1 © 2006 by Nelson, a division of Thomson Canada Limited. The Airline Industry

2© 2006 by Nelson, a division of Thomson Canada Limited. The Regulation-Deregulation Continuum  In the early 1980s, the United States led an initiative to reduce the amount of government control over the airline industry.  It was designed to make the industry more competitive and better for the customer.  The key areas it affected:  Entry / Exit restrictions  Rate/Fare Setting  Freedom to Manage  Mergers and Acquisitions  End monopolies

3© 2006 by Nelson, a division of Thomson Canada Limited. Types of Aircraft Engine Types  Jet engines  Propeller driven Purpose  Short-haul  Short to Medium – haul  Long-haul  Special purpose

4© 2006 by Nelson, a division of Thomson Canada Limited. Types of Air Service United States  Major air carriers  National air carriers  Large regional/ commuter carriers  Medium sized regional/commuter carriers Canada  National carriers  Regional carriers  International carriers  Domestic charter air service  International charter air service

5© 2006 by Nelson, a division of Thomson Canada Limited. Airports  Airports collect date on the consumers of their facilities; they are collected under the following headings –Canadian Airport Passenger Data –Canadian City Pair Passenger Data  Passengers by Sector –Domestic –Transborder –International

6© 2006 by Nelson, a division of Thomson Canada Limited.

7 Airport Layout  Terminal Building  Cargo Terminal  Control Tower  Hangars  Runways  Loading Apron  Taxiways  All of this means that modern, state of the art airports cover large areas. –Some airports have their own subways to move passengers from the parking lots to the terminals.

8© 2006 by Nelson, a division of Thomson Canada Limited. Regulation While there was some de-regulation, the industry is still quite regulated worldwide. The International System  Worldwide Conferences  The Freedoms of the Air  Bilateral Agreements  International Air Transport Association  Traffic Conferences

9© 2006 by Nelson, a division of Thomson Canada Limited. Regulation Canada  The 1990’s Canada followed the American example and started to de- regulate (loosen its control over the industry)  This led to –Airline Restructuring –Open Skies Agreements (U.S.) allows plans from other countries to set up and sell tickets in Canada  New Entrants: smaller airlines (Canada 2000, Westjet, Canjet) –Many of these went bankrupt following 9/11  The 2000’s –There is only one national airline (Air Canada), the few remaining Canadian ones are local or regional. –Alliances: some airlines are working together rather than directly competing for the same passenger. By coordinating flight times etc.

10© 2006 by Nelson, a division of Thomson Canada Limited.

11© 2006 by Nelson, a division of Thomson Canada Limited. Factors Affecting the Price  Type of Journey –One Way –Round Trip –Circle Trip –Open Jaw  Type of Flight –Non-stop –Direct –Interline connection –Online connection –Stopover

12© 2006 by Nelson, a division of Thomson Canada Limited. Airline Industry Concerns  Concern for the Environment  Concern about Air Rage and Airport Rage  Consumer Complaints

13© 2006 by Nelson, a division of Thomson Canada Limited. Career Opportunities  Flight Crew  Ground Crew or Staff  NAV CANADA Employees  Station Manager  Airport Manager  General Office  Sales Office