MICRO
MICRO
MICRO
Transportation Sector
Transport or Transportation is the movement of people and goods such as cargo
from one place to the other.
(Cargo is an important revenue source for most passenger airlines)
The term is derived from the Latin words:/trans/ - ACROSS /portare/ - TO CARRY.
In addition to the airlines, other transportation providers that are considered partially or
fully. In the travel business include motorcoach operators, railroads, ferry services, car
rentals companies, and even the cruise industry.
Aircraft Manufacturing
Civil Aviation
- Major Carriers – domestic and international
- Regional Carriers (commuters)
- Supplemental Carriers (Charters)
- Cargo
General Aviation
- Private Planes
- Pleasure flying, land surveying
- Flying Instruction
- Agricultural use
- Cargo
- Corporate Jets
- Air Taxi Services
Military Aviation
Airport Operations
Aviation Support Industries
It is further divided into two:
Civil Aviation
the industry that flies the public from place to place.
Civil Aviation, in turn can be divided into:
1. Domestic service
a flight must start and end within the borders of the same country.
2. International service
the flight starts in one country and ends in another.
Military Aviation
aircraft flown by a nation’s air force and other branches in the military.
Another way to look at flights – from the traveler’s ticketing point of view:
ONE-WAY FLIGHT ITINERARY
the traveler goes to point A to Point B.
ROUND TRIP FLIGHT ITINERARY
the traveler flies from Point A to Point B, stays a while and then returns from B to
A.
OPEN-JAW FLIGHT ITINERARY
traveler flies from Point A to Point B then travels by ground transportation from B
to C, then returns by air from C to A.
CIRCLE FLIGHT ITINERARY
traveler has two or more extended stopovers and returns to the originating city.
CLASSIFICATIONS OF AIRLINES
MAJOR/FULL – SERVICE CARRIERS
• Servicing both domestic and international (including long haul) flights
• Usually offers several classes of service
REGIONAL - CARRIERS
• Also known as feeder airlines because their flights feed passengers from small
cities into big city-airports and help fill the large planes of the major airlines.
LOW COST CARRIERS (LCCs)
• Emerged after the liberalization of Civil Aviation in North America and Europe in
1970’s
• Cheap, point-to-point services without any “frills”
• They offer basic services
• Passengers have the option to pay for extras such as food on board, in flight
entertainment and checked (in) baggage
AIRLINE HUBS AND SPOKES
HUBS - are airline’s centralized operation units, usually near major population centers,
both domestic and international to serve as convergence airports for their route
systems.
FORTRESS HUBS are airline dominated airports where airline administrative centers
are usually located.
SPOKES
Airlines flying smaller planes feed passengers from outlying towns into hub cities
forming the spoke of the hub.
Airline Criteria for Choosing a Hub
• Central location in the area
• Market size, large local population
• Positive competitive environment
• Potential for generating new passenger and freight revenue
• Airport facilities
• Good operating conditions
AIRLINE CODES
• Each airline has a code of either two letters or a combination of letters and
numbers
• Are relatively easy to learn because most but not all have some relation to the
name of the airline
• Except those international airlines the came along after the logical codes were
given out
CITY CODES
Airports have two names:
• the name of the airport (usually honoring a local hero or the politician in office
when the airport was built)
• IATA 3-letter identifiers
Types of Aircraft
• Engine Type
• Purpose
• Body Width
ENGINE
TURBOPROPS (PROPELLER DRIVEN BY JET ENGINE) OR CONVENTIONAL
TURBINE JET ENGINE
• Seating capacity between 19 to 70 seats
• Short range
• Less carrying capacity
• Less runway requirements
• Commonly cruise at just above 500 km/hr
JET ENGINE
• Seating capacity between 40 – 855 (Airbus A380 – 800)
• Larger aircrafts are for long – haul flights
PURPOSE/MISSION
• SHORT HAUL – 750 miles and up to 3 hours flying time
• MEDIUM HAUL – 751 – 2,500 miles and 3 – 6 hours flying time
• LONG HAUL – over 2,500 miles and 6 – 13 hours flying time
• ULTRA-LONG HAUL – 14 hours and above
The longest non-stop passenger service is between Singapore and Newark
(NJ) in an all-business class configuration by Singapore Airlines
BODY WIDTH
• Narrow-body aircraft
• Wide-body aircraft
CLASSES of SERVICE
FIRST CLASS
• is in the compartment at the front of the plane.
It usually features, among other things:
• wider seats;
• greater pitch;
• more recline;
• more elaborate meals;
• complimentary alcoholic beverages;
• and free movies.
BUSINESS CLASS
• usually sandwiched between the first and the coach class.
• business class represents a kind of service that’s almost as good as that found in the
first class.
ECONOMY CLASS
• the more standard level of service
• also known as the coach class
It features:
• narrower seats;
• less pitch and recline;
• simple meals or snacks or even no food service at all, except perhaps a bag of
pretzels and soft drink.
The Airport Experience
What do today's major airports feature? To find out, let's follow the typical passenger
arriving for a flight. First, the traveller parks at a lot or structure, perhaps owned by the
airport, perhaps independent. The other possibility is that he arrives in a taxi, bus,
shuttle, subway, or train, or maybe a friend drops him off. At curb side, he's able to give
his luggage to a skycap (a luggage handler at curb side) and avoid waiting in line at the
check-in counter within the airport. (The skycap expects a tip.) But no, instead he
decides to go inside the terminal and wait in the regular line. Too bad he's not in first or
business class. These often have their own check-in lines, which usually are shorter.
After about a 15-minute wait, a customer service representative calls him over. The
traveller thought about going in the automated, do-it-yourself check-in line—such self-
service kiosks are now common—but he likes that personal touch. The service rep asks
to see his photo ID, prints him a boarding pass (or has him do it on a kiosk at the check-
in counter), asks the passenger to take his checked luggage to a security screener (or
takes it from the passenger and sends it off to the screener), and directs him toward the
gate from which his flight will depart. The passenger strolls off and, because he has 90
minutes before his flight departs, decides to buy a bagel at a store in the terminal. He
then heads to security, where he must show his boarding pass and photo ID, have his
small carry-on bag scanned through an x-ray machine, and pass through a metal
detector or imaging device. He may be pulled aside for a more detailed security check,
including having a wand like device passed over him or a physical pat-down to detect
anything illegal, such as a weapon. The contents of his carry-on bag may be examined
too. The security check is over, so he continues on. He passes a bookstore and buys a
newspaper. This airport has stores and food services both before and after the security
screening. He gets to the gate, sits down (no need to check in again at the gate), and
waits for boarding to commence, usually 30 to 45 minutes before flight departure. The
passengers are asked to board by row numbers, starting from the back of the plane.
He's in the second group called (rows 42 to 30), again shows his boarding pass, and
gets onto the jet, where he settles into his assigned window seat.
After an uneventful flight, he exits the plane as he entered it: along a jet way, corridor, a
moveable device that connects the aircraft to the terminal. He follows the signs to
baggage claim. His luggage comes off the baggage carousel after a modest 10-minute
wait. If our imaginary passenger had been on an international flight, his arrival would =
have been a bit more complicated (Figure 3-2). He would have had to show E: passport
and gone through Immigration and Customs. (Immigration deals vi people-related
factors such as citizenship, purpose of the trip, and so on. Custom: deals with things
such as items purchased abroad.) For simplicity's sake, we've left out several steps,
details, and complexities in little scenario. Compare it with your own experiences at the
airport .to "fill blanks" of the typical flight experience.
Airport and Aviation Management
It's hard to conceive of how huge, complex, and interdependent the network °I1 airport
and aviation-related businesses is. Let's divide it into four groups: airport management,
fixed-base operators, airport ancillary services, and government organizations.
• Airport Management concerns itself with making the operations of an airport efficient,
safe, and profitable (or at least break even). It must serve the needs sometimes
conflicting of travellers, tenants (the airline and airport shops).
Most of the time, airports belong to a municipal government, but occasionally they're
operated as private businesses. Among the duties of airport management personnel are
administration, operations, marketing, finances, maintenance, interterminal
transportation, safety, security, policing, fire fighting, and noise abatement.
Fixed-base operators (FBOs) are companies that provide ground services and support
to the aviation industry. These businesses provide aircraft inspection, repair, and
maintenance (for airlines that do not have their own maintenance programs at the
airport), pilot training, aircraft sales and rentals, de-icing services, and aircraft cabin
cleaning services. Their trade association is the National Air Transportation Association
(NATA).
• Airport ancillary services consist of just about every other airport-related supplier you
can think of. Some are based on-site at the airport (such as airline caterers, stores,
restaurants, and private security firms); others are based P or completely off-site (such
as taxis, shuttle and limo services, airport hotels, car rental firms, and bus companies).
• Government organizations can be the cities or counties that own the airports (including
their police). However, the government entity that has the most crucial presence at
airports is the FAA. The FAA monitors the air travel system to ensure safety and
manages the airspace above the United States (primarily through their air traffic control
facilities). Another subsidiary of the Department of Transportation is the TSA, which
helps keep airports and flights safe. This system describes how airport and aviation
management operates in the United States. Most major nations have very similar
systems to that in place in the United States.
Airfares
Navigating your way through an airport and exploring its many businesses is easy
compared to finding your way through the thicket of airfares that face a would-be
traveller, even for a simple trip. For example, on any given flight, odds are that one
passenger may have paid $300, the person sitting next to him $700, and the person
next to her $1,200. In fact, it's theoretically possible that every single person on the flight
has paid a different fare. To help clarify things, let's look at some of the factors that
influence what you pay for a flight:
If you're traveling on a full-coach fare. Coach fares that aren't eligible for any
discounts (and that could cost nearly as much as a business- or first-class fare)
are usually unrestricted fares, meaning that you can make changes to your
itinerary without incurring a penalty. Fares that have been discounted are
usually called promotional fares. These types of fares almost apply always
to coach only.
How far in advance you buy the ticket. Generally, the farther you advance
you buy, the less you pay Tickets purchased less than, say, seven days before
the flight will be charged at full fare. Just making a reservation, by the way,
doesn't lock in the price. The price becomes guaranteed only when the ticket is
actually purchased. What if the price goes down after you bought it? You may be
able to change your ticket, but in most cases the airline will apply a change fee (a
fee to change the reservation) that costs more than the difference in price. Also,
some airlines will issue a credit for the difference—to be applied to a future flight
—rather than refund any money.
What class of service you bought. Coach almost always costs less than
premium coach, premium coach less than business, and business less than first.
Remember, though, the difference between full-fare coach and business or first
may not be that much.
Whom you bought it from, or how. The majority of all airline tickets are bought
through travel agencies, both brick-and-mortar and online. However, because
most airlines no longer pay travel agencies a commission for the sale, agencies
usually add a service fee to the cost of the ticket. Because travel agents are
generally more adept than consumers at finding the best fares available, buying
a ticket from an agency, even with the service fee tacked on, may save the
traveler money. Buying through a cruise line or tour operator may result in a
special airfare too.
Some airlines offer low, Internet-only fares on their Web sites. The idea is that
because no employee directly aids the process, the cost to the airline of
providing the ticket in this self-service way is much lower. However, you of
purchase a deeply discounted ticket, you sometimes may not be eligible for
frequent-flyer miles or may not be able to get your seat assignment in advance
Once a reservation is entered into the airline's computer system, it's said to be a
confirmed reservation. If it cannot be entered because the desired flight is fully booked,
the traveler can ask to be placed on the waitlist, in case a seat becomes available. If
cancellations on the desired flight do occur, the person may clear the waitlist and be
offered a confirmed reservation by phone or e-mail. Generally, waitlisted passengers
take a reserved confirmation on an alternate flight in case they don't clear the waitlist.
Your position on the waitlist is based on when you were put on it and, more important,
what kind of fare you paid. A person who bought a full-fare ticket of $1,300 will probably
clear the waitlist before someone with a $300 promotional ticket, even if the person with
the $300 ticket was waitlisted much earlier.
Who Sells Airline Tickets?
By now you should have figured out who sells airline tickets; in other words, how
the product is distributed. Let's summarize it all here. The prime suppliers of airline
tickets, of course, are the airlines themselves, but—surprising to most people—airlines
are not the major distributors: travel agencies are. Eventually, this may change.
Because most airlines no longer pay commissions to travel agencies for selling their
product, agencies find it difficult to make a profit selling flights—and some price-
sensitive consumers resent paying the extra service fees that most agencies must
charge to make a profit on selling airline tickets. It should be noted, though, that airlines
do rather confidentially continue to provide commissions or tickets at reduced cost to
mega-agency chains, including online ones, and to large individual agencies that do
considerable business with them. How do the airlines distribute tickets? Tickets are
distributed through toll-free reservation numbers, the Internet, and at airport ticket
counters. Other distributors
3. Red-eye flights - a flight that departs late at night and arrives early in the morning, the
following day. Red eye flights are most used by business travelers who want to travel
overnight as to not miss a working day. The term 'red eye' comes from when passengers
eyes turn red from tiredness after late night or early morning travel.
Additional Notes:
Red eye flights are usually cheaper. Because of their obscure flight times, red eye flights
are usually less in-demand. Therefore, airlines offer red eye flight tickets at a cheaper price as
an incentive for passengers to book flights during these off-peak hours. Use the search bar at
the top of the page and sort by 'lowest price' to see cheap red eye flights.
4. Interline Agreement – Interline is a relationship between airlines which allows
one airline sells services to a customer that are provided by
another airline. Airlines uses interline to sell itineraries that they would otherwise not
be able to serve alone.
Additional Notes:
When two airlines enter an interline agreement, it’s the most basic form of partnership
you will find. In essence, it allows passengers to book through itineraries on multiple airlines
with less hassle than booking each one separately.
Usually, if two airlines have an interline agreement in place, they will handle the check in and
baggage for each other’s passengers. That means travelers only have to check in once for all the
flights on the itinerary, and that their baggage will be transferred by the first airline to the
second airline, without them having to manually collect it and drop it off again.
For the airlines involved, this sort of agreement can attract more passengers by providing easy
connectivity to destinations not served by the original airline. Emirates recently signed an
interline agreement with Mexico’s Interjet, which will allow passengers on its new Mexico City
flights to continue on to other destinations without having to recheck themselves or their
luggage.
The downside of an interline agreement is that passengers can’t collect frequent flier miles for
the whole trip. On the Emirates flight, for example, Skywards miles would only be earned on
the Dubai-Mexico City portion of the flight, not on the onward journey.
There can also be variances in things like luggage allowances for carry on, and there is no
coordination on timings for flights, so it’s not always the easiest method of getting a right
through booking.
Additional Notes:
The market price always reflects the real value of a stock. It is desirable to buy
stocks when they are oversold. That means the buyer believes he is getting a bargain and will
profit from the purchase in the future. When a stock is overbought owners who are not
emotionally attached to the stock should sell it.
10. No show - That's right, in the Hospitality Industry, a person who does not arrive where
and when they should at a hotel or motel, and makes no explanatory contact, is called
a No-Show. ... In this circumstance, the canceller may or may not be charged a
cancellation fee, depending upon hotel policy.
a person who reserves space (as on an airplane) but neither uses nor cancels the reservation. a
person who buys a ticket but does not attend broadly : a person who is expected but who does
not show up and failure to show up.
11. Gate agents - work at the boarding gates of airports where passengers board their
flights and arriving planes drop off passengers.
Additional Notes:
As a gate agent, you most likely work for a single airline and move to various gates as needed.
Your job duties include checking boarding passes, assisting passengers onto flights, upgrading
seats, accommodating tardy passengers, and other similar duties.
12. Bumped - Obviously, they cannot fit all the passengers onto the one flight because it is
overbooked, and they simply do not have enough seats, so they use a practice called
'Bumping'. Bumping is simply a term used for moving passengers to another flight
because of the flight being overbooked.
Additional Notes:
In airline parlance, to bump is to deny a passenger boarding with a valid ticket, often due to an
oversold flight. ... If an airline cannot get enough passengers to volunteer, a passenger may
be bumped involuntarily, though these passengers would be allowed to get the federal
minimum compensation for it.