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18 August 2014 Airline and Airport Management 1

Airline and Airport


Management Module
Introduction to Industry
Main elements
18 August 2014 Airline and Airport Management 2
Airline and Airport
Management Module

By Hisham Salah
Manager Procurement Aircraft-
Product Support Emirates
26
th
30
th
June 2014
Module Marking criteria:

Assignment : An individual report carries 50% of
module overall marks.

Exam: Equally carries 50% module marks-Date
TBD. Approx 28
th
Aug 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 procedures
and processes enhancement. Boeing/Airbus Steering
Airlines Management committee Member. Developed
recently Airline After Market Product support Agreements.
Designed and implemented Airlines Contract Management
System for Emirates.


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Airline and Airport Management Module
Objectives
Aims and Objectives
a. The course outlines the organisation of the airline industry
and the various factors that affect the management and
operation of international and regional airlines.
b. Review the elements of financing airline operations and
investment.
c. Introduce the different marketing strategies used by
airline business are also introduced
d. Provide you with an opportunity to study how the global
nature impacts upon the Airlines business, economics,
structure, strategy and Practices.
e. Acquire the basic management and business skills to
understand the relationship between airlines, airport
authorities and Aircraft Manufacturers.
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Module Learning Outcomes

Upon successful completion of this course, you should be
able to:
1. Demonstrate an understanding of the organisation of the
global airline industry and explain the various factors
which affect airline businesses.
2. Analyse and evaluate the financial arrangements of a
typical aerospace company including accounts, financial
reports, fund raising and airframe generation.
3. Assess the impact of the various regulatory requirements
on 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 International
Airlines, 3rd Edition, Routledge
Wells, AT and Wensveen (2004), Air Transportation: A Management
Perspective, Thomson Learning
Hanlon, P (2006), Global Airlines: Competition in a Transnational
Industry, 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 21
st
Cent, same as Highways in 20
th
, railways in
19
th
and Seaports in 18
th
century.
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Elements of Aviation Industry
Aviation Industry
Air Navigation
Services
Aircraft & Airlines
Govt. Rules
Regulations &
Airports
Aerospace
Engineering
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The importance of aviation
Aviation will shape business location
and urban development in the 21st
century as much as highways did in the
20th century, railways in the 19th
century and seaports in the 18
th

century.
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Background
History of Aviation Industry
The Wright brother's famous first flight in December 1903
marked the inauguration of this vital industry.
In 1908 the Wrights secured a contract to make a single
aircraft
Till WWI 1914, French and Germans firms had built more
than 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 with
variable pitch propellers, and fuselage and cowlings gave
aircraft their aerodynamic shape.
By the mid-1930s, metal replaced wood.
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History of Aviation Industry Contd
Air transport companies (British Overseas Airways
Corporation, Lufthansa, and Aerospastial) began flying
passengers in the 1920s.
Mid 1930s Boeing 247 Aircraft marked the start of
American dominance in transport aircraft.
The Douglas DC-3, introduced in 1935, gave airlines boost
to carrying people rather than mail.
Europeans developed the jet engine, radar, all-weather
navigation aids
In the period 1940 through 1945, American firms built
300,718 military aircraft, including 95,272 in 1944 alone.
In 1943, the aviation industry was America's largest - with
1,345,600 people

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Importance of Aviation
Industry-Quick Glance
The aviation industry ranks among the world's largest
manufacturing industries in terms of people employed and value
of output.
Yet even beyond its shear size, this industry was one of the
defining 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 funds
across 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 industry
was wrecked as Germany & Italy were forbidden from
making any aircraft.
USA Aviation industry flourished post the war. Boeing
strongly emerged with its new Jet engine aircraft versions
which 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 Airbus
Industries.