Introduction -Aviation Elements and Background

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18 August 2014 Airline and Airport Management 1

Airline and Airport

Management Module

Introduction to Industry

Main elements


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Airline and Airport

Management Module

By Hisham Salah

Manager Procurement Aircraft-

Product Support Emirates

26th30thJune 2014


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Module Marking criteria:

Assignment : An individual report carries 50% of

module overall marks.

Exam: Equally carries 50% module marks-Date

TBD. Approx 28thAug 2014



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Lecturer Background

1. Name: Hisham A. Salah-

2. Background

- Mechanical Engineering Degree- USA

- Masters Degree- MBA in Aviation Management- UK

3. Career to date- Royal Jordanian Airlines- 1988- 1998

- Emirates Airlines End of 1997 till date.

Involved in systems development and drafting proceduresand processes enhancement. Boeing/Airbus SteeringAirlines Management committee Member. Developedrecently Airline After Market Product support Agreements.Designed and implemented Airlines Contract ManagementSystem for Emirates.


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Airline and Airport Management Module

Objectives

Aims and Objectivesa. The course outlines the organisation of the airline industry

and the various factors that affect the management andoperation of international and regional airlines.

b. Review the elements of financing airline operations andinvestment.

c. Introduce the different marketing strategies used byairline business are also introduced

d. Provide you with an opportunity to study how the globalnature impacts upon the Airlines business, economics,structure, strategy and Practices.

e. Acquire the basic management and business skills tounderstand the relationship between airlines, airportauthorities and Aircraft Manufacturers.


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Module Learning Outcomes

Upon successful completion of this course, you should beable to:

1. Demonstrate an understanding of the organisation of theglobal airline industry and explain the various factorswhich affect airline businesses.

2. Analyse and evaluate the financial arrangements of atypical aerospace company including accounts, financialreports, fund raising and airframe generation.

3. Assess the impact of the various regulatory requirementson the economics of airline businesses.

4. Analyse the marketing strategies and the marketing mix(price, place, product, and promotion) of an airline

business.


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Course References & Reading

Essential Reading

Doganis, R (2005), The Airline Business, 2nd Edition, Routledge.

Recommended Reading

Doganis, R (2002), Flying Off Course: The Economics of InternationalAirlines, 3rd Edition, Routledge

Wells, AT and Wensveen (2004), Air Transportation: A ManagementPerspective, Thomson Learning

Hanlon, P (2006), Global Airlines: Competition in a TransnationalIndustry, 3rd Edition, Butterworth-Heinmann

Shaw, S (2004), Airline Marketing and Management, 5th Edition,Ashgate

Morrell, PS (2007), Airline Finance, 3rd Edition, Ashgate Hall S et al., (1997), Aircraft Financing, 3rd Edition, Euromoney

Publications

Selected ICAO Publications


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Course Major Contents

1) Background- Aviation Industry Elements

2) External influencing factors affecting the industry.

3) Aircraft Economics, Maintenance Philosophies and Reliability

4) Airport Operation Management, ATC & Navigation

5) Principles of Industry Quality Management (TQM, QMS)6) Airline Operation & Fleet Networks Management

7) Airlines Marketing & Lean Strategy Management

8) Airlines Finance Analysis & Economics

9) Aviation Industry Security and Safety

10) Aviation Industry Rules, IATA, Laws and Regulations

11) Low Cost Carriers Vs Traditional Full Service carriers.

12) Basic Aviation fleet planning & Safety


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Introduction to Aviation

Management

Aviation industry elements

1. Aircraft

2. Airport

3. Airline

4. A/C manufacturers & Suppliers

5. Legislation and government

O Aviation industry is important in shaping businesses

in 21stCent, same as Highways in 20th, railways in

19thand Seaports in 18thcentury.


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Elements of Aviation Industry

Aviation Industry

Air Navigation

ServicesAircraft & Airlines

Govt. Rules

Regulations &

Airports

Aerospace

Engineering


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BackgroundHistory of Aviation Industry

The Wright brother's famous first flight in December 1903marked the inauguration of this vital industry.

In 1908 the Wrights secured a contract to make a singleaircraft

Till WWI 1914, French and Germans firms had built morethan 3,000 aircraft (Biplanes).

National governments funded the Industry R&D.

In 1920s, aircraft assumed their modern shape where

Monoplanes superseded biplanes, stressed-skin wings withvariable pitch propellers, and fuselage and cowlings gaveaircraft their aerodynamic shape.

By the mid-1930s, metal replaced wood.


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History of Aviation Industry Contd

Air transport companies (British Overseas AirwaysCorporation, Lufthansa, and Aerospastial) began flying

passengers in the 1920s.

Mid 1930s Boeing 247 Aircraft marked the start ofAmerican dominance in transport aircraft.

The Douglas DC-3, introduced in 1935, gave airlines boostto carrying people rather than mail.

Europeans developed the jet engine, radar, all-weathernavigation aids

In the period 1940 through 1945, American firms built300,718 military aircraft, including 95,272 in 1944 alone.

In 1943, the aviation industry was America's largest - with1,345,600 people


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18 August 2014Airline and Airport Management 14

Importance of Aviation

Industry-Quick Glance The aviation industry ranks among the world's largest

manufacturing industries in terms of people employed and valueof output.

Yet even beyond its shear size, this industry was one of thedefining industries of the twentieth century.

It has inflamed the imaginations of youth around the world,inspired new schools of industrial design; shrunk the Globe.

Economically, it has consumed the major amount of R&D fundsacross many fields, innovations in a large spectrum of

component technologies, Engines & APUs. Aviation technology complements many other industries- travel

and tourism, logistics, telecom, electronics, computing,materials, civil, supplies manufacture, and supply chain


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International Industry

International politics had played a role in aviation.

Following World War II, the European aircraft industrywas wrecked as Germany & Italy were forbidden frommaking any aircraft.

USA Aviation industry flourished post the war. Boeingstrongly emerged with its new Jet engine aircraft versionswhich dominated the industry from 1950s to early 1970s

French and British firms remained strong and innovative,though they sold mostly to their nation's military and

airlines. The Airbus A300 first flew in September 1972, and

European governments continued to subsidize the AirbusIndustries.

Introduction -Aviation Elements and Background

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