Airline Operations and Service Management

UNIT 1: OVERVIEW OF AIRLINE OPERATIONS

1.1 Historical Perspective

1.2 First Airlines
1.3 Early Regulations
1.4 Airline Route Structures
1.5 Air Service Agreements
1.6 Global Alliances
1.7 Different Airline Governing Bodies
Learning Outcome: Briefly discuss the history of air travel, its regulations,
structures and agreements. Familiarize with the Airlines different Global
Alliances and Governing Bodies
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1.1 HISTORICAL PERSPECTIVE
LEONARDO DA VINCI– Leonardo, an Italian artist, inventor and
scientist designed a multitude of mechanical devices, including
parachutes, and studied the flight of birds as well as their structure.
About 1485 he drew detailed plans for a human-powered ornithopter (a
wing-flapping device intended to fly).
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GEORGE CAYLEY – English inventor, engineer and aviator, was first
referred in 1846 “The father of the Aeroplane” and “The father of
Aerodynamics

Designed first successful human glider. Discovered the four aerodynamic

forces of flight: WEIGHT, LIFT, DRAG and THRUST, and cambered wings,
which is the basis of the modern aero plane.
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HISTORICAL PERSPECTIVE
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COUNT FERDINAND VON ZEPPELIN

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WRIGHT BROTHERS – The First Successful Plane, 1903

- Orville and Wilbur Wright were two American aviation pioneers
generally credited for inventing, building and flying the world’s first
successful motor operated airplane
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What is an Airship?
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THE FIRST COMMERCIAL AIR SERVICE

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CRITICAL THINKING:

WHY AIRSHIPS CANNOT BECOME

AN AIRLINER?
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WORLD WAR 1 (1914-1918) – rise of the aircraft as weapon system and the
changing face of war. The Aircraft change the modern battlefield.
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AIRLINE GROWTH
1927: LONG-DISTANCE PASSENGER CRAFT developed that had a constant radio
contact with the ground.

CHARLES LINDBERG - 1927

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DID YOU KNOW…..??????

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KEY POINTS SUMMARY:
Significant Personalities:
• Leonardo da Vinci - vision of human powered ornithopter
• George Cayley - Father Of Aeroplane, Father of Aerodynamics , 1897
• Count Ferdinand Von Zeppelin - Zeppelin Airships, 1900
• Wilbur & Orville Wright - world’s first successful motor operated aeroplane 1903
• Charles Lindbergh - first long distance passenger craft (New York Paris)1927
Milestones:
1900 : Zeppelin Airships
1903 : Wright Brothers invention
1910: First Commercial Air Service for passengers
1914-1918 (WW1) : Aircrafts and Airships, used as weapon system during the war.
1919-1938 (Golden Age) : Airmail Services, Birth of the Airlines, Advancement in
Aircraft Technology, Birth of Commercial Aviation, Birth of Air Traffic Control,Birth
of Instrument Flying
1939-1945 (WW2):Drastic increase in aircraft development & production, massive
use of spitfires & helicopters
1945-1991(The Cold War): Ex military aircrafts were used in the business of
transporting people and goods.
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1.2 FIRST AIRLINES

1. KLM ROYAL DUTCH AIRLINES

• Founded in 1919, KLM is the oldest airline in the world
still operating under its original name.
• Legally Koninklijke luchvaart Maatschapij N.V. ( literal
translation: Royal Aviation Company, Inc.)
• Flag carrier airline of the Netherlands
• Headquartered in Amstelveen, with its hub at nearby
Amsterdam Airport Schiphol.
• Part of the Air France – KLM group and a member of the
SkyTeam airline alliance
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2. AVIANCA, S.A
• Founded on 5 December 1919, Avianca is the world’s
second oldest airline in the world and oldest airline in the
Western Hemisphere.
• Acronym in Spanish for Aerovias del Continente Americano
S.A. “Airways of the American Continent”
• Flag carrier airline of the Columbia
• Headquartered in Bogota, D.C., with its main hub at El
Dorado International Airport.
• member of the Star Alliance
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3. QANTAS AIRWAYS LTD.

• Founded in November 1920, Qantas is the third oldest airline
in the world still operating under its original name.
• Qantas name comes from “QANTAS” an acronym foor its
original name, QUEENSLAND AND NORTHERN TERRITORY
• Flag carrier airline of the Australia
• Headquartered in Sydney, with its main hub at Sydney Airport
• Founding member of the Oneworld airline alliance.
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1.3 EARLY REGULATIONS

PARIS CONVENTION OF 1919

The rapid international expansion of airline routes led to the first
international conference, the Paris Convention of 1919, to address
regulation of air commerce and conflicting claims of national
sovereignty of airspace. The conferees concluded that each nation has
absolute sovereignty over the airspace overlying its territories and
waters and, therefore, the right to deny entry and regulate flights
through its airspace. On the other hand, the conference sought to
encourage air transport by developing rules applying equally to all
airlines and affording as much freedom of passage as possible.
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WARSAW CONVENTION OF 1929

The Warsaw Convention established the first international airline

liabilities and passenger rights. Airlines of the ratifying countries were
required to issue passenger tickets and baggage claim checks for
checked luggage. The Convention recognized the right to compensation
for loss of cargo or luggage and for injury or death, but it limited the
airlines’ liability. The Warsaw Convention has since been modified, but
remains the basis for airline liability worldwide.
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1.4 AIRLINE ROUTE STRUCTURES

Route structure choice is the foundation of an airline’s product.
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DIFFERENT AIRLINE ROUTE STRUCTURES

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1. POINT TO POINT
The point-to-point system is the simplest means to connect the cities an airline
chooses to serve. Each origin and destination city, or city-pair, is served by non-
stop flights. All passengers who board at the origin deplane at the destination. In
a pure point-to-point system, passengers do not connect to any other flight.
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2. LINEAR
The linear route system is a simple extension of the point-to-point
structure. Rather than terminating at the first stop, the flight continues to
one or several additional cities.
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3. HUB AND SPOKE

The H&S route system became the post-deregulation standard in the
United States and is employed by most of the largest airlines worldwide.
It is much more complex to design and operate than the point-to-point
and linear systems.
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1.5 AIR SERVICE AGREEMENTS

OPEN SKIES POLICY
Open sky refers to an agreement between two countries to allow any
number of airlines to fly from either of them without any restriction on
number of flights, number of destinations, number of seats, price and so
on. However, this is a general definition. In actual practice, there are
always some restrictions.
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1.6 AIRLINE GLOBAL ALLIANCES

An airline alliance is an aviation industry arrangement between two
or more airlines agreeing to cooperate on a substantial level. Alliances
may provide marketing branding to facilitate travelers making inter-
airline codeshare connections within countries.
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1. STAR ALLIANCE
is the world's largest global airline alliance
Founded on 14 May 1997, and its headquarters is
located in Frankfurt, Germany
Five founding members: United Airlines, Scandinavian
Airlines, Thai Airways, Air Canada and Lufthansa
Its slogan is "The Way the Earth Connects".
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2. ONE WORLD
is an airline alliance founded on February 1, 1999. Its central
alliance office is in New York City (previously in Vancouver)
its founding members are American Airlines, British
Airways, American Airlines, Cathay Pacific and Qantas
Airways
Its slogan is “Travel Bright".
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3. SKYTEAM
Founded in June 2000, SkyTeam was the last of the three alliances
to be formed, the second largest of the three major alliances.
Operates with the slogan "Caring more about you".
SkyTeam Central is based in Haarlemmermeer, Netherlands.
founding members are Delta Airlines, Aeromexico, Air France
and Korean Air
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1.7 DIFFERENT AIRLINE GOVERNING BODIES

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1. ICAO
The International Civil Aviation Organization, part of the United Nations
system, was founded to set up international standards in aviation.
In this way civil aviation regulations are harmonized all over the world, with
slight differences based on the actual implementation in national regulations.
These local differences are then reported back to ICAO and published.

Head Quarters: Montreal, Canada

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2. CAAP
The Civil Aviation Authority of the Philippines (CAAP) is a multi-
role government agency responsible for the regulation of aviation in
the Philippines.

Head Quarters: NAIA Road, Pasay City

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3. IATA
The International Air Transport Association (IATA) is a non-
governmental organization, the industry association for airlines. It
supports aviation with global standards for airline safety, security,
efficiency and sustainability.

Head Quarters: Montreal, Canada

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KEY POINTS SUMMARY:

● FIRST AIRLINES: KLM Royal Dutch Airlines, Avianca Airlines,Qantas Airways
● EARLY REGULATIONS:
1. PARIS CONVENTION OF 1919 - relating to regulation of aerial navigation
2. WARSAW CONVENTION OF 1929 - relating to passenger rights and airline
liabilities
● AIRLINE ROUTE STRUCTURES: Point to Point, Linear, Hub and Spoke
● Open Skies Policy - agreement of two countries to allow airlines to fly either of
them without any/some restrictions on number of flights,number of
destinations,number of seats, price, etc.
● AIRLINE GLOBAL ALLIANCES: Star Alliance, Oneworld and Skyteam
● AIRLINE GOVERNING BODIES: ICAO (International Civil Aviation Organization, IATA
(International Air Transport Association) and CAAP (Civil Aviation Authority of the
Philippines
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