[FUNAV] M1 (P5): Air Transportation (Merger Mania - Deregulating Air Traffic Control)

Merger Mania

A number of airlines merged and/or purchased other competitors

Braniff Airlines

[Merger Mania]

On a single day in December 1978, ________, the most aggressive former trunk carrier in picking up dormant route authorities, inaugurated service to 16 new cities

March 1985

[Merger Mania]

Merger activity remained fairly dormant for the next couple of years, reappearing again in ______.

consolidation movement

[Merger Mania]

The _________ that began in 1979 has had a profound impact on the structure of the commercial airlines industry

👍

[Merger Mania]

In the late 1990s and early 2000s, new types of air carriers emerged as a result of cost-cutting strategies by the major airlines, expansion of niche markets, and competitive forces.

Regional / Commuter Airlines

Spurred by deregulation, many _________ entered the market in the early 1980s

1985

[Regional / Commuter Airlines]

In ____, there was a dramatic growth in the number of code-sharing agreements between regional airlines and the major carriers

Continental Express, United Express, American Eagle, and Northwest Airlink

[Regional / Commuter Airlines]

Commuter airliners bearing such names as: (4)

124

[Regional / Commuter Airlines]

From a high of 246 carriers in 1981, the number of regional/commuter operators declined to ___ in 1995

134.7

[Regional / Commuter Airlines]

By 2004, there were 74 such operators in business carrying a total of ______ million passengers

Air Wisconsin, Republic, Shuttle Ame

[Regional / Commuter Airlines]

Delta Connection or United Express are name brands only, the flights are operated by a variety of regional airlines, such as: (3)

757 & 767

[New-Generation Airliners]

To hold its market share in face of competition by Airbus, Boeing introduced two new airliners, the ____ and the ____.

ETOPS certification

[New-Generation Airliners]

The advent of _______ enabled extended twin-engine operations for transatlantic/transpacific flights

737

[New-Generation Airliners]

Meanwhile, the ___ became the most-built jetliner in 1987, surpassing the 727’s previous record of 1,832

747-400

[New-Generation Airliners]

The _____ appeared in 1988 with an extended upper deck, bringing the total seating up to 660 in the all-tourist configuration

Boeing and Airbus

[New-Generation Airliners]

By 2011, _____ and _____ continued to remain the largest aircraft manufacturers in the world constantly competing to out perform the other in terms of sales

9/11

[September 11, 2001— A New Era in Aviation]

Because of the events of ___, security at airports, as well as security at high-risk events outside aviation, was stepped up significantly. Since the events of this, a number of airlines around the world have declared bankruptcy with some closing their doors forever

September 11, 2001 (9/11)

The new era in aviation.

October 2002

[September 11, 2001— A New Era in Aviation]

It was estimated in _____ that airlines in the United States would lose a total of $8 billion by the end of the fourth quarter for the same year

The Aircraft Owners and Pilots Association (AOPA)

[General Aviation]

_______ represents the interests of general aviation pilots and had 22,000 members by the mid-1940s and 387,000 members as of 2002

Air Commerce Act in 1926

[General Aviation]

Fixed-base operators established after the passage of the _________ became the first “general aviation” pioneers, engaged in

• Flight instruction

• Sale of aircraft and fuel

• Maintenance work

• Flight instruction

• Sale of aircraft and fuel

• Maintenance work

[General Aviation]

Fixed-base operators established after the passage of the Air Commerce Act in 1926 became the first “general aviation” pioneers, engaged in: (3)

Business Aviation

[General Aviation]

The business jet and turboprop were introduced to corporate users, establishing “_________.”

95,000

[General Aviation]

By 1965, the general aviation aircraft fleet had grown to ______ airplanes, and production that year totaled 11,852 new aircraft

General Aviation Manufacturers Association (GAMA)

[General Aviation]

In 1970, the _____________ as lobbying organization for GA aircraft manufacturers

45 percent

[General Aviation]

Between 1978 and 1994, flying hours declined by about _____ percent, and the active general aviation fleet, after reaching a peak of 220,943 aircraft in 1984, fell to 170,660 by 1994

Light Sport Aircraft (LSA)

The manufacturing of _________, has become a popular trend in recent years

General Aviation

Affordability of _______ has remained one of the main concerns

the Gulfstream

[Business Aviation]

In 1957, the first made-for-business aviation turbine-powered airplane was developed, the _______.

NetJets

[Business Aviation]

The advent of fractional ownership or rental of business jets has changed the business aviation landscape dramatically

• Companies are reducing corporate fleet and instead make use of ______ and similar service providers

The Federal Aviation Administration

is both regulating and operating air traffic control in the United States. Critics say that this could create a conflict of interest and are calling for reforms to establish an independent, government-owned ATC organization, similar to Nav Canada.

For ATC reform: Modernizes technology, improves efficiency, reduces delays, and enhances safety.
Against ATC reform: High costs, potential disruption to current procedures, and labor risks.
Comparison to 1978: Like deregulation, it balances efficiency, safety, and service while addressing cost and workforce concerns.

Looking back to the concerns mentioned prior to deregulation in 1978, gather arguments for and against an ATC reform. Is this situation at all comparable to 1978?