Airport Operation: Module 3 Topic 3

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Module 3 Topic 3

AIRPORT
OPERATION
Module 3 Topic 3

Understand the concept and

learning
definition of airport
Enumerate the function & roles of
airport

outcomes Identify the revenue sources of


airports
Describe the structure of an
airport
Review the airport codes
Module 3 Topic 3

Simply, an airport is a created space where flights


can land and take off, with facilities for loading
and unloading of passengers and cargo.

A commercial airport may include runways for take off and landing,
other infrastructure to park aircraft, facilities for maintenance,
terminals for passengers and cargo, and other facilities needed for
safety, security, loading and unloading of passengers and cargo,
fuelling of aircraft, etc. and it is licensed for commercial aviation
operation.
Module 3 Topic 3
Airports are categorized in different ways:

these consists of general aviation and commercial


Civil aviation airports
service airports

these contains of international and domestic


Commercial airports
airports
these are commercial airports that are
Hub airports
considered hubs for air services to many other
cities

these are airports with commercial services in a


Regional airports
smaller area

these are built for military or defense purposes.


Military airports
Module 3 Topic 3

Airport Significance for Tourism


A port of entry for a tourist visiting a country
A place for getting a visa wherever visa on arrival (VOA) services are available
Center for refreshment options
Place for booking tourist services such as accommodation, car rental, etc.
Concierge services and tourism information services
Shopping location
Safe transport of luggage
Place for destination reception, "meet and greet" and tour briefing while arriving
A platform for tour briefing and seeing off departing tourists
Currency conversion and limited banking services
An attraction for tourists and an element in the composite tourist experience
A place for rejoining friends and making new friends
Module 3 Topic 3

Airport Customers
Airlines
Passengers
Non-travelers (employees, visitors and retail customers, meeters and
greeters)
Tenants / Service providers (retail, car park, ground handling, advertisers)
Potential development partners (real estate developers, hospitality,
transportation service providers and government

(Hermann & Hazel, 2012)


Module 3 Topic 3

Revenue Sources
Aeronautical charges:
Aircraft landing fee for the use of runways and taxiways
Terminal area navigation fee for air traffic management services
Aircraft parking and hangar fee
Airport noise charge
Passenger service charge
Cargo service charge
Security charges
Ground handling charges
Concession fees for aviation fuel and oil, etc.

Non-aeronautical charges:
Commercial concession fee by shops and service providers
Rental for airport land, building space and equipment
Tolls for automobile parking and rentals
Fee for the provision of engineering services and reimbursable utilities
Airport ownership and
Privatization

Most of the commercial airports are still


functioning under the government or its agencies.
Commercialization began to take place after the
deregulation of public transport.
Increasing cost (new) and maintaining (existing)
airport infrastructure led to privatization
privatization began not as modernization agenda
but due to pressure and factors emerging.
It was viewed that privatization can enhance
efficiency of operations, encourage greater
competition and help in diversification.
Module 3 Topic 3
Module 3 Topic 3

Airport structure
Airside

Wells & Young, 2004

Terminal
Landside
Module 3 Topic 3

Airport codes Can you name these codes?


Airports are identified through PEK MNL
unique three-letter codes DXB DUB
CAN
HND DEN
LHR ICN
LGW KUL
LAX DPS
HKG MAD
CDG DEL
DFW BKK
CDG FCO
FRA LIS
PVG YVR
AMS YYZ
SIN DVO
Module 3 Topic 3

Airport codes Can you name these codes?


Airports are identified through PEK - Beijing, China MNL - Manila, Philippines
unique three-letter codes DXB - Dubai, UAE CAN - Guangzhou, China
HND - Haneda, Japan DEN - Denver, USA
LHR - London, England ICN - Incheon/ Seoul, SK
LGW - London, England KUL - Kuala Lumpur, Malaysia
LAX - Los Angeles, USA DPS - Denpasar/ Bali, Indonesia
HKG - Hong Kong, Hong Kong MAD - Madrid, Spain
CDG - Paris, France DEL - Delhi, India
DFW - Dallas, USA BKK - Bangkok, Thailand
MPH - Caticlan, Philippines FCO - Rome, Italy
FRA - Frankfurt, Germany LIS - Lisbon, Portugal
PVG - Shanghai, China YVR - Vancouver, Canada
AMS - Amsterdam, Netherlands YYZ - Toronto, Canada
SIN - Singapore, Singapore DVO - Davao, Philippines
Reference: Tourism, Transport and Travel Management
M.R. Dileep, 2019

Thank you!
Module 3 Topic 3
Airline Management
MODULE 3 TOPIC 2
Define airline industry and discuss its
characteristics
Describe the airline product

Learning Understand the different type of airlines


Comprehend major airlines functions

Outcomes Explain the passenger processing


MODULE 3 TOPIC 2

activities
Familiar of the classes of service
Identify the major industry practices
followed by the airlines
Airline Industry
MODULE 3 TOPIC 2
SERVICE INDUSTRY
HIGH BARRIERS TO ENTRY AND EXIT
CAPITAL INTENSIVE
HIGH CASH FLOW
DYNAMIC PRICING
OLIGOPOLISTIC

Characteristics HIGHLY REGULATED


NON-PRICE COMPETITION
LABAOUR-INTENSIVE
MODULE 3 TOPIC 2

HIGH LABOUR AND FUEL EXPENSES


HIGHLY COMPETITIVE
CAPACITY VERSUS DEMAND
THIN PROFIT MARGINS
CLOSE GOVERNMENT REGULATIONS
SEASONALITY
Airline Product

The airline product is a set


MODULE 3 TOPIC 2

Its core product is


Intangible of services. Safety is also an important
transportation either of
Inseparable in-flight cabin services aspect associated with
passenger or cargo, from
Highly Perishable ground handling airline product.
one place to another.
services
NON-SCHEDULED
SCHEDULED
AIRLINES
AIRLINES
These are commercial services,
Major airlines but do not follow published
Regional airlines schedules for flights (not on
Commuter airlines regular schedule)

Types of National airlines Charter flight services are


Flag carrier good examples of this.
Consumers consists of
Full-service carriers

Airlines
tourists, athletic teams,
(FSCs)
corporations, government
MODULE 3 TOPIC 2

Low-cost carriers agencies etc.


(LCCs) / Low-cost Not all commercial non-
airlines (LCAs) scheduled operations are
charter flights.
Schedule Design Aircraft Routing
Define which markets to serve and Determine how to route aircraft to
with what frequency, and how to cover each flight leg with one
schedule flights to meet these aircraft and ensure maintenance
frequencies. requirements for aircraft.

FOUR MAJOR AIRLINE


FUNCTIONS
MODULE 3 TOPIC 2

Fleet Assignment Crew Scheduling


Specify what type of aircraft to Select which crew will cover each
assign to each flght leg. flight leg in order to minimize global
crew cost.
PASSENGER
SECURITY CABIN & BOARDING &
PASSENGER PUSH BACK
CHECK AND AIRCRAFT BAGGAGE
CHECK-IN
IMMIGRATION PREPARATION LOADING & TAKE OFF LANDING

Passenger Immigration Crew sign-in Captain will Aircraft Once reached


check-in documents Flight plan to give OK TO pushback certain
(counter / check be prepared BOARD signal from the altitude, in-
online) Customs final Interior and to the bridge flight services
Documents screening / x- exterior CSA/ground Ground staff will begin
MODULE 3 TOPIC 2

check ray prior to inspection of Passenger organize the ATC gives


(passport, entering the aircraft boarding and aircraft to instructions
visa etc.) boarding gate Status of loading of taxiway and
Baggage catering and baggage and Take off destination
collection emergency cargo. infos.
equipments Close all doors Descend and
prepare for
landing

Passenger Processing and flight operation


Classes of service
FIRST CLASS BUSINESS CLASS ECONOMY / COACH CLASS
Most expensive (F class) Target group are business and Largest class of service
Usually located in the front of frequent travellers seats are closer together w/ less
the aircraft usually located behind the seat pitch
Widest seat, most business class All in-flight services are provided
comfortable Services and facilities are in the flight however variety
MODULE 3 TOPIC 2

Seats can be turn to sleeper superior to economy class offered is usually less *except if
seats (long-haul) Seats are wider and also wide flying with LCC w/c offers no
Best in-flight entertainment range of meals frills flights
and personalized service Special check-in counter and Y class (booking / fare code)
The best meal is provided with access to lounge
Limited seats
Speedier check-in, boarding
J class is less expensive than F
and special lounge access
class but costlier than Y class
FLIGHT OPERATION
employees responsible for the safe and efficient
operation of airline's fleet.
Training staff, flight crew, cabin crew, and scheduling
and monitoring staff

Airline personnel GROUND OPERATIONS


and organization employees responsible for operation on land for
passenger processing, baggage handling, aircraft
handling, and support functions necessary for those
MODULE 3 TOPIC 2

operations.

COMMERCIAL OPERATIONS
Mainly include administrative, human resource, and
marketing and sales staff.
HUB AND SPOKE
SYSTEM

CODE SHARING AND


INTERLINING

Common Industry Practices


FREQUENT FLYER
MODULE 3 TOPIC 2

PROGRAMME

AIRLINE ALLIANCES
Common Industry Practices:

MODULE 3 TOPIC 2
Hub and spoke system
consist of at least one hub
airport that plays the role of
collecting and distributing
passenger traffic among flights
at an airport.

Helps major airlines to focus on


longer routes with better loads.

Increase the average number of


passengers on its flights.
Common Industry Practices:

MODULE 3 TOPIC 2
Code Sharing and interlining
Code sharing is an agreement /
partnership between large and
regional airlines that create an
integrated service, linking
smaller cities with major cities.

It is a marketing arrangement
where airline places its
designator code on a flight
operated by another airline.

Interlining is an agreement to
allow connecting flights to be
placed on the same ticket.
Common Industry Practices:

MODULE 3 TOPIC 2
Frequent flyer programme

A strategy to retain customers for


repeat purchases.

Aims to enhance number of travellers


and create loyalty among passengers.

Allows frequent fliers to earn free


tickets after accumulating a certain
number of miles flown on the carrier.

Free upgrade, tickets, car rental


services, extra baggage allowance, and
access to the lounge.
Common Industry Practices:

MODULE 3 TOPIC 2
Airline Alliances
Share services, technology, and skills.

Joint marketing programmes


Code sharing arrangements
Joint CRS operations
Joint frequent flyer programmes
Cross holiday arrangements
Minority ownership

Companies remain separate entities, but cooperate to


improve efficiency, increase customer service levels
and decrease cost .
MODULE 3 TOPIC 2
Question
MODULE 3 TOPIC 2
Thank you!
REFERENCE: TOURISM,
TRANSPORT AND TRAVEL
MANAGEMENT, M. R. DILEEP, 2019
The Air Transportation
Industry
Learning Objectives :

❖ Define airline industry terminology

❖ Explain how the various types of aircraft used in


commercial aviation differ

❖ Categorize airline types


The Aviation System
Aviation is the broad term used to describe the
industry that builds and flies aircraft.

It is usually subdivided into military aviation


(aircraft flown by a nation’s air force and other
branches of its military) and civil aviation the
industry that flies the public from place to place.
Also part of the civil aviation system are chartered,
cargo, and private aircraft that belong to individual’s
or companies and use some of the same airports and
routes that commercial flights do.
Civil aviation, in turn, can be divided into
domestic service and international service.

For domestic service, a flight must start and end


within the borders of the same country.

International service, the flight starts in one country


and ends in another.
Controlling the Skies – and More

o The Federal Aviation Administration (FAA) is in charge


of air traffic control operations, licenses pilots, inspects
aircraft, and oversees maintenance.
Controlling the Skies – and More

o The Civil Aviation Authority of the Philippines


(CAAP)

Republic Act No. 9497


SEC. 21. Policies. - In the exercise and performance of its
powers and duties under this Act, the Authority shall
consider the following, among other things, as being in
the public interest and in accordance with the public
convenience and necessity:
Controlling the Skies – and More

o The Civil Aviation Authority of the Philippines


(CAAP)

Republic Act No. 9497


(a) The development and utilization of the air
potential of the Philippines;
(b) The encouragement and development of an air
transportation system properly adapted to the
present and future of foreign and domestic
commerce of the Philippines;
Controlling the Skies – and More

o The Civil Aviation Authority of the Philippines


(CAAP)

Republic Act No. 9497


(c) The regulation of air transportation in such
manner as to support sound economic condition in
such transportation and to improve the relations
between air carriers;
Controlling the Skies – and More

o The Civil Aviation Authority of the Philippines


(CAAP)

Republic Act No. 9497


(d) Ensuring the safety, quality, reliability, and
affordability of air transport services for the riding
public;
(e) The encouragement and development of a viable
and globally competitive Philippine aviation industry.
Controlling the Skies – and More

o The International Air Transport Association


(IATA), an association made up of most of the
world’s airlines, sets standards for civil aviation.
Controlling the Skies – and More

o Their objectives are to promote safe, regular, and


economical air transport, faster air commerce, and
study problems connected with the industry.
Controlling the Skies – and More

o It is involved in standardizing tickets, prices,


weight bills, baggage checks, and other
documents.
Controlling the Skies – and More

o International Civil Aviation Organization


(ICAO) established for the purpose of promoting
civil aviation on a world-wide scale.
AIRLINE SERVICE AND ROUTES

➢ Aircraft can’t simply fly wherever and whenever


they want.

➢ Governments, airports, and even the economic


environment help shape what routes are taken and
what schedules are observed.
AIRLINE SERVICE AND ROUTES

➢ Scheduled Service is air transportation that


operates regularly at set, advertised times, no
matter how many people are booked on the flight.
AIRLINE SERVICE AND ROUTES

➢ Charter Flight occasional flights flown by


charter airlines maybe called a direct air carrier.
AIRLINE SERVICE AND ROUTES

➢ Privately Owned Jet company owned.

➢ Fractional Ownership the plane has


multiple owners who have a set amount of flight
hours they can use. (similar to timeshares in the
lodging industry)
FLIGHT TYPES AND ROUTES

➢ Nonstop Flight the traveler goes from Point


A to Point B on the same aircraft, with no stop in
between.
FLIGHT TYPES AND ROUTES

➢ Direct Flight the traveler goes from Point A


to Point B on the same aircraft, but that aircraft
stops at an airport in between.
FLIGHT TYPES AND ROUTES

➢ Connecting Flight the traveler, to get to his


or her destination, must change planes once,
twice, or even more times.
FLIGHT TYPES AND ROUTES

In the travel industry, each flight is called a segment


of the passenger’s trip.

Occasionally, an airline will use the word direct,


rather than connecting, to describe an itinerary
composed of two connecting flights.
Another way to look at flights – from the
traveler’s ticketing point of view – is which
itinerary route the passenger.
One-way flight itinerary means that the traveler
just goes from Point A to Point B.

Oddly, a one-way ticket to a destination is sometimes


more expensive than a round-trip ticket.
Round-trip flight itinerary the traveler flies from
Point A to Point B, stays awhile, and then returns
from Point B to A.

It can be nonstop, direct, or connecting.


Open-jaw itinerary is one where the traveler flies
from Point A to Point B, then travels by ground
transportation (such as car rental or by rail) from point
B to C, then returns by air transportation from C to A.
Circle flight itinerary is one where the traveler has
two or more extended stopovers and returns to the
originating city.
Add Knowledge…
At high altitudes, our ability to taste is reduced by 30
percent. That’s why airline food is deliberately made
more spicy.
HUBS AND SPOKES
▪ Before the 1970s, most passengers flew either
direct or nonstop.

▪ But as airlines (or carriers, as they’re sometimes


called) began to analyze air-booking patterns, they
realized it would be more efficient and economical
to make the majority of their flights flow through a
few key airports.
HUBS AND SPOKES
▪ These airports would become hubs for a vast
system of “spoke” flights.

▪ Domestic hubs handle mostly domestic flights.

▪ International hubs feature many flights to other


countries.
HUBS AND SPOKES
▪ The hub-and-spoke system isn’t always traveler-
friendly, but it benefits the airlines and, in theory,
leads to efficiencies that result in lower fares.
AIRCRAFT

Most aircraft can be divided into two broad


categories: those powered by jet engines and those
driven by propellers, or props.
AIRCRAFT

Prop planes are smaller, go relatively slowly (about


300 mph), and travel short distances.

Jet aircraft fly faster (520 to 560 mph or so), can go


much longer distances, and tend to be larger (although,
increasingly, small jet planes are replacing prop ones).
AIRCRAFT

There’s also something called a jet prop, which


combines features of both prop and jet engines.

Jet prop planes tend to be larger and a little faster than


regular prop aircraft.
AIRCRAFT

Jets come in two variations: narrow-body jet and


wide-body jet (also called “jumbo jets”).
AIRCRAFT

Configuration refers to the way seating is arranged


within the aircraft.

For example, a plane’s coach section might have three


seats on its left side (labeled ABC), an aisle, and then
three seats on the right side (labeled DEF), with 24
rows.
AIRCRAFT

Its first-class cabin might have two seats per row on


one side of the aisle and three on the other, but three-
and-three is a more common configuration.
AIRCRAFT

A narrow-body jet usually carries fewer than 200


passengers.

If it’s even smaller (for example, one seat on one side,


two seats on the other), it may be called a regional jet
or a commuter jet. Such “mini-jets” carry fewer than
100 people.
AIRCRAFT

A wide-body jet, because of its greater size, has two


aisles. A possible coach cabin configuration is AC-
DEFG-HK that is, two seats, an aisle, four seats,
another aisle, and two seats.

Such planes can carry well over 200 passengers.


AIRCRAFT

The Boeing 747 even has a second, shorter upper deck,


usually with an AC-DF first-class or business-class
layout, and the Airbus A380 has two full-length decks.

Most full-size aircraft are built either by Boeing or


Airbus. Regional jets and prop planes are built by many
manufacturers throughout the world.
PITCH, WIDTH, AND RECLINE

If someone refers to the “pitch” of seating, wouldn’t


you assume that it had to do with how far a seat
reclines?
PITCH, WIDTH, AND RECLINE

Pitch is the distance between a point on one seat and


the same point on the seat in the row in front of or
behind it. This is also sometimes called legroom.
PITCH, WIDTH, AND RECLINE

For the majority of their seats, most airlines (and charters)


provide the smallest amount of pitch possible without
causing too great of discomfort for an average-size person.

The reason: reduced pitch permits more rows on the


aircraft, which yields more revenue.
PITCH, WIDTH, AND RECLINE

A few airlines offer more generous pitch (33 or 34


inches instead of the average 31 to 32) as a way to set
themselves apart from other carriers and attract those
for whom roominess is a high priority.

The theory: a higher load factor (the percentage of


seats filled with people) will offset the lost revenue
from those extra rows.
PITCH, WIDTH, AND RECLINE

Seat width also affects comfort.

The average seat on an aircraft is a mere 17 to 18


inches wide, with some as narrow as 16.5.
PITCH, WIDTH, AND RECLINE

A third comfort element is recline.

Some airlines set seats to recline only about 10 percent,


others by as much as 45 percent or more, or even full
recline, creating a bed-like situation.
CLASSES OF SERVICE

Most aircraft have two classes of service: first and


coach.
CLASSES OF SERVICE

First class is in the compartment at the front of the


plane.

It usually features among other things, wider seats,


greater pitch, more recline, more elaborate meals,
complimentary alcoholic beverages, and free movies.
CLASSES OF SERVICE

Coach class (sometimes called economy class) is the


more standard level of service.

It features narrower seats, less pitch and recline (rarely


more than 30 percent), simple meals or snacks, or even
no food service at all.
CLASSES OF SERVICE

Usually, separating the coach and first-class


compartments is a wall called a bulkhead.

The row of coach seats immediately behind this


partition is called the bulkhead row.
CLASSES OF SERVICE

An aircraft might have three classes of service: first


class, business class, and coach.
SEATING ASSIGNMENTS

How are seats assigned?


❑ When making a flight reservation, a passenger can
reserve a specific seat in advance, either by phone
with a travel agent or an airline reservationist, or on
the Internet.

❑ Passengers can also reserve a seat when they check


in at the airport: at the check-in counter.
❑ The exit rows (the rows where the emergency exits
are located) are usually assigned at airport check-in
because they require able-bodied passengers to help
open the exterior door in an emergency.

❑ Only airport personnel can make sure that the


people sitting in exit-row seats aren’t children or
physically challenged passengers.
❑ Most airlines, however, keep some seats under
“airport control”.

❑ Passengers can’t book these seats in advance.

❑ Other carriers don’t allow pre-assigned seating at


all.
❑ Passengers board the plane based on a priority
numbering system that is assigned when they check
in.

❑ On some airlines, passengers can pay extra to board


the plane before other passengers.

❑ Southwest Airlines simply lets passengers take


any seat they want as they board.
TELLING TERMS
Commercial flight
A flight whose seats have been sold by an airline
to the general public. Commercial flights are not
military or private flights.

Code-sharing
When an airline uses the code of another carrier
for a scheduled flight. For example, UA 3506 may also
be LH 445. (The aircraft may be either a United or
Lufthansa). Used among partner airlines (often within
their “alliances”.
TELLING TERMS
Red-eye flight
An overnight flight. Called “red-eye” because
the passengers are trying to sleep – usually
unsuccessfully – on the plane.

Interline agreement
A formal agreement between two airlines. Often
both are code-sharing partners, with easy baggage
transfer and acceptance of each other’s documents
(such as tickets).
TELLING TERMS
Gateway
A city and/or airport that serves an airline as its
departure/arrival point for international travel.

Yield management
A computer-assisted process that, by assessing
supply and demand, enables airlines to arrive at pricing
that yields maximum load factors and revenue.
TELLING TERMS
Flight attendants
Airline personnel who see to the safety, comfort,
and needs of passengers on a plane. Formerly called
stewards and stewardess.

Mechanical
When a flight is canceled because of a problem
with the aircraft .
ANY QUESTIONS?
Here’s your chance to compare three Web sites that
consumers regularly use to book flights. Visit the Web
sites and answer the following questions for each one:

Expedia (http://www.expedia.com)
Orbitz (http://www.orbitz.com)
Travelocity (http://www.travelocity.com)

1. What do you feel is its greatest strength?


2. What do you think is its greatest weakness?
3. What do you feel is its most unique feature?

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