Aviation Managment

They make no money. It is only there to feed the long-haul flights. As an airline you can only operate short-haul at low cost level.

3 months before. Emirates rises prices 1 month before. --> Bonus wages/lower wages control the consumal behaviour.

1. Overfly another country
2. Make a technical stop in another country
3. Fly to another country
4. Carry freight and pax to the home country from another country
5. Carry freight and passengers between two foreign countries with starting and enging in the home country
6. Carry freight and passengers between two countries by an airline of a third country on two routes connecting in its home country
7. Carry freight and pay between two foreign countries without flying to the home country
8. Carry freight and passengers within a country by an airline of a third country on a route with origin / destination in its home country
9. Carry freight and pax between two destinations in one country without flying to the home country

2000 destinations, offer routes on the market but with codesharing.

• Bigger companies provide more OD's with comparably fewer legs

Sharing infrastructure like lounges

Airlines dominating a hub show comparably higher market shares (s-curve effect)

In general demand depends on income.

• Income depends on economic growth
• increased income or increased income expectations
• Low prices of airline tickets

-->Demand for air travel increases

• Leisure tourism
• International Business Tourism

2-3 times that of Western markets

• novel experience
• escape
• knowledge seeking
• fun and excitement
• rest and relaxation
• family and friends togetherness
• meet cultures
• recreation/sports

• natural and historical environment
• cleanless and safety
• easy-to-access and economical deal
• outdoor activities
• low ticket prices
• sunny and exotic atmosphere

• bigger planes have lower CASK‘s
• bigger airports are cheaper per PAX

• newer planes do have lower CASK‘s
• smaller planes are able to fly longer distances

See picture!

See picture!

When it comes to noise at Zurich airport. Or if parallel RWY is planned just Zurich decides not whole country.

Bias of the decision (noise), the closer to the airport the more egoistic the decision.

1. Safety
2. Fair markets (competition vs. monopolies, basic conditions)
3. Access of CH to the world
4. Negative effects (noise, emissions)

• Connectivity (access to network)
• Airport charges
• Turnaround time
• Delay sensitivity
• Services
• Passenger satisfaction

• Noise emissions around the airports

– Bilateral agreements with neighboring countries

• Emissions

– Participation in an EU ETS vs. Swiss ETS (Emsiions trade system)
– Participation in the discussion about a global ETS

• 58.1 Mill. Jobs worldwide (Source: ATAG)
• 8 % of global GSP
• 5 % average growth per year
• 2 bill. passengers per year (Network, Charter, Taxi)
• 35% of the exported total value is shipped by air

Liberalization / Deregulation-->New and better air service-->Traffic growth-->Economic Growth-->Job Growth-->Liberalization/Deregulation-->....

• Alliances
• LCC (South West Airl.)

1. Enables individual mobility to worldwide destinations
2. Ties the economy into the international division of labor
3. Raises the attractiveness of the business location

See picture!

See picture!

2%

1. Operational optimization
2. Incentivizing new technologies
3. Carbon pricing
4. Incentivizing changes in behavior

• Action should be global.
• The three pillars should be complemented by action to change attitudes to climate change.

1. Airlines receive a specific amount of tons of CO2 emissions, which they can use per year.
2. If they need more than they received, they can buy more from other airlines, that have CO2 emission allowances in excess.
3. Airlines with more efficient, more ecological planes need less CO2 emission allowances and can sell what they don‘t need.
4. Airlines are motivated to invest in environmentally friendly planes.

Emissions trading has been marred by weak caps, free handouts of permits to the biggest polluters and the purchase of "offsets" – carbon credits bought from outside the cap-and-trade system from carbon reduction projects in the developing world.

It must be global, otherwise it cannot work.

Airline industry and airports

The aircraft manufacturing industry, airlines and airports.

• Cyclicality of the industry development: The aviation industry is characterized by a highly cyclical development of passenger and freight transportation
• High fixed cost structure: high fixed cost structure and rather low variable costs, The reasons for this cost structure are high – and often very specific – investments at either manufacturers (development of new aircraft), at airlines (financing of new aircraft), or at airports (provision of ground infrastructure such as runways and terminals).
• Strong growth coupled with low profit margins
• Dependency on external input factors

The development of air cargo thereby is often found to feature a trend which is slightly ahead the development of the general economy. Therefore, it can be used as an indicator for the overall development of the economy.

They create high exit barriers (Austrittsschranken), this peculiar cost structure often leads to fierce price competition, airlines are selling their seats close to variable costs (as a marginal return to the fixed costs)

• Economic System
• Technological System
• Ecological System
• Political / Regulatory System
• Social System