MARKETING THE INDUSTRY SEGMENTS. 4.05 Explain the air transportation industry. Airline Deregulation Act of 1978. Prior to 1978, the Civil Aeronautics Board was responsible for air fares, routes, and schedules. In 1978, responsibility for airline travel was transferred to the FAA and the DOT.
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MARKETING THE INDUSTRY SEGMENTS
4.05 Explain the air transportation industry.
Airline Deregulation Act of 1978
Full service/mega carriers
Regional carriers: Airlines that fly scheduled flights from smaller cities into larger cities
Supplemental carriers: Planes hired by an individual or company to fly nonscheduled flights for a specific purpose; fly to locations where scheduled flights do not
Classes of Service Aboard Flights
Types of Flights
Yield management: The course of action an airline takes to meet a break-even point and earn a profit
Yield: The amount of profit generated per seat per mile on an airplane
*Total passenger revenue/Total number of passenger miles flown
Air Travel Patterns
Hub and spoke system
Slots: Spaces leased at an airport by a carrier so they can conduct business there
Spokes: Flights from smaller cities that fly into the hub to help passengers make connections
Frequent Flyer Programs
Airline Executive Club
*American Airlines Admiral’s Club, Delta’s Crown Club
Air Canada’s Mapleleaf Lounge
Ticketing procedures (cont.)
Marketing strategies used in the airline industry