Air travel is possible with the combined efforts of
several players, all of which are interrelated and
interdependent. Aviation is an umbrella term
used to represent the combination of all such
AVIATION
players. It’s now a massive sector with various
INDUSTRY
socio-economic significance.
The term ‘aviation industry’ encompasses:
the aerospace industry,
aviation organizations, and
air transportation.
LETS UNDERSTAND :
AEROSPACE INDUSTRY AVIATION AIR TRANSPORTATION
ORGANIZATIONS
Encompasses all of the economic,
Consist of all institutions that constitute the This includes all processes which
organizational and technical air
legal and transactional framework encompass the transportation of
transport facilities required for the
necessary for the realization of air persons or objects by air, including any
manufacture, delivery of aircraft and
transportation and the production of the direct or indirect services.
infrastructure such as airports and air aerospace industry .
traffic control facilities.
AVIATION
ELEMENTS
AIR TRAFFIC
TYPES
TERMINOLOGY AVIATION
AIRLINE
BUISNESS
TYPES MODELS
AIRCRAFT AIRPORT
SELECTED CRITERIA
OF AIR TRAFFIC
CLASSIFICATION
Civil Aviation
Civil aviation is the most significant component in
aviation. Commercial air transportation and
general aviation are part of civil aviation; i.e., all
types of air transportation other than military
aviation are included in civil aviation. The civil
aviation industry is characterized by a range of
distinct features :
transnational industry, though it is firmly
anchored to countries.
highly regulated internationally and nationally
mainly for safety and security purposes and
for economic and political reasons
Military aviation
Military aviation is a separate aviation
sector that is featured with more regular
advancements and involves unique
aircrafts meant exclusively for military
purposes. Unlike commercial
transportation aircrafts, some of them
are meant for destroying enemy aircrafts
and some others are used for attacking
with bombs or missiles.
CIVIL AVIATION
COMMERCIAL AIR TRANSPORT GENERAL AVIATION
Scheduled passenger transport Aerial work, e.g., aerial spreading and
spraying, aerial photography, aerial
Scheduled freight and mail
advertisement, etc.
transport
Air Taxi
Charter passenger transport Business Aviation
Charter freight and mail transport Instructional flying
Other on-demand air transport Pleasure flying
Other flying
COMMERCIAL AIR
TRANSPORTATION
Commercial air transportation, which is all about the
transport of passengers, cargo or mail in a professional
manner, is the most prominent one.
Scheduled services (e.g. major airlines) and non-
scheduled services (e.g. charter airlines) are the two
major components of commercial air transportation.
Major airlines, regional airlines, LCCs and charter
airlines are all components of commercial air
transportation.
Scheduled air transport is the larger in terms of
passenger numbers.
GENERAL AVIATION
All civil aviation operations other than
scheduled air services and non-scheduled air
transport operations for remuneration or hire
come under General Aviation.
The flights in GA include aerial application
planes, land survey flights, air ambulances,
Instructional flying, Pleasure flying, Air taxi
services and special mission flights.
Business aviation, which includes aircraft and
helicopters for business purposes, is a
dominant category in this type of service.
GA is extensive in terms of the number of
flights and the number of airports used.
AIRLINES
Airlines are the most powerful players from the air transport industry that actually perform the core service, which is
transportation from one point to another.
The term airline represents a commercial organization that undertakes the transportation of people, cargo and mail
from one place to another.
As an air transport system, the airline includes its equipment, routes, operating personnel and management systems.
Airlines, also called airways, form a system or organization that provides typically scheduled flights for passengers or
cargo among specified points.
The air carrier is another term used to denote an airline. Air carriers are “the commercial system of air transportation,
consisting of domestic and international certified and charter carriers”.
A number of determinants can be identified that contribute to the significance of airlines in the promotion of tourism.
The affordability of air services is a prime factor that stimulated air travel propensity and eventually spurs the tourism
demand.
Over the years, air travel became increasingly accessible for more sections of society.
AIRLINE INDUSTRY: FEATURES
Intangibility High interdependency
Rigidity of supply High barriers to entry and exit
Dynamic pricing Capital-intensive and high fixed costs
Dominant role of intermediaries Labour-intensive
Oligopolistic and non-price competition Thin profit margin and poor financial
Highly regulated performance
Perishability Seasonality and fluctuating demand
Inseparability The elasticity of demand
Variability Global industry
Crisis-vulnerable sector
Different types of airline business models exist and
TYPES OF there are different ways to define them. Following are
AIRLINES the most popular types of airlines business models :
Network carrier
Leisure carrier
Low-cost carrier
Regional carrier
Business aviation/air charters
Also known as international passage airline, a
major airline, full-service network carrier, full-
service carrier, traditional or established airline or
NETWORK legacy carrier .
CARRIER It is the fundamental airline business model and
provides a wide range of services.
The oldest and most well-known flag carriers of the
world belong to this category.
Most of these airlines were founded partly using
government funds and some are (at least to some
extent) still state-owned airlines today.
Global Player covers all markets and destinations with all types
of flights. The strategic alliance is a solution to enhance wider
reach.
The hub-and-spoke network method is used for aircraft
NETWORK deployment which routes all traffic (so-called feeder flights)
CARRIER'S through one or more
connections within the hubs
central hubs and synchronized
CHARACTERISTICS The fleet is mostly heterogeneous.
Target group both business and leisure.
Differentiated product and service concepts.
Multi-channel distribution
Frequent flyer programmes
Yield management and pricing: Prices may differ widely based
on booking conditions (such as change, cancellation, or
reimbursement policies) and can be based on time (booking and
departure date), target group or geographical aspects (e.g. the
origin of sale and itinerary).
LEADING AIRLINE GROUPS WORLDWIDE IN 2020, BASED ON PASSENGERS
(IN MILLIONS)
Also known as a charter carrier, tourist carrier or
holiday airline)
LEISURE Founded specifically for the transportation of
CARRIER
tourists and worked closely with Tour Operators.
In the past, seats were not generally sold directly
to passengers by the airlines but rather included in
package tours offered by tour operators; hence
they were mainly referred to as charter airlines.
The term is misleading today as most flights
offered by leisure carriers nowadays operate
under the same principles as scheduled flights.
Heavy dependence on tour operators (sometimes they are part
of a travel company such as TUIfly and Thompson Airways,
which are part of the TUI Group, or Condor) as the offer is aimed
LEISURE
mainly at leisure travellers.
Product offer: Most airlines offer only one class (economy),
CARRIER'S although some offer a two or three class concept.
Destinations: Mainly tourist destinations on the same continent.
CHARACTERISTICS Routes: Mainly point-to-point with a relatively high seat load
factor due to a consistent length of stay (mainly one, two or
three week holidays).
Fleet: A homogeneous fleet of predominantly small to medium-
sized aircraft with 150 to 250 seats (e.g. B737, A320 family).
Distribution: Currently via tour operators (as part of package
tours) and directly to the end customer (via seat-only sales).
Tickets are sold through different channels (e.g. travel agencies,
OTAs).
LCCs, also known as discount or budget airlines,
focus on cost-reducing strategies (such as
increasing seat density onboard, using smaller
airports, or charging extra for food and beverages
LOW-COST or baggage) in order to offer lower fares
CARRIER Two periods that are regarded as important
development eras of LCCs: the early-to-mid-1990s
in Canada, Europe and Oceania, and the 2000s in
Asia, Eastern Europe and the Middle East.
1971 (Southwest Airlines, USA)
1986 (Ryanair, EU)
LCCs do not conform to a particular business
model although a number of typical characteristics
have been identified
Service concept: No complimentary food and beverages onboard
(some airlines offer free simple drinks), one-class system, narrow
seating, unreserved seating (or reservation for a fee), no lounge
services at airports.
LOW COST Ancillary services and revenues: LCCs increasingly have revenue
services besides ticket sales, e.g. credit card fees, (excess) luggage
CARRIER'S charges, in-flight food and beverages, commissions from hotels and
CHARACTERISTICS car rental companies as well as from selling advertising space.
Distribution channels: A strong focus on direct distribution,
especially via the internet.
Marketing: Simple branding that combines low costs with high
brand value; simple price system and low prices, including very low
promotional fares, are the most important marketing messages.
Human resource management: Work hours at the legal maximum,
lower pay for longer work hours with little or no fringe benefits,
airline operation with the legal minimum of personnel, simplified
crew planning due to point-to-point traffic.
Administration: Lean structures are accomplished by outsourcing
some departments.
Strategic flight planning:
Point-to-point traffic
LOW COST Use of smaller, less congested secondary or even tertiary
airports that are less expensive regarding landing taxes and
CARRIER'S handling fees.
CHARACTERISTICS Frequent limitation to short-haul flights or maximum flight times
of three to four hours.
Faster turnaround time to allow for maximum aircraft utilization.
(Usually) no connecting flights, but so-called ‘self-hubbing’ is
increasingly important.
Fleet: A recent study shows that 68% of the analysed airlines use
only one type of aircraft. Another 26% use two and 8% use more
than two different aircraft types. This simplifies flight and staff
planning, and maintenance, as well as keeps training and
development costs down.
Regional carriers (also known as commuter or
feeder airlines) offer feeder flights between outer
locations and the hubs of the network carriers.
REGIONAL Further characteristics include :
CARRIER
with a seating capacity between 19 and 120
seats (partially, use of propeller planes)
use of medium and small airports, although in
the case of feeder flights large airports are
approached
product and services targeted at business
travellers
elevated price level due to the target group and
higher costs
Business aviation is a subcategory of general aviation and provides
services to the business community.
Business aircraft vary from helicopters and propeller-driven aircraft
to turboprops and jets, generally seating anywhere from six to 18
passengers.
While there are business jets capable of direct long-haul flights
BUSINESS between Hong Kong and Paris or Los Angeles and Geneva, for
example, most business aircraft fly average trips of less than 1000
AVIATION miles
One of the advantages of using business aviation is the enormous
time-saving potential for the customer.
Operators use several different types of aircraft, such as single- and
twin-engine piston-powered aeroplanes, helicopters, turboprops or
fast jets.
While the classic business aviation model entails the chartering of an
entire aircraft, air taxis sell single seats on flights that are operated
according to client needs (merely paying for the required seats).
However, this business model is currently not widespread.
BUSINESS
AVIATION
The hybrid airline has adopted a current business model
HYBRID MODEL that comprises the best features of both the legacy and low-
cost business models in one, balancing costs (known to be
the focus of the LCCs) and value (known to be the focus of
full-service carriers).
CLASSIFICATION IN A NUTSHELL
Aircraft serves the purpose of a vehicle.
AIRCRAFT It comes in different sizes, shapes, purposes, capacities,
weight, speed and configurations.
It is simply the device used to carry passengers and cargo
from one place to another.
Aircraft are classified on a diverse basis :
Based on Engines
Based on Mach Number / Airspeed
Based on Range
CLASSIFICATION Based on the Number of Wings
Nature of the aircraft in association with the
heaviness related to the density of it with that
of air.
Aircraft classification based on the
purpose
CLASSIFICATION
Civil aircraft
General aviation aircraft
Private aircraft
BASED ON Business planes
PURPOSE Commercial aircraft
Passenger aircraft
Freighter
Combi-aircraft
Military aircraft.
POPULAR TYPES
Aircraft are differentiated by the shape of the fuselage into narrow-body (single-aisle)
and wide-body (twin-aisle).
WIDE-BODY AIRCRAFT NARROW-BODY AIRCRAFT
It has a wider fuselage so that it
can have more seats in each row. Narrow-body aircraft are smaller and
In addition, the economy have a single aisle through the
compartment has two aisles. passenger cabin.
Boeing 747 became the pioneer in Narrow-body aircraft have a small first
the wide-body aircraft revolution or business class compartment with a
Airbus A380 is the widest, with a single-aisle by which the seats are
width of 7.14 metres. arranged on either side of the aisle.
They are used mainly in long-haul Embraer E-Jet E2, Airbus 320,
and medium-haul routes. Boeing737 are example of this type of
They can carry passengers from craft.
200 to 850 passengers and
typically have twin-aisle cabins.
Aircraft manufacturing is one of the most concentrated
industries in the world with extreme oligopoly.
A few players are dominant in the international market.
AIR CRAFT Airbus, Boeing and Tupolev focus on the wide-body and
MANUFACTURERS narrow-body jet airliners.
Bombardier, ATR and Embraer concentrate on smaller
aircraft useful for the regional airlines.
Airbus is based in Europe with its headquarters in
Toulouse, France, and has 12 sites in Europe
Airbus also has three subsidiaries in the USA, Japan
and China.
AIRBUS Airbus’ diverse product line includes everything
from passenger jetliners to freighters and private
(WWW.AIRBUS.COM) jets.
The product range in this category ranges in size
from 100-seat jetliners to the double-deck A380
that is capable of transporting more than 850
passengers.
One of the largest aerospace companies
With corporate offices in Chicago, it employs more than
153,000 people across the United States and in more than
65 countries.
BOEING Boeing manufactures the 737, 747, 767, 777 and 787
families of aeroplanes and the Boeing Business Jet range.
(WWW.BOEING.COM) New product development efforts include the Boeing 787-
10 Dreamliner, the 737 MAX, and the 777X.
It also offers the most complete family of freighters, and,
according to it, a vast majority of the world’s cargo is
carried onboard Boeing planes.
Diverse and interesting options available to
tourists as speciality transport. ( Transport as
Tourism ).
SPECIALITY AIR
Ballooning
TRANSPORTATION
Airships
Helicopters
Gliding
Space Transportation
BALLOONING Ballooning can be traced back to the 18th century.
Balloons may be classified into several categories.
Balloon (gas or hot-air) rides are mainly offered as a
leisure activity by specialized companies,
intermediaries or sports clubs.
There are many different product offerings, ranging
in purpose, duration and even themes.
Ballooning takes place almost all year round, with
balloons primarily ascending shortly after sunrise or
a few hours before sunset, providing customers
with rather unique experiences.
AIRSHIPS
Hot-air balloons led to the development of airships
in the 1870s.
Air navigation started to become very popular, and
numerous constructions of airships with different
steering mechanisms followed.
Zeppelin turned into a means of transportation as
well as an instrument of warfare during the First
World War by the Germans.
There are three types of airship :
Non - Rigid (Blimp).
Rigid
Semi-Rigid
Airship flights tend to be rather an exceptional
experience and are even more exclusive and rare.
HELICOPTERS
A helicopter is a type of rotorcraft that derives its lift and
thrust from rotors.
Leonardo Da Vinci designed a machine on paper with a
rotor or aerial screw.
However, it was not until the 20th century that the actual
development of helicopters finally succeeded.
There is a wide range of helicopter use in the tourism
industry, including taxi services as part of a special events
(such as weddings), or even for flight experiences
A new and popular tourism product is heli-skiing, which
involves taking tourists to a ski site by helicopter in order
to reach trails that are not otherwise accessible.
GLIDING
For aerial adventures, gliding is probably the most
exciting and includes sailplanes, motor gliders, seaplanes,
microlights, paragliders, hang-gliders and gyroplanes.
The sport of gliding is generally considered a recreational
activity and is not generally viewed as a form of passenger
transportation
The tourism industry provides gliding activities either
through providers based at the landing places, through
tour operators or intermediaries
The Canadian tour operator, G Adventures, for instance,
offers gliding activities combined with accommodation
and transportation.
SPACE Spacecraft simply represents a specially designed vehicle
TRANSPOTATION for flying in space.
It is more of a generic term used to denote a vehicle
meant for space travel.
The hype for orbital space tourism began in 2001 with
Dennis Tito, the first official space tourist.
Space tourism is envisaged as a commercial activity,
which can involve the temporary movement of people
from the earth using a spacecraft or aircraft to experience
space travel.
It is currently nascent with just three private companies —
Blue Origin, Virgin Galactic and SpaceX— in the fray,
which is about humans travelling to space for recreational
activities.
SPACE
TRANSPOTATION
