Handout 8 Flashcards
Commercial air transport is subject to strict regulations and control by several governing bodies for various reasons. It could be factors such as air service rights, foreign ownership, and market competition, among others.
Regulation and control
The demand for commercial air transport products usually arises from the need for transport and not for the actual journey. The demand can also be seasonal and frequently changing due to external factors such as the increase in fuel price, civil conflict, terrorist threats, fortuitous events, and the like.
Product is derived from demand
Commercial air products can only be offered once. As soon as the aircraft is airborne, the empty seats cannot be sold again.
Single-use
Ownership, and operations of commercial air transport may be owned by either the private or the public sector, depending on the regulations and control imposed by a country.
Different forms of ownership
Commercial air is dominated by a few airline companies and airline alliances.
Oligopolistic
The commercial air transport industry has different forms of impacts on both the environmental and social aspects of the world.
Social and environmental impacts
which is an essential part of the air transport system, is an area that contains all the infrastructure needed to enable passengers and cargo to be transferred through air transportation.
Airports
These includes the business travelers, tourists, transit passengers, visiting friends, and relatives.
Passengers
These include commercial airlines, tour operators, and general aviation, among others.
The tourism industry and other sectors
These customers are usually airport commercial space tenants, business owners, and airport services providers, among others.
Other stakeholders and interested
is defined as the change of ownership from the public to the private sector,
privatization
is defined as the imposition of commercial objectives on an organization.
commercialization
This is an airline business model that operates only on demand. It doesn’t have a fixed schedule and operates mostly on less-congested secondary airports.
Charter Airline
This usually operates in medium-density routes that utilize regional jets or turboprop aircraft that travel to only regional destinations.
Regional Airline
This airline business model was established to classify airlines that exhibit characteristics from several business models.
Hybrid Airline
This is an airline business mode that is concentrated on low densitv but vita services such as public service organizations, charities, and humanitarian aids.
Specialist Operator
