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Introduction to the Airline Industry: This eBook contains everything there is to know about the airline industry

Introduction to the Airline Industry: This eBook contains everything there is to know about the airline industry

Von Iata

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Introduction to the Airline Industry: This eBook contains everything there is to know about the airline industry

Von Iata

Bewertungen:
4.5/5 (16 Bewertungen)
Länge:
601 Seiten
5 Stunden
Herausgeber:
Freigegeben:
Nov 1, 2006
ISBN:
9789292335809
Format:
Buch

Beschreibung

This book contains everything there is to know about the airline industry:

- Learn the history, current scale and scope of the airline industry
- Understand the specifics of the airline business
- Gain knowledge on the multiple operational and business functions of airlines
- Receive insight on the responsibilities of key airline personnel

Content:
- History of the Airline Industry
- The Airline Industry Today
- Airline Organizational Structure and Personnel
- Airline Business Model
- Airline Safety and Security
- Airport Functions
- Air Navigation Service Providers (ANSPs) Functions
- Airline Fleet
- Airline Manufacturers and Vendors
- Government and Industry Agencies

Whether you have an avid personal interest in the airline industry, or you want to earn an IATA certificate, this book has everything you need to guide you through the basics of the industry.
Herausgeber:
Freigegeben:
Nov 1, 2006
ISBN:
9789292335809
Format:
Buch

Über den Autor

ITDI is the training arm of IATA and it's mission is to develop the human capital for tomorrow's air transport industry.

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Introduction to the Airline Industry - Iata

Glossary

INTRODUCTION TO THE AIRLINE INDUSTRY

Welcome to the exciting world of the airline industry! In a rapidly changing environment, the airlines have to adapt to economic downturns, technological changes, market changes, airline commercial deregulation, and the worldwide trend toward privatisation of the industry. These pressures have a significant impact on how airlines conduct their business, not only from a financial perspective but also from an operational standpoint.

In these challenging times, and with emerging competition from a variety of areas, it is of the utmost importance that airlines recruit new employees and provide current employees with the best available knowledge and skills.

This course was prepared to provide you with a solid overview of the airline industry and with tools to apply your knowledge and skills to your particular airlines. It is designed to be useful not only to you but for the organisation you work for.

For writing purposes, the text assumes the reader works in an airline environment. However, this course is intended for anyone who has an interest in the airline industry, whether they are currently working at an airline, are planning to do so, or simply have a personal interest in this area.

Course Structure

To help you successfully complete and enjoy the course, we have structured the content into nine modules. Each module has the following parts.

Module Overview

At the beginning of each module you will see an introduction that provides an overview of the content of the module and highlights its objectives.

Lessons

Each module is made up of three to six lessons, and each lesson includes the following.

Lesson Overview

Each lesson begins with an overview of the topics to be covered.

Units

Each lesson covers from one to six units.

Progress Checks

At the end of each unit is a short exercise, made up of multiple choice, short answer, or matching questions. These are designed to provide you with the opportunity to see if you understood the material. An Answer Key is provided so that you can check your responses.

Lesson Summary

Each lesson ends with a summary of the main points.

Module Summary

Each module ends with a summary drawing together the main points of each lesson.

Apply Your Learning

This section follows the Module Summary and provides you with the opportunity to apply what you have learned within your own context. You will get the most from this course if you make the effort to complete these exercises.

Key Learning Points

Key Learning Points are highlighted throughout the text and are designed to emphasise particularly important issues and conclusions.

Did You Know?

Additional interesting facts related to the topic are found under this heading.

Glossary

At the end of the course, there is a GLOSSARY section, which explains the most important terms used throughout the modules. The words that are in italics throughout the text are defined in the glossary.

Recommended Reading & Websites

Should you wish to further research a given topic, a list of recommended readings is included at the end of this manual, as well as a list of websites you can visit.

Module 1

The Airline Industry Today

1.0 The Airline Industry Today

MODULE OVERVIEW

What do we mean by the airline industry? What does it include? What types of services are provided? Who is involved? These are some of the questions we will answer for you in this module. We will look at both passenger and air cargo transportation, as each is important for an understanding of the industry as a whole. You will also learn about the role of the airlines as a stimulant for global employment, and how air transportation has been a positive influence in world development. This module will introduce you to basic concepts that will serve as the foundation for the rest of the modules in this course.

Module Learning Objectives

Upon completion of this Module, you should be able to:

•   Describe what is meant by the airline industry. (Lesson 1)

•   Describe air cargo transport and list the types of goods flown. (Lesson 2)

•   Describe the main economic and social impacts of the airline industry on society. (Lesson 3)

1.1 The Airline Industry

LESSON OVERVIEW

This lesson will provide you with an overview of how the airline industry fits in with the air transportation industry. It will also give you an overview of the industry's scope and the types of services provided. You will learn about the fundamental distinction between scheduled and non-scheduled flights. We will discuss the three main types of scheduled service, and the two basic types of air travellers.

Lesson Learning Objectives

Upon completion of this lesson, you should be able to:

•   Describe what is meant by the airline industry and its scope.

•   Describe the difference between scheduled and non-scheduled flights.

•   List and describe three categories of airlines that provide scheduled service.

•   List and describe the two basic types of air travel for passengers.

1.1.1 What is the Airline Industry?

In the simplest of terms, the airline industry is a system of transportation. It is part of a much larger transportation industry, which focuses on moving people and goods from one place to another. A comparison of the most important modes of transport shows us that, globally, the most widely used modes of passenger transport are: the automobile, followed by buses, air, and railways. On the other hand, the most widely used modes of freight transport, for moving goods or cargo are: sea, followed by road, railways, oil pipelines, inland navigation and air freight.

Modes of transportation have common features. For example, they each require an infrastructure, including transport networks and nodes or terminals; vehicles as the means of transportation; and operations to control the transportation systems. In the case of airlines, we refer to the transport networks as the airways, and the terminals as airports. The vehicles used are different types of airplanes. Air traffic control refers to the operations used to control air transportation. We will learn more about these specific terms later in the course.

An airline's basic function is to transport people and goods from one location to another using the airways. The airline industry consists of organisations providing this service for passengers and/or cargo. An airline company owns or leases large planes generally referred to as commercial transport planes to supply this service. Most of these planes are designed specifically to carry passengers and some cargo. Other commercial transports are designed to carry only cargo. The scale and scope of airline companies thus range from those with a single airplane carrying cargo, through full-service international airlines operating hundreds of airplanes in their fleet.

Air transport provides the only global transportation network for passengers and cargo, making it essential for global business operations and for personal travel and tourism. It provides substantial economic benefits by connecting people and businesses around the globe. It also provides significant social benefits by facilitating greater communication between different parts of the world and by providing greater access to remote areas.

Key Learning Point

An airline's basic function is to transport people and goods from one location to another using the airways. The airline industry consists of organisations providing this service for passengers and/or cargo.

Progress Check

Write the missing word(s) in the space(s) provided.

1. An airline's basic function is to transport _______ and ______ from one location to another using the airways.

2. List three features that transportation systems share:

a. ______________________________________________

b. ______________________________________________

c. ______________________________________________

Answer Key

1. An airline's basic function is to transport people and goods from one location to another using the airways.

2. a. Infrastructure

b. Vehicles

c. Operations

1.1.2 Scope of the Airline Industry

The airline industry itself is also part of another larger industry, the aviation industry, which refers to the range of activities involved in building and flying aircraft. These include aircraft manufacturing, airport operations and aviation support industries.

Aircraft manufacturers produce commercial transport planes, the smallest of which carry from 20 to 100 passengers and the largest of which can carry several hundred. Most of these planes are jet planes with two, three, or four engines. Manufacturers also produce general aviation planes, which are small airplanes with one or two engines. Although some of these smaller planes have jet engines, most are propeller driven. These light planes are used for a variety of general aviation activities, such as flight instruction, inspection of telephone lines, spraying field crops or air taxi services. The latter serve small communities and provide connecting flights to larger airports. Sometimes these are referred to as commuter airplanes. Light planes are also used by businesses to fly their employees to out-of-town meetings. Manufacturers also produce military planes, which include bombers, fighters and military transports owned by governments of countries.

Airport operations refer to the ground facilities required for air travel, including runways and navigation aids. While you may be familiar with larger airport facilities, many are small airfields that are able to serve only light planes, helicopters or other specialised aircraft such as seaplanes.

Aviation support industries provide a wide range of services and supplies to airlines and airports. For example, some companies supply fuel for airplanes; others furnish maintenance, or repair, services. A variety of food suppliers prepare meals to be served on flights. Other companies servicing the airport involve ground transportation, including van, shuttle or taxi services. Freight forwarders organise arrangements for shipping air cargo. There are specialised professional industries providing a variety of services such as: flight insurance and weather information, to name a few.

Travel agents are an important contributor to the airline industry. The formal part of their responsibilities includes being authorised to sell and issue airline tickets. Accredited agents accept payments from customers on behalf of the airlines whose tickets are issued. It is essential that customers and airlines can rely on those agents for tickets to be issued according to the required standards, and for payments to reach the airlines in a timely manner. Travel agents work hard on behalf of the consumer. The role of a travel agent is to make the process of going on a trip – whether for business or pleasure – a stress-free and memorable experience. Travel agents spend time not only searching for affordable prices and booking tickets, but also personalising their services for individual clients.

An even bigger picture of supporting industries includes the hospitality service industries, such as hotels, car rentals, tourism agents and cruise operators who attend to the needs of air travellers once they reach their destinations.

Key Learning Point

The airline industry itself is part of another larger industry, referred to as the aviation industry, which includes the range of activities involved in building and flying aircraft. These include aircraft manufacturing, airport operations and aviation support industries.

Progress Check

1. List three industries that comprise the larger aviation industry, in addition to the airline industry.

a. _____________________________________________

b. _____________________________________________

c. _____________________________________________

Write the missing word(s) in the space(s) provided.

2. An important contributor to the airline industry is the ______________, who is authorised to sell and issue airline tickets.

Answer Key

1. a. Aircraft Manufacturing

b. Airport Operations

c. Aviation Support

2. travel agent

1.1.3 Types of Airline Service

There are a number of ways to categorise airline service. Here we will differentiate between two main types of airline service, scheduled flights and non-scheduled flights.

Scheduled flights take place using predetermined routes according to a planned timetable. These timetables refer to regular, published schedules. As a customer, you are bound to the airline's schedule. Airlines use wide or narrow body commercial transport aircraft for such flights, depending on their operating needs and aircraft specifications. Much of the content we cover in this course will deal with scheduled flight service and operations.

Non-scheduled flights are typically charter flights for travellers who want to hire a plane to fly to a specific place at a specific time. A charter airline operates these flights that take place outside normal schedules through hiring arrangements with a particular customer.

As it will be explained in lesson 1.2, some airlines, in addition to their scheduled passenger flights, operate scheduled or charter cargo flights (using cargo aircraft). However, other airlines operate only cargo aircraft, on a scheduled or charter basis.

The International Air Transport Association (IATA), the governing body that creates regulations and standards for international air transport, focuses primarily on scheduled traffic. (You will learn more about IATA in Module 2.) Flights by IATA members represent 94% of the world's international scheduled traffic. IATA is now comprised of some 260 member airlines from 136 countries. According to the latest IATA statistics, in 2004 there were more than 1.9 billion scheduled passengers and 39.5 million tons of cargo transported, of which 25 million tons were international.

Aviation encompasses two categories: civil and military. Civil aviation represents all non-military aviation both private and commercial. Civil aviation includes two major categories:

•   Commercial air transport, encompasses all passenger and/or cargo scheduled or charter flights, operated by a company that receives remuneration for the transport

•   General aviation (GA), encompasses all other civil flights including private aviation and recreational flights (gliders, powered parachutes etc).

Key Learning Point

The two main types of airline service are scheduled flights and non-scheduled flights. Scheduled flights take place using predetermined routes according to a planned timetable.

From a global perspective, there are over 900 airlines worldwide with an Air Operating Certificate, which means they have been legally certificated to operate an airline.

Progress Check

1. List the two main categories of civil aviation.

a. ____________________________________________

b. ____________________________________________

Write the missing word(s) in the space(s) provided.

2. __________ flights take place using predetermined routes according to a planned timetable.

Answer Key

1. a. Scheduled flights

b. General aviation

2. Scheduled

1.1.4 Scheduled Flight Service

The airlines that provide scheduled flight service can be categorised as major airlines, low cost carriers or regional airlines. Major airlines are usually those large airlines that connect the major cities of the world. These airlines have the capability to handle international destinations and can fly just about anywhere in the world. Generally these airlines represent the bigger names that you often hear about in the news. Typically, these airlines are also the largest employers in the airline business.

Low cost carriers (LCCs), also known as no-frills airlines, offer generally low fares in exchange for eliminating many traditional passenger services. The term originated within the airline industry referring to airlines with a low – or lower – operating cost structure than their competitors. The term has since come to define any carrier with low ticket prices and limited services regardless of their operating costs.

Regional airlines, on the other hand, represent a type of airline service that is intended to feed the major airlines. As feeder airlines, their role is to bring passengers to the major airports, where they will connect for longer distance flights on larger aircraft.

Regional airlines also are sometimes formed to offer transportation service between small, isolated communities unable to support larger aircraft. In these cases it is referred to as a commuter airline. In some cases the airline is the only practical connection to a larger town. Peninsula Airways, for example, links the remote Aleutian Islands of Alaska to the city of Anchorage. In general small carriers are more prevalent than major airlines in developing countries/regions. In parts of the world that do not have highways or railroads, these light aircraft are used to carry both passengers and cargo.

Many large airline companies, particularly in the U.S., are associated with a regional airline that typically uses the same company logo. These commuter airlines may even be subsidiaries of the major airline. In Europe, the regional airlines serve the intra-continental sector. This means that they offer essential connecting services between many of the continent's peripheral or secondary regions, allowing passengers to avoid transfers at larger airports.

Like in the U.S., some of these regional airlines are also subsidiaries of national air carriers. The rest represent independent airlines organised in innovative ways. For example, they may be structured as membership clubs which customers must join. Examples of European regional airlines include: Aer Arann, VLM, EuroManx, and Cimber Air.

You may also see airlines being classified more specifically as to the routes they take. For example, intercontinental (between continents), intracontinental (within a continent), international (between countries) or domestic (within a country) describe these different types of routes.

Most countries have at least one airline. Airlines can be either owned privately or by the government. Originally, the airline industry was either partly or wholly government owned. This is still true in many countries, but in the United States all major airlines are private. Many countries have one or more government-owned airlines, such as Australia's Qantas Airways.

Key Learning Point

The airlines that provide scheduled flight service can be categorised as major airlines, low cost carriers or regional airlines. Major airlines are usually those large airlines that connect the major cities of the world. Regional airlines, on the other hand, represent a type of airline service that is intended to feed the major airlines. Low cost carriers usually provide point-to-point service with no additional amenities.

Progress Check

1. List the three categories of airlines that provide scheduled flight service.

a. ____________________________________________

b. ____________________________________________

c. ____________________________________________

2. Which of the following describes regional airlines? Circle all answers that apply.

a) Connect the major cities of the world

b) Are known as feeder airlines enabling passengers to make connections

c) May offer transportation service between small, isolated communities

d) Can be subsidiaries of national air carriers

Answer Key:

1. a. Major airlines

b. Regional airlines

c. Low cost carriers

2. b, c, d

1.1.5 Non-Scheduled Flights

As mentioned previously, most passenger travel takes place on scheduled flights, which are made over certain routes according to a published timetable. Non-scheduled flights are mainly charter flights for customers who want to hire a plane to fly to a particular place at a particular time.

Air charter service is a growing part of the airline industry. Markets for these services include athletic teams, corporations and government agencies. Charter airline companies can be found all over the world. They tend to be cooperatively linked in a worldwide contact group allowing a company to help with contacts or arrangements anywhere in the world through their associates.

With chartered aircraft, a passenger may have access to many more airports than with scheduled flights. In Europe, for example, there are over 2,000 airports, but only 10% are reached by scheduled airlines. There are over 5,000 airports across the United States; the scheduled airlines, however, serve roughly 4% of them.

Key Learning Point

Non-scheduled flights are mainly charter flights for customers who want to hire a plane to fly to a particular place at a particular time.

Progress Check

1. Non-scheduled flights are mainly ________ flights for customers who want to hire a plane to fly to a particular place at a particular time.

Answer Key

1. charter

1.1.6 Passenger Travel

There are essentially two main types of air travellers, those who travel for business and those who travel for pleasure, that is, the leisure market.

The business market consists of those passengers who need to travel for the purpose of attending work-related meetings, visiting clients or otherwise expanding and supporting the financial objectives of their business concerns. The rapid growth of world trade in goods and services, as well as global investment, and the relative ease of air travel, have all contributed to the growth of business travel. Companies have become increasingly globalised with customers, supply and production chains located all over the world. This, in turn, has spurred travel growth as managers have been required to oversee these dispersed business ventures and visit their customers. Business, or corporate, aviation refers to the transportation of passengers, as well as cargo, for business purposes.

Some corporations have travel requirements extensive enough to justify owning their plane and having crew on staff. Others will opt to charter for their corporate needs. Companies use these planes, on an as needed basis, to fly their executives, managers, salespeople and other employees to meetings which are out of town. This provides a high convenience factor, allowing for greater efficiency. This type of executive travel mainly uses the facilities of smaller airports.

The leisure market, on the other hand, consists of passengers who travel for recreational, or personal, reasons. The availability of large commercial aircraft has made it convenient and affordable for people to travel further to new and exotic destinations, so promoting the growth of this market. In addition, many governments in developing countries have realised the benefits of tourism to their national economies. They invested heavily in the development of resorts and other infrastructure to entice tourists from the prosperous countries in Western Europe and North America to visit their countries. This brought in much needed foreign currency and investment. This influx of money, in turn, encouraged their own citizens to start to travel as their economies, and therefore their own personal incomes, grew. As a result there is continual growth in the international tourist market.

Key Learning Point

There are essentially two main types of air travellers, those who travel for business and those who travel for pleasure – the leisure market.

Progress Check

Write the missing word(s) in the space(s) provided.

1. The ________________ market consists of those passengers who need to travel for the purpose of attending meetings, visiting clients or otherwise expanding and supporting the financial objectives of their business concerns. The __________ market, on the other hand, consists of passengers who travel for recreational, or personal, reasons.

Answer Key

1. The business market consists of those passengers who need to travel for the purpose of attending meetings, visiting clients or otherwise expanding and supporting the financial objectives of their business concerns. The leisure market, on the other hand, consists of passengers who travel for recreational, or personal, reasons.

Lesson Summary

An airline's basic function is to transport people and goods from one location to another using the airways. The airline industry consists of organisations providing this service for passengers and/or cargo. It is itself part of another larger industry, referred to as the aviation industry, which includes the range of activities involved in building and flying aircraft. These include aircraft manufacturing, airport operations and aviation support industries.

The two main types of airline service are scheduled flights and non-scheduled flights. Scheduled flights take place using predetermined routes according to a planned timetable. Non-scheduled flights are typically charter flights for travellers who want to hire a plane to fly to a specific place at a specific time.

The airlines that provide scheduled flight service can be categorised as major airlines, low cost carriers or regional airlines. Major airlines are usually those large airlines that connect the major cities of the world. Low cost carriers usually provide point-to-point service with no additional amenities. Regional airlines, on the other hand, represent a type of airline service that is intended to feed the major airlines.

There are essentially two main types of air travellers, those who travel for business and those who travel for pleasure – the leisure market.

1.2 Cargo Transport

LESSON OVERVIEW

In this lesson you will learn about another key aspect of the airline business, that is, air cargo, and how it is transported. You will also find out about the role of the freight forwarder, which is becoming increasingly important with the growth of the air cargo market.

Lesson Learning Objectives

Upon completion of this lesson, you should be able to:

•   Describe what is meant by air cargo transport.

•   List the types of air cargo goods.

•   Describe the role of the freight forwarder.

1.2.1 Air Cargo

As we mentioned earlier, more than 40 million tons of air cargo (or air freight) is moved on a yearly basis. Almost anything can be shipped by air, including letters, packages, cars, horses, and construction equipment.

Air cargo can be transported in a variety of ways, including within passenger airline space. It is a major user of free belly space, that is, the portion of the aircraft that is not being occupied for passengers or their luggage. Just about every passenger flight carries some freight along with the passengers and their baggage. Commercial airlines can make from 5 to 10 percent of their revenue from hauling freight.

When a package is shipped on a passenger flight, it is usually consolidated with other freight and packed into special containers

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  • (1/5)
    The book should be checked and then uploaded. The pages are blank in between.
  • (4/5)
    Good Book....I hope there would be much easier language .
    So that everyone could understand easily.