Air Transportation: A Management Perspective

Contents......Page 6
About the Author......Page 10
Preface......Page 12
Acknowledgments......Page 22
PART ONE: AN INTRODUCTION TO AIR TRANSPORT......Page 24
1 Aviation: An Overview......Page 26
The Aerospace Industry......Page 27
The Air Transportation Industry......Page 44
2 Historical Perspective......Page 52
The Formative Period: 1918–1938......Page 54
The Growth Years: 1938–1958......Page 62
Maturity — Jets Arrive: 1958–1978......Page 64
Economic Developments Prior to Deregulation......Page 66
Federal Legislation and the Airlines......Page 69
Postderegulation Evolution......Page 83
General Aviation......Page 90
3 Air Transportation: Regulators and Associations......Page 102
Introduction......Page 103
The Department of Transportation......Page 104
The Federal Aviation Administration......Page 110
The National Transportation Safety Board......Page 118
Major Aviation Associations......Page 123
4 The General Aviation Industry......Page 134
General Aviation Statistics......Page 135
The General Aviation Support Industry......Page 150
The Available Market — The Users......Page 159
PART TWO: STRUCTURE AND ECONOMICS OF AIRLINES......Page 168
5 The Airline Industry......Page 170
Structure of the Airline Industry......Page 171
Major and National Carriers......Page 174
Regional Carriers......Page 177
Airline Certification......Page 181
Data Collection by the DOT......Page 185
Industry Agreements......Page 186
Traffic and Financial Highlights: 1960–2005......Page 188
6 Economic Characteristics of the Airlines......Page 198
Introduction......Page 199
The Airlines as Oligopolists......Page 200
Other Unique Economic Characteristics......Page 209
The Significance of Airline Passenger Load Factors......Page 214
PART THREE: MANAGERIAL ASPECTS OF AIRLINES......Page 222
7 Airline Management and Organization......Page 224
Management......Page 225
The New Corporate Structure......Page 229
Functions of Management......Page 233
Organization......Page 236
The Organizational Chart......Page 239
Staff Departments......Page 241
Line Departments......Page 246
8 Forecasting Methods......Page 266
The Purpose of Forecasting......Page 267
Forecasting Methods......Page 269
9 Airline Passenger Marketing......Page 280
Introduction......Page 281
Development of the Marketing Concept......Page 282
The Marketing Mix......Page 283
The Consumer-oriented Marketing Concept......Page 292
Marketing Strategies Since Deregulation......Page 297
10 Airline Pricing, Demand, and Output Determination......Page 306
The Trend in Domestic Passenger Airfares......Page 308
Pricing and Demand......Page 311
No-frills Airfare and Survey Warfare......Page 319
Types of Passenger Fares......Page 320
The Pricing Process......Page 321
Airline Costs......Page 327
Pricing and Output Determination......Page 332
11 Air Cargo......Page 342
Historical Overview......Page 344
Air Cargo Today......Page 348
The Future......Page 351
The Market for Air Freight......Page 352
Types of Air Freight Rates......Page 354
Special Air Freight Services......Page 356
Factors Affecting Air Freight Rates......Page 360
12 Principles of Airline Scheduling......Page 366
The Mission of Scheduling......Page 367
Equipment Maintenance......Page 369
Flight Operations and Crew Scheduling......Page 372
Ground Operations and Facility Limitations......Page 374
Schedule Planning and Coordination......Page 376
Equipment Assignment and Types of Schedules......Page 387
Hub-and-Spoke Scheduling......Page 389
Data Limitations in Airline Scheduling......Page 392
13 Fleet Planning: The Aircraft  Selection Process......Page 396
Factors in Fleet Planning......Page 397
Design and Development — The Manufacturer\'s Viewpoint......Page 405
The Fleet-planning Process......Page 410
The Decision to Upgrade or Replace......Page 415
Appendix: Fleet Planning at American Airlines......Page 419
14 Airline Labor Relations......Page 422
Introduction......Page 423
The Railway Labor Act and the Airlines......Page 424
Historical Overview of Airline Union Activity......Page 429
Labor Relations Since Deregulation......Page 435
Human Resources in the 21st Century......Page 446
15 Airline Financing......Page 450
Sources of Funds......Page 451
Sources and Uses of Funds by the U.S. Scheduled Airlines......Page 460
Cash Management and Financial Planning......Page 473
PART FOUR: THE INTERNATIONAL SCENE......Page 480
16 International Aviation......Page 482
The Question of Sovereignty in Airspace......Page 483
International Air Law......Page 486
The Formation of IATA......Page 493
The Bermuda Agreement of 1946......Page 494
Three Decades Later: From Bermuda to Deregulation......Page 495
The Pursuit of Open Skies......Page 499
Globalization......Page 503
Future Challenges......Page 507
Appendix A: Views of Industry Professionals......Page 512
Quotes......Page 513
Article......Page 515
Appendix B: Career Planning in Aviation......Page 522
Choosing and Getting Your First Job in Aviation......Page 523
Cover Letters and the Résumé......Page 529
The Interview......Page 531
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