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 18 August 2014 Airline and Airport Management 3 18 August 2014 Airline and Airport Management 4 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.
18 August 2014 Airline and Airport Management 5 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. 18 August 2014 Airline and Airport Management 6 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. 18 August 2014 Airline and Airport Management 7 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 18 August 2014 Airline and Airport Management 8 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 18 August 2014 Airline and Airport Management 9 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. 18 August 2014 Airline and Airport Management 10 Elements of Aviation Industry Aviation Industry Air Navigation Services Aircraft & Airlines Govt. Rules Regulations & Airports Aerospace Engineering 18 August 2014 Airline and Airport Management 11 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. 18 August 2014 Airline and Airport Management 12 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. 18 August 2014 Airline and Airport Management 13 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
18 August 2014 Airline 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 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 18 August 2014 Airline and Airport Management 15 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.