7 Transport modes II (Air transport)

Air Transport Overview

  • Air transportation has significantly transformed society globally, affecting local and international scales.

  • Key transformations include faster and more interconnected economic and social activities.

Characteristics of Air Transportation

  • Definition: Movement of passengers and freight by any vehicle capable of controlled flight.

    • Perishable Service: Once scheduled, cannot be stored; service time is critical.

    • Homogeneous Products: Most services and products are similar regardless of provider.

    • Derived Demand: Demand for air transport arises from the need for goods or services, not for air transport itself.

    • Convenience: Ideal for long and medium distances.

    • Speed and Reliability: Faster than other modes of transport, ensuring timely delivery.

    • Safety: Generally deemed safe and secure transport option.

Brief History of Air Transportation

  • 1903: First powered flight by the Wright Brothers.

  • 1939: Launch of the first transatlantic passenger service by PanAm.

  • 1952: Introduction of the first passenger jet, the DeHavilland Comet.

  • 1970: Boeing 747, the first jumbo jet, enters service.

  • 1976: Launch of the Concorde, the first supersonic passenger jet.

  • 2007: Introduction of Airbus A380, the largest passenger aircraft.

  • 2011: First all-composite material jet, the Boeing 787.

Regulatory Phases in Air Transport

  • Pre-1910: Limited regulation, early developments.

  • 1910-1918: Military and civil aviation developments.

  • 1920s: Gentle support for innovation and importance of military services.

  • 1930s: Growth in internationalism, visibility of military importance.

  • Late 1940s - 1970s: Economic regulations established.

  • 1970s Onward: Introduction of deregulation; focus on competition, infrastructure, and environmental regulations.

World Air Transport Network

  • Emergence of hub-and-spoke systems post-deregulation.

  • Airlines dominate hubs, modify travel to connect spokes efficiently.

  • This often leads to oligopolistic market conditions, raising airfares for specific segments.

Air Transport as a Major Industry

  • Volume of Passengers: 4.7 billion passengers in 2019.

  • Economic Impact: $2.7 trillion in global economic activity driven by air transport.

  • Trade Contribution: Air transport accounts for approximately 35% by value of global trade.

  • Job Creation: Aviation supports approximately 65.5 million jobs worldwide.

  • Freight Carried: 61 million tonnes of freight handled in 2019.

Air Transportation Growth Trends

  • Significant growth observed between 1950-2021 in both passenger and freight traffic.

  • Strong correlation between air transport growth and global economic growth.

Air Transportation in Norway

  • Infrastructure: Avinor operates 46 airports, supporting a scattered population with 30 short runway airports built between 1960-1970.

  • Functionality: Short runways serve as feeder routes to larger airports, often subsidized under public service obligations.

Unit Load Devices (ULD)

  • Definition: Containers designed for air cargo that fit into aircraft belly holds.

  • Limitation: ULDs can only be used in air cargo operations; transitions to other transport modes require load modifications.

Largest Freight Airports

  • Key airports include Amsterdam (AMS), London (LHR), Guangzhou (CAN), and Chicago (ORD).

Revenue Streams in Air Transport

  • Passenger Revenues: Most significant source, accounting for 65.1% of operating revenues.

  • Freight Revenues: Typically around 10% share of total revenues.

Cost Structure of Air Transport

  • Fuel: 29% of operational costs, indicating significant sensitivity to fuel price fluctuations.

  • Other Major Costs: Maintenance (11%), Taxes and Fees (14%), Salaries (20%), Ownership Costs (16%).

Environmental Impact of Aviation

  • CO2 Emissions: Aviation is responsible for 2.8% of global CO2 emissions; with significant growth observed over decades.

  • Sustainable Aviation Fuels (SAF): Biofuels that can significantly reduce lifecycle greenhouse gas emissions compared to conventional jet fuels, showing promise in sustainability efforts.

Summary of Fuel and Pricing Trends

  • Fuel prices have fluctuated dramatically from 1990 to 2020, influenced by global events and market dynamics.

  • Average airfares have declined, illustrating changing industry profitability and competition from low-cost carriers.