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Transportation > 8 Introduction in the aviation system > Flashcards

8 Introduction in the aviation system Flashcards

1
Q

Size and structure of the aviation industry

A
  • the airline business is very cyclic. every decade there is one downturn
  • if an airline does not flight they loose huge quality of money
  • there are a lot of impacts that this industry has to adapt (wars, deseases)
  • Oil crisis of 2008 save the airlines
  • after 2013 up and down
  • world airlines do not make money (a bit in lose a bit in profits)
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2
Q

Biggest airline in the world for passengers carried

A
  1. Delta air lines
  2. southwerst arilines
  3. china southern arilines
  4. united airlines
  5. american airlines
  6. ryanair
  7. lufthansa
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3
Q

biggest airline for freight tonne - kilimenters

A
  1. FedEx
  2. USP airline
  3. emirates
  4. cathay pacific airways
  5. Korean air lines
  6. lufthansa
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4
Q

Top higher gorups renevues 2013

A
  • American airlines group
  • lufthansa group
  • united-continental holdings
  • delta air lines
  • Air france-KLM group
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5
Q

Biggest airport in the world - passengers

A
  1. Atlanta
  2. beijing
  3. london
  4. tokyo
  5. chicago
  6. LA
  7. dubai
  8. paris
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6
Q

air traffic growth forecast 2010- 2030

A

Air pacific is going to tiple (is going to be an huge market)

within China 3x

within europe 2x

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7
Q

improtance of air connectivity

A

you cannot have everything produced in all the places

e-g. computer you need peeces from all over the world

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8
Q

Medium tern cargo growth (next 5 years)

A

within asia pacific and between A&P and Eurore is going to growth fast

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9
Q

Facts and figures

A

Strongest growth in Asia (economic book and population growth Total commercial airline revenues: 680 Mrd. USD
Total 58 Mio employees

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10
Q

History: Europe between 1989 and 2004

A

Flow of traffic 1989 and 2004 increase dramatically in Europe

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11
Q

History: main development steps of commercial aviation

1918-1929

A

step/stage: Pioneer stage
technology: WWI, double deckers and related types, only summer flights, weather dependency
economy: stagnation
Regulation: national
Business model: Every airport of even route one airline. Mail and single passenger transport

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12
Q

History: main development steps of commercial aviation

1929-1939

A

Step/stage: bilateral flights ”the technical stage”
Technology: First full metal, al weather multi engine “big airplanes” first real airports (tempelhof)
Economy: Pre-war growth
Regulation: bilateral (flight over border)
Business model: national or regional airlines deserving “stop and go routes

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13
Q

History: main development steps of commercial aviation

1945-1971

A

step/stage: internationalization “the political stage”
technology: long haul airplanes, with pressurized cabins- and Turboprop or Jet engines
Economy: Continuous, rapid growth
Regulation: International (Chicago, treaty & freedom) internal traffic rights governed by national politics

Business model: national flag-carriers increasing continental and intercontinental networks. Intercontinental routes and continental “Raster-Netze”

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14
Q

History: main development steps of commercial aviation

1970-1990

A

step/stage: increasing competition “price and quality” stage

Technology: wide body airplanes extra long haul flights

Economy: Growth

Regulation: Price deregulation (weakening of cartels)

Business model: national hub and spoke Networks. International routes, New pricing schemes. Charter airlines

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15
Q

History: main development steps of commercial aviation

1990-2005

A

step/stage: deregulation

Technology: computer sales and network management

Economy: cycles

Regulation: deregulation, open sky

Business model: continental hubs. Airline alliance. Low cost airlines or anti network model.

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16
Q

History: main development steps of commercial aviation

2005+

A

step/stage: consolidation

technology: seamless customer case. Paperless ticketing. New quality in top classes. New pricing schemes

Economy: cycles

Regulation: antitrust. Immunity for mergers

Business model: Mega airlines. Niche carriers. Low cost. In tour-operator integrated charter airlines

17
Q

main drivers and economies

A

in general income drives passenger demand

  • income depends on economic growth
  • increased income or increased income expectation
  • low prices of airline tickets

=demand of air trave increases

GDP and air traffic are strongly connected

18
Q

Aviation as an engine for the economy

A

Direct: airlines and airports employees

indirect: suppliers
induced: multiplier effects, spending of salary generated by direct and indirect effect

Catalytic effects: tourist that arrive by air in CH and spend loads of money (income generated by catalytic effects of the Aviation industry)

19
Q

Drivers of passenger demand

A

Economic growth

  • GDP growth
  • income growth

–> Perpective leisure tourism

–> perspetive international Business tourism

20
Q

Important facts for the future

A

Emergin middle class in developing counties

saving rates in asia are 2-3 times that of western markets

increase of “most attractive” demographic group

21
Q

New airplanes delivery 2011-2030

A

AP 11500

Europe 7500

North Amercia 7500

LA 2500

ME 2500

22
Q

Why are devoloping coutnry an enormous demand drivers?

A
  • Large popoulation size
  • large distances
  • urbanization and emergence of large middle class
  • high savign rates
  • high economic growth
23
Q

Why are devoloping coutnry an enormous demand drivers?

Example india

A

Today: Air travel demanded by 3% (36mill. people) of population !

2020: Air travel demanded by 6% (72mill.people) of population !

24
Q

Drivers of international business air travel

A

Global company setups

Network building

Service business

Knowledge exchange (knowledge society)

Personal interaction

Customer value

25
Q

Drivers of international leisure air travel

A
  • deregulation - enabler of competition
  • low cost carriers - new markets - low prices
26
Q

Drivers of international leisure air travel: push - pull drivers

A

Push drivers

  • Novel experience
  • escape
  • knowledge seeking
  • fun & excitement
  • rest & relaxation
  • family friends together
  • meet cultures

Pull drivers

  • natural & historic environment
  • cleanliness & safety
  • easy-to-access & economical deal
  • outdoor activities
  • sunny & exotic atmosphere
  • low ticket prices
  • recreation / sports
27
Q

driver of air transport development in general

A

Regulation

technical de elopment

degree of economic growth of the internationalization of an economy

everything is interconnected

28
Q

Most important economices

A

Economics of technology:

  • newer planes do have lower CASK’s
  • Smaller planes are able to fly longer distances.

Economics of scale:

  • bigger planes have lower CASK’s
  • Bigger airports are cheaper per PAX

Economies of scope:

  • bigger companies provide more OD’s with comparability few legs

Economics of density

  • airlines dominating a hub show comparably higher market shares
29
Q

CASK

A

CASK: Cost of available Seat-km

30
Q

RASK

A

RASK: Revenues per available seat km

31
Q

ASK

A

ASK: available seat km

32
Q

RPK

A

RPK: Revenues passenger Km

33
Q

SLF

A

SLF: Seat load factor (high SLF not mean that you are successful)

34
Q

Aviation system

A
35
Q

arline key figures

A

Transportation (11 decks)

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