16 Questions
What are the two main important functions of airlines?
Reservation and Airport functions
What do agents in the airline industry primarily derive their income from?
Commission paid by carriers
What is the primary function of a Computerized Reservation System (CRS)?
To display airline schedules and prices for agents
What is a Global Distribution System (GDS)?
A major CRS operation that books and sells tickets for multiple airlines
Why is airport handling a critical area of an airline's function?
All of the above
Which unit is responsible for non-technical functions at an airport?
Commercial or passenger handling unit
What is included in the commercial unit of an airport?
Check-in activities, mini reservations, and excess baggage counters
What is the primary role of agents in the airline industry?
To influence customer decisions concerning destination and carrier
What is the primary function of an airline's own department during security checks?
Verifying passenger identities and baggage
What was the primary source of revenue for many aircraft operators in the early days of air transportation?
Mail services
What was the significance of the DC-3 aircraft in 1935?
It was the first aircraft to operate profitably on passenger revenues alone
What is the main difference between Air Express and Air Freight?
Air Express is used for small packages, while Air Freight is used for larger shipments
When did the first commercial all-cargo aircraft services begin?
1931
What is the role of Air Freight Forwarders?
They act as middlemen between shippers and airlines
What was the impact of the arrival of Jumbo Jets on the cargo business?
It led to a decline in cargo business due to increased competition from passenger aircraft
What is the primary purpose of Air Mail?
Transportation of mails
Study Notes
Airline Functions
- Two main functions of airlines: Reservation functions and Airport functions
Reservation Functions
- Three basic types of sales outlets in the airline industry: Carrier's own sales offices, Other carrier's sales offices (interline), and Travel Agencies
- Agents play a critical role in the airline marketing distribution system, influencing customer decisions on destination and carrier
- Agents' income is primarily derived from commissions paid by carriers, hotels, and others
- Computerized Reservation System (CRS) displays airline schedules and prices, stores and retrieves information, and conducts transactions related to air travel
- Global Distribution System (GDS) is a major CRS operation that books and sells tickets for multiple airlines
- Examples of major GDS include Amadeus, Sabre, Galileo, Worldspan, and others
Airport Functions
- Most important and critical area of airline functions, ensuring flights leave on schedule and passengers are attended to professionally
- Airport functions are divided into Non-technical and Technical activities
- Non-technical functions are performed by the Commercial or Passenger Handling Unit, including X-raying of baggage, check-in activities, and security checks
- Technical activities are performed by Engineering, Ground Handling, Operations, Inflight Services, and Catering
Air Cargo
- Air cargo refers to the total volume of freight, mail, and express traffic transported by air
- May include small-package counter services, express and priority reserved freight
- Air cargo was "born" on May 28, 1910, when Glenn Curtiss flew a sack of mail from Albany to New York City
- First commercial aircrafts were built primarily to transport mail, which was the principal source of revenue for many aircraft operators
- The arrival of DC-3 in 1935 changed the scene, with a focus shift from cargo to passenger
- Air Express refers to small packages with a higher priority of carriage than air freight, while Air Freight refers to traffic carried in all-cargo aircraft
- Air Freight Forwarders act as middlemen between shippers and airlines, consolidating individual shipments and tendering them to airlines at carriers' volume rate
- The arrival of Jumbo Jets in 1970 both helped and hindered cargo business, as they could carry over 100 tons and containers measuring 8x8x40 feet, but also accommodated most air cargo at a lower cost than dedicated freighters
This quiz covers the basics of airline management, including reservation functions, airport functions, and the 4Ps of marketing. It also explores the role of agents in the airline marketing distribution system.
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