Airline Industry CHAPTER 3.2.pdf ppt file
- 1. AIRLINE INDUSTRY Presentors; BALITE, UMYEAH FATHIMA CABUNOT, RINELYN C. CALADO, CHRISTY MARIE ECHAVEZ, HYAZELLE JADE SENDAYEN, JANNAH MAE Chapter 3.2
- 2. Objectives: Identify the different categories of air carriers and aircraft 1. Explain the air transport structure 2. Identify the categories of airlines 3. Differentiate domestic and international airlines’ services and characteristics 4. Name the new trends in the aviation and airline industry 5. Explain the role and the airport activities 6. Identify the various types of airline ownership 7. Describe the different airport facilities 8.
- 4. An airline, as defined by Dictionary.com, is a company or an organization that provides air transportatioN (Airline, n.d.). DEFINITION OF AIRLINE It is a part of a system that operates at airports using airplanes as its vehicles. Airlines provide a means to move people or goods from one point to another.
- 6. To be called an industry, the organizations must be having similar activities, products, or services. It has been defined as a collection of enterprises in a particular area or field (Industry, n.d.). AIRLINE INDUSTRY The airline industry is well-organized. Though airline companies are competitors, they have an atmosphere of friendly competition. Through IATA, airlines are able to share the best practices to help the industry flourish.
- 7. TYPES OF AIR CARRIERS OR AIRLINES TYPES OF AIR CARRIERS OR AIRLINES
- 8. Civil Aviation Authority of the Philippines (CAAP) records show 70 airports within the Philippines. • international, domestic, military, private • Limited night landing facilities restrict operations • Major cities serve as hubs for smaller cities
- 9. • Operate within the same country • Serve different cities or provinces • Lower fares due to shorter distances • Passengers are mostly commuters DOMESTIC AIRLINES
- 10. • Operate within a specific geographic region • Limited destinations due to aircraft range • Flying time: 3-6 hours max REGIONAL AIRLINES
- 11. • Operate long-haul flights • Fly to destinations beyond 7 hours • Serve global routes INTERNATIONAL AIRLINES
- 13. LEGACY OR FULL–SERVICE AIRLINES Airlines that pioneered commercial aviation, offering international scheduled services with traditional operational strategies. Also Known As: Full-Service Carriers (FSCs). Examples: Philippine Airlines, Singapore Airlines & Cathay Pacific
- 14. LOW–COST AIRLINES Airlines offering low fares by minimizing operational costs, often referred to as Low-Cost Carriers (LCCs) or budget airlines. Impact: LCCs have significantly challenged the market share of legacy carriers. Examples: Cebu Pacific, AirAsia & Southwest Airlines
- 15. AIR TAXIS OR AIR CHARTERS On-demand air transport services without scheduled flights, offering private aircraft hire. Aircraft Types: Typically small airplanes, private jets, or helicopters; larger aircraft like Airbus or Boeing may be used for group charters. Use Cases: Ideal for routes not served by scheduled flights or for private group travel. Examples: Air Juan & Asian Aerospace Corp.
- 16. BOUTIQUE AIRLINES Airlines offering premium services to niche markets, often serving small airports leading to high-end destinations. Misconception: Despite using smaller aircraft, boutique airlines are not low-cost carriers; their fares are typically higher due to specialized services. Examples: Bangkok Airways & SkyJet Airlines
- 17. Trivia American Airlines saved $1.2 million by replacing pilot paper manuals with iPads.
- 18. POINT TO POINT CARRIERS POINT TO POINT CARRIERS
- 19. Are airlines that only service passengers from the origin city to the registered destination. For passengers traveling on different airlines that are point- to-point airlines, their checked-in bags are only carried until the destination of the carrier. Passengers will have to retrieve their bags and check in again for the next flight even if it is within two to three hours apart.
- 20. are airlines that operate on a network structure. They offer scheduled service through a hub-and-spoke system (Sin & Chellappa, 2013) NETWORK CARRIERS
- 22. Flag carriers traditionally are government-owned airlines. When the airline industry started, it was common for the government to start, operate, and manage their own airlines. With the privatization of airlines in the 1980s, the meaning of flag carriers has changed.
- 23. Today, flag carriers are transportation companies whose equipment (like ships or airlines) carry the flag of the country where they are registered (Singh, 2019). In the Philippines, Philippine Airlines and Cebu Pacific aircraft are registered with CAP, making both airlines the flag carriers.
- 24. THE SECRET OF LCC SUCCESS THE SECRET OF LCC SUCCESS
- 25. The first airline was established by Percival E. Fansler in 1914. His company was the St. Mr. Fansler relied on subsidies, benefactors. Petersburg-Tampa Airboat Line. At the time, the airline. The subsidies were not able and the government to fund the operation of to sustain the expensive operations, and the company went bankrupt after only five months of operations (Sonokpon, 2017).
- 26. Learning the lessons from Mr. Fansler, succeeding airline companies devised different business model. The following legacy carriers have been more successful. Their can be attributed to their business model of selling seats rather than depending on success subsidies from government or private institutions. Sonokson (2017) wrote that the more successful successors followed the way other modes of transportation did business, that is, selling seats.
- 28. AIRPORTS SERVE AS THE MAIN GATEWAYS FOR MOST CITIES. THEY ARE THE FIRST TOUCHPOINT FOR ARRIVING INTERNATIONAL PASSENGERS. THEY GIVE TOURISTS AND TRAVELERS A GLIMPSE OF WHAT THEY CAN EXPECT AT THE DESTINATION. THEY ARE ALSO IMPORTANT FOR OUTGOING TRAVELERS. THEY ARE ALSO IMPORTANT FOR OUTGOING TRAVELERS. A WELL- ORGANIZED AND MANAGED TERMINAL CAN LEAD TO ENSURING A PROGRESSIVE AIR TRANSPORT INDUSTRY.
- 29. This section explores the role of airports in air travel, the areas open to passengers, and the restricted zones for airline and airport staff. It also covers passenger procedures, the responsibilities of airport and airline personnel, airport ownership and management, and how airports generate revenue for sustainable operations.
- 30. With the development to heavier airplanes, such as the Airbus of the aircraft from light with low engine power 380s or Boeing 747s, came the development of airports. When the first airplanes were first manufactured, a mowed drainage system meadow was enough as long as the was effective enough. But now that Airbus 380 and Boeing 747 exist, more complex aerodromes or airport systems are needed. (Kazda & Caves, 2015) ROLES OF AIRPORT
- 31. Rodrigue et al. (2013) wrote that one of the essential components of transportation is infrastructure. Water-based transport needs ports or piers. Rails have rail stations. Air transport use airports. Together with superstructures, routes complete the network for efficient and effective infrastructure.
- 32. Airports function as gateways or hubs. They are mainly for airplanes and air transport, but they are also the points of convergence where other modes of transportation meet or interchange. Airports are almost always connected with land transportation systems such as buses, taxis, and others. Some airports even have rail or train stations connecting the airport location to the city
- 33. The importance of transport terminals depends on the number of passengers they serve. Airports handle airplanes that carry over 400 passengers, while ports accommodate ships and cruise liners with more than 3,000 passengers. Due to this high volume of traffic, both airports and ports play a crucial role in the transportation network.
- 34. According to Rodrigue et al. (2013), transport terminals are important based on their location and accessibility. Major airports are usually built outside densely populated areas for safety, as accidents have occurred near airports. However, location should also be convenient for travelers. Manila International Airport, for example, is in the heart of Metro Manila, making it easily accessible but raising safety concerns due to its urban setting.
- 35. Manila International Airport faces congestion issues, but plans are in place to build alternate airports in Bulacan and Cavite. Once these new airports are operational, they will help ease the overcrowding and improve travel efficiency.
- 36. TRIVIA The biggest airport in terms of passenger traffic. is Hartsfield- Jackson Atlanta International Airport in the United States. It holds this claim since 1998 and has reached the 100-million passenger mark (6 Interesting Facts & Trivia, n.d.). HARTSFIELD-JACKSON ATLANTA
- 37. PARTS OF AIRPORT An airport is a place where passengers and cargo are gathered for scheduled travel. It also serves as a hub for different transportation modes. While most people think of an airport as just the terminal, it actually has several key parts, including the runway, taxiway, apron, control tower, hangar, and parking. Many of these operate behind the scenes, while passengers mainly experience the terminal.
- 38. RUNWAY The runway is the strip of a heavily paved area where airplanes use for take-off and landing. Wind direction is considered when designing the runway of the airport. The bigger airports of the world have several runways. A regular-sized airport runway can accommodate a maximum of 1 BE BE D thirty movements (landing or take-off) within the day. A busier airport will need to have another runway (Components of an Airport, n.d.).
- 39. TAXIWAY Taxiways are different from runways. It is what connects the runways to the other airport components such as the passenger terminal, apron, or parking. For some airports, the taxiway is used for changing from one runway to another (Components of an Airport, n.d.). The design of the taxiway of an aerodrome is difficult to design can be enough for an airport with minimal aircraft conceptualize. The basic movement. The more complex the runway and taxiway system is, the more the operating costs become more effective (Kazda & Caves, 2015). The more taxiways there are, the more airplanes can take off and land.
- 40. APRON In aviation, an apron is not just something cabin crew wear—it’s the area where airplanes park in front of the terminal. Here, passengers board and disembark, and cargo is loaded and unloaded. Some call it the ramp, but "apron" is the correct international term. The apron is one of the busiest parts of an airport, with planes, vehicles, and people constantly moving. It’s also where aircraft are refueled. Because of this, it must be well- designed to ensure safety for everyone in and around the area.
- 41. HANGAR Hangars are connected to taxiways for easy access for airplanes. Components of an Airport (n.d.) described the hangar as a structure where the aircraft is repaired or serviced. This structure is like huge shed made from steel trusses and frames. It is large enough to allow aircraft to easily move in and out of the structure.
- 42. CONTROL TOWER The control tower can be likened to a nervous system. It is where air traffic controllers monitor and control the landing and take-off of aircraft within its zone. It is designed to allow 360° of visual observation of the airways around the airport. Monitoring is also done with the help of navigation equipment and radars (Components of an Airport, n.d). From the control tower, the air traffic controllers inform pilots about wind speed, landing routes, visibility, and runway details, among other things. This information is important for safe landing and take-off, especially in busy airports.
- 43. PARKING Parking is important at airports because it is where airport workers leave their cars while they work. Passengers can also park their cars here. Car rental companies use the parking area for their service vehicles. Those with offices inside the airport park their cars here too. In the Philippines, it is common for family or friends to pick up or drop off passengers. Because of this, the parking area should be big enough for those waiting for arriving passengers.
- 44. The airport terminal is the first place passengers see when they arrive at their destination. Kazda and Caves (2015) said that it gives travelers their first impression of the place they are visiting, especially for international passengers. It can also showcase the destination’s unique architecture. For commercial airports, the terminal building is very important. It is where passengers check in before their flight. Their tickets, passports, and other travel documents are checked, and they receive their boarding passes. International passengers also go through customs and immigration. TERMINAL BUILDING
- 45. Departure area/level is where passengers' travel documents are processed. This is where immigration interviews are done. Here is where they spend time waiting for the boarding of their flights. DEPARTURE AREA
- 46. ARRIVAL AREA Arrival area/level is arrival before they can enter the country of destination. International passengers also need to clear immigration upon their arrival before they can enter the country of destination.
- 47. TRIVIA The Princess Juliana International Airport in St. Maarten is considered one of the most dangerous airports. Beachgoers in the nearby beach area can almost touch the airplane as it lands since it is only 20-30 meters away (6 Interesting Facts & Trivia, n.d.).
- 48. An airport’s design is important for its operations. The terminal building should be big enough to handle the number of flights and passengers. Some airports are small, while international airports vary in size depending on air traffic. For example, Manila’s Ninoy Aquino International Airport is smaller than Singapore’s Changi Airport. Runways and taxiways are also designed based on how many planes take off and land each day. The size of the planes is also considered. Prather et al. (2015) said that architects and engineers must plan for the length and wingspan of different aircraft. AIRPORT DESIGN
- 49. TRENDS PRIOR TO COVID-19 TRENDS PRIOR TO COVID-19
- 50. In 2018. U.S. Affluent Traveler Survey showed that affluent travelers are choosing experience over tangible things. An 8% increase was seen from these travelers who were willing to pay more for a "nicer" hotel room. These travelers are likely to prefer air travel over other modes of transportation.
- 51. In 2019 six top experiences came up. The number 1 in the U.S. Affluent Traveler Survey (2019) is that millenials are looking for a once-in-a-lifetime experience on their tours. Second, they are seeking ecological tours and tours that educate and share more information about the area they are visiting.
- 52. . Third, today's travelers prefer to immerse themselves into the local community, learning experiencing their culture. Fourth, adventure tours gaining popularity where they like to feel their adrenalin pumping. Fifth. convenience is still valued since they prefer their time spent on experiencing rather than planning. Therefore, the study showed that tourists are into walking tours, especially when visiting a new location.
- 53. The Philippine government and airlines in the country have taken advantage of this trend. New destinations like Tablas have been opened, which is becoming known destinations for diving. Siargao is another example. Siargao is also in Surigao but has been added as a surfing destination. The Tourist Promotion Board, the government's arm in tourism marketing, also promotes new sites and destinations as ecotourism sites.
- 54. More travelers are purchasing travel services through OTAs. The top OTA in the US market in 2018 is Viator. Transport and tourism establishments can capitalize on this trend to increase their sales and revenue. However. OTAs should provide instant booking confirmation, not just information, to be of value to businesses. Buying Behavior
- 55. Use of Technology Though desktop and mobile apps are both using technology, mobile apps are gaining popularity since travelers are becoming busier and are often on the go. TrekkSoft (2019) study sow an increase in the use of mobile phone apps for booking for the year 2018.
- 56. Use of Technology Airlines are also seeing the value of using technology in their distribution strategy. Mobile apps and Interactive online bocking have been developed by airlines to get to the buying public The report also featured Skit's Research that found 36% of travelers book travel services using their mobile while they are at the destination
- 57. Personalization Small and large companies alike use personalzation to build relationships with their customers. It gives customers a better experience and creates loydi clients. Morgan (2020) shared statistics, saying that 72% of SmartHQ customers engage only when they get personalized messages.
- 58. Also. 80% of frequent buyers also look for a personalized experience. These show that communication is the key when going digital. Consumers are more confident with buying online from businesses they can communicate directly with.
- 59. TRENDS IN AIR TRAVEL COVID-19 TRENDS IN AIR TRAVEL COVID-19
- 60. The airline industry was one of the most affected industries by the COVID-19. Because it is a capital intensive industry, almost all airlines, domestic and international suffered financialy alongside other businesses.
- 61. The normal traveling gear will a include a face mask or even a face shield Passengers cabin crew who will may not have the benefit of seeing the beautiful faces of the be wearing the personal protective equipment (PPE) previously seen only in hospitals. Except for the voice of the pilot, the plane will be quet as chitchats are discouraged.
- 62. Digitalization has been the trend even pre-COVID-19. It has gained more traction post-COVID-19 when touchless and contactless transactions are encouraged. Check-in kiosks are gaining popularity, and the implementation is on the fast track, Instead of going fully digital in 2025, airlines have had to implement their automation projects ahead of schedule Digitalization
- 63. Travel behavior and buying patterns nay change post- COVID-19. With the pandemic stil ongoing, domestic travel will be more popular over international travel. Local government units may have their own travel protocols, but slowly, travelers will be allowed to go around the country. Domestic travel nay bounce back ahead of international travel because of this. Travel Behavior
- 64. Because social distancing is now a requirenent for the new normal, there will be lesser passengers. This wil impact arine profitability. For airlines, a flight is profitable if at least 80% of seats are sold. But with seating passengers apart, the 80% passenger load factor (PLF) will be difficult to achieve.
- 65. Man has conquered space travel since the late 1960s. After 50 plus years, is tourism ready for space tourism? Space Tourism
- 66. Space tourism is a new niche tourism trend that gives the traveler the experience of being an astronaut. Henderson and Wai (2019) explained that tourists may want to this experience mostly for recreation or leisure but have may also be for business purposes.
- 67. In the study of Reddy et al. (2009), notivations that will drive people to do space travel include being able to view Earth from space, having a feeling of weightlessness, experiencing super highspeed travel, having an unusual experience, and being able to contribute to science (Henderson & Wal. 2019).
- 68. PASSENGER ACTIVITY AT THE AIRPORT PASSENGER ACTIVITY AT THE AIRPORT
- 69. DEPARTURE LEVEL Check-in Process: Passengers present their travel documents to receive a boarding pass and drop off baggage. Online Check-in: A faster, digital alternative to traditional check-in. Security Screening: Metal detectors, X-rays, and sometimes frisking ensure safety. Pre-Departure Area: A waiting area with shops, restaurants, and seating. Boarding Process: Passengers proceed through numbered departure gates. Trivia: Alaska Airlines was the first airline to implement online check-in in 1999.
- 70. ARRIVAL LEVEL Baggage Claim: Checked-in bags are retrieved at carousels. Customs Clearance: Required for international passengers bringing commercial goods. Exit Process: Passengers proceed to their destination after customs clearance.
- 71. AIRPORT ACTIVITIES FOR PERSONNEL LANDSLIDE OPERATIONS Ground Staff: The first point of contact for passengers. Check-in Agents: Verify travel documents and issue boarding passes. Terminal Assistance: Helping passengers, including unaccompanied minors and seniors. Boarding Management: Ensuring only ticketed passengers enter the aircraft. Arrival Assistance: Supporting passengers needing special services.
- 72. AIRSIDE OPERATIONS Aircraft Refueling: Conducted with strict safety measures, like a Formula 1 pit stop. Parking the Aircraft: Marshals guide aircraft into position using signals. Maintenance Checks: Engineers inspect aircraft for repairs and safety before flights. Cargo Handling: Ensuring proper weight distribution for safety.
- 73. SUMMARY HISTORY OF AIR TRANSPORTATION SUMMARY HISTORY OF AIR TRANSPORTATION
- 74. THE WORLD AVIATION HISTORY When the world history is talked about, there is the lighter- than-air developments for focuses on the hot air balloon and airships, dirigibles, or blimps. Heavier-than-air developments started with the gliders that did not have engines. Then came the developments of aircraft using the steam engine, as well as engines using compressed air and fuel. The first success manned flight happened using the Wright Flyer in 1903. The aircraft design has further improved even today, years after the first jet plane took to the skies, which begun the jet age.
- 75. THE PHILIPPINE AVIATION HISTORY There were no aircraft developments done in the Philippines. The milestones were mostly about companies establishing airlines. But the lessons learned are more important. Those lessons include considerations that airline success may depend on government support, competition may lead to overcapacity or oversupply, airline business is heavily capital-intensive, and accidents put substantial strain on finances.
- 76. IMPORTANCE OF AIR TRANSPORTATION IN TOURISM INDUSTRY IMPORTANCE OF AIR TRANSPORTATION IN TOURISM INDUSTRY
- 77. Air transportation is essential in connecting the different islands of the Philippines. It is the fastest means of travel for tourists to bring them to the diverse destinations the country can offer. IMPORTANCE OF AIR TRANSPORTATION IN TOURISM INDUSTRY
- 78. CATEGORIES OF AIR CARRIERS AND AIRCRAFT CATEGORIES OF AIR CARRIERS AND AIRCRAFT
- 79. Airplanes are categorized based on their size and maneuverability. These acrobatic, commuter, experimental, light-sport,limited, normal, primary, restricted These are transport, and utility airplanes. CATEGORIES OF AIR CARRIERS AND AIRCRAFT AIR TRANSPORT STRUCTURE Most airlines work on the network structure. Some prefer the simpler point-to-point network operations. The more traditional airlines use the hub-and-spoke network where they select major cities around the world to function as their base or hub. CATEGORIES OF AIRLINES Airline companies can be categories as international, regional, or domestic. International airlines fly to destinations outside their country. Regional airlines limit their destinations to countries within their own region, while domestic airlines operate flights within their own country.
- 80. DOMESTIC VERSUS INTERNATIONAL AIRLINES: SERVICES AND CHARACTERISTICS Aside from the area of operations, domestic airlines tend to offer cheaper fares compared to international airlines. In terms of flying hours, flights of international airlines are at least 7 hours or more. It can include a stop along the way and still be considered international when the total flying time is at least 7 hours.
- 81. Trends in Aviation and Airline Industry Trends prior to 2020 showed that the majority of airline travelers were the millennials who seek once-in-a-lifetime experiences and eco-friendly tours, immersing with the locals. These trends were considered by the domestic airlines when they opened new routes to destinations like Siargao and Tablas. The airline industry has been one of the most negatively affected by the COVID-19 pandemic. Experts foresee that travelers will be health- and safety-conscious. With everything going touchless, digitization will continue, and more processes will be automated. As for travel preferences, domestic travel will bounce back sooner with more LGUs opening their tourism doors to the tourist. Space travel is a niche tourism for air transportation. Since it may be expensive and time consuming to participate in space tourism, very few are expected to experience this.
- 82. Role and the Airport Activities Airports serve as the gateway or hub to air transportation. The size of the airport and its facilities determines the number of passengers it will be able to process or accommodate Airports are used to facilitate and hasten the arrival and departure of travelers at a destination. Types of Airport Ownership Though most major airports were owned by governments when the industry first started, ownership has been turned over to private companies. Studies have shown that airports that are privately maintained and operated are often more efficient.
- 83. Airport Facilities Airport facilities are a good source of revenue. In most airports, there are kiosks and other retail concessions that sell food or snacks as well as souvenirs to travelers. There are banks and money changers in most airports, which are vital for foreign travelers. Parking is also a source of additional income. With the complex operation that happens at an airport, specific facilities are necessary. Runways and taxiways are designated for the aircraft take-off and landing. Airports have aprons where the aircraft is parked for embarkation and disembarkation of passengers. A control tower iS needed to guide airplanes coming in and taking off. The terminal building is where passengers are processed in preparation for their trip and upon arrival at the destinations.
- 84. Thank you!