Chapter 4 “Transportation” Airlines

History of Air Travel: 1930’s – air industry was controlled by the government with prices being regulated 1996 – National Transportation Act: provided guidelines for service 1987 –beginning of deregulation with privatized organizations beginning.

Outcomes of Deregulation: Bankrupted smaller airlines or forced them to merge with larger carriers. Eliminated some routs in smaller areas Created commuter & discount airlines Created a hub & spoke system = where an airline uses one airport as the collecting point and in turn reduces the number of workers Forced airlines to make alliances

Impact of September 11th: Loss of air travelers immediately following Airline bankruptcies due to financial loss (~$5 million daily) Travelers choosing train, but or automobile. Increase in security (Canadian Air Transport Security Authority CATSA)

International Air System: Bilateral agreement = are international agreements, every country with air service will have singed one of these. number of flights permitted size and capacity of airplane Fares International Air Transportation Association (IATA) = facilitates the movement of persons and goods from & to any point in the world. Mandates to: Promote air safety Represent airlines Set mandatory payments for injury or loss of life or baggage Monitor airline/aircraft registry

Freedoms of the air: (pg. 86) Formed by the IATA 1st freedom –transit 2nd freedom –technical stop 3rd freedom – discharge passengers in foreign country 4th freedom – pick up foreign passengers in another country 5th freedom – pick up passengers in 1 country, stop in another, and continue on to 3rd country. 6th freedom – pick up passengers, make a stopover, and continue on to final destination 7th freedom - airlines in one country can carry passengers between 2 points outside that country 8th freedom – airlines can carry passengers between 2 points within another country

International Civil Aviation Organization (ICAO) = An agency of the united nations (UN) which was formed to ensure the development of the airline system is both safe and orderly Responsible for: Organizing world conferences Mediating disputes between members Setting standards for aviation equipment and operations

Questions: Read pgs 77 - 80 and 84 (bottom) – 86 Answer questions 1, 2 a, b on page 113

Question Answers: Summarize briefly the impact of deregulation on Canada’s transportation systems. major airlines dropped smaller ones leaving some communities with no service smaller companies competing with larger ones went bankrupt or forced to merge “no frills” airlines emerged forced airlines to develop partnerships fares became lower as competition was made the “hub and spoke” system emerged in Canada we have seen a slow decline of Canadian Airlines leaving only one major carrier (Air Canada)

2. a) How does the role of IATA differ from the role of ICAO? IATA is a private organization made up of members from most of world’s major airlines. It is responsible for the orderly expansion of airline services worldwide. ICAO is an agency of the United Nations and its members are representatives from the United Nations. It is responsible for the safe and orderly expansion of the world’s airline systems and for mediating disputes between members, setting standards for aviation equipment and operations. Any decision made by the ICAO must be approved by individual governments before airlines are forced to implement them this means some countries follow their guidelines and some don’t. 2. b) Why were the Freedoms of the Air developed and how do they affect Canada’s air industry? They are general rules that member nations agree to that allow safe, efficient air travel. They were developed in the early days of flight to allow airlines to conduct business under certain guidelines and restrictions.

Air Travel Timeline: 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 First successful airplane flight First international flight First transcontinental flight across US First nonstop transatlantic flight First around the world flight First international passenger service First transpacific / transatlantic passenger service First jetliner passenger service Aircraft is piloted around the world nonstop without refueling

Canada’s Airlines: Transport Canada is responsible for all transportation systems including air travel Provides: Licensing pilots Guidelines for maintenance checks Sets weight loads

Nav Canada (NAVCAN) = a private sector corporation that is given ownership and control over the country’s air navigation system. Provides aircraft with: air navigation and advisory Air traffic control Flight information Weather briefings Training Charges users service fees which are passed on to the customer.

Types of Air travel: Scheduled Air Service = airlines that operate with published timetables of domestic (within country) or international (outside of country) routes. Charter Air Service = non-scheduled airlines or charter air services arrange to fly wherever a group plans to travel. Usually lower rates and is arranged by a tour operator

Airports: Classified into two categories: Air Carrier = used by scheduled airlines and cooperate air planes General Aviation = used by all types of aircraft except scheduled airlines. Are often unpaved and unlit. Airports not owned by airlines; however they rent the space from Transport Canada to fly their plans into and out of them.

Airports Can Have…. passenger terminals parking lots control towers hangars runways taxi services and/or direct access to subways or train stations customs and immigration restaurants, bars, sometimes hotels souvenir shops money exchanges

Types of Airfares: Unrestricted Airfare: passenger can board any plane that has an available seat going to their destination Restricted Airfare: is the airlines version of a sale or bargain. The less expensive the cost the more restrictions. No Shows: people who make reservations but fail to show up. Airlines sell more seats than the airline has to overcompensate. If they have to turn a passenger away they must compensate the ticket holder.

Types of Airfare Cont… Child Traveling Alone: each airline may have different guidelines. Air Canada is as follows: Under age of 5 – must be accompanied by an adult 16 or older. 5-11 “unaccompanied minors” – escorted by Air Canada employee on and off plane. Full supervision, cost is $40 each way. 12-17 “young passenger traveling unaccompanied” – provide services such as securing the safety if a flight is cancelled or delayed. Service is free.

Types of Airfare Cont… Travelers with Wheelchairs = must give an advanced notice to be best served. Air Canada will provide assistance with security, boarding and unboarding for free.

Factors Affecting the Price: Type of journey: one way ticket, round trip, etc. Type of flight: nonstop, connecting flight, stopover flight, etc. Type of Service: first class or coach Prices for airline to rent space at airport Prices that Nav Canada put in place for airline to operate Gasoline prices

Career Opportunities Flight deck crew Cabin crew Maintenance NavCan Transportation Canada Airport manager General office Sales office Tour operator