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HISTORY OF AIRLINE INDUSTRY

(1900’s – 2000’s)
AN INDIVIDUAL REPORT
Submitted by
CAF01AUG1610

U.W.S. DILRUKSHI
In partial fulfillment for the completion
Of

THE CERTIFICATE COURSE IN AVIATION FUNDAMENTAL PROGRAM


In

SRILANKAN AVIATION COLLEGE (SLAC)

Submitted on: 29th August 2016


Submitted to: Mr. Sampath Soysa
ACKNOWLADGEMENT

Presenting and performing this report of this assignment would not have been possible
without the support of our Lecturer Mr. Sampath Soysa.

I would like to extend my sincere thanks to course coordinator Mr. Primal Jayasooriya
the Training Operations Supervisor (IAA) at SriLankan Aviation College for facilitating us
with this resourceful & productive certificate course which provided us an opportunity to
learn the basic foundation of Aviation industry and Mr. Sampath Soysa for the helpful
guidance and
constant supervision throughout.

My appreciations and gratefulness also go to my colleague and team mates itself in


developing the project and people
who have eagerly assisted me in in gathering the information to make this report a
success.
HISTORY OF AIRLINE INDUSTRY

TABLE OF CONTENTS
1 Chapter: .............................................................................................................................. 6
Beginning Of The Airline Industry .......................................................................................... 6
1.1 First Airline – Delag (1909) .......................................................................................... 8
1.2 First Commercial Flight (1914) ..................................................................................... 8
1.3 Oldest Airline Carrier – Klm.......................................................................................... 9
1.4 First Sea Plane ............................................................................................................ 9
2 Chapter: .............................................................................................................................10
World War I ..............................................................................................................................10
2.1 International Air Traffic Assosication (1919) ................................................................12
3 Chapter: .............................................................................................................................13
Era Of Airmail (1917) ...............................................................................................................13
3.1 First Airmail Flight (1918) ............................................................................................14
3.2 First Transcontinetial Air Service (1919-1920) ............................................................14
3.3 Introduction Of Scheduled Commercial Air Services (1920) ........................................15
3.4 The Contract Air Mail Act Of 1925...............................................................................15
3.5 The Air Commerce Act Of 1926 ..................................................................................16
3.6 Ford's Tin Goose (1927) .............................................................................................16
3.7 First Trans-Atlantic Non-Stop Flight (1927) .................................................................17
3.8 The Watres Act And The Spoils Conference (1930) ....................................................18
3.9 Scandal And The Air Mail Act Of 1934 ........................................................................19
4 Chapter ..............................................................................................................................20
Era Of Demand & Innovation ..................................................................................................20
4.1 Aircraft Innovations (1930s) ........................................................................................21
4.1.1 Water Cooled Engines .........................................................................................21
4.1.2 Cockpit Advancements With Artificial Horizon ......................................................21
4.1.3 Iata Implemented Standards & Regulations .........................................................22
4.2 The Dawn Of The Jet Age...........................................................................................22
4.2.1 First Jet Engine (1930) .........................................................................................22
4.3 Radio Communication (1932) .....................................................................................23
4.4 Developed Twin Engine Planes (Boeing 247 And Douglas Dc-3) (1933) ....................24
4.4.1 First Modern Passenger Airliner (Boeing 247) (1933) ..........................................24
4.4.2 Dc-1, Douglas Aircraft Company (1933)...............................................................26

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HISTORY OF AIRLINE INDUSTRY

4.4.3 Dc-2 (1934) ..........................................................................................................27


4.4.4 The Dc-3 (1936)...................................................................................................29
4.4.5 B-17 -Pressurized Cabins (1938) .........................................................................30
4.4.6 America’s First Jet Plane (Bell P-59) (1943) ........................................................32
4.5 First Airtraffic Control Tower (1935) ............................................................................32
5 Chapter ..............................................................................................................................33
World War Ii (1945) ..................................................................................................................33
5.1 Developments .............................................................................................................34
5.1.1 Increased Number Of Aircrafts (1939) .................................................................34
5.1.2 Development Of Radar (1940) .............................................................................35
5.1.3 Icao Implementations (1944) ................................................................................36
5.1.4 Iata Implementations (1945) ................................................................................36
6 Chapter ..............................................................................................................................37
The Jet Age (1950) ..................................................................................................................37
6.1 Comet (1952) – 36 Seat British-Made Jet ...................................................................38
6.2 B-47 & B-52 Bombers .................................................................................................39
6.3 Boeing 707 (1958) ......................................................................................................40
6.3.1 General Characteristics Of Boeing 707 ................................................................40
7 Chapter ..............................................................................................................................41
Growth And Setbacks 1960s ..................................................................................................41
8 Chapter ..............................................................................................................................43
Era Of Supersonics (1970s)....................................................................................................43
8.1 Boeing 747 First Wide-Body Jet Aircraft (1970) ..........................................................44
8.1.1 General Characteristics Of Boeing 747 ................................................................45
8.2 Dc-10 & L-1011 Tristar (1970).....................................................................................46
8.3 Concorde (1976) .........................................................................................................47
9 Chapter ..............................................................................................................................48
The Airline Industry In 1980s & 1990s ...................................................................................48
9.1 Deregulation ...............................................................................................................49
9.2 Safety .........................................................................................................................50
9.3 Importan Events That Took Place In 1990s ................................................................51
10 Chapter ..............................................................................................................................52
The Airline Industry Since 2000 .............................................................................................52
10.1 Some Important Incidents In 2000s.............................................................................53

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HISTORY OF AIRLINE INDUSTRY

LIST OF FIGURES
Figure 1: First powered flight flew 37m for 12seconds
Figure 2: Oliver & Wilbur Wright
Figure 3: 1st Passenger Leon De Lagrange
Figure 4: DELAG
Figure 5: Zeppelin Corporation
Figure 6: 1st Airboat line schedule; Petersburg-Tampa
Figure 7: Tony Jannus (Pilot) with Abram C. Pheil
Figure 8: First sea plane
Figure 9: World War I (1914 – 1918)
Figure 10: World War I squadron of flying corps
Figure 11: The surplus Bomber planes used at WWI is gathered to form 20 small
passenger airlines
Figure 12: International Air Transport Association now promotes safe, regular &
economical air transportation standards.
Figure 13: Coast to Coast Transcontinental Air services
Figure 14: At night the Mails from the Airplanes were handed over to the Trains
Figure 15: Airmail Act of 1925 by Rep. Clyde Kelly
Figure 16: Auto Mobile Manufacturer moved into Aircraft Manufacturing in 1927 and
produced the Ford Trimotor (Tin Goose)
Figure 17: First Transatlantic Non-Stop Flight by Charles Lindbergh on 20th May 1927
Figure 18: Air Mail Act of 1930
Figure 19: Plane crash that killed 8 people in 1931
Figure 20: Developed new instruments in the Cockpit (altimeters, airspeed indicators, rate-
of-climb indicators, Artificial Horizon etc.
Figure 21: First Jet Engine by Frank Whittle
Figure 22: Radio communication was used to communicate with the ground as an aid to
navigation.
Figure 22: Boeing 247 Aircraft, first modern passenger airliner
Figure 23: Boeing 247 interior with 10 pax capacity
Figure 24: Boeing 247 cockpit
Figure 25: DC-1 Aircraft and its narrow body interior
Figure 26: DC-2 Aircraft

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Figure 27: DC-2 Aircraft interior and its cockpit


Figure 28: DC-3 Aircraft
Figure 29: B-17 Bomber can accommodate 10 soldiers
Figure 30: B-17 Bomber
Figure 31: Bell P-59; America’s First Jet plane
Figure 32: Oldest & first control tower in the world
Figure 33: Newark International Airport
Figure 34: Manufacturing Aircrafts in Large scale
Figure 35: Radar used to locate aircrafts and maintain safe distance between them
Figure 36: ICAO Logo
Figure 37: Jet age (The comer & 707 era)
Figure 38: Comet – 36 seat British made jet
Figure 39: interior & the cockpit of a comet
Figure 40: B-47 Stratojet bomber
Figure 41: Boeing B 707-312B Air Lanka 1980 4R-ALA
Figure 42: Boeing B 707-312B Air Lanka 1980 4R-ALA
Figure 43: Air Lanka Boeing 747-400
Figure 44: Sri Lankan Airlines Boeing 747-400
Figure 45: FedEx Express DC-10 Aircraft
Figure 46: Air Lanka Lockheed L-1011 TriStar
Figure 47: Concorde 1976 - 2003
Figure 48: Air France Concorde Aircraft

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HISTORY OF AIRLINE INDUSTRY

EXECUTIVE SUMMARY

Aviation has evolved into one of the world’s most important high technology industries.
Its remarkable progress has been made possible by a number of factors, including military
developments, technological advances, and standards established by the world’s aviation
community.

The evolution of airline industry began from the first flight of Wright brother in 1900s which
encouraged the building of new innovative aircrafts. These aircraft were used by most of
the countries to facilitate airmail services. During the World War I aircrafts played a vital
role in carrying bombers and soldiers from place to place.

A large number of military aircrafts became available after World War I; they provided the
basis for starting many of the world’s first airlines, especially in Europe. The 1920s saw
the growth of commercial airlines worldwide. The military demands of World War II
provided a tremendous push to aviation technology, resulting in the development of
advances in aircraft design, navigation services, radar systems, radio communicating
systems and airport operation facilities.

Air cargo began to play an increasingly important role in the world economy in early
1950s, particularly in international trade. Since the beginning of the Jet age, both Tourists
class and Economy class service have been introduced and special jet aircrafts to
facilitate the accommodation to a greater number of passengers were evolved.

This signaled the beginning of the development of one of the world’s largest industries
and the world global tourist trade. At this time several regulatory bodies aroused to ensure
the safety regulations and standards for the airlines transportation system to make sure
the passengers are safe to fly.

Commercial aviation has played an essential role in the economic and social progress of
developing nations. The world’s scheduled airlines experienced a slower growth rate than
expected during the 1970s because of a number of setbacks

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HISTORY OF AIRLINE INDUSTRY

CHAPTER:
Beginning of the Airline Industry

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HISTORY OF AIRLINE INDUSTRY
01 - Beginning of the Airline Industry

Aviation industry came up in early 1900s when airplane designers in several countries
succeeded in achieving flights. (IATA, 2013)

On December 17, 1903, Orville and Wilbur Wright surpassed their four years of research
and design efforts to build up the first powered flight which is heavier than an air machine
flew 120-foot (37 meters) high for 12seconds in duration at Kitty Hawk, North Carolina

Figure 1: First powered flight flew 37m for 12seconds Figure 2: Oliver & Wilbur Wright

Before that people had flown only in balloons and gliders.

The first person to fly as a passenger was Leon DE Lagrange. He rode with French pilot
Henri Farman from a meadow outside of Paris in 1908.

Charles Furnas became the first American airplane passenger


when he flew with Orville Wright at Kitty Hawk.

The birth of the passenger travel was when the first fliers like
Wright Brothers took on passengers for short rides.

In early 1910s these aircrafts began to transport goods and items


which was the beginnings of freight or cargo service. People then Figure 3: 1st Passenger
gradually learned about the efficiencies of air transport which did Leon De Lagrange
not take much time for the airline practices to be established.
(IATA, 2013)

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HISTORY OF AIRLINE INDUSTRY
01 - Beginning of the Airline Industry

1.1 FIRST AIRLINE – DELAG (1909)

The world’s first Airline was DELAG, Deutsche


Luftschiffahrts-Aktiengesellschaft (figure 4)
which is also called German Airship
Transportation Corporation Ltd.

This airline was founded on November 16,


1909 with the assistance of government, and
operated airships manufactured by
The Zeppelin Corporation in Frankfurt.

This DELAG Company operated as a


passenger Airline until 1935 till its operations
Figure 4: DELAG Figure 5: Zeppelin Corporation
were overtaken by the newly formed Deutsche
Zeppelin Reederei.

1.2 FIRST COMMERCIAL FLIGHT (1914)

On the morning of January 1st in 1914 the first fixed


wing scheduled air service Commercial flight flew
across the bay from St. Petersburg, Florida to
Tampa, Florida which took 23 minutes to cover 18
miles (29 kilometers). This was 11 hours less than
travelling by train from St. Petersburg to Tampa.

This was recognized as the St. Petersburg – Tampa


Airboat line. This was piloted by Tony Jannus with
Figure 6: 1st Airboat line schedule; Petersburg-
Abram C. Pheil (the former Mayor of St. Petersburg) Tampa
as his passenger. This witnessed the dawn of the
regular passenger travel in the airline industry.

The single-plane service accommodated one


passenger at a time, and the company charged a
one-way fare of $5. After operating two flights a day
for four months, the company folded with the end of
the winter tourist season. Because without an
ongoing steady income from tourist traffic, it could not Figure 6: Tony Jannus (Pilot) with Abram C.
survive. The airline closed at the end of March where Pheil

it could only last for about three months. .

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01 - Beginning of the Airline Industry

1.3 OLDEST AIRLINE CARRIER – KLM


KLM operated its first flight in 1919 making it the oldest carrier which is still operated
today.

KLM, “Koninklijke Luchtvaart Maatschappi” which is also called the Royal Dutch
Airlines is the flag carrier airline of the Netherlands.

Moving on with 1920 KLM started


operating scheduled flights between
London and Amsterdam which is still
being operated. In its first year of
operation KLM transported 345
passengers and around 25000kg of
mail and Cargo. By today this is
approximately the weight of the load
carried by one single 747 flight.

Figure 7: KLM
1.4 FIRST SEA PLANE

Glenn H. Curtiss flies the first successful American seaplane. Glenn Curtiss had designed
a plane that could take off and land on water and thus could be built larger than any plane
to date, because it did not need the heavy undercarriage required for landing on hard
ground.

Figure 8: First sea plane

These and other early flights were headline events, but commercial aviation was very
slow to catch on with the general public, most of whom were afraid to ride in the new
flying machines.

Improvements in aircraft design also were slow.

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CHAPTER:
WORLD WAR I

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02 – World War I

When World War I began in Europe in 1914, the focus of aviation research turned to the
demands of nation’s war.

Figure 9: World War I (1914 – 1918)

However, with the beginning of World War I, the military value of aircraft was quickly
recognized then the production of aircrafts increased a lot to meet the high demand for
planes from governments.

Most considerable was the development of more powerful motors, enabling aircraft to
reach speeds of up to 130 miles per hour which flies more than twice the speed of pre-
war aircraft.

Increased power also made larger aircraft possible. During the World War I, factories
used newly designed engines to put thousands of fighters and bombers into the skies.

Figure 10: World War I squadron of flying corps

After the war, a large number of military planes were not in use and many of these planes
became available for civilian use.

At the same time, the war was bad for commercial aviation in several respects. Due to
the war they focused all design and production efforts on building military aircraft. So in
the public's mind, flying became associated with bombing runs, surveillance and aerial
dogfights.

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02 – World War I

In addition, there was such a large surplus of planes at the end of the war that the demand
for new production was almost nonexistent for several years - and many aircraft builders
went bankrupt.

Some European countries, such as Great


Britain and France, nurtured commercial
aviation by starting air service over the
English Channel.

As a consequence of WWI, nearly 20 small


passenger airlines were created using
bomber planes, notably in Germany,
France and Great Britain.
Figure 11: The surplus Bomber planes used at WWI
However, nothing similar occurred in the is gathered to form 20 small passenger airlines

United States, where there were no such


natural obstacles isolating major cities and where railroads could transport people almost
as fast as an airplane, and in considerably more comfort.

2.1 INTERNATIONAL AIR TRAFFIC ASSOSICATION (1919)

In 1919, the year of the world’s first non-stop transatlantic flight, the international air traffic
association (IATA) was created.
IATA was founded to establish the first set of common technical standards for the industry.
The original IATA ceased to function
during World War II, but was
recreated as today’s International Air
Transport Association in 1945.

Figure 12: International Air Transport Association


now promotes safe, regular & economical air
transportation standards.

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CHAPTER:
Era of Airmail (1917)

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03 – Era of Airmail (1917)

By 1917, the U.S. government felt enough advancement had been made in the
development of planes/Aircrafts to warrant something totally new.

So then they introduced the transport of mail by air.

That year, Congress appropriated $100,000 for an experimental airmail service to be


conducted jointly by the Army and the Post Office between Washington and New York,
with an intermediate stop in Philadelphia.

3.1 FIRST AIRMAIL FLIGHT (1918)

The first flight left Belmont Park, Long Island for


Philadelphia on May 14, 1918 and the next day continued
on to Washington, where it was met by President Woodrow
Wilson.

With a large number of war-surplus aircraft in hand, the


Post Office set its place of interest on a far more motivated
goal which is “transcontinental air service”.

Figure 13: Coast to Coast


Transcontinental Air services

3.2 FIRST TRANSCONTINETIAL AIR SERVICE (1919-1920)


It opened the first segment, between Chicago and Cleveland, on May 15, 1919 and
completed the air route on September 8, 1920, when the most difficult part of the route,
the Rocky Mountains, was
spanned.

Airplanes still could not fly at night


when the service first began, so
the mail was handed off to trains
at the end of each day.

On the other hand, by using


airplanes the Post Office was able
to shave 22 hours off coast-to-
Figure 14: At night the Mails from the Airplanes were coast mail deliveries.
handed over to the Trains

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03 – Era of Airmail (1917)

3.3 INTRODUCTION OF SCHEDULED COMMERCIAL AIR


SERVICES (1920)

During the 1920s, scheduled commercial air services were introduced in Africa,
Australia, Japan, Mexico and most South American countries.
There was also a noteworthy expansion of the air routes across Europe. In the US, the
main focus of the early air transport was the delivery of mail.
It soon replaced the railways as the main means of providing transcontinental mail
service.
Passenger service only became significant in 1926 when the airline companies flying mail
between major U.S. cities began carrying passengers.
Although the early airlines were mostly founded as privately owned companies,
governments soon became interested in the industry and began forming larger, national
airlines, such as Air France and Italy’s AlaLittoria.
The European Airlines were able to make great progress during this time, further
expanding their networks across Europe and most continents including Africa.
These networks were essential in supporting the colonies and also the commerce related
to those colonies.

3.4 THE CONTRACT AIR MAIL ACT OF 1925

By the mid-1920s, the Post Office mail fleet was flying 2.5 million miles and delivering 14
million letters annually. However, the government had no intention of continuing airmail
service on its own.

Traditionally, the Post Office had used private companies for the transportation of mail.
So, once the possibility of airmail was confidently recognized and airline conveniences
were in place, the government moved to transfer airmail service to the private sector, by
way of competitive bids.

The legislative authority for the move was the “Contract Air Mail Act of 1925”, commonly
referred to as the Kelly Act after its chief sponsor, Rep. Clyde Kelly of Pennsylvania. This
was the first major step toward the creation of a private U.S. airline industry.

Winners of the initial five contracts were National Air Transport, Varney Air Lines,
Western Air Express, Colonial Air Transport and Robertson Aircraft Corporation.

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03 – Era of Airmail (1917)

National and Varney later become important parts of United Air Lines. They are originally
a joint business enterprise of the Boeing Airplane Company and Pratt & Whitney.
Western merged with Transcontinental Air Transport (TAT), another Curtiss subsidiary,
to form Transcontinental and Western Air (TWA).
Robertson became part of the Universal Aviation Corporation, which in turn would merge
with Colonial, Southern Air Transport and others, to form American Airways,
predecessor of American Airlines.

Juan Trippe, one of the original partners in Colonial, later established international air
travel with Pan Am. Pan Am is a carrier he founded in 1927 to transport mail between
Key West, Florida, and
Havana, Cuba. Figure 15: Airmail Act of 1925 by Rep. Clyde Kelly

Pitcairn Aviation, yet another


Curtiss subsidiary that got its
start transporting mail, would
become Eastern Air
Transport, predecessor of
Eastern Air Lines.

3.5 THE AIR COMMERCE ACT OF 1926

This legislation authorized the Secretary of Commerce to designate air routes, to develop
air navigation systems, to license pilots and aircraft, and to investigate accidents.

The act brought the government into commercial aviation as regulator of the private
airlines spawned by the Kelly Act of the previous year.

3.6 FORD'S TIN GOOSE (1927)

Henry Ford, the automobile manufacturer, was also among the early successful bidders
for airmail contracts, winning the right, in 1925, to carry mail from Chicago to Detroit and
Cleveland aboard planes his company already was using to transport spare parts for his
automobile assembly plants.

More importantly, he jumped into aircraft manufacturing, and in 1927, produced the Ford
Trimotor, commonly referred to as the Tin Goose.

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03 – Era of Airmail (1917)

It was one of the first all-metal planes, made of a new material, duralumin, which was
almost as light as aluminum but twice as strong. It also was the first plane designed
primarily to carry passengers rather than mail.

Figure 16: Auto Mobile Manufacturer moved into Aircraft Manufacturing in 1927 and produced the Ford
Trimotor (Tin Goose)

The Ford Trimotor had 12 passenger seats; a cabin high enough for a passenger to walk
down the walkway without bent; and room for a "stewardess," or flight attendant, the first
of whom were nurses, hired by United in 1930 to serve meals and assist airsick
passengers.

The Tin Goose's three engines made it possible to fly higher and faster (up to 130 miles
per hour), and its strong appearance, combined with the Ford name, had an encouraging
effect on the public's sensitivity of flying.

However, it was another event, in 1927 that conveyed extraordinary public attention to
aviation and helped to secure the industry's future as a major mode of transportation.

3.7 FIRST TRANS-ATLANTIC NON-STOP FLIGHT (1927)


At 7:52 a.m. on May 20, 1927, a young pilot named Charles Lindbergh set out on an
historic flight across the Atlantic Ocean, from New York to Paris.

It was the first trans-Atlantic non-stop flight in an airplane, and its effect on both Lindbergh
and aviation was enormous. Lindbergh became an instant American hero.

Aviation became a more established industry, attracting millions of private investment


dollars almost overnight, as well as the support of millions of Americans.

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Figure 17: First Transatlantic Non-Stop Flight by Charles Lindbergh on 20th May 1927

3.8 THE WATRES ACT AND THE SPOILS CONFERENCE (1930)


In 1930, Postmaster General
Walter Brown encouraged
legislation that would have another
major impact on the development of
commercial aviation.

Known as the Watres Act, it


authorized the Post Office to enter
into longer-term contracts for
airmail, with rates based on space
or volume, rather than weight.

In addition, the act authorized the


Figure 18: Air Mail Act of 1930 Post Office to unite airmail routes,
Brown believed the changes would
promote larger, stronger airlines, as well as more coast-to-coast and nighttime service.

Immediately after Congress approved the act, Brown held a series of meetings in
Washington to discuss the new contracts. The meetings were later called the “Spoils
Conference” because Brown gave them little publicity and directly invited only a handful
of people from the larger airlines.

He designated three transcontinental airmail routes and made it clear that he wanted
only one company operating each service rather than a number of small airlines handing
the mail off to one another.

His actions brought political trouble that resulted in major changes to the system two
years later.

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03 – Era of Airmail (1917)

3.9 SCANDAL AND THE AIR MAIL ACT OF 1934


In another major change, the government forced the pieces of the vertical holding
companies conjoint up to that time in the industry, sending aircraft manufacturers and
airline operators (most notably Boeing, Pratt & Whitney, and United Air Lines) their
separate ways.

The entire industry was now reorganized and refocused.

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CHAPTER
Era of Demand & Innovation

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04 – Era of Demand & Innovations

4.1 AIRCRAFT INNOVATIONS (1930S)

For the airlines to attract passengers away from the


railroads, they needed both larger and faster airplanes.
They also needed safer airplanes.

Accident in 1931 that killed Notre Dame Football Coach


Knute Rockne along with seven others, kept people
away from flying

Aircraft manufacturers responded to the challenge.

There were so many improvements to aircraft in the


Figure 19: Plane crash that killed 8 1930s that many believe it was the most innovative
people in 1931 period in aviation history.

4.1.1 WATER COOLED ENGINES


Air-cooled engines replaced water-cooled engines, reducing weight and making larger
and faster planes possible.

Most aviation piston engines are air-cooled. Air cooled engines are lighter than their major
alternative - water cooled engines, because the lower weight of air cooled engines in
aircraft design being a more important factor than the lower drag of water cooled engines.
While water cooled engines were widely used from the early days of flight, air cooled
engines were the dominant choice in aircraft.

4.1.2 COCKPIT ADVANCEMENTS WITH ARTIFICIAL HORIZON


Cockpit instruments also improved, with better altimeters,
airspeed indicators, rate-of-climb indicators, compasses,
and the introduction of artificial horizon, which showed
pilots the attitude of the aircraft relative to the ground -
important
for flying in
reduced
visibility.

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Figure 20: Developed new instruments in the Cockpit (altimeters, airspeed


HISTORY OF AIRLINE INDUSTRY

04 – Era of Demand & Innovations

4.1.3 IATA IMPLEMENTED STANDARDS & REGULATIONS


In 1938 the world’s airline carried almost 3.5 million passengers.

With the growing amount of air traffic, it was becoming more important for international
airlines to corporate.

The international air traffic association founded two decades earlier in 1919 and was able
to provide the framework for this collaboration.

Technical standards and commercial air transport regulations were developed and
implemented. This included the standardization of light decks and guidelines for marine
airports as well as the presentation of fire on board aircraft and the buildup of ice deposits.

In addition, the industry standards and procedures related to traffic handling and revenue
accounting were introduced

4.2 THE DAWN OF THE JET AGE


Isaac Newton was the first to theorize, in the 18th century, that a rearward-channeled
explosion could propel a machine forward at a great rate of speed.

4.2.1 FIRST JET ENGINE (1930)


However, no one found a practical application for the theory until Frank Whittle, a British
pilot, designed the first jet engine in 1930.

Even then, prevalent uncertainty about the commercial practicality of a jet prevented
Whittle's design from being tested for several years.

The Germans were the first to build and


test a jet aircraft. Based on a design by
Hans von Ohain, a student whose work
was independent of Whittle's, it flew in
1939, although not as well as the
Germans had hoped.

It took another five years for German


scientists to perfect the design, by which
time it was, fortunately, too late to affect
the outcome of the war.

Figure 21: First Jet Engine by Frank Whittle


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4.3 RADIO COMMUNICATION (1932)


Another development of enormous importance to aviation was radio. Aviation and radio
developed almost in lock step.

Marconi sent his first message across the Atlantic on


the airwaves just two years before the Wright
Brothers first flight at Kitty Hawk.

By World War I, some pilots were taking radios up in


the air with them so they could communicate with
people on the ground.

The airlines followed suit after the war, using radio to


transmit weather information from the ground to Figure 22: Radio communication was used
their pilots, so they could avoid storms to communicate with the ground as an aid
to navigation.
An even more significant development, however,
was the realization that radio could be used as an aid
to navigation when visibility was poor and visual
navigation aids, such as beacons, were useless.

Once technical problems were worked out, the Department of Commerce constructed 83
radio beacons across the country. They became fully operational in 1932, automatically
transmitting directional beams, or tracks, that pilots could follow to their destination.

Marker beacons came next, allowing pilots to locate airports in poor visibility.

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04 – Era of Demand & Innovations

4.4 DEVELOPED TWIN ENGINE PLANES (Boeing 247 and


Douglas DC-3) (1933)
As the demand grew for larger and faster aircrafts, manufactures began to produce twin
engine planes, such as Boeing 247 and the Douglas DC-3.

The Boeing 247, developed in 1933, was revolutionary for its time and became the first
modern passenger airline

4.4.1 FIRST MODERN PASSENGER AIRLINER (Boeing 247) (1933)

Boeing built what generally is considered the first modern passenger airliner, the Boeing
247. It was unveiled in 1933, and United Air Lines promptly bought 60 of them.

Based on a low-wing, twin-engine bomber with retractable landing gear built for the
military, the 247 accommodated 10 passengers and cruised at 155 miles per hour. Its
cabin was insulated, to reduce engine noise levels inside the plane, and it featured such
amenities as upholstered seats and a hot water heater to make flying more comfortable
to passengers.

Eventually, Boeing also gave the 247 variable-pitch propellers that reduced takeoff
distances, increased the rate of climb, and boosted cruising speeds. Although the Boeing
has being the first to enter the series of production, the 247 proved to have some serious
design deficiencies.

Figure 23: Boeing 247 Aircraft, first modern passenger airliner

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Figure 24: Boeing 247 interior with 10 pax capacity Figure: Boeing 247 cockpit

4.4.1.1 GENERAL CHARACTERISTICS OF BOEING 247

Manufacturer: Boeing

Used Primarily by: Boeing Air Transport

Number Built: 75

Crew: 3

Capacity for: 10 Passengers

Length: 51 feet 5 in.

Wingspan: 74 feet 1 in.

Height: 12 feet 5 in.

Empty Weight: 4055 kg

Loaded Weight: 6190 kg

Maximum Speed: 304 km/h

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4.4.2 DC-1, DOUGLAS AIRCRAFT COMPANY (1933)


Not to be outdone by United, Transcontinental & Western Air (TWA) went searching for
an alternative to the 247 and eventually found what it wanted from the Douglas Aircraft
Company.

Its DC-1 incorporated Boeing's innovations and improved upon many of them. This model
name DC-1 was derived from “Douglas Commercial”. Carl Cover took DC-1’s first flight
on 1st July 1933 and was introduced in December 1933.

It performed more than 200 flight tests and demonstrated its superiority over the most
used airliners by the time such as Ford Trimotor and Fokker Trimotor.

The DC-1 had a more powerful engine and accommodations for two more passengers
than did the 247. More importantly, the airframe was designed so that the skin of the
aircraft bore most of the stress on the plane during flight. There was no interior skeleton
of metal spars, thus giving passengers more room than they had in the 247.

The DC-1 also was easier to fly. It was equipped with the first automatic pilot and the first
efficient wing flaps, for added lift during takeoff. However, for all its advancements, only
one DC-1 was ever built.

Figure 25: DC-1 Aircraft and its narrow body interior

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4.4.2.1 GENERAL CHARACTERISTICS OF DC-1

Manufacturer: Douglas Aircraft Company

Used Primarily by: Transcontinental & Western Air

Number Built: 1

Crew: 2 Pilots

Capacity for: 12 Passengers

Length: 60 feet

Wingspan: 85 feet

Height: 16 feet

Empty Weight: 5343 kg

Loaded Weight: 7938 kg

Maximum Speed: 338 km/h

Developed into: DC-2

4.4.3 DC-2 (1934)


Douglas decided almost immediately to alter its design, adding 18 inches to its length so
it could accommodate two more passengers.

The new, longer version was called the DC-2 and it was a big success, but the best was
still to come

The role of DC-2 was for the passenger and military transport. It was also built by the
Douglas Aircraft Company. DC-2 took his first flight in 11th May 1934 and was introduce
in 18th May 1934 with Trans World Airlines. Currently DC-2 is an retired aircraft but it was
primarily used by Transcontinental & Western Air, KLM and Pan America Airways.

This they produced 198 DC-2 aircrafts since 1934 to 1939. DC-2 was developed from
DC-1 and was later developed into B-18 Bolo Douglas DC-3.

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Figure 26: DC-2 Aircraft

Figure 27: DC-2 Aircraft interior and its cockpit

4.4.3.1 GENERAL CHARACTERISTICS OF DC-2

Crew: 2–3

Capacity for: 14 Passengers

Length: 62 feet 6 in.

Wingspan: 85 feet

Height: 15 feet

Empty Weight: 5650 kg

Loaded Weight: 8420 kg

Maximum Speed: 338 km/h at 68,00 feet

Developed into: B-18 Bolo Douglas DC-3

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4.4.4 The DC-3 (1936)

Douglas Commercial – 3 (DC-3) is called the plane that changed the world, the DC-3 was
the first aircraft to enable airlines to make money carrying passengers. It was an Airliner
and a transport aircraft.

It was also built by the Douglas Aircraft Company. DC-3 took his first flight in 17th
December 1935 and was introduce in 1936 and it is still an active service aircraft. Douglas
Aircraft Company has built 607 DC-3 aircraft since 1936 to 1950.

As a result, it quickly became the dominant aircraft in the United States, following its debut
in 1936 with American Airlines (which played a key role in its design).

The DC-3 had 50 percent greater passenger capacity than the DC-2 (21 seats versus
14), yet cost only ten percent more to operate.

It also was considered a safer plane, built of an aluminum alloy stronger than materials
previously used in aircraft construction. It had more powerful engines, and it could travel
coast to coast in only 16 hours - a fast trip for that time.

Another important improvement was the use of a hydraulic pump to lower and raise the
landing gear. This freed pilots from having to crank the gear up and down during takeoffs
and landings.

For greater passenger comfort, the DC-3 had a noise-deadening plastic insulation, and
seats set in rubber to minimize vibrations. It was a fantastically popular airplane, and it
helped attract many new travelers to flying.

Figure 28: DC-3 Aircraft

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4.4.4.1 GENERAL CHARACTERISTICS OF DC-3


Crew: 2

Capacity for: 21 -32 Passengers

Length: 64 feet 8 in.

Wingspan: 95 feet 2 in.

Height: 16 feet 11 in.

Empty Weight: 7650 kg

Loaded Weight: 11,430 kg

Maximum Speed: 370 km/h at 8500 feet

4.4.5 B-17 -PRESSURIZED CABINS (1938)


Although planes such as the Boeing 247 and the DC-3 represented significant advances
in aircraft design, they had a major drawback. They could fly no higher than 10,000 feet,
because people became dizzy and even fainted, due to the reduced levels of oxygen
at higher altitudes.

The airlines wanted to fly higher, to get above the air turbulence and storms common at
lower altitudes. Motion sickness was a problem for many airline passengers, and an
inhibiting factor to the industry's growth.

The breakthrough came at Boeing with the Stratoliner, a derivation of the B-17 bomber
introduced in 1940 and first flown by TWA. B-17 was a Heavy bomber manufactured by
Boeing and introduced in April 1938 though it had its first flight in 28 th July 1938.

This B-17 Aircraft was primarily used by United Sates Army Air Forces and Royal Air
Forces. It continued its production from 1936 to 1945 and produced 12,731 B-17 aircrafts.
This was later developed into Boeing 307 Stratoliner.

It was the first pressurized aircraft, meaning that air was pumped into the aircraft as it
gained altitude to maintain an atmosphere inside the cabin similar to the atmosphere that
occurs naturally at lower altitudes.

With its regulated air compressor, the 33-seat Stratoliner could fly as high as 20,000 feet
and reach speeds of 287 miles per hour.

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4.4.5.1 GENERAL CHARACTERISTICS OF B-17

Crew: 10

Length: 74 feet 4 in.

Wingspan: 103 feet 9 in.

Height: 19 feet 1 in.

Empty Weight: 16,391 kg

Loaded Weight: 24,500 kg Figure 29: B-17 Bomber can accommodate 10


soldiers
Maximum Speed: 462 km/h at 20,000 feet

Figure 30: B-17 Bomber

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4.4.6 AMERICA’S FIRST JET PLANE (Bell P-59) (1943)

Whittle also improved his jet engine during the war, and in 1942 he shipped an engine
prototype to General Electric in the United States.

America's first jet plane - the Bell P-59 - was built the following year.

Figure 31: Bell P-59; America’s First Jet plane

4.5 FIRST AIRTRAFFIC CONTROL TOWER (1935)


The first air traffic control tower was established in 1935 at what is now Newark
International Airport in New Jersey

Figure 32: Oldest & first control tower in the world Figure 33: Newark International Airport

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CHAPTER
WORLD WAR II (1945)

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05 – World War II

Aviation had an enormous impact on the course of World War II and the war had a
significant impact on aviation.

The World War II began in September 1939. This caused the commercial aviation in
Western Europe come to a full stop.

Meanwhile, during 1940s, commercial aviation in central and South America continued to
grow, especially in Brazil, Argentina, Mexico and Colombia. Since they were unaffected
by the war they were able to establish widespread domestic networks as well as services
to neighboring countries.

As in the case of World War I, the demand of the Second World War provided a
remarkable push to Aviation technical department.

Military Needs again forced the advancements of aircraft technology, navigation services
and airport facilities.

Aircrafts of different types and sizes were built, different propulsion systems were
discovered, and the range and the speed of operations were increased.

The first jet engines were developed for military use, and Germany flew the world first
jet aircraft in 1939.

The advance technology resulted in significant improvements in aircraft design,


production and operational capabilities.

5.1 DEVELOPMENTS

5.1.1 INCREASED NUMBER OF AIRCRAFTS (1939)

There were fewer than 300 air transport aircraft in the United States when Hitler marched
into Poland in 1939.

By the end of the war, U.S. aircraft manufacturers were producing 50,000 planes a year.

For the first time in their history, the airlines had far more business - for passengers as
well as freight - than they could handle.

Most of the planes, of course, were fighters and bombers, but the importance of air
transports to the war effort quickly became apparent as well.

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Many of them also had


opportunities to
discover new routes,
gaining an exposure
that would give them an
absolutely broader
outlook at war's end.

While there were


numerous advances in
U.S. aircraft design
during the war, that Figure 34: Manufacturing Aircrafts in Large scale
enabled planes to go
faster, higher, and farther than ever before, mass production was the chief goal of the
United States.

The major innovations of the wartime period - radar and jet engines - occurred in Europe.

5.1.2 DEVELOPMENT OF RADAR (1940)

Figure 35: Radar used to locate aircrafts and maintain safe distance between them

Another technological development with a much greater impact on the war's outcome
(and later on commercial aviation) was radar.

The 1940s also saw the development of radar. British scientists had been working on a
device that could give them early warning of approaching enemy aircraft even before the
war began. This technology was used by the air traffic controllers to maintain a safe
distance between aircraft along commercial airways and at airports.

By 1940 Britain had a line of radar transceivers along its east coast that could detect
German aircraft the moment they took off from the Continent. British scientists also

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perfected the cathode ray oscilloscope, which created map-type sketches of nearby
countryside and showed aircraft as a beating light.

Americans, meanwhile, found a way to differentiate between enemy aircrafts and


associated aircrafts by fixing transponders onboard it was the final that waved their
identity to radar operators.

The installation of airborne radar equipment in commercial aircraft enhanced flight


safety by providing pilots with the means to detect and navigate around hazardous
thunderstorms.

5.1.3 ICAO IMPLEMENTATIONS (1944)

The elements for a full-fledged air transportation industry were coming together. Since
World War II, many countries have devoted national pride in the establishment and the
defense of state owned airlines, sometimes called flag carriers of legacy Airlines.

Figure 36: ICAO Logo The convention on international civil aviation, also
known as Chicago Convention, was signed in 1944 by
52 states.

It provides the basic framework for the progressive,


safe and orderly development of civil aviation on global
scale. The convention established the rules of airspace,
airplanes registration and safety. It also detailed the
rights of the signatories in relation to air travel and
created ICAO.

5.1.4 IATA IMPLEMENTATIONS (1945)

Today’s IATA was formed just after World War II in April 1945, in Havana, Cuba. At it’s
the founding of IATA had 57 members from 31 nations, mostly in Europe and North
America. The most popular task of IATA during its earliest days were technical, because
safety and reliability are fundamental to airline operations.

The industry requires the highest standards in air navigation, airport infrastructure and
flight operations.

The IATA signatory airlines provided vibrant input to the work of ICAO, as that
organization drafted its Standards and Recommended practices.

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CHAPTER
The Jet Age (1950)

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06 – The Jet Age (1950s)

Aviation was composed to advance rapidly


following the war, in large part because of the
development of jets, but still there were significant
problems to overcome.

During the 1950s, the developed jet aircrafts were


capable of carrying up to 200 passengers and the
airline became established as a popular means of
transportation.

With the introduction of long range aircraft in North


Atlantic, the ocean linear arose to be substituted
as a particular means of transportation. During this
time, tourist class service was introduced to
cross the north Atlantic, affecting both fares and
Figure 37: Jet age (The comer & 707
seating arrangements.
era)

Fares were generally 20-25 percent lower than the standard first class fares. In tourist
class configuration, the aircraft could accommodate an average of 25 percent more
passengers, compared to the first class seating arrangement.

The introduction of this service set the stage for the development of one of the world’s
largest industries, global tourism. Following the successful launch of tourist class fares,
many airlines then agreed to launch another new class of service-economy class.

Fares for this class of service were about 20 percent lower than tourist class. The lowering
of fares made air travel more affordable, allowing greater numbers of people to take to
the air.

The Jet Age had arrived, and other airlines soon were lining up to buy the new aircraft.

6.1 COMET (1952) – 36 seat British-made Jet

In 1952, a 36-seat British-made jet, the Comet, flew from London to Johannesburg, South
Africa, at speeds as high as 500 miles per hour.

Two years later, the Comet's career ended sharply following two back-to-back accidents
in which the fuselage burst apart during flight due to a result of metal fatigue.

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Figure 38: Comet – 36 seat British made jet

Figure 39: interior & the cockpit of a comet

6.2 B-47 & B-52 BOMBERS


The Cold War between the Soviet Union and the United States, following World War II,
helped secure the funding needed to solve such problems and advance the jet's
development. Most of the innovations related to military aircraft that later were applied to
the commercial sector.

For example, Boeing employed


a swept-back wing design for its
B-47 and B-52 bombers to
reduce drag and increase
speed.

Later, the design was


incorporated into commercial
jets, making them faster and
thus more attractive to
passengers.
Figure 40: B-47 Stratojet bomber

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6.3 BOEING 707 (1958)


The first U.S. passenger jet, the Boeing 707. It is a narrow-body Jet airliner which was
manufactured by Boeing Commercial Airplanes. Boeing 707 had its first flight in 20 th
December 1957 and was introduced in October 1958 with Pan American World Airways.
Since then it was primarily used by Trans World Airlines, Continental Airlines, Pan Am,
Saha Airlines.

There was 1,010 Boeing 707’s produced since 1958 to 1979. And this Boeing 707 was
then developed into Boeing E-3 Sentry, Boeing E-6 Mercury etc.

Its engines proved more reliable than piston-driven engines - producing less vibration,
putting less stress on the plane's airframe and reducing maintenance expenses. They
also burned kerosene, which cost half as much as the high-octane gasoline used in more
traditional planes. With the 707, first ordered and operated by Pan Am, all questions about
the commercial feasibility of jets were answered.

Boeing 707 had its specifications as 707-120, 707-320, 707-120B, 707-320B.

Figure 41: Boeing B 707-312B Air Lanka 1980 4R-ALA

6.3.1 GENERAL CHARACTERISTICS OF BOEING 707


707-120 707-320 707-120B 707-320B

Cockpit: 3-4 3-4 3-4 3-4

Passengers: 189 Pax 189 Pax 293 Pax 366 Pax

Length: 144 feet 6 in. 152 feet 11 in. 145 feet 1 in. 152 feet 11 in.

Empty Weight: 49,760 kg 54,432 kg 55,580 kg 66,406 kg

Loaded Weight: 112,037 kg 142,881 kg 116,570 kg 151,320 kg

Maximum 917 km/h at 960 km/h at 974 km/h at 890 km/h


Speed:

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CHAPTER
Growth & Setbacks 1960s

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07 – The Jet Age (1950s)

In the 1960s the passenger airlines industry experienced further global growth. Air travel
became a large and a growing industry which facilitated economic growth, world trade,
international investment and tourism and is therefore central to the globalization take
place in many other industries.

Scheduled cargo traffic also made impressive gains. Travel for both business and leisure
purpose grew strongly worldwide. Government in developing countries realized the
benefits of tourism to their national economies and spurred the development of resorts
and infrastructure to appeal tourists, mainly from North America and Western Europe.
And then it started travelling to Africa, the Pacific and Asia as jet aircraft enhancements
improved the speed, safety and comfort of air travel.

Tourist traffic from japan began to develop at the end of this decade and into the next.
Meanwhile, the Caribbean countries became a favorite winter holiday destination. Middle
East carriers modernized their fleets and were able to increase their share of the
international airline market. At the same time, airline hijacking, or air piracy, became a
serious issue in the 1960s.

By the time the worldwide airline industry attracted more attention from public,
governments and many other stakeholders such as aircraft manufacturing companies due
to the vast transportation links that were forming continuously. The Air traffic, airline and
airport infrastructure, resources and scientific attention to the airline industry were greatly
improved. This raised up new aircraft manufacturing companies and new airports were
built while a vast range of different aircraft models entered into the market.

Figure 42: Boeing B 707-312B Air Lanka 1980 4R-ALA

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CHAPTER
Era of Supersonics (1970s)

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08 – Era of Supersonics (1970s)

When moving into 1970s the worlds scheduled airlines had to go through a slower growth
rate than expected. During this time the airline industry was faced with heavy capital
investments, escalating fuel costs and global inflation. Hijacking throughout the world in
1970s was at all-time high due to political unrest in certain places in the world.

A complete review of air security processes followed resulting in stricken policies at


airports. Most major airlines has now replaced propeller-driven planes with Jet transport.
Pan American Airways became the first airline to offer Jumbo Jet service, using Boeing
747.

In 1976, France and Great Britain began passenger service with their supersonic
transport, the Concorde. The end of this era saw the start of deregulation, a move which
would extremely change airline business operations.

8.1 BOEING 747 FIRST WIDE-BODY JET AIRCRAFT (1970)

1969 marked the introduction of another innovative aircraft, the Boeing 747, which, again,
Pan American Airways was the first to purchase and fly in commercial service. Boeing
747 is also called the Jumbo Jet or the Queen of the Skies.

It was the first wide-body commercial jet Airliner and cargo aircraft originated from United
States. It is also manufactured by the Boeing Commercial Airplanes which is still in
service. Boeing 747 took its first flight in 9h February 1969 and 22 nd January 1970 with
Pan Am.

Boeing 747 is still being produced since 1968 and there are more than 1500 Boeing 747
Jetliners produces by now. Boeing 747 was later developed into Boeing YAL-1 and
Boeing Dreamlifter. Primary users of Boeing 747 is British Airways, Korean Air, Lufthansa
and China Airlines.

Boeing 747 being the first produce wide body aircraft with two aisles, a unique upper deck
over the front section of the fuselage, and four engines makes it one of the most
recognizable aircraft in the world.

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8.1.1 GENERAL CHARACTERISTICS OF BOEING 747

747-100B 747-200B 747-300 747-400 747-8i

Cockpit: 3 2

Passengers: 480 Pax 565 Pax 605 Pax

Length: 231 feet 10 in.

Empty 162,400 174,000 178,100 184,600 kg 214,503 kg


Weight: kg kg kg

Loaded 333,390 377,842 kg 412,775 kg 447,696 kg


Weight: kg

Max. Speed: 955 km/h 988 km/h 988 km/h

Figure 43: Air Lanka Boeing 747-400

Figure 44: Sri Lankan Airlines Boeing 747-400

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8.2 DC-10 & L-1011 TriStar (1970)


Recognizing the economies of scale to be gained from larger jets, other aircraft
manufacturers quickly followed suit.

Douglas built its first wide-body, the DC-10, in 1970, and only a month later, Lockheed
flew its contender in the wide-body market, the L-1011.

The DC-10 was manufactured by McDonnell Douglas and took it first flight in 29th August
1970 and introduced in 5th August 1971 with American Airlines. DC-10 is still in service
and its primary users are FedEx Express, KF Cargo, Transportes Aereos, Bolivianos and
United Airlines. DC-10 started producing since 1968 to 1988. And there are 386 aircrafts
produced. It was being later developed into McDonnell Douglas MD-11

Figure 45: FedEx Express DC-10 Aircraft

The L-1011 TriStar was another wide body Airliner manufactured by Lockheed
Corporation and took its first flight in 16th November 1970 and was introduced in 26th
April 1972 with Eastern Airlines. It was being produced since 1968 to 1984 and there are
250 L-1011s built.

Both of these jets


had three
engines (one
under each wing
and one on the
tail) and were
smaller than the
747, seating
maximum of 380
Figure 46: Air Lanka Lockheed L-1011 TriStar passengers.

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8.3 CONCORDE (1976)


During the same period of time,
efforts were underway in both the
United States and Europe to build a
supersonic commercial aircraft.

A consortium of West European


aircraft manufacturers first flew the
Concorde two months later and
eventually produced a number of
Figure 47: Concorde 1976 - 2003 those fast, but small, jets for
commercial service.

Concorde is a Supersonic Transport jetliner originated from United Kingdom and France.
This was manufactured by BAC Sud Aviation. It took its first flight in 2nd March 1969 and
was introduced in 21th January 1976 which is now retired and was used by British Airways
and Air France.

Figure 48: Air France Concorde Aircraft

Concorde had a maximum speed over twice the speed of sound (2,180 km/h) with a
seating capacity for 92 to 128 passengers. It continued flying for 27 years and retired
in 2003. It is one of only two supersonic transports to have been operated commercially;
the other was Soviet-built Tupolev Tu-144 which was operated for a very small period.

U.S. efforts to produce a supersonic passenger jet, on the other hand, stalled in 1971 due
to public concern about its expense and the sonic boom produced by such aircraft.

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CHAPTER
The Airline Industry in 1980s & 1990s

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09 – 1980s & 1990s

In 1978, the airline industry, which had been heavily regulated and controlled, was
enlightened from government inaccuracy and released to the impulses of the
marketplace. As a result, the industry underwent significant change during the 1980s and
1990s.

At the same time, several major air disasters took place, including the 1996 ValuJet and
TWA 800 aircraft crashes. The terrorist attacks of September 11, 2001, created further
change on the airline industry.

Just weeks after the attacks, President George w. bush signed the Air Transportation
Safety and System Stabilization Act (ATSSSA). According to a statement released by
President Bush on September 22, 2001, the act was intended to ensure passenger safety
and to "assure the safety and immediate stability of the nation's commercial airline
system."

9.1 DEREGULATION

When the first commercial airlines appeared after World War I, fewer than 6000
passengers a year traveled by air. By the 1930s, the Big Four—Eastern Air Lines, United
Air Lines, American Airlines, and Trans World Airlines (TWA)—dominated commercial air
transport.

These companies had gathered exclusive rights from the federal government to fly
domestic airmail routes, and Pan American held the rights to international routes. The
hold of these four airlines on their beneficial contracts went almost unchallenged until
deregulation in 1978.

Even after the formation of the Civil Aeronautics Board (CAB) in 1938, formed to license
new airlines, grant new routes, approve mergers, and investigate accidents, the Big Four
and Pan Am continued to be guaranteed permanent rights to these routes. In fact, no new
major scheduled airline was licensed for the next four decades.

In October 1978, Congress passed the Airline Deregulation Act. The government's goal
was to promote competition within the industry. The act gave airlines essentially open
rights to enter new routes without approval. The companies could also exit any market
and raise and lower fares at will.

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The immediate effect of deregulation was a drop in fares and an increase in


passengers. New cut-rate, no-frills airlines, such as People Express Airlines and New
York Air, offered travelers the lowest fares ever seen in the industry. Forced to compete
to fill their planes, the larger companies lowered their prices as well. Therefore from 1987
to 1989 there were more than one billion passengers travelled by air on an annual basis.
This caused an increase in the passenger traffic in the air and on the ground.

After deregulation, the airlines also came to realize that they needed a more efficient way
to book reservations and issue tickets. It is difficult to imagine, in these days of highly
sophisticated computers and split-second communications, that until the late 1970s and
early 1980s, airline schedules were contained in large printed volumes, reservations were
taken over the telephone and tallied manually at the end of each day, and tickets were
written by hand.

Through skillful manipulation of the data, the airlines were able to put competitors at a
disadvantage. For example, the airline that owned the system might enter the data so
that all its flights to a particular destination appear on the screen before any flights of a
competitor.

In a further attempt to win loyalty from passengers, the large airlines instituted frequent-
flyer programs, which awarded free tickets to travelers after they logged a certain
number of miles flown with the company. The combination of hubs, central computer
reservation systems, and frequent-flier programs made the major airlines almost
invulnerable in large markets.

9.2 SAFETY

The crowding of airspace caused by increased air travel, crowded hub airports that create
security risks, and over-worked and sometimes poorly trained air traffic controllers. Yet,
statistically, passengers are no more likely to die in a plane crash since deregulation than
they were before it. Still, critics maintain that, despite the airlines' and the government's
efforts to assure the traveling public to the contrary, air safety is in need of substantial
improvements.

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9.3 IMPORTANT EVENTS THAT TOOK PLACE IN 1990s

1978 Airline Deregulation Act is signed into law, removing government control
over fares, routes and market entry

1979 First frequent flier program introduced

1980 Almost half of total flights worldwide took place in the U.S.

1981 11,400 air traffic controllers are fired by President Reagan after walking
off the job on strike when labor negotiations fail

1993 First ticketless travel becomes available

1995 Boeing produces twin-engine 777, the first aircraft produced via
computer-aided design and engineering

1995 First airline tickets are sold via the Internet

1998 Smoking is banned on all domestic flights

1999 First web-based passenger check-in and online boarding passes

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CHAPTER
The Airline Industry Since 2000

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10 – Airline Industry Since 2000s

Since 2000, the air transportation industry has faced several serious challenges. Airlines

have increasingly become targets of terrorism related to international political tensions.

The tragedy of September 2001 involving terrorist’s use of four aircrafts in the United

States and the rise of terrorists targeting airports has had serious economic

consequences on the industry. Other factors such as the SARS epidemic of 2003 and

Avian Flu have also had a negative impact. These factors, coupled with a serious
economic downturn, have resulted in the reduction of air travel.

However, despite these setbacks, experts are optimistic and predict growth of the airlines
industry for the next decade. The reasons for optimism include the potential economic

growth worldwide and the resulting increase in the disposable income, continued
deregulation and the on-going development of low cost carriers.

10.1 SOME IMPORTANT INCIDENTS IN 2000S

2007:- Airbus A380 enters commercial service capable of carrying 850 passengers

2009:- Transportation Security Administration formally accepts airport scanners as the


primary method of pre-flight screening

2011:- Airbus announces signing of the largest aircraft deal in history based on aircraft
ordered: 200 planes ordered by Air Asia

By the year of 2006 there were 2000SAirlinesSoperatingSwith moreSthanS23,000S


aircrafts, providingSserviceStoSoverS3700Sairports.SS

GrowthSofSworldSairStravelShasSaveragedS approximatelyS5%SperSyearSoverStheS
pastS30SyearsS

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