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

2. 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. 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. 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. 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. 6© 2006 by Nelson, a division of Thomson Canada Limited.

7. 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. 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. 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. 10© 2006 by Nelson, a division of Thomson Canada Limited.

11. 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. 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. 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