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Air Transportation A Management Perspective

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Presentation on theme: "Air Transportation A Management Perspective"— Presentation transcript:

1 Air Transportation A Management Perspective

2 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

3 Aviation :An Overview Characteristics of the industry
Economic profile of industry Contribution to the Economy Contribution to the Business Impact on Travel Industry

4 Historical Perspective
Historical sketch of USA airline and general aviation Airline Deregulation Act. 1978 Post deregulation Evaluation 911 effects A new Era in Aviation Boeing Low Cost Carriers Business General Aviation

5 Air Transportation : Regulators and Associations
DOT FAA TSA NTSB DOT : Department of Transportation NTSB: National Transportation Safety Board FAA Federal Aviation Administration JAA ICAO : International Civil Aviation Organization IATA International Air Transportation Aviation TSA: Transportation Safety Administration

6 The General Aviation Industry
Factor Affecting G.A. Uses of Aircraft Airport Market

7 The Airline Industry Structure of the Airline Industry Regional Carries Major and National Carries Role of Airline industry Airline Certification

8 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

9 Airline Management and Organization
Planning Organizing Staffing Directing Controlling

10 Forecasting Methods Objectives Analysis Planning Control
Time Series and Trend Analysis Smoothing the Variation Judgment Methods

11 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

12 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

13 Air Cargo Historical Overview Air Freight Rates
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

14 Principles of Airline Scheduling
Internal Factors External 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 Airport Authorities Local Communities Hotel Operators Travel Agents Air Freight Shipper

15 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

16 Airline Labor Relations
35 % Operating Cost Airline Union Bargaining Process Trends of Human Resource Management

17 Airline Financing Sources of Funds Cash Management Financial Planning
Internal Sources Commercial Bank Finance and Life Insurance Companies Investment Bank Leasing Vendor Financing Venture Capital Cash Flow Cash Budgeting

18 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



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