1. Hospitality and Tourism Strand 3
Transportation: Airlines

2. How popular is air travel?
In times of peace, approximately 8 million people take a plane trip each day.
Around 5,000 aircraft in the sky at any given time.
Aviation contributes 5.1% to the U.S. GDP
Aviation related jobs generate $446.8 billion in annual earnings

3. Air Transportation History
1903: Wright brother’s first plane
852 feet
1914: Commercial passenger travel on planes
1 ticket auctioned for $400
1927: Charles Lindberg crossed Atlantic
Long Island, New York to Paris, France
1933:United flies coast to coast
Took 20 hours
1935: First North American commercial terminal
Newark, New Jersey- dedicated by Amelia Earhart
1952: Jet planes
De Havilland Comet- United Kingdom
1958: Federal Aviation Act
Created FAA (Federal Aviation Administration)
1978: Airline Deregulation Act
Allowed for competition
1979: First Frequent Flyer Program
Texas International Airlines
1994: First ticketless travel
Southwest Airlines
1995: First airline tickets sold on Internet
Alaskan Airlines
1998: Smoking is banned on all US Domestic flights
2001: TSA (Transportation Security Administration) created
In response to September 11th attacks

4. Airport Marketing Mix
Product:
Price:
Place:
Promotion:

5. Product: Airport How many airports are there?
There are more than 19,500 airports in the United States
5,116 are public airports
Airports have two names:
Name of Airport
3-Letter Airport Code
JFK
ATL
LAX
ORD
SLC

6. Product: Airport Facilities
Airways are numbered just like highways on the ground.
The control tower is the nerve center of the airport.
The top of the tower is the cab.
Air traffic controllers are airway patrollers who keep things running smoothly in the air and in the airports.
Terminals are the buildings used by passengers in their procession from ground to air.

7. Key Aviation Terms
Slots – The time a plane can land, be at a gate, and take off
Scheduled Service – Flights made over regularly flown routes according to a published timetable
Nonscheduled Flights – Planes hired to fly to a particular place at a time specified by the customer – also could be a charter flight

8. Boarding Check-in: Gate Agent:
Lets the airline know a passenger has arrived.
Tickets and IDs are checked
Baggage weighed and ticketed
Boarding passes are issued
Gate Agent:
Controls boarding procedures, usually about minutes before flight time
Ticket lift: tickets are collected by the airline, as passengers board the plane, to account for passengers

9. Baggage Baggage Options:
Checked – Bags are checked during the check in process. Must be within weight and size restrictions. Fees could apply.
Most airlines are now charging a baggage fee.
Example - $25 for 1 checked bag
How much luggage is estimated that the airlines lose each day?
Fewer than 1% of nearly 3 million bags
Carry-On – Must meet size restrictions - be able to fit in overhead bins or under the seat. Must meet all security restrictions.

10. Security Airport security is controlled by the government
TSA (Transportation Security Administration)
IDs and Boarding passes are checked
Passengers walk through detectors
Possessions are put on a conveyor belt that goes through an x-ray machine
Passengers must remove shoes, belts, jackets, etc.
Laptops/large electronics must occupy a separate bin
Checked luggage is screened as well

11. Carry-on Liquids
Source:

12. Key Aviation Terms
Minimum Connecting Time – the amount of time a reservationist must leave in between 2 flights to allow passengers and baggage to transfer from the first plane to the second

13. Price: Airport Traffic Operations Airport Concessions Parking Lots
Airline fees
Slot sales
Airport Concessions
Parking Lots

14. Place: Airport
The United States accounts for more than 1/3 of the world’s aircraft activity.
What airport is within a 90-minute flight of more than 50% of the U.S. and Canadian populations?
Pittsburgh (PIT)
What is North America’s largest-in-area airport?
Denver (DEN)

15. Place: Airport
What airport is designed to handle as many as 260,000 arriving passengers a day?
Atlanta- Hartsfield-Jackson -ATL
Of the world’s 30 busiest airports, 11 are in the United States.
Busiest Airports:
1. Hartsfield- Jackson (ATL)
5. Los Angeles Int’l (LAX)
8. O’Hare (ORD)
9. Dallas-Fort Worth (DFW)
19. Denver (DEN)
21. John F. Kennedy Int’l (JFK)
23. Phoenix Sky Harbor (PHX)
24. Miami (MIA)
25. San Francisco (SFO)
27. Charlotte Douglas (CLT)
28. McCarran (LAS)

16. Promotion: Airport Airport often promote their strengths Use media
Facility
Accessibly
Customer service
Use media
Billboards
Television commercials
Heathrow airport- specializes in reconnecting loved ones

17. Airline Marketing Mix
Product:
Price:
Place:
Promotion:

18. Product: Airlines
In the United States, the airlines are PRIVATELY owned!

19. Airline Codes American Airlines – AA Alaska Airlines – AS
Delta Airlines – DL
Hawaiian Airlines – HA
United Airlines - UA
Southwest Airlines – WN

20. Product: Planes Most common commercial aircraft used
Boeing 747- single aisle- 416 to 660 passengers
Boeing aisles- 300 to 550 passengers used for international flights
Boeing 737- single aisle- 85 to 215 passengers
Boeing aisles- 242 to 335 passengers used for international flights
Boeing 757- single aisle to 295 passengers
Boeing 767- single aisle- 181 to 375 passengers
Boeing 727- single aisle- 149 to 189 passengers perfect for short runways and small airports
Airbus A320- most common for domestic flights- holds up to 220 passengers
Airbus A380- double decker- up to 853 passengers

21. Product: Seats
First Class – Located at the front of the plane. Wider seats, more padding, extra space between rows. Built-in electronics (new). Board and deplane first. Movie and alcohol free. Meals.
Business Class – Scaled down from first class. More room and comfort than coach. Service comparable to first class.
Coach Class – Seated in rear of plane. Narrow seats, close together. Overhead bins limited. Movies and alcohol cost.

22. Airplane Key Terms
Pitch is the distance from the front of one seat to the front of the seat behind.
Bulkhead seats are seats immediately behind the wall that separates coach from first class.

23. Product: Flights
One-way Trip – A trip from origin to destination with no return to origin
Round Trip – A trip from origin to destination with return to origin. Flights follow same route and use same carrier.
Circle Trip – Same as round trip except one flight will follow a different route or use a different carrier
Open Jaw – A round trip where the passenger either departs for return trip from a different airport or returns to a different airport.

24. Product: Flights
Nonstop Flights – A flight form origin to destination with no intermediate stops
Direct/Through Flights – A flight from origin to destination with one or more intermediate stops
Connection Flights – A flight from origin to destination with one or more intermediate stops where the passenger must change planes

25. Hub-and-Spoke System
An airline network formed by a hub (large airport) and spokes (smaller airports)
Centralized operations
Most major airlines have one or more “hubs”
Passengers fly from “hub” to “spokes” and from “spokes” to “hub” to connect to other cities.
It saves the airlines money
A fortress hub is an airline-dominated airport.
American = Dallas/Fort Worth
Delta = Atlanta
Southwest = Dallas-Love Field
Continental = Houston
Northwest = Minneapolis
United = Chicago

27. Contract of Common Carriage
The carrier’s obligation to provide transportation as promised and the statement of the limit of liability for loss and damage claim if it does not fulfill its part of the bargain.

28. Price: Airlines
Price is the most important factor when buying a travel product
Southwest is the USA’s largest low-fare carrier
How Are Fares Determined?
The Actual Cost of Service
Marketing Decisions
Route Assignment
Mileage
Class
Stopovers
Profit Motives

29. Price: Airlines Airline income: Airline Expenses:
Largest source of income – PASSENGER REVENUE
66% from Business Travelers
Airline Expenses:
Planes/Maintenance
Labor
Landing fees
Fuel
Passenger meals
Advertising
Commission

30. Consolidators
Consolidators are high-volume ticket sellers who contract with carriers to consolidate or sell at reduced rates, airlines’ excess inventory – seats that would otherwise fly empty.

31. “What do you mean it is Overbooked?”
How do no-shows or last minute cancelation affect an airline?
Empty seats
Lost income
Airlines overbook to keep all planes full at the time of flight
Voluntary Denied Boarding Compensation
People give up their seats in return for a seat on the next available flight and some financial compensation

32. Promotion: Airlines Frequent Flyer Programs:
An airline marketing strategy, that helps airlines to make a profit as well as build loyalty.
American – AAdvantage Program
JetBlue – TrueBlue
Delta – Sky Miles
Southwest – Rapid Rewards
United – Mileage Plus

33. Promotion: Airlines Airline Executive Clubs
American Airlines – Admirals Club
Delta Airlines – Sky Club
United Airlines – United Club
Advantages of being a member:
Check-in services
Stow luggage
Private bathrooms
Private TVs
Newspapers
Drinks
Snacks
Meeting rooms

34. Aviation Jobs

35. Airport Manager The duties of an airport manager:
Enforcing aviation rules and regulations
Planning and supervising maintenance and safety programs
Negotiating leases
Administering the budget
Promoting the airport’s use
Training and supervising employees
Maintaining good community relations

36. Skycap Skycaps do curbside check-in They also process your luggage
Can people use a Skycap when flying international?
No, they must pass through customs

37. Airplane Ground Services
Cleaning the cabin
Putting food and beverages from the flight kitchen on to the plane
Pumping drinking water aboard
Unloading and reloading baggage, cargo, and mail
Making a mechanical check
Fueling the plane
Boarding the passengers

38. Pilots and Crew
Pilots have a daily flight limitation of 10 hours for a two-person crew.
Flight crews may not exceed a maximum of 60 flight hours during any seven consecutive days.
Each must have at 8-hour rest period during any 24 hour period.

39. Flight Attendants
Preflight – Weather conditions and potential passenger problems at briefings. Checking supplies and equipment on board, greeting passengers, assisting passengers, seat belts, and safety briefings.
In-flight – Distribute pillows and blankets, serve drinks and meals, assist passengers, secure cabin, and handle medical emergencies

40. Flight Attendants
Post-flight – Writing reports, reporting money, lost and found articles, medical emergencies, equipment needing attention
Flight attendants fly from 65 to 85 hours a month, plus they have about 50 hours a month duty time between flights.

41. Air Traffic Controller
Job duties of an air traffic controller
To keep airplanes flying safe in the sky
To keep airplanes away from each other
Manage the flow of aircraft into and out of an airport
A stressful job
High paying- Median pay $125,000