You are on page 1of 13

AIRLINE ORGANIZATION

Airline Industry
Airline Industry
Carriers, General Aviation, Airports

Travel &
Suppliers Services Passengers Tourism
• Insurance • Travel Agents
• Aircraft • Business Travelers
• Tourist Attractions
• Engines • Financing • Leisure Travelers
• Conferences and
• Electronics • Distribution
Conventions
• Computers • Telecom
• Hotels
• Maintenance • Restaurants
• Chemicals
• Fuel • Retailers
PRODUCERS CONSUMERS
MANUFACTURERS AIRLINES PASSENGERS
Airframes/Engines Trains/Car-Hire/
Mechanical Systems Major/Regional/Charter
Air Taxi Operators Hotels/Restaurants/
Computer Systems Tourism/Retails
Aircraft Parts Air Cargo Carriers
Special Services Travel Agents
Materials/Chemicals Meetings/Events
General Aviation

GOVERNMENTS
Legislative Bodies
Regulatory Bodies
Aviation Authorities
Customs
AIR TRANSPORT INDUSTRY
Immigration

AVIATION SERVICES AIRPORTS/SERVICES


Insurance/Leasing Major Airports
FREIGHT
Sales Distribution General Aviation Airports Freight Forwarders
Suppliers Telecoms Aircraft Training Centers Terminal Transport Warehousing
Maintenance Maintenance Catering Consolidation
Fuel & Oil/Consultants ATC Services Input to Other Industries
Mail
Generic Value Chain
SUPPORT ACTIVITIES

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

INBOUND OPERATIONS OUTBOUND MARKETING SERVICE


LOGISTICS LOGISTICS AND SALES

PRIMARY ACTIVITIES
Airline Industry Value Chain
FIRM -Financial Policy - Accounting -Regulatory Compliance - Legal - Community Affairs
INFRASTRUCTURE

HUMAN Flight, route and


Pilot Training Baggage Handling Agent In-flight
RESOURCE yield analyst
Safety Training Training Training Training
MANAGEMENT training
Product Baggage Tracking
Computer Reservation System, In-flight System
TECHNOLOGY Development System
Flight Scheduling System, Yield Management System
DEVELOPMENT Market Research
Information Technology
PROCUREMENT Communications

•Route Selection •Ticket Counter •Baggage System •Promotion •Lost Baggage Service
•Passenger Service Operations •Flight •Advertising •Complaint Follow-up
System •Gate Operations Connections •Advantage
•Yield Management •Aircraft •Rental Car and Program
System (Pricing) Operations Hotel Reservation •Travel Agent
•Fuel •On-board Service System Programs
•Flight Scheduling •Baggage Handling •Group Sales
•Crew Scheduling •Ticket Offices
•Facilities Planning
•Aircraft Acquisition

INBOUND OPERATIONS OUTBOUND MARKETING SERVICE


LOGISTICS LOGISTICS AND SALES
Basic Functional Organization

Board of
Directors

CEO

Commercial Finance Administration Line


Operations
Administrative Organization

CEO

Administration

Safety Corporate Security Legal Human Audit


Communications Resources
Commercial Organization

CEO

Commercial
Group

Sales External Mrktg Info Revenue Corp e- Planning


Affairs Support System Mgt. Business
Airline Industry External Affairs
CAB
G DOTC
O ATO
V Negotiating Foreign
E Congress Panels Gov’ts.
E R Airports
X N
M DFA
T
E
E N
R DOT
T
N
A IATA Foreign
L Airlines
ICAO
I APEC
A N
F D Economic EAGA
F U Forum
A S WTO
I T
R R BAR
S Y
AOC
Financial Organization

CEO

Financial
Group

Financial Corp Treasury Fuel Risk Logistics &


Services Finance Mgt. Management Purchasing
Line Operations Organization
CEO

Operation
Group

Flight Cabin Airport Catering Operation Training &


Operation Services Services Services Control Dev’t.

Airworthiness Aircraft
Management Engineering
Airline Organization

Any Questions?
Airline Organization

Thank You