Midterm

Question 0

Stages of airline industry development

Answer 0

Regulation: lots of government control, guaranteed profit
Liberalization: less gov control
Deregulation: carriers choose routes and fees
Re regulation: government regains control

Question 1

what was the civil aeronautics act?

Answer 1

-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

Question 2

Top three costs for airlines

Answer 2

Fuel: 40%
Labor
Maintenance

Question 3

Factors affecting sales

Answer 3

Economic growth
Inflation
Fleet capacity
Replacement aircraft
Airline profitability 
Cyclical industry
Future growth

Question 4

Formative period

Answer 4

• Air mail

- Joint venture between war department and post office

Question 5

What was the contract mail service and when was it implemented?

Answer 5

Beginnings of airlines that would become
- American
-northwest
- United
In 1925 by the kelly act

Question 6

Airmail act

Answer 6

Privatized airmail and airlines

1925

Question 7

Federal regulation

Answer 7

Stabilize industry
Improve air safety
Reduce cash subsidies

Question 8

Air commerce act

Answer 8

Commercial aviation development
Began early airlines
1926

Question 9

6 functions of the CAA?

Answer 9

Regulate passenger fares and rates
Granted routes for domestic flights
Establish air mail rates
Approval required for air transport related 
- mergers, acquisitions, consolidations

Question 10

Federal aviation act

Answer 10

Establish FAA
CAB retained authority over
-route allocation, accident investigation, fares
1958

Question 11

Deregulation act

Answer 11

Rapid expansion
New entrants
Hob and spoke route system
Merger, acquisition, and integration 
1978

Question 12

Know the major mergers (6)

Answer 12

Delta: northwest
Pinnacle: mesaba and colgan
Trans states: compass
United: continental
ASA: express jet 
Southwest: AirTran

Question 13

DOT

Answer 13

Administration of nations transportation programs
Stimulate tech advances in transportation
Develop and recommend policies to gov

Question 14

FAA

Answer 14

Promote aviation safety while ensuring efficient use of airspace

Question 15

NTSB

Answer 15

Independent gov agency
Determine cause of accidents
1967

Question 16

TSA

Answer 16

Created in 2001 after the fucking Muslims attacked us

Security screening for passenger air transportation

Question 17

Trunk carriers

Answer 17

Airlines certified to fly medium to long haul routes

Question 18

Supplemental carriers

Answer 18

Non scheduled air carriers

Question 19

Local service carriers

Answer 19

Locally centered service, feed to the trunk carriers

Question 20

CAB issues before deregulation

Answer 20

Deteriorating financial condition of the airlines
Rising fuel costs
Denied new route applications and new carrier applications

Question 21

Innovations after deregulation

Answer 21

Hub and spoke system
Frequent flyer programs
Reservations systems

Question 22

Annual revenue of Major air carriers

Answer 22

> $1 billion annual revenue

Question 23

Revenue of national air carriers

Answer 23

$100 million to $1 billion in annual revenue

Question 24

Annual revenue of regional air carriers

Answer 24

< $100 million in annual revenue

Question 25

Percent of air ports serviced by only regional carriers

Answer 25

68%

Question 26

Airline certification:

DOT requires a section 401 certificate

Answer 26

Fitness determination
Public confidence and messily determination
Continued fitness reviews

Question 27

All air cargo certificates are under what section

Answer 27

Section 418

Question 28

Commuter air carrier fitness determinations section?

Answer 28

Section 419

Question 29

Year of DOT

Answer 29

1967