Handout 9

Question 1

chain has many parts in which the airline is a part of it. The chain begins with manufacturers, infrastructure, and services providers and ends with the distribution of services for passengers and cargo.

Answer 1

aviation value chain

Question 2

Aircraft
Engines
Other components

Answer 2

Manufacturers

Question 3

Airports
Air Traffic Control
Communications

Answer 3

Infrastructure:

Question 4

Insurance providers
Airport services provider
Catering
Maintenance

Answer 4

Service provider:

Question 5

Global Distribution
Systems
Travel Agents/Tour
Operators

Answer 5

Distribution (Passengers):

Question 6

Freight forwarders (FedEx, DHL)

Answer 6

Distribution (Cargo):

Question 7

is a consequence of the demand or a need for something else.

Answer 7

derived demand

Question 8

Airline products are mostly perishable, meaning that in a single flight, a vacant seat cannot be sold again. Most airlines are challenged bv the proper allocation of their products to minimize cost and maximize revenue. For example, airlines under the FSNC business model (discussed in the previous module) usually offer multiple seat classes (first, business, and economy) on a single aircraft so they can tap into different market segments.

Answer 8

Airline Market Supply

Question 9

Among the strategic choices of airlines with regards to satisfying air travel market demand are the destinations and routes it will offer to passengers. These decisions are affected by other fundamental strategic decisions such as the target market and how the airline intends to have a competitive advantage against its counterparts.

Answer 9

Route Structure (Cook, G. & Billig, B., 2017)

Question 10

This route structure is a simple approach to connecting the destinations that the airline wishes to offer. Non-stop flights are usually used in this route, and all passengers embark from their origin and disembark at their destination.

Answer 10

Point-to-Point

Question 11

This route is a simple extension of the point-to-point structure where after reaching a destination, the flight may continue to one (1) or several destinations. This route structure allows for the boarding of passengers from the origin and the destinations along the route and deplane at their respective destinations.

Answer 11

Linear

Question 12

This route is usually utilized by large airline companies in the world. Its design and operation are very complex compared to the previous two (2) route structures. This route structure works best for serving wide geographical areas and many destinations. It has many variations depending on the destinatior

Answer 12

Hub-and-Spoke

Question 13

• A single hub-and-spoke network can connect more destinations that comprise several pairs of destinations. For example, an airline that offers flights from New York as its origin and Manila as its destination can access more city pairs in the Philippines (Manila-Cebu, Manila-Davao, Manila-llocos).

Answer 13

Expansion of city pairs

Question 14

Since the hub-and-spoke structure can connect more destinations, it can also cater to almost every airline demand market segment

Answer 14

Consolidation of demand

Question 15

An airline that utilizes the hub-and-spoke structure provides convenience to passengers in terms of easier transactions, single check-in for multiple destinations, easier gate and facility locations, and a structured flight schedule, among others.

Answer 15

Passenger convenience

Question 16

Airlines can take advantage of the market within their hub by establishing their dominance in the local market.

Answer 16

Hub dominance

Question 17

Airlines that use this structure are usually prioritized in terms of utilization of the hub airport’s facilities.

Answer 17

Competitive strength

Question 18

Hub airlines reach a wider share of the global market due to the huge number of routes it serves.

Answer 18

Widespread distribution

Question 19

Hub-and-spoke structured airlines technically have the highest operational costs because of the number of routes it serves.

Answer 19

Flight operations expense

Question 20

The spokes’ distance in the hub-and-spoke structure varies greatly, that it’s a challenge for airlines to structure their trips that will optimize passenger convenience.

Answer 20

Harder pacing of flights

Question 21

-As the hub-and-spoke structure gets the largest part of the air travel demand market, it tends to crowd hubs, especially in the events of delay and cancellations. Passengers are stuck in the terminals, and aircraft are stuck in the parking ways, taxiways, and runways.

Answer 21

Crowded hubs

Question 22

The structure serves cities of different sizes and demands. From small to big cities, their airports have different capacities. To reach a wider market, hub airlines must have different types of aircraft to be able to operate in different types of the airport.

Answer 22

Mixed fleet requirement

Question 23

Hub-and-spoke structured airlines are always susceptible to flight delays. A delay in a spoke may result in the delay of other routes.

Answer 23

Delays

Question 24

This focuses on the optimization of resources through proper scheduling of airline activities. The resources in operating an airline, such as aircraft and flight crew, are expensive and costly to employ, respectively.
Resources need to be svnchronized as well in airline operations. for most airline resources cannot operate independently.

Answer 24

Airline schedule and resource planning

Question 25

- The airline must determine not only the departure times of flights on different routes but also the frequency of daily flights. Many airlines apply the basic rule of "the more frequent a flight is, the more it is appealing to passengers."

Answer 25

Schedule/timetable generation

Question 26

After setting a timetable, the airline needs to allocate its available aircraft to the right routes. The choice of which aircraft to utilize for a specific route is usually based on the tentative forecast. The task is to choose the right type of aircraft for the right route that will meet the demand and maximize potential revenue.

Answer 26

Fleet assignment and routing

Question 27

Each flight must be assigned to one (1) aircraft type.

Answer 27

Flight coverage

Question 28

The total number of incoming aircraft at an airport must be equal to the total number of outgoing aircraft in addition to the aircraft remaining on the ground.

Answer 28

Aircraft flow balance

Question 29

- The number of aircraft used must be less than or equal to the total fleet size.

Answer 29

Fleet size

Question 30

The availability of desired parking slots at all destination airports must be adequate to handle the fleet assignment accordinglv.

Answer 30

Slot allocation

Question 31

After routes are assigned to aircraft, the next step is to design a work schedule for the flight crew who will operate the flight.

Answer 31

Crew scheduling

Question 32

This is a work schedule that is designed in a sequence of flights that begins and ends at a crewmember's base/headquarters.

Answer 32

Crew pairing

Question 33

After the work schedule for crew members is designed, the crew pairings will be assigned to the crew members.

Answer 33

Crew rostering

Question 34

The people involved in an airline operation are scattered across the airline's route system. In nature, airline emplovees often report to difterent managers who are assigned to handle ditterent areas of the operation. This often results in conflicting priorities and poor communication with other functional departments

Answer 34

Airline Operations Control Center (AOCC)

Question 35

This is responsible for the flight planning, issuing flight plans to captains, and following each flight's progress.

Answer 35

Dispatch

Question 36

are licensed professionals who ensure the sate operation o the flight along with the pilot.

Answer 36

Dispatchers

Question 37

This tracks crew members' movement through the airline's route network, checking their status, and calling in reserve crewmembers, or readjusting their schedules as the need arises, especially during disruptions.

Answer 37

Crew scheduling

Question 38

This coordinates with line mechanics for aircraft maintenance, especially during technical issues. They make sure that the required parts and repair equipment are available to meet aircratt maintenance policies and troubleshoot maltunctions

Answer 38

Maintenance control

Question 39

This tracks individual aircraft to make sure that their schedule would allow for their required maintenance.

Answer 39

Fleet planning

Question 40

The front-liners who are in charge of ensuring the proper flow of the passenger check-in up to the boarding process belong to this functional area. They also make sure that schedule changes are communicated to station personnel and passengers and accommodate all the required needs of affected passengers.

Answer 40

Customer service

Question 41

The nature of airline operations is that it is full of uncertainties. The airline is a business that is always subject to disruptions, which the most common are flight delays and cancellations. Airlines do their timetabling with the presumption that the daily operations will be performed without any schedule changes.

Answer 41

Disruption Management

Question 42

-This is a reactive form of intervention made by airlines to return the operations to their normal schedule. It is usually applied in the events of disruptions in the original aircraft routing, crew pairings, and even passenger itineraries.

Answer 42

Schedule recovery

Question 43

This is a proactive approach to disruption management that is planned during timetabling to avoid or minimize the impacts of operational disruptions before they could even happen.

Answer 43

Robust planning