Airline Operations Management – Prelim Review

This set of vocabulary flashcards covers key terms, events, functional areas, goals, historical milestones, regulatory concepts, economic factors, and modern trends introduced in the Airline Operations Management prelim notes. Use them to reinforce foundational knowledge before the exam.

Airline Operations Management

Systematic planning, coordination, and control of all activities in day-to-day airline running to ensure safe, efficient, timely, and cost-effective air transport.

Flight Operations Department

Handles pilot schedules, aircraft routing, and weather analysis for each flight.

Crew Management

Assigns pilots and cabin crew while respecting duty-time limits and legal restrictions.

Maintenance & Engineering

Ensures aircraft airworthiness through scheduled and unscheduled maintenance.

Flight Dispatch

Plans flight routes, calculates fuel loads, and monitors flights in real time.

Ground Operations

Oversees baggage, check-in, boarding, fueling, and catering at airports.

Customer Service (Airline)

Manages reservations, in-flight service, passenger support, and post-flight care.

Operations Control Center (OCC)

Central hub that coordinates and monitors airline-wide operations for real-time decisions.

Ensure Safety (Goal)

Comply with aviation laws and safety standards such as ICAO, FAA, and CAAP rules.

Optimize Efficiency (Goal)

Maximize aircraft utilization and minimize delays or disruptions.

Customer Satisfaction (Goal)

Deliver reliable, comfortable, and on-time travel experiences to passengers.

Profitability (Goal)

Balance operational costs with revenues from tickets, cargo, and ancillary services.

Fleet Management

Strategic decisions on aircraft types, purchases, leasing, and retirements.

Network Planning

Selecting routes, destinations, and flight frequency to create an optimal schedule.

Revenue Management

Dynamic pricing and capacity control to maximize revenue per flight.

Regulatory Compliance

Adhering to aviation authority guidelines, crew training standards, and safety audits.

Fuel Hedging

Financial strategy that locks in fuel prices to reduce exposure to price volatility.

Hub-and-Spoke Network

Route system where flights connect through central hub airports for transfers.

Great Depression (1929–late 1930s)

Severe global downturn that sharply reduced passenger demand; airlines survived via government airmail contracts.

Air Mail Act of 1930

U.S. legislation providing airmail contracts that financially sustained early airlines during the Great Depression.

Great Recession (2007–2009)

Global downturn causing sharp declines in air travel, leading to cost cutting, fuel hedging, and mergers.

Delta–Northwest Merger (2008)

Major U.S. airline merger aimed at surviving the Great Recession through consolidation.

Wright Brothers' Flight (1903)

First powered, controlled flight—start of modern aviation.

St. Petersburg–Tampa Airboat Line (1914)

First scheduled fixed-wing passenger service, using a Benoist XIV seaplane.

KLM (Founded 1919)

World’s oldest airline still operating under its original name; Dutch flag carrier.

Jet Age

Era beginning in the 1960s when jet aircraft like the Boeing 707 revolutionized speed and range.

U.S. Airline Deregulation Act (1978)

Law removing government control over fares, routes, and market entry, spurring competition.

Low-Cost Carrier (LCC)

Airline model offering low fares through simplified service and cost savings (e.g., Southwest, Ryanair).

Ultra-Low-Cost Carrier (ULCC)

Airline offering rock-bottom fares with fees for nearly all extras (e.g., Spirit Airlines).

Full-Service Carrier (FSC)

Airline providing multiple cabin classes, lounges, and integrated services (e.g., Emirates).

Yield Management

Pricing system that adjusts seat prices based on demand forecasts to maximize revenue.

SABRE

Early computerized reservation system widely used for booking and operational control.

Sustainable Aviation Fuel (SAF)

Lower-carbon alternative jet fuel aimed at reducing aviation’s environmental impact.

CORSIA

ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation to curb CO₂ growth.

EU Emissions Trading System (EU ETS)

Cap-and-trade program that includes aviation emissions on flights within the European Economic Area.

ICAO

International Civil Aviation Organization—UN agency that sets global aviation standards.

FAA

Federal Aviation Administration—U.S. body regulating civil aviation safety and operations.

CAAP

Civil Aviation Authority of the Philippines—national aviation regulator.

Operations Control

Real-time monitoring and intervention to deal with irregularities like weather or mechanical issues.

Weather Disruptions

Operational challenge including typhoons, thunderstorms, fog, and winter storms that cause delays.

Airspace Congestion

Overcrowding of flight paths and airports leading to slot restrictions and delays.

Fuel Cost Volatility

Rapid, unpredictable changes in jet fuel prices that impact airline profitability.

Pilot Shortage

Global lack of qualified pilots driven by retirements and reduced training inflow.

Alliance

Formal cooperation among airlines (e.g., Star Alliance) to expand networks and coordinate schedules.

Code-Sharing

Agreement allowing airlines to sell seats on each other’s flights under their own flight numbers.

Air Cargo

Transport of freight by air, accounting for 35% of world trade value despite small volume share.

Revenue Passenger Kilometer (RPK)

One paying passenger flown one kilometer—key measure of airline traffic.

Revenue Passenger Mile (RPM)

U.S. equivalent of RPK—one paying passenger flown one mile.

Marginal Cost (Airline)

Incremental cost of carrying one additional passenger when the plane is not full, usually very low.

Perishable Product (Airline Seat)

Seat inventory that expires at departure; unsold seats cannot be stored or sold later.

Open Skies Agreement

Treaty allowing airlines free market access between signatory countries (e.g., U.S.–EU Open Skies 2008).

Visiting Friends and Relatives (VFR) Travel

Passenger segment flying primarily to see family or friends.

Globalization (Driver of Demand)

Increasing economic integration that boosts international business and air travel.

Demographics (Driver of Demand)

Population growth, urbanization, and rising middle class that enlarge air travel markets.

Liberalization

Removal of regulatory barriers allowing airlines greater market freedom and competition.

Factors of Production (Airlines)

Inputs such as fuel, labor, and infrastructure that determine supply and costs.

Fuel Efficiency Improvements

Technological advances that reduce fuel burn per seat, lowering costs and emissions.

SARS (2002)

Epidemic that, combined with 9/11, temporarily depressed global air traffic early 2000s.

COVID-19 Pandemic

2020 crisis that slashed traffic by up to 94%, forcing safety protocols and operational resets.

Hybrid Work

Post-COVID trend combining office and remote work, reducing some business travel demand.

Predictive Maintenance

Using sensors and data analytics to anticipate and prevent aircraft component failures.

Automated Bag Drop

Self-service technology enabling passengers to check luggage without counter staff.

Biometric Boarding

Use of facial recognition or fingerprints for identity verification at gates.

Carbon Offset Program

Scheme through which passengers or airlines fund projects to compensate for CO₂ emissions.

Aircraft Utilization

Amount of flying time per day an aircraft achieves; higher utilization improves efficiency.

Slot

Authorized take-off or landing time at a constrained airport; valuable operational asset.

Hub Airport Capacity

Maximum flights an airport can handle; constraints can limit airline growth.

Airbus A380

Super-jumbo designed to serve high-density routes between mega-cities.

Boeing 787 Dreamliner

Composite long-range aircraft emphasizing fuel efficiency and passenger comfort.

Single-Aircraft-Type Strategy

Operating only one model (e.g., Southwest’s Boeing 737s) to simplify maintenance and training.

Cost-Cutting Measures

Actions like grounding planes, reducing staff, or renegotiating leases to lower expenses.

Merger (Airline)

Combining two airlines into one entity to achieve economies of scale and network synergy.

Dynamic Pricing

Real-time adjustment of fares based on demand, booking pace, and competitive factors.

Forecasting Air Travel Demand

Predicting passenger volumes to guide fleet planning, budgeting, and airport development.

Forward Bloc-to-Bloc Agreement

Aviation treaty between two multi-nation groups (e.g., ASEAN–EU comprehensive air agreement).

Sustainability (Airline Focus)

Long-term commitment to reduce environmental impact, increase fuel efficiency, and support green initiatives.

Tourism Contribution

Aviation’s role in facilitating 58% of international tourist arrivals worldwide.

Economic Multiplier (Aviation)

Ripple effect where each aviation job supports multiple jobs in tourism and supply chains.

Cargo-Dedicated Airline

Carrier specializing in freight transport, e.g., FedEx or Qatar Airways Cargo.

Fuel Price Roller Coaster

Pattern of sharp rises and falls in jet fuel costs since the early 2000s.

Diaspora Travel

Trips made by migrant populations returning to or receiving visits from their home country.

Operations Resilience

Airline’s capacity to maintain service through economic shocks, pandemics, or geopolitical events.

Economic Regulation (Pre-1978)

Government control of U.S. airline fares, routes, and capacity via the Civil Aeronautics Board.

Civil Aeronautics Board (CAB)

Defunct U.S. agency that regulated airlines economically before deregulation.

Aviation Liberalization in ASEAN

Gradual easing of restrictions among Southeast Asian nations to create a single aviation market.

Airline Bankruptcy

Legal process allowing financially insolvent airlines to restructure or liquidate.