Airline Industry Flashcards
This covers wide range of business. They are what offers air transport services for customer. The services are provided for both travelers and cargo and are most offered via jets.
Airline Industry
This refers to companies that offer air transport services to customers
Airline Industry
This includes all aviation-related operations
Aviation Industry
What are the four types of airline business models?
a. Full-Service Carrier (FSC) and Legacy Carrier
b. Low-Cost Carrier (LCC)
c. Charter Airline
d. Cargo Airline
What is the other term for Legacy carriers?
Heavy-weights
This is an airline that had been established interstate routes before the beginning of route liberalization, Air Deregulation Act of 1978
Legacy Airline
These are airlines that operate with a business model that includes offering a range of pre-flight and on-board services with the price of the ticket
Full-Service Carrier
True or False? FSCs can be current or former-state owned flag carriers, or privatized.
True
State some of the amenities or “frills” included in a FSC ticket
- Options for different seating classes
- Access to lounges
- Baggage Allowance
- In-Flight food
- Entertainment
- Benefit of flying into major airports
- “Comfort”, among others
Low-Cost Carrier is also commonly known as?
Low-cost airline, discount airline, low-frills, no-frills airlines, ultra-low-cost carrier etc.
They were formed post-deregulation and offers short-haul domestic and international flights
Low-Cost Carrier (LCC)
Enumerate the differences of LCC and FSC
a. Single-seating class, only economy available
b. No baggage allowance included
c. No in-flight food (available and paid-on board)
d. LCC usually will fly to secondary airports
e. Usually will have smaller fleet
This is known as “holiday carriers”, they offer un-scheduled air transportation services.
Charter Airlines
This is known as “air freight carriers”, which primarily focuses on the air transportation of cargo.
Cargo Airlines
This type of cargo carrier are subsidiaries of airlines, shipping to and from airport only
Traditional Cargo Carriers
This includes non-flight elements such as having own holding facility and a “door-to-door” service.
Integrated Cargo Carriers
This refers to a cooperative partnership among airlines
Airline Alliances
What are some of the factors or assets that airline alliances share?
Flights, Operational costs, and Frequent Flyer Programs (FFPs)
What are the three major FSC airline alliances? State them in order
- Star Alliance
- Oneworld
- SkyTeam
- Vanilla Alliance (kind of small)
Give some advantages of an Airline Alliance
a. Will offer a wider range of network through code-sharing
b. As a customer, you can earn miles/ points on FFPs of member airlines
c. Member Airlines will have shared benefits and services
d. Alliances are strong marketing tools, which also improves an airline’s image among others
Give some disadvantages of an Airline Alliance
a. Joining an alliance may be restricted by regulations, or alliance requirements
b. What the member does, other members do and member airlines need to abide by the alliance’s regulations
c. Competition on a certain route can be erased by the alliance can gain monopoly, thereby raising prices
d. Member airlines may not get along
Give the three requirements of an Airline alliance
- Each alliance has their own requirements, this is just a general POV
- A long preparation is needed by the airline. They must demonstrate or show that their network, safety records, quality, passenger services, etc. are up to par to get them in an alliance
- However, not all airlines are interested in joining
Who are the founding members of SkyTeam? and how many airline members are there?
Founding members: Aeromexico, Air France, Delta, Air Lines and Korean Air
Number of airline members: 20 airlines
