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The North American Aviation System

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  1. The North American Aviation System Part 1 Standard 3 Objective 1

  2. 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

  3. Plane Trips In times of peace, approximately 1.9 million people take a plane trip each day.

  4. Civil Aviation Terms • Domestic Carriers • International Carriers • Regional Carriers (commuters) • Supplemental Air Carriers (charters and air taxis)

  5. 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

  6. 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

  7. United States • In the United States, the airlines are PRIVATELY owned!

  8. 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.

  9. 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

  10. Hub-and Spoke System

  11. Fortress Hubs • American – Dallas-Fort Worth • Delta – Atlanta • Southwest – Dallas-Love Field • Continental – Houston • United - Chicago

  12. Airline Codes • American Airlines – AA • Alaska Airlines – AS • Continental Airlines – CO • Delta Airlines – DL • Hawaiian Airlines – HA • United Airlines - UA • Southwest Airlines – WN

  13. Dual-Designated Carrier • A flight operated by a carrier different from the one whose primary code is listed.

  14. 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

  15. 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.

  16. Income or Expenses • Airlines largest source of income – PASSENGER REVENUE • Airline Expenses: • Planes ─ Landing Fees • Fuel ─ Passenger Meals • Labor ─ Advertising • Maintenance ─ Commission • Airline Revenue from Business Travelers – 66%

  17. How Are Fares Determined? • The Actual Cost of Service • Marketing Decisions • Route Assignment • Mileage • Class • Add-ons • Stopovers • Maximum Permitted (MPM) • Profit Motives

  18. 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

  19. Yikes!!! Look at those PRICES! The times when discounted fares are not available, occurring during holidays and peak-season are known as BLACKOUT PERIODS!

  20. 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. Services

  21. Orbitz is owned by: • American Airlines • Continental Airlines • Delta Airlines • Northwest Airlines • United Airlines

  22. 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 Frequent Flyer Programs Delta Airlines – www.delta.com Southwest Airlines – www.southwest.com

  23. 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.

  24. Boarding • Tickets: Ticketless travel is known as e-tickets. 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.

  25. 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.

  26. 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

  27. Carry-On Liquids • Source: http://www.tsa.gov/311/