CIVIIL AVIATION INDUSTRY Flashcards
1
Q
sets the standards to ensure the highest level of policies implemented for each country in civil aviation.
A
ICAO
2
Q
needs to comply or follow the given standards/policies by the
ICAO. Those ____ are also the UN member states.
A
193 contracting states
3
Q
In _____ these are the agreements of contracting states or in layman’s term, “meeting of contracting states”. From that meeting, the states tackle the different issues or current trends in civil aviation and it ends up by formulating a
new policy to strengthen the operations of the said industry.
A
ICAO convention
4
Q
Once the formulated policy has been implemented, it will now become the ____ of ICAO. Those ____ are the policies that the
contracting states should follow.
A
Standards and Recommended Practices (SaRPs)
5
Q
agency here in the
country that oversights if the country is following from the prescribed standards by the ICAO.
A
CAAP
6
Q
was derived from the SaRPs of ICAO to make it more appropriate in the country. If all those aviation organizations here in the country complies with ____, it means that the country is also compliant to the standards of ICAO.
A
Philippine Civil Air Regulation or “PCAR”
7
Q
Two types of Airline
A
passenger and air cargo
8
Q
We have 2 types of passenger airliner
A
the legacy and low-cost
9
Q
these are the passenger airlines that offer luxury services such as the airline has its own lounge,
their aircraft has an in-flight entertainment per seat, the passenger has a choice when
choosing what class of seat they want such as economy, business class, first class, and so on and so forth. Some of the examples of legacy airlines are Philippine Airlines, Emirates Airlines, Delta Airlines, British Airways, etc.
A
legacy carriers
10
Q
these are the airlines that offers cheap services such as on the pricing of their tickets. Cebu Pacific Airways, Air Asia, Jetstar, Southwest Airlines,
A
low-cost carriers
11
Q
3 types of Air Cargo
A
air freight, air express, and air mail
12
Q
these are the air cargo airliners that offers airport to airport services. Their service starts in picking up the cargoes from the origin airport and their service ends in dropping off
the cargoes at the destination airport
A
air freight airlines
13
Q
these are the air cargo airliners that offers door-to-door services. Their service starts in picking up the cargo at one location, then dropping off the cargo at the airport, then the cargo will load at the aircraft and it will send at the destination airport, once the cargo lands to destination airport, the cargo will unload from the aircraft, the cargo will send to respective destination and their service will end once the cargo dropped at the respective drop off location.
A
air express
14
Q
can be either air freight and air express depending on the choice of the client and usually this is only a small parcel.
A
Air Mail
15
Q
represents all civil aviation operations and general aerial works. This refers to all aviation organizations related to flying for private citizens and aviation services outside of commercial flying.
A
General Aviation
16
Q
refers to private airlines because they have their own jurisdiction. Meaning, they are not part of commercial airlines that all citizens can use when they want to travel to
other destination.
A
General Aviation
17
Q
They are also called “unscheduled” airlines because, ___ organizations have their own schedule that literally, they decide their own schedule unlike with scheduled airlines, they follow specific schedule on what time their aircraft will depart for given destination.
A
General Aviation
18
Q
different services offered by general aviation organizations.
A
- Agriculture
- Construction
- Photography
- Surveying
- Observation
- patrol, search and rescue
- Aerial advertisement
- Flying schools
- Charter flight
19
Q
Factors of Production
A
- Man
- Machine
- Material
- Methods
- Money
20
Q
___ refers to the people working in an organization.
A
Man
21
Q
___ refers to the equipment used in an organization that the workers are using for them to
continuously operate.
A
Machine
22
Q
_____ refers to the raw material used in the production such as the fuel for the equipment, food
for the workers, and the likes.
A
Materials
23
Q
____ are the steps on what the management will do to efficiently consume all their resources.
A
Methods
24
Q
An airline organization cannot operate if there’s no fund because those resources can only work if there’s allotted budget for each.
A
Money
25
For the ____, it will start with the stockholders or creditors for the airline will gain its capital in
starting their business.
Input
26
are the different departments or offices in an airline such as the flight operations department, marketing, accounting, safety department, human resources,
customer service, etc.
work units
27
refer on how the airline will implement those policies from the
authorities to ensure that they are complying and aiming to serve the highest level of service
to their customers.
systems/ SOPs
28
the steps on how the airline will
operate efficiently and safely because each airline has their own strategy in sustaining the
business.
Methods
29
The revenue which is the total income that they gained from the
passengers and clients due to their service, a partial of it will be subtracted to sustain their resources operationally which is called
operational cost
30
2 types of revenue
The Direct and Indirect revenue
31
All airline revenues from air transportation, it came from the operation of an airline’s fleet. It refers to air transportation revenue.
Direct Revenue
32
All airline revenues from non - air transportation activities such as ground handling services (passenger handling, check in services, baggage handling, load control)
Indirect Revenue
33
types of cost
Direct Operating Cost (DOC) and Indirect Operating Cost (IOC).
34
These are incurred in the operations of the airline’s fleet in terms of scheduled flight. It refers to air transportation operating costs such as flying operations, maintenance, aircraft ownership, fuel and oil, airport taxes.
Direct Operating Cost (DOC)
35
These are the airline costs not directly in air transportation operations. Such as ground handling, sales and marketing, catering, trainings.
Indirect Operating Cost (IOC).
36
enumerate the sources of direct cost in which the airline should sustain to continue their air transportation services.
- Maintenance
- Spare Inventory
- Crew Salary
- Allowances and Benefits
- Fuel/oil
- Aircraft ownership
- insurance
- Airport taxes
37
Aside from the routine checks conducted to an aircraft before and after its flight, every 6 years the aircraft is required to undergo a heavy maintenance check in which all the parts and components of an aircraft are being dismantle to inspect if all the parts are still in good condition and capable to fly safely.
Maintenance
38
for the major airlines who partnered with maintenance companies, this is not so much an issue because the maintenance company will provide their spare parts and the airline will just pay the cost for that. But for the small airliners with a small number of fleets, the spare parts take so much effect when it comes to their operational cost. Since they are just a small airliner, sometimes they cannot afford to buy a brand-new parts from the manufacturer and they settle for a “second hand” parts to lessen the cost.
Spare Inventory
39
this cost really takes so much effect for every airline. We all know that we cannot give minimum or above minimum salary for the air crew. They risk their lives and the life of
passengers are in their hands. The salary of the air crew depends on the airline. For an average, the starting salary for an airline pilot here in the Philippines is Php180,000 per month. For the cabin crew, the average starting salary is Php40,000 per month. Usually in an airline here in the
Philippines, the salary of the cabin crew is not fixed as what we think. Averaging for the starting salary, their base pay is Php18,000 per month and they also have a pay for their “flying hours” in which the pay they earn during their duty. Averaging, the starting pay to the flying hours for the cabin crew is 350 pesos per hour.
Crew Salary
40
the crew also has fringe benefits from the airline for them to motivate more in doing their profession. One common benefit if you work under the airline
and most especially if you are an air crew is having a free flight together with your chosen beneficiaries. Usually for every crew, they can select 4 beneficiaries who will be in the list of the airline and those chosen 4 beneficiaries will also enjoy the benefits which is the free ticket anywhere from the destination of the airline. Sometimes, there are airlines who offers a large amount of discount to the tickets as much as 90% off. Aside from those, the crew also enjoys different insurance such as in health, fitness, food and beverage, car maintenance, etc.
Allowances and benefits
41
this component in direct operational cost is one of the most monitored by the management.
This is due to the fluctuating price of jet fuel in the market. According to IATA, the price of jet fuel today as of March 26, 2021 is at Php3,283 per barrel. 1 oil barrel is equal to 160L - therefore, in an A320, they need 171 oil barrel because the A320 has a capacity of 27,200L. An airline has a fleet of A320 and the flight needs a full tank of jet fuel in just 1 leg of flight, the airline will pay Php561,393 in just 1 leg of flight for the fuel. That’s how much of cost they need to fill in. We always expect an increase in ticket pricing every time there’s an increase of jet fuel price.
Fuel/oil
42
an airline has a number of aircraft fleets and each aircraft might cost around hundred to billion pesos. Some of the newbie airliners will procure a second-hand aircraft from the major airliners and also, some of the airlines renting the aircraft from other airliners. Those practices are legal and it will not compromise the safety of the passengers as long as the aircraft is well maintained. For an average, the lifespan of an aircraft takes about 25-30 years but many airlines
especially those airlines who bought the aircraft as brand new, they retire their aircraft when it
reaches 18 years of service for them to sell it to other airliners. From that, they can add the revenue that they got to procure another brand-new fleet.
Aircraft Ownership
43
for every flight, each passenger has an insurance from the airline and also, the aircraft has also an insurance in case of unforeseen situations. Those insurance of the passengers or what we called “travel protection” and insurance of the aircraft was paid by the airline to an insurance firm. For Cebu Pacific, they partnered with Chubb Insurance and for AirAsia, they partnered with Tune Protect Travel Insurance.
Insurance
44
5 major types of airline insurance
- In-flight
- Ground Risk Hull (non-motion)
- Ground Risk Hull (in-motion)
- Public Liability
- Passenger Liability.
45
this insurance is for the aircraft insurance during in-flight. Out of all insurance, this is the most expensive one because most of the accidents happen during in- flight.
In-flight Insurance
46
this insurance refers for the aircraft during on ground whilenot in motion. Some examples covered by this insurance are vandalism, lightning, damage caused by the animal, and damage from ground support equipment.
Ground Risk Hull (non-motion)
47
this insurance refers for the aircraft during on ground while in motion. This usually occurred while the aircraft is in taxiing motion going to ramp area, to hangar, to remote parking area, to the runaway or while in take-off. Most of the common example covered by this insurance when the aircraft accidentally bumped to the other aircraft or in the ground equipment while taxiing.
Ground Risk Hull (in-motion)
48
this insurance also refers to third party insurance wherein this provides insurance if there are public or property involved from the accident occurred by the aircraft.
Public Liability
49
the coverage of this insurance is for the passengers inside the aircraft who will get injured accidentally and for the passengers who will be involved in the fatality in case of such unforeseen fatal accidents. Final expenses will be provided in case in the event of fatality.
Passenger Liability
50
the airliners also pay their taxes to the airport in where they are operating. Those paid taxes go to the maintenance and development of the airport, to the salary of the personnel who works directly in the airport operator, and to those service providers who works under the airport operator.
Airport taxes
51
collects taxes for every take-off and land of the airline in the airport, usage of ramp area in the airport, usage of gate in the airport. Basically, the ____ collects taxes for the whole stay of an aircraft in the airport.
airport operator
52
Indirect cost
- Trainings
- Ground Handlings
- Sales and Marketing
- Staff Salaries
53
every airline invest for the training of their personnel especially the air crew. One airline here in the Philippines they send their people such as the pilot, cabin crew, ground crew to Malaysia for them to take a series of course that will serve as their training. They have their own training hub and all the simulations, practical, theoretical will conduct from the facility. Some airlines also partner with aviation training companies for them to conduct different trainings for the crew of an airline. Averaging, the cost of training per crew takes as much as hundred thousand pesos.
Trainings
54
Each airline has a partner of service providers that will conduct ground
handling operations for their aircraft and for their passengers during on grounds. For example, the partner of Philippine Airlines in ground services is MacroAsia Corporation, Cebu Pacific are with
1Aviation, Aplus, and Cathay Pacific Catering Services. Meanwhile, the Philippines AirAsia has its
own ground handling services.
Ground Handling
55
these salaries are for the unsung heroes who works directly for the airlines such as in the administrative departments. These personnel don’t make the same as what the air crew is receiving. In fact, most of the time, their starting salary is not that much wherein they are receiving minimum or above minimum depending on the airline and the scope of their tasks. Even though, the airline really budgeting their costs for the staff salary because the administrative staff are also a huge part of the airline.
Staff Salaries
56
the airline will not be successful without marketing to the public. They spend a lot for the advertising about the service they’re offering. This includes if the airline has a new fleet, new offered services, new route, sale of the tickets such Piso Fare, rebranding of an airline. The
airline spends million of pesos just to market their services to different platforms such as in social media, televisions, billboards, joining to different travel expo.
Sales and Marketing
57
Stages of Development Impacting Airline Industry
Stage 1: Regulation
Stage 2: Liberalization
Stage 3: De-Regulation
Stage 4: Re-Regulation
58
The airline is handled/regulated by the government
Stage 1: Regulation
59
The airline is monitored by the government, but the airline can make its own decision
Stage 2: Liberalization
60
The airline is free from the government and the airline was privatized
Stage 3: De-Regulation
61
The airline is back from the government or regulated again by the government
Stage 4: Re-Regulation
62
Philippine Airlines was started
regulated by the government. Later on, they were privatized and in ___, they were back in the hands of the government by GSIS. In ___, they were de-regulate from the government by selling the airline to a private organization.
1977, 1992
63
cooperation between 2 or more airlines in which they have an agreement to strengthen their services and to expand more their operations that will be beneficial to the passengers.
Airline Alliances
64
airline alliances across the industry
- Star Alliances
- oneworld
- Sky team
- Vanilla Alliances
- U-fly Alliances
- Value Alliances
65
Some advantages of having an alliance:
Code sharing to expand route network (sell more flights as your own) – code sharing
agreement is an agreement between 2 airlines that the airline will agree to use its 2-letter
identification code of another airline.
66
Get benefits across the network together with your co-alliances such as:
- Shared airport lounges
- Shared ground handling and check-in
- Shared marketing and sales efforts
- Shared maintenance
67
2 types of an airline besides from the primary 2 types of airline we knew such as passenger and air cargo.
core and diversified airline
68
these are the airlines that mainly focuses in the air transportation services. Their only goal is mainly to transport passengers or cargo from one place to another. Some examples of core airlines are Philippine Airlines, British Airways, Philippines AirAsia, Jet Star. Those sample airlines only focus only in air transportation services.
Core
69
these are the airlines that aside from air transportation, they have also otherservices in which they also cater other airliners. Those “other services” refers to service providers that operates to support the ground services to other airlines.
Diversified
70
Examples of Diversified Airlines
- Lufthansa Airlines - MRO
- Singapore Airlines - MRO
- Cathay Pacific - Catering Service
71
It is the transportation of goods through an air carrier. Basically, it is similar to passenger transportation but of course, air cargo brings goods, merchandise, or commodities.
Air Cargo
72
As early as January 1970, the Boeing 747 jumbo jets began operating as passenger liners. But, as the time goes by, the aircraft proved that aside from a passenger carrier, they can also be efficient when it comes to air cargo provided the capacity to carry containers as big as ___ and to lift over ___ per trip:
8 × 8 × 40 feet, 100 tons
73
This aircraft also known as “super transporter” and has an iconic shape that looks like a ____ whale. The primary function of this aircraft is to transport different components of an aircraft from the manufacturing facility going to assembly facility of Airbus. It transports fuselage sections, wings and tails for Airbus’ A320, wide-body A330 families, along with parts for the A350 XWB.
The Airbus Beluga
74
the counterpart manufacturer also has their own version of transporter called “___”. It is also known as the Boeing 747-400 Large Cargo Freighter. The said aircraft can hold three times the volume of a regular 747-400F freighter. It is a modified Boeing 747-400 that is using in transporting the components of ____ aircraft from the component manufacturers around the world to Boeing assembly facility.
Boeing Dreamlifter
75
Known as the largest aircraft and considered also as the heaviest aircraft in the world. Operated by __ Airlines, a Ukrainian company. It is an air cargo carrier and its mission is to deliver shipments around the world.
Antonov 225 Mriya
76
The first flight of Antonov 225 Mriya was in ___ and the manufacturer said that this will be operational
at least in 2033.
1988
77
The term “Mriya” is a Ukrainian word for __ in English.
“dream” or “inspiration”
78
the first low – cost carrier in the world that operates has a freighter aircraft. It has committed to two ATR 72-500 conversions. Meaning, those 2 ATR 72-500 are passenger carriers before and they decided to convert those 2 into a cargo carrier. They have a plan to convert all eight of its ATR 72-500 passenger aircraft to cargo carrier.
Cebu Pacific
79
the transfer and shipment of goods via an air carrier from airport to airport.
Air freight cargo delivery
80
It refers to courier companies shipping your item from door to door. From a pickup point to a designated address.
Air Express
81
refers to mail transport service branded and sold on the basis of at least one leg of its journey being by air. ___ refers to parcels or envelopes delivered by air. It is either air freight or air express depending on the chosen service of the client.
Air mail
82
Types of Carriers in Air Cargo
* Passenger Airlines
* All Cargo Carriers
* Integrated Express Carriers
* Combination Aircraft Carriers
83
these carriers are shared by the cargo and passengers in one aircraft. In the lower half of the fuselage, it is where the cargo section, in the upper half of the Fuselage, that is where the cabin of the aircraft.
Passenger Airlines
84
____ operate airport to airport service and the airline is
solely for cargo transportation operations and they do not offer passenger transportation.
All-Cargo Carriers
85
these carriers operate door to door service and also, the airline is solely for cargo transportation operations and they do not offer passenger
transportation.
Integrated Express Carriers
86
these carriers that aside from their fleets for passengers, they also have a fleet solely for air cargo operations.
Combination Aircraft Carrier
87
Shipping commodities by air is the most efficient and reliable means of delivery because the speed of an aircraft becomes an advantage when it comes to distribution:
* Perishable
* Shipments that can obsolete anytime
* Required on short notice
* Expensive to handle or store
88
Special Air Freight Services
- Assembly Service
- Distribution Service
- Pick up and Delivery
89
Airlines will consolidate packages from a shipper or group of shippers then it will send to common destination. Other term for this is Cargo Consolidation.
Assembly Service
90
Airlines that fly with cargo is accepting one shipment from a shipper and at destination, separating it into its parts and distributing them to different customers.
Distribution Service
91
Air cargo pickup and delivery service are performed by independent local truckers under contract to act as the carrier’s local agent.
Pick-up and Delivery
92
Factors Affecting Air Cargo Rate
Economic Condition
Directionality
Value of Service
Competition
93
the current condition affects the pricing in air cargo. The law of supply and demand has something to do with the pricing by the airlines. If the demand is high and the supply is low, there’s a huge hike in the pricing of an airline. Since the supply that the aircraft will carry is lessen, the cost of the service will not cover in that particular flight. In result, the airline will increase the rate just to cover the cost of the service.
Economic Condition
94
whereas most passenger travel is round-trip; air cargo flights are all one-way.
Directionality
95
air transportation operations are expensive. Each flight, all the operating cost must cover such as the manpower, fuel of aircraft, taxes, air cargo container, ground
equipment, maintenance, etc.
Value of Service
96
there’s a lot air cargo airliner. Each airline around the world, they offer air cargo services because that’s a form of revenue (why not). Since there’s a lot of
competitors, airline adjust their pricing for them to gain clients.
Competition
