AIRLINE BUSINESS PRELIM REVIEWER

IATA TRAFFIC CONFERENCES

TRAFFIC CONFERENCE 1
• defined as the entire Western Hemisphere
• TC1 is categorized into 4 sub-areas:

1. North America
• Alaska
• Canada
• Continental USA
• Hawaii
• Mexico
• Saint Pierre
• Miquelon

2. Central America
• Belize
• Costa Rica
• El Salvador
• Guatemala
• Honduras
• Nicaragua
3. The Caribbean
• Anguilla
• Antigua and Barbuda
• Aruba
• Barbados
• Cayman Islands
• Cuba
• Dominica
• Dominican Republic
• Grenada
• Guadeloupe
• Haiti
• Jamaica
• Martinique
• Montserrat
• Netherlands Antilles
• Saint Kitts and Nevis
• St. Lucia Saint Vincent and the Grenadines
• Trinidad and Tobago
• Turks and Caicos Islands
• Virgin Islands (British)

4. South America
• Argentina
• Bolivia
 • Brazil
• Chile
• Colombia
• Ecuador
• French Guiana
• Guyana
• Panama
• Paraguay
• Peru
• Suriname
• Uruguay
• Venezuela

TRAFFIC CONFERENCE 2
• Includes the entire European continent and part of western Russia up
to the Ural Mountains
• TC2 has 5 sub-areas:

1. Europe
• Albania
• Algeria
• Andorra
• Armenia
• Austria
• Azerbaijan
• Belarus
• Belgium
• Bosnia and Herzegovina
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Faroe Islands
• Finland
• France
• Georgia
• Germany
• Gibraltar
• Greece
• Hungary
• Iceland
• Ireland
• Italy
• Latvia
• Liechtenstein
• Lithuania
• Luxembourg
• Macedonia (FYROM)
• Malta
• Monaco
• Moldova
• Morocco
• Netherlands
• Norway
• Poland
• Portugal
• Romania
• Russia (west of urals)
• San Marino
• Slovakia
• Slovenia
• Spain
• Sweden
• Switzerland
• Tunisia
• Turkey
• Ukraine
• United Kingdom
• Yugoslavia

2. Africa

2.1. Central Africa

• Malawi
• Zambia
• Zimbabwe

2.2. Eastern Africa

• Burundi
• Djibouti
• Eritrea
• Ethiopia
• Kenya
• Rwanda
• Somalia
• Tanzania
• Uganda

2.3. Western Africa

• Angola
• Benin
• Burkina Faso
• Cameroon
• Cape Verde
• Central African Republic
• Chad
• Congo (Brazzaville / Kinshasa)
• Côte d'Ivoire
• Equatorial Guinea
• Gabon
• Gambia
• Ghana
• Guinea
• Guinea Bissau
• Liberia
• Mali
• Mauritania
• Niger
• Nigeria
• São Tomé and Príncipe
• Senegal
• Sierra Leone
• Togo

3. Middle East
• Bahrain
• Cyprus
• Egypt
• Iran
• Iraq
• United Arab Emirates
• Israel
• Jordan
 • Kuwait
• Lebanon
• Oman
• Qatar
• Saudi Arabia
• Sudan
• Syria
• Yemen

4. Indian Ocean Islands

• Comoros
• Madagascar
• Mauritius
• Mayotte
• Reunion
• Seychelles

5. Libya

TRAFFIC CONFERENCE 3
• the balance of the world
• includes the rest of Russia, east of the Ural Mountains, the rest of Asia
beginning with Afghanistan and Pakistan, plus Australia, New Zealand, all islands
in the Pacific Ocean except for the Hawaiian Islands, Johnston Island and Easter
Island (tc1)
 • TC3 is categorized into 4 sub-areas: South East Asia Sub-area (SEA),
South Asian Subcontinent Sub-area (SASC), Japan & Korea (JAP/KOR) and South
West Pacific Sub-area (SWP)

1. South East Asia

• Brunei Darussalam
• Cambodia
• China
• Christmas Island
• Cocos Islands
• Guam
• Hong Kong
• Indonesia
• Kazakhstan
• Kyrgyzstan
• Laos
• Macau
• Malaysia p
• Marshall Islands
• Micronesia
• Mongolia
• Myanmar
• Northern Mariana Islands
• Palau
• Philippines
• Russia
• Singapore
• Taiwan province of China
• Tajikistan
• Thailand
• Turkmenistan
• Uzbekistan
• Vietnam

2. South Asian Subcontinent

• Afghanistan
• Bangladesh
• Bhutan
• India
• Maldives
• Nepal
• Pakistan
• Sri Lanka

3. Japan / Korea
• Japan
• North Korea
• South Korea

4. South West Pacific

• American Samoa
 • Australia
• Cook Islands
• Fiji
• French Polynesia
• Kiribati
• Nauru
• New Caledonia
• New Zealand
• Niue
• Papua New Guinea
• Samoa
• Solomon Islands
• Tonga
• Tuvalu
• Vanuatu
• Wallis & Futuna Islands

FREEDOMS OF THE AIR

• a set of commercial aviation rights, granting a country' swirling
privilege to enter and land in another country's airspace

1ST FREEDOM
• right of an airline to fly over a foreign country without landing
EX: Singapore Airlines is carrying passengers from Singapore, bound for Manila,
overflying Vietnam
2ND FREEDOM
• allows international airlines to make technical stops in foreign
countries without loading / unloading passengers / cargo
• usually made for refueling, but can also be used for general
maintenance / emergency situations
EX: Singapore Airlines fly from SIN to ROM, stops ins DXB for refuel

3RD FREEDOM
• allows airlines to deliver passenger from its home country to a foreign
country

4TH FREEDOM
• allows airlines to deliver passengers from a foreign country to its
home country

5TH FREEDOM
• referred to as 'beyond rights'
• allows airlines to carry passengers from its home country to a foreign
country then drop off passengers, pick up new ones, and carry them to a third new
country
EX: Malaysia Airlines flying from Kuala Lumpur to Auckland, with stopover in
Sydney

6TH FREEDOM
• allows an airline to operate flights between two foreign countries,
provided it touches down to its own country
EX: Malaysia Airlines is carrying passengers from Los Angeles to Manila with
stopover in Kuala Lumpur

7TH FREEDOM
• allows an airline to operate a flight that originates in a foreign
country, bypasses its own nation and lands in another destination
EX: Thai Airways is carrying passengers from Los Angeles to Manila on non-stop
flight

8TH FREEDOM
• allows airlines to fly between two points in a foreign country

9TH FREEDOM
• known as 'stand alone cabotage'
• very similar to 8th freedom, except for the distinction that airlines
don't have to fly to their home country after connecting two foreign destinations in
the same country

ROLES OF THE AIRLINE INDUSTRY ON THE NEEDS OF THE

PASSENGERS

TRANSPORTATION - competing with rail, road & water transports

COMMUNICATION - assisting people to meet ftf, reuniting families, friends &
loved ones, competing with Internet communication
LEISURE - provides competitive leisure opportunities for people with disposable
income
LOGISTICS - providing fact transport of goods, providing lower warehousing
overhead for shippers & carrying vital supplies to those in need
INFORMATION - specially in the early years of business, many airlines found
financial support from moving letters & documents
SELLING SERVICES - successful airlines give birth to different skills &
services, such as aircraft engineering, airport ground handling & data processing &
management
LINKING ECONOMIES - plus the fact that it creates other jobs & develop
markets & link economies, as IATA puts it, airlines is a business of freedom

GLOBAL INDICATORS
• two-letter code that appears next to the fare, and tells what route the
travel must take

Western Hemisphere (WH)

• pertains to any travel route wholly within TC1
EX: route begins from Canada, transits USA, and end in South America

Eastern Hemisphere (EH)

• route is wholly within EH or if no oceans are traversed
EX: route begins in Delhi, transits Bangkok, and end in Beijing

Pacific Route (PA)

• travel between TC3 and TC1 via the Pacific Ocean
EX: Honolulu to Manila, passing the Pacific Ocean
Atlantic Route (AT)
• any travel between TC1 and TC2 via the Atlantic Ocean
EX: USA to UK, crossing the Atlantic Ocean

Atlantic-Pacific Route (AP)

• any travel between TC2 and TC3 via both Atlantic and Pacific Ocean
via TC1
• called as the 'round-the-world' as direction route touches all TC areas
in the world

HISTORICAL HIGHLIGHTS OF AVIATION

CHAPTER 1 (Invention of Airplane)

THE DREAM OF HUMAN FLIGHT

• heavier-than-air flying was first envisioned by LEONARDO DA
VINCI
• drew plans for a flying machine which he called ORNITHOPTERS
• around 1490

THE FIRST SUCCESSFUL GLIDER

• GEORGE CAYLEY established the modern notion of a fixed-wing
aircraft in 1799
• flown by his reluctant servant in 1853
• this glider does not have a control
THE FIRST MANNED FLIGHT
• between 1891 - 1896, OTTO LILIENTHAL, who was a German
prisoner made the first controlled flights
• shifting his body weight to steer a small glider

THE INVENTION OF AERIAL AGE

• the first successful airplane
• the age of flight began
• WILBUR & ORVILLE WRIGHT, experiment with aerodynamic
surfaces to control an airplane in flight
• DEC. 17, 1903 in Kitty Hawk, North Carolina

THE FIRST PASSENGER AIR SERVICE

• dirigibles also called blimps, zeppelin, or air ships
• began in 1910, operated between major cities in Germany
• FERDINAND VON ZEPPELIN, set up the first commercial airline in
1912
• transported more than 34,000 passengers before WW1
• 62 successful flights

FIRST HEAVIER-THAN-AIR UNAIDED TAKE OFF

• in 1906
• ALBERTO SANTOS-DUMONT, made the first significant flights of
a power r airplane in Europe with his No. 14-bis

THE FIRST FLIGHT ACROSS ENGLISH CHANNEL (1989)

• THE BLERIOT XI
 • first european airplane to be used for military campaign (1911)
• first ever for aerobatics (1913)

FIRST FOUR-ENGINE AIRPLANE IN THE WORLD

• in 1934, a four-engine plane designed by Russian engineer IGOR
SIKORSKY was flying
• was the first plane to have a glass-enclosed passenger cabin that
includes four seats, a table, and a washroom

THE WORLD'S FIRST REGULAR SCHEDULED AIR LINE

• the St. Petersburg-Tampa airport line was the first scheduled
commercial airline operated
• operated with a Benoist Type XIV flying-boat
• The flight was conducted by pilot Tony Jannus on January 1, 1914
• lasted only 3 months

THE WORLD'S FIRST SUSTAINED PASSENGER AIRLINES

• started in Europe in 1919
• Germany, Deutsche Luft Reederei (DLR)
• ancestor of the present day Lufthansa

FIRTS MODERN AIRPLANE

• The Boeing model 247 is considered the first modern airliner
• are all metal twin engine, retractable gear, streamlined airliner airliner
• could hold 10 passengers in air condition comfort
THE FIRST PASSENGER AIRLINE CAPABLE OF MAKING A PROFIT
FOR ITS OPERATOR WITHOUT POSTAL SUBSIDY
• In 1933, Douglas introduced to 12-passenger twin- engine Douglas
DC-1
• In September, the DC-1 joins the TWA fleet
• DC-3 range of nearly 1,500 miles is more than double that of the
Boeing 247

AIRMAIL TO AIR SERVICES IN U.S.

• facilitating the emergence if continental and intercontinental
enterprises
• also subsidized the emergence of the first major US passenger airlines

CHAPTER 2 (Significant Events)

FIRST TRANSATLANTIC FLIGHT

• CHARLES LINDBERGH in 1927
• production of improved airplanes designed for commercial airlines

JET AGE
• From late 1903s to late 1950s
• the jet age hits its first mark in 1958
• not until 1960s that aircraft such as Boeing 707s and DC-8 were fully
utilized in the US travel industry
• the 1970s pave the way for 747 jumbo jets
• the 'concorde' , a supersonic jet, entered the passenger service
CHAPTER 3 (Philippine Aviation Milestone)

1911: THE FIRST POWERED FLIGHT IN THE PHILIPPINES

• The 1911 Manila Carnival Celebration, several aerial troops from the
US arrived in the Philippines to perform a flight exhibition in the Pacific
• pilot JAMES 'BUD' C. MARS, used the Schriver Skylark
• TODD C. SCHRIVER, built the Skylar biplane used in the
Philippines on FEB. 11, 1911

THE FIRST CROSS-COUNTRY FLIGHT IN THE PHILIPPINES

• Red Devil biplane was developed by CAPT. THOMAS S.
BALDWIN, a famous balloonist during the Manila Carnival
• Baldwin made the first cross-country flight in the Philippines six days
later
• On FEB. 27, 1911 he flew 10 miles out of Manila in his Red Devil
biplane

1919: FIRST AIRLINE OF THE PHILIPPINES, FIRST AIRMAIL

DELIVERY
• NOV. 1919, MAJOR JOSEPH E.H. STEVENOT & ALFRED J.
CROFT formed the first airliner in Philippine history
• PHILIPPINE AIRWAY SERVICE INC. (PASI)

FIRST CHARTER SERVICE - TINSAY AIR CHARTER SERVICE

• 1925, JOSE TINSAY bought 3 aircrafts
• first regular air services were launched in Iloilo (central PH)
 • said to be the birthplace of Filipino commercial air transportation

FIRST GOVERNMENT AIRLINE

• July 7, 1920, the Council of State approved the establishment of the
Philippine Air Service (PAS) to fly passengers and mail in the country

PAI: 3RD AIRLINE OF THE PHILIPPINES, THE EARLY ROOTS OF PH

AIRLINES
• NOV. 1927, Philippine Airways Inc. (PAI) was organized
• plan to fly passengers and cargo but none of the plans materialized
• the name was changed to Philippine Airlines (PAL) on FEB. 27, 1941

1930: FIRST AIRLINE TO LAUNCH SCHEDULED SERVICES IN THE PH

- PATCO
• DEC. 3, 1930, foreign businessman incorporated Philippine Aerial
Taxi Company

FIRST FILIPINO-OWNED PRIVATE AIRLINE - INAEC

• 1932, Don Eugenio H. Lopez Sr. , founded the Philippines second
commercial airline
• Iloilo Negros Air Express Co. (INAEC)

1931: ADVENT COMMERCIAL AVIATION REGULATIONS

• legislative act no. 3909
• air commerce act (passed by the PH Congress)
• NOV. 20, 1931
• amended by act 3996 to include licensing of airmen and aircraft
1941: PHILIPPINE AIRWAYS TO PHILIPPINES AIRLINES
• the carrier was reformed on MAR. 13, 1941
• started operations on MAR. 15, 1941
• PAL is the oldest airline in Asia operating under its original name

1974: ONE AIRLINE POLICY

• PAL was told to absorb the aircraft and staff of Filipinas Orient
Airlines (FOA) and Air Manila Inc. (AMI)
• PAL becomes a monopoly in domestic air travel after Pres. Ferdinand
Marcos Sr. ordered the for closure of two other airlines

1995: Liberalization of Philippine Airline Industry

• executive order 219, under Pres. Fidel Ramos in 1995, has established
the domestic and international civil aviation liberalization policy in the Philippines

HISTORICAL KEY EVENTS OF AIRLINE INDUSTRY

AIR DEREGULATION ACT OF 1978

• 1938, Civil Aeronautic Board (CAB) was notoriously known for its
bureaucratic complacency
• this all changed when in 1978, Pres. Carter signed the Airline
Deregulation Act, this act abolished the CAB by 1984, Federal Aviation
Administration (FAA) took over regulation of airline safety

9/11 Terror Attack (SEPT. 11)

 • series of coordinated airline hijacking and suicide attacks by some Al-
Qaeda Islamic extremist group in 2001

THE PARIS CONVENTION OF 1919

• several meetings were held to draft an international code of
regulations to govern commercial aviation thereafter

WARSAW CONVENTION 1929

• for the unification of certain rules relating to international air
transportation applies to any international transportation of persons, baggage, or
merchandise by aircraft for compensation

ICAO AND CHICAGO CONVENTION 1944

• done at Chicago on DEC. 7, 1944
• aimed to achieve a smoother flow of passengers, baggage, and cargo
by airlines and countries

FORMATION OF ICAO
• based in Montreal, Canada
• became one of the specialized agency of the United Nations

MONTREAL CONVENTION 1999 (MC99)

• was signed in 1999 and replaced the Warsaw Convention
• establishes airline liability in the case of death or injuries to
passengers
• unifies all of the different international treaty regimes that developed
haphazardly in 1929
ORGANIZATIONS AND GOVERNMENT AGENCIES

FEDERAL AVIATION ADMINISTRATION (FAA)

• independent government agency established since 1958
• main US government agency tasked to handle actual operations of the
air transportation system
• influenced similar agencies worldwide with regards to air traffic
operations

TRANSPORTATION SECURITY ADMINISTRATION (TSA)

• was created in 2001 as a response to the 9/11 attack
• has a major role in the areas of aviation safety and security

NATIONAL TRANSPORTATION SAFETY BOARD (NTSB)

• independent US government agency charged with investigating every
civil aviation accident in the US

ASSOCIATION OS ASIA PACIFIC AIRLINES (AAPA)

• established in 1966
• formerly Orient Airlines Association Inc.
• international airline is based in the Asia-Pacific
• region based in Kuala Lumpur, Malaysia

CIVIL AVIATION AUTHORITY OF THE PHILIPPINES (CAAP)

• independent Philippine government agency
 • under the Department of Transportation
• responsible for implementing policies on civil aviation to assure safe,
economic and efficient air travel

CIVIL AERONAUTICS BOARD (CAB)

• an attached Philippine government agency of the Department of
Transportation
• mandated to regulate the economic aspect of air transportation

AIRLINES OF THE PHILIPPINES

Full Service
• Philippine Airlines (flag carrier)
Low-cost
• Cebu Pacific
• PAL Express
• Royal Air Philippines
• Philippine AirAsia
Regional
• AirSWIFT
• Air Juan
• Cebgo
• Pan Pacific Airlines
• Sky Pasada
• SkyJet
 • Sunlight Air

Charter
• Aero Majestic Airways
• Air Link International Airways
• Air Republiq
• INAEC
• Pacifcair
• South Phoenix Airlines
• Subject Seaplane
• South East Asian Airlines International

IATA CODES