Airlines Today

Vocabulary flashcards covering key terms and concepts related to airlines today, including product choices, passenger types, competitive strategies, and different types of air carriers.

Marketing Concept

A business approach to determine customer needs, satisfy them, and yield a profit.

Concorde (Product Choice Example)

An example of an airline product that did not successfully satisfy customer needs at a profitable price.

Price (Airline Product Feature)

The most important product feature for leisure travelers.

Schedule (Airline Product Feature)

The most important product feature for business travelers.

Business Passengers

Passengers traveling for work, meetings, and conferences; often less price-sensitive and willing to pay for amenities.

Leisure Passengers

Passengers traveling for personal reasons, holidays, or weekends; typically more price-conscious and less flexible.

Derived Demand (Air Travel)

The principle that air travel demand is derived from other activities, such as business or leisure needs.

Market Segmentation (Air Travel)

Categorizing air travelers by specific reasons or groups, such as religious, funeral, educational, military, or charter groups.

Cost Leadership (Generic Strategy)

A competitive strategy focused on achieving the lowest operational costs to offer low ticket prices.

Differentiation (Generic Strategy)

A competitive strategy focused on offering a unique product or service to specific groups, allowing for premium pricing.

Focus (Niche) Strategy (Generic Strategy)

A competitive strategy concentrated on serving one underserved market segment, such as all-business class routes or vacation charters.

Airline Industry (Service Business)

An industry where production and consumption of the product (air travel) occur simultaneously, and a 'bad product' cannot be easily refunded or exchanged.

Product Differentiation (Airlines)

Airlines' attempts to distinguish their offerings, such as luxury, mid-range, low-cost, different cabin classes, meal services, or in-flight entertainment.

Unbundling (Airlines)

The practice of separating services like baggage fees, food, and other amenities from the base ticket price, allowing for 'a la carte' pricing.

Comprehensive Network Carriers (CNC)

Airlines with a broad product scope, offering multiple classes, hundreds of destinations, global hubs, and participating in airline alliances (e.g., Delta, American).

Low Cost Carriers (LCC)

Airlines characterized by a simple business model focusing on low costs, simple products, point-to-point routes, high frequency, and quick turns (e.g., Southwest, Ryanair).

Hybrid Airline

Airlines that combine elements of both Comprehensive Network Carriers and Low Cost Carriers, potentially offering multiple seat classes while maintaining some cost efficiencies (e.g., Alaska, JetBlue).

Regional Carrier

Airlines closely tied to CNCs, acting as 'network extenders' by operating smaller aircraft to small and moderate markets under separate certificates with lower cost structures (e.g., Skywest).

Focus Carrier (Airline Type)

Smaller airlines that serve a niche market, such as vacation charters or specialized all-business class routes (e.g., Sun Country).

Cargo Airlines

Airlines specializing in the transport of freight rather than passengers, characterized by a focus on timeliness, diverse routing, and special handling requirements.

Global Hubs

Primary airports for Comprehensive Network Carriers that serve as central connection points for numerous routes and destinations.

Airline Alliances

Partnerships between multiple airlines to share resources such as routes, schedules, and ticketing, enhancing global reach and connectivity.

Star Alliance

One of the three main global airline alliances, comprising 26 members including United Airlines.

Oneworld

One of the three main global airline alliances, comprising 14 members including American Airlines.

SkyTeam

One of the three main global airline alliances, comprising 19 members including Delta Airlines.

Network Extenders (Regional Airlines)

The role of regional airlines in providing access for larger Comprehensive Network Carriers to smaller and moderate markets, often referred to as 'thin routes'.

Scope Clauses

Contractual limitations often found in agreements with regional airlines that can restrict their fleet size, aircraft type, or operational scope.

ULCC (Ultra Low Cost Carrier)

An evolution of LCCs, characterized by an even more aggressive unbundling strategy and 'a la carte' pricing for virtually all services.

Point-to-Point Model (LCCs)

An operational strategy common among Low Cost Carriers involving direct flights between two cities, often with high frequency and quick aircraft turnaround times.

Combination Carrier (Cargo)

Passenger airlines that also carry cargo, typically generating 5-10% of their revenue from freight operations.

Integrated Carrier (Cargo)

Cargo airlines that provide comprehensive door-to-door service, including ground transportation and advanced tracking systems (e.g., FedEx, UPS).

All Cargo Carrier

Airlines that operate exclusively freighter aircraft for cargo transport, often on contract to major carriers (e.g., Atlas, Polar).

ACMI (Aircraft, Crew, Maintenance, Insurance) Lease

A type of lease or contract common in cargo aviation where the lessor provides an aircraft, crew, maintenance, and insurance to the lessee.