Transcript Document 7446103

The North American
Aviation System
Part 1
Standard 3 Objective 1
Air Transportation History
• Wright brother’s first plane: 1903
• Passenger travel on planes: 1919
• People thought flying was dangerous!
• Charles Lindberg crossed Atlantic: 1927
• Jet service: 1952
• Federal Aviation Act: 1958
– Created FAA (Federal Aviation Administration)
• Airline Deregulation Act: 1978
– Allowed for competition
Plane Trips
In times of peace, approximately 1.9
million people take a plane trip each day.
Civil Aviation Terms
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Domestic Carriers
International Carriers
Regional Carriers (commuters)
Supplemental Air Carriers (charters and
air taxis)
Definitions
• Slots – The time a plane can land, be at a
gate, and take off
• Scheduled Service – Flights made over
regularly flown routes according to a
published timetable
• Nonscheduled Flights – Planes hired to
fly to a particular place at a time specified
by the customer – also could be a charter
flight
Definitions
• Effective Date – the date a new flight is
scheduled to operate
• Discounted – the date a flight stops
operating
• Minimum Connecting Time – the amount
of time a reservationist must leave in
between 2 flights to allow passengers and
baggage to transfer from the first plane to
the second
United States
• In the United States, the airlines are
PRIVATELY owned!
Contract of Common Carriage
The carrier’s obligation to provide
transportation as promised and the
statement of the limit of liability for loss and
damage claim if it does not fulfill its part of
the bargain.
Hub-and-Spoke System
• An airline network formed by a hub (large
airport) and spokes (smaller airports)
• Centralized operations
• Most major airlines have one or more
“hubs”
• Passengers fly from “hub” to “spokes” and
from “spokes” to “hub” to connect to other
cities.
• It saves the airlines money
Hub-and Spoke System
Fortress Hubs
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American – Dallas-Fort Worth
Delta – Atlanta
Southwest – Dallas-Love Field
Continental – Houston
United - Chicago
Airline Codes
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American Airlines – AA
Alaska Airlines – AS
Continental Airlines – CO
Delta Airlines – DL
Hawaiian Airlines – HA
United Airlines - UA
Southwest Airlines – WN
Dual-Designated Carrier
• A flight operated by a carrier different from
the one whose primary code is listed.
Definitions
• Nonstop Flights – A flight form origin to
destination with no intermediate stops
• Direct/Through Flights – A flight from
origin to destination with one or more
intermediate stops
• Connection Flights – A flight from origin
to destination with one or more
intermediate stops where the passenger
must change planes
Definitions
• One-way Trip – A trip from origin to destination
with no return to origin
• Round Trip – A trip from origin to destination
with return to origin. Flights follow same route
and use same carrier.
• Circle Trip – Same as round trip except one
flight will follow a different route or use a
different carrier
• Open Jaw – A round trip where the passenger
either departs for return trip from a different
airport or returns to a different airport.
Income or Expenses
• Airlines largest source of income –
PASSENGER REVENUE
• Airline Expenses:
– Planes
– Fuel
– Labor
– Maintenance
─ Landing Fees
─ Passenger Meals
─ Advertising
─ Commission
• Airline Revenue from Business Travelers –
66%
How Are Fares Determined?
– The Actual Cost of Service
– Marketing Decisions
– Route Assignment
– Mileage
– Class
– Add-ons
– Stopovers
– Maximum Permitted (MPM)
– Profit Motives
Pricing
• Price is the most important factor
when buying a travel product
• Southwest is the USA’s largest
low-fare carrier
• An Airline’s Product = Space on
Plane
Yikes!!! Look at those PRICES!
The times when discounted fares are
not available, occurring during
holidays and peak-season are known
as BLACKOUT PERIODS!
Services
Consolidators are high-volume ticket
sellers who contract with carriers to
consolidate or sell at reduced rates,
airlines’ excess inventory – seats that
would otherwise fly empty.
• Orbitz is owned by:
– American Airlines
– Continental Airlines
– Delta Airlines
– Northwest Airlines
– United Airlines
Frequent Flyer Programs
• An airline
marketing
strategy, that
helps airlines to
make a profit as
well as build
loyalty.
• American – AAdvantage
Program
• Continental – OnePass
• Delta – Sky Miles
• Southwest – Rapid
Rewards
• United – Mileage Plus
Delta Airlines – www.delta.com
Southwest Airlines – www.southwest.com
Seats
• First Class – Located at the front of the
plane. Wider seats, more padding, extra
space between rows. Built-in electronics
(new). Board and deplane first. Movie
and alcohol free. Meals.
• Business Class – Scaled down from first
class. More room and comfort than coach.
Service comparable to first class.
• Coach Class – Seated in rear of plane.
Narrow seats, close together. Overhead
bins limited. Movies and alcohol cost.
Boarding
• Tickets: Ticketless travel is known as etickets. Some airlines still issue paper tickets.
• Check-in: Lets the airline know a passenger
has arrived. If checking baggage it is
weighed and checked-in. Picture ID checked
(passport, drivers license, military id).
• Boarding Passes: Allow passengers to
enter secure travel area with ID. Needed to
board plane.
Baggage
• Baggage Options:
– Checked – Bags are checked during the check
in process. Must be within weight and size
restrictions. Fees could apply.
• Most airlines are now charging a baggage fee.
– Example - $25 for 1 checked bag
– How much luggage is estimated that the airlines lost
each day?
• Fewer than 1% of nearly 3 million bags
– Carry-On – Must meet size restrictions - be
able to fit in overhead bins or under the seat.
Must meet all security restrictions.
Security
• Airport security is controlled by the
government
– TSA
• Passengers walk through detectors
• Possessions are put on a conveyor belt
that goes through an x-ray machine
• Checked luggage is screened as well
Carry-On Liquids
• Source: http://www.tsa.gov/311/