1. The Scheduled Airline Industry : An Overview http://wb- air.narod.ru FOR MORE INFO...

2. The Structure Of The Industry  There are around 1200 scheduled airlines worldwide  One-third of these operating on international routes  These airlines very greatly in size and scope of operation  The US industry is the largest in the world by considerable amount. * Change to the top 50 airlines

3. NATIONAL FLAG CARRIERS  Airlines acting more or less as an arm of government  Airlines having to meet objectives that take precedence over efficiency and profit  A requirement to “ fly the flag”  A requirement to operate routes that were desired for social reason  A requirement to support local aircraft suppliers

4. Processes Of Privatization  Sale of a minority government stake to the private sector as happened with Finnair  Sale of majority in a number of stages as happened with Lufthansa  Sale of majority in one stage as happened with Kenya Airways  The outright sale of a 100 per cent government shareholding as happened with British Airways

5. Influences On The Price Of Air Travel  The date of travel (peak/ off-peak)  The length of stay (will it exceed a certain length/ include a Saturday night?)  The class of travel ( first/ business/ economy)

6. Continued...  The size of travelling group  The age of the traveller (adult/ child)  The route ( demand levels/ supply/ length of journey)  The purchase point ( method of distribution)

7. Marketing Initiatives : Frequent Flyer Programmes

8. Typical frequent flyer programme reward  Free flight/ ticket  Free companion ticket  Upgrade to business/ first class  Non-travel reward