Travel Transportation | Eefje Godding
Travel Transportation
- aviation -
TABLE OF CONTENTS
LAW IN AVIATION ............................................................................... 3
Important Organizations within the Aviation Industry ..................... 4
Reliabilities of Airlines ...................................................................... 5
BUSINESS MODELS ............................................................................. 7
the individual Business Models ........................................................ 8
the Freedoms of the Air ................................................................. 10
Flight Duration ............................................................................... 11
Alliances ......................................................................................... 12
Case Example – Emirates................................................................ 13
Case Example – Transavia .............................................................. 14
5 FORCES MODEL .............................................................................. 17
Rivalry among existing Competitors ............................................... 17
1
, Travel Transportation | Eefje Godding
Bargaining Power of Suppliers ........................................................ 17
Bargaining Power of the Buyers / Consumers ................................ 18
Threat of new Entrants ................................................................... 18
Threat of Substitutes ...................................................................... 18
BUSINESS TRAVELLERS..................................................................... 19
Business vs. Leisure ........................................................................ 19
The stakeholders of business travel ............................................... 20
Travel Policy ................................................................................... 21
Duty of Care ................................................................................... 22
REVENUE MANAGEMENT ................................................................. 23
The Distribution of Seats ................................................................ 25
SUSTAINABILITY................................................................................ 26
Emissions from different modes of transport ................................ 26
Sustainable Initiatives..................................................................... 29
‘FUN’ FACTS ...................................................................................... 31
GLOSSARY ......................................................................................... 31
Study Tip
Instead of learning the summary by heart, read it maybe twice.
Then use the Glossary to make flashcards and study those !!
2
, Travel Transportation | Eefje Godding
LAW IN AVIATION
The Chicago Convention – December 7th 1944
It was realized that the second World War would come to an end and predictions were made
that the aviation industry would experience an exponential rise.
During the convention, the Air Service Agreements (ASA) were discussed.
including the air freedom rights (also called Bilaterals)
These agreements are discussed and possibly adjusted by governments, never airlines !
For the Netherlands it is nowadays being decided upon by the EU.
Next to the ASAs, it was also discussed that there would be no VAT tax on jet fuel nor on
flight tickets, as governments wanted to stimulate global travel and trading.
until 1997 everything was settled upon and regulated.
Including the destinations, connection and fares.
after 1998 deregulation happened.
a free market finally allowed airlines to adjust fares and open new routes.
low-cost carriers emerged and boosted competition.
this created options for customers, which led to a decrease in prices.
hub-and-spoke systems were created.
huge increase in efficiency.
One important agreement, which is still influencing today’s air travel was agreed upon in ’77
= only 4 airlines were allowed to fly between the US and London Heathrow
American Airlines – British Airways – United Airlines – Virgin Atlantic
These are still the only airlines flying this route, as they still own all the slots.
What you need to start an airline in the EU
• valid Eu passport
• a lot of money – think of billions
• meet safety requirements regarding airplanes and pilots
• airplanes
• an Airline Operator Certificate
3
, Travel Transportation | Eefje Godding
Dutch Aviation Laws
~ spin off from international laws
Dutch law is always applicable to Dutch airplanes, no matter where it is.
Captain is always the first person responsible, then the airline.
Maintenance has to be 100% valid and everything needs to be certified.
if it is not, your license will be taken away.
You have to have original parts, nothing second hand.
There are noise categories and some airports only allow certain categories.
→ a big aircraft does not automatically make more noise than a smaller one.
It depends on many factors, such as the age of the aircraft and quality of the engine
Certain things are based on universal regulations, such as:
• how to measure pets
• at what altitude certain aircraft are allowed to fly
• the colour of the lights at airports
Important Organizations within the Aviation Industry
ICAO International Civil Aviation Organization
a non-profit organization founded during the Chicago Convention 1944
it’s basically countries and governments meeting so secure safe and smooth aviation
IATA International Air Transport Association
non-profit organization led by 270 airlines
purpose = to make aviation better and safer by representing the members (=airlines)
non-profit but with goal to make aviation better = make more money
EASA European Aviation Safety Authority
deals with accidents and incidents
ECAC European Civil Aviation Conference
basically the European ICAO
Euro Control → take care of all airplanes flying over Europe
4
Travel Transportation
- aviation -
TABLE OF CONTENTS
LAW IN AVIATION ............................................................................... 3
Important Organizations within the Aviation Industry ..................... 4
Reliabilities of Airlines ...................................................................... 5
BUSINESS MODELS ............................................................................. 7
the individual Business Models ........................................................ 8
the Freedoms of the Air ................................................................. 10
Flight Duration ............................................................................... 11
Alliances ......................................................................................... 12
Case Example – Emirates................................................................ 13
Case Example – Transavia .............................................................. 14
5 FORCES MODEL .............................................................................. 17
Rivalry among existing Competitors ............................................... 17
1
, Travel Transportation | Eefje Godding
Bargaining Power of Suppliers ........................................................ 17
Bargaining Power of the Buyers / Consumers ................................ 18
Threat of new Entrants ................................................................... 18
Threat of Substitutes ...................................................................... 18
BUSINESS TRAVELLERS..................................................................... 19
Business vs. Leisure ........................................................................ 19
The stakeholders of business travel ............................................... 20
Travel Policy ................................................................................... 21
Duty of Care ................................................................................... 22
REVENUE MANAGEMENT ................................................................. 23
The Distribution of Seats ................................................................ 25
SUSTAINABILITY................................................................................ 26
Emissions from different modes of transport ................................ 26
Sustainable Initiatives..................................................................... 29
‘FUN’ FACTS ...................................................................................... 31
GLOSSARY ......................................................................................... 31
Study Tip
Instead of learning the summary by heart, read it maybe twice.
Then use the Glossary to make flashcards and study those !!
2
, Travel Transportation | Eefje Godding
LAW IN AVIATION
The Chicago Convention – December 7th 1944
It was realized that the second World War would come to an end and predictions were made
that the aviation industry would experience an exponential rise.
During the convention, the Air Service Agreements (ASA) were discussed.
including the air freedom rights (also called Bilaterals)
These agreements are discussed and possibly adjusted by governments, never airlines !
For the Netherlands it is nowadays being decided upon by the EU.
Next to the ASAs, it was also discussed that there would be no VAT tax on jet fuel nor on
flight tickets, as governments wanted to stimulate global travel and trading.
until 1997 everything was settled upon and regulated.
Including the destinations, connection and fares.
after 1998 deregulation happened.
a free market finally allowed airlines to adjust fares and open new routes.
low-cost carriers emerged and boosted competition.
this created options for customers, which led to a decrease in prices.
hub-and-spoke systems were created.
huge increase in efficiency.
One important agreement, which is still influencing today’s air travel was agreed upon in ’77
= only 4 airlines were allowed to fly between the US and London Heathrow
American Airlines – British Airways – United Airlines – Virgin Atlantic
These are still the only airlines flying this route, as they still own all the slots.
What you need to start an airline in the EU
• valid Eu passport
• a lot of money – think of billions
• meet safety requirements regarding airplanes and pilots
• airplanes
• an Airline Operator Certificate
3
, Travel Transportation | Eefje Godding
Dutch Aviation Laws
~ spin off from international laws
Dutch law is always applicable to Dutch airplanes, no matter where it is.
Captain is always the first person responsible, then the airline.
Maintenance has to be 100% valid and everything needs to be certified.
if it is not, your license will be taken away.
You have to have original parts, nothing second hand.
There are noise categories and some airports only allow certain categories.
→ a big aircraft does not automatically make more noise than a smaller one.
It depends on many factors, such as the age of the aircraft and quality of the engine
Certain things are based on universal regulations, such as:
• how to measure pets
• at what altitude certain aircraft are allowed to fly
• the colour of the lights at airports
Important Organizations within the Aviation Industry
ICAO International Civil Aviation Organization
a non-profit organization founded during the Chicago Convention 1944
it’s basically countries and governments meeting so secure safe and smooth aviation
IATA International Air Transport Association
non-profit organization led by 270 airlines
purpose = to make aviation better and safer by representing the members (=airlines)
non-profit but with goal to make aviation better = make more money
EASA European Aviation Safety Authority
deals with accidents and incidents
ECAC European Civil Aviation Conference
basically the European ICAO
Euro Control → take care of all airplanes flying over Europe
4
