Aviation Management About the Tutorial Aviation Management is an activity of planning, designing, operating, and maintaining aircrafts and airport. This is an introductory tutorial that provides an overview of how the airports and airlines are managed worldwide. Audience This tutorial has been prepared for beginners to help them understand the basics of Aviation Management. It will be quite useful for those who are keen on taking up management career in aviation. For all other enthusiastic readers, this tutorial is a good learning material. Prerequisites We assume the reader has interest in business administration and aviation operations. Critical thinking, foresightedness, strategic thinking, and communication skill are a plus. Disclaimer & Copyright Copyright 2016 by Tutorials Point (I) Pvt. Ltd. All the content and graphics published in this e-book are the property of Tutorials Point (I) Pvt. Ltd. The user of this e-book is prohibited to reuse, retain, copy, distribute or republish any contents or a part of contents of this e-book in any manner without written consent of the publisher. We strive to update the contents of our website and tutorials as timely and as precisely as possible, however, the contents may contain inaccuracies or errors. Tutorials Point (I) Pvt. Ltd. provides no guarantee regarding the accuracy, timeliness or completeness of our website or its contents including this tutorial. If you discover any errors on our website or in this tutorial, please notify us at [email protected]. i Aviation Management Table of Contents About the Tutorial .................................................................................................................................. i Audience ................................................................................................................................................ i Prerequisites .......................................................................................................................................... i Disclaimer & Copyright ........................................................................................................................... i Table of Contents .................................................................................................................................. ii 1. AVIATION MANAGEMENT − INTRODUCTION ..................................................................... 1 2. IT IN AVIATION ................................................................................................................... 3 3. TERMS USED IN AVIATION ................................................................................................. 4 4. AIRLINE MANAGEMENT ..................................................................................................... 6 What is an Airline? ................................................................................................................................ 6 Major Airlines in India ........................................................................................................................... 6 Organizational Structure of an Airline ................................................................................................... 7 What is AAI in Indian Aviation? ............................................................................................................. 8 Handling the Passengers ........................................................................................................................ 9 Luggage Handling .................................................................................................................................. 9 Handling the Aircraft on Ground ......................................................................................................... 11 5. AIRLINE − FINANCIAL MANAGEMENT .............................................................................. 13 Airline Costs ........................................................................................................................................ 13 Airline Cash Management ................................................................................................................... 13 Airline Cash Forecasting Methods ....................................................................................................... 14 Airline Finance − Overview .................................................................................................................. 14 Fuel and Currency Hedging .................................................................................................................. 15 Airline Revenues .................................................................................................................................. 16 ii Aviation Management 6. AIRLINE − ROUTE PLANNING ............................................................................................ 17 7. AIRLINE − MARKETING ..................................................................................................... 18 Airline Marketing Environment ........................................................................................................... 18 Knowing the Airline Customers ........................................................................................................... 19 Airline Marketing on Social Media ....................................................................................................... 20 Airline Alliances ................................................................................................................................... 21 Airline Loyalty Marketing .................................................................................................................... 22 8. AIRPORT MANAGEMENT .................................................................................................. 23 Types of Airports ................................................................................................................................. 23 Airport Operations .............................................................................................................................. 23 Organizational Structure of an Airport ................................................................................................ 24 9. AIRPORT − GENERAL LAYOUT ........................................................................................... 25 10. AIRPORT − PLANNING AND DEVELOPMENT ..................................................................... 27 Airport − Terminal Planning ................................................................................................................. 27 Airport − Terminal Configurations ....................................................................................................... 28 11. AIRPORT − FINANCIAL MANAGEMENT ............................................................................. 30 Airport Funding ................................................................................................................................... 30 Airport Income Sources ....................................................................................................................... 30 Pricing of Airport Services and Facilities .............................................................................................. 31 Sale of Airport ..................................................................................................................................... 32 Reasons of Airport Privatization .......................................................................................................... 32 Benefits of Airport Privatization .......................................................................................................... 32 iii Aviation Management 12. AVIATION − SAFETY MANAGEMENT ................................................................................. 33 Risks in Aviation .................................................................................................................................. 33 Vulnerability in Aviation ...................................................................................................................... 34 Threats in Aviation .............................................................................................................................. 34 Safety and Security in Aviation ............................................................................................................ 35 Object Prohibited into Airport / Aircraft .............................................................................................. 36 Contingency Planning .......................................................................................................................... 37 Birds, Wildlife, and Snow Control ........................................................................................................ 37 13. AVIATION − DISASTER MANAGEMENT ............................................................................. 39 14. INTERNATIONAL AIR LAW ................................................................................................ 41 What is Air Law? .................................................................................................................................. 41 Public International Air Law: Chicago Convention ..............................................................................