HTM 230

1
HTM 230

• Airline Business 2

2
Flight Types

• Nonstop no stops
• Direct stop, but no plane change
• Connection stop and change

3
Trip Types

• One Way

A
D
4
Trip Types

• Round Trip

A
D
5
Trip Types

• Circle Trip

A
A
D
A
6
Trip Types

• Open Jaw

A
D
D
7
Flight

• Stall Speed
• Air Speed
• Ground Speed
• Turbulence

8
Navigation

• GPS
• VOR
• Air Traffic Control
• Jetways

9
Regulation
10
FAA

• Certifies Pilots
• Certifies Aircraft
• Certifies Airports (Co-ownership)
• Operates Air Traffic Control

11
Air Traffic Control

• VFR
• IFR
• Jetways
• Ground Control
• Arrival / Departure Control
• Central Control

12
NTSB

• Investigates Accidents
• Maintains Database of Accidents
• Court of Appeals for FAA rulings

13
Airports
14
General Aviation

• City owned
• Private
• Dillingham Field

15
Metro Airports

• City owned
• Fed. Financed
• Space leased
• Airlines
• FBOs
• Tenants

16
Runways

• Numbered by compass heading
• Parallel
• Into the Wind
• Taxiways
• Apron
• Terminal

17
International

• No Regulatory Body
• National Airspace
• Multilateral Agreements

18
IATA

• International Air Transport Assoc.
• Sets International Fares
• Travel Agency Relations

19
Flag Carriers

• El Al
• JAL
• Lufthansa
• Air New Zealand

20
Distribution Channels

• Travel Agent
• Direct / counter
• Direct / 800 number
• Direct / Internet

Most Expensive
Least Expensive
21
Deregulation

• CAB
• 1978
• 1978 - 1993 Lost more than ever made
• Price War
• Bankruptcies
• Eastern
• Braniff
• Pan Am
• Continental

22
Dilemma

• High Fixed Cost, Low Variable Cost
• 100 passengers _at_ 100 10,000 yield
• 130 passengers _at_ 75 9,750 yield

23
Yield Management

• 100 passengers _at_ 100 plus 30 passengers _at_ 75
  12,250 yield
• Segment by willingness to pay
• Value pricing vs Cost pricing
• Frequent Flyer
• Super Saver
• 10 different coach fares per flight