1. Aviation Industry

2. Aviation Industry Learning Objectives :
History of the aviation industry
Understand the commercial planes configurations
Define airline industry terminology

3. Aviation history
By 1917, seventeen regularly operating airlines in Europe, Africa, Australia, and South America
Some airlines from that era that are still operating include: Royal Dutch Airlines (KLM), SABENA World Airlines, Lufthansa, and Qantas. Americans viewed air travel as a dangerous sport, not a safe means of transportation.

4. Aviation History
By the 1920's governments started to form national airlines through combining a few private airlines. One such case is the British government who formed Imperial Airways.

5. Aviation Industry described as building and flying aircraft.
Two sectors :-
Military :- aircraft flown by a nation’s air force and other branches of its military

6. Aviation Industry
Civil :- divided into domestic service and international service
Domestic :- flight must start and end within the borders of the same country e.g. Malaysia, USA, India, Australia
ii) International :- flight starts in one country and ends in another e.g. SIN-LAX

7. Airline growth
Surplus of military planes left after World War I, were converted to civilian use
In 1919, bombers were being converted in Europe to form over twenty small new airlines
First regular international airline service was started by one of those. The company setup by Henry and Maurice Farman used old Farman bombers to make weekly flights between Paris and Brussels.

8. Airline Innovations Needed both larger, faster and safer airplanes
Many improvements were made, e.g. cockpit instruments, altimeters, airspeed indicators were installed in aircrafts in the 1930s that many believe it was the most innovative period in aviation history

9. Airlines’ Regulatory Bodies
1) Federal Aviation Administration (FAA)
controls’ operations, licenses pilots, inspects aircraft, and overseas maintenance
2) International Air Transport Association (IATA)
association made up of most of the world’s airlines, sets standards for civil aviation

10. Air Service and Routes
1) Scheduled service :- business or for vacation travel operating regularly as per fixed schedule, advertised times regardless of number of passengers
2) Chartered service :- tour operator/s chartered the whole plane or flight for a round trip e.g. Singapore-Tasmania- Singapore

11. Air Service and Routes
Privately owned jet :- business travellers (usually senior executives) fly on a corporate jet that their company owns, e.g. Donald Trump’s (Private Jet B727-23) owns NYC Plaza hotel and Atlantic City’s Taj Mahal Casino etc.
Wholly or fractional ownership may be less expensive than frequently buying first or business class seats for their executives

12. Types of flights and journeys
1) NonStop:- from origin to destination with no intermediate stops
2) Direct :- flight from origin to destination with one or more intermediate stops but still on the same aircraft
3) Connection :- passengers must change planes at the stopover city

13. Hubs and Spokes network
Precise timing of arriving flights to offer a seamless onward transfer to departing flights and to maximise the number of attainable connections for incoming passengers and to keep at the same time the connecting times within defined and acceptable limits.

14. Aircraft Two types of jet aircrafts :-
1) Narrow-body jet :- diameter of 3 to 4 metres, a single-aisle, seats arranged 4 to 6 seats, largest narrow-body jet carries about 280 passengers
e.g. B727, B737, B757, A320

15. Aircraft
Wide-body jet (jumbo jets) :- large airliner with fuselage diameter of about 6 metres and twin aisles, accommodate 200 to 600 passengers
e.g. B747, B767, B777, A380

16. Configuration
1) the way seating is arranged within the aircraft, e.g , 3-3
2) normally, narrow-bodied jet with one aisle, has two seats per row or 3-3 (common sight)
3) wide-body jet, has two aisles and normally comes with 3-4-3

17. Yield Management Also known as revenue management
Average amount of revenue earned per airline passenger divided by total number of passengers miles flown
Computer-assisted process that, by assessing supply and demand, enables airlines to arrive at pricing that yields maximum load factors and revenue

18. Yield Management Equals profit
Everything an airline does to make costs and revenues break even
Manipulate the variables to make as much profit as possible

19. Budget Airline History
Rollin King and Herb Kelleher developed the original concept back in 1971; a ticketless airline (Southwest Airlines) reducing frills and aiming squarely at offering the lowest possible prices
RyanAir through profit warnings and drifting balance sheet, decided to follow the same business model therefore, cutting the frills and focusing on the functionality.

20. Budget Airlines
The factors above contributed to the airlines' relative successes, the most pivotal development was EasyJet's (Switzerland) pricing model
market deregulation in 1997, the practices laid down by these EasyJet and RyanAir (UK) were adopted by many other budget operators both in the UK, throughout Europe and the world.

21. Budget Airlines In SE Asia it started about 3 years ago
Air Asia started in Malaysia followed by many others, e.g. ValuAir, Tiger Airlines, Jetstar, Phuket Airlines, Jet Airway and Air Sahara, Adam Air etc.

22. Budget Airlines’ Definition
Generally, budget airlines practice the followings:-
don't issue tickets
don't do connections
short check in times
promote and sell journey 'legs' separately
one class, budget
sell direct to the public
don't have free meals or entertainment

23. Codes and Jargon
To promote efficiency and conciseness in the transfer of information, the travel industry has developed a system of standardized codes

24. Code Sharing
Allow one carrier to sell seats on another carrier’s flights at a preagreed price e.g. SQ and NW with a four-digit flight no.
SQ relying on NW to reach out to US cities
NW relying on SQ to reach out to Asia and Australasia

25. City Codes
IATA assigns and administers all the three-letter location identifiers used by the airlines worldwide, e.g.,
Bangkok :- BKK
Los Angeles :- LAX
New York :- JFK
Singapore :- SIN

26. Classes of Service First Class (P or F class) Business Class (J class)
Economy Class (Y class)

27. Major Airlines with IATA call codes
Singapore Airlines (SQ)
Malaysia Airlines (MH)
Emirates Airlines (EK)
Qantas/British Airways (QF/BA)

28. Major airlines with IATA call codes
Japan Airlines (JL)
Thai Airways (TG)
SilkAir (MI)

29. Computer Reservation System (CRS)
Major systems are called host systems
Sellers of a computer system are called vendors
Travel businesses that lease access to a system are called subscribers

30. Computer Reservation System (CRS)
Airlines that do not host a system but want their information displayed are called cohosts.
Cohosts pay to have their information displayed in the host’s computer system. Some of the low-fare carriers have chosen not to participate in the systems

31. Computer Reservation System (CRS)
Sabre (USA)
Apollo/Galileo (UA/European Airlines) Owned by Travelport which bought Apollo and Worldspan)
Worldspan (UK)
Amadeus (Europe) founded by Air France, Lufthansa, Iberia, and SAS
Abacus (Singapore)

32. The Airline Reservation
Flight itineraries
Effective/discontinued
Frequency codes
Minimum connecting times
Seat availability
Confirmation
Wait Lists

33. Methods of distribution
Airports, city ticket offices (CTOs) and telephone networks
Travel agencies
The Internet
Post Office (Air Asia)
SMS (Air Asia)

34. Commonly used terms
Commercial flight :- seats sold by an airline to the general public
Gateway :- city and/or airport that serves an airline as its departure/arrival point for international travel

35. Commonly used terms
Frequent-flyer programs (FFPs) :- initiated by American Airlines in the late 1970s and quickly copies by almost every airline, frequent-flyer programs (FFPs) reward their members for the number of miles flown on an airline and its affiliates, e.g. Krisflyer, Mileage Plus, World Perks, Enrich, Royal Orchid Plus etc.

36. Summary
The aviation industry has evolved from an infant stage to a very competitive environment with an emerging of budget airlines.
The different types of commercial planes that are in the market and various common terms that are used in the day-to-day running of the aviation industry.