additional categories for landing fees,
Airline Business - AY 2223 2nd
Semester (Orlina, Sheila Marie)
Topic 3: Air Industry I –
Management structure and
Specialized tasks in Airline
operations
Airline Cost Considerations
Revenue maximization is management
of the operating expenses because
revenue minus the expenses will give
you your optimum operating profit.
The airlines are also minding the
operating expenses that they incur each
time the plane departs.
1. Administrative cost categorization
It reports funds spent for labor (salaries),
materials & services used as inputs for
the "production" of the airline's output.
salaries and related fringe benefits for
all personnel, including general
management, flight personnel,
maintenance labor, aircraft and traffic
handling personnel, and other
personnel;
materials purchased, for example,
aircraft fuel and oil, maintenance
materials, passenger food, and other
materials;
services purchased, such as advertising
and promotions, communications,
insurance, outside maintenance,
commissions, and other services; and
rentals (including aircraft), depreciation
(including aircraft), and other expenses.
2. Functional cost categories
Allocates costs to different functions
within the airline's operation.
3 major functional cost:
1. Flight operating costs
Also known as "Airline Operating costs"
Include all expenses associated with
operating aircraft
Represent the largest proportion of an
airline's operating expenses:
a. Flying operations (expenses
incurred directly in the in-flight
operation of aircraft including all
costs associated with flight crew
(salaries and benefits paid to
pilots and fuel costs)
b. Maintenance (all expenses
specifically identifiable with the
repair and upkeep of aircraft and
equipment. Ex. routine
maintenance, extensive major
checks, labor and parts)
c. Depreciation & amortization
(capital cost of the airline's assets
specifically, aircraft over their
expected lifetime)
2. Ground operating costs
Incurred at the airport stations in
handling passengers, cargo and aircraft
or by the airline in making reservations
and ticket sales and are directly incurred
in providing transportation services to
the customer.
a. Aircraft servicing (handling
aircraft on ground, landing fees)

b. Traffic servicing (processing
passengers, baggage and cargo
at airports)
c. Reservation and sales costs
(airline reservation centers, ticket
offices, travel agency
commissions, and distribution
system fees)
3. System operating costs
Indirect operating costs remaining after
ground operating costs are deducted.
They are not directly associated with
supplying the transportation service but
are more of a corporate overhead
expense.
a. Passenger service (meals, flight
attendants, in- flight services)
Suppose a particular flight from Origin-
Destination has its operating costs
amounting to USD500.
How much will the system operating
costs for this flight be?
● $300 As per ICAO 2017, Functional
● $150 Cost Comparison, the rule of
● $200 thumb percentage should be.
● $100
Flight Operating Costs = 50%,
Ground operating costs= 30%,
System operating Costs = 20%
How to solve?
500 x .30 (30%) = $150
Topic 5: Route Network and
Alliances
Network Management

b. Advertising & publicity

Network
expenses

A large system consisting of many

c. General & administrative
similar parts that are connected to allow
expenses
movement or communication between
or along the parts, or between the parts
d. Transport-related (fees paid to
and a control centre.
regional airline partners for
providing regional air service,
Network is the key strategic factor of
extra baggage expense)
airlines, as it is the main driver for
generating revenue and cost as well as
As per ICAO (2017), Functional Cost
source of competitive strength or
Comparison, the rule of thumb
weakness.
percentage should be:

Carriers determine network supply

Flight Operating Costs = 50%,
through a process called Network
Ground operating costs= 30%,
Management.
System operating Costs = 20%

Network Strategy
Ex. Total Operating cost of an airline is
$800
Highest level of network decision with 2
or 3 years' horizontal time ahead, which
Flight Operating Costs = $400
includes fleet development, financial
Ground Operating Costs = $240
targets and alliances for passage, cargo
System Operating Costs = $160
and maintenance production.

Ex:
• Market Development
 • Financial and air political context. The network structure ranges from fully-
• Competition connected or point-to-point (PP) to hub-
• Target to- spoke(HS) to alliance (fully-
• Fleet Planning contracted), or to mix of these strategies

Network Design

The translation of the network strategy

into network configuration, connectivity,
and hub developments.

It includes the long and medium term

fleet planning and supply issues such as:

Hub-and-spoke (HS)
1) Frequency
2) Aircraft rotation
The HUB is the Center airport of the
airlines where all its route network
Alliances
connects.
Aviation industry arrangement between
SPOKES are airports that usually do not
two or more airlines agreeing to
have major traffic for the airline.
cooperate on a substantial level.

A Hub-and-Spoke network connects

Network can be broadened by
every location through a single
incorporating the departures of alliance
intermediary location called a hub.
partners to increase the offer to the
customers.
An airline schedules most of its flights
from various cities or "spokes" to arrive
Network Planning
around the same time into a designated
hub.
Refers to short term adjustment of
schedules and production planning on a
The airline then schedules most of its
day-to-day basis, which takes place
flights to depart 1-3 hrs. later to other
every semester.
destinations or "spokes".
1. Connection time at the hub
Benefits:
2. Changes of the aircraft size
3. Crew rotation planning
1. Centralizing operations at the
4. Punctuality and baggage irregularity
hub leads to economies of scale.
5. Fleet maintenance
The airline can center most of its
maintenance and operations activities in
the hub airport since all aircraft will have
to fly to that airport.

2. Schedule frequency is high and

NETWORK DEFINITIONS
aircraft capacity fully used.
Since there are less routes, airlines can
Point-to-Point versus Hub-and-Spoke
schedule more frequent flights along
each route and make full use of the
capacity of each plane.
The aircraft flying the routes are more
likely to fly with higher loads since
passengers coming from many different
destinations are able to fill them.
Drawbacks:
1. Inflexible and schedule reliability
low
Changes at the hub, even in a single
route, may have unexpected
consequences throughout the network.
Interdependent on other flights which
can lead to "domino effect" where one
delay can multiply into other delays
throughout the network.
2. Aircraft/asset utilization is low
a Flights from one airport usually have
to feed into downstream flights so
schedules have to match so there are no
missed connections.
Leads to lower aircraft utilization.
3. High cost of operation
Can have a large impact on fuel
consumption per passenger mile.
Taxiing, climbing and descending burn
more fuel than cruising which is why
taking multiple flights to reach a
destination is more fuel-heavy than
flying direct.
4. Fleet requirement is complex.
Large range in seating capacity is
necessary to match capacity with traffic,
usually requires more than 1 fleet.
Point-to-Point (PP)
Directly connects a set of locations
without any interruption of services.
Also known as Direct route where there
is a direct service from one airport to
another without a stop in a third airport.
It is optimally used under the following
circumstances:
• Distance between 2 cities is small
• Demand between 2 cities is high
• Total no. of cities served by the
airline is small
Benefits:
1. Cost effective and reduced travel
time
Non-stop flight is the least expensive
means to serve markets where demand
is sufficient to support larger aircraft.
Passengers could save time without
having long layovers between
connecting flights.
Would not have to deal with the
consequences of a delayed flight.
2. Schedule reliability (on time
performance) is high
Direct flight does not have an
interdependency on other flights.
Minimizes the "domino effect" where
one delay can multiply into other delays
in the network.
3. Aircraft and asset utilization is
high.
Flights from one airport do not have to
feed into downstream flights at the
destination so schedule can be
optimized for maximum aircraft
utilization.
4. Independent operation
Traffic is not affected by demands from
other routes.
5. Simple fleet
Suited for single fleet type
Airline alliances and Integration
Airline Alliance
Each alliance is a partnership where two
or more airline companies work
together to achieve a shared goal while
remaining separate and independent.
Airline partners supplement each
other's capabilities and weaknesses with
strengths, at different levels of
relationships.
An agreement between a group of
airlines to cooperate.
They work together in marketing and
offering flights and connections across
their networks.
They also provide guaranteed benefits
to connecting passengers and to each
other's elite members.
Why Alliances?
4 reasons for creating the alliances:
1. Air-political - the airline has no
traffic rights and is precluded
from controlling a foreign carrier
that has this right.
2. Economical - its costs or fleet are
unsuitable for that market
3. Infrastructural slots are not
available
4. Financial related - the airline has
insufficient resources to develop
new markets
Airline Alliances Forms and Levels of
Integration
Coordination Alliances
The first levels of cooperation among
partners, usually in terms of schedules,
code sharing, pricing and frequent flyer
programs.
EX. Global network created by the 3
major global alliances - Star Alliance,
SkyTeam and Oneworld
The major airline alliances ( level of
integration- Coordination )
Star Alliance
World's largest global airline alliance in
terms of membership founded in 1997.
Named the World's Leading Airline
Alliance in the 2020's World Travel
Awards.
The first airline alliance was formed in
1997.
26 members (founding members: SAS,
Thai Airways, Air Canada, Lufthansa,
United Airlines)
Alliance slogan: "The way the earth
connects"
Tagline: "Star Alliance Leads the Way"
Headquarters: Frankfurt, Germany

OneWorld
3rd largest airline alliance founded in
1998.
Currently has 14 airline members
(founding members: American Airlines,
British Airways, Cathay Pacific, Qantas,
Canadian Airlines)
Alliance slogan: "An alliance of the
world's leading airlines working as one."
Headquarters: New York, USA
The oneworld Alliance is the smallest of
the three in terms of traffic. But it has an
excellent membership of top-rated
airlines. It offers good global coverage,
but with notable gaps in China (where it
provides many Hong Kong connections
with Cathay Pacific but lacks a Chinese
airline member) and South America
(where it recently lost LATAM as a
member).
Value Alliance
An alliance of low-cost carriers founded
in 2016.
Currently has 6 airline members:
founding members: Cebu Pacific (Phils.),
Cebgo (Phils.), Jeju Air (South Korea),
Nok Air (Thailand), Nok Scoot Thailand),
Scoot (Singapore)
There are no tiers, frequent flyer benefits
or combined mileage programs.
Passengers booking through the Value
Alliance website will benefit from
connection guarantee and free
rebooking in case of delays.
SkyTeam
SkyTeam was the last of the three major
airline alliances to be formed, the first
two being Star Alliance and Oneworld.
SkyTeam is dedicated to powering the
most seamless customer journey of any
global alliance.
Alliance slogan: "Caring more about
you."
Founded: 22 June 2000
Ceo: Kristin Colvile (2018 - Present)
Founders: Delta Air Lines, Air France,
Korean Air, Aeroméxico
Its 19 airlines offer good global coverage.
But it has gaps in Australasia (it is the
only alliance to not have any member in
Australia, New Zeland or the Pacific) and
South America (where its only member,
Aerolineas Argentinas provides poor
coverage for the more northern
countries).
Benefits of being a part of an Alliance:
1. An extended network often
realized through codeshare
agreements.
2. Cost reduction from sharing of:
a. sales offices
b. operational staff: ground handling
personnel at check-in & boarding desks.
c. operational facilities: catering or
computer systems
d. airport lounge
e. check-in counters
3. Traveler benefits can include:
a. more departure times to choose from
on a given route.
b. more destinations within easy reach.
c. shorter travel times as a result of
optimized transfers.
d. a wider range of airport lounges
shared with alliance members.
e. faster mileage rewards by earning
miles for a single account on several
different carriers.
Frequent Flyer Program
A loyalty program offered by an airline.
Designed to encourage airline
customers enrolled to accumulate
points which may be redeemed for air
travel or other rewards (travel class
upgrades, special sales coupons, free
merchandise, etc.)
CODE-SHARE AGREEMENT
Code-share agreement allows for a flight
operated by one carrier also to be
marketed by another carrier with its
own flight number.
Typically, a flight is operated by one
airline (technically called an
administrating carrier or " operating
carrier" while seats are sold for the flight
by all cooperating airlines or "marketing
carrier" using their own designator and
flight number.
The term "code" refers to the identifier
used in a flight schedule, generally the
two-character IATA airline designator
code and flight number.
Historically, code-shares arose because
connections between flights on the
same airline were given higher priority
in reservations systems (CRSS/GDSs)
than connections between different
airlines
Why Airlines enter into joint ventures?
A joint venture is a temporary contract
between participating companies that
dissolves at a specific future date or
when the project is completed.
A joint venture affords each party access
to the resources of the other
participant(s) without having to spend
excessive amounts of capital.
Each company can maintain its own
identity and can easily return to normal
business operations once the joint
venture is complete.
Joint ventures also provide the benefit
of shared risk.
Managerial level of integration -
Merger of shares
A merger occurs when 2 firms continue
to carry out business operations as one
single firm rather than 2 separate firms.
Ex. Lufthansa-Swiss Merger
In 2007, Lufthansa and Swiss Air
merged, with Lufthansa acquiring
shares of Swiss Air
The airlines retained their own individual
brand names.
Swiss Air remained an autonomous
carrier.
Company Integration - Full merger
Acquisitions
Acquisition is the takeover of one
company by the other.
Ex. Air France-KLM merger
United Airlines-Continental Merger
Code-sharing
Codeshares can take place between any
airline, either within the same alliance or
not.
Operating carrier - the airline that
administrates the flight (the one holding
the operational permissions, airport slots
& responsible for the ground handling
services).
Marketing carrier- the airline that sells
the seats.
Generally require a revenue sharing
agreement (based on some level of
assumed costs attributed to the
operating partner) or a cost-and-
revenue sharing agreement.

Under reservations availability in a GDS,
you may find similar flights with distinct
flight numbers which indicates that only
one carrier is operating the same flight.
Here it is clear that Malaysia Airlines is
the marketing carrier code-sharing with
Ex. Joint venture of KLM and Northwest
Airlines for the routes between the US
and the Netherlands.
Topic 6: Airports

Main Types of Airports (related to

Turkish Airlines-the operating carrier.
airspace) 31818
Interline Agreement
Towered-Air Traffic Control (ATC) is
responsible for providing safe, orderly
An interline agreement is simply a
flow traffic.
commercial agreement between airlines
to handle passengers when they're
Non-towered-a Common Traffic
traveling on multiple airlines on the
Advisory Frequency (CTAF) is provided
same itinerary.
to announce position. Pilots use the
common frequency to coordinate their
The term relates to the ability of one
arrivals and departures safely, giving
carrier to sell a journey, or part of a
position reports and acknowledging
journey, on the services of another
other aircraft in the airfield traffic
carrier, together with the procedures
pattern.
forest element of the revenue owed to
the carrying airline.
Landside

Interline agreements allow air

An area in the airport that is open to the
passengers to travel across the networks
public.
of multiple airlines with the convenience
of a single reservation and the
There are several facilities that are
confidence that their itinerary includes
located on the landside.
appropriate connection times.

a. Passenger buildings or "Terminals" are

The agreement allows each airline to
most expensive facilities to build,
accept the other's ticket and covers
operate and maintain at an airport. They
baggage transfers and liability.
are important generators of airport
revenue from space rentals &
Integrated units-Joint Ventures
commercial activities.

A joint venture occurs when 2 firms

b. Cargo Terminals
continue to carry out the business
operations but form a separate entity.
Facilities

A joint service requires that one of the

Handling of passengers
carriers undertakes the revenue
management activities for both carriers.
Servicing, maintaining, and engineering
of aircraft
Airline operations, including aircrew,
cabin attendants, ground crew, and
terminal and office staff
Businesses that provide services to
passengers and are necessary for the
economic stability of the airport (e.g.,
concessionaires, leasing companies, etc.)
Aviation support facilities (e.g., air traffic
control, meteorology, etc.)
Government functions (e.g., agricultural
inspection, customs, immigration,
health)
Airports of a significant size must have
an organization that can either supply or
administer the above facilities.
Airside
Includes runways, taxiways, aircraft
maintenance, air traffic control facilities
& equipment as well as the land that
surrounds all of these.
Airside occupies 80-95% of the land area
of an airport. Access to the airside is
tightly controlled.
Airside Design Standards
Because of the importance of safety for
aviation operations, airfield design must
comply with a detailed set of design
standards and recommended practice
adopted over the years by the
International Civil Aviation Organization
(ICAO):
• Dimension Requirements for
Runways, Taxiways and Apron
Areas.
Limits on the heights of physical and
human-made obstacles in the vicinity of
runways and taxiways.
Placement and other physical
characteristics of air navigation
equipment, airport lightning, airport
signage, etc.
Airside - Runways
A paved land strip on which landing,
and takeoff operations of aircrafts takes
place. It is in leveled position without
any obstructions on it.
Runways are identified by a 2-digit
number.
The letters R, for the "Right", C for the
"Center", and L for the "Left," are added
to distinguish between the runways.
Airside - Apron or Ramp
A place which is used as parking place
for aircrafts. It is also used for loading
and unloading of aircrafts.
Apron is generally paved and is located
in front of terminal building or adjacent
to hangars.
The size of area to be allotted for apron
and design of apron is generally
governed by the number of aircrafts
expected in the airport.
The aircraft characteristics are also
considered in the design.
Typology of Passenger Buildings
Classified according to an informal
typology that focuses on two important
characteristics:
1. Centralized and decentralized
processing
2. Geometric layout
International Departure
Step 1
Check-in Process
Step 2
Clear Immigration & security to head
towards departure gate
Step 3
Boarding Process
Centralized and Decentralized
Processing
Refers primarily to the way in which
departing passengers are processed.
1. Centralized processing provides a
single point of access for departing
passengers, such as a central lobby area
where the check-in counters for all of
the building's gates are located. From
this central lobby passengers then
proceed to the other parts of the
building.
2. Decentralized processing - airports
that have multiple terminals. But
individuals at these airports may be
"centralized" in the sense that
passengers departing from each of
these buildings may have a single
access point to that building.
Goal of maintaining short distances
between the vehicle curb and aircraft
parking.
Within linear terminals, ticket counters
serving individual airlines were
introduced and loading bridges were
deployed at aircraft gates to allow
passengers to board aircraft without
going to apron.
Characteristics:
• Simplest and most straight-
forward
• Consists of a single passenger
processing area (common
ticketing and waiting area)
• Centralized passenger
processing
• Direct relationship between
curbside and the aircraft (Short
walking distances)
Disadvantages:
• Primarily applicable for low
activity.
• Requires duplication of terminal
facilities/amenities.
Geometric Layout – Pier Finger Design
Concourses (known as piers or fingers)
offered the opportunity to maximize the
number of aircraft parking spaces with
fewer infrastructures.
Aircraft parking was assigned to both
sides of a pier extending from the
original unit terminal structure.
Pier finger terminal is known as
decentralized facilities, with some of the
required processing performed in
common-use main terminal areas, and
other processes performed in and
around individual concourses.
Characteristics:
• Aircraft are parked on both sides
of a concourse.
• Passengers are usually processed
at the simple terminal location
and then routed down a "pier"
where aircraft are parked in the
"finger" slots or gates for
boarding.
 • Compared to linear, this concept
type increases passenger
walking distances from the
processing area.
Disadvantages:
• Distances between gates and
other facilities.
• Reduction of apron space for
aircraft parking and movement
• Tends to put constraints on the
mobility of aircraft, particularly
aircraft parked closer to the main
terminal building (maneuvering)
Geometric Layout - Satellite Design
Satellite terminals are concourses
extended from main-unit terminal
buildings with aircraft parked at the end
of the concourse around a round atrium
or satellite area.
Satellite gates are usually served by a
common passenger holding area.
Characteristics:
• It is completely surrounded by
aircraft.
• Connected to the processing
areas of the terminal via
underground or overhead
connector.
• Parked in a nose-in arrangement
around the satellite.
• Passenger processing is handled
in a separate terminal facility.
• It works well for heavy-activity
airport with origin and large
percentage of connecting
passengers.
Geometric Layout -
Mobile Lounge or Transporter Design
Characteristics:
• Aircraft are parked at remote
parking locations away from the
main-unit terminal building. Also
known also as the remote aircraft
parking concept
• To travel between aircraft and
the terminal building, passengers
would board transporters, known
as mobile lounges, that would
roam the airfield among ground
vehicles, and taxiing aircraft.
• It provides a complete separation
of passenger facilities from those
required to service and maintain
the aircraft.
• Airplane taxiing time to and from
the runway is decreased as well
as reduce the amount of aircraft
engine noise around the terminal
Disadvantages:
• Mobile lounge boarding areas in
the main terminal often become
excessively congested as
passengers with carry-on
baggage would crowd the area,
often arriving early so as not to
miss their assigned mobile
lounge boarding time. Which in
the end is inconvenient to
passengers.
• Mobile lounges require constant
maintenance, which over time
becomes an excessive cost
element of operations.
 • Higher instances of passenger
delay
• Increased minimum connecting
times.
Geometric Layout - Hybrid Terminal
Airline deregulation in 1978, airport
management has had to expand and
modify terminal areas to accommodate
almost constantly changing
environments.
As a result, many airport terminal
geometries expanded in an ad hoc basis,
leading to hybrid terminal geometries
incorporating features of two or more of
the basic configurations.
Ground Handling and Ground Support
Equipment (GSE)
The movement of passengers, baggage,
and cargo through the terminals and
the turnaround of the aircraft on the
apron are achieved with the help of
those involved in the ground handling
activities at the airport.
These activities are carried out by some
mix of the airport authority, the airlines,
and special handling agencies
depending on the size of the airport and
the operational philosophy adopted by
the airport operating authority.
Basically, ground handling procedures
can be classified as either landside /
terminal or airside operations.
Ground Handling - Landside or Terminal
Passenger handling in the terminal is
almost always an airline function or a
GSA or handling agent.
Among the passenger handling
activities are:
✔Baggage check/handling/claim
✓Ticketing and check-in
✓Passenger loading/unloading
✓Transit passenger handling
✓ Elderly and disabled person handling
✓Information systems
✓Government controls
✓Load control
✓ Security
Ground Handling - Airside
Represent the airside activities at
airports in charge of processing
passengers, cargo, facilities and supplies
at and around parked aircraft.
Ramp Services - the aircraft ramp
handling sequence is composed of
mostly independent chains of tasks for
current aircraft from the moment the
aircraft is "on-chocks".
1. "over the wing" activities
2. "under the wing" activities
Ramp Services
1. "Over the wing" or CABIN activities are
aircraft passenger cabin related
activities:
• passenger boarding and
deplaning
• catering galleys
• cabin cleaning and preparation,
• safety and security checks as
needed
2. "Under the wing" CARGO/ RAMP
activities, which are cargo (both
containerized and bulk) unloading and
loading and other ramp activities:
• provide electricity (Ground Power
Unit (GPU)
• condition aircraft cabin
temperature (Pre-Conditioned
Air unit (PCA)
 • chocking of landing gears, use of
cones, marshalling
• potable water and toilet servicing
towing/pushback
• provide access means to the
passengers (via stairs, ramps or
Passenger Boarding Bridge
(PBB)
Ground Support Equipment (GSE)
1. can be towed by hand, (non-powered)
2. towable (non-powered but needs
transport vehicle)
3. self-propelled (powered)
Ground Support Equipment -
Nonpowered
1. Dollies standard sized flatbed trolley or
platform, with many wheels, roller bars
or ball bearings protruding above the
top surface for easy loading and
unloading of Unit Load Device (ULD)
and cargo pallets respectively.
2. Chocks are used to prevent an aircraft
from moving while parked at the gate or
in a hangar
3. Aircraft container and pallet loader
with numerous Mecanum wheel
powered for shifting and rotation of
containers.
GSE -powered equipment
Refuelers -Aircraft refuelers can be
either a self-contained fuel truck, or a
hydrant truck or cart.
The tugs and tractors at an airport have
several purposes and represent the
essential part of ground support
services. They are used to move all
equipment that can not move itself. This
includes bag carts, mobile air
conditioning units, air starters, and
lavatory carts.
Pushback tugs are mostly used to push
an aircraft away from the gate when it is
ready to leave. These tugs are very
powerful and because of the large
engines, are sometimes referred to as an
engine with wheels.
Aircraft container and pallet loader with
numerous Mecanum wheel powered for
shifting and rotation of containers.
A ground power unit is a vehicle capable
of supplying power to aircraft parked on
the ground.
Container loaders, also known as cargo
loaders or "K loaders", are used for the
loading and unloading of containers and
pallets into and out of aircraft. The
loader has two platforms which raise
and descend independently.
Lavatory service vehicles empty
lavatories and refill onboard aircraft.
Waste is stored in tanks on the aircraft
until these vehicles can empty them and
remove the waste.
Catering vehicle- consists of a rear body,
lifting system, platform and an electro-
hydraulic control mechanism. The rear
body can be lifted up, down and the
platform can be moved to place in front
of the aircraft. Catering services include
the unloading of unused food and drink
from the aircraft, and the loading of
fresh food and drinks for passengers and
crew.
Belt loaders are vehicles with conveyor
belts for unloading and loading of
baggage and cargo onto aircraft. Belt
loaders are used for narrow-body
aircraft, and the bulk hold of wide-body
aircraft. Stowing baggage without
containers is known as bulk loading.
Passenger boarding stairs - sometimes
referred to as boarding ramps, stair car
or aircraft steps, provide a mobile means
to traverse between the aircraft doors
and the ground.
Aircraft rescue and firefighting (ARFF)
vehicles - is a special category of
firefighting that involves the response,
hazard mitigation, evacuation and
possible rescue of passengers and crew
of an aircraft involved in (typically) an
airport ground emergency.
Airport User Charges
Operators of major airports derive the
overwhelming portion of their income
from a wide variety of aeronautical and
nonaeronautical user charges and other
fees.
User charges are classified as
aeronautical and nonaeronautical.
1. Aeronautical charges are for services
and facilities related directly to the
processing of aircraft and their
passengers sand cargo
2. Nonaeronautical charges are for the
use of ancillary (i.e., supplementary)
services, facilities, and amenities.
Aeronautical Charges
1. Landing fee - aircraft operators pay for
use of the airfield (runways and
taxiways)
2. Terminal area navigation fee - for air
traffic management services on and
near the airport; usually part of landing
fee but charged separately in some
countries.
3. Aircraft parking and hangar fee - for
use of contact and remote apron stands
and, if applicable, of hangars; many
airports also charge a separate fee for
overnight aircraft parking.
4. Airport noise charge - imposed
separately at some airports, in Europe it
covers the cost of noise monitoring
systems and of noise mitigation
measures.
5. passenger service charges - to cover
costs directly related to the use of
passenger buildings and to passenger
processing services).
6. cargo service charge - airport
operators use to cover parts or all of the
costs of cargo processing facilities and
services.)
7. security charge - pays for (or part of)
aviation security equipment and
services at the airport.
8. ground handling charge - for
servicing of aircraft and the processing
of passengers and their bags.
9. Concession fees - for aviation fuel
and oil collected either from on-site
licensed companies that supply fuel and
oil to the airlines and other aircraft
operators or directly from the airlines
and aircraft operators.
In the latter case, the airport operator
itself may buy the fuel
10. Government services - fees are
typically collected to cover the cost of a
number of government services (e.g., for
passport control, customs, and health
inspection) provided at airports.
These fees, however, do not accrue to
the airport operator).
Types of Nonaeronautical charges :
Commercial concession fees paid to the
airport operator by duty free and retail
shops, bars and restaurants, bank and
currency exchanges branches
Tolls for automobile parking and
rentals; rentals for airport land, space
buildings, advertising space, and
assorted equipment;
Fees for the provision by the airport
operator of engineering services and
reimbursable utilities to airport users.
TRANSIT RIGHTS:
1ST & 2ND FREEDOMS
First Freedom
● The right or privilege granted by one
State to another State to fly across its
territory without
landing.
Second Freedom
● The right or privilege, granted by one
State to another State to land in its
territory for non- traffic
purposes (technical stops).
TRAFFIC RIGHTS:
3RD - 9TH FREEDOMS
Third Freedom
● The right or privilege to fly from one's
own country to another.
Fourth Freedom
● The right or privilege to fly from
another country to one's own.
Fifth Freedom
● The fifth Freedom of the air is often
referred to as "beyond
rights". This freedom 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.
Sixth Freedom
● Allows an airline to operate flights
between 2 foreign
countries, provided it touches
down in its own country
(combination of 3rd & 4th
freedom).
Seventh Freedom
● Allows an airline to operate a flight
that originates in a foreign country,
bypasses its own nation, and lands in
another destination.
Eighth Freedom (Consecutive Cabotage)
● Allows airlines to fly between 2 points
in a foreign country
(airports), provided the flight is a
continuation of a flight that
originated in its own country.
Ninth Freedom ("Stand Alone
Cabotage")
● Very similar to the eighth
freedom except from the
distinction that airlines don't
have to fly to their home country after
connecting 2 foreign
destinations (airports) in the
same country.
Global Indicators (Direction
Routing)
WH- Western Hemisphere.
● This pertains to any travel route wholly
within Western Hemisphere or TC1.
Example route: Vancouver (YVR)/ Los
Angeles (LAX)/ Rio de Janeiro (RIO) . This
sample route begins from Canada,
transits the USA and ends in South
America which is all within TC1 or
Western Hemisphere.
EH - Eastern Hemisphere.
● When the route is wholly within the
Eastern hemisphere or if no Oceans are
traversed , from Origin to Destination
and
enroute, this falles under GI - EH.
Travel from TC2 to TC3, and flights
wholly within TC3 are under GI-
EH (Other than Trans-Siberian route(TS),
Russian route(RU), and
Far Eastern route (FE) which will
be discussed at length in your
Ticketing course). Sample route:
Manila (MNL)/ Sydney(SYD) ,
route wholly within TC3 falls
under GI-EH. Or London(Lon) /
Calcutta (CCU)/ Bangkok(BKK)
where Origin is from UK in TC2
via India in TC3 heading to its
destination BKK in TC3 is a travel
from TC2 to TC3, also falling
under GI-EH (note no ocean was
traversed in this sample route).

PA – Pacific route.

● Any travel between TC3 and TC1

via the Pacific Ocean ( Other than the
North Pacific route (PN) to be discussed
in your Ticketing course). Sample route:
Manila( MNL) /Honolulu(HNL) is an
itinerary from MNL,TC3 to HNL,USA TC1
via the Pacific ocean, and therefore is
under GI- PA.

AT- Atlantic route.

● Any travel between TC1 and TC2

via the Atlantic Ocean. Sample
route: New York (NYC)/
London(LON) is an itinerary from
USA, TC1 to UK, TC2 crossing the

Atlantic Ocean and therefore is

under GI-AT.

AP - Atlantic-Pacific route. (Do not

confuse it with PA) .

● This is any travel between TC2 and TC3

via both the Atlantic Ocean and the
Pacific Ocean , via TC1. In the industry,
we call this the Round-the-world (RTW)
fare as the direct route touches all TC
areas of the world. Sample route
- Rome(ROM)/ New York (NYC)/
HongKong(HKG) , this itinerary
comes from Italy, TC2 via the
Atlantic to USA,TC1, then via the
Pacific to its destination HKG
,TC3, traversing both oceans categorizes
this route under GI- AP.