1© 2009 by nelson education ltd.. 2 the airline industry chapter 6


The Airline IndustryThe Airline Industry

Chapter 6Chapter 6


ObjectivesObjectives

Understand the size, scope, and importance Understand the size, scope, and importance of the transportation sector.of the transportation sector.

Compare the different types of regulatory Compare the different types of regulatory environments.environments.

Discuss the concerns about the natural and Discuss the concerns about the natural and built environments.built environments.

Name aircraft and events significant in the Name aircraft and events significant in the development of the airline industry.development of the airline industry.


ObjectivesObjectives Distinguish among types of aircraft in Distinguish among types of aircraft in

service today.service today. Compare air carrier aviation and general Compare air carrier aviation and general

aviation.aviation. Identify the parts of an airport.Identify the parts of an airport. Describe types of air routes.Describe types of air routes.



Compare multilateral agreements with Compare multilateral agreements with bilateral agreements, and explain how they bilateral agreements, and explain how they make the international air system work.make the international air system work.

Discuss the role of the International Air Discuss the role of the International Air Transport Association (IATA).Transport Association (IATA).

Discuss the effects of the 1978 Airline Discuss the effects of the 1978 Airline Deregulation Act in the United States, and of Deregulation Act in the United States, and of airline regulatory reform in the 1980s in airline regulatory reform in the 1980s in Canada.Canada.


ObjectivesObjectives List factors that influence airfares.List factors that influence airfares. Explain how IATA calculates international Explain how IATA calculates international

airfares.airfares. Discuss charter aviation in Canada.Discuss charter aviation in Canada. Discuss the impact of the 1995 and 2005 Discuss the impact of the 1995 and 2005

Open Skies agreement between Canada Open Skies agreement between Canada and the United States.and the United States.



Discuss the restructuring of the airline Discuss the restructuring of the airline industry, including emergence of new industry, including emergence of new entrants and strategic alliances between entrants and strategic alliances between and among airlines in different countries.and among airlines in different countries.

Compare the structure of the Canadian Compare the structure of the Canadian airline industry in the 2000s with earlier airline industry in the 2000s with earlier decades.decades.


The Regulation-Deregulation The Regulation-Deregulation ContinuumContinuum

EntryEntry ExitExit Rate/Fare SettingRate/Fare Setting Freedom to ManageFreedom to Manage Mergers and Mergers and

AcquisitionsAcquisitions

Open MarketOpen Market MonopolyMonopoly RegulationRegulation DeregulationDeregulation Regulatory ReformRegulatory Reform


Types of AircraftTypes of Aircraft

Engine TypesEngine Types Jet enginesJet engines Propeller drivenPropeller driven

PurposePurpose Short-haulShort-haul Short to medium Short to medium

range range Long-haulLong-haul Special purposeSpecial purpose


Types of Air ServiceTypes of Air ServiceUnited StatesUnited States

Major air carriersMajor air carriers National air carriersNational air carriers Large regional/ Large regional/

commuter carrierscommuter carriers Medium sized Medium sized

regional/commuter regional/commuter carrierscarriers

CanadaCanada DomesticDomestic Scheduled Scheduled

internationalinternational Non-scheduled Non-scheduled

internationalinternational


AirportsAirports

Canadian Airport Passenger DataCanadian Airport Passenger Data Canadian City Pair Passenger DataCanadian City Pair Passenger Data Passengers by SectorPassengers by Sector

– DomesticDomestic– TransborderTransborder– InternationalInternational


Airport LayoutAirport Layout

Terminal BuildingTerminal Building Cargo TerminalCargo Terminal Control TowerControl Tower HangarsHangars RunwaysRunways Loading ApronLoading Apron TaxiwaysTaxiways


RegulationRegulation

The International SystemThe International System Worldwide ConferencesWorldwide Conferences The Freedoms of the AirThe Freedoms of the Air Bilateral AgreementsBilateral Agreements International Air Transport AssociationInternational Air Transport Association Traffic ConferencesTraffic Conferences


RegulationRegulation

CanadaCanada The 1990’sThe 1990’s Airline RestructuringAirline Restructuring Open SkiesOpen Skies New EntrantsNew Entrants Strategic AlliancesStrategic Alliances The 2000’sThe 2000’s


RegulationRegulationThe United StatesThe United States

Economic RegulationEconomic Regulation DeregulationDeregulation The New-Entrant CarriersThe New-Entrant Carriers Effects of DeregulationEffects of Deregulation Safety RegulationSafety Regulation Industry RegulationIndustry Regulation


Factors Affecting the PriceFactors Affecting the Price

Type of JourneyType of Journey– One WayOne Way– Round TripRound Trip– Circle TripCircle Trip– Open JawOpen Jaw

Type of FlightType of Flight– Non-stopNon-stop– Direct or throughDirect or through– Interline connectionInterline connection– Online connectionOnline connection– StopoverStopover


Airline Industry ConcernsAirline Industry Concerns

Concern for the EnvironmentConcern for the Environment

Concern about Air Rage and Airport RageConcern about Air Rage and Airport Rage

Consumer ComplaintsConsumer Complaints

Rising CostsRising Costs


Career OpportunitiesCareer Opportunities

Flight CrewFlight Crew Ground Crew or StaffGround Crew or Staff NAV CANADA EmployeesNAV CANADA Employees Station ManagerStation Manager Airport ManagerAirport Manager General OfficeGeneral Office Sales OfficeSales Office

1© 2009 by nelson education ltd.. 2 the airline industry chapter 6

Documents