Airport and Airlines Management Assignment Name: Balram Mandal Roll no: 2027032 Branch: Aerospace 1. Describe a typical regional carrier in terms of its role in the air transportation system, type of aircraft flown, and route structure. What is meant by hub-and-spoke network? Answer: Regional Carrier: A regional carrier is typically a smaller airline that operates flights within a specific geographic region, feeding passengers to larger hub airports for onward connections to other destinations. They often operate under contract with major airlines and are responsible for providing short-haul flights to smaller cities and towns that may not be economically viable for larger airlines to serve. Regional carriers typically operate smaller, regional aircraft such as the Embraer E-Jets, Bombardier CRJ series, and ATR turboprops, which are well-suited for shorter flights and can land at smaller airports with shorter runways. The route structure of regional carriers is typically focused on connecting smaller cities and towns to larger hub airports, where passengers can connect to other destinations served by the major airlines. Regional carriers typically operate many short flights each day, often using smaller aircraft with a capacity of 50-100 passengers. Hub-and-Spoke Network: The hub-and-spoke network is a system used by many airlines, including regional carriers, to maximize efficiency and minimize costs. In this system, a large hub airport serves as a central point for connecting flights to and from smaller airports in the surrounding region. Passengers from smaller airports fly into the hub airport, where they can connect to flights to other destinations served by the airline. By consolidating passengers from multiple smaller airports into a single hub, airlines can maximize the utilization of their aircraft and reduce costs. 2. What are the three types of 401 certificate cases? What is meant by the fitness of the applicant? Answer: The three types of 401 certificate cases are as follows: i. Air Carrier Operating Certificate: This certificate is issued to an air carrier that meets the safety and financial requirements set by the Civil Aeronautics Board (CAB) to operate scheduled airline service. ii. Air Taxi Operating Certificate: This certificate is issued to an air taxi operator who meets the safety and financial requirements set by the CAB to operate unscheduled, on-demand air transportation for passengers and cargo. iii. Commercial Operator Certificate: This certificate is issued to a commercial operator who meets the safety and financial requirements set by the CAB to operate commercial air transportation other than as an air carrier or air taxi. The term "fitness of the applicant" refers to the medical and mental fitness of individuals applying for certificates or licenses related to aviation. The Act requires that each applicant for a certificate or license, such as a pilot's license or air traffic controller certificate, be "fit, willing, and able to perform the duties required." 3. Why the airline industry is considered oligopolistic? And explain economies of scale. Answer: The airline industry is often considered oligopolistic due to the relatively small number of major carriers that dominate the market. This concentration of power among a few large companies allows them to control prices and limit competition, which can make it difficult for smaller airlines to enter or compete in the market. Economies of scale also play a significant role in the airline industry. These are cost advantages that a company can achieve as it grows and produces more goods or services. In the airline industry, these economies of scale arise from the high fixed costs associated with operating an airline. Fixed costs include expenses such as aircraft, maintenance, fuel, and salaries of pilots and flight attendants, which must be paid regardless of how many flights an airline operates. As an airline increases its production, or the number of flights it operates, it can spread these fixed costs over a larger output, resulting in lower per-unit costs. For example, a large airline with a large fleet can spread the costs of maintenance and fuel over a greater number of flights and passengers, allowing it to offer lower prices and still make a profit. Additionally, larger airlines can negotiate better prices for fuel and other supplies due to their larger purchasing power. However, smaller airlines do not have the same economies of scale as larger airlines, which can make it difficult for them to compete on price. This is because their fixed costs are spread over a smaller output, resulting in higher per-unit costs. As a result, larger airlines often have a competitive advantage in the market due to their ability to achieve economies of scale.
