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AVS 120 Intro to Aviation. Airports. Airports. Types: Private Military Especially during WW2 250 airports were developed for national defense Municipal Governments Federal funding was disallowed by the Air Commerce Act of 1926 . Federal Airport Act of 1946.

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AVS 120 Intro to Aviation


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airports
Airports
  • Types:
    • Private
    • Military
      • Especially during WW2
        • 250 airports were developed for national defense
    • Municipal Governments
      • Federal funding was disallowed by the Air Commerce Act of 1926
federal airport act of 1946
Federal Airport Act of 1946
  • Authorized funding for capital improvements
  • Grants and matching funds to Municipalities
    • Most of the 250 WW2 airports were declared surplus
      • returned to Municipalities
airport airway development act 1970
Airport/Airway Development Act (1970)
  • Jet aircraft with large payloads required improved airport and terminal facilities
    • Users were charged a Levy
      • Held in trust to provide Federal grants and matching funds
  • National Plan of Integrated Airport Systems
    • Developed by the FAA
    • Identified 3,000 eligible airports for funding
      • “Adequate” airport: must be located within 20 SM of 97% of U.S. population
airport composition
Airport Composition

Vast majority are closed to the public

npias
NPIAS
  • Recognizes 3 General Classes of Airports
    • Commercial Service Airports: 2,500 PAX Enplanements Per Year
    • Reliever Airports: General Aviation Airports within the Metro Area
    • General Aviation Airports: General Aviation Airports Outside the Metro Area
npias1
NPIAS
  • Commercial Service
    • 546
    • 422 are primary: > 10,000 enplanements pa
  • Reliever
    • 260
      • Average of 28 GA based there (27% of total GA)
  • GA
    • Considered by NPIAS if 10 based GA and > 20 SM from other NPIAS
npias2
NPIAS
  • FAA Hub Classification:
    • Different to airline
    • City + Standard Metropolitan Statistical Area:
      • Large: at least 1% of total enplanements
      • Medium: at least 0.25% of total enplanements
      • Small: at least 0.05% of total emplanements
      • Nonhub
npias3
NPIAS

 70% of emplanements take place at the 31 Large Hubs!

airport components
Airport Components
  • 3
    • Airside
    • Terminal Operation
    • Landside
airside
Airside
  • Runways
  • Taxiways
  • Aprons
  • Influence land area and design:
    • Type of users (aircraft): size/weight/pax
    • Location of terminal/maintenance facilities
    • Available land area
    • Movement of ground service vehicles
terminal operation
Terminal Operation
  • Provides the link between landside and airside
  • 3 main areas:
    • Curb-side
    • Central processing area
    • Links to the airside
terminal operation1
Terminal Operation
  • Must meet the needs of all users:
    • Primary users: Pax, Mail & Cargo
    • Secondary users:
      • Airport/airline/gov’t employees
      • Meeters-greeters
      • Well-wishers, etc.
landside
Landside
  • Development has generally lagged:
    • FAA does not usually provide funds
  • Enter - Exit Roads
  • Parking
  • Taxi
  • Hotel
  • Rental Cars
operational considerations
Operational Considerations
  • Runway Layout
  • Local Terrain
  • Local Weather
  • Other Local Airport Operations
  • ATC Requirements
social considerations
Social Considerations
  • Local Pax Demand
  • Ground Access
  • Noise
  • Local Environmental Impact/Land Use
  • Wildlife Habitats
population affected by enplanements
Population affected by Enplanements

Although enplanements have increased, the population affected by this has decreased, as airports have been sited away from population centers

the civil aeronautics board
The Civil Aeronautics Board
  • CAB (1938-1985):
    • Acted as a public utility
    • Granted authority to regulate:
      • Entrants
      • Routes/service areas
      • Fares
      • Profit margins
      • Types of aircraft used
      • Even seating configurations!!
1960 s 1970 s
1960’s - 1970’s
  • Economists critical of economic regulation:
      • Pricing and entry restrictions caused excess service and insufficient pricing competition, inflated airline costs, unsatisfactory profits
      • Jets introduced in 60’s (wide-bodied in 70’s):
        • Aircraft faster, more efficient, more comfortable, more reliable, therefore:
          • Increased passenger demand
        • Existing airlines unable to meet demand
        • New entrants not allowed in the club; therefore:
          • Public disgruntlement
deregulation 1
Deregulation 1
  • Air Cargo Deregulation Act (1977):
    • Operate on any domestic route
    • Charge whatever market would bear
    • CAB must approve:
      • Not “public interest”
      • But “fit, willing, and able”
    • Growth of express package carriers:
      • Absorbed local incumbents 
      • Hub & Spoke networks
deregulation 2
Deregulation 2
    • Passenger carriers given more freedom in setting routes
    • Initially prospered/growing public support; therefore:
  • Airline Deregulation Act (Oct, 1978):
      • 1981: no authority over routes
      • 1983: no authority over fares
      • 1985: no CAB:
        • Antitrust/essential air service to FAA
        • International regs (BASA/BAA) to Dept of State
    • overwhelming bi-partisan support
    • opposed by “in the club” airlines
deregulation 3
Deregulation 3
  • Goals of deregulation:
    • time to increase competition
    • improved service with reduced fares
    • stimulate economy
    • introduce innovative service offerings
    • enhance productivity and efficiency
  • Rapid impact:
    • Airlines reshaped networks
    • New entrants
deregulation effects
Deregulation Effects
  • Profits skyrocketed
    • for a very short time period
  • By early 1980’s
    • economic recessions hit
    • airline profits fell, service fell, mergers grew
    • worst losses in history
airline reaction
Airline Reaction
  • Airlines were forced to refocus on:
    • Cost savings:
      • more efficient aircraft
      • personnel reductions
      • wage and benefit reductions
      • route changes
  • Many went under
avs 120 intro to aviation2

AVS 120 - Intro to Aviation

Air Carriers and Commercial Operators

air carrier commercial operators
Air Carrier & Commercial Operators
  • Certification under Part 119:
    • Part 121: Flag/domestic/supplemental operations in larger aircraft
    • Part 125: Corporate aviation in larger aircraft (smaller aircraft operate under Part 91)
    • Part 135: On-demand/commuter operations in smaller aircraft
types of operation 119
Types of Operation (#119)
  • Commuter (#135):
    • 5 scheduled round-trip flights per week
    • Airplane:
      • Non turbojet
      • Passenger seats: 9 or less
      • Max. payload: 7,500lb or less
        • Normal/utility/acrobatic/commuter category
air carrier
Air Carrier
  • A person who undertakes directly by lease, or other arrangement, to engage in air transportation (#1).
    • An air carrier certificated in accordance with Part 121 to conduct scheduled services on specified routes.
      • Certificated as Flag or Domestic
      • May also provide nonscheduled/charter services as a secondary operation.
types of operation 1191
Types of Operation (#119)
  • Domestic/Flag (#121):
    • Domestic:
      • Within lower 48
      • Wholly within Hawaii/Alaska
    • Flag:
      • Everything else including international
  • Airplane
    • Turbojet
    • Passenger seats: > 9
    • Max. payload: > 7,500lb
      • Commuter/transport category
air carriers
Air Carriers
  • Four carrier groupings for FAA stats. are:
    • Major Carrier: Annual Gross Over $1B
    • National Carrier: Annual Gross $100M
    • Large Regional:Annual Gross $20M
    • Medium Regional: Annual Gross < $20 M
definitions for economics
Definitions for Economics
  • Average Passenger Yield
    • Revenue for Carrying One Passenger One Mile
  • Available Seat Miles
    • One seat transported one mile
  • Revenue Passenger Miles
    • What an air carrier sells
    • One revenue passenger transported one mile in revenue service.
more definitions for econ
More Definitions for Econ.
  • Load Factor
    • The Ratio of Seats Occupied (Revenue Passenger Miles) To Seats Available (Available Seat Miles)
      • Divide seats occupied by seats available
      • Gives percentage of seating or freight capacity utilized
  • 2001 - Average Major US Airline Load Factor was 71.1%
slide35

FAA Aviation Forecasts

Fiscal Years 2002-2013

slide36

Current Situation

  • Industry
    • Capacity reductions
      • 20% at most major carriers except WN
  • Government
    • Airline Stabilization bill:
      • $5B in direct aid, $10B in loan guarantees
    • Aviation Security bill:
      • Federalization of screeners, more air marshalls
    • War risk insurance
    • Tax deferrals
  • Traffic is recovering
  • Yields are improving slowly
slide37

Economic Outlook

  • U.S.
    • 2 qtr recession ending 1Q02 then strong recovery
    • Long run growth > 3%
    • Oil prices fall sharply then rise modestly
    • Inflation remains modest
  • World
    • Slowdown in 02 coinciding with U.S. recession
    • Long run growth averages 3.3%
      • Highest growth in Asia and Latin America!
the faa forecast three phases

2004-13: Resumption of Long Run Trend

2002: Decline

2003: Recovery

The FAA Forecast:Three Phases

Capacity and traffic falls, then recovers in 2003;

BUT real yield continues to fall!!

slide39

Percent Growth

03-13

Regional Carriers’ RPMs

Expected to Increase 7.1% a Year

  • Slight slowdown in 2002, recovery then gradual slowing
  • Route Transfers=> Longer trip length
  • Move to Jet Aircraft
risks to forecast
Risks to Forecast
  • Security issues
  • Return of the business traveler?
  • Financial woes => consolidation
  • Management/labor issues
why do regional airlines fail
Why Do Regional Airlines Fail?
  • Management Lack of Knowledge & Experience in Marketing
  • Under capitalization
  • Competition
why do major airlines fail
Why Do Major Airlines Fail?
  • Greedy Corporate Raiders?
  • Market Adaptability?
fares
Fares
  • CAB Set Fares Based on Cost of Operation
  • Currently Fares Are Based on Market & Competition
    • Particular Market Segments Drive the Fare Rates-Not Distance Traveled
      • Big Margins, Make Money-Route A, Break Even-Route B, Lose Money Route C
      • High Demand Periods-Higher Fares
      • Low Competition-Higher Fares
avs 120 intro to aviation3

AVS 120 - Intro to Aviation

International Organizations & Documentation

chicago convention on international civil aviation
(Chicago) Convention on International Civil Aviation
  • 1944
  • Goals: 2
    • Establish international technical standards
    • Establish the principles and procedures for economic regulation of international routes, fares, etc.
warsaw convention
Warsaw Convention
  • Scope:
    • International carriage:
      • Documentation:
        • Passengers
        • Luggage
        • Cargo
      • Carrier’s liability
rome convention
Rome Convention
  • Damage caused by foreign aircraft to third parties on the surface:
    • Aircraft or person/object falling from
    • Liability limited:
      • Based on aircraft MTOW
      • Death or injury: 500,000 Francs per person
        • Franc equates to gold standard
    • Aircraft must be insured to cover
tokyo convention
Tokyo Convention
  • State of Registration has jurisdiction
  • Other States not interfere, except:
    • Territory affected
    • Offence against national/PR of State
    • Offence against State security
    • Breach of ROTA
    • In accordance with a multilateral agreement
the hague convention
The Hague Convention
  • Expansion of Tokyo
  • Includes:
    • Unlawful seizure is extraditable offence
    • Report ASAP to ICAO Council:
      • Offence
      • Action taken to restore control to legal owner/PIC
      • Action taken against offender (extradition, etc.)
world trade organization wto
World Trade Organization (WTO)
  • Formed by 1994 (Uruguay) round of trade talks
    • Rules of trade through agreements (GATT)
    • Objectives:
      • Free trade flow
      • Liberalization of markets
      • Dispute settlement
slide51
GATT
  • Eliminate customs duties
  • No technical barriers
  • No preferred suppliers
  • No unreasonable import quotas
  • No unfair subsidies
general agreement on trade in services gats
General Agreement on Trade in Services (GATS)
  • Art II: no favoritism
  • Art III: transparency
  • Art XVI: market access
  • Art XVII: national treatment
5 freedoms
5 Freedoms
  • IATA: IASTA & IATA  5 Freedoms
  • Technical Rights: 2

1. Right to Overfly without Landing

2. Right to Land for Technical Purposes

  • Traffic Rights: 3

3. Right to put down pax, cargo, & mail

4. Right to pick up pax, cargo, & mail

5. Right to operate between 2 other countries