Airline Management and Marketing

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Questions and Answers

What are the two main important functions of airlines?

Airport and Security functions

Reservation and Airport functions (correct)

Commercial and Technical functions

Promotion and Place functions

What do agents in the airline industry primarily derive their income from?

Commission paid by passengers

Service fees from passengers

Commission paid by carriers (correct)

Commission paid by hotels

What is the primary function of a Computerized Reservation System (CRS)?

To store and retrieve information on air travel

To conduct transactions related to air travel

To display airline schedules and prices for agents (correct)

To book and sell tickets for multiple airlines

What is a Global Distribution System (GDS)?

A major CRS operation that books and sells tickets for multiple airlines Signup and view all the answers

Why is airport handling a critical area of an airline's function?

All of the above Signup and view all the answers

Which unit is responsible for non-technical functions at an airport?

Commercial or passenger handling unit Signup and view all the answers

What is included in the commercial unit of an airport?

Check-in activities, mini reservations, and excess baggage counters Signup and view all the answers

What is the primary role of agents in the airline industry?

To influence customer decisions concerning destination and carrier Signup and view all the answers

What is the primary function of an airline's own department during security checks?

Verifying passenger identities and baggage Signup and view all the answers

What was the primary source of revenue for many aircraft operators in the early days of air transportation?

Mail services Signup and view all the answers

What was the significance of the DC-3 aircraft in 1935?

It was the first aircraft to operate profitably on passenger revenues alone Signup and view all the answers

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 Signup and view all the answers

When did the first commercial all-cargo aircraft services begin?

1931 Signup and view all the answers

What is the role of Air Freight Forwarders?

They act as middlemen between shippers and airlines Signup and view all the answers

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 Signup and view all the answers

What is the primary purpose of Air Mail?

Transportation of mails Signup and view all the answers

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

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Description

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.