Aviation Systems: Management of the Integrated Aviation Value Chain

Preface
Aviation Systems Management Summary
	7 Chapters 1 and 2: Fundamentals and Structure of Aviation Systems
	7 Chapter 3: The Environment of Aviation
	7 Chapters 4–7: The Supply Side of Aviation
	7 Chapters 8 and 9: The Demand Side of Aviation
	7 Chapters 10–15: Steering and Controlling the System
	7 Chapter 16: Future Technologies and Development of Aviation
Contents
Contributors
List of Figures
List of Tables
1: The Future of Mobility: Trends That Will Shape the Mobility and Aviation Industry in the Future
	1.1	 Gigatrend Digitalization
		1.1.1	 Trend Management in General
		1.1.2	 Definition Gigatrend
		1.1.3	 The Gigatrend Digitalization
	1.2	 Megatrends
		1.2.1	 Individualization
		1.2.2	 Urbanization
		1.2.3	 Ecology
		1.2.4	 Globalization
		1.2.5	 New Life
			1.2.5.1	 Demographic Change
			1.2.5.2	 Gender Shift
			1.2.5.3	 Health
		1.2.6	 Knowledge Culture
		1.2.7	 New Work
		1.2.8	 Security
		1.2.9	 Mobility
			1.2.9.1	 Autonomous Vehicles
			1.2.9.2	 Sustainable Mobility
			1.2.9.3	 Sustainable Aviation
			1.2.9.4	 Mobility Sharing
	1.3	 Summary
	Literature
2: Fundamentals and Structure of Aviation Systems
	2.1	 Introduction
	2.2	 Historical Development of Air Transport
		2.2.1	 Technical Development 1783–1917
		2.2.2	 Pioneer Stage 1918–1928
		2.2.3	 Political Development 1929–1944
		2.2.4	 Development of Quality and Cost 1945–1971
		2.2.5	 Deregulation, Networks, Alliances and Low-Cost Operations 1974–1990
			2.2.5.1	 Deregulation of American Air Transport
			2.2.5.2	 Supply
			2.2.5.3	 Demand
			2.2.5.4	 Deregulation of the European Air Transport
			2.2.5.5	 Differences Between the European and American Markets
		2.2.6	 New Perspectives – Customer Value 1991–2005
		2.2.7	 New Materials and Technologies 2006–2018
		2.2.8	 2019 + Environment and New Fuels
	2.3	 Size of the Aviation Industry
	2.4	 Structure of the Aviation Industry
		2.4.1	 New Competitors
		2.4.2	 Substitutes
		2.4.3	 Customers
	2.5	 Special Characteristics of the Air Transport Market
	2.6	 Stakeholders in Aviation
		2.6.1	 Manufacturing Industry and Suppliers
		2.6.2	 Airlines
		2.6.3	 Air Taxi Services
		2.6.4	 Airports
	2.7	 Main Drivers and Economies
	2.8	 Approach Towards an Integrated Aviation System
	Literature
3: The Environment of Aviation
	3.1	 Introduction
	3.2	 Political Development of Aviation
	3.3	 Technological Development in the Aviation Industry
	3.4	 Economic Impacts
	3.5	 Effects on Society
	3.6	 Impact on the Environment
	References
4: From the Aviation Value Chain to the Aviation System
	4.1	 Introduction
	4.2	 The Aviation Value Chain
	4.3	 The Development of the Most Important Elements in the Aviation Value Chain
		4.3.1	 Airlines – Swiss International Airlines as an Example
		4.3.2	 Airports – Zurich Airport as an Example
		4.3.3	 Aircraft Manufacturers
	4.4	 The Link to the Aviation System
	References
5: Airline Strategy – From Network Management to Business Models
	5.1	 Introduction
	5.2	 Foundation of Aviation Strategies
	5.3	 Airline Strategy Approaches
	5.4	 Airline Network Management
		5.4.1	 Airline Network Economies
		5.4.2	 Main Variables of Airline Network Design
		5.4.3	 Network Management Processes
	5.5	 Alliances and Cooperation
	5.6	 Airline Business Models
	5.7	 The Fight for Concepts – A380 and B747 Versus B787 and A350
	Literature
6: From Airline Network Development to Airline Operations
	6.1	 Commercial Basics of an Airline
		6.1.1	 Nature of Airlines – High Fixed Cost
		6.1.2	 Planning Levels of Airlines
	6.2	 Network Strategy and Fleet Planning
		6.2.1	 Network Strategy – Mitigating the Volatile Demand
			6.2.1.1	 Selecting the Right Hub Infrastructure
			6.2.1.2	 Key Hub Parameters: Peak Capacity and Minimum Connecting Time (MCT)
			6.2.1.3	 Developing a Growth Plan
			6.2.1.4	 Disruptive Business Model of Pan-European Point-to-Point Networks
			6.2.1.5	 Disruptive Use of Technology to Create a Mega-Hub in Dubai
		6.2.2	 Fleet Planning
			6.2.2.1	 General Factors
			6.2.2.2	 Aircraft Specifics
			6.2.2.3	 Timing
	6.3	 Route Planning – Initial Step of Schedule Planning
		6.3.1	 Selecting the Right Destination Portfolio
			6.3.1.1	 Market Data
			6.3.1.2	 Schedule Offering
			6.3.1.3	 Selecting the Right Timings
			6.3.1.4	 Hub Structures
			6.3.1.5	 Example: SWISS Hub Structure in Zurich
	6.4	 Economic Evaluation
		6.4.1	 Route Profitability – The Point-to-Point View
		6.4.2	 Route Profitability – The Hub Carrier View
			6.4.2.1	 Using Route Profitability for Network Development
			6.4.2.2	 Economic Logic of a Hub System
			6.4.2.3	 Structural Figures
	6.5	 Operational Schedule Planning – Final Step of Schedule Planning
		6.5.1	 Slots at Capacity-Constrained Airports
		6.5.2	 Operational Ground Times
		6.5.3	 Technical Ground Times
		6.5.4	 Aircraft Productivity
	6.6	 Revenue Management
	Literature
7: Managing Airports
	7.1	 Introduction
		7.1.1	 Airport Ecosystems
		7.1.2	 Business Models
		7.1.3	 Airport Planning Requirements
		7.1.4	 Airport Components
		7.1.5	 Airport Costs and Revenues
	7.2	 Airport Competition
		7.2.1	 Spatial Development and Intermodality
		7.2.2	 Airport Systems and Partnerships
		7.2.3	 Operating Concepts and Service Offerings
	7.3	 Performance Management
		7.3.1	 Efficiency and Profitability
		7.3.2	 Capacity and Development
		7.3.3	 Regulation and Ownership
	7.4	 Service Quality
		7.4.1	 Expectations and Requirements
		7.4.2	 Perception and Evaluation
		7.4.3	 Experiences and Dependencies
	7.5	 Strategic Planning (Commercial Services)
		7.5.1	 Market Segmentation and Consumer Groups
		7.5.2	 Product and Service Development
		7.5.3	 Strategy Deployment and Adaptations
		7.5.4	 Environmental Sustainability of Airports
	Literature
8: Demand and Marketing in Aviation
	8.1	 Introduction
	Introductory Case: Booking an Airline Ticket
	8.2	 Demand and Market Segmentation
	Mini Case: Customer Segmentation in Asia
	8.3	 Product and Service
	8.4	 Customer Relationship Management
	8.5	 Customer Value
		Mini Case: British Airways – Cost-Cutting and Customer Value Decline
		8.5.1	 Customer Value Theory
		8.5.2	 Management of Customer Value
		Mini Case: Customer Value at Emirates
		8.5.3	 Customer Value Analysis
		Mini Case: Customer Value in Commuter Aircraft
		Mini Case: Passenger Preferences at Zurich Airport
	8.6	 Corporate Identity: Branding
	8.7	 Pricing and Distribution (Revenue Management)
	Mini Case: Ebookers
	Mini Case: Big Data in Aviation
	Literature
9: Passenger Behaviouristics
	9.1	 Decision Theories
	9.2	 Personal, Psychological and Socio-cultural Determinants
	9.3	 Trip Features
	9.4	 Marketing Variables
	9.5	 Characteristics and Features of the Choice Set
	9.6	 Service Quality, Customer Satisfaction, Perceived Value and Behavioural Intentions
	Literature
10: Authorities and Regulations in Aviation
	10.1	 Introduction
	10.2	 International and Supranational Organisations
		10.2.1	 UNO and ICAO
		10.2.2	 ECAC and JAA
		10.2.3	 EC and EASA
	10.3	 International Regulations in Aviation
		10.3.1	 The Chicago Convention and the Freedoms of the Air
		10.3.2	 The European Regulation of Air Law
		10.3.3	 Types of Regulations
	10.4	 Implementation of International Regulations
	10.5	 Special Aspects of Air Law
		10.5.1	 Definition and Qualification of Air Law
		10.5.2	 Structure of the Airspace
		10.5.3	 Rules of Circulation in the Air
		10.5.4	 Liability and Insurance in Air Law
		Mini Case: Judgement of the European Court of Justice (Third Chamber) 4 May 2017
		10.5.5	 Passenger Rights
	Literature
11: The Holy Grail of Aviation: Risk, Safety and Security
	11.1	 Introduction
	11.2	 Risk
	11.3	 Safety
		11.3.1	 Regulatory Arrangements and Requirements
		11.3.2	 Safety Management System
		11.3.3	 Safety Culture
		11.3.4	 Human Factors
	11.4	 Security
	Literature
12: Human Factors in Aviation
	12.1	 The Origin, Development and Importance of Human Factors
	12.2	 Human Factors Models
		12.2.1	 Beginning of Human Factors Models – The Heinrich Pyramid
		12.2.2	 ICAO SHELL Model
		12.2.3	 The Swiss Cheese Model
		12.2.4	 The Dirty Dozen
		12.2.5	 The Human Factors Analysis and Classification System (HFACS)
		12.2.6	 Safety-I and Safety-II
	12.3	 Culture as a Key Human Factor
		12.3.1	 Corporate Culture
		12.3.2	 Business/Industry Culture
		12.3.3	 National Culture
			12.3.3.1	 Power Distance (PDI)
			12.3.3.2	 Uncertainty Avoidance (UAI)
			12.3.3.3	 Individualism (IDV)
			12.3.3.4	 Masculinity (MAS)
			12.3.3.5	 Long-Term Orientation (LTO)
			12.3.3.6	 Indulgence (IVR)
	12.4	 National Culture as a Key Human Factor in Aviation
		12.4.1	 Human Factors/Crew Resource Management (CRM) Training Programmes
		Mini Case: Bad Apples of Power Distance
		Mini Case: Earning Good Fruit from Human Factors Training
		12.4.2	 Communication
		Mini Case: Understanding English Accents by Emirates Pilots
		12.4.3	 Standard Operating Procedures (SOPs)
		12.4.4	 Just Culture in an Aviation Context
	Mini Case: Just Culture Applied Well
	References
13: Risk Management in Aviation
	13.1	 Introduction
	Mini Case: Risk of Helicopter Crashes at Swiss Rescue Service (REGA) as an ­Opportunity or Chance for New Revenue Sources
	13.2	 Importance of Risk and Safety Management in Aviation
	Box 13.1 Mistakes and Deficiencies at Board Level (Kalia & Müller, 2019)
	13.3	 Definitions in Risk Management
	13.4	 Implementing a Risk Management System
		13.4.1	 Integration in Corporate Governance
		13.4.2	 Ten Steps for the Implementation of a Corporate Risk Management
		13.4.3	 Safety Management System Based on Corporate Risk Management
	13.5	 Director’s and Officer’s Insurance
	Literature
14: Aviation Governance
	14.1	 Introduction
	14.2	 Significance and Function of Corporate Governance
	14.3	 Modern GRC System for the Aviation Industry
	14.4	 Building a Talented Board of Directors
	Mini Case: Composition of the Swissair BoD in the Years 1996 to 2001
	14.5	 Recommendations for Aviation Governance
		14.5.1	 Situational Level
		14.5.2	 Strategic Level
		14.5.3	 Integrated Level
		14.5.4	 Controlling Level
	Literature
15: Long-Term Planning of Organizations in Industries with High Uncertainty Environments
	15.1	 Introduction
	15.2	 What Is the Real Issue of Long-term Planning in Aviation?
	15.3	 Theoretical Background to Long-Term Planning in Times of Uncertainty
		15.3.1	 Environmental Shocks Are no Black Swans, but Increases in the Level of Uncertainty
		15.3.2	 Strategy-as-Practice as Answer to How to Deal with High Levels of Uncertainty
	15.4	 Applications of Long-Term Planning in Times of Environmental Uncertainty
		15.4.1	 Long-Term Planning During Environmental Shocks
		15.4.2	 Long-Term Planning to Prepare for Future External Shocks and High Levels of Uncertainty
	15.5	 Discussion
	15.6	 Summary: How to Make Long-Term Plans in Times of and Prepare for Environmental Shocks and High Levels of Uncertainty?
	Appendix: Checklist for Aviation Managers to Make Long-Term Plans to Use during Times of Environmental Shocks and to Prepare for them
	Literature
16: New Frontiers in Aviation: Supersonic, Space Travel and Drones
	16.1	 Introduction
	16.2	 Supersonic Air Travel
		16.2.1	 History of Supersonic Air Travel
		16.2.2	 Challenges of Supersonic Air Travel
		16.2.3	 Outlook/Future of Supersonic Air Travel
		16.2.4	 Conclusion
	16.3	 Space Tourism
		16.3.1	 From Air Travel to Space Tourism
		16.3.2	 Future of Space Tourism
	16.4	 Drones and Urban Air Mobility
		16.4.1	 Definitions of Drones
		16.4.2	 Opportunities/Applications for the Drone Sector
		16.4.3	 The Drone Ecosystem
		16.4.4	 Use Cases of Drone Passenger Transport
			16.4.4.1	 Air Taxi
			16.4.4.2	 Airport Shuttles
			16.4.4.3	 Intercity Flights
	16.5	 Obstacles to the Implementation of Air Taxis
		16.5.1	 User Obstacles
		16.5.2	 Technology Obstacles
		16.5.3	 Law Obstacles
	References