Book 3 Airline Economics AIR TRANSPORT INDUSTRY : Producers: Manufacturers Airframes/Engines, Mechanical Systems, Computer Systems, Aircraft Parts,

s, Materials/Chemicals Airlines Major/Regional/Charter Airlines, Air Taxi Operators, Air Cargo Carriers, Special Services, General Aviation Governments Legislative Bodies, Regulatory Bodies, Aviation Authorities, Customs, Immigration Aviation Services Insurances/Leasing, Sales Distribution, Suppliers Telecoms Aircraft, Maintenance, Fuel & Oil/Consultants Airport/Services Major Airports, General Aviation Airports, Training Centers Terminal, Maintenance Catering I, ATC Services Consumers: Passengers Trains/Car-Hire/Hotels/Restaurant/Tourism/Retails Travel Agents Meetings/Events Freight Freight Forwarders, Transport Warehousing, Consolidation, Input to Other, Industries/Mail TOTAL PERFORMANCE SYSTEM: The IPO of Production 4 factors of production men, money, machines and materials Machines In the airline industry, it is among the most capital-intensive items that make the industry one of the largest in the global economy. Range, payload, fuel consumption, noise control and measure of obsolescence are considered for the profitability of an airline. Fleet commonality for flexibility is also cited. Men - The airline human resources have experienced the most turbulent transformation within the airline industry with both material and psychological impact on the global economy. Money The proliferation of venture capitalists ensures the free flow of money for as long as the venture is viable. Materials The acquisition and utilization of materials have also become critical in the airline industry. Fuel and oil, without those will cause the airline to cease to operate. AIRLINE ACCOUNTING STRUCTURE The final measure of an airlines success is in the bottom line and how it contributes to the appreciation of the