Midterm Flashcards
(30 cards)
Stages of airline industry development
Regulation: lots of government control, guaranteed profit
Liberalization: less gov control
Deregulation: carriers choose routes and fees
Re regulation: government regains control
what was the civil aeronautics act?
-define and establish various classifications within aviation
-air carrier: “common carrier for compensation and hire”
Established civil aeronautics authority
Created civil aeronautics authority (caa)
1938
Top three costs for airlines
Fuel: 40%
Labor
Maintenance
Factors affecting sales
Economic growth Inflation Fleet capacity Replacement aircraft Airline profitability Cyclical industry Future growth
Formative period
- Air mail
- Joint venture between war department and post office
What was the contract mail service and when was it implemented?
Beginnings of airlines that would become - American -northwest - United In 1925 by the kelly act
Airmail act
Privatized airmail and airlines
1925
Federal regulation
Stabilize industry
Improve air safety
Reduce cash subsidies
Air commerce act
Commercial aviation development
Began early airlines
1926
6 functions of the CAA?
Regulate passenger fares and rates Granted routes for domestic flights Establish air mail rates Approval required for air transport related - mergers, acquisitions, consolidations
Federal aviation act
Establish FAA
CAB retained authority over
-route allocation, accident investigation, fares
1958
Deregulation act
Rapid expansion New entrants Hob and spoke route system Merger, acquisition, and integration 1978
Know the major mergers (6)
Delta: northwest Pinnacle: mesaba and colgan Trans states: compass United: continental ASA: express jet Southwest: AirTran
DOT
Administration of nations transportation programs
Stimulate tech advances in transportation
Develop and recommend policies to gov
FAA
Promote aviation safety while ensuring efficient use of airspace
NTSB
Independent gov agency
Determine cause of accidents
1967
TSA
Created in 2001 after the fucking Muslims attacked us
Security screening for passenger air transportation
Trunk carriers
Airlines certified to fly medium to long haul routes
Supplemental carriers
Non scheduled air carriers
Local service carriers
Locally centered service, feed to the trunk carriers
CAB issues before deregulation
Deteriorating financial condition of the airlines
Rising fuel costs
Denied new route applications and new carrier applications
Innovations after deregulation
Hub and spoke system
Frequent flyer programs
Reservations systems
Annual revenue of Major air carriers
> $1 billion annual revenue
Revenue of national air carriers
$100 million to $1 billion in annual revenue
