chapter six: “air carriers” part one marketing logistics

Chapter Six: “Air Carriers” Part One

Marketing Logistics

1903 Wright Brothers Flight

1903 Wright Brothers Flight

1918 U.S. Army starts air mail service.

1903 Wright Brothers Flight

1918 U.S. Army starts air mail service.

By 1921 mail was being delivered coast-to-coast in 33 hours.

1903 Wright Brothers Flight

1918 U.S. Army starts air mail service.

By 1921 mail was being delivered coast-to-coast in 33 hours.

First airline, Aeromaritime, flew Miami-Havana-Nassau.

Important Airline Developments

• 1925 Kelly Act provided mail contracts to subsidize airlines.

• Subsidized airlines started in 1927.– Boeing Aircraft Company.– National Transport Company.

From Airline History http://airlines.afriqonline.com/features/usa.htm

Important Airline Developments

• 1925 Kelly Act provided mail contracts to subsidize airlines.

• Subsidized airlines started in 1927.– Boeing Aircraft Company.– National Transport Company.

These eventuallymerged into United Airlines

From Airline History http://airlines.afriqonline.com/features/usa.htm

From Airline History http://airlines.afriqonline.com/features/usa.htm

From Airline History http://airlines.afriqonline.com/features/usa.htm

From Airline History http://airlines.afriqonline.com/features/usa.htm

From Airline History http://airlines.afriqonline.com/features/usa.htm

Contemporary Airline Industry

Contemporary Airline Industry

• Industry is dependent upon passenger revenues.

Contemporary Airline Industry

• Industry is dependent upon passenger revenues.

• Small amount of significant air freight.

Contemporary Airline Industry

• Industry is dependent upon passenger revenues.

• Small amount of significant air freight.– High-value.– Perishable.– Emergency.

Contemporary Airline Industry

• Industry is dependent upon passenger revenues.

• Small amount of significant air freight.– High-value.– Perishable.– Emergency.

• Logistics as a system concept should lead to growth in air freight.

End of Part One.