet (Hughes, 2007).??? ??Although Southwest could develop air-traffic control solutions for the FAA to help establish new RNP procedures, this approach is not recommended simply due to the large capital requirements and vast amount of effort that would be required to devote the coordination and collaboration of all airlines. ?Straying off its successful business model by devoting time, money, and effort in doing work for the FAA could cost Southwest its competitive edge and lead to the loss of unrecoverable capital. Instead, Southwest should hire a company like Naverus to develop RNP procedures and provide solutions to the FAA. This will save Southwest the headache of involving itself in FAA procedures and ensure Southwest's routes are taken into consideration with minimal costs or changes.??? ??Alternative: "Develop key partnerships"While the FAA has authorized some airlines the use of RNP routes, it must develop new air-traffic control procedures for those routes. However, the FAA is not progressing quickly and airlines using RNP routes are not receiving the cost-savings benefit due to the fact that they must continue to use legacy procedures for approaches. It is recommended that Southwest partner with other airlines using RNP routes to help put pressure on the FAA to implement new RNP procedures rather than overlays over existing ones. Other airlines investing RNP approach procedures, besides Alaska Airlines and Southwest, are JetBlue, Continental, Delta, WestJest, Quantas, and Air New Zealand (Dunlay, 2006). Southwest should develop a key partnership with these airlines for a dual purpose. First, Southwest will be able to work collaboratively with partners in order to identify and work to eliminate conflicts with future RNP routes. Second, the partnership will have a stronger voice in communicating its displeasure with the slow progress of the FAA. By reducing the number of individual complaints to the FAA by airlines, this not only minimizes the workload for the FAA in addressing complaints but also directs the FAA's attention to a singular issue with multiple stakeholders, which may help focus efforts to resolve it.?Alternative: "Lobby Congress"In addition to creating key partnerships with other airlines, it is recommended that the conglomeration of partnered airlines lobby Congress for the FAA to expedite its progress in establishing new RNP routes and procedures. In addition, Southwest, along with other airlines, should continue to adamantly voice requests to Congress for subsidization since it has proactively implemented RNP routes and purchased technology upgrades well in advance of the pending FAA Air Transportation Modernization and Safety Improvement Act. Southwest should be rewarded for its incentive to anticipate flight regulations and voluntarily making upgrades and should apply for reimbursement by the government. ?Alternative: "Implement green marketing"Southwest has already begun a grass roots campaign called "Southwest Cares," to show its support to becoming more "green" and to increase its market share. By using public relations, Southwest has incorporated being "green" with the use of the RNP technology through reduced noise pollution and greater fuel efficiency that reduces carbon emission. Advertisements can be seen on Southwest's website, as well as in its Spirit Magazine, discussing current sustainability initiatives and allowing passengers and the public to become more aware of its efforts regarding the reduction of harmful emissions. While waiting for the FAA to create new flight paths and procedures, Southwest is trying to recapture its investment in RNP through goodwill and increased flight purchases by consumers. Eco-friendly consumers are interested in knowing if their purchases contribute to environmentally sustainable activities and will hopefully chose Southwest when booking flights due to its green marketing, and hopefully this can bolster Southwest’s lobbying efforts under the Obama administration. This will increase Southwest's market share and subsequently produce an increase in flights thus leading to increased revenue. It is recommended that Southwest continue its green marketing in order to help offset the costs of its Next Generation technology initiative.?Alternative: "Get local buy-in"The implementation of new RNP routes means that, depending on the day and weather conditions, neighborhoods directly under the new flight paths will encounter a dramatic increase in the number of planes flying over their residences. This may be shocking to neighborhoods that have never had airplanes fly directly overhead, especially since the airplane must use existing approach procedures that create a lot of noise due to the engines turning on and off. In order to mitigate potential outcries from affected neighborhoods, Southwest should notify these areas of the new flight paths and what to expect in order to increase awareness of any concerns they’d have and mitigate them before it becomes a major public concern. For example, Southwest could identify that the intended use of its RNP routes would actually reduce the noise overhead in addition to highlighting the environmental impacts through greater fuel efficiency. Southwest could also negotiate with local governments to provide funding for community areas or education in return for support of its new flight paths and help liaison with affected neighborhoods. However, if local residents do not tolerate the change, Southwest could also use that to their advantage by empowering local governments to voice their complaints to Congress, which would put pressure on the FAA to develop new RNP procedures rather than using existing ones. ?Unintended Consequences & ManagementFor Southwest to remain profitable and successful, it must maintain its position as the industry leader with on-time departures and arrivals. The investment of RNP technology provides Southwest a competitive advantage over other carriers through priority arrival approaches; however, it is imperative that Southwest be able to enjoy all the benefits expected from the new technology such as an increase in fuel efficiency that reduces fuel expenditures and carbon emissions in order to recapture its investment. If there is a spike in the price for fuel, Southwest may not be able to get a return on its investment in upgrades as soon as planned. If this occurs, Southwest may need to consider its options. In order to regain momentum for a return on investment, Southwest could expect a longer timeframe to make a profit, look at additional alternatives for creating more efficient operations or procedures, increase green marketing to obtain more flight purchases, or consider possible layoffs of pilots or employees. ??Another possible unintended consequence is that Southwest pilots may go on strike because they want to keep their critical flying skills and not be replaced by technology. The implementation of RNP is contrary to Southwest's philosophy of keeping pilots skills sharp and alert by encouraging manual takeoffs and landing rather than through autopilot computers (McCartney, 2010). ?Although RNP route approaches may be flown manually, the satellite precision required often infers the use of autopilot. ?Initially, Southwest pilots were upset that the new routes and procedures would mean their aviation skills would start to depreciate and they resisted the technology upgrades, however Southwest has continued to retain its philosophy and still requires manual flying to retain critical skills if something goes wrong or the electronics short-out. Southwest should continue to monitor the satisfaction of the training for RNP procedures as well as the manual flying skills of its pilots to ensure its pilots are well prepared for any situation that may require manual override.?An additional unintended consequence is that the FAA may never implement standardized RNP routes and procedures and Southwest invested in $175 million to upgrade its technology, train its pilots, and implement new flight paths while still using the existing air-traffic control procedures for non-RNP routes. Although it is more likely that the FAA will eventually make the necessary technology upgrades itself and establish new procedures, it may not be accomplished in the expected timeframe for Southwest to receive a return on investment. Again, Southwest should either plan for a longer timeframe to make a profit or seek revenue-increasing alternatives. Additionally, Southwest could continue to partner with other airlines and lobby Congress to pressure the FAA to implement these changes.?The final two unintended consequences that may arise are technology-sensitive since RNP flight paths are dependent upon the use of satellites and GPS. If the satellites in space break-down there will be a significant amount of problems that arise around the world if that happens, but specifically for Southwest, it may have to revert to manual flying of takeoffs and landings. Southwest should also consider going back to the original legacy flight paths versus the RNP routes. Since RNP relies on GPS, it is also possible passengers onboard may possess and use a GPS jamming device in order to disrupt the signal. This is a very dangerous method and could potentially be a future terrorist tactic. Therefore, Southwest should install anti-jamming equipment as a safety precaution and push for regulation to outlaw those devices onboard, similar to that of sharp, explosive, or flammable objects. ConclusionSouthwest Airlines’ strategic decision to modernize its entire fleet to become one of the pioneering airlines of the RNP system shows that it is capable of continuing to make strategic, industry-leading business decisions that should prove to show positive returns on their initial investments. ?Taking advantage of the latest technological advancements, RNP and the broader NextGen implantations appear to be the next steps in the evolution of the commercial airline industry. Southwest must continue to champion the propagation of RNP, from both within the commercial airline industry to policy decision makers and ultimately to the general public at large—its core customer base. ?Barring significant public policy or adoption setbacks by larger, competing airline carriers, Southwest Airlines should be able to realize RNP as a strong competitive advantage, and financial reward, from its forward-thinking fleet upgrade.Works CitedAA Tests Next-Gen Tech for Carbon Emissions, Fuel Savings. (2010, April 9). Retrieved April 24, 2010, from Environmental Leader: Airlines. (2006, May 15). Alaska Airlines Is First Carrier To Use RNP Precision Approach Technology At Portland International Airport . Retrieved April 24, 2010, from Alaska Airlines: , C. (2010, April 07). GPS-Guided Landing Tech Implemented At Last, Making Airliner Descents More Precise. Retrieved April 24, 2010, from Popular Science: , B. (2006, March 16). Near Term Potential for System Capacity Gains from RNP and RNAV Procedures. Retrieved April 24, 2010, from ISR.UMD.EDU: Aviation Administration (FAA). (2008). Delivering NextGen. Aviation Administration (FAA II). (2009, April 24). NextGen Goal: Performance-Based Navigation RNAV and RNP Evolution Through 2025. Retrieved April 24, 2010, from : NextGen. (2009, September 13). FAA NextGen Aircraft Technology Video. Retrieved April 24, 2010, from YouTube: . (2008, May 6). Aviation and the Environment: NextGen and Research and Development Are Keys to Reducing Emissions and Their Impact on Health and Climate. Retrieved April 24, 2010, from GAO: , D. (2007, April 15). FAA OKs Outsourcing of RNP Design. Retrieved April 25, 2010, from : , S. (2010, April 1). A Radical Cockpit Upgrade Southwest Fliers Will Feel. Retrieved April 3, 2010, from The Wall Street Journal: , D. (2010, March 17). Air traffic modernization on Congress' radar but funding isn't. Retrieved April 24, 2010, from Dallas News: , J. (2010, April 13). A Closer Look: Inside Southwest's front office RNP transition. Retrieved April 24, 2010, from Flight Blogger: (2009). FAA Air Transportation Modernization and Safety Improvement Act. In S.1451.Schofield, A. (2009, August 9). FAA Criticized Over RNAV/RNP Strategy. Retrieved April 24, 2010, from : ................
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