Airline Business and Industry Insights

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Questions and Answers

What is a primary focus of the Airline Business as discussed by Doganis?

Economic factors impacting the airline industry (correct)

The evolution of airport management

Passenger service enhancements

Technological advancements in aircraft

Which publication is associated with analyzing the role of government in the airline industry?

Air Transportation: A Management Perspective

Airline strategies and business models 2016

Deregulation of Network Industries: What's Next? (correct)

The Airline Business in the 21st Century

What is one of the documents published by the European Commission regarding air transport?

Future of Airline Partnerships

The Role of Airports in Economic Development

Single European Sky Initiative (correct)

Impact of Aviation on Economic Growth

Which organization is responsible for publishing data on airport operations?

ACI Signup and view all the answers

Which chapter of Wensveen's book focuses on management perspectives within air transportation?

Chapter 2 Signup and view all the answers

What significant change occurred as a result of lower mail rates in the aviation industry?

Increased focus on passenger air transport by airlines Signup and view all the answers

What was the significance of the Civil Aeronautics Act of 1938?

It created the Civil Aeronautics Authority to oversee air travel safety Signup and view all the answers

Which aircraft was first certified in the short-range category in 1967?

B737-100 Signup and view all the answers

Which of the following was a technological advancement noted in the aviation industry during the growth years from 1938 to 1958?

Development of flight recorders Signup and view all the answers

What term was introduced to commercial aviation with the certification of the B747-100?

Wide-body Signup and view all the answers

What is the main role of the ICAO Assembly?

To codify principles and techniques of international air navigation Signup and view all the answers

What was one of the major roles of the Civil Aeronautics Authority established by the Civil Aeronautics Act?

To supervise financial arrangements of airline companies Signup and view all the answers

How many countries are represented in the ICAO Council?

36 Signup and view all the answers

What is NOT one of the six strategic objectives of ICAO?

Sustainability Signup and view all the answers

During which period did air traffic control become mandatory?

1958 – 1978 Signup and view all the answers

What impact did technological advancements in aviation have during the period from 1958 to 1978?

Enhanced safety leading to reduced operational risks Signup and view all the answers

Which of the following is a key focus of ICAO's efforts?

Enhancing the efficiency of aviation operations Signup and view all the answers

What notable protocol does ICAO define for air accident investigation?

Convention on International Civil Aviation Signup and view all the answers

When was the International Air Transport Association (IATA) founded?

1945 Signup and view all the answers

Which of these statements about IATA is true?

IATA has over 290 members from more than 120 nations Signup and view all the answers

What was the original name of IATA when it was founded in 1945?

International Air Traffic Association Signup and view all the answers

What was the primary effect of the bilateral agreements signed by the US between 1978 and 1980?

Dramatic drop in fares and stimulated air traffic growth Signup and view all the answers

Which key feature did European bilateral air service agreements include that differed from those of the US?

Open route access allowing airlines to serve any point in the partner country Signup and view all the answers

What is the concept of 'Open Skies' primarily concerned with?

Creating a free-market environment in commercial aviation Signup and view all the answers

Which agreement marked the beginning of the 'Open Skies' policy between the US and another country?

Dutch-US Open Skies Agreement Signup and view all the answers

What does 'Fifth Freedom rights' allow under the 'Open Skies' policy?

Airlines to carry passengers from a foreign country to a third country Signup and view all the answers

How did the EU’s internal market changes influence air travel?

Provided free and unlimited rights for airlines to operate within EU countries Signup and view all the answers

What aspect of Open Skies agreements allows airlines to collaborate and share codes?

Free allowance for code-sharing and commercial agreements Signup and view all the answers

What was one significant outcome of the liberalization in European aviation?

Growth of low-cost carriers offering new routes Signup and view all the answers

What is cabotage in the context of air travel?

Carrying traffic between two points within a foreign nation by a foreign carrier. Signup and view all the answers

Which freedom of the air allows for a carrier to conduct flights solely between two points in a foreign country?

9th Freedom Signup and view all the answers

Which of the following organizations is a governmental organization related to air transport?

International Civil Aviation Organisation (ICAO) Signup and view all the answers

What is typically reserved for national carriers in relation to cabotage?

The right to operate domestic flights in another country. Signup and view all the answers

Which of the following is NOT a major international organization in the air transport industry?

World Trade Organisation (WTO) Signup and view all the answers

In the given example, what is the nature of the operation when Delta Air Lines flies from LA to London and then to Manchester?

8th Freedom cabotage. Signup and view all the answers

Which of the following freedoms allows a carrier to carry traffic that originates and terminates within a country by an air carrier of another country?

8th Freedom Signup and view all the answers

What is one of the key characteristics of the 9th Freedom of the Air?

It allows for a carrier to pick up passengers exclusively within a foreign country. Signup and view all the answers

What is the 3rd Freedom of the Air?

The right to carry commercial traffic from the home country to a foreign nation. Signup and view all the answers

Which of the following freedoms allows a carrier to operate flights from one foreign country into another without using the home country?

7th Freedom Signup and view all the answers

Which situation exemplifies the 2nd Freedom of the Air?

Refueling an aircraft in Hawaii while traveling from Sydney to New York. Signup and view all the answers

What is required from country B in order for the 5th Freedom to be exercised?

Grant of beyond-point rights to country C. Signup and view all the answers

Which of the following is a characteristic of the 6th Freedom of the Air?

Transiting traffic from a foreign state through the home country to a third state. Signup and view all the answers

Which example illustrates the 1st Freedom of the Air?

Flying from HK to Thailand over Vietnam airspace. Signup and view all the answers

In the context of Freedoms of the Air, what does the term 'beyond rights' refer to?

The right to continue travel to a third country after picking passengers in the second country. Signup and view all the answers

What does the 4th Freedom of the Air allow?

Pick up commercial traffic in a foreign nation and return to the home country. Signup and view all the answers

Study Notes

Course Overview

The course covers the aviation industry, with specific focus on international aviation
Topics include: Introduction, International Aviation, Airline Business, Airports, Aircraft Manufacturers, Air Freight, Aviation and the Environment, and Future Issues.

Content

Historical Perspective: Evolution from Regulation towards Deregulation ("Open Skies")
Freedoms of the Air: Fundamental rules of international air transportation
International Organisations: Key organizations within the air transport industry

The History Perspective

1918-1938: Formative Period: Aviation primarily for air mail routes in the US, initially handled by the Post Office. Contract air mail routes were established, connecting various cities and transcontinental routes. The Air Mail Act of 1920 gave contracts to both airlines and aircraft manufacturers.
1938-1958: The Growth Years: The Civil Aeronautics Act of 1938 created the CAA, certifying flight personnel and focusing on safety. This led to the regulation of passenger, freight, and mail rates. Technological advancements led to higher-performance, long-range aircraft (i.e., DC-4). Air freight became a viable business sector.
1958-1978: Maturity: Jets (B-707, DC-9, etc.) entered service. Air traffic control became critical, and demands for further improvements led to notable developments. The short-range B737-100 and, later, wide-body jets (B747) became prominent.
1978-1991: Liberalisation: Restrictions on entry into the market due to regulations like Traditional Air Service Agreements (ASA). This included exclusive rights for designated airlines, nationality clauses, schedule of routes, determination of passenger and cargo tariffs, and capacity controls within the industry.
1992 Onwards: Towards "Open Skies": An international policy concept aiming for the liberalization of international aviation to create a free-market environment for airlines. Bilateral agreements led to open route access and unlimited Fifth Freedom rights.

1918-1938: Formative Period (continued)

Air Mail Act of 1934: US Government transferred air mail to the private sector and focused on competitive bidding (1-year contracts), leading to lower mail rates. This promoted the development of passenger air transport and separation of airlines from aircraft manufacturers.
First airway traffic control center established in Newark, NJ in 1935, initially operated by airlines but eventually transferred to the FAA.
Key aircraft advancements during this period included the Boeing 247 and the DC-1. Airlines began to make large purchases of these aircraft.

1978-1991: Liberalisation(continued)

US government offered additional gateway points for foreign airline services. New bilateral agreements with other countries (i.e., Singapore, Thailand, Korea, Philippines). European countries also began implementing similar agreements.
European agreements were similar to US agreements but also opened route access between countries, allowing for the emergence of low-cost carriers and new routes/markets.

1992 towards "Open Skies" (continued)

Key elements of the Open Skies policy include Open route access, unlimited Fifth Freedom rights, Open access for charters, Multiple designation of airlines, no frequency or capacity control.
Open Skies led to increased service to/from Heathrow, and service enhancements for US airlines.

International Organisations

ICAO (International Civil Aviation Organisation): A UN specialized agency that sets standards and recommended practices for air navigation, infrastructure, safety procedures, border-crossing facilitation, and air accident investigation. It works toward safe, secure, and sustainable development of civil aviation. Key strategic objectives include safety, security, environmental protection, efficiency, continuity, and rule of law.
IATA (International Air Transport Association): Represents the interests of airlines, with objectives to promote understanding of the benefits of aviation for national and global economies; driving industry-wide programs to increase passenger convenience, simplify processes and improve efficiency, and ensuring smooth movement of people and goods around the globe.
ACI (Airport Council International): Represents the interests of airports worldwide, focusing on safety, security, environmental issues, efficiency, customer service, and economic development.
ICAO, IATA, and ACI are key international organizations involved in establishing and regulating international air transport standards.

Freedoms of the Air

There are five basic freedoms that are, more or less, recognised by all ICAO member states, two others widely regulated, and two more hardly to be accepted.
1st Freedom: The right to fly and carry traffic over another nation's territory without landing.
2nd Freedom: The right to land in another nation for non-traffic related purposes (technical stops).
3rd Freedom: The right to drop off commercial traffic (passengers and cargo) for a foreign nation from the home country.
4th Freedom: The right to pick up commercial traffic in another nation and carry them back to the home country.
5th Freedom: The right for a carrier from the home country to land in a second country, then pick up passengers to a third country
6th Freedom: The right to carry commercial traffic from a foreign state through the home country to a third state.
7th Freedom: The right to carry traffic from one nation to another without going through the home country.
8th Freedom: The right for a carrier to carry traffic between two points in a foreign nation as part of a service from the home country. (cabotage)
9th Freedom: The right to operate flights between two points in a foreign country without stopping in another country, e.g. Ryanair flights between Berlin and Frankfurt (full cabotage)

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Description

This quiz explores key aspects of the airline business as discussed by various authors and publications. It covers government roles, significant acts, technological advancements, and the management perspectives in air transportation. Test your knowledge on important historical changes and industry organizations associated with aviation.