Notion Press

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First Published by Notion Press 2016 Copyright © Edissa Uwayo 2016 All Rights Reserved.

ISBN 978-1-945825-98-9

This book has been published with all efforts taken to make the material error-free after the consent of the author. However, the author and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

No part of this book may be used, reproduced in any manner whatsoever without written permission from the author, except in the case of brief quotations embodied in critical articles and reviews. Contents

Preface vii Abstract ix

1. INTRODUCTION TO AVIATION MANAGEMENT 1 1.0. Introduction 1 1.1. History Of Aviation 1 1.2. Meaning And Definitions 12 1.3. Development Of Air Transportation In The World 14 1.4. Characteristics Of Air Transport 18 1.5. Major Players In Airline Industry 20 1.6. Swot Analysis In Air Transport Industry 23 1.7. Market Potential Of Airline Industry 23 1.8. Competition And Marketing Strategies In Airline Business 25 1.9. International Civil Organisations: Iata And Icao 27

2. AIRPORT PLANNING AND MANAGEMENT 35 2.1. Introduction 35 2.2. Airport Planning And Design 35 2.3. Operational Area, Terminal Planning And Airport Operations 40 2.4. Airport Operations 56 2.5. Airport Functions 59 2.6. Airport Structure 60 2.7. Organization Structure Of Airline 61 2.8. Airport Authorities 64

3. AIRPORT SERVICES 77 3.0. Introduction 77 3.1. International Trends In Air Transport Service 77 3.2. Emerging Indian Scenario In Air Transport 78 3.3. Public Private Partnership Policy 78 3.4. Private Participation In International Developments 84 3.5. Environment Regulations In Aviation 85 3.6. Environmental Impacts In The Airline Industry 86 3.7. Environmental Regulation At The International Level 90 3.8. Regulatory Issues In Aviation 92 3.9. Meteorological Services For Aviation 94 3.10. Airport Fees, Rates, And Charges 95 vi Contents

4. AIRLINE OPERATIONS 105 4.0. Introduction 105 4.1. Airline Terminal Management (ATM) 106 4.2. Flight Information Counters 109 4.3. Ticket Check In 111 4.4. Boarding Pass 113 4.5. Customs And Immigration Formalities 115 4.6. Security Clearance 117 4.7. Baggage Handling 118 4.8. Unaccompanied Minors 122 4.9. Disabled Passengers 122 4.10. Handling Of Stretcher Passengers 124 4.11. Human Remains Handling 125 4.12. Handling Of Cip, Vip And Vvip 128 4.13. Co-Ordination Of Supporting Agencies/Departments 130

5. LOGISTICS AND AIR CARGO MANAGEMENT 133 5.0. Introduction 133 5.1. Meaning Of Logistics 133 5.2. Airport Logistics 134 5.3. Warehousing 136 5.4. Trend In Material Handling 140 5.5. Global Supply Chain 142 5.6. Quality Concept And Total Quality Management 143 5.7. Improving Logistic Performance 147 5.8. Air Cargo Concept Handling 148 5.9. Cargo Handling 154 5.10. Booking Of Perishable Cargo And Live Animals 156 5.11. Air Cargo Tariff, Ratios And Charges 161 5.12. Airways Bill, Function, Purpose And Validation 162 5.13. Industrial Relations 165

References 167 List of Abbreviations 171 1

INTRODUCTION TO AVIATION MANAGEMENT

1.0. INTRODUCTION

Airline and Airport companies play a large role in the efficient operation of the national air transportation system. Little however has been written about how airline and airport operations management and how decisions related to them are made. This book on Airline and Airport Operations reveal the cream knowledge of aviation management not only to aspirant students but also to all aviation professionals working in airline carriers and airports. Airlines need to be well managed in order to survive and increase their volume of profitability. Airline industry has become more competitive which imposes to have highly skilled and trained professionals in order to manage these challenging airlines and airports. Most of world’ airports and airlines operate in scarcity of skilled and trained employees in this field which jeopardizes the operations of individual airlines and airports. Therefore, strategic operations have to be learnt and taught as it is the purpose of the author of the present book to show scientifically how airline and airport business should be conducted in order to run all operations. The safe and efficient management of an airline and airport is a complex cognitive task, involving many individuals working in close coordination. Airlines are subjected to develop the sound operations and activities in advance to maximize profit and aircraft utilization, and then manage all airport facilities according to strategies identified and profitable operations detailed in this book.

1.1. HISTORY OF AVIATION

Introduction

Aviation is defined as the design, manufacture, use or operation of aircraft in which the term aircraft refers to any vehicle capable of flying. Aircraft can either be heavier-than-air or lighter-than-air. Lighter-than-air aircrafts include balloons and airships, and heavier-than-air aircrafts include airplanes, autogiros, gliders, helicopters, and ornithopters. For centuries man has dreamed to soar with the birds. Famous inventors such as Leonardo da Vinci, John Stringfellow, and Lawrence Hargrave have conjured up ideas of how to get some of the strangest machines to fly long before the Wright brothers’ famous first flight at Kitty Hawk. 2 Airline and Airport Operations

1. First Flights

On December 17, 1903, Orville and Wilbur Wright capped four years of research and design efforts with a 120-foot, 12-second flight at Kitty Hawk, North Carolina - the first powered flight in a heavier- than-air machine. Prior to that, people had flown only in balloons and gliders. The first person to fly as a passenger was Leon Delagrange, who rode with French pilot Henri Farman from a meadow outside of Paris in 1908. Charles Furnas became the first American airplane passenger when he flew with Orville Wright at Kitty Hawk later that year. The first scheduled air service began in Florida on January 1, 1914. Glenn Curtiss had designed a plane that could take off and land on water and thus could be built larger than any plane to date, because it did not need the heavy undercarriage required for landing on hard ground. Thomas Benoist, an auto parts maker, decided to build such a flying boat, or seaplane, for a service across Tampa Bay called the St. Petersburg - Tampa Air Boat Line. His first passenger was ex-St. Petersburg Mayor A.C. Pheil, who made the 18-mile trip in 23 minutes, a considerable improvement over the two-hour trip by boat. The single-plane service accommodated one passenger at a time, and the company charged a one-way fare of $5. After operating two flights a day for four months, the company folded with the end of the winter tourist season.

2. World War I

These and other early flights were headline events, but commercial aviation was very slow to catch on with the general public, most of whom were afraid to ride in the new flying machines. Improvements in aircraft design also were slow. However, with the advent of World War I, the military value of aircraft was quickly recognized and production increased significantly to meet the soaring demand for planes from governments on both sides of the Atlantic. Most significant was the development of more powerful motors, enabling aircraft to reach speeds of up to 130 miles per hour, more than twice the speed of pre-war aircraft. Increased power also made larger aircraft possible. At the same time, the war was bad for commercial aviation in several respects. It focused all design and production efforts on building military aircraft. In the public’s mind, flying became associated with bombing runs, surveillance and aerial dogfights. In addition, there was such a large surplus of planes at the end of the war that the demand for new production was almost non- existent for several years - and many aircraft builders went bankrupt. Some European countries, such as Great Britain and France, nurtured commercial aviation by starting air service over the English Channel. However, nothing similar occurred in the United States, where there were no such natural obstacles isolating major cities and where railroads could transport people almost as fast as an airplane, and in considerably more comfort. The salvation of the U.S. commercial aviation industry following World War I was a government program, but one that had nothing to do with the transportation of people.

3. Airmail

By 1917, the U.S. government felt enough progress had been made in the development of planes to warrant something totally new in transport of mail by air. That year, Congress appropriated $100,000 for an experimental airmail service to be conducted jointly by the Army and the Post Office between Washington and New York, with an intermediate stop in Philadelphia. The first flight left Belmont INTRODUCTION TO AVIATION MANAGEMENT 3

Park, Long Island for Philadelphia on May 14, 1918 and the next day continued on to Washington, where it was met by President Woodrow Wilson. With a large number of war-surplus aircrafts in hand, the Post Office set its sights on a far more ambitious goal - transcontinental air service. It opened the first segment, between Chicago and Cleveland, on May 15, 1919 and completed the air route on September 8, 1920, when the most difficult part of the route, the Rocky Mountains, was spanned. Airplanes still could not fly at night when the service first began, so the mail was handed off to trains at the end of each day. Nonetheless, by using airplanes the Post Office was able to shave 22 hours off coast-to-coast mail deliveries.

4. Beacons

In 1921, the Army deployed rotating beacons in a line between Columbus and Dayton, Ohio, a distance of about 80 miles. The beacons, visible to pilots at 10-second intervals, made it possible to fly the route at night. The Post Office took over the operation of the guidance system the following year, and by the end of 1923, constructed similar beacons between Chicago and Cheyenne, Wyoming, a line later extended coast-to-coast at a cost of $550,000. Mail then could be delivered across the continent in as little as 29 hours eastbound and 34 hours westbound - prevailing winds from west to east accounted for the difference which was at least two days less than it took by train.

5. The Contract Air Mail Act of 1925

By the mid-1920s, the Post Office mail fleet was flying 2.5 million miles and delivering 14 million letters annually. However, the government had no intention of continuing airmail service on its own. Traditionally, the Post Office had used private companies for the transportation of mail. So, once the feasibility of airmail was firmly established and airline facilities were in place, the government moved to transfer airmail service to the private sector, by way of competitive bids. The legislative authority for the move was the Contract Air Mail Act of 1925, commonly referred to as the Kelly Act after its chief sponsor, Rep. Clyde Kelly of Pennsylvania. This was the first major step toward the creation of a private U.S. airline industry. Winners of the initial five contracts were National Air Transport owned by the Curtiss Aeroplane Co, Varney Air Lines, Western Air Express, Colonial Air Transport and Robertson Aircraft Corporation. National and Varney would later become important parts of United Air Lines originally was a joint venture of the Boeing Airplane Company and Pratt & Whitney. Western would merge with Transcontinental Air Transport (TAT), another Curtiss subsidiary, to form Transcontinental and Western Air (TWA). Robertson would become part of the Universal Aviation Corporation, which in turn would merge with Colonial, Southern Air Transport and others, to form American Airways, predecessor of American Airlines. Juan Trippe, one of the original partners in Colonial, later pioneered international air travel with Pan Am - a carrier he founded in 1927 to transport mail between Key West, Florida, and Havana, Cuba. Pitcairn Aviation, yet another Curtiss subsidiary that got its start transporting mail, would become Eastern Air Transport, predecessor of Eastern Air Lines.

6. The Morrow Board

The same year Congress passed the Contract Air Mail Act, President Calvin Coolidge appointed a board to recommend a national aviation policy as much-sought-after goal of then Secretary of Commerce Herbert Hoover. Dwight Morrow, a senior partner in J.P. Morgan’s bank, and later the father-in-law 4 Airline and Airport Operations of Charles Lindbergh, was named chairman. The board heard testimony from 99 people, and on November 30, 1925, submitted its report to President Coolidge. The report was wide-ranging, but its key recommendation was that the government should set standards for civil aviation and that the standards should be set outside of the military.

7. The Air Commerce Act of 1926

Congress adopted the recommendations of the Morrow Board almost to the letter in the Air Commerce Act of 1926. The legislation authorized the Secretary of Commerce to designate air routes, to develop air navigation systems, to license pilots and aircraft, and to investigate accidents. The act brought the government into commercial aviation as regulator of the private airlines spawned by the Kelly Act of the previous year. Congress also adopted the board’s recommendation for airmail contracting, by amending the Kelly Act to change the method of compensation for airmail services. Instead of paying carriers a percentage of the postage paid, the government would pay them according to the weight of the mail. This simplified payments, and proved highly advantageous to the carriers, which collected $48 million from the government for the carriage of mail between 1926 and 1931.

8. Ford’s Tin Goose

Henry Ford, the automobile manufacturer, was also among the early successful bidders for airmail contracts, winning the right, in 1925, to carry mail from Chicago to Detroit and Cleveland aboard planes his company already was using to transport spare parts for his automobile assembly plants. More importantly, he jumped into aircraft manufacturing, and in 1927, produced the Ford Trimotor, commonly referred to as the Tin Goose. It was one of the first all-metal planes, made of a new material, duralumin, which was almost as light as aluminum but twice as strong. It also was the first plane designed primarily to carry passengers rather than mail. The Ford Trimotor had 12 passenger seats; a cabin high enough for a passenger to walk down the aisle without stooping; and room for a “stewardess,” or flight attendant, the first of whom were nurses, hired by United in 1930 to serve meals and assist airsick passengers. The Tin Goose’s three engines made it possible to fly higher and faster up to 130 miles per hour, and its sturdy appearance, combined with the Ford name, had a reassuring effect on the public’s perception of flying. However, it was another event, in 1927 that brought unprecedented public attention to aviation and helped secure the industry’s future as a major mode of transportation.

9. Charles Lindbergh

At 7:52 a.m. on May 20, 1927, a young pilot named Charles Lindbergh set out on an historic flight across the Atlantic Ocean, from New York to Paris. It was the first trans-Atlantic non-stop flight in an airplane, and its effect on both Lindbergh and aviation was enormous. Lindbergh became an instant American hero. Aviation became a more established industry, attracting millions of private investment dollars almost overnight, as well as the support of millions of Americans. The pilot who sparked all of this attention had dropped out of engineering school at the University of Wisconsin to learn how to fly. He became a barnstormer, doing aerial shows across the country, and eventually joined the Robertson Aircraft Corporation, to transport mail between St. Louis and Chicago. INTRODUCTION TO AVIATION MANAGEMENT 5

In planning his trans-Atlantic voyage, Lindbergh daringly decided to fly by himself, without a navigator, so he could carry more fuel. His plane, the Spirit of St. Louis, was slightly less than 28 feet in length, with a wingspan of 46 feet. It carried 450 gallons of gasoline, which comprised half its take-off weight. There was too little room in the cramped cockpit for navigating by the stars, so Lindbergh flew by dead reckoning. He divided maps from his local library into thirty-three 100-mile segments, noting the heading he would follow as he flew each segment. When he first sighted the coast of Ireland, he was almost exactly on the route he had plotted, and he landed several hours later, with 80 gallons of fuel to spare. Lindbergh’s greatest enemy on his journey was fatigue. The trip took an exhausting 33 hours, 29 minutes and 30 seconds, but he managed to keep awake by sticking his head out the window to inhale cold air, by holding his eyelids open, and by constantly reminding himself that if he fell asleep he would perish. In addition, he had a slight instability built into his airplane that helped keep him focused and awake. Lindbergh landed at Le Bourget Field, outside of Paris, at 10:24 p.m. Paris time on May 21. Word of his flight preceded him and a large crowd of Parisians rushed out to the airfield to see him and his little plane. There was no question about the magnitude of what he had accomplished. The Air Age had arrived.

10. The Watres Act and the Spoils Conference

In 1930, Postmaster General Walter Brown pushed for legislation that would have another major impact on the development of commercial aviation. Known as the Watres Act after one of its chief sponsors, Rep. Laurence H. Watres of Pennsylvania, it authorized the Post Office to enter into longer- term contracts for airmail, with rates based on space or volume, rather than weight. In addition, the act authorized the Post Office to consolidate airmail routes, where it was in the national interest to do so. Brown believed the changes would promote larger, stronger airlines, as well as more coast-to-coast and night time service. Immediately after Congress approved the act, Brown held a series of meetings in Washington to discuss the new contracts. The meetings were later dubbed the Spoils Conference because Brown gave them little publicity and directly invited only a handful of people from the larger airlines. He designated three transcontinental mail routes and made it clear that he wanted only one company operating each service rather than a number of small airlines handing the mail off to one another. His actions brought political trouble that resulted in major changes to the system two years later.

11. Scandal and the Air Mail Act of 1934

Following the Democratic landslide in the election of 1932, some of the smaller airlines began complaining to news reporters and politicians that they had been unfairly denied airmail contracts by Brown. One reporter discovered that a major contract had been awarded to an airline whose bid was three times higher than a rival bid from a smaller airline. Congressional hearings followed, chaired by Sen. Hugo Black of Alabama, and by 1934 the scandal had reached such proportions as to prompt President Franklin Roosevelt to cancel all mail contracts and turn mail deliveries over to the Army. The decision was a mistake. The Army pilots were unfamiliar with the mail routes, and the weather at the time they took over the deliveries, February 1934, was terrible. There were a number of accidents as the pilots flew practice runs and began carrying the mail, leading to newspaper headlines that 6 Airline and Airport Operations forced President Roosevelt to retreat from his plan only a month after he had turned the mail over to the Army. By means of the Air Mail Act of 1934, the government once again returned airmail transportation to the private sector, but it did so under a new set of rules that would have a significant impact on the industry. Bidding was structured to be more competitive, and former contract holders were not allowed to bid at all, so many companies were reorganized. The result was a more even distribution of the government’s mail business and lower mail rates that forced airlines and aircraft manufacturers to pay more attention to the development of the passenger side of the business. In another major change, the government forced the dismantling of the vertical holding companies common up to that time in the industry, sending aircraft manufacturers and airline operators most notably Boeing, Pratt & Whitney, and United Air Lines their separate ways. The entire industry was now reorganized and refocused.

12. Aircraft Innovations

For the airlines to attract passengers away from the railroads, they needed both larger and faster airplanes. They also needed safer airplanes. Accidents, such as the one in 1931 that killed Notre Dame Football Coach Knute Rockne along with six others, kept people from flying Aircraft and manufacturers responded to the challenge. There were so many an improvement to aircraft in the 1930s that many believe it was the most innovative period in aviation history. Air-cooled engines replaced water-cooled engines, reducing weight and making larger and faster planes possible. Cockpit instruments also improved, with better altimeters, airspeed indicators, rate-of-climb indicators, compasses, and the introduction of artificial horizon, which showed pilots the attitude of the aircraft relative to the ground - important for flying in reduced visibility.

13. Radio

Another development of enormous importance to aviation was radio. Aviation and radio developed almost in lock step. Marconi sent his first message across the Atlantic on the airwaves just two years before the Wright Brothers, first flight at Kitty Hawk. By World War I, some pilots were taking radios up in the air with them so they could communicate with people on the ground. The airlines followed suit after the war, using radio to transmit weather information from the ground to their pilots, so they could avoid storms. An even more significant development, however, was the realization that radio could be used as an aid to navigation when visibility was poor and visual navigation aids, such as beacons, were useless. Once technical problems were worked out, the Department of Commerce constructed 83 radio beacons across the country. They became fully operational in 1932, automatically transmitting directional beams, or tracks, that pilots could follow to their destination. Marker beacons came next, allowing pilots to locate airports in poor visibility. The first air traffic control tower was established in 1935 at what is now Newark International Airport in New Jersey.

14. The First Modern Airliners

Boeing built what generally is considered the first modern passenger airliner, the Boeing 247. It was unveiled in 1933, and United Airlines promptly bought 60 of them. Based on a low-wing, twin-engine INTRODUCTION TO AVIATION MANAGEMENT 7

bomber with retractable landing gear built for the military, the 247 accommodated 10 passengers and cruised at 155 miles per hour. Its cabin was insulated, to reduce engine noise levels inside the plane, and it featured such amenities as upholstered seats and a hot water heater to make flying more comfortable to passengers. Eventually, Boeing also gave the 247 variable-pitch propellers that reduced take-off distances, increased the rate of climb, and boosted cruising speeds. Not to be outdone by United, Transcontinental and Western Air (TWA) went searching for an alternative to the 247 and eventually found what it wanted from the Douglas Aircraft Company. Its DC-1 incorporated Boeing’s innovations and improved upon many of them. The DC-1 had a more powerful engine and accommodations for two more passengers than did the 247. More importantly, the airframe was designed so that the skin of the aircraft bore most of the stress on the plane during flight. There was no interior skeleton of metal spars, thus giving passengers more room than they had in the 247. The DC-1 also was easier to fly. It was equipped with the first automatic pilot and the first efficient wing flaps, for added lift during take-off. However, for all its advancements, only one DC-1 was ever built. Douglas decided almost immediately to alter its design, adding 18 inches to its length so it could accommodate two more passengers. The new, longer version was called the DC-2 and it was a big success, but the best was still to come.

15. The DC-3 aircraft

Called the plane that changed the world, the DC-3 was the first aircraft to enable airlines to make money carrying passengers. As a result, it quickly became the dominant aircraft in the United States, following its debut in 1936 with American Airlines which played a key role in its design. The DC-3 had 50 percent greater passenger capacity than the DC-2 (21 seats versus 14), yet cost only ten percent more to operate. It also was considered a safer plane, built of an aluminum alloy stronger than materials previously used in aircraft construction. It had more powerful engines (1,000 horsepower versus 710 horsepower for the DC-2), and it could travel coast to coast in only 16 hours - a fast trip for that time. Another important improvement was the use of a hydraulic pump to lower and raise the landing gear. This freed pilots from having to crank the gear up and down during take-offs and landings. For greater passenger comfort, the DC-3 had a noise-deadening plastic insulation, and seats set in rubber to minimize vibrations. It was a fantastically popular airplane, and it helped attract many new travellers to flying.

16. Pressurized Cabins

Although planes such as the Boeing 247 and the DC-3 represented significant advances in aircraft design, they had a major drawback. They could fly no higher than 10,000 feet, because people became dizzy and even fainted, due to the reduced levels of oxygen at higher altitudes. The airlines wanted to fly higher, to get above the air turbulence and storms common at lower altitudes. Motion sickness was a problem for many airline passengers, and an inhibiting factor to the industry’s growth. The breakthrough came at Boeing with the Stratoliner, a derivation of the B-17 bomber introduced in 1940 and first flown by TWA. It was the first pressurized aircraft, meaning that air was pumped into the aircraft as it gained altitude to maintain an atmosphere inside the cabin similar to the atmosphere 8 Airline and Airport Operations that occurs naturally at lower altitudes. With its regulated air compressor, the 33-seat Stratoliner could fly as high as 20,000 feet and reach speeds of 200 miles per hour.

17. The Civil Aeronautics Act of 1938

Government decisions continued to prove as important to aviation’s future as technological breakthroughs, and one of the most important aviation bills ever enacted by Congress was the Civil Aeronautics Act of 1938. Until that time, numerous government agencies and departments had a hand in aviation policy. Airlines sometimes were pushed and pulled in several directions, and there was no central agency working for the long-term development of the industry. All the airlines had been losing money, since the postal reforms in 1934 significantly reduced the amount they were paid for carrying the mail. The airlines wanted more rationalized government regulation, through an independent agency, and the Civil Aeronautics Act gave them what they needed. It created the Civil Aeronautics Authority (CAA) and gave the new agency power to regulate airline fares, airmail rates, and interline agreements, mergers and routes. Its mission was to preserve order in the industry, holding rates to reasonable levels while, at the same time nurturing the still financially-shaky airline industry, thereby encouraging the development of commercial air transportation. Congress created a separate agency - the Air Safety Board - to investigate accidents. In 1940, however, President Roosevelt convinced Congress to transfer the accident investigation function to the CAA, which was then renamed the Civil Aeronautics Board (CAB). These moves, coupled with the tremendous progress made on the technological side, put the industry on the road to success.

18. World War II

Aviation had an enormous impact on the course of World War II and the war had just as significant an impact on aviation. There were fewer than 300 air transport aircrafts in the United States when Hitler marched into Poland in 1939. By the end of the war, U.S. aircraft manufacturers were producing 50,000 planes a year. Most of the planes, of course, were fighters and bombers, but the importance of air transports to the war effort quickly became apparent as well. Throughout the war, the airlines provided much needed airlift to keep troops and supplies moving, to the front and throughout the production chain back home. For the first time in their history, the airlines had far more business - for passengers as well as freight - than they could handle. Many of them also had opportunities to pioneer new routes, gaining an exposure that would give them a decidedly broader outlook at war’s end. While there were numerous advances in U.S. aircraft design during the war, that enabled planes to go faster, higher, and farther than ever before, mass production was the chief goal of the United States. The major innovations of the wartime period - radar and jet engines - occurred in Europe.

19. The Jet Engine

Isaac Newton was the first to theorize, in the 18th century, that a rearward-channeled explosion could propel a machine forward at a great rate of speed. However, no one found a practical application for the theory until Frank Whittle, a British pilot, designed the first jet engine in 1930. Even then, INTRODUCTION TO AVIATION MANAGEMENT 9

widespread skepticism about the commercial viability of a jet prevented Whittle’s design from being tested for several years. The Germans were the first to build and test a jet aircraft. Based on a design by Hans von Ohain, a student whose work was independent of Whittle’s, it flew in 1939, although not as well as the Germans had hoped. It would take another five years for German scientists to perfect the design, by which time it was, fortunately, too late to affect the outcome of the war. Whittle also improved his jet engine during the war, and in 1942 he shipped an engine prototype to General Electric in the United States. America’s first jet plane - the Bell P-59 - was built the following year.

20. Radar

Radio Detection and Range (RADAR) is another technological development with a much greater impact on the war’s outcome and later on commercial aviation was radar. British scientists had been working on a device that could give them early warning of approaching enemy aircraft even before the war began, and by 1940 Britain had a line of radar transceivers along its east coast that could detect German aircraft the moment they took off from the Continent. British scientists also perfected the cathode ray oscilloscope, which produced map-type outlines of surrounding countryside and showed aircraft as a pulsing light. Americans, meanwhile, found a way to distinguish between enemy aircraft and allied aircraft by installing transponders aboard the latter that signalled their identity to radar operators.

21. Dawn of the Jet Age

Aviation was poised to advance rapidly following the war, in large part because of the development of jets, but there still were significant problems to overcome. In 1952, a 36-seat British-made jet, the Comet, flew from London to Johannesburg, South Africa, at speeds as high as 500 miles per hour. Two years later, the Comet’s career ended abruptly following two back-to-back accidents in which the fuselage burst apart during flight - the result of metal fatigue. The Cold War between the Soviet Union and the United States, following World War II, helped secure the funding needed to solve such problems and advance the jet’s development. Most of the breakthroughs related to military aircraft that later were applied to the commercial sector. For example, Boeing employed a swept-back wing design for its B-47 and B-52 bombers to reduce drag and increase speed. Later, the design was incorporated into commercial jets, making them faster and thus more attractive to passengers. The best example of military civilian technology transfer was the jet tanker Boeing designed for the Air Force to refuel bombers in flight. The tanker, the KC-135, was a huge success as a military plane, but even more successful when revamped and introduced, in 1958, as the first U.S. passenger jet, the Boeing 707. With a length of 125 feet and four engines with 17,000 pounds of thrust each, the 707 could carry up to 181 passengers and travel at speeds of 550 miles per hour. Its engines proved more reliable than piston-driven engines - producing less vibration, putting less stress on the plane’s airframe and reducing maintenance expenses. They also burned kerosene, which cost half as much as the high-octane gasoline used in more traditional planes. With the 707, first ordered and operated by Pan Am, all questions about the commercial feasibility of jets were answered. The Jet Age had arrived, and other airlines soon were lining up to buy the new aircraft. 10 Airline and Airport Operations

22. The Federal Aviation Act of 1958

Following World War II, air travel soared, but with the industry’s growth came new problems. In 1956 two aircraft collided over the Grand Canyon, killing 128 people. The skies were getting too crowded for existing systems of aircraft separation, and Congress responded by passing the Federal Aviation Act of 1958. The legislation created a new safety regulatory agency, the Federal Aviation Agency, later called the Federal Aviation Administration (FAA) when Congress created the Department of Transportation (DOT) in 1967. The agency was charged with establishing and running a broad air traffic control system, to maintain safe separation of all commercial aircraft through all phases of flight. In addition, it assumed jurisdiction over all other aviation safety matters, such as the certification of aircraft designs, and airline training and maintenance programs. The Civil Aeronautics Board retained jurisdiction over economic matters, such as airline routes and rates.

23. Wide-bodies and Supersonics

In 1969 marked the debut of another revolutionary aircraft, the Boeing 747, which, again, Pan Am was the first to purchase and fly in commercial service. It was the first wide-body jet, with two aisles, a distinctive upper deck over the front section of the fuselage, and four engines. With seating for as many as 450 passengers, it was twice as big as any other Boeing jet and 80 percent bigger than the largest jet up until that time, the DC-8. Recognizing the economies of scale to be gained from larger jets, other aircraft manufacturers quickly followed suit. Douglas built its first wide-body, the DC-10, in 1970, and only a month later, Lockheed flew its contender in the wide-body market, the L-1011. Both of these jets had three engines and were smaller than the 747, seating about 250 passengers. During the same period of time, efforts were underway in both the United States and Europe to build a supersonic commercial aircraft. The Soviet Union was the first to succeed, testing the Tupolev 144 in December of 1968. A consortium of West European aircraft manufacturers first flew the Concorde two months later and eventually produced a number of those fast, but small, jets for commercial service. U.S. efforts to produce a supersonic passenger jet, on the other hand, stalled in 1971 due to public concern about its expense and the sonic boom produced by such aircraft.

24. Important Dates in history of Aviation

The following is the outline of crucial dates in history of aviation:

1783 - Montgolfier Brothers construct the first lighter-than-air vehicle (a balloon) 1900 - Count Ferdinand Zeppelin’s airship flies 1902 - Charles A. Lindbergh Jr. is born on February 4 1903 - Orville and Wilbur Wright fly first successful self-propelled airplane 1906 - Anne Morrow born June 20 1909 - Louis Bleriot crosses English Channel in a monoplane 1909 - Raymonde de Laroche becomes the first licensed female pilot INTRODUCTION TO AVIATION MANAGEMENT 11

1913 - Salim Ilkucan crosses Sea of Marmara by achieving the longest over-sea flight in a double plane 1918 - United States Post Office establishes airmail service 1920 - Lindbergh enrols in the University of Wisconsin as an engineering student 1922 - Bessie Coleman becomes the first licensed African-American aviator in the world 1922 - Lindbergh leaves college in February to become flying student at Nebraska Standard Aircraft Corporation; makes first flight, April. 9 1923 - Lindbergh buys first plane, a war-surplus Curtiss Jenny; goes barnstorming 1924 - Lindbergh enlists as a U.S. Army Flying cadet 1924 - First flight around the world 1926 - Lindbergh makes his first Chicago-to-St. Louis airmail flight 1926 - Air Commerce Act marks first federal attempt to set safety regulations for civil aeronautics and requires the registration and licensing of pilots and planes 1927 - Charles Lindbergh makes first solo, nonstop transatlantic flight 1928 - Anne Spencer Morrow graduates from Smith College 1929 - Charles Lindbergh and Anne Spencer Morrow marry 1930 - Anne Morrow Lindbergh becomes the first licensed female glider pilot in the United States 1931 - Charles and Anne Morrow Lindbergh survey potential commercial air routes from the U.S. to the Orient via Canada, Alaska and Russia 1932 - Amelia Earhart becomes the first female pilot to cross the Atlantic Ocean 1933 - Boeing 247 is built 1933 - Charles and Anne Morrow Lindbergh survey North and South Atlantic air routes 1934 - Anne Morrow Lindbergh is awarded Hubbard Gold Medal for accomplishments in 40,000 miles of exploratory flying 1937 - Zeppelin Hindenburg burns 1942 - Tuskegee Airmen all-Black 99th Fighter Squadron forms 1946 - Radar bounces off the moon for the first time 1947 - The sound barrier is broken by Chuck Yeager 1950s - Technologies such as long-range missiles, computer systems, electronic controls, combustion chemistry, and new composite structures made possible by the aerospace industry 1953 - Jacqueline Cochran becomes the first woman to break the sound barrier 1954 - Lindbergh is appointed to rank of brigadier general; awarded Pulitzer Prize for The Spirit of St. Louis 1955 - Anne Morrow Lindbergh’s book, Gift from the Sea, is published 1958 - The first American satellite to be placed in orbit around the Earth, “Explorer 1”, is launched 12 Airline and Airport Operations

1959 - NASA selects its first seven astronauts 1961 - Alan Shepard becomes the first American in space 1966–72 - Charles Lindbergh serves on World Wildlife Fund Board of Trustees 1969 - Neil Armstrong and Buzz Aldrin become the first persons to walk on the moon 1971 - NASA’s Mariner 9 orbits Mars, becoming the first spacecraft to orbit another planet 1971 - The first time a golf ball is hit on the moon 1971 - Boeing 747 makes its first commercial flight from New York to London 1972 - NASA announces the shuttle program 1974 - Charles Lindbergh dies in Maui, Hawaii, on August 26, buried at Kipahulu 1976 - Concorde flies 1977 - The Charles A. Lindbergh Fund is created 1978 - NASA selects its first group of women astronauts 1981 - First Space Shuttle flight 1983 - Sally Ride, the first American female astronaut, becomes the first U.S. woman to go up in space on the Space Shuttle Challenger 1986 - Challenger Space Shuttle explodes shortly after takeoff, all seven crew members die 1994 - The Charles A. Lindbergh Fund becomes The Charles A. and Anne Morrow Lindbergh Foundation 1996 - Anne Morrow Lindbergh is inducted into The National Women’s Hall of Fame 2001 - Anne Morrow Lindbergh dies in Vermont, on February 7 2002 - The Charles A. and. Anne Morrow Lindbergh Foundation celebrates its 25th Anniversary; 75th Anniversary Celebrations of the “Spirit of St. Louis” flight are planned around the country 2003 - Aviation celebrates its first century 2004 - Oct. 4, Burt Ruan and the SpaceShipOne team capture the $10 million X Prize for the first private manned spacecraft to exceed an altitude of 328,000 feet twice within a 14 day period. The prize was modeled after the Orteig Prize. 2010 - July 7-8, Bertrand Piccard and his Solar Impulse team make aviation history by flying more than 24 consecutive hours non-stop in a solar airplane.

1.2. MEANING AND DEFINITIONS

Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to globalization taking place in many other industries. Travel for both business and leisure purpose grow strongly worldwide. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists for different purposes. Therefore, in aviation industry there are many concepts to understand, among them are: INTRODUCTION TO AVIATION MANAGEMENT 13

i. Aviation: It refers to design, production, development and use of aircraft or airplane. Thus, the following are the famous manufacturing companies of aircrafts: AIRBUS: It belongs to France, Europe BOEING: It belongs to USA UNITED AIRCRAFT COOPERATION: Russia CANADIAN REGIONAL JET(CRJ), Canada EMBRAER, Brazil BOMBARDIER, Canada ATR (Avions de Transport Regional): ATR is a French-Italian aircraft manufacturer headquartered on the grounds of Toulouse Blagnac International Airport in Blagnac, France.

ii. Airline: Airline is a transport company that provides air transport services for travellers. Basically, Airlines is an organization or company that provides air services. Airlines are thus divided into many categories but the following the major ones: a. Intercontinental Airlines: It operates between two or more continents in the world. b. Intra continental Airlines: Airlines operates within one continent c. Domestic Airlines: It provides air services within the country. d. Regional Airlines: It operates within an area in the particular region. e. International Airlines: It operates between two or more countries. Example: RwandAir, Kenya Airways, Air India, etc. iii. Airport: Airport concept refers to a location where aircraft take off and land. Airport may also be defined as a tract of land or water with facilities for the landing, takeoff, shelter, supply, and repair of aircraft, especially one used for receiving or discharging passengers and cargo at regularly scheduled times. The airport consists of: Runways: it is a road where an aircraft can take off or land Taxiways: An area between runway and ramp where an aircraft move like a taxi Ramp or Apron: An area where an Aircraft are parked, loaded, unloaded, refueled or boarded. Terminal Building: An airport terminal is a building at an airport where passengers transfer between ground transportation and the facilities that allow them to board and disembark from aircraft. Within the terminal, passengers purchase tickets, transfer their luggage, and go through security.

Types of airport

Air station or Military airport or air base: Air station or military airport is an aerodrome used by a military force for the operation of military aircraft. It is also known as a military airbase and sometimes referred to as a military airfield, civil enclave, air force station, air force base or short airbase. Domestic Airport: Airport that operates commercial flight operations within a country. 14 Airline and Airport Operations

International Airport: It is an airport used to operate commercial flight operations within two or more countries. Helipad operational Airport: It is also an airport used to operate the helicopters.

1.3. DEVELOPMENT OF AIR TRANSPORTATION IN THE WORLD

As we earlier touched on the history of aviation in the world, the development of air transport starts with a short review of myths and legends, the dream of flying, which is as old as mankind. The development of air transport was induced by the beginning of commercial air transport in Europe and United States between the two World Wars. In the 1950s, companies started using successfully the new jet engine types of civil transport aircraft, which are still flying today. The aircraft design parameters of speed, range, size and fuel efficiency and their development of the last century are shortly addressed to extract the standards and the maturity of today’s air transport system. a. Development of Air Transport in USA and Europe

The Open Aviation Area (OAA) concept extends full freedoms of the air to both parties, removes restrictions on investment by foreign entities and permits wet leasing of aircraft under nondiscriminatory, transparent conditions. Importantly, it embodies a general commitment to regulatory convergence and to harmonisation of air transport standards (at a high common level) in safety, security and the environment. An Open Aviation Area (OAA) is intended therefore to provide a holistic framework that goes beyond the familiar, but basic, Open Skies model of the United States. An OAA contributes to the “normalisation” of the air transport industry by exposing it to competitive forces usual in other sectors. It will offer consumer benefits while promoting stable industry growth through a cooperative approach to the implementation of stringent quality controls by regulators and the industry Under an Open Aviation Area (OAA). Transatlantic competition will increase, resulting in lower fares, stimulating demand, causing traffic to grow with all the associated economic benefits gained in both the EU and US. i. Market Context

In the case of the EU and the US these benefits will be felt in the two largest air transport markets in the world. The US air transport industry carried over 712 million passengers in 2004. Of these, 67 million (9%) travelled on international services. The EU air transport industry carried 650 million air passengers, 34% of whom were travelling on extra-EU flights. Together, these markets account for well over half of global scheduled passenger traffic; when charter traffic and passengers carried by the new generation “low cost carriers” are included, IATA to be an underestimate of the size of the market (booz allen, 2007). ii. Passenger traffic

The traffic between the US and the EU is, unsurprisingly, a significant volume in itself, being 47.4 million Passengers in 2004. However, the last five years have been a turbulent time for the civil aviation industry. Indeed, the market was smaller in 2005 than it was in 2000. Transatlantic traffic is only now recovering from the effects of the September 11th attacks in 2001 the year 2000 saw a peak of 48.7 million and the most recent figures show traffic at 47.4 million almost returning to its former strength. INTRODUCTION TO AVIATION MANAGEMENT 15

An Open Aviation Area offers the opportunity to strengthen the industry at a time of recovery and, by extending beyond simple market access benefits of other arrangements provides for stable growth.

iii. Air Cargo

An EU-US Open Aviation Area (OAA) would also incorporate some of the largest and more advanced air cargo activities in the world accounting for about 25% of the world market in 2003. The operators providing these services also act as leaders in other continental markets. A striking indication of its importance is that in 2004 the combined US and EU freighter fleet accounted for 71.7% of the world total. As Boeing’s Commercial Market Outlook (CMO) illustrates, the aviation sector will grow in Europe over the next 20 years, with European airlines forecast to acquire 7,460 new airplanes valued at US$1.02 trillion. Growth will be slower in Europe than in other regions, but Europe will nonetheless account for 20 percent of new aircraft deliveries over this period. In Europe, air transport is part of the economic and social fabric of Europe and is strictly intertwined with economic growth.

b. Development of air transport in Asia

Recent studies by Oxford Economics have quantified the significant economic impact that aviation generates across some of the major markets in the Asia-Pacific region. For example: In Thailand, in 2009, aviation directly created 79,000 jobs (0.2% of employment) and made a value-added contribution to GDP of THB 64 billion (0.7% of GDP). In Singapore, aviation directly created 58,000 jobs (2% of employment) and made a value-added contribution to GDP of S$8.7 billion (3.3% of GDP). Finally, in India, aviation directly created 276,000 jobs (0.1% of employment) and made a value- added contribution to GDP of INR 147 billion (0.2% of GDP). In addition, regional economies derive substantial benefits from the spending of tourists travelling by air. Including this catalytic impact and the indirect and induced impacts of aviation activity increases the impact of aviation on GDP in Thailand to THB 818 billion (8.9% of GDP), in Singapore to S$23.5 billion (8.9% of GDP) and in India to INR 912 billion (1.5% of GDP). Forecasts indicate that this impact is set to grow rapidly over the next 20 years. Passenger numbers are expected to almost triple in Asia-Pacific from 779.6 million in 2010 to over 2.2 billion in 2030, with RPK growing at an average annual rate of 6.7%. Meanwhile, cargo volumes are projected to rise at a similar rate of 6.3% per annum. Such an expansion in activity should generate significant economic returns. Oxford Economics forecast that aviation’s direct contribution to GDP will increase by 6.1% per annum in real terms over the next 20 years helping to create an additional 1.3 million jobs across the region by 2030. Moreover, when also accounting for catalytic effects in terms of increased tourism receipts, real GDP growth is projected at 8.3% per annum with implied job creation of 5.9 million. Asia-Pacific’s huge and under-developed internal market clearly offers the potential for dynamic future growth as suggested by the forecasts. However, in order to fully realise this potential a number of challenges will need to be overcome. Good progress has been made in liberalising the regional market with a target date of 2015 set by ASEAN for reforms to be implemented. 16 Airline and Airport Operations

Upholding this target would be an important first step, setting out a positive signal to industry operators. In addition, as is the case elsewhere, the fast growth in demand for air transport services will necessitate a material level of infrastructure investment in order to prevent serious capacity constraints by region and group analysis Asia-pacific. c. Development of air transport in Africa

Opening up Aviation Services in Africa has many opportunities. According to the World Bank’s Africa Infrastructure Country Diagnostics (AICD) study (2012), Africa’s population is growing rapidly, the current high population growth rate began in the second half of the 20th century, when the number of people on the continent almost quadrupled from 230 million to 811 million. By 2010 this number reached one billion and if current demographic trends persist, Africa’s population will be 1.4 billion in 2025 and 1.9 billion by 2050. The continent’s 20 biggest airports account for nearly 60% of total traffic in Africa over September 2012 to August 2013. With 22.4 million departing seats over the period, Johannesburg airport is the largest in Africa and approximately 60% larger than the next largest airport, Cairo. Cape Town and Durban in South Africa also figure in the top 10, which includes Lagos, Nairobi, Casablanca, Addis Ababa, Abuja and Algiers. The mix of domestic, intra-regional, inter-regional and intercontinental traffic varies greatly. Some interesting variations between airports are observed in the balance of local and reciprocal carriers operating the different types of route. For example, 86% of international capacity at Addis Ababa is provided by Ethiopian carriers compared to 3% for Ghanaian carriers at Accra, while at Johannesburg South African carriers offer a larger proportion of the regional capacity (70%) than reciprocal carriers do; just over half (53%) of the intra-African capacity; and only a small proportion (15%) of intercontinental capacity. Therefore, the performance of the African aviation industry is still lagging behind those of the rest of the world. Nonetheless, as per the report of African Development bank group in 2012, the demand for air transport has increased steadily over the past years with passenger numbers and freight traffic growing by 45% and 80%, respectively in African aviation Industry. Over the period 2010-2015, Africa was the third fastest growing region in the world in terms of international traffic with an average growth rate of 6.1% compared to the global average of 5.8%, and 7.9% and 6.9% for the Middle East and Asia Pacific, respectively, while Europe, Latin America and North America are projected to record lower international passenger growth of 5.0%, 5.8% and 4.9%, respectively. This trend is expected to continue in the coming years due to a number of factors, notably robust economic growth, demographic boom, increasing urbanization, and emergence of the middle class of many regions of Africa including 9 East African countries as classified by IATA. Air transportation plays a vital role in the country’s growth process by accelerating convergence of goods and persons. The contribution of air transport far exceeds that of road transportation. Growth in air transportation has direct maps into economic growth due to spillover effects through creation of direct and indirect jobs in the industry and other auxiliary sectors such as tourism and other service sectors. Expansion in air transportation creates market opportunities for local entrepreneurs by creating regional and global economic centres. In 2010, the aviation industry in Africa supported about 7 million jobs (including 257,000 direct jobs) through the impact on travel and tourism which translated into USD67.8 billion of the continent’s GDP. Forecasts indicate that the aviation industry’s impact INTRODUCTION TO AVIATION MANAGEMENT 17 on African economies is set to grow. Over the next 20 years, implied job creation by the industry is projected at 879,000. Africa can maintain the growth of its aviation industry if more and more people can afford to pay for the cost of air travel. Currently, only 10% of Africans travel by air but given the current rate of economic growth and emergence of the middle class, there will be high demand for services linked to air transportation. In recent years, growing alliances with counterparts in other regions of the world have played a crucial role in the development of the African aviation industry. These alliances have permitted African companies to gain access to new long haul routes resulting in higher economies of scale and skills exchange. Airline and airport operations in East Africa as well in African continent is at good track despite of the challenges as they are discussed in next lines.

Challenges of African aviation industry

The rapid expansion in Africa’s aviation industry is hampered by a number of factors. Poor record of safety and security, lack of adequate resources and infrastructure, distance and limited connectivity, lack of regulation and government actions are among the main constraints the industry is facing. These constraints add to competition and high operating costs resulting from surging oil prices. Addressing these challenges could significantly unlock the industry’s potential for future growth.

i. Safety and security challenges: Safety is the most pressing challenge facing the aviation industry in Africa. In 2011, the average number of air traffic accidents was nine times higher than the global average. The frequency of accidents stems largely from inconsistency in the implementation and enforcement of internationally accepted safety standards and practices. Increasing the level of safety should be a key priority for the development of the African aviation industry. The African authorities have endorsed an African Union backed plan aimed at addressing deficiencies related to aviation safety and security and strengthening the regulatory framework. Accordingly, the International Air Transport Association jointly with the International Civil Aviation Organization and other organizations have committed to supporting the Africa Strategic Improvement Action Plan of the African Union. The plan encourages African governments to foster regulatory oversight through the adoption of globally accepted safety and security standards. ii. Inadequate infrastructure: The air transport industry faces various challenges including poor airport infrastructures, lack of physical and human resources, limited connectivity, and lack of transit facilities. Although substantial progress has been made during the past decade, Africa still lags behind other regions in terms of “soft” and “hard” infrastructure. It is therefore critical that African countries invest in the soft as well as hard infrastructure to support the industry. iii. Lack of regulation and government actions: Despite the growing awareness of the role that the aviation industry could play in the development of the continent, the industry is still not the top priority of African governments. More, despite increased liberalization of the African aviation industry and the growing presence of foreign companies, some African governments are still reluctant to open their skies fearing foreign competition could undercut national airlines, some of which are short of commercial viability besides being just symbols 18 Airline and Airport Operations

of sovereignty. These challenges require governments to enhance regulation of aerospace management, consumer protection and safety of airlines. iv. Lack of aviation experts and skills: High airport taxes and fees, the weak connectivity and restrictions on transit visas and facilities add to the menu of impediments affecting Africa’s aviation industry. There are several challenges in front of aviation industry because of the growth in the aviation sector and capacity expansion by carriers. These include shortage of workers and professionals, safety concerns, declining income and the lack of accompanying capacity and infrastructure. Moreover, stiff competition and rising fuel costs are also negatively impacting the industry. v. Shortage of trained Employees: There is a shortage of trained and skilled manpower in the aviation sector as a result of which there is cut-throat competition for employees which, in turn, is driving wages to unsustainable levels. Moreover, the industry is unable to retain talented employees. vi. Regional connectivity: To provide regional connectivity is one of the biggest challenges facing the aviation sector in East Africa. The lack of airports is hampering the growth of regional connectivity. vii. Rising fuel prices: As fuel prices have risen, the inverse relationship between fuel prices and airline stock prices has been established. Moreover, it also led to increase in the air fares. viii. Declining yields: As more players are attracted towards Aviation industry because of increasing growth prospects it will lead to more competition. All this has resulted in lower returns for all operators. ix. Gaps in infrastructure: There is a great shortage of Airports and air traffic control facilities in Africa. x. High input costs: The input costs are also very high because of some of the reasons like Withholding tax on interest repayments on foreign currency loans for aircraft acquisition, increasing manpower costs due to shortage of technical personnel. However, there are my opportunities in the African aviation market since air travel is essential to the prosperity of Africa as it opens up opportunities that did not exist before. Fostering the African aviation industry may be one of the driving forces of regional integration on the continent. Better connected African countries and regions through a viable air transport industry could be the catalyst that can boost intra-African business, trade, tourism as well as cultural exchange. Developing the aviation industry may also represent an opportunity to mitigate chronic transport problems faced by the African countries.

1.4. CHARACTERISTICS OF AIR TRANSPORT

i. Unbroken Journey: Air transport provides unbroken journey over land and sea. It is the fastest and quickest means of transport. ii. Rapidity: Air transport had the highest speed among all the modes of transport. iii. Expensive: Air transport is the most expensive means of transport. There is huge investment in purchasing planes and constructing of aerodromes. iv. Special Preparations: Air transport requires special preparations like wheelers links, meteorological stations, flood lights, searchlights etc. INTRODUCTION TO AVIATION MANAGEMENT 19 a. Advantages of Air Transport

i. High Speed: The supreme advantage of air transport is its high speed. It is the fastest mode of transport and thus it is the most suitable mean where time is an important factor. ii. Comfortable and Quick Services: It provides a regular, comfortable, efficient and quick service. iii. No Investment in Construction of Track, it does not require huge capital investment in the construction and maintenance of surface track. iv. No Physical Barriers: It follows the shortest and direct route as seas, mountains or forests do not come in the way of air transport. v. Easy Access: Air transport can be used to carry goods and people to the areas which are not accessible by other means of transport. vi. Emergency Services: It can operate even when all other means of transport cannot be operated due to the floods or other natural calamities. Thus, at that time, it is the only mode of transport which can be employed to do the relief work and provide the essential commodities of life. vii. Quick Clearance: In air transport, custom formalities can be very quickly complied with and thus it avoids delay in obtaining clearance. viii. Most Suitable for Carrying Light Goods of High Value: It is most suitable for carrying goods of perishable nature which require quick delivery and light goods of high value such as diamonds, bullion etc. over long distances. ix. National Defence: Air transport plays a very important role in the defence of a country. Modern wars have been fought mainly by airplanes. It has upper hand in destroying the enemy in a very short period of time. It also supports over wings of defence of a country. x. Space Exploration: Air transport has helped the world in the exploration of space. b. Disadvantages of Air Transport

In spite of many advantages, air transport has the following limitations:

i. Very Costly: It is the costliest means of transport. The fares of air transport are so high that it is beyond the reach of the common man. ii. Small Carrying Capacity: Its carrying capacity is very small and hence it is not suitable to carry cheap and bulky goods. iii. Uncertain and Unreliable: Air transport is uncertain and unreliable as it is controlled to a great extent by weather conditions. Unfavourable weather such as fog, snow or heavy rain etc. may cause cancellation of scheduled flights and suspension of air service. iv. Breakdowns and Accidents: The chances of breakdowns and accidents are high as compared to other modes of transport. Hence, it involves comparatively greater risk. v. Large Investment: It requires a large amount of capital investment in the construction and maintenance of airplanes. Further, very trained and skilled persons are required for operating air service. vi. Specialised Skill: Air transport requires a specialised skill and high degree of training for its operation. 20 Airline and Airport Operations

vii. Unsuitable for Cheap and Bulky Goods: Air transport is unsuitable for carrying cheap, bulky and heavy goods because of its limited capacity and high cost. viii. Legal Restrictions: There are many legal restrictions imposed by various countries in the interest of their own national unity and peace.

1.5. MAJOR PLAYERS IN AIRLINE INDUSTRY

Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. According to International Air Transport Association (IATA), in the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the Boeing 747 made it convenient and affordable for people to travel further to new and exotic destinations. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists from the prosperous countries in Western Europe and North America. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. Business travel has also grown as companies become increasingly international in terms of their investments, their supply and production chains and their customers; the rapid growth of world trade in goods and services and international direct investment have also contributed to growth in business travel. Worldwide, IATA, International Air Transport Association, forecasts international air travel to grow by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. These rates are similar to those of the past ten years. In Europe and North America, where the air travel market is already highly developed, slower growth of 4%-6% is expected. The most dynamic growth is centered on the Asia/Pacific region, where fast-growing trade and investment are coupled with rising domestic prosperity. Air travel for the region has been rising by up to 9% a year and is forecast to continue to grow rapidly, although the Asian financial crisis in 1997 and 1998 will put the brakes on growth for a year or two. In terms of total passenger trips, however, the main air travel markets of the future will continue to be in and between Europe, North America and Asia. a. Major players of airline industry in Africa i. Ethiopian airlines

Ethiopian Airlines is the fastest growing Airline in Africa. In its seven decades of operations, Ethiopian has become one of the continent’s leading carriers, unrivalled in efficiency and operational success. Ethiopian commands the lion’s share of the pan-African passenger and cargo network operating the youngest and most modern fleet to 92 international destinations across five continents. Ethiopian fleet includes ultra-modern and environmentally friendly aircraft such as the Boeing 787, Boeing 777- 300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years. In fact, Ethiopian is the first airline in Africa to own and operate these aircraft. Enjoyed reading this sample?

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