1. Chapter 4 “Transportation”
Airlines

2. 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.

3. 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

4. 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)

5. 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

6. 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

7. 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

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

9. 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)

10. 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.

11. 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

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

13. 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.

14. 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

15. 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.

16. 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

17. 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.

18. 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.

19. 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.

20. 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

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