Air Transportation Industry (copy)

01 Handout 1. Vocabulary flashcards covering key terms, classifications, flight types, industry characteristics, and current issues in the air transportation sector.

Air Transportation

- The movement of passengers and freight by aircraft;

a vital, fast-growing component of global transport infrastructure.

Airline Industry

- Sector that provides air transport services for passengers

or freight, including commercial, general, and military operations.

Commercial Airlines

- Air carriers that operate scheduled flights

with pre-booked tickets for paying passengers or cargo.

General Aviation

- All civil flights other than scheduled commercial service,

including business, personal, executive, and flight-training flights.

Military Airlines

- Government-operated air services used for

troop transport, logistics, or warfare.

Local / Domestic Carrier

- Airline whose services are confined within

a single country’s borders (e.g., PAL Express, Cebgo).

International / Foreign Carrier

- Airline that operates flights between two or more

countries (e.g., Delta, Cathay Pacific).

Major Airline

- Large carrier generating over US$1 billion in annual revenue,

flying long-haul and international routes.

National Airline

- Carrier operating within national boundaries with

annual revenue between US$100 million and US$1 billion.

Regional Airline

- Airline that maintains domestic schedules on short-

and long-haul routes, subdivided by size and revenue.

Large Regional

Regional airline earning US$20–100 million yearly and

using aircraft with more than 60 seats.

Medium Regional

Regional airline with under US$20 million revenue,

typically operating 40–60-seat aircraft.

Small Regional (Commuter Airline)

Regional carrier flying aircraft with

fewer than 40 seats on short routes.

Scheduled Airline

Carrier that follows published timetables and regular routes.

Non-scheduled (Charter) Airline

Carrier that flies on demand without fixed schedules,

offering flexible airports, times, and loads.

Airline Route

Designated flight path between two airports at specified minimum altitudes.

Flight Length

Distance category of a flight from origin to destination: short, medium, long, or ultra-long haul.

Short-haul Flight

- Air journey lasting under 3–4 hours.

Medium-haul Flight

- Air journey lasting about 4–8 hours.

Long-haul Flight

- Air journey taking up to 13 hours.

Ultra-long-haul Flight

- Air journey lasting more than 13 hours.

Nonstop Flight

- Flight that travels from origin to destination with no intermediate stops on the same aircraft.

Direct Flight

- Flight that keeps the same flight number and aircraft but makes at least one stop en route.

Connecting Flight

- Journey requiring passengers to change planes and flight numbers to reach the final destination.

Commodity Seat

- Perception that economy seats across airlines are essentially identical, leading to price-based choices.

Perishable Airline Product

- Unfilled seats lose all value once the flight departs, unlike goods that can be stored.

Fixed Operating Costs

- Expenses that remain constant for a flight once the schedule is set, regardless of load factor.

Harmonious Labor Relations

- Crucial element for airline success discontented employee groups can disrupt operations.

Total Operating Cost

- Sum of all expenses required to operate flights, heavily influenced by fuel and labor.

Fuel Cost

- Typically 14–16 % of an airline’s operating expenses; often hedged through long-term contracts.

Labor Cost

- Largest single expense category (~40 %) covering wages, benefits, and crew expenses.

Airport Capacity

- Ability of an airport’s infrastructure to handle projected traffic; a growing constraint as demand rises.

Health, Safety & Security

- Measures to prevent terrorism and disease transmission in air travel (e.g., SARS, Ebola, COVID-19).

COVID-19 Impact on Aviation

- 2020 crisis causing passenger demand to plunge 75.6 % internationally and 48.8 % domestically.

Cargo Missions

- Flights repurposed to transport medical supplies and vaccines, especially during the pandemic.

What are the subgroups of Regional Airlines?

- Large Regionals, Medium Regionals, Small Regionals

What are the three airline categories based on size?

- Major Airlines, National Airlines, Regional Airlines.

What are the two major classifications of airlines?

• Local/Domestic Carriers

• International/Foreign Carriers

What are the three main components of the airline industry?

- Commercial

- General

- Military aviation.

What are examples of International/Foreign Carriers?

• American Airlines

• Delta Airlines

• All Nippon Airways

• Cathay Pacific

• Philippine Airlines

What are examples of Local/Domestic Carriers?

• PAL Express

• Cebgo

What opportunities lie ahead for the air transportation industry?

- Technology adoption, training, and sustainability offer hope for recovery.

What is the predicted increase in air travel demand by 2035?

- 50% increase.

What is the impact of fuel and labor on airline operating costs?

Fuel = 14-16%

Labor = ~40% of total cost.

What are the main issues in the airline industry?

• Total Operating Cost Airport

• Capacity Health Safety and Security

What are the essential characteristics of the airline industry?

- Demand based on passengers' wants/needs
- Coach seats = commodity Harmonious labor relations are critical
- Fully perishable product Fixed operation cost after scheduling

What is a Connecting Flight?

- A flight where a passenger must change planes with different flight numbers to reach their destination.

What is a Direct Flight?

- A direct flight has one flight number, may stop for refueling, but doesn’t require changing planes or picking up new passengers.

What is a Nonstop Flight?

- A flight from Point A to Point B with no stops or plane changes.

What are the four flight length categories?

- Short-haul (3-4 hrs)

- Medium-haul (4-8 hrs)

- Long-haul (up to 13 hrs)

- Ultra-long-haul (beyond 13 hrs)