Airline Operations and Management - J3A

⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆

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MODULE 3 - AIRLINE BUSINESS AND MARKETING STRATEGY

MARKETING

-​ Marketing is the management process through which goods and services move from
concept to the customer.
-​ Marketing is important to a service business like an airline.
-​ Through proper marketing, an airline will have a stronger and more consistent image.
-​ This will provide the company with the ability to attract and retain not just loyal customers
and stakeholders but also best employees which are deemed very vital for a service
industry like an airline.
-​ Establishing a strong network and partnership will also be easy for a company with a good
reputation created by good marketing.
-​ There will be greater employee satisfaction including an increased sense of pride and
loyalty.

4 P’S of Marketing

(1) identification, selection and development of a product,

(2) determination of its price,

(3) selection of a distribution channel to reach the customer's place, and

(4) development and implementation of a promotional strategy.

PORTER’S 5 FORCES

-​ Porter's Five Forces, the model coined by Michael E. Porter, is a business analysis model
that helps to explain why various industries can sustain different levels of profitability.
-​ Porter identified five forces that undoubtedly play a part in shaping every market and
industry in the world.
-​ The five forces are commonly employed to assess competition intensity, attractiveness,
and profitability of an industry or market.
-​ The Five Forces model is widely used to analyze the industry structure of a company like
an airline as well as its corporate strategy.

1.​ Competition in the industry

2.​ Potential of new entrants into the industry
3.​ Power of suppliers
4.​ Power of customers
5.​ Threat of substitute products

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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PORTER’S 5 FORCES APPLIED IN AIRLINE INDUSTRY

1. Bargaining Power of Buyers (Low Threat)

●​ There are two groups of buyers in the airline industry: the individual flyers, and the travel
agencies and online portals.
●​ Buyers choose flights based on cost, destination, safety, and timing.
●​ There are low switching costs between firms.
●​ Even loyalty to a certain brand is not enough since the service provided is unique and
cannot easily be substituted.
●​ Airlines use positioning: some focus on cost, others on amenities.
●​ Web portals like Expedia make purchasing flights faster and easier.

Note: Although switching is easy, airlines still retain control because demand is need-based and
service is difficult to substitute.

2. Bargaining Power of Suppliers (Low but Increasing)

●​ Major suppliers are Boeing and Airbus.

●​ Supplies are standardized; airlines differentiate through onboard amenities.
●​ High capital and long-term contracts make switching difficult.
●​ Limited manufacturers increase dependence.
●​ Ecofriendly aircraft innovations may increase supplier power.

Note: Supplier power is structurally low but can rise with innovation and limited competition
among manufacturers.

3. Threat of New Entrants (Low)

●​ High capital requirements and licensing process.

●​ Strict regulation (FAA, ICAO).
●​ Consumers prefer credible and trusted airlines due to safety concerns.
●​ Existing firms can lower prices to retain market share.

Note: Barriers to entry are extremely high, making the industry difficult for new competitors to
enter.

4. Threat of Substitutes (Medium)

●​ Alternatives include car, bus, train, or boat.

●​ Switching involves cost, time, and reliability considerations.
●​ Airlines outperform in speed, convenience, and service.
●​ Higher gas prices reduce substitute attractiveness.

Note: Substitutes exist but are limited mainly to short-distance travel or cost-sensitive consumers.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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5. Rivalry Among Existing Players (High)

●​ Competition is very intense in a mature and stagnant industry.

●​ High fixed costs and complex operations increase rivalry.
●​ Long-term contracts make exit difficult.
●​ Brand identity and market positioning slightly reduce direct competition.

Note: Airlines compete aggressively on price, routes, and service due to limited growth and high
costs.

AIRLINE MARKETING STRATEGIES

COST LEADERSHIP

-​ Cut or lessen operational cost to offer more competitive prices

-​ Cost leadership is the strategy used by businesses to create a low cost of operation within
their niche to primarily gain an advantage over competitors by reducing operation costs
below that of others in the same industry.
-​ Employed by airlines like Etihad (EY), Emirates (EK) and Qatar Airways (QR).
-​ Advantage comes from government subsidies and easy access to fuel (second biggest
cost next to manpower).

KEY STRATEGIES UNDER COST LEADERSHIP

Fleet Commonality Policy

●​ Uses one common aircraft type

●​ Reduces training, licensing, and manpower costs
●​ Crew only needs one set of training and licenses

Use of Low-Cost Airports/Terminals

●​ Choose airports with lower landing fees

●​ Examples:
○​ Love Field Airport instead of Fort Worth
○​ Midway Airport instead of O’Hare
○​ Newark instead of JFK

High Aircraft Utilization

●​ Achieved through short turnarounds

●​ Aircraft and crew complete round trips without staying
●​ Reduces idle time and increases efficiency

Reduced Onboard Services

●​ Limit meals, toiletries, and amenities

●​ Offer low base fare
●​ Earn through ancillary revenues (baggage, meals, insurance, etc.)

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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Direct Booking via Web Portals

●​ Passengers book directly through airline websites

●​ Reduces distribution costs (GDS and commissions)

PRODUCT DIFFERENTIATION

-​ Make airline services unique to stand out and build strong customer loyalty.
-​ Product Differentiation is the marketing strategy where-in businesses will try to make their
product unique in some way so that it stands out from the pack.
-​ It is done by making some feature, physical attribute, or substantive difference exists
between a product and all other possible alternatives.

KEY STRATEGIES UNDER PRODUCT DIFFERENTIATION

First Mover Advantage

●​ Advantage gained by a company that first introduces a product or service to the market.
●​ Establishes strong brand recognition and product/service loyalty.
●​ Sets industry standard.

Examples:

●​ Southwest Airlines – first low-cost carrier; many followed (EasyJet, Ryan Air, Air Asia).
●​ Singapore Airlines – first to use Airbus A380, introduced luxury features like flying hotel, spa,
and lounge.

Brand Building

●​ Process of generating awareness and promotion through advertising or sponsorship.

●​ Helps customers know, feel, and experience the brand.
●​ Builds brand loyalty and customer satisfaction.

Examples:

●​ Cebu Pacific – “#EveryJuanwillflyagain” (low-cost, inclusive travel).

●​ Philippine Airlines – “Your home in the sky” (Filipino hospitality, flag carrier image).

Frequent Flyer Program (FFP)

●​ Airline loyalty program to maintain customer loyalty.

●​ Helps airlines understand customers better.
●​ Enables creation of services that ensure long-term loyalty and financial benefit.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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FOCUS STRATEGY

-​ Target a specific market segment and tailor services to meet their needs.
-​ Focus strategy is a strategic plan under which a firm concentrates its resources on entering
or expanding in a narrowly defined market segment.
-​ Also called segmentation strategy or niche strategy.
-​ Airlines offer clearly defined products and services for specific customer groups.
-​ Ancillary products (incremental purchases to a basic travel product) become products in
their own right.
-​ Focus on specific customers like families and business passengers.

EXAMPLES OF FOCUS STRATEGY

Family-Oriented Services

●​ Air New Zealand targets families.

●​ Economy Skycouch seat – convertible to bed for comfort.
●​ Jet Cadets Kids Pack – activities for children.
●​ Special meals for kids and bassinets for infants.

Business Class Services

●​ Designed for business passengers.

●​ Extra space for work and comfort.
●​ Premium amenities: real glassware, full meals, free food and drinks.
●​ Additional services: chauffeur service, airport lounges, onboard bars.

Regional / Feeder Airlines

●​ Focus on smaller markets and limited routes.

●​ Serve destinations with smaller demand.
●​ Provide connections to major destinations.

AIRLINE ALLIANCE

-​ Airlines cooperate to expand reach, reduce costs, and improve services, but may reduce
competition.
-​ An airline alliance is an arrangement between two or more airlines that lays the foundation
for substantial cooperation.
-​ It is an association of airlines to promote the common interests of the parties involved.
-​ It can also be any collaborative pooling of resources between two or more carriers to make
supply of capacity more efficient and extend market reach.
-​ There is no uniform structure; each alliance is unique.

BENEFITS OF AIRLINE ALLIANCE TO AIRLINES

-​ Wider range of destinations and more convenient connections.

-​ Ability to share passengers.
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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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Code sharing – airlines publish and market flights under their own designator but operated by
partners.

Reduced costs in:

●​ Sales offices and personnel

●​ Operational staff
●​ Maintenance and facilities
●​ Investments and purchases

BENEFITS OF AIRLINE ALLIANCE TO TRAVELERS

●​ Lower prices of air services.

●​ Wider range of destinations.
●​ More options for departure times.
●​ Reduced travel times.
●​ Access to airport lounges.
●​ Shared frequent flyer benefits.
●​ Enables cost-effective round-the-world travel.

DISADVANTAGES OF AIRLINE ALLIANCE

●​ Fewer flights on shared routes.

●​ Less competition may lead to higher prices (monopoly within alliance).

HISTORY OF AIRLINE ALLIANCE

●​ 1930s: First alliance – Panair do Brasil and Pan American World Airways.
●​ 1989: First large alliance – Northwest Airlines and KLM (code sharing).
●​ 1997: Star Alliance established.

MAJOR AIRLINE ALLIANCE

●​ Star Alliance – 23% of global traffic

●​ SkyTeam – 20.4%
●​ Oneworld – 17.8%
●​ Vanilla Alliance
●​ U-FLY Alliance
●​ Value Alliance

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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TACTICAL ALLIANCE

●​ A loose form of cooperation between airlines.

●​ Focuses mainly on marketing benefits and short-term gains.
●​ Primarily uses code sharing and hub-and-spoke systems.
●​ Airlines remain largely independent in operations.
●​ Commonly involves feeder and regional airlines linking with major hub carriers.
●​ Limited sharing of resources (mostly flight routes and marketing agreements).

STRATEGIC ALLIANCE

●​ Strategic alliances strengthen airline cooperation through deep integration, shared

resources, and coordinated operations to improve profitability and efficiency.
●​ A deeper and more structured cooperation between airlines.
●​ Focuses on long-term objectives and operational integration.
●​ Involves pooling of resources and investment.
●​ Includes shared airport facilities (check-in counters, lounges, offices, gates).
●​ Schedules and freight operations are coordinated and synchronized.
●​ Includes frequent flyer program reciprocity and broader cooperation like block selling.
●​ Higher level of integration compared to tactical alliances.

PRINCIPAL FEATURES OF STRATEGIC ALLIANCE

1. Equity Stake

●​ A large carrier in an alliance may buy a share ownership in a smaller partner airline.

2. Equity Exchange

●​ Two or more carriers take part stakes in each other.

3. Code Sharing

●​ An agreement between two airlines, where one airline operates a single flight leg with its
own flight code and that of its alliance partner.

4. Joint Services

●​ Offered within a code-sharing agreement.

●​ One airline supplies and operates the crew and aircraft.
●​ Revenue and profits are shared between two partner airlines.

5. Block Seat / Block Booking Arrangements

●​ A partner airline reserves a block of seats on a connecting service for another airline.
●​ Ensures guaranteed onward seats for passengers.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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6. Joint Marketing / Marketing Agreement

●​ Collaboration on marketing, promotion, and advertising of flights among partners.

7. Joint Fares

●​ Fare matching on routes and revenue pooling (subject to regulatory approval).

8. Franchise Agreements

●​ Contractual agreements allowing an airline to let its partner assume its brand image.

9. Wet-Leasing

●​ One airline hires the aircraft and crew from another airline on a fixed-fee basis.

10. Frequent Flyer Benefits, Cooperation and Reciprocity

●​ Alliance partners link loyalty programs.

●​ Passengers can accumulate mileage across all partner airlines.

PURPOSE OF STRATEGIC ALLIANCE

1.​ Achieve economies of scale and learning.

2.​ Improve profitability through economies of scope.
3.​ Gain access to partner airline assets.
4.​ Reduce risk through sharing.
5.​ Share markets and reduce competition in mature industries.

LIMITATIONS IN STRATEGIC ALLIANCE

1.​ Less competition leads to fewer choices for passengers.

2.​ Higher efficiency for airlines may result in higher prices for consumers.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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MODULE 4 - FLIGHT SCHEDULING

AIRLINE PLANNING OPTIMIZATION

●​ Airline planning optimization focuses on improving efficiency and reducing costs across
airline operations.
●​ Even small improvements in flight planning can lead to major savings.
●​ According to Steve Altus, improvements in flight planning systems significantly impact
profitability and environmental performance.

Key contributors:

○​ Dynamic route optimization

○​ Accurate flight planning
○​ Redispatch
○​ Airborne re-planning

FLIGHT PLAN

●​ A written account of the details of a particular proposed flight that may be filed as a
written document, an electronic document, or may be filed verbally prior to the flight.
●​ A flight plan is required prior to operating a flight or portion of a flight to be provided with
air traffic control service. It is also necessary before handling a flight within or into
designated areas, or along designated routes and even cross international borders.​
(Note: Required for safety, coordination, and legal compliance.)
●​ Where a flight plan is required, it must be submitted before departure to an air traffic
services reporting office or, during flight, transmitted to the appropriate air traffic services
unit or air-ground control radio station, unless arrangements have been made for
submission of repetitive flight plans (RPLs).​
(Note: Must be filed before or during flight depending on the situation.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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★​ ATC FLIGHT PLAN

The document which provides specified information to air traffic service units relative to an
intended flight or portion of a flight of an aircraft.​
(Note: Used for coordination with air traffic control.)

★​ NAVIGATION FLIGHT PLAN

A document prepared in accordance with the instructions of the operator and used in flight by
the pilot to assist in navigation and safe operation of the aircraft.​
(Note: Used by pilots during the flight.)

CONTENTS OF FLIGHT PLAN

1.​ Flight rules and type of flight (Note: IFR/VFR, commercial/private)

2.​ Number and type(s) of aircraft and wake turbulence category (Note: aircraft size and effect
on air)
3.​ Equipment (Note: navigation/communication tools)
4.​ Departure aerodrome (Note: origin airport)
5.​ Estimated off-block time (Note: time aircraft leaves gate)
6.​ Cruising speed (Note: average speed)
7.​ Cruising level (Note: flight altitude)
8.​ Route to be followed (Note: flight path)
9.​ Destination aerodrome and total estimated elapsed time (Note: destination + duration)
10.​ Alternate aerodrome (Note: backup airport)
11.​ Fuel endurance (Note: how long fuel lasts)
12.​ Total number of persons on board (Note: passengers + crew)
13.​ Emergency and survival equipment (Note: safety equipment)
14.​ Other necessary information

FLIGHT SCHEDULING

●​ Airline flight scheduling is about identifying where, when and what to fly. Airline company
must determine the most effective and profitable route that is at the same time
operationally feasible.​
(Note: Matching flights with demand and resources.)

FLIGHT SCHEDULE

●​ A timetable consisting of what cities to fly to and at what times. The quality of a proposed
flight schedule depends on the quality of the input data used to create it.

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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FACTORS AFFECTING FLIGHT SCHEDULE

1.​ Market demand forecasts

2.​ Available aircraft operating characteristics
3.​ Available manpower
4.​ Regulations
5.​ Behavior of the competing airlines.

NETWORK TYPES

★​ POINT-TO-POINT

This is referred to as the point-to-point flight scheduling where airlines had to fly routes as
assigned by the Civil Aeronautics Board (CAB) regardless of demand.​
(Note: Direct flights between cities.)

★​ HUB-AND-SPOKE

A “hub” is a central airport with flight paths radiating from it like spokes on a bicycle wheel. In a
hub-and-spoke airline system, most flights connect through a few hub airports.​
(Note: Passengers connect via central airports.)

FLEET ASSIGNMENTS

●​ This process includes assigning of the most appropriate fleet type to each flight leg. Airlines
must ensure that each flight is assigned to a particular fleet type; and that the number of
aircraft for each fleet does not exceed the available aircraft.​
(Note: Matching aircraft type to each flight.)

PASSENGER SPILL COST

●​ The effect of assigning large capacity aircraft to flights with a low demand. This will lead to
low utilization and low load factor for the airline.​
(Note: Wasted seats = lost revenue.)

AIRCRAFT ROUTING

●​ The process of assigning each individual aircraft within each fleet to flight legs.​
(Note: Assigning specific aircraft to specific flights.)

AIRCRAFT TAIL NUMBER

●​ Each aircraft for each airline in each country is assigned a unique serial number.
(Note: Aircraft identification number.)

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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CREW SCHEDULING

●​ The third phase of airline planning is the assigning the crew that will man the flights. This is
done after scheduling the flights and designating the aircraft for these flights.​
(Note: Assigning pilots and cabin crew.)

CREW SCHEDULING SYSTEM

★​ Schedule-Holding Crew - Have determined the flight schedule for the month.​
(Note: Fixed schedule crew.)
★​ Reserve Crew - Do not have a schedule of flights but are “on call” to fly during certain days
throughout the month when the airline needs crew members for particular flights.​
(Note: Backup crew/On call crew)

BIDDING SYSTEMS

PREFERENTIAL BIDDING SYSTEM (PBS)

A crew bidding system that produces monthly crew assignments based on crew member
preferences.

(Note: Consider personal schedules like vacation.)

BID LINE SYSTEM

Develop a monthly schedule and allow crew member bid to work those schedules.

(Note: Pre-made schedules to choose from.)

FUEL MANAGEMENT

A systematic process of determining the quantity of fuel to be bought at each airport in order to
minimize the total costs of fuel purchases and satisfy the operational requirements of each flight.​
(Note: Buying fuel efficiently.)

★​ FUEL TANKERAGE

Extra fuel carried from cheaper airports despite added weight.

(Note: Trade-off between fuel cost and fuel burn.)

TURN AROUND TIME

The time elapsed from the time the aircraft lands until it departs for the next flight.

(Note: Ground time between flights.)

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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OPERATIONAL FLIGHT PLAN

Required from each flight to ensure an airplane meets all of the operational regulations for a
specific flight. This will also give the flight crew information to help them conduct the flight safely
and to coordinate with air traffic control (ATC).

(Note: Detailed plan used during actual flight.)

AIRCRAFT BOARDING

Expediting the aircraft boarding process is economically advantageous for airline carriers,
operationally beneficial for airports and conveniently satisfying for passengers. Although,
reducing boarding time is difficult since it can be greatly affected by a lot of factors and directly
involves the passengers.

Passenger loading is one of the main factors affecting turn time for a commercial airline.
(Note: Impacts efficiency and delays.)

AIRCRAFT BOARDING STRATEGY

★​ FIRST TO BOARD PASSENGER

Passengers who are being given priority in terms of boarding. This type of passenger includes:

1.​ passengers with infants

2.​ passengers with disability
3.​ unaccompanied minors
4.​ Elderly
5.​ pregnant passengers.

★​ PASSENGERS WHO CAN BOARD ON THE TIME OF THEIR DISCRETION

1.​ First class passengers

2.​ Business class passengers
3.​ frequent flyers
4.​ VIP passengers
★​ BACK-TO-FRONT (BF) STRATEGY

Passengers are boarded in groups or zones starting with rows in the back going front.
(Note: Rear rows board first.)

★​ OUTSIDE-IN (OI) STRATEGY

Passengers in window seats board first, then middle, then aisle seats.
(Note: Reduces seat interference.)

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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MODULE 5 - AIRCRAFT CONFIGURATION AND UTILIZATION

AIRCRAFT

●​ Any of a class of fixed-wing aircraft

●​ Heavier than air
●​ Propelled by: screw propeller or high-velocity jet
●​ Supported by: The dynamic reaction of the air against its wings
●​ Aircraft configurations:
○​ Vary widely
○​ Can describe:
■​ The aerodynamic layout, OR
■​ Specific components of the aircraft
●​ Aircraft represent the bulk of airline assets

AIRFRAME CONFIGURATION

●​ By Body Structure:
○​ Narrow-body
○​ Wide-body
●​ By Flight Range:
○​ Short-haul
○​ Medium-haul
○​ Large haul
●​ By Engine Type:
○​ Piston-driven
○​ Turboprop-driven
○​ Pure-jet driven
●​ By Pressurization:
○​ Pressurized
○​ Non-pressurized

AIRCRAFT ENGINE

●​ The engine makes up much of the aircraft’s cost

●​ An aircraft engine:
○​ Is a component of the propulsion system
○​ Generates mechanical power

General Types of Engine:

●​ Almost always:
○​ Lightweight piston engines, OR
○​ Gas turbines

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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TYPES OF ENGINES IN AVIATION

1. Piston Engine

●​ An internal combustion engine

●​ Uses one or more reciprocating pistons
●​ Converts pressure into rotational motion
●​ Operates on the same principles as automobile engines

2. Turbojet Engine

●​ A jet engine
●​ Produces all thrust by:
○​ Ejecting a high energy gas stream from the exhaust nozzle
●​ Key feature:
○​ 100% of air entering the intake goes through the engine core
●​ Contrast:
○​ Different from turbofan/bypass engines

FLIGHT RANGE CLASSIFICATION

Based on fuel tank capacity:

●​ Short-haul flight:
○​ Up to 3 hours
●​ Medium-haul flight:
○​ 3–6 hours
●​ Long-haul flight:
○​ More than 6 hours up to 12 hours
●​ Ultra-long-haul flight:
○​ Over 12 hours

AIRCRAFT PRESSURIZATION

Importance:

●​ Unlike automobiles (comfort-related), pressurization is:

○​ Directly connected to safety and performance

Functions:

●​ Allows aircraft to:

○​ Fly higher and faster
○​ Fly above terrain
○​ Fly above weather
○​ Provide air-conditioning for crew and passengers

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Airline Operations and Management - J3A
⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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●​ Considered:
○​ Aviation’s ultimate creature comfort

Non-Pressurized Aircraft:

●​ Usually small aircraft

●​ Rarely go into high altitudes
●​ Can get close to high altitudes

FAA Supplemental Oxygen Regulations:

●​ Below 12,500 ft:

○​ No supplemental oxygen required
●​ 12,500 ft to 14,000 ft:
○​ Required flight crew must use oxygen if:
■​ Flight duration exceeds 30 minutes
○​ Example:
■​ Short climb to 13,000 ft for 15 minutes:
■​ No oxygen required
●​ After 30 minutes:
○​ Flight crew must use oxygen

Key Principle:

●​ Flying at more than 12,000 ft:

○​ Requires pressurized aircraft

FUSELAGE

●​ The main body of the aircraft

●​ Contains:
○​ Passengers
○​ Cargo
○​ Crew

NARROW-BODIED AIRCRAFT

●​ Cabin width: 3–4 meters

●​ Seating: 2–6 seats per row
●​ Aisle: One
●​ Capacity: Up to 250 passengers
●​ Also called single aisle aircraft

Examples:
●​ Douglas DC-8
●​ Airbus A320
●​ McDonnell Douglas DC-9
●​ Boeing 707, 727, 737, 757
●​ Fokker F28, Fokker 70
●​ Boeing 717
○​
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⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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WIDE-BODIED AIRCRAFT

●​ Cabin width: 5–7 meters

●​ Seating: 7–10 seats per row
●​ Aisles: Two
●​ Capacity: 200–600 passengers

ICAO Definition of Wide-body Aircraft

●​ Cabin width: At least 4.72 meters (15.6 ft)

●​ Seating divided into:
○​ Three axial groups
○​ Separated by two aisles

Examples:

●​ Airbus A310, A330, A340, A350, A360

●​ Boeing 747, 767, 777, 787 Dreamliner

BRAND NEW AIRCRAFT

Features
For Purchase
●​ Comes with warranty
●​ Maintain relationship with:
●​ Fully customizable:
○​ Manufacturer or dealer
○​ Interior design
●​ Continuous support:
○​ Paint
○​ Maintenance
○​ Avionics systems
○​ Technical assistance
○​ Operational guidance

Additional Benefits

●​ Possible:
○​ Discounts
○​ Free maintenance
○​ Training packages
●​ “White tails”:
○​ Unsold aircraft offered at discounted prices

Disadvantages Advantages Summary

●​ High purchase cost ●​ 30% or more fuel efficient

●​ Financing difficulty ●​ Lower maintenance cost
●​ Long waiting time for production ●​ Compliant with noise regulation
●​ Possible initial minor issues
●​ Rapid depreciation

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⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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OLD (PRE-OWNED) AIRCRAFT

Advantages

●​ 30–50% cheaper
●​ Slower depreciation
●​ Immediately available

Disadvantages

●​ High maintenance cost

●​ Higher fuel consumption
●​ Difficulty sourcing parts
●​ Need for spare units
●​ Risk of:
○​ Undisclosed mechanical problems

Requirement

●​ Must undergo:
○​ Thorough pre-purchase inspection

BASIC AIRCRAFT UTILIZATION SCHEME

A. Aircraft Positioning

1.​ Aircraft is brought from:

○​ Hangar OR
○​ Remote parking area
2.​ Hangar:
○​ Large structure used for housing aircraft

B. Taxiing

●​ Aircraft moves under its own power

●​ Uses taxiways
●​ Movement from:
○​ Hangar → Gate or runway

C. Passenger Boarding Bridge (PBB)

●​ Enclosed movable connector

●​ Connects:
○​ Terminal gate → Aircraft
●​ Protects passengers from weather

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⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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D. Pre-Departure Ground Handling

Includes:

●​ Fueling
●​ Catering
●​ Cargo loading
●​ Baggage handling
●​ Documentation processing
●​ Passenger check-in
●​ Load control (weight and balance)

E. Boarding and Departure

●​ Boarding starts:
○​ 15 minutes before ETD
●​ After boarding:
○​ Doors are closed
○​ PBB is detached
●​ Chocks-off
○​ Marks the exact departure time

F. Taxi-Out and Takeoff

●​ Aircraft taxis to runway

●​ Positions for departure
●​ With ATC clearance:
○​ Aircraft takes off
●​ Becomes:
○​ Airborne (fully supported by air)

G. Cruise Phase

●​ Aircraft flies at:

○​ Constant altitude and speed
●​ Longest phase of flight
●​ May include directional changes

H. Landing

●​ Aircraft descends
●​ Touchdown:
○​ Moment aircraft contacts the ground

I. Taxi-In and Arrival

●​ Aircraft taxis to gate

●​ Chocks-on + PBB attachment
●​ Doors open:
○​ Marks arrival time
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⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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J. Post-Arrival Ground Handling

Includes:

●​ Refueling
●​ Catering
●​ Cargo unloading
●​ Baggage unloading
●​ Documentation handling
●​ Passenger disembarkation

K. Turnaround Flight

●​ Immediately followed by:

○​ Next pre-departure preparation cycle

MODULE 6 - INTERNATIONAL AIR TRANSPORT REGULATIONS AND IATA TRAFFIC CONFERENCES

AIR TRANSPORT POLICY AND REGULATIONS

ROLE AND IMPORTANCE OF AVIATION

●​ Aviation enables the free movement of people and goods worldwide

●​ In 2019:
○​ 4.5 billion passenger journeys
○​ 61 million tons of cargo transported
○​ More than 22,000 unique city-pair connections

GLOBAL IMPACT OF AVIATION

●​ Enables global trade and business expansion

●​ $6.7 trillion in international trade moved by air (2019)
●​ Removes limitations of:
○​ Geography
○​ Distance
○​ Time

SOCIAL AND ECONOMIC CONTRIBUTIONS OF AVIATION

●​ Reunites families and loved ones

●​ Promotes cultural understanding
●​ Supports global connectivity
●​ Delivers:
○​ Goods to markets
○​ Humanitarian aid

TRADE AND TOURISM FACTS IN AVIATION

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●​ 1/3 of international trade (by value) is transported by air
●​ 57% of global tourists travel by air

AVIATION AS “Business of Freedom”

●​ Connects business to markets

●​ Enables global cooperation
●​ Brings people together to:
○​ Solve problems
○​ Build understanding
○​ Develop global insights

KEY GLOBAL STATISTICS OF AVIATION

●​ 65.5 million jobs supported worldwide

●​ $2.7 trillion global economic impact
●​ 3.6% of global GDP

OBJECTIVES OF AIR TRANSPORT REGULATIONS

●​ Reduce State costs in economic regulation

●​ Increase consumer benefits and choices
●​ Improve air connectivity
●​ Create competitive business opportunities

SMART REGULATION

●​ Delivers:
○​ Clearly defined
○​ Measurable policy objectives
●​ Achieved through:
○​ Transparent process
○​ Objective decision-making
○​ Consultation

PURPOSE OF SMART REGULATION

●​ Reduce excessive red tape

●​ Minimize burdens on consumers and businesses

IATA’s ROLE IN REGULATION

●​ Supports smarter regulation initiatives

●​ Works with governments to:
○​ Reduce unnecessary interference
○​ Improve airline operations

POLICY DESIGN PRINCIPLES

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1. CONSISTENCY AND COHERENCE

●​ Align with existing rules

●​ Avoid:
○​ Overlaps
○​ Contradictions
●​ Must be:
○​ Predictable
○​ Non-discriminatory

2. PROPORTIONALITY

●​ Regulation used only when necessary

●​ Must match the severity of the problem
●​ Aim:
○​ Minimize compliance costs

3. TARGETED AT RISK

●​ Address specific problems

●​ Provide flexibility in achieving objectives

4. FAIR AND NON-DISTORTIVE

●​ Apply regulations fairly

●​ Avoid discrimination

5. CLARITY AND CERTAINTY

●​ Regulations must:
○​ Be clearly defined
○​ Be understandable
●​ Provide sufficient time for compliance

PROCESS PRINCIPLES

1. DEFINING A CLEAR NEED

●​ Based on:
○​ Evidence
○​ Consideration of alternatives

2. IMPACT ASSESSMENT

●​ Evaluate:
○​ Effects of regulation

3. TRANSPARENCY

●​ Involve affected stakeholders

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●​ Maintain:
○​ Objective decision-making

4. REDUCING BURDENS AND REVIEWS

●​ Minimize compliance burden

●​ Allow:
○​ Regular review and updates

5. OPPORTUNITY TO RESPOND AND REVISE

●​ Allow:
○​ Appeals
○​ Revisions if necessary
●​

REASONS WHY WE NEED AIR REGULATIONS

●​ Passenger safety
●​ Public concern
●​ National development tool

SYSTEMS OF AIR TRANSPORT REGULATIONS

GENERAL SYSTEM

●​ International routes:
○​ Assigned through government agreements
●​ Airfares:
○​ Controlled or approved by governments
●​ IATA:
○​ Mediates airline fare agreements

CHICAGO CONVENTION (1944)

RIGHTS FOR NON-SCHEDULED FLIGHTS:

●​ Overfly a country
●​ Make non-traffic stops
●​ No prior permission required (with conditions)

STATE RIGHTS:

●​ Can:
○​ Require landing
○​ Restrict routes for safety
○​ Require special permission

FOR COMMERCIAL (NON-SCHEDULED) FLIGHTS:

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●​ Can:
○​ Carry passengers, cargo, mail
●​ Subject to:
○​ National regulations

GOVERNMENT CONTROL

●​ Governments:
○​ Approve fares
○​ License airlines
○​ Authorize operations

INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO)

●​ Established under Chicago Convention (1944)

●​ Funded by 193 member states

CORE FUNCTIONS

●​ Support:
○​ International cooperation
○​ Air transport diplomacy
●​ Maintain:
○​ ICAO Secretariat
●​ Develop:
○​ Policies
○​ Standards

STAKEHOLDER INVOLVEMENT

●​ Includes:
○​ Industry groups
○​ Civil society
○​ International organizations

ACTIVITIES

●​ Conduct:
○​ Panels
○​ Conferences
○​ Seminars
●​ Study:
○​ Technical
○​ Political
○​ Socio-economic issues

OUTPUT
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⋆˚ Ma. Sophia Bianca Garcia 𝜗𝜚˚⋆
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●​ Develop:
○​ International standards
○​ Recommended practices

ADDITIONAL ROLES

●​ Regional coordination (7 offices)

●​ Training and capacity building
●​ Auditing and outreach

AIR FREEDOM OF RIGHTS

1ST FREEDOM

●​ Overfly another country without landing

2ND FREEDOM

●​ Land for technical purposes only

○​ Refueling
○​ Maintenance

3RD FREEDOM (H-F)

●​ Carry passengers/cargo from home country → foreign country

4TH FREEDOM (F-H)

●​ Carry passengers/cargo from foreign country → home country

5TH FREEDOM (H-F-F/F-F-H)

●​ Carry traffic between two foreign countries

●​ Flight must:
○​ Start or end in home country

6TH FREEDOM (F-H-F)

●​ Carry traffic between two foreign countries via home country

●​ Combination of:
○​ Third + Fourth freedoms

7TH FREEDOM (F-F)

●​ Operate between two foreign countries

●​ No connection to home country required

8TH FREEDOM (H-FD-FD)

●​ Carry traffic within a foreign country

●​ Flight originates/ends in home country

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9TH FREEDOM (FD-FD)

●​ Carry traffic entirely within a foreign country

●​ No link to home country

INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)

●​ Founded: April 19, 1945 (Havana, Cuba)

●​ Members:
○​ ~290 airlines
○​ From 120 countries
●​ Covers:
○​ 82% of global air traffic

PURPOSE

●​ Promote:
○​ Safe
○​ Reliable
○​ Secure
○​ Economical air transport

ROLE

●​ Facilitates:
○​ Airline cooperation
●​ Ensures:
○​ Standardized procedures
●​ Supports:
○​ Seamless global air travel

FUNCTIONS

●​ Negotiates airfares
●​ Coordinates with governments
●​ Standardizes operations

IATA TRAFFIC CONFERENCES AREA

Purpose:

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●​ Simplify:
○​ Fare calculation
○​ Route management
○​ Administrative tasks

TC1 (Traffic Conference 1)

●​ Covers:
○​ Entire Western Hemisphere
○​ Includes:
■​ Bermuda
■​ Hawaii
■​ Johnston Island
■​ Easter Island

Examples:

●​ NYC (USA)
●​ RIO (Brazil)
●​ MEX (Mexico)

TC2 (Traffic Conference 2)

●​ Covers:
○​ Europe
○​ Africa
○​ Middle East (up to Iran)
○​ North Atlantic islands (except Bermuda)

Examples:

●​ MIL (Italy)
●​ CPH (Denmark)
●​ DUB (Ireland)
●​ DXB (UAE)

TC3 (Traffic Conference 3)

●​ Covers:
○​ Asia (remaining countries)
○​ Australia
○​ New Zealand
○​ Pacific Islands (except Hawaii, Johnston, Easter)

Examples:

●​ MNL (Philippines)
●​ SIN (Singapore)

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●​ TPE (Taiwan)
●​ TYO (Japan)

TYPES OF INTERNATIONAL TRIPS

1. TC1 TRIP

●​ Travel within TC1

●​ Example:
○​ CHI – BUE
○​ MEX – YVR

2. TC2 TRIP

●​ Travel within TC2

●​ Example:
○​ PAR – RUH
○​ OSL – FRA

3. TC3 TRIP

●​ Travel within TC3

●​ Example:
○​ MNL – KUL
○​ SGN – BJS

4. EASTERN HEMISPHERE TRIP

●​ Between:
○​ TC2 and TC3
●​ Example:
○​ BRU – MEL
○​ VIE – DEL

5. TRANSATLANTIC TRIP

●​ Between:
○​ TC1 and TC2
●​ May include TC3
●​ Example:
○​ MNL – JED – YYZ
○​ BOG – LIS

6. TRANSPACIFIC TRIP

●​ Between:

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○​ TC3 and TC1
●​ May include TC2
●​ Example:
○​ SYD – YVR
○​ CPH – HKG – SFO

7. ROUND THE WORLD (RTW)

●​ Sequence:
○​ TC1 → TC2 → TC3 → TC1 (or reverse)

Examples:

●​ SFO – CPH – HKG – SFO

●​ MOW – TPE – RIO – LIN – MOW

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