1© 2009 by Nelson Education Ltd.

2 The Airline Industry Chapter 6

3© 2009 by Nelson Education Ltd. Objectives  Understand the size, scope, and importance of the transportation sector.  Compare the different types of regulatory environments.  Discuss the concerns about the natural and built environments.  Name aircraft and events significant in the development of the airline industry.

4© 2009 by Nelson Education Ltd. Objectives  Distinguish among types of aircraft in service today.  Compare air carrier aviation and general aviation.  Identify the parts of an airport.  Describe types of air routes.

5© 2009 by Nelson Education Ltd. Objectives  Compare multilateral agreements with bilateral agreements, and explain how they make the international air system work.  Discuss the role of the International Air Transport Association (IATA).  Discuss the effects of the 1978 Airline Deregulation Act in the United States, and of airline regulatory reform in the 1980s in Canada.

6© 2009 by Nelson Education Ltd. Objectives  List factors that influence airfares.  Explain how IATA calculates international airfares.  Discuss charter aviation in Canada.  Discuss the impact of the 1995 and 2005 Open Skies agreement between Canada and the United States.

7© 2009 by Nelson Education Ltd. Objectives  Discuss the restructuring of the airline industry, including emergence of new entrants and strategic alliances between and among airlines in different countries.  Compare the structure of the Canadian airline industry in the 2000s with earlier decades.

8© 2009 by Nelson Education Ltd. The Regulation-Deregulation Continuum  Entry  Exit  Rate/Fare Setting  Freedom to Manage  Mergers and Acquisitions  Open Market  Monopoly  Regulation  Deregulation  Regulatory Reform

9© 2009 by Nelson Education Ltd. Types of Aircraft Engine Types  Jet engines  Propeller driven Purpose  Short-haul  Short to medium range  Long-haul  Special purpose

10© 2009 by Nelson Education Ltd. Types of Air Service United States  Major air carriers  National air carriers  Large regional/ commuter carriers  Medium sized regional/commuter carriers Canada  Domestic  Scheduled international  Non-scheduled international

11© 2009 by Nelson Education Ltd. Airports  Canadian Airport Passenger Data  Canadian City Pair Passenger Data  Passengers by Sector –Domestic –Transborder –International

12© 2009 by Nelson Education Ltd.

13© 2009 by Nelson Education Ltd. Airport Layout  Terminal Building  Cargo Terminal  Control Tower  Hangars  Runways  Loading Apron  Taxiways

14© 2009 by Nelson Education Ltd. Regulation The International System  Worldwide Conferences  The Freedoms of the Air  Bilateral Agreements  International Air Transport Association  Traffic Conferences

15© 2009 by Nelson Education Ltd. Regulation Canada  The 1990’s  Airline Restructuring  Open Skies  New Entrants  Strategic Alliances  The 2000’s

16© 2009 by Nelson Education Ltd.

17© 2009 by Nelson Education Ltd. Regulation The United States  Economic Regulation  Deregulation  The New-Entrant Carriers  Effects of Deregulation  Safety Regulation  Industry Regulation

18© 2009 by Nelson Education Ltd. Factors Affecting the Price  Type of Journey –One Way –Round Trip –Circle Trip –Open Jaw  Type of Flight –Non-stop –Direct or through –Interline connection –Online connection –Stopover

19© 2009 by Nelson Education Ltd. Airline Industry Concerns  Concern for the Environment  Concern about Air Rage and Airport Rage  Consumer Complaints  Rising Costs

20© 2009 by Nelson Education Ltd. Career Opportunities  Flight Crew  Ground Crew or Staff  NAV CANADA Employees  Station Manager  Airport Manager  General Office  Sales Office