Contents
Aviation :An Overview
Historical Perspective
Air Transportation : Regulators and Associations
The General Aviation Industry
The Airline Industry
Economic Characteristics of the Airlines
Airline Management and Organization
Forecasting Methods
Airline Passenger Marketing
Airline Pricing, Demand, and out Determination
Air Cargo
Principles of Airline Scheduling
Fleet Planning : The Aircraft Selection Process
Airline Labor Relations
Airline Financing
International Aviation
Aviation :An Overview
Characteristics of the industry
Economic profile of industry
Contribution to the Economy
Contribution to the Business
Impact on Travel Industry
Historical Perspective
Historical sketch of USA airline and general aviation
Airline Deregulation Act. 1978Post deregulation Evaluation
• 911 effectsA new Era in Aviation
• Boeing • Low Cost Carriers • Business General Aviation
Air Transportation : Regulators and Associations
Regulators
DOT :Department of Transportation
FAAFederal Aviation Administration
JAA
NTSB:National Transportation Safety Board
TSA: Transportation Safety Administration
ICAO : International Civil
Aviation Organization
IATAInternational
Air Transportation Aviation
The Airline Industry
• Structure of the Airline Industry • Regional Carries• Major and National Carries• Role of Airline industry • Airline Certification
Economic Characteristics of the Airlines
Oligopolistic (Monopoly) Market Share Barrier to Entry Economic Characteristics
– High Technological Turnover– High Labor and Fuel Expenses – The Competitive Advantage of Schedule Frequency – Sensitivity to Economic Fluctuations – Close Government Regulation
Forecasting Methods
Objectives • Analysis • Planning • Control
Forecasting Methods• Time Series and
Trend Analysis• Smoothing the
Variation • Judgment Methods
Airline Passenger Marketing
• Marketing Mix in Airline • Market Segmentation • Computerized reservation systems (CRSs)• Business Class Service• Code Sharing • Hub and Spoke Service• Advertising and Sales
Promotions
Airline Pricing, Demand, and out Determination
• Trend in Domestic Passenger Airfares • No-Frill Airfare • Types of Passenger Fares • Airline Cost
– Direct Operating Cost – Indirect Operating Cost – Fixed and Variables Cost
• Load Factor
Air Cargo
• Historical Overview– Air Express – Overnight Air Express– Type of Carrier
• Air Freight Rates • Special Air Freight Services
– ULDs – Pickup and Delivery Services
• Factors Affecting Air Freight Rates – Cost of Services – Volume of Traffic – Value of Services – Competition
Principles of Airline Scheduling
Internal Factors• Equipment maintenance
requirements• Flight Operations
– Runway length– Fuel Capacity – Air Traffic Control – Crew
• Facility constraints– gate position– Ticket counter– Baggage handling– Ground equipment
• Marketing Factors
External Factors• Airport Authorities • Local Communities • Hotel Operators• Travel Agents• Air Freight Shipper
Fleet Planning : The Aircraft Selection Process
• Factors in Fleet Planning – The Pre deregulation – Hub and spoke system– Technical Aspects – Fleet Commonality – Long Range Aircraft
• Planning Process– Information Needed – Systems Constraints – Aircraft Evaluation– Financial Evaluation
Airline Labor Relations
• 35 % Operating Cost • Airline Union • Bargaining Process • Trends of Human Resource Management
Airline Financing
Sources of Funds
• Internal Sources• Commercial Bank • Finance and Life
Insurance Companies • Investment Bank• Leasing • Vendor Financing • Venture Capital
Cash Management
Financial Planning
• Cash Flow • Cash Budgeting
International Aviation
• International Air Law– The Warsaw Convention 1929 – The Chicago Convention 1944
• Freedoms of The Air– First Freedom (to overfly a foreign country without landing there)– Second Freedom – Third Freedom– Fourth Freedom– Fifth Freedom – Sixth Freedom – Seventh Freedom – Eighth Freedom
• Airline Alliances : One World , Star Alliances , Sky Team