Airline and Airport Organisation

BBA
Airline & Airport Management
(Annual Pattern)
IInd Year
Paper No. 8

School of Distance Education

Bharathiar University, Coimbatore - 641 046
 Author: Mihir Babu

Copyright © 2014, Bharathiar University

All Rights Reserved

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 CONTENTS

Page No.

UNIT I
Lesson 1 Introduction to Airline and Airport Organisation 7
Lesson 2 Major Players, Challenges and Competition in Airline Industry 13

UNIT II
Lesson 3 Passenger, Baggage and Aircraft Handling 33
Lesson 4 Aircraft Fleet Management 48
Lesson 5 Ground Handling Agreements 57
Lesson 6 Crew Resource Management 82

UNIT III
Lesson 7 Passenger’s Terminal Management 91
Lesson 8 Flight Safety and Airside Management 107
Lesson 9 Ground Safety 121

UNIT IV
Lesson 10 Tour Operators, Travel Agents and Hotel Industry 133

UNIT V
Lesson 11 Airport Planning 147
Lesson 12 Airport Operations 155
Lesson 13 Airline Functions and Organisation Structure 164
Lesson 14 Global and Indian Authorities of Airport Management (DGCA, AAI) 179
Model Question Paper 199
 AIRLINE AND AIRPORT ORGANISATION

SYLLABUS

UNIT I
History of Aviation – Development of Air Transportation in India – Major players in Airline Industry – SWOT
Analysis in Airline Industry – Market potential of Indian Airline Industry – Current Challenges in Airline Industry –
Completion in Airline Industry – IATA & ICAO

UNIT II
Ramp Services: Ground Handling Agencies and Documents – Handling of Passengers – Handling of Baggage –
Aircraft Handling – Catering Planning, Aircraft Fleet and its Maintenance – Ground Handling Agreements – Scheduling
and Approvals – Crew Management and Documentation

UNIT III
Airport Operator Passenger’s Terminal Management: Domestic – Passenger’s Terminal Management:
International – Cargo Terminal: Domestic and International – Airside Management: Ground and Flight safety

UNIT IV
International Tour and Travel Management – Tour Operators – Travel Agents and their Role – The Hotel Industry –
Tourist Attractions: Global and Indian – Handling of Unaccompanied Minors and Disabled Passengers – Handling of
Stretcher Passengers and Human Remains – Handling of CIP, VIP & VVIP – Co-ordination of Supporting Agencies
/Departments

UNIT V
Airport Operations – Airport Planning – Operational Area and Terminal Planning, Design and Operation – Airport –
operations – Airport functions – Organization structure of Airline and Airports Sectors – Airport – Authorities –
Global and Indian scenario of Airport Management – DGCA – AAI
 5
Introduction to Airline and
Airport Organisation

UNIT I
6
Airline and Airport Organisation
 7
LESSON Introduction to Airline and
Airport Organisation

1
INTRODUCTION TO AIRLINE AND
AIRPORT ORGANISATION

CONTENTS
1.0 Aims and Objectives
1.1 Introduction
1.2 History of Aviation
1.3 Development of Air Transportation in India
1.4 Market Potential of Indian Airline Industry
1.4.1 Future Prospects
1.5 Let us Sum up
1.6 Lesson End Activity
1.7 Keyword
1.8 Questions for Discussion
1.9 Suggested Readings

1.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Know the history of aviation
z Describe the development of air transport in India
z Explain the market potential of Indian airline industry

1.1 INTRODUCTION
Aviation Industry in India is one of the fastest growing industries in the world. With
the liberalization of the Indian aviation sector, aviation industry in India has
undergone a rapid transformation. From being primarily a government-owned
industry, the Indian aviation industry is now dominated by privately owned full
service airlines and low cost carriers. The present lesson shows light on the
development of air transport in India and market potential of Indian airline industry.

1.2 HISTORY OF AVIATION

To fly with the birds has been man’s dream since Neolithic times. Centuries of studies
and experiments precede the first successful flight. Only until the beginning of the
20th century have we accomplished flight in a heavier-than-air craft. Throughout the
past century of evolution, aviation has acquired a responsibility much greater than
ever conceived. The utilization spectrum of aviation extends from air combat and
high-altitude surveillance to more mundane functions like shipping mail and cargo.
8 With such versatility, aircraft have contributed to augmenting the fast paced lives we
Airline and Airport Organisation already live. Air transport has contributed to expansion of the global economy, leisure
activities, and influenced governments and industries to diversify. The portrayal of
aviation has impacted our society on three stages: socially, politically and
economically. Leonardo da Vinci had begun drawing blueprints of a flying machine in
the 15th century. At that time, human flight had never been contemplated, beyond a
dream. Practicality worked against Leonardo; however, his thoughts were quite
contemporary by today’s standards seeing how his drawings resemble those of modern
aircraft. Just over a hundred years ago, the idea of human flight was thought absurd.
Flying was something one only did while one was dreaming; but today, one can fly to
any destination in the utmost comfort and safety, thanks to the airplane. The first flight
took place on December 17, 1903, in Kill Devil Hills near Kitty Hawk, North
Carolina. The inventors of ‘The Flyer’, the first heavier-than-air machine that actually
flew under its power, were Wilbur and Orville Wright, the Wright brothers. Orville
made the first successful flight. Although their “air machine” flew for only twelve
seconds, the Wright brothers started a revolution that has greatly affected the entire
world. “The time will come when gentlemen, when they are to go on a journey, will
call for their wings as regularly as they call for their boots”, quoted Bishop Wilkens
(Glaeser). With the success of the Wright brothers’ flight, powered flight has
undergone renovations that have made everyday flight possible. As time went on, the
design and mechanics of the plane greatly advanced, cockpits were built for the pilot
and suggestions were made to make the plane a weapon, which became a reality with
winged warfare in the First World War. Airplanes are used for a variety of things;
travel is only one of many.
Following the fillip given by The Great War, air transportation developed rapidly in
the 1920s and 1930s, not always for commercial reasons. Airlines were seen as a
means of providing a national airmail service (US) and of establishing long haul air
services to colonies and dependencies (UK and France). Airline companies were set
up to oversee these national goals, a trend that continued in the post-colonial period of
the 1950s to the 1970s, as many African, Asian and Caribbean nations created their
own airline companies while reserving them for specific markets and for specific
routes. In advanced economies, the national policies went in the same direction with
national markets reserved to national carriers offering stable services, but at high
prices. Air transport was then seen as a public service that should be regulated. Thus,
the regulatory agencies of governments (e.g., the Civil Aeronautics Board for the
United States) decided which routes were to be serviced, as well as the pricing.
In the 1970s, the outlook changed and air transport came to be increasingly seen as
just another transport service. Market forces played a major role in fixing air transport
prices, and the role of governments was limited to operational and safety regulations.
In the United States, the Air Deregulation Act of 1978 put an end to fixed markets and
opened the industry to competition. This liberalization process has spread to many
other countries, although with important local distinctions. Many of the former private
firms in the US and many former state-owned airlines that were greatly protected and
subsidized went bankrupt or were absorbed by larger ones. Many new carriers have
emerged, with several low-cost carriers such as Ryan Air and North-West Air in USA
and now, Air Deccan in India having achieved industry leadership in this low-cost
segment. A key outcome of airline deregulation has been the “Emergence of Hub and
Spoke Networks” dominated by a single carrier. Internationally, air transport is still
dominated by bilateral agreements between nations (Graham 1995).
The post-World War II period saw a momentous growth of air transportation, as it
became the leading mode of international movements of passengers. Air transport has
greatly contributed to cutting distances as it is perfectly tailored to carrying freight and
passengers rapidly across continents and oceans. However, for safety reasons, the 9
organization of air transport at the international level is strictly regulated. As such, for Introduction to Airline and
Airport Organisation
long haul passenger travel, no other modes compete with air transportation. In many
cases, such as in North America, air transportation became a significant mode for
domestic movements of passengers. As a result, airspace became progressively more
used. They include two major components, one being land-based (take-offs and
landings) and the other air-based, mainly composed of air corridors. These corridors
can superimpose themselves to altitudes up to 22,500 feet. The geography of air
transport is limited to the use of predetermined corridors. Air transport makes use of
air space that theoretically gives it great freedom of route choice. Strategic and
political factors influence route choice. For example, the flights of South African
Airways were not allowed to over-fly many African nations during the apartheid
period, and Cubana Airlines has been routinely prohibited from over-flying the US.
By convention, an air space exclusively belongs to the country under it. Air
transportation depends on agreements between nations and airline companies. The
Chicago Convention of 1944 established the basic geopolitical guidelines of air
operations, which became known as the Air Freedom Rights. The most substantial
developments of air transportation came in the late 1960s and early 1970s where fast
growth in traffic came with the convergence of three processes:
Technical improvements: Technology has significantly extended the range of aircraft
that were now capable of crossing the Atlantic (this was first demonstrated by Charles
Lindbergh’s solo flight that made him a national hero) without stopping at
intermediate places, making trips of up to 18 hours duration. The introduction of the
jet engine considerably reduced distances because of greater speeds and improved
ranges. Transnational movements are favoured by the usage of polar crossings, which
enables a considerable reduction of distances.
Rising affluence: The growth of air transport is highly correlated to income and
economic output growth. As the population of developed countries became more
affluent, a greater amount of disposable income became available for leisure. Remote
destinations and intercontinental tourism (mainly between Europe and North America)
experienced significant growth in popularity. International tourism and air
transportation are thus mutually interdependent, which is characterized by significant
elasticities.
Lower airfares: As a consequence of technical improvements, growing demands and
competition, airfares have been reduced considerably, making air transportation
affordable to the general public. This in turn triggered additional passengers and
airfreight demands.
Globalization: Trade networks established by multinational corporations imply
important movements of passengers and freight over the economic space. About 40%
of the value of global manufactured exports is carried by air transportation (about 50%
of the value of American overseas – non-NAFTA – exports).
A key structural factor in the development of air transport networks is the emergence
of major hubs around which air traffic converges. This trend is mainly the result of
decisions made by airline companies in the organization of their services.
Check Your Progress 1
Fill in the blanks:
1. Market forces played a major role in fixing …………….. transport prices.
2. Key ………………. in the development of air transport networks is the
emergence of major hubs around which air traffic converges.
10
Airline and Airport Organisation
1.3 DEVELOPMENT OF AIR TRANSPORTATION IN
INDIA
Aviation Industry in India is one of the fastest growing industries in the world. With
the liberalization of the Indian aviation sector, aviation industry in India has
undergone a rapid transformation. From being primarily a government-owned
industry, the Indian aviation industry is now dominated by privately owned full
service airlines and low cost carriers. Private airlines account for around 75% share of
the domestic aviation market. Earlier air travel was a privilege only a few could
afford, but today air travel has become much cheaper and can be afforded by a large
number of people.
The origin of Indian civil aviation industry can be traced back to 1912, when the first
air flight between Karachi and Delhi was started by the Indian State Air Services in
collaboration with the UK based Imperial Airways. It was an extension of London-
Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the
first Indian airline. At the time of independence, nine air transport companies were
carrying both air cargo and passengers. These were Tata Airlines, Indian National
Airways, Air Services of India, Deccan Airways, Ambica Airways, Bharat Airways,
Orient Airways and Mistry Airways. After partition Orient Airways shifted to
Pakistan.
In early 1948, Government of India established a joint sector company, Air India
International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of
` 2 crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of
Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route.
The Government nationalized nine airline companies vide the Air Corporations Act,
1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to
domestic air travel passengers and Air India International (AI) for international air
travel passengers. The assets of the existing airline companies were transferred to
these two corporations. This Act ensured that IAC and AI had a monopoly over the
Indian skies. A third government-owned airline, Vayudoot, which provided feeder
services between smaller cities, was merged with IAC in 1994. These government-
owned airlines dominated Indian aviation industry till the mid-1990s.
In April 1990, the Government adopted open-sky policy and allowed air taxi-operators
to operate flights from any airport, both on a charter and a non-charter basis and to
decide their own flight schedules, cargo and passenger fares. In 1994, the Indian
Government, as part of its open sky policy, ended the monopoly of IA and AI in the
air transport services by repealing the Air Corporations Act of 1953 and replacing it
with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private
operators were allowed to provide air transport services. Foreign Direct Investment
(FDI) of up to 49 per cent equity stake and NRI (Non Resident Indian) investment of
up to 100 per cent equity stake were permitted through the automatic FDI route in the
domestic air transport services sector. However, no foreign airline could directly or
indirectly hold equity in a domestic airline company.
By 1995, several private airlines had ventured into the aviation business and
accounted for more than 10 per cent of the domestic air traffic. These included Jet
Airways Sahara, NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons
Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and
Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had
dominated the Indian air travel industry, began to lose market share to Jet Airways and
Sahara. Today, Indian aviation industry is dominated by private airlines and these
include low cost carriers such as Deccan Airlines, GoAir, SpiceJet, etc., who have 11
made air travel affordable. Introduction to Airline and
Airport Organisation
Airline industry in India is plagued with several problems. These include high
Aviation Turbine Fuel (ATF) prices, rising labour costs and shortage of skilled labour,
rapid fleet expansion, and intense price competition among the players. But one of the
major challenges facing Indian aviation industry is infrastructure constraint. Airport
infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue
its success story. Some steps have been taken in this direction. Two of India’s largest
airports – Mumbai and New Delhi – were privatized recently. Two greenfield airports
are coming up at Bangalore and Hyderabad in southern India. Investments are pouring
into almost all aspects of the industry, including aircraft maintenance, pilot training
and air cargo services. The future prospects of Indian aviation sector look bright.

1.4 MARKET POTENTIAL OF INDIAN AIRLINE

INDUSTRY
In India, the industry sector continues to look promising. The liberalization of the
Indian aviation sector in the mid-nineties resulted in significant growth due to the
entry of private service airlines. There was, and continues to be a strong surge in
demand by domestic passengers, due primarily to the burgeoning middle class with its
massive purchasing power, attractive low fares offered by the low cost carriers, the
growth of domestic tourism in India and increasing outbound travel from India. In
addition, the Government has also focused on modernizing non-metro airports,
opening up new international routes, establishing new airports and renovating existing
ones. Some estimate industry growth at 25% YoY.
Unfortunately, most major airline operators in India such as Air India, Indian Airlines,
Jet Airways and Kingfisher Airlines have reported large losses since 2006, due to high
Aviation Turbine Fuel (ATF) prices, rising labour costs and shortage of skilled labour,
rapid fleet expansion, and intense price competition. The problem was also
compounded by new players entering the industry even before the existing players
could stabilize their operations. As a result of the already weak domestic scenario, the
airlines suffered even further when the recession, which exacerbated all these factors,
hit. Suffice to say, though that the Indian aviation industry has been more resilient
than its global counterparts.
Despite many private airlines being in the red, the industry itself remains robust.
According to Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation
(CAPA), India’s civil aviation passenger growth is among the highest in the world.
“The sector is slated to cruise far ahead of other Asian giants like China or even strong
economies like France and Australia. The number of passengers who will be airborne
by 2020 is a whopping 400 million.” To keep pace with this accelerated demand,
existing players have been trying to increase fleets and widen their footprint to
regional destinations as well. There has also been increasing attention from
international low cost airlines such as Air Asia (Malaysian) and JetStar Asia
(Australian) to capture part of this lucrative opportunity.

1.4.1 Future Prospects

As a result of the strong growth trajectory of the industry, there is likely to be a
massive need for skilled personnel to helm this growth. India is already experiencing a
shortage of pilots and is likely to face similar shortages across the wide direct and
indirect employment pool. Hence, it is a great time to consider playing a role in this
sector, as it holds great promise for development over the coming ten years, at least.
12 Check Your Progress 2
Airline and Airport Organisation
Fill in the blanks:
1. The ……………….. of the Indian aviation sector in the mid-nineties
resulted in significant growth due to the entry of private service airlines.
2. …………………… in India is one of the fastest growing industries in the
world.

1.5 LET US SUM UP

History of aviation showed remarkable change. This lesson highlights the
development of air transportation in India. As a result of the strong growth trajectory
of the industry, there is likely to be a massive need for skilled personnel to helm this
growth. India is already experiencing a shortage of pilots and is likely to face similar
shortages across the wide direct and indirect employment pool.

1.6 LESSON END ACTIVITY

Students can research on the growth of different airline companies and statistics for
their future prospects as well.

1.7 KEYWORD
Market Potential: The hidden prospects for particular phenomenon or thing is known
as market potential.

1.8 QUESTIONS FOR DISCUSSION

1. Explain the history of aviation.
2. Discuss briefly how air transport developed in India.
3. Describe the market potential of Indian airline industry.

Check Your Progress: Model Answers

CYP 1
1. Air
2. Structural factors

CYP 2
1. Liberalisation
2. Aviation Industry

1.9 SUGGESTED READINGS

Speciale, Raymond, (2006), Fundamentals of Aviation Law, McGraw Hill
T. Wells, Alexander, (2004), Airport Planning & Management, McGraw Hill
 13
LESSON Major Players, Challenges and
Competition in Airline Industry

2
MAJOR PLAYERS, CHALLENGES AND
COMPETITION IN AIRLINE INDUSTRY

CONTENTS
2.0 Aims and Objectives
2.1 Introduction
2.2 Major Players in Airline Industry
2.3 SWOT Analysis in Airline Industry
2.4 Current Challenges in Airline Industry
2.4.1 Impact of other Competitors in the Industry
2.4.2 Era of 'Open Skies Policies' in Air Transport Services
2.5 Measures of Airlines Activity
2.5.1 Supply Factor
2.5.2 Demand Factor
2.5.3 Airline Traffic Performance
2.6 Competition between Airlines in the World
2.7 International Air Transport Association (IATA)
2.7.1 Aims of IATA
2.8 International Civil Aviation Organization (ICAO)
2.8.1 ICAO’s Objectives
2.9 Let us Sum up
2.10 Lesson End Activity
2.11 Keywords
2.12 Questions for Discussion
2.13 Suggested Readings

2.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Discuss the major players in airline industry
z Know about the SWOT analysis in airline industry
z Identify the challenges in airline industry
14
Airline and Airport Organisation
2.1 INTRODUCTION
The lesson throws light on different major players in an airline industry. SWOT
analysis is used for the overall evaluation of the company. The different challenges
faced by an airline industry have been explained in this lesson.

2.2 MAJOR PLAYERS IN AIRLINE INDUSTRY

The airline management does not work independently of other competitors in the air
transportation industry. Indeed, the decisions of airline management are extremely
affected by these other competitors. The Figure 2.1 depicts the various entities that
cooperate with airline management and influence the decisions concerning
government, airports, customers, alliances, suppliers, unions and competitors.

Government Airports Alliances

Unions Airlines Suppliers

Management

Competitors Customers

Figure 2.1: Different Players in Air Transport Industry

Firstly, the airline management must conform to the regulations of the airline’s home
country. It also takes into concern and conform with the government’s rules and
regulations of those countries where the airlines fly to and from, and whose airspace
they cross. The governments usually watch the competition among airlines and control
their strategic decisions, like merging, acquisition between carriers, entry or exit in the
market and their pricing, environmental and security regulations, maintenance and
safety requirements.
Secondly, the airline management should consider all the agreement terms carefully
with the different airports they serve. Various factors affect these agreements,
including available infrastructure (i.e. gates, runways, baggage handling, etc.),
expected traffic, airport charges and incentives, competition from close by airports,
available landing slots, delays and congestions, and operational curfews.
Thirdly, an airline should consider the requirements and preferences of its prospective
customers, “the travellers”. For example, the airline should consider the schedule
convenience, competitive fares, on-board services, punctuality, and well-organized
customer service. Failing to fulfil the requirements and preferences of customers
might lead to losing them to other competing carriers or other modes of transportation.
Fourthly, in several cases, an airline participates in one or more alliances to enlarge its
network coverage or share resources with other airlines. Various forms of alliance are
available that reflect the level of cooperation among participating airlines. It is
essential for an airline to decide which alliance to participate in and how to share its
resources proficiently with each member in the alliance to encourage profitability.
Usually, the airline has to retain a certain level of operating standards to serve within a 15
worldwide alliance. Major Players, Challenges and
Competition in Airline Industry
Fifthly, the suppliers are vital to the continuation of the airline’s operation. Airlines
depend on suppliers to provide significant items such as aircraft, fuel, meals,
employee uniforms, spare parts, and so on. Also, in many cases, airlines outsource the
vendors for some of their jobs and services, such as aircraft maintenance, aircraft
cleaning, ground handling, sales. Hence, an airline has to keep strong relationships
with its suppliers to continue operating fruitfully. Another unit in the air transportation
industry that an airline has to deal with is unions. The different groups of workers
form unions to achieve stronger negotiation authority with airline management with
respect to salary, benefits, or working rules. To keep good relation with labour in
order to guarantee the smooth operation of the business is one of the main objectives
of airline management. The conflicts with unions might typically lead to negative
actions by the unions, such as strikes or slowdown of work, which usually harm the
operation of the airlines significantly.
Finally, in the majority of market, there is tough competition among several airlines.
Usually, the airlines continuously examine the decisions of their competitors that
relate to providing capacity, fare restrictions, fare levels, and departure times. In many
situations, the competing airline’s decision proceed in a leader-follower pattern, where
one airline takes an action and the other competing airlines try to find the best way to
react to this action.

2.3 SWOT ANALYSIS IN AIRLINE INDUSTRY

The overall evaluation of company is SWOT Analysis. It consists of two types of
analysis:
1. Internal Environment Analysis (strengths and weaknesses)
2. External Environment Analysis (opportunities and threats)
This analysis allows the company to predict different factors that affect
competitiveness of company. SWOT analysis is the leading tool in global business.
Internal factors of company include strengths and weaknesses. Internal strengths and
weaknesses of each business need to be evaluated. For example, when business does
poorly not because its departments lack required strengths but due to the reason that
they do not work as team.
Example: SWOT analysis in easyJet (low-cost airline in Europe)
z Strengths: Strengths are received from mover strategy having high profit margin
with good brand image.
z Weaknesses: The difference that exists between Ryanair and easyJet is that
easyJet is growing faster than Ryanair. The weakness for easyJet is that it is big as
traditional airlines. The entrepreneurial management structure is not valid
anymore.
z Opportunities: The recent trend is of low-cost travel. easyJet can place itself as
low-cost number airline.
z Threats: The growing strategy is cost intensive. easyJet spent high amount to
enter new markets in Germany and France.
16
Airline and Airport Organisation

Source: http://carrconsultants.files.wordpress.com/2011/11/swot-analysis.jpg

Figure 2.2: SWOT Analysis

2.4 CURRENT CHALLENGES IN AIRLINE INDUSTRY

2.4.1 Impact of other Competitors in the Industry
The airline management does not work independently of other competitors in the air
transportation industry. Indeed, the decisions of airline management are extremely
affected by these other competitors. The various entities that cooperate with airline
management and influence the decisions concerning government, airports, customers,
alliances, suppliers, unions and competitors

2.4.2 Era of 'Open Skies Policies' in Air Transport Services

Open Skies means "unrestricted access by any carrier into the sovereign territory of a
country without any written agreement specifying capacity, ports of call or schedule of
services." Thus, theoretically, when the skies are open, any foreign airline can land
any aircraft at any airport, with no restrictions on frequency and seat capacity.
However, in the interest of better discipline and regulation, an open skies policy
translates as de facto bilateral treaties to determine the aviation relations between two
countries. Close to 99 per cent of members of the International Civil Aviation
Organization (ICAO) have such agreements, specifying regularity of operations, basis
of ownership, type and certification of aircraft, and so on. "Open skies" air services
agreements are a more recent development, which, although limited in their overall
effect, are becoming increasingly common as countries seek to maximize the
downstream economic benefits that air services can provide. Open capacity, open
routes, and a full exchange of rights to carry passengers to one country, and then fly
on to another country, mark the generally accepted threshold for 'open skies'
agreements concluded so far. At the same time, various regional initiatives aimed at
promoting liberalization among members to regional agreements have been initiated
or are under consideration.
An interesting complement to the existing network of bilateral and plurilateral 17
approaches is the adoption by the economies of the Asia Pacific Economic Major Players, Challenges and
Competition in Airline Industry
Cooperation (APEC) of eight principles on air transport liberalization. Seven members
of APEC went further and adopted a regional open skies agreement based on these
principles (Findlay, 2003). The external relations agenda for air transport which was
put forward by the EC Commission in March 2005 would go beyond existing Open
Skies arrangements to create a "Common Airspace" with the EU's neighbouring
countries in the Mediterranean and along its eastern borders, operating under common
security and safety rules. As a second major element of its agenda, the commission
has signalled an intention to negotiate major new agreements to create an "Open Air
Space" with the United States and to establish liberalized trade in air transport services
with Russia and China. In addition, existing bilateral agreements between Member
States and non-EU countries would be brought into conformity with European Law
(EC Commission, 2005b and 2005c). Globally, above 3000 bilateral agreements were
made as on 2004. India has signed over 180 bilateral agreements (WTTC, 2003).
When pointing out to a skew in the actual utilization of contracted seats: "Whilst the
foreign carriers are in a position to use over 70 per cent of their entitlement, the
national carriers are only able to utilize 29.4 per cent of their share." For instance,
during the brief open sky period announced for December 2003 to April 2004, foreign
airlines were happier with 0.27 million additional seats. Similarly, during the 2004-05
open sky season, foreign airlines operated more than 2,300 extra flights, to ferry
0.58 million people.
Check Your Progress 1
Fill in the blanks:
1. Open Skies means ………………… by any carrier into the sovereign
territory of a country without any written agreement specifying capacity,
ports of call or schedule of services.
2. SWOT analysis includes ……………. analysis and ………………..
analysis.

2.5 MEASURES OF AIRLINES ACTIVITY

Airlines activity is analysed through capacity performance. There are two factors that
determine air transport activity, namely, Supply and Demand. Supply factor tells
about the availability of seats and tonnage in the aircraft. On the other hand, demand
refers to purchasing ability of the consumer to occupy a seat/freight in the airplane.

2.5.1 Supply Factor

Airlines produce a certain capacity on-plane for passenger and freight. This can be
measured in terms of passenger and freight with number of seats and capacity offered
on the plane, which is available for use. Supply factor is closely linked with cost.
Generally, airlines' performance on passenger and cargo is measured through
kilometres performed:
Number of Seats – KMs: Available Seat Kilometre (ASK) – PAX
Capacity in Tonnes – KMs: Available Tonne Kilometre (ATK) – FREIGHT
18 2.5.2 Demand Factor
Airline and Airport Organisation
Demand is linked with revenue and determines air transport demand in terms of
passenger and cargo (tonnes) realized through kilometres. In other words, it is
measured through:
Number of Passenger – KMs: Revenue Passenger in KMs (RPK)
Tonnes Kilometre Transported – KMs: Revenue Tonnes in KMs (RTK)
To determine the macro level performance of air transport industry, load factor should
be taken to analyse the airline activity. That is:
Lf = RPK/ASK
Lf = PAX/SEATS

2.5.3 Airline Traffic Performance

According to "Official Airline Guide" (OAG), there are around 890 airlines operating
17355 commercial aircrafts representing an average number of 230-250 seats per
plane with an operating income of US $ 312.9 billion in 2003 (ICAO, 2003).
However, large passengers and freight carriers assume a dominant share of the traffic.
Air transportation total annual incomes of about US $800 billion and total economic
impacts (direct and indirect) are estimated to be in the range of US$1,400 billion
(4.0% of the world's GDP). It is estimated that 90.0 per cent of all air carriers
operating scheduled air services were from three regions, viz., North America, Europe
and Asia Pacific, since these regions have opaque air traffic network and account for
90.0 per cent of the total global air traffic. International scheduled passenger services
were provided by 600 airlines and about 70 carriers provide international, scheduled,
all-freight services. 50.0 per cent of air carriers providing international scheduled
services are from two regions, viz., Europe and Latin America and Caribbean. The
table below indicates the total passenger carried by the national carriers in terms of
Total Passenger in Kilometre performed during the year 2003 as compared to 1993
from the top 25 countries in the world.
Table 2.1: Top 25 Countries in Total Passenger—Kilometre Performed
(Passengers in Million)

Ranking Country 2003 1993 % Change

1 United States 1016.0 773.3 31.4
2 UK 166.5 124.9 33.3
3 Germany 149.7 52.9 182.9
4 Japan 144.0 106.4 35.3
5 China 124.6 45.0 176.9
6 France 115.6 59.9 92.9
7 Australia 86.7 57.3 51.3
8 Canada 74.4 40.4 84.1
9 Netherlands 69.2 38.5 79.7
10 Singapore 65.4 41.3 58.3
11 Korea 63.1 34.1 85.0
12 Spain 57.6 27.1 112.5
13 Russia – CIS 53.9 NA NA
14 Gulf States 50.6 14.5 248.9

Contd…
 15 Thailand 44.7 22.9 95.2 19
Major Players, Challenges and
16 Brazil 44.0 29.6 48.6 Competition in Airline Industry
17 Italy 37.9 29.7 27.6
18 Malaysia 36.8 17.4 111.5
19 India 31.2 14.4 116.7
20 Mexico 29.3 18.2 60.9
21 Scandinavian 29.1 20.6 41.3
22 Ireland 27.4 4.2 552.4
23 South Africa 24.9 NA NA
24 New Zealand 23.8 14.2 67.6
25 Switzerland 23.8 NA NA
Source: Boeing, 2004

Total traffic includes international and domestic movements. Among the top
25 countries, US, UK and Germany ranks in the top three in providing air transport
services. India is at the 19th position among the top 25 countries in the world with an
increase of 116.7 per cent as compared to the year 1993. This proves that air transport
industry growth is very highly concentrated after the Liberalization scenario, 1991.
Therefore, India is enjoying good fortune in the aviation field, which in turn it will
help the Indian economy to grow vibrantly. Ireland (European Regions) had shown an
incredible performance with an increase of 552.4 per cent growth as compared to the
year 1993. The table reveals that Gulf States, Germany, China, India, Malaysia, Spain,
France and Canada grew above 50.0 per cent annually, with an increase of 248.9%,
182.9%, 176.2%, 116.7%, 111.5%, 112.5%, 92.9% respectively during the said
period. Most of the countries' performance is very satisfactory in the growth of air
transport industry.
Table 2.2: Top 25 Airlines Worldwide – 2003
Ranking Airlines Country Fleet Load Factor Pax
1 American US 714 72.8 88.2
2 Delta US 473 74.2 84.2
3 South West US 399 66.8 74.7
4 United US 484 76.5 66.2
5 Japan Japan - 64.3 58.2
6 North West US 432 77.2 51.9
7 All Nippon Japan 177 63.6 48.1
8 Lufthansa Germany 224 73.1 45.4
9 Air France France 245 75.6 43.7
10 US Airways US 280 73.2 41.3
11 Continental US 356 75.7 39.0
12 British Airways UK 229 73.0 36.1
13 Qantas Australia 116 77.6 28.9
14 Iberia Airlines Spain 149 75.0 25.6
15 Alitalia Italy 151 71.6 22.5
16 Korean Air Korea 123 68.1 21.7
17 Ryan Air UK 66 85.0 21.3
18 America West US 142 76.4 20.1
19 Air Canada Canada 195 73.8 20.0
Contd…
20 20 SAS Sweden 129 65.7 19.3
Airline and Airport Organisation
21 KLM Netherlands 100 80.2 19.0
22 Air China China 129 66.0 18.1
23 easyJet UK 84 80.4 18.1
24 Thai Airways Thailand 83 69.6 17.3
25 China Southern China 112 63.8 15.5
26 Singapore Singapore 96 72.2 13.9
27 Cathay Pacific China 70 72.2 10.1
28 Pakistan Pakistan 50 69.6 4.6
29 Biman Bangladesh 48 66.4 1.5
30 Air India India 35 69.5 3.7
31 Indian Airlines India 47 60.0 5.7
32 Alliance Air India 15 59.5 1.5
33 Jet Airways India 53 62.7 6.7
34 Air Sahara India 30 59.7 1.7
35 Air Deccan* India 15 75.0 (2004)
36 Spice Jet* India 5 80.0 (2005)
37 Kingfisher Airlines* India 5 70.0 (2005)
38 Paramount Airlines* India 5
Fleet – (in Numbers), Load Factor – (in %), Pax – (in Million) (*) – A/C operated in 2004/05.
Source: ICAO & Air Transport World, World Airline Report, 2004

The Table 2.2 reveals the airlines ranking, fleet size, load factor and the passengers
carried during the year 2003. The first top four rankings were shared by US Airlines
(American Airlines, Delta Airlines, South west and United Airlines) which carried
88.8 million, 84.2 million, 74.7 million, and 66.2 million passengers during the same
period. The load factor varied between 76.8%–66.5%. These four airlines have
approximately 2100 aircrafts, which are operating currently in the United States. Most
of the countries are self-sufficient in aircraft acquisition, except India. As compared to
other states, India has fewer aircraft and their performance also presents a negative
picture in terms of passengers carried as compared to other countries globally; even
Pakistan performed better than India in the aviation sector during the year 2003.
Therefore, government and policy makers should take drastic steps towards fleet
acquisition for better performance, in view of global competition, and this will, in turn
prod the economy to grow in international business.
Table 2.3: Total Tonnes Kilometres of Scheduled Traffic – Region-wise % Distribution
Regions 2002 1991
Pax (TTK) % Share Pax (TTK) % Share
Africa 65 02.2 39 02.1
Asia Pacific 786 26.7 360 19.5
European 771 26.2 552 29.9
Middle-East 106 03.6 46 02.5
North America 1083 36.8 760 41.2
Latin America & Caribbean 132 04.5 89 04.8
Total 2942 100.0 1845 100.0

Source: WTO Based ICAO Data

 Table 2.4: Asia Pacific Countries' Performance in Air Traffic in TTK, 21
TPK and International Traffic Performed – 2003 Major Players, Challenges and
Competition in Airline Industry
Country TTK (Million) TPK (Million) Int’l Traffic (Million)
Japan 20479 (1) 144084 (1) 14066 (1)
China 16906 (2) 124591 (2) 5527 (6)
Korea 14036 (3) 63099 (5) 13293 (2)
Singapore 13062 (4) 65387 (4) 13062 (3)
Australia 9855 (5) 86675 (3) 6212 (4)
Thailand 5871 (6) 44773 (6) 5564 (5)
Malaysia 5542 (7) 36824 (7) 5216 (7)
India 3410 (8) 31197 (8) 2011 (9)
New Zealand 2945 (9) 23822 (9) 2581 (8)
Indonesia 1861 (10) 17979 (10) 1031 (12)
Philippines 1751 (11) 12350 (11) 1495 (10)
Pakistan 1425 (12) 11755 (12) 1235 (11)
Sri Lanka 864 (13) 6910 (14) 864 (13)
Vietnam 819 (14) 7227 (13) 602 (15)
Bangladesh 704 (15) 697 (15) 697 (14)
Nepal 118 (16) 110 (16) 116 (16)

( ) Parenthesis indicates Ranking

Source: ICAO, Annual Report, 2003.

"Asia's revenue from passenger kilometres (RPKs) as at June 2004 has grown by
65.4% compared to 2003. The number of passengers carried (PAX) rebounded to 10.3
million from 5.6 million recorded in June 2003, an increase of 85.0%. Freight tonne
kilometres (FTKs) rose by 17.6%, the third straight month of double-digit growth."
– Association of Asia Pacific Airlines (AAPA)

2.6 COMPETITION BETWEEN AIRLINES IN THE WORLD

Over the past three years, airline industry has become more competitive. Air traffic
has fallen by 2% each year from 39% in 2010 to 35% in 2012. The highest
competition between airlines in the world exist in Asia, with 75% of air traffic volume
served by more than 3 airlines and only 25% of air traffic served by one or two
airlines.
Table 2.5: Percentage of Air Traffic Volume in Each Region with Number of
Operating Airlines

Region Passengers 1 2 3 4 5+
2012 operating operating operating operating operating
(Millions) airline airlines airlines airlines airlines
Asia 787 8% 17% 26% 22% 27%
Europe 680 15% 30% 26% 17% 12%
North America 597 10% 24% 27% 22% 17%
Latin America 189 9% 23% 32% 22% 13%
Middle East 99 22% 28% 24% 16% 10%
Contd…
22 South West 82 15% 29% 31% 20% 5%
Airline and Airport Organisation Pacific
Africa 52 20% 25% 22% 8% 26%

all 2,486 11.7% 23.4% 26.6% 20.1% 18.2%

Source: http://amadeusblog.co.za/competition-within-the-airline-industry-has-increased-consistently/

Table 2.6: LCC Share of Traffic in Each Region in 2011 and 2012
Region LCC share of traffic LCC share of traffic Proportional change
2011 2012 [in percentage points]
Europe 36.5% 38.0% +1.5
South West Pacific 35.5% 36.6% +1.1
North America 29.5% 30.2% +0.7
Latin America 26.6% 24.9% -1.7
Asia 16.5% 18.6% +2.1
Middle East 11.7% 13.5% +1.8
Africa 9.4% 9.9% +0.5
Source: http://amadeusblog.co.za/competition-within-the-airline-industry-has-increased-consistently/

2.7 INTERNATIONAL AIR TRANSPORT ASSOCIATION

(IATA)
The International Air Transport Association was founded in Havana, Cuba, in April
1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable,
secure and economical air services – for the benefit of the world’s consumers. The
international scheduled air transport industry is now more than 100 times larger than it
was in 1945. Few industries can match the dynamism of that growth, which would
have been much less spectacular without the standards, practices and procedures
developed within IATA. At its founding, IATA had 57 Members from 31 nations,
mostly in Europe and North America. Today, it has over 270 Members from more
than 140 nations in every part of the globe. The modern IATA is the successor to the
International Air Traffic Association founded in The Hague in 1919 – the year of the
world’s first international scheduled services.
International air transport is one of the most dynamic and fastest-changing industries
in the world. It needs a responsive, forward-looking and universal trade association,
operating at the highest professional standards. IATA brings together approximately
265 airlines. Flights by these airlines comprise 94 per cent of all international
scheduled air traffic. Since these airlines face a rapidly changing world, they must
cooperate in order to offer a seamless service of the highest possible standard to
passengers and cargo shippers. Much of that cooperation is expressed through IATA,
whose mission is to “represent, lead and serve the airline industry”.
Continual efforts by IATA ensure that people, freight and mail can move around the
vast global airline network as easily as if they were on a single airline in a single
country. In addition, IATA helps to ensure that Members’ aircraft can operate safely,
securely, efficiently and economically under clearly defined and understood rules. For
consumers, IATA simplifies the travel and shipping process. By helping to control
airline costs, IATA contributes to cheaper tickets and shipping costs. Thanks to airline
cooperation through IATA, individual passengers can make one telephone call to
reserve a ticket, pay in one currency and then use the ticket on several airlines in
several countries – or even return it for cash refund.
IATA is also a collective link between third parties and the airlines. Passenger and 23
cargo agents are able to make representations to the industry through IATA and derive Major Players, Challenges and
Competition in Airline Industry
the benefit of neutrally applied agency service standards and levels of professional
skill. Equipment manufacturers and third-party service providers are able to join in the
airline meetings, which define the way air transport goes about its business. IATA
allows airlines to operate more efficiently. It offers joint means – beyond the resources
of any single company – of exploiting opportunities, reducing costs and solving
problems. Airlines knit their individual networks into a worldwide system through
IATA, despite differences in language, currencies, laws and national customs.
IATA is a useful means for governments to work with airlines and draw on their
experience and expertise. Working standards within the aviation industry are
developed within IATA. In fostering safe and efficient air transport, IATA serves the
stated policies of most of the world’s governments.

2.7.1 Aims of IATA

The aims of IATA are to:
z Promote safe, regular and economical air transport for the benefit of the peoples of
the world, to foster air commerce, and to study the problems connected therewith.
z Provide means for collaboration among the air transport enterprises engaged
directly or indirectly in international air transport service.
z Cooperate with the newly created International Civil Aviation Organization
(ICAO – the specialized United Nations agency for civil aviation) and other
international organizations.
The most important tasks of IATA during its earliest days were technical, because
safety and reliability are fundamental to airline operations. These require the highest
standards in air navigation, airport infrastructure and flight operations. The IATA
airlines provided vital input to the work of ICAO, as that organization drafted its
Standards and commended Practices. By 1949, the drafting process was largely
complete and reflected in “Annexes” to the Chicago convention, the treaty which still
governs the conduct of international civil aviation. In those early days, ICAO
coordinated regional air navigation and support for airports and operational aids in
countries, which could not themselves, afford such services. IATA provided airline
input to ICAO and to sessions of the International Telecommunications Union on
wavelength allocation.
The standardization of documentation and procedures for the smooth functioning of
the world air transport network also required a sound legal basis. IATA helped to
interlock international conventions, developed through ICAO, with US air transport
law, which had developed in isolation prior to World War Two. The Association made
a vital input to the development of Conditions of Carriage, the contract between the
customer and the transporting airline. One early item on the legal agenda was revision
and modernization of the Warsaw Convention – originally signed in 1929 – on airline
liability for passenger injury or death and cargo damage or loss. This work continues
once they were operating within a sound technical and legal framework. Airlines’ next
requirements were for answers to questions such as: who can fly where? What prices
are to be charged? How is the money from multi-airline journeys – that is,
interlining – to be divided up, and how do airlines settle their accounts?
The Chicago Conference of 1944, which gave birth to the Chicago Convention tried to
achieve a multilateral answer to the first two questions, but failed to do so. The
questions of who flies, and where, were resolved on a bilateral basis. The benchmark
Bermuda Agreement of 1946 between the US and the UK was the first of almost
24 4,000 bi-lateral air transport agreements so far signed and registered with ICAO. In
Airline and Airport Organisation the early days, governments insisted on the right to oversee the prices charged by
international airlines, but could not in practical terms, develop those prices for
themselves. IATA was delegated to hold Traffic Conferences for this purpose, with all
fares and rates subject to final government approval. The aim was twofold: ensuring
that fares and rates would not involve cut-throat competition, while ensuring that they
could be set as low as possible, in the interests of consumers.
A coherent pattern of fares and rates pattern was established, avoiding inconsistencies
between tariffs affecting neighbouring countries – and thereby avoiding traffic
diversion. The predictability of fares and rates in this pattern also enabled airlines to
accept each other’s tickets on multi-sector journeys and thus gave birth to interlining.
Today, 50 million international air passengers a year pay for their ticket in one place,
in one currency, but complete their journey using at least two, and sometimes five or
more, airlines from different countries using different currencies. The first worldwide
Traffic Conference was held in Rio de Janeiro in 1947. It reached unanimous
agreement on nearly 400 resolutions covering all aspects of air travel. Fare
construction rules for multi-sector trips, revenue allocation – pro-rating – rules,
baggage allowances, ticket and air waybill design and agency appointment procedures
were typical details agreed at this pioneering meeting.
Today, that pioneering work is reflected in the currently applicable IATA Resolutions
dealing with these and many other subjects. Notable examples are:
z Multilateral Interline Traffic Agreements: These are the basis for the airlines’
interline network. About 300 airlines have signed and accepted each other’s
tickets and air waybills – and thus their passenger and cargo traffic – on a
reciprocal basis.
z Passenger and Cargo Services Conference Resolutions: These prescribe a
variety of standard formats and technical specifications for tickets and air way
bills.
z Passenger and Cargo Agency Agreements & Sales Agency Rules: These govern
the relationships between IATA Member airlines and their accredited agents with
regard to passenger and cargo.
Debt Settlement between airlines, largely arising from interlining, takes place through
the Clearing House, which began operations in January 1947. During its first year,
17 airlines cleared (US) $26 million. By 1994, the Clearing House had
380 participants including non-airlines. The total cleared was (US) $22.8 billion.
Typically, almost 90 per cent of debts between participants are offset and there is
no need for cash transfers.

2.8 INTERNATIONAL CIVIL AVIATION ORGANIZATION

(ICAO)
The outcome of the studies begun by the US, and the succeeding consultations
between the Major Allies, was that the US government extended an invitation to
55 States to attend an International Civil Aviation Conference in Chicago in
November 1944, at the end of which a Convention on International Civil Aviation was
signed by 32 States to set up the permanent International Civil Aviation Organization
(ICAO) as a means to secure international cooperation for a highest possible degree of
uniformity in regulations and standards, procedures and organization regarding civil
aviation matters. At the same time the International Services Transit Agreement and
the International Air Transport Agreement were signed.
The most important work accomplished in the technical field by the Chicago 25
Conference was that it laid the foundation for a set of rules and regulations regarding Major Players, Challenges and
Competition in Airline Industry
air navigation safety and paved the way for the application of a common air
navigation system throughout the world. ICAO was firmly established in 1947, and it
was realized that the work of the Secretariat, especially in the technical field, would
have to cover two major activities:
1. Those which covered generally applicable rules and regulations concerning
training and licensing of aeronautical personnel both in the air; and
2. On the ground, communication systems and procedures, rules for the air and air
traffic control systems and practices, airworthiness requirements for aircraft
engaged in international air navigation as well as their registration and
identification, aeronautical meteorology and maps and charts.
For obvious reasons, these aspects required uniformity on a worldwide scale if truly
international air navigation was to become a possibility. Activities in these fields had
therefore to be handled by a central agency, i.e., ICAO headquarters, if local
deviations or separate developments were to be avoided. The 96 articles of the
Chicago Convention establish the privileges and restrictions of all contracting states
and provide for the adoption of International Standards and Recommended Practices
(SARPs) regulating international air transport.
The main aims and objectives of ICAO, as contained in Article 44 of the Chicago
Convention are to develop the principles and techniques of international air navigation
and to foster the planning and development of international air transport so as to:
z Insure the safe orderly growth of international civil aviation throughout the world
z Encourage the arts of aircraft design and operation for peaceful purpose
z Encourage the development of airways, airports and air navigation facilities for
international civil aviation
z Meet the needs of the peoples of the world for safe, regular, efficient and
economical air transport
z Prevent economic waste caused by unreasonable competition
z Insure that the rights of contracting states are fully respected and that every
contracting state has fair opportunity to operate international airlines
z Avoid discrimination between contracting states
z Promote safety of flight in international air navigation
z Promote generally the development of all aspects of international civil aeronautics
At present, there are 189 countries that are the members of the International Civil
Aviation Organization (ICAO), as on September 2005.

2.8.1 ICAO’s Objectives

The objectives of ICAO are described below:

Standardization
ICAO’s principal activities are standardization, the establishment of International
Standards Recommended Practices and Procedures (SRPP) covering the technical
fields of aviation: licensing of personnel, rules of the air, aeronautical meteorology,
aeronautical charts, units of measurement, operation of aircraft, nationality and
registration marks, airworthiness, aeronautical telecommunications, air traffic
services, search and rescue, aircraft accident investigation, aerodromes, aeronautical
26 information services, aircraft noise and engine emissions, security and the safe
Airline and Airport Organisation transport of dangerous goods. After a Standard is adopted, it is put into effect by each
ICAO Contracting State in its own territories. As aviation technology continues to
develop rapidly, the Standards are kept under constant review and amended as
necessary.

Communication Navigational Surveillance/Air Traffic Management

ICAO’s most recent significant achievements have been the development of a
satellite-based system concept to meet the future Communications, Navigation and
Surveillance/Air Traffic Management (CNS/ATM) needs of civil aviation.
CNS/ATM, formerly known as the Future Air Navigation Systems (FANS) concept, is
essentially the application of today’s high technologies in satellites and computers,
data links and advanced flight deck avionics, to cope with tomorrow’s growing
operational needs. It produces economies, efficiencies and greater safety. This will be
its further impact as an integrated global system, with consequential changes to the
way air traffic services are organized and operated. The CNS/ATM systems concept
has received the endorsement of ICAO Member States, and is now in its
implementation phase. This major task includes the development of standards,
recommended practices and guidance material, which will be applied well into the
21st century.

Regional Planning
Aviation tribulations are on a worldwide scale with various specialized/
professionalized subjects on a regional basis. ICAO recognizes nine geographical
regions, for planning the provision of air navigation facilities and services required on
the ground by aircraft flying in these regions. In each of the regions, keeping in mind
the objective of producing a seamless global air traffic management system, careful
planning is necessary to produce the network of air navigation facilities and services
upon which the aero planes depend the aerodromes, the meteorological and
communications stations, the navigation aids, the air traffic control units, the search
and rescue bases, the thousands of facilities to be established and operated and the
services to be rendered. The plan, which emerges from a regional meeting, is so
designed that, when the States concerned implement it, it will lead to an integrated,
efficient system for the entire region and contribute toward the global system. When
States require assistance in this regard, ICAO’s help is available through seven
regional offices, each one accredited to a group of Contracting States. These offices
have as their main function, the duty of encouraging, assisting, expediting and
following up the implementation of the Air Navigation Plans and maintaining them up
to date. In addition, regional planning and implementation groups have been
established in ICAO regions to assist the regional offices in keeping the regional plans
up-to-date and in fostering their implementation.

Facilitation
ICAO has tried to persuade its Contracting States to reduce red tape, and International
Standards on facilitation. In addition to reducing procedural formalities, ICAO’s
efforts are also aimed at providing adequate airport terminal buildings for passengers
and their baggage as well as for air cargo, with all related facilities and services. The
obstacles placed by customs, immigration, public health and other formalities on the
free and unimpeded passage of passengers and cargo across international boundaries
have been a particularly serious impediment to air travel.
Economics 27
Major Players, Challenges and
International Civil Aviation requires international air transport services to be Competition in Airline Industry
established on the basis of equality of opportunity and operated soundly and
economically. In fact, ICAO’s basic objective is the development of safe, regular,
efficient and economical air transport. To assist States in planning their air transport
services, ICAO collects and publishes comprehensive world aviation statistical data,
and undertakes extensive economic studies in line with Resolutions of the ICAO
Assembly and Recommendations of worldwide conferences. ICAO also produces
manuals for the guidance of States in such areas as statistics, air traffic forecasting,
airport and air navigation facility tariffs, the economic regulation of air transport and
the establishment of airfares and rates.

Technical Cooperation for Development

ICAO pays special attention to promoting civil aviation in developing countries.
An important instrument in this work has been the United Nations Development
Programme. So far, most of the Organization’s work in this area has been directed
toward the development of the ground services required for civil aviation and, in
particular, toward aerodromes, air traffic control, communications and meteorological
services; in the past few years, and with the advent of larger and more complex
aircraft, requests for assistance in the more sophisticated fields of aviation, including
airports operations, have been increasing in number. In response to the alarming
incidents in recent years of acts of unlawful interference against aircraft and airports,
ICAO also provides assistance to States in order to improve their aviation security
facilities and procedures.

Law
ICAO has more than one hundred and eighty nine Contracting States. There are many
legal philosophies and different systems of jurisprudence. Therefore to unify this, the
development of a code of international air law is mandatory. It is a function of ICAO
to facilitate the adoption of international air law instruments and to promote their
general acceptance. So far, many international air law instruments have been adopted
under the Organization’s auspices involving such varied subjects as the international
recognition of property rights in aircraft, damage done by aircraft to third parties on
the surface, the liability of the air carrier to its passengers, crimes committed on board
aircraft, the marking of plastic explosives for detection and unlawful interference with
civil aviation.
Check Your Progress 2
Fill in the blanks:
1. The main aims and objectives of ……………….. are to develop the
principles and techniques of international air navigation and to foster the
planning and development of international air transport.
2. The ……………………. was founded in Havana, Cuba, in April 1945.

Case Study: Strategic Sourcing Initiative for a U.S. Airline

A
U.S. airline sought a strategic partner to implement an IT sourcing
initiative. The partner had to source a portfolio of 450 applications
without impacting service levels. Infosys studied the applications to
be transitioned for maintenance and clustered them into groups based on
business areas. We successfully managed the multi-year transition spread over
Contd…
28 multiple locations. The applications are now being maintained with
Airline and Airport Organisation continuous improvements.
Business Need
The airline wanted to improve service levels and implement industry best
practices. In addition, the airline sought to free SMEs from production support
for major initiatives and reduce support costs. Before the sourcing initiative,
production and maintenance teams executed the projects. It resulted in
frequent overruns in allocated budgets and schedules. Typical production
tasks had no process and the airline was dissatisfied with the existing level of
support services. Infosys had to address specific challenges during
implementation:
z The portfolio included several mission-critical and business-critical
applications. It also included a large number of legacy applications
without documentation or limited documentation
z Varied landscape from Mainframes to Lotus Notes to J2EE, including
lesser-used technologies such as Mark IV, DEC VAX and Focus
z Transition had to be executed from four cities in the U.S. and three
offshore locations
Infosys’ Role
Infosys successfully executed the entire program. The process included:
z Transition of the maintenance work for over 450 applications
z Program management of the transition team spread across seven locations
(four in the U.S. and three in India)
z Establishing relevant processes for a production support organization
z Organization change management
z Establishing infrastructure, processes, governance structure definition,
SLA definition and contract management
Strategy
Infosys assisted in organization change management through constant
communication with the management and conducted interactive knowledge
sharing sessions. We provided a mix of technical skills and roles in each area
and extensively documented the transitioned systems through System
Appreciation Documents. In addition, we defined the program governance
structure and transition portfolio planning for a metrics-driven transition
management. We undertook effective risk management and ensured business
continuity.
Benefits
Our approach realized several benefits:
1. Quick and seamless transition of more than 450 applications, completed
in three waves of six months each
2. Transition completed on time, on schedule, within budget and without
impacting service levels
3. Project exceeded the airlines' objectives
Contd…
 4. Freeing up of the airlines’ SMEs, enabling them to participate in other 29
initiatives Major Players, Challenges and
Competition in Airline Industry
5. Continuous improvement of application portfolio through value additions
(creating user documents, building utilities and automation of business
functions) root cause analysis of problematic areas and preventive
maintenance
6. Extensive documentation of transitioned systems maintained online as
future reference for projects
7. Significant cost benefit through offshoring
8. Flexibility in ramping up and ramping down resources for projects –
minimum team size of 35 to a peak size of 200 in less than a year
9. Assured service levels
10. ITIL processes tailored to the current organization
Questions
1. How did the airline improve upon its service level?
2. Discuss the different steps taken to maintain business continuity.
3. What are the benefits of risk management?
Source: http://www.infosys.com/industries/airlines/case-studies/Pages/strategic-sourcing.aspx

2.9 LET US SUM UP

The airline management does not work independently of other competitors in the air
transportation industry. Indeed, the decisions of airline management are extremely
affected by these other competitors. SWOT analysis allows the company to predict
different factors that affect competitiveness of company. The International Air
Transport Association was founded in Havana, Cuba, in April 1945. It is the prime
vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical
air services – for the benefit of the world’s consumers. International Civil Aviation
Organization (ICAO) as a means to secure international cooperation for a highest
possible degree of uniformity in regulations and standards, procedures and
organization regarding civil aviation matters.

2.10 LESSON END ACTIVITY

Visit different airports and meet the personnel of airport to identify the competition
that exist between airlines in the world.

2.11 KEYWORDS
IATA: The International Air Transport Association is the prime vehicle for inter-
airline cooperation in promoting safe, reliable, secure and economical air services –
for the benefit of the world’s consumers.
ICAO: International civil aviation organisation is a means to secure international
cooperation for a highest possible degree of uniformity in regulations and standards,
procedures and organization regarding civil aviation matters.
30
Airline and Airport Organisation
2.12 QUESTIONS FOR DISCUSSION
1. Discuss the major players in airline industry.
2. Discuss the competition between airlines in the world.
3. Write short notes on IATA and ICAO.
4. What are the different aims of IATA?
5. Explain the objectives of ICAO.

Check Your Progress: Model Answers

CYP 1
1. Unrestricted access
2. Internal environment, external environment

CYP 2
1. ICAO
2. International Air Transport Association

2.13 SUGGESTED READINGS

Speciale, Raymond, (2006), Fundamentals of Aviation Law, McGraw Hill
T. Wells, Alexander, (2004), Airport Planning & Management, McGraw Hill
 31
Passenger, Baggage and
Aircraft Handling

UNIT II
32
Airline and Airport Organisation
 33
LESSON Passenger, Baggage and
Aircraft Handling

3
PASSENGER, BAGGAGE AND AIRCRAFT
HANDLING

CONTENTS
3.0 Aims and Objectives
3.1 Introduction
3.2 Handling of Passengers
3.2.1 Arrival and Departure Procedures – A Passenger goes through at the Airport
(International and Domestic)
3.2.2 Passenger Handling System
3.2.3 Passengers and their Required Processing Facilities
3.2.4 Ticketing
3.2.5 Security Screening
3.2.6 At-gate Processing
3.2.7 Federal Inspection Services (FIS)
3.2.8 Ancillary Passenger Terminal Facilities
3.2.9 Vertical Distribution of Flow
3.3 Baggage Handling
3.3.1 Security Screening of Checked Baggage
3.3.2 Baggage Claim
3.4 Catering Planning
3.4.1 Role of Caterers
3.4.2 Menu Planning Process
3.5 Aircraft Handling
3.5.1 Functions of the Flight Control System (FCS)
3.6 Let us Sum up
3.7 Lesson End Activity
3.8 Keywords
3.9 Questions for Discussion
3.10 Suggested Readings
34
Airline and Airport Organisation
3.0 AIMS AND OBJECTIVES
After studying this lesson, you should be able to:
z Understand the concept of passenger handling
z Outline the steps of arrival and departure procedure – a passenger goes through an
airport
z Discuss the passenger handling system
z Elaborate the steps involved in baggage handling
z Understand the catering planning
z Know about the aircraft handling

3.1 INTRODUCTION
In order to be well acquainted with airport procedures, one should have adequate
knowledge about the various other important issues related to airport like how the
passengers should be handled and procedure for handling baggage.

3.2 HANDLING OF PASSENGERS

3.2.1 Arrival and Departure Procedures – A Passenger goes through at the
Airport (International and Domestic)
The procedure for arrival and departure can be summarized as follows:
z Before entering the Airport Entry terminal passenger has to show his/her tickets
(the printout of the e-ticket) to the security in order to enter the airport.
z Inside the airport passengers will find various airlines boarding pass issuance
counter. At the counter passenger has to produce the e-ticket printout and his
photo id.
z If passenger has any check-in luggage, passenger has to place it on the conveyor
next to the boarding pass issuance counter and the weight, etc. will be checked
and the baggage will be passed for check-in. The common weight limit for the
check-in baggage will be around 20kg. Different airlines have different weight
limits. The limits may vary between airlines.
z Passenger can also mention their seat preference (Window, Centre or Aisle) and
would be allotted as per availability.
z In case where a passenger has a cabin baggage a tag will be fixed to the same.
Without the tag the bag will not be allowed in the cabin. The cabin bag allowed
would be around 6 to 7 kg. But the weight will not be checked.
z Subsequent to this passenger will have to go to the check-in terminal (specified on
boarding pass) and go through security. Passengers should avoid carrying any
foods/liquids with them.
z After the security scan of passenger and the cabin baggage, passenger has to wait
near the boarding counter for the check-in.
z The airlines personal would announce the boarding and passenger can then go to
the terminal for boarding. Once through passenger might either have to travel to
the plane by a bus or sometimes the plane will be connected to the boarding
terminal.
z After entering the plane, the cabin crews would guide passengers through the 35
flying procedures. Passenger, Baggage and
Aircraft Handling

3.2.2 Passenger Handling System

The commercial airport terminal's passenger handling system is a series of links and
processes that facilitate the transfer of passengers between an aircraft and one of the
modes of the local ground transportation system. These processes include the flight
interface, passenger processing and access/processing interface.
The flight interface provides the link between the aircraft gates and passenger
processing facilities. The flight interface includes gate lounges and service counters,
moving sidewalks, buses, and mobile lounges; loading facilities such as loading
bridges and air stairs; and facilities for transferring between flights, including
corridors, waiting areas, and mobile conveyance facilities.
Passenger processing facilities accomplish the major processing activities required to
prepare departing passengers for use of air transportation and arriving passengers to
leave the airport for ground transportation to their ultimate destinations. Primary
activities include ticketing, baggage check, security, passport check, baggage claim,
customs, and immigration. Facilities include ticketing and baggage check-in counters,
baggage and passenger security stations, information kiosks, baggage claim carousels,
customs facilities, and rental car and other ground transportation desks.
The access/processing interface makes up the facilities that coordinate the transfer of
passengers between ground transportation and the terminal building, where passenger
processing facilities are typically located. Activities at the access/processing interface
include loading and unloading of passengers and baggage from vehicles at the curb
and transit stations, and pedestrian circulation from vehicle parking facilities. The
access/processing interface includes the vehicular drive and terminal curb, sidewalks,
shuttle buses, automated conveyance systems to and from parking facilities, and bus
stops, taxi stands, and rail stations. In addition, the access/egress interface facilitates
the movement of passengers and ground vehicles between origins and destinations in
the community and the airport property. The access/egress interface is a component of
the airport's ground access system.

3.2.3 Passengers and their Required Processing Facilities

One of the greatest challenges of managing airport terminal operations is the challenge
of accommodating the necessary and desired processing needs of a wide spectrum of
passengers. It is staggering to think that nearly every one of the more than 650 million
passengers that travel annually on commercial air carriers has a unique itinerary, and
unique needs that must be accommodated. Passengers may be categorized in several
manners, some of which include a passengers' segment of itinerary, trip purpose,
group size, type of baggage carried, and type of ticket, and whether the passenger is an
international or domestic traveller. Each passenger, by nature of the various categories
that passenger may fall into, requires certain facilities, known as essential processing
facilities within the airport terminal area. The understanding of each of these facilities
on an individual basis, as well as an understanding of how each facility interacts with
the other facilities, is itself essential for terminal operations to be successful.
Passenger processing requirements and other needs vary widely on the basis of the
segment of itinerary the passenger is on while at the airport. The three primary
itinerary segments are departing, arriving, and transferring. Departing passengers are
those passengers who are entering the terminal from the ground access system through
the access/processing interface. Arriving passengers are those passengers who have
just deplaned an aircraft and entered the terminal from the flight interface with the
36 intentions of leaving the airport terminal for their final destinations through the
Airline and Airport Organisation access/egress interface. Transfer passengers are entering the terminal from the flight
interface with the intention of boarding other flights for their ultimate destinations
within a relatively short period of time, again through the flight interface.
Passengers travelling within the United States (or within the confines of any country,
for that matter) are considered domestic passengers. In the United States, even those
passengers that are not United States citizens are considered domestic passengers if
their itinerary is within the confines of the United States. In other countries, non-
citizens may be considered international passengers, even when travelling within the
confines of the country. Passengers travelling to or from the United States are
considered international passengers, regardless of their citizenship, and are processed
accordingly.
The trip purpose of a passenger has traditionally been an indicator of the passenger's
individual needs. The two most common trip purposes identified in the industry are
travelling on business, or travelling for leisure, although it is understood that many
traveller' itineraries combine both business and leisure activities.
The group size of passengers plays a significant role in determining the most efficient
manner for passenger processing, particularly through the access/processing interfaces
and processing system. Group sizes of passengers tend to be categorized as either
travelling individually (or in small groups), or travelling in large groups (typically of
20 or more passengers in the same group).
The type of baggage carried by passengers may determine not only the processing
required by such passengers but also the design and planning of baggage handling
facilities. Passengers are said to be carrying either no baggage, carry-on baggage,
baggage to be checked in, and/or oversized or oddly shaped baggage (such as golf
clubs or skis).
Most recently, the type of ticket that a passenger purchases from the air carrier has
contributed to determining the type of processing required. Since the early 1990s,
passengers have been able to purchase either traditional paper tickets or electronic
tickets. Electronic ticketing facilitates the processing of departing passengers by
removing the necessity of carrying a paper ticket for initial processing.
The true challenge of airport terminal planning and management is to accommodate
the needs of all passengers, as well as their friends and families who meet them or see
them off (commonly known as meeters/greeters), airport employees, airline
employees, concession workers, and government staff, while minimizing the conflict
between any individuals or groups.
Although every airport terminal is different in the number, type, and arrangement of
passenger processing facilities, there are a series of essential processing facilities that
must be present to ensure appropriate processing for passengers travelling on each
itinerary segment. For all departing passengers, these facilities include ticketing and
passenger security screening. For those passengers travelling with baggage to be
checked in, baggage explosive detection screening processing is required. Finally,
departing passengers require some form of processing just prior to boarding at the
gate.

3.2.4 Ticketing
The ticketing process has come a long way since the early days of passenger
processing at airport terminals, although some characteristics dating back to the
original ticketing policies, including the term ticketing, remain. Traditional ticket
counters are facilities staffed by air carrier personnel. As with gates, ticket counters 37
may be configured for exclusive use or common use. Passenger, Baggage and
Aircraft Handling
Exclusive-use ticket counters are typically configured with information systems,
computers, and other equipment specific to one air carrier. The number of positions at
the ticket counter is typically determined by the airline on the basis of the estimated
number of departing passengers over the course of the operating day, particularly at
busy, or peak, times. Most scheduled air carriers with consistent volumes of scheduled
operations, tend to have exclusive-use ticketing facilities at commercial service
airports. Common-use ticket counters are typically configured for use by multiple air
carriers. Many common-use ticketing facilities are equipped with Common Use
Terminal Equipment (CUTE), a computer-based system that can accommodate the
operating systems of any air carrier that shares the ticketing facility.
A growing number of airport terminals serving air carriers that have infrequent service
to the airport, charter carriers, and international carriers have implemented common-
use ticketing facilities, which provide the ability to serve more air carriers and
passengers with less physical ticket counter space than their exclusive-use
counterparts.

Figure 3.1: CUTE (Common Use Terminal Equipment) with Variable LED and
CRT Signage
The traditional processing that occurs at an airline ticket counter includes the
purchasing of airline tickets for trips either on the day of purchase or for future travel,
the assignment of seats, and the issuance of boarding passes. For passengers checking
in baggage, the ticket counter has traditionally served as the location where bags
would be checked and entered into the baggage handling system. For the first 60 years
of commercial aviation, much of the functions performed at the ticket counter were
done manually. In recent years, the implementation of computer technology,
information sharing, and automation have allowed much of the traditional processes to
be distributed among other locations, many of which are not located at the airport
terminal itself. The purchasing of airline tickets through travel agents, over the
telephone, and increasingly through the Internet comprises the vast majority of airline
ticketing transactions. Furthermore, the ability to acquire seating assignments, and in
some cases boarding passes, through automated systems renders the airport terminal's
ticketing process an unnecessary part of many departing passengers' travels through
the terminal.
38 Most recently, the introduction of automated kiosks by many air carriers, located near
Airline and Airport Organisation traditional ticket counters, perform many of the essential services of the traditional
ticket counter, at least for those passengers travelling on electronic tickets. In addition,
some airports have employed Common Use Self-Service (CUSS) kiosks, which offer
check-in for multiple air carriers.
Despite the vast changes in technology and policies over time, the traditional ticket
counter may never become obsolete. During periods of irregularity, such as when
flights are delayed or cancelled, or when passengers need special assistance with their
itineraries, the ticket counter often becomes the first location that passengers go to in
order to find an airline representative for assistance. Ticketing has from time to time
shared a portion of the passenger and baggage security screening processes at the
airport. During past time, bombing of Pan Am 103 over Lockerbie, Scotland, initial
passenger screening was performed by air carrier ticket agents by asking questions of
each passenger checking in baggage. Those questions were:
1. "Did you pack your own baggage?"
2. "Have your bags been with you at all times since you packed them?"
The purpose of these questions was to prevent the stowage of explosives in checked
baggage on the philosophy that no passenger would willingly board an aircraft with
explosives set to destroy the aircraft in his or her baggage. In 2002, the Transportation
Security Administration (TSA) discontinued this process.

Figure 3.2: Common Use Self-service (CUSS) Kiosk

In 2003, ticketing facilities began performing first phases of security screening by
directing all checked-in baggage to explosive detection screening stations. In addition,
experimental TSA policies at some airports, which require all passengers to be in
possession of a boarding pass prior to entering the passenger security screening
processing area, have put new burdens on ticketing areas to issue boarding passes to
passengers who, before the policy was implemented, would not receive their boarding
passes until reaching their gates, beyond security checkpoints

3.2.5 Security Screening

The processing of passengers and baggage for the purpose of ensuring the security of
the civil aviation system has undergone a virtual overhaul following the terrorist
attacks on the United States on September 11, 2001. As of 2003, passenger and
baggage security screening is managed and operated by the Transportation Security
Administration (TSA). Although the TSA has ultimate authority over the facilities and 39
procedures that comprise the security screening processes, airport managers and Passenger, Baggage and
Aircraft Handling
planners should be keenly aware of the security screening process, because the process
has presented the most significant impacts on airport terminal planning and operations
in recent years.

3.2.6 At-gate Processing

The remaining processing to be performed on a passenger prior to boarding an aircraft
typically occurs at the gate area. Each air carrier has its own method of boarding
passengers onto aircraft. Some air carriers board in order of fare class, first class first,
coach class next. Others board passengers in order by the row number of their
assigned aircraft seats (rear to front). Yet others board simply on a first-come,
first-served basis. For all air carriers, however, regulations state that each passenger
must show a boarding pass and government-issued photo identification to an air
carrier gate agent prior to boarding. At times, gate processing has also incorporated
security screening policies. Early policies employed by the Transportation Security
Administration called for randomly selecting boarding passengers for additional
passenger and carry on baggage screening.
In addition to boarding, passenger processing within the gate area also includes
administrative issues regarding a passenger's ticket, including seat assignment
changes, requests to stand by for a flight, and any irregular issues that may arise.

3.2.7 Federal Inspection Services (FIS)

Passengers arriving on international flights must generally undergo customs and
immigration formalities at the airport of their initial landing in the United States.
Federal Inspection Services (FIS) conducts these formalities, which include passport
inspection, inspection of baggage, and collection of duties on certain imported items,
and sometimes inspection for agricultural materials, illegal drugs, or other restricted
items. FIS is operated by the United States Customs Service, which was later,
administered under the Department of Homeland Security.
In recent years, introduction of streamlined procedures for returning U.S. citizens, the
"red channel, green channel" system for passing through customs, and computerized
access to records at inspection stations have substantially sped the flow of passengers
at many airports. Flights from some Canadian and Caribbean airports are pre-cleared
at the originating airport, so arrival formalities are substantially reduced or eliminated.
International passengers generally arrive in an area segregated from other parts of the
airport. All passengers must leave the aircraft and proceed through customs and
immigration at a flight's first arrival in the United States. There is little layover or
transfer activity in international areas of U.S. airports. U.S. citizens currently proceed
directly to baggage claim and then to customs, whereas foreign nationals must first
clear immigration.
On arrival at one of the several inspection booths, foreign passengers present their
passports and other documents and parallel lines form. In some busy airports, roving
immigration officers examine documents of passengers in queues, helping to ensure
that all documents are in order and thereby reducing the average time required for
each passenger to clear immigration.
At most U.S. airports, U.S. citizens' immigration and customs inspections are
combined. Following re-entry to the United States, U.S. passengers retrieve their
baggage and proceed to customs inspection. Conditions at the baggage claim might
become a capacity problem when too many people are crowded into the baggage
claim area and baggage arrives slowly. On the basis of declarations made by the
40 arriving passengers and the judgment of the customs inspector, passengers might be
Airline and Airport Organisation required to open their luggage for inspection and might have to pay duties on imported
goods. Most passengers proceed directly through an inspection station and exit to the
arrivals lobby. The time spent waiting for and undergoing immigration and customs
inspections and the conditions of crowding in which the passenger waits determine the
service level and capacity of the FIS facility. Flight origins may also influence the
degree of attention that arriving passengers receive from FIS inspectors. Flights from
some parts of the world may receive careful examination because of concern for drug
smuggling or may have large numbers of passengers whose visas and other entry
papers are carefully examined. Flights from some countries carry large baggage loads,
which places an extra burden on customs inspectors. The number, size, and load factor
of arriving aircraft can be used to estimate passenger loads at customs and
immigration facilities. Walking speeds and distances from arrival gates to the
inspection areas determine the distribution of actual passenger arrivals. Operating
procedures and planning standards for customs and immigration facilities are specified
by the FIS. However, growth in international travel has made it difficult to maintain
planning standards at many airports.

3.2.8 Ancillary Passenger Terminal Facilities

Although not technically required for passengers, ancillary, or nonessential facilities,
are often provided in airports to improve the overall travel experience. Non-essential
facilities include food and beverage services, retail shops, common waiting areas,
information kiosks, post offices, places of worship, hotels, conference centres, bars,
and smoking lounges. These facilities, known as concessions, when properly
managed, not only offer benefits to passengers, but also may generate significant
levels of revenue to support the operations of the airport.
The management of concessions within airport terminals continues to mature.
At many large commercial service airports, where large volumes of passengers
provide significant market potential for retail products and services, airport terminals
have established concessions programs that offer brand name products and services,
ranging from fast-food, to specialty items. Many airports include concessions that
promote and support the local economy. These programs may include the presence of
shops that offer locally made products, or products associated with the area.
In addition, many airports have DBE (Disadvantaged Business Enterprise) programs
which offer minority and woman-owned businesses to set up shop in the airport, at
reduced lease rates, at part of its concessions program.
Check Your Progress 1
Fill in the blanks:
1. Airport terminal's ……………………….. is a series of links and
processes that facilitate the transfer of passengers between an aircraft and
one of the modes of the local ground transportation system.
2. Exclusive-use ……………….. are typically configured with information
systems, computers, and other equipment specific to one air carrier.

3.2.9 Vertical Distribution of Flow

By locating passenger processing facilities, both essential and nonessential, in
convenient locations and in a logical order, terminal planners aim to keep passengers
moving through airports with a minimal amount of confusion and congestion. To fully
understand the behaviour of passengers within a terminal, passenger flow diagrams
are constructed. Passenger flow diagrams illustrate the direction and volume of
passengers travelling from one processing facility in a terminal to another. On the
basis of this information, airport terminal facilities may be appropriately sized and 41
managed to maintain efficient operations (Figure 3.3). Passenger, Baggage and
Aircraft Handling

Figure 3.3: Vertical Distribution of Passenger Flow

Many of the larger airports distribute the passenger flow over several levels within the
airport terminal. The primary purpose of distributing passenger processing activities
over several levels is to separate the flow of arriving and departing passengers. The
question of how many levels a terminal building should have depends primarily on the
volume of passengers. It is also influenced by the type of passengers: domestic,
international, and transfer. Figure 3.3 shows a cross-section of the major functional
areas in a multilevel passenger terminal. Departing passengers park their vehicles (1)
and proceed via the bridge level (3) into the terminal or are dropped off at the
vehicular circular drive (enplane drive) (5). Ticketing lobby (6), concourse (11), and
gate area (14) are all on the first level. Arriving passengers proceed from the gate area
(14) through the concourse (11) to the baggage claim area (7). After claiming their
baggage, they proceed to the parking facility (1) via the bridge level (3) or are picked
up at the ground level (deplane drive) (4). Notice that the airport offices (10),
mechanical, storage and maintenance facilities (8), and service vehicle drive (2) are
located above or below the passenger flow. Transit shuttles (9) and satellite transit
tunnel (13) leading to a satellite terminal (normally for long-haul domestic or
international flights) are located on the lower level. Variations in this basic design
might occur when traffic volumes or types of traffic require. For example, at large
airports where transportation between terminals operates, a special level might be
needed to provide access to these systems. In addition, some airports use special levels
to accommodate high-occupancy vehicles, such as shuttle vans or coach buses.

3.3 BAGGAGE HANDLING

Baggage handling at the airport comprised of crucial steps laden with some high-tech
device. The system has to be appropriately managed so as to keep the travellers
contented and satisfied with the service. Attaining it is impossible in the absence of
conveyers, automatic scanners or the Destination-coded Vehicles (DCV). These are
the twenty-first century devices such as the prepress equipment or the CTP without
which our lives would not have this pace.
Whether the baggage handling is proper or not can be checked by observing if the
bags are moving at the same pace as the traveller, or not. At the situations where the
luggage is traveling slower than the owner, then would irritate passengers because
42 they need to wait too long for their bags. The situation can get worse if the luggage
Airline and Airport Organisation misses the connecting flight on time.

Source: http://science.howstuffworks.com/transport/flight/modern/baggage-handling.htm

Figure 3.4: A View of Baggage Handling System

In the contrary scenario, if the bags move too fast, then too passengers would feel
irritated. There is a probability that the luggage makes it to the connecting flight but
the passenger misses it. Thus, there must be adequate balance so as to prevent this.
The baggage handling system essentially has three main objectives:
1. Luggage needs to be transferred from check-in area to departure gate.
2. Bags are required to be shifted from one gate to another.
3. Transferring the bags from the arrival gate to the baggage-claim counter.
In the remaining part of time when passengers are at the airport, the luggage remains
with them. Though, the point that every airport has its own needs cannot be neglected.
The time taken by the passenger to move from check-in area to the gate can differ at
various airports. At few airports, it is just a walk where others, the passengers may
have to take a train. The luggage of the passenger travels according to the time taken
by the passenger to reach the suitable terminal. In general, baggage handling system
incorporates some remarkable technologies for the shifting of bags. There is no
requirement of any manual intervention and the luggage is shifted from the check-in
counter to the departure gate in an automated way. The following steps are initiated:
z Initially, the destination coded vehicles or the automated carts loads and unloads
bags. This is without any manual intervention and it continues without stopping.
z Next is the job for the automated scanners that scans the labels on the luggage,
again without any manual help.
z Lastly, the conveyers equipped with junctions and sorting machines channel the
bags to the gate.
All above handling mechanisms are conducted automatically. It would be very
tiresome if heavy luggage of each passenger is carried manually. A baggage handling
system can exactly be compared to a road system in a city in which case the conveyers
are the local roads, DCV tracks are highways and your bags are of course the vehicles.
Though, unlike a road system, the baggage handling system has the freedom to make
the decision as to where your bag will be going.
Baggage handling services include a number of activities involving the collection,
sorting and distribution of baggage. An efficient flow of baggage through the terminal
is an important element in the passenger handling system. Departing passengers 43
normally check their baggage at one of a number of sites including curbside check-in Passenger, Baggage and
Aircraft Handling
and at the ticket counter in the terminal building. The bags are then sent to a central
sorting area, where they are sorted according to flights and sent to the appropriate gate
to be loaded aboard the departing aircraft. Arriving baggage is unloaded from the
aircraft and sent to the central sorting area. Sorted bags are sent to a transferring flight,
to the baggage claim areas, or to storage for later pickup. At most airports, baggage
handling is the responsibility of the individual air carriers. Some airports operate a
consolidated baggage service, either with airport personnel or on a contract basis. One
of the simplest and most widely applied methods to expedite baggage handling is
curbside check-in. This separates baggage handling from other ticket counter and gate
activities, thereby disencumbering those locations and allowing baggage to be
consolidated and moved to aircraft more directly. Another method is replacement of
the baggage claim carousel with loop conveyor belts that allow passengers greater
access to their luggage without increasing the size of the claim area.
Sorting baggage, moving it to and from the apron, and aircraft loading and unloading
are time-critical and labour-intensive operations. Technologies to improve this process
include high-speed conveyors to transport baggage between the terminal and the flight
line, often used in conjunction with pallets or containers that can be put on and taken
off aircraft with labour-saving equipment. Computerized baggage-sorting equipment,
capable of distributing bags with machine-readable tags, has been installed at some
airports.

3.3.1 Security Screening of Checked Baggage

All baggage checked in by passengers boarding commercial air carrier aircraft must be
screened for explosives and other prohibited items upon check-in at the airport
terminal.

3.3.2 Baggage Claim

For passengers who checked baggage at the airport prior to departure, facilities for
claiming their baggage must exist at the airport as well. Baggage claim facilities are
typically located in an area conveniently positioned near facilities that accommodate
ground transportation from the airport, including parking lots, shuttle vans, taxi cabs,
and rental car counters. Baggage is typically presented to arriving passengers in the
baggage claim area by use of a baggage claim carousel, configured in such a way as to
provide sufficient carousel frontage to accommodate all passengers desiring access to
their baggage, while minimizing the total amount of space required for the claim area.
Carousels are typically shared between air carriers in a given terminal. This is
feasible because limited infrastructure is required specifically for one particular carrier
in these areas. Typically, however, each air carrier will have its own administrative
area, primarily to handle cases of lost, unclaimed, or damaged baggage.

3.4 CATERING PLANNING

Business of providing food service to hotel, public place or other location is defined as
catering. Flight catering is among complex operational systems in the world. The first
step in flight catering is to identify the number of passengers along with the needs.
This information can be received through market research and by actual passenger
behaviour. After getting information about the number of passengers in the given
flight, the production unit follow series of complex steps in order to produce trayed
meals to be transported to aircraft.
44 Higher loader trucks that enable trolleys to role on and off aircraft are used for
Airline and Airport Organisation transportation. Microbial safety of food items should be well ensured.

3.4.1 Role of Caterers

Caterers provide beverage and meals to passengers. Caterers play two main roles
which are as follows:
(a) To prepare items in ready state for loading on board
(b) Assemble trays and trolleys
Some caterers make only business class meals and outsource all other meals
production. Caterers also have distinct relationship with suppliers.

3.4.2 Menu Planning Process

Some general principles are applied while planning all menus. Contrast and variety
should be offered to menu in relation to number of factors. These are:
1. Appearance, especially the colour of food items
2. Texture such as soft and smooth, etc.
3. Taste
4. Cooking methods
5. Temperature
Food – Safe ingredients should be used in menu plan by menu planning team. Advice
from microbiology laboratory should be adhered to developing product.
Product research – The product development also involves experimenting with
different pieces of equipment and process methods.
Customers – The planning of menu should be done to appeal the customer. So, in
order to identify needs and expectation, different methods are used.

3.5 AIRCRAFT HANDLING

The modern commercial aircraft consist of flight control system, which is driven by
software that is executed on computers interfaced with array of electrical, mechanical
and hydraulic hardware. Flight control system is high integrity and complex system
needed for safe operation across the full flight envelope and across the full range of
expected environmental conditions.

3.5.1 Functions of the Flight Control System (FCS)

Flight Control System has the following functions:
1. Desired characteristics and handling qualities are enabled by the FCS.
2. Pilot-Induced Oscillations (PIOs) are avoided by the FCS.
3. “Carefree Handling” provided to the pilot such that the aircraft never crosses the
control limits regardless of pilot input demands.
4. Manoeuvre loads reduced by use of Manoeuvre Load Alleviation (MLA System)
5. Reduced turbulence, gust response and loads (as for MLA) by using Gust Load
Alleviation (GLA) system.
The FCS involves the use of a range of sensors to measure the aircraft state, namely 45
data sensors, rate gyros and accelerometers. The FCS uses a number of actuators, Passenger, Baggage and
Aircraft Handling
mainly the aerodynamic control surfaces and engine throttle.
Check Your Progress 2
Fill in the blanks:
1. First step in flight catering is to identify the number of ………………..
along with the needs.
2. The FCS involves the use of a range of sensors to measure the aircraft
state, namely ………………. , rate gyros and accelerometers.

Case Study: Mobile Passenger Assistance System for a U.S. Airline

A
U.S.-based airline sought a mobile helpdesk solution for passenger
assistance at the airports. Infosys developed a handheld PDA
application that is wirelessly connected with the back-end legacy
system.
The airline’s support staff can now serve passengers by providing real-time
flight status and gate information, allocation of seats, checking-in passengers
and their bags, printing and issuing boarding passes, accepting upgrade
requests and providing other support functions.
Business Need
Before the mobile helpdesk solution was implemented, a passenger had to go
to the front desk to get information about connecting flights. There was no
service provided other than at the airport front desk for standby or upgrade
requests. During line-bursting, the services of the front desk agents could not
be used effectively due to lack of infrastructure.
Infosys had to address several challenges while developing the application:
z The user interface had to display a lot of information on a small screen to
ensure on-ground serviceability
z Realization of enterprise and design objectives without changing the
legacy back-end database
z Connectivity between the airline’s onsite and offshore locations
Infosys’ Solution
Infosys provided a mobile solution to extend the passenger assistance
information to the PDA for better service and enhanced customer satisfaction.
Our application displays real-time flight status and gate information, and
provides services such as printing boarding passes, checking-in passengers
and bags, and collecting excess bag fee. Our application extends passenger
assistance to any location at the airport.
Benefits
Our solution realized several benefits:
z Faster and effective services ensuring customer satisfaction
z Increased productivity by reducing the workload of the front desk
z Customers can avail of these services from any of the agents instead of
waiting in a queue
Contd…
46 z User-friendly, real-time and cost-effective application based on Infosys’
Airline and Airport Organisation Global Delivery Model
z System architecture based on a distributed model that provides flexibility
for future upgradation
Questions
1. How can the passenger be best handled in aircraft using different
technologies?
2. Discuss the business needs.
Source: http://www.infosys.com/industries/airlines/case-studies/Pages/passenger-assistance-system.aspx

3.6 LET US SUM UP

There is a standard procedure through which passengers arrive and depart through
airport. Passenger handling system includes several aspects like passengers and their
required processing facilities, ticketing, security screening, at-gate processing, federal
inspection services, ancillary passenger terminal facilities, vertical distribution of
flow. Apart from passenger handling other issue is of baggage handling that includes
screening of checked baggage and the baggage claim.

3.7 LESSON END ACTIVITY

Collect images using internet, highlighting different aspects of baggage handling on
the airport.

3.8 KEYWORDS
Security Screening of Checked Baggage: All baggage checked in by passengers
boarding commercial air carrier aircraft must be screened for explosives and other
prohibited items upon check-in at the airport terminal.
Federal Inspection Services (FIS): conducts these formalities, which include passport
inspection, inspection of baggage, and collection of duties on certain imported items,
and sometimes inspection for agricultural materials, illegal drugs, or other restricted
items.
Flight Control System (FCS): Flight control system is high integrity and complex
system needed for safe operation across the full flight envelope and across the full
range of expected environmental conditions.

3.9 QUESTIONS FOR DISCUSSION

1. Enlist the arrival and departure procedure of passenger through airport.
2. Explain the passenger handling system.
3. Write short notes on:
(a) Ticketing
(b) Security screening
(c) At-gate processing
4. Discuss the process of baggage handling on airport.
 Check Your Progress: Model Answers 47
Passenger, Baggage and
Aircraft Handling
CYP 1
1. Passenger Handling System
2. Ticket counters

CYP 2
1. Passengers
2. Data sensors

3.10 SUGGESTED READINGS

Julie, Rodwell, (2003), Essentials of Aviation Management: A Guide for Aviation
Service Business. Kendall Hunt Publishing Company
Speciale, Raymond, (2006), Fundamentals of Aviation Law, McGraw Hill
T. Wells, Alexander, (2004), Airport Planning & Management, McGraw Hill
Frock, Roger. Changing How the World Does Business: Fedex's Incredible Journey to
Success - The Inside Story, Berrett Koehler Publishers Inc.
J. Sheehan, John, (2003), Business & Corporate Aviation Management: On Demand
Air Travel. McGraw Hill
Castro, Raoul, Corporate Aviation Management. Southern Illinois University Press
A. Kinnison, Harry, (2004), Aviation Maintenance Management, McGraw Hill
48
Airline and Airport Organisation LESSON

4
AIRCRAFT FLEET MANAGEMENT

CONTENTS
4.0 Aims and Objectives
4.1 Introduction
4.2 Aircraft Acquisition and Financing
4.3 Aircraft Evaluation: Passenger Aircraft
4.3.1 The People Involved
4.3.2 Collection of Airline Specific Data
4.4 Marketing Analysis
4.5 Technical Analysis
4.6 Performance Analysis
4.7 Cost Analysis
4.7.1 Capital Costs
4.7.2 Direct Operating Costs
4.8 Let us Sum up
4.9 Lesson End Activity
4.10 Keywords
4.11 Questions for Discussion
4.12 Suggested Readings

4.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concept of aircraft acquisition and financing
z Know the different techniques for aircraft evaluation
z Learn the types of forecast in market analysis
z Explain the technical analysis
z Describe the performance analysis
z Discuss the different costs involved in cost analysis
4.1 INTRODUCTION 49
Aircraft Fleet Management
Traditionally, fleet planning has focused on aircraft acquisition.
Many large airlines now take a broader view, with fleet management encompassing:
z Aircraft acquisition and financing
z Tactical fleet management
z Asset value maintenance
z Trading
This lesson will follow the above-mentioned four points, but will concentrate on
aircraft acquisition and financing.

4.2 AIRCRAFT ACQUISITION AND FINANCING

An airline is in principle a portfolio of resources – some tangible, many intangible –
brought together to pursue a corporate mission or purpose. In the same vein, a fleet is
a portfolio assembles to fulfil a number of payload-range missions. The primary
objective of fleet planning is to equate production capacity (and the output that is a
capable to produce if efficiently utilized with forecast demand, given certain price and
other marketing assumptions.) There are two fundamental reasons for acquiring
aircraft. They are as follows:
1. Replacement of Existing Capacity: It might be necessary to replace part of the
current fleet because of high operating cost, unacceptable noise or emissions,
limited remaining structural life; inadequate passenger appeal, type rationalization
or an ongoing fleet rollover policy intended to maintain a low average fleet age.
The task is to find an aircraft capable of performing a largely unchanged mission
more effectively and/or efficiently than the aircraft to be replaced.
2. Capacity Growth: Because the demand for air transport services is on the whole
continuing to grow, the need to replace ageing aircraft that are becoming
expensive to operate or environmentally unsound is often interlaced with the need
to increase capacity incremental capacity might be needed for one or both of two
purposes.
™ Growth within the existing network: Aircraft acquisition could be necessary to
accommodate traffic growth arising from either or both an expanding market
or improved market share. Growing demand can in principle be met by using
larger aircraft and maintaining frequencies, by operating more of the same
aircraft at higher frequencies or by some combination of the two. (It can also
be met by raising utilization, increasing seating densities or accepting higher
load factors in respect of the existing fleet, by code-sharing, or by wet leasing
aircraft and crews from another carrier.)
™ New missions: Capacity might be needed to satisfy new mission requirements
beyond the capability of the existing fleet, such as the introduction of
ultra-long-haul services.
An ‘absorption ratio’ can be calculated for an individual airline or indeed for a group
of airlines (e.g. US measures) or the industry as a whole. This is the ratio of
outstanding orders (aircraft units or number of seats) to the existing fleet, net of
planned disposals or retirements. When projected absorption runs well ahead of
forecast demand growth questions need to be asked. For example, it is assumed that
annual passenger demand growth of five per cent and fleet augmentations of around
eight per cent per annum. If this percentage of its equivalent order-to-fleet ratio is
substantially exceeded, there might be an overcapacity situation developing. (On the
50 other hand, it should be borne in mind that at a macro-level demand growth is usually
Airline and Airport Organisation measured in RPMs which can be produced by aircraft or many different sizes,
and therefore numbers, flying many different alternative stage-lengths while purchases
are retirements are measure in discreet aircraft or, less usually, seat numbers. So for
example, a single-airlines or industry-wide shift to higher frequencies using aircraft
similar in size or smaller than aircraft already operated might raise aircraft acquisition
numbers without necessary threatening overcapacity.)
There are at least three reasons why fleet planning should be treated not as a separate,
isolated or occasional exercise, but as an ongoing process intimately linked to
marketing planning.
1. Changes in the market place: A fleet can only ever be optimized to serve one
particular set of markets at one particular point in time: as existing markets change
in size and/or structure and as markets are added or deleted, the fleet will become
sub-optimal. Fleet planning is therefore a continuous process of reassessment.
2. Changes in corporate priorities fleets and networks: Changes in corporate
priorities fleets and networks are managed within the wider context provided by
decision about which markets and segments to serve, and how to serve them.
If, for example, an airline, decided to change its market position by offering
higher frequencies and/or an improved in-flight products this could well have an
impact on its optimum fleet. Similarly, when British Airways decide in late 1990s
to de-emphasize low-yield flow traffic and concentrate on premium traffic
(particularly in point-to-point markets.) this had an immediate impact on its
projected fleet mix with future requirements shifting from B 747-400 to B 777s,
and from B 757s to A320s series.
3. Strategic commitment: A significant fleet acquisition or restructuring also has a
strategic impact beyond its direct effect on future costs, revenues, and cash flows.
This is usually discussed in the strategic management literature under the heading
of ‘commitment’. Airlines clearly need as much flexibility in their fleets as they
can get. A good start is shorter lead-times on purchase and customizing decision
for new aircraft, even at the top of ordering cycles. In particular, many carrier
want greater flexibility in determining variants and even types which they enter
into long-term purchase contract – the ideas being in some cases to project seat
requirement, but leave until as late as possible the final specification of units into
which those seats will be broken down. Airframe manufacturers and their supplier
have in fact worked hard to improve flexibility by shortening order lead times the
average having dropped from close to five year ruin mid-1980s to little over a year
by the later 1990s.
Another source of flexibility is the used of purchase options (including ‘rolling
options’) which, depending upon market circumstances, manufacturers quite
frequently price far below their real value, the growth of operating leasing has also
added flexibility although operating leases rarely run for less than 3 years and
frequently have lives well in excess of this, the lessee usually has an option after a
certain period to pay an early termination penalty and return the aircraft.
Check Your Progress 1
Fill in the blanks:
1. The ………………… is the ratio of outstanding orders (aircraft units or
number of seats) to the existing fleet, net of planned disposals or
retirements.
2. ……………….. also has a strategic impact beyond its direct effect on
future costs, revenues and cash.
4.3 AIRCRAFT EVALUATION: PASSENGER AIRCRAFT 51
Aircraft Fleet Management

The intention here is to highlight some of the principal issues that arise in the course
of comparative evaluations.

4.3.1 The People Involved

In any airline, various people will want to have their say in fleet planning decisions.
Sometimes the influences are balanced. On the other occasions discussion might be
oriented towards the interests of operations personnel concerned primarily about
aircraft performance and maintainability, marketing personnel preoccupied with
product design or finance people focused on operating costs and the appeal of the
different types to financiers (or alternatively the willingness of respective
manufactures, and possibly their export credit agencies, to provide finance or credit
support, political factors sometimes come into play, and government interference in
the decision making process of national carriers is not uncommon.

4.3.2 Collection of Airline Specific Data

This type of data required will include the following:
z Network Data – Markets to be served and the route patterns and frequencies
flown to serve them. This data flags payload requirements.
z Route Data – Flight legs to be operated and alternate airports for each destination;
reserve fuel requirements and en route meteorological assumptions and
turnaround times. This data flags likely speed and range requirements.
z Airport Data – Runway lengths, slopes and construction; obstacle clearance;
elevation; average and extreme meteorological conditions; taxiway and apron
widths and load bearing capabilities, dimensions of parking spaces on the ramp
and at gates: and terminal infrastructure and handling capacities. This data flags
the need for specific capability requirements such as good hot-and-high
performance.
z Current Fleet – When considering new types, an airline will offer benchmark its
analysis against types with similar mission capabilities that it currently operates.
z Product Requirements – Passenger service requirements by class are derived
from marketing decisions in respect of service attributes such as seat pitch and
width, aisle width, bin sizes, entertainment and communication systems and
provision and location of galleys and lavatories. Cabin cross-section can affect
passengers over all perceptions of spaciousness, the feasible seating configuration
across each row (which itself affects both passenger perception and, on
widebodies, the efficiency of meal service in the main cabin), and the scope for
different galley, lavatory, storage, and crew rest-area options. The ability to
operator long-haul flight-legs depends upon the provision of the crew rest-areas
which, if located below the main deck rather than in a cabin ceiling void, may
displace revenue payload through their impact on frequencies and seat
accessibilities targets, product requirements will also affect the capacities of
aircraft needed to operate a given route network. Finally in many regional
markets, passengers are unwillingly to accept turboprop service when jet
alternatives are available. Carriers with significance businesses will in addition
have specific freight-related requirements in respect of belly-hold capacities and
cross-sections and container compatibility with other types in the current fleet that
will be retained into foreseeable future.
52
Airline and Airport Organisation
4.4 MARKETING ANALYSIS
Despite significant cuts in delivery lead – times, and despite the growing contribution
of operating lessors to improving fleet flexibility, airlines still must make their
strategic fleet acquisition decisions on the basis of forecasts that run an uncomfortable
distance in the future. Three types of forecasts in particular are being used:
z Demand Forecasts: Demand can be forecast by region, by origin and destination
(O & D) market by segment, a common approach is to forecast aggregate growth,
and then focused down onto individual markets and segments
z Traffic Forecast: Traffic is the share of demand that a particular airline forecast it
will carry given price and other marketing assumptions.
z Revenue Forecast: Both demand and traffic forecast are driven by a wide range
of assumptions, one of which is average yield (revenue per RPM). Revenue
management systems can be valuable source of information on current yields,
revenue models link traffic forecast to variables such as fare structures and freight
rates, discounting, pro rate dilution and agency commissions.

4.5 TECHNICAL ANALYSIS

Technical analysis, which generally follows the ATA 100 coding formulated by the
Air Transport Association in the United States to facilitate description of aircraft
components and system will consider the following:
z Structures and flight controls
z Mechanical systems
z Avionics and instrumentation system
z Propulsion system
The system of different aircraft area compared by ranking them in respect of attributes
describing their design objectives, overall safety, reliability, redundancy,
maintainability, simplicity, use of proven technology, and effects on the airline’s
existing equipment and personnel infrastructure. Fleet planner will also want answers
to a variety of questions related to aerodynamics, stability and control, internal noise,
exterior noise and emission and certification criteria. The structural efficiency of an
aircraft (i.e. payload relative to weight) is an important cost-related issue which is
increasingly being addressed by the use of composite materials.

4.6 PERFORMANCE ANALYSIS

‘Performance’ refers to the capabilities and limitations of an airplane in different
phases of flight. It is outlined in each aircraft’s performance manual and can be
illustrated by expressing graphically a number of relationships the most widely
recognized of which perhaps the payload-rang. Performance analysis involves looking
at a Maximum Take-off Weight (MTOW) and its various components, payload
capabilities at different ranges, and range capabilities with different payload to gain a
sense of the aircraft performance and economics in the context of the airline’s present
and likely future networks. A carrier might be looking for a type optimized for a
specific group of its routes having particular stage-lengths and payload requirement,
or it might be more interested in the flexibility to operate an aircraft profitably across a
numbers of different mission profiles. In addition to more general analysis,
performance will often also be evaluated, using the airline’s standard procedures, at a
limiting airport and on a limiting route within the network that are subject to
abnormally demanding operational requirements. Separately, some short-haul 53
operators wanting to maximize aircraft utilization by keeping turnaround and transit Aircraft Fleet Management
times to a minimum will be interested in the ability of a type to operate multiple sector
without refuelling so much so that an aircraft’s ‘range’ in this sense can be an
important input evaluation exercises even though the routes served might each fall
well within its performance capabilities.

4.7 COST ANALYSIS

This sub-section distinguished between Capital and Operating Costs (DOCs). In fact,
capital cost feeds through into DOCs through ‘cost of ownership’ like items such as
depreciation and/or lease rentals (which are fixed DOCs) Furthermore, what really
matters is the cost of acquiring and operating an aircraft across its entire life cycle, and
it is therefore life-cycle cost as a whole that need to the focus of analysis. At a
growing number of airlines, shareholder value is the framework used for this analysis:
the acquisition and operation of an aircraft must be seen to add shareholder value
through its impact on eight or both revenue and costs. The most important point to
bear in mind is that whilst an aircraft’s capital and operating costs are critical, they
are – like any cost an airline might incur – relatively meaningless figures outside the
context of revenue generated. With regard to aircraft, we need to look at the revenue
they can generate (and therefore at their service design implications in reselect of
variable such as the onboard product and also frequency/capacity trade-offs on the
airlines network) in order to assess whether their life-cycle cost are acceptable.

4.7.1 Capital Costs

Different manufacturers break down their prices in different ways, but most will
include the elements given in the following box.
Box 4.1: Price Breakdown Elements
Airframe price (including engine nacelles) at standard specification
+ Engines (the price of which will be separately negotiated where there is a choice of power
plant).
+ Options (which might include standard options, customized options, seller-furnished
equipment (SFE), and buyer-
= Aircraft Contract Price
+ Price escalation per agreed inflation formula (sometime many large airlines will no longer
accept a few now even being able to negotiate a clause entitling them to a price reduction
in another buyer obtain better price from the manufacturer during defined period after
contact signing)
– Negotiated discount and/or the value of credit notes from OEM(s) already held by the
airlines and/or any fleet integrations assistance (i.e. financial support from a manufacturer
to smooth the integration of its aircraft into the fleet of an airline currently operating a
competitor’s products, and perhaps provided in preference to offering a larger discount
which might then serve as a benchmark in future price negotiations with the same airlines
or with other carriers)
+ Change order initiated by the airlines after contract signing
= Flyaway Price
+ Product support (i.e. training of engineers/mechanics and aircrew, initial provisioning with
spares and the cost of any type-specific ground support equipment)
= Total Investment
+ Number of seats on the type in the airlines configurations
= Total Investment per seat
54 Price per seat has trended upwards with each successive generation of aircraft
Airline and Airport Organisation technology that has been introduced. The reasons have been general price inflation in
the global economy, and the constantly improving level of technology and
performance incorporate into new types (Trevett, 1999). However, airlines –
particularly carriers with strong bargaining position-are no longer willing to accept
ever increasing capital costs for new generations of aircraft performing essentially the
same missions as those they replace unless there are palpable benefits in terms of
firmer yields or, more usually, lower DOCs. Aircraft are simply revenue generating
resources, and carriers are increasingly insisting on a linkage between capital cost and
their potential contribution to shareholder value. OEMs and their supplier have, on the
whole responded well to this new pricing environment for their products.

4.7.2 Direct Operating Costs

We know that DOCs are operating costs that are dependent upon the type of aircraft
being flown. They have two elements: fixed and variable. Certain variable DOCs
notably fuel-burn, crew costs and en-route charges are sensitive to the stage length
chosen for DOC analysis. Standard formulae have been developed by aircraft
manufacturers and airlines trade associations to assist with DOC forecasting.
However, care has to be taken to ensure their underlying assumptions are compatible
with a particular airline’s network, fleet size, and operating environment DOCs
incurred by alternative aircraft flying a given stage-length selected for an evaluation
(because it is either representative or particularly challenging within the context of the
carrier’s network) can be examined using many different criteria. The following are
perhaps most critical.
1. Aircraft-mile and trip costs: Which are, respectively, the cost per mile and the
cost for that trip as a whole.
™ With dollar on the vertical axis and distance on the horizontal, the curve
graphing this relationship for any given aircraft slopes downwards (as stage-
lengths increases) and then levels of.
™ Aircraft-mile and trip costs are generally higher for any given type than for a
small type of the same technological generation.
2. Seat-mile (or unit) costs: These generally decline as aircraft capacity increases
(airlines with substantial freight business will also want to look at the cost per
ATM as well as per ASM) (Because aircraft-mile and seat-mile costs vary
depending upon stage-length selected and larger airlines operate any one type over
many different stage-lengths, it is not unusual to use cost per block-hour as
another basis for comparison).
Check Your Progress 2
Fill in the blanks:
1. ………………. refers to the capabilities and limitations of an airplane in
different phases of flight.
2. ………………. are operating costs that are dependent upon the type of
aircraft being flown.

4.8 LET US SUM UP

An airline is in principle a portfolio of resources – some tangible, many intangible –
brought together to pursue a corporate mission or purpose. In the same vein, a fleet is
a portfolio assembles to fulfil a number of payload-range missions. The primary
objective of fleet planning is to equate production capacity.
4.9 LESSON END ACTIVITY 55
Aircraft Fleet Management

With the help of internet, collect more information on aircraft evaluation.

4.10 KEYWORDS
Fleet: It is a portfolio assembles to fulfil a number of payload range missions.
Absorption Ratio: This is the ratio of outstanding orders (aircraft units or number of
seats) to the existing fleet, net of planned disposals or retirements.
Seat-mile (or unit) Costs: These generally decline as aircraft capacity increases
(airlines with substantial freight business will also want to look at the cost per ATM as
well as per ASM).
Aircraft-mile: It is the cost per mile.
Trip Costs: It is the cost for that trip as a whole.

4.11 QUESTIONS FOR DISCUSSION

1. Explain the concept of aircraft acquisition and financing.
2. Write a short note on the marketing analysis.
3. Briefly explain the following:
(a) Technical Analysis
(b) Performance Analysis
(c) Cost Analysis

Check Your Progress: Model Answers

CYP 1
1. Absorption ratio
2. Fleet acquisition

CYP 2
1. Performance
2. Direct operating costs

4.12 SUGGESTED READINGS

Berliner, William M., Managerial and Supervisory Practice, 7th ed., Homewood, III.:
Irwin, 1979
Fitzsimons, Bernard, Maintenance Control Made Easy, Interavia/Aerospace World,
March 1993
Fradenburg, Leo G., United States Airlines: Trunk and Regional Carriers - Their
Operations and Management, Dubuque, lowa: Kendall/Hunt, 1980
Justis, Robert T., Dynamics of American Business, Englewood Cliffs, N.I.: Prentice-
Hall, 1982
56 Morton, Alexander, C., Official 1983-84 Guide to Airline Careers, Miami:
Airline and Airport Organisation International, 1983
Morton, Alexander C., The Official 1983-84 Guide to Stewardess and Steward
Careers, Miami: International, 1983
S. Ramanathan, Airport Management, Scope Publishers, New Delhi
 57
LESSON Ground Handling Agreements

5
GROUND HANDLING AGREEMENTS

CONTENTS
5.0 Aims and Objectives
5.1 Introduction
5.2 Part One – General Provisions
5.2.1 Section One – Purpose, Scope, Basis and Definitions
5.2.2 Section Two – Types of Airport Ground Handling Services
5.2.3 Section Three – Responsibility and Authorizations
5.2.4 Section Four – Authorizations of Local Air Carriers
5.2.5 Section Five – Authorizations of Foreign Air Carriers
5.2.6 Section Six – Catering Services
5.2.7 Section Seven – Special Authorizations
5.3 Part Two – Guidelines and Procedures
5.3.1 Section One – Processes Related to Working License
5.3.2 Section Two – Guidelines and Procedures to be Applied
5.3.3 Section Three – Auditing and Improper Actions
5.4 Part Three – Charges
5.4.1 General Guidelines
5.5 Part Four – Final Provisions
5.5.1 Abolished Provisions
5.5.2 Current Transport Services
5.5.3 Compliance Period
5.5.4 Enforcement
5.6 Let us Sum up
5.7 Lesson End Activity
5.8 Keywords
5.9 Questions for Discussion
5.10 Suggested Readings

5.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Explain the ground handling agreement
z Understand the different regulations in ground handling
58
Airline and Airport Organisation
5.1 INTRODUCTION
Act related to regulation on airport ground handling consist of four parts divided into
different sections.
Part 1 – General Provisions
z Section 1 – Purpose, scope, business, definition
z Section 2 – Types of airport ground handling services
z Section 3 – Responsibility and authorizations
Part 2 – Guidelines and Procedures
z Section 1 – Processes related to working license
z Section 2 – Guidelines and procedures to be applied
z Section 3 – Auditing and improper action
Part 3 – Charges
Part 4 – Final Provisions

5.2 PART ONE – GENERAL PROVISIONS

5.2.1 Section One – Purpose, Scope, Basis and Definitions
Purpose
Article 1 – Purpose of this Regulation is to arrange the procedures and guidelines to
be applied in order to ensure that airport ground handling services are performed at
international level and to determine the charge tariffs related to such services in
accordance with Article 44 of the Turkish Civil Aviation Law No. 2920.

Scope
Article 2 – This Regulation cover the Directorate General of State Airports
Administration and other organizations that operate airports and the ground handling
companies which have obtained Working License by satisfying the conditions
mentioned in this Regulation.

Legal Basis
Article 3 – This Regulation have been prepared on the basis of Articles 2, 12 and 35
of the Law No.3348 on The Organization and Duties of the Ministry of Transport and
Communication and Article 44 of the Turkish Civil Aviation Law No. 2920 dated
14.10.1983.

Definitions
Article 4 – The definitions in this Regulation are as follows:
z Ministry: Ministry of Transport and Communication
z “DHMI”: The Directorate General of State Airports Administration
z “Ground Handling Company”: A company with a corporate body status which
have obtained Working License to perform ground handling services at airports
according to the provisions of this Regulation,
z “Air Carrier”: All local and foreign air carriers,
z “Local Air Carrier”: Operators which have obtained Operating License from the 59
Ministry of Transport by having met the conditions required in the Turkish Civil Ground Handling Agreements
Aviation Law No. 2920 and the regulations introduced concerning this law,
z “Foreign Air Carrier”: Operators which have obtained Operating License from a
foreign state authority,
z Amendment: RG-10/04/1997-22960 – “Working License Group A”: Working
licenses to be given for each type of service to corporate bodies authorized to
render ground handling services to air carriers by being organized at least at three
airports open to international traffic for all of the service types mentioned in
Article 5 or for at least passenger services, load control and communications,
ramp, cargo and mail, aircraft cleaning, unit load device control according to the
provisions of this Regulation.
z “Working License Group B”: Working licenses to be given for each type of
service to air carriers which will perform all or a part of the service types
mentioned in Article 5 for themselves at airports according to the provisions of
this Regulation,
z Amendment: RG-14/11/2009-27406 – “Group C Operating License”: These are
working licenses given for each service type to private legal who are authorized to
deliver representation, supervision and administration, Aircraft Private Security
Service and Audit, catering service and flight operation service among the types
of services listed in article 5 in accordance with the provisions of this Regulation,
z “Standard Ground Handling Agreement”: The standard agreement to be
executed between the ground handling companies and air carriers or by the air
carriers between each other, based on the special authorizations specified in this
Regulation,
z “Movement Areas”: The runway, apron and taxiway and the near surroundings
made of asphalt, concrete and soil which are used for moving and parking of
aircraft and the vehicles and equipment related to the activities of aircraft,
z “Service Agreement”: The standard agreement which arranges the relations,
between ground handling companies that perform ground handling services at
airports and DHMI that performs the operations of airports, mutual rights and
obligations and penal sanctions for actions against the rules specified in this
Regulation,
z Amendment: RG-19/09/1999-23821 – “Cargo”: Any goods carried in aircraft
other than letters, supplies and accompanied or mistakenly loaded baggage
z Amendment: RG-19/09/1999-23821 – “Cargo Agency”: An agency, freighter or
another organization, which does business with an operator and which is accepted
by the related authority regarding cargo, courier and express parcels or which
performs the required security checks.
Check Your Progress 1
Match the following:
1. Any goods carried in aircraft other than letters, 1. Movement
supplies and accompanied or mistakenly loaded areas
baggage
2. The runway, apron and taxiway and the near 2. Cargo
surroundings made of asphalt, concrete and soil,
which are used for moving and parking of aircraft
and the vehicles and equipment related to the
activities of aircraft
Contd…
60 3. An agency, freighter or another organization, which 3. Cargo agency
Airline and Airport Organisation
does business with an operator and which is
accepted by the related authority regarding cargo,
courier and express parcels or which performs the
required security checks

5.2.2 Section Two – Types of Airport Ground Handling Services

Types of Services
Article 5 – Types of airport ground handling services are grouped as follows:
z Representation,
z Passenger Services,
z Load Control and Communications,
z Ramp: Ramp, cargo and mail, aircraft cleaning, unit load device control,
z Aircraft Line Maintenance: Aircraft line maintenance, fuel and oil,
z Flight Operations,
z Transport,
z Catering Services,
z Supervision and Administration,
z Aircraft Private Security Service and Audit
Details of airport ground handling service types are determined by aviation
instructions of Directorate General of Civil Aviation.

5.2.3 Section Three – Responsibility and Authorizations

Responsibility
Article 6 – Airport operators, ground handling companies and air carriers are
responsible for fulfilling the provisions in this Regulation.
Furthermore, DHMI is responsible to the Ministry for taking measures to ensure the
performance of ground handling services mentioned in this Regulation at international
level. In order to ensure this, DHMI constantly supervises and audits, takes or ensures
necessary arrangements and measures for deficiencies and irregularities determined
and informs the Ministry about the results.
Financial matters in the Regulations are under the responsibility of DHMI.

Authorizations and Responsibilities of Ground Handling Companies

Article 7 – Authorizations and responsibilities of ground handling companies are
specified as follows:
z Ground handling companies are authorized to perform all or a part of the ground
handling service types explained in article 5 for scheduled or non-scheduled
flights at airports.
z Amendment: RG-10/04/1997-22960 – Ground handling companies which will
obtain Working License Group A must be organized at least at three airports open
to international traffic for all of the service types mentioned in Article 5 or for at
least passenger services, load control and communications, ramp, cargo and
mail, aircraft cleaning and unit load device control at airports, where they will
 provide services, by also taking into consideration the conditions in Clause “d” of 61
Article 12 of the Regulations. Ground Handling Agreements

z Ground handling companies must exactly maintain its vehicles, equipment and
staff that are the basis of the working license even if they do not render services to
any air carrier at airports where they are organized.
In case of being organized to render services only to domestic flights, the Ministry
determines at how many airports and for which service types such companies will
be organized.
z Paid capitals of ground handling companies having a Working License Group A
cannot be less than 3,000,000 (three million) US dollars in equivalent Turkish
Liras and paid capitals of those having a Working License Group C cannot be less
than 200,000 (two hundred thousand) US dollars in equivalent Turkish Liras.
Equivalent US dollars for the capital in Turkish Liras is calculated based on the
selling rate of the Turkish Central Bank on the payment date of the capital
instalments.
z Companies demanding to obtain a Working License Group A or C must have their
commercial registrations, prepare and publish their original contract and submit a
notary certified copy of these to the Ministry in accordance with Turkish
Commercial Code No.6762.
™ Amendment: RG-19/09/1999-23821 – Any field of work, other than the
ground handling service types mentioned in Article 5 of the Regulations, will
not be given place as the field of business of the company in the original
contracts and commercial registrations of ground handling companies, which
will obtain Working License Group A.
However, local air carriers that will obtain a Working License Group A can
include other civil aviation activities in their master agreements.
Minimum 51% of the shares must be in the name of the holder.
™ Amendment: RG-10/04/1997-22960 – Majority of the officials authorized to
manage and represent the ground handling companies which will obtain
Working License Group A or C must be Turkish citizens and Turkish partners
must have the majority of votes according to the master agreement of the
company.
However, provisions of the Law No. 4046 ‘Concerning the Arrangements for
the Implementation of Privatization and Amending Certain Laws and Decrees
with the Force of Law’ are reserved.
z Ground handling companies which will obtain Working License Group A must
provide DHMI with a final bank letter of guarantee for an indefinite period, the
content and form of which will be determined by DHMI, at an amount of
1,000,000 (one million) US dollars for “Royalty Fess” to be paid to DHMI and for
their obligations that may arise from the “Service Agreement” that they will
execute, and ground handling companies which will obtain Working License
Group B or C must provide DHMI with the same type of bank letter of guarantee
at an amount of 100,000 (one hundred thousand) US dollars.
Amendment: RG-10/04/1997-22960 – However, the said letter of guarantee is
demanded from the carriers of countries, which provide or undertake to provide
Turkish air carriers with similar rights of performing ground handling services
abroad, by considering the principles of reciprocity.
62 z In case any of the partners of ground handling companies, which have Working
Airline and Airport Organisation License Group A or C, plans to transfer all or a part of its shares or to increase its
existing share percentage, then they must get permission from the Ministry before
the transfer transactions are performed.
z Rules and charges to be applied at private airports are arranged by the offer of
operators of these airports and the approval of the Ministry.
z In case ground handling companies, which have Working License Group A,
become unable to provide services due to unavoidable force majeure to be found
acceptable by DHMI, DHMI may want the services to be performed by other
ground handling companies, which have Working License Group A for such
services, until the related situation is eliminated.
The assigned ground handling company must render the services, for which it has
the working license, in exchange for charges to be determined mutually with the
company receiving the service. In such a case, it is not required to sign a Standard
Ground Handling Agreement mentioned in Article 17 of this Regulation. In case
an agreement is to be signed, such agreements must be provisional. However,
upon the elimination of the temporary force majeure, such provisional agreements
are revoked in case the requirement of being able to render service is determined
by DHMI.
z Supplement: RG.14/11/2009-27406 – The organizations to obtain Group C
working Licence for flight operation service must have representation service
operating license, and supervision and administration working license at minimum
five of Atatürk, Antalya, Esenboğa, Adnan Menderes, Milas-Bodrum, Dalaman,
Sabiha Gökçen airports. The organizations with Group A or C working license,
must have flight operation working licenses at totally five airports including three
international airports open to civil aviation traffic and from Ataturk and Antalya
airports if they intent to provide flight operation working service.

5.2.4 Section Four – Authorizations of Local Air Carriers

Article 8 – Amendment: RG-19/09/1999-23821 – Local air carriers are authorized to
perform all or a part of the airport ground handling service types, mentioned in
Article 5, for themselves by getting a Working License Group B or for another air
carrier by getting a Working License Group A.
Local air carriers can also render ground handling services to themselves with the
same license at airports for which they have obtained the working license.
In case commercial air carriage operating license of local air carriers, which have
working license group A, is cancelled by the Ministry for any reason, ground handling
working license will be deemed to have been cancelled as well without giving any
notice.
In case a ground handling company or an air carrier, which has a Working License
Group A, becomes unable to provide services due to unavoidable force majeure to be
found acceptable by DHMI, then the local air carrier having a Working License Group
B, which is authorized to perform all or a part of the ground handling service types for
themselves, can be authorized by the Ministry upon the proposal of the Directorate
General of DHMI to render all or a part of the services, which they are allowed to
perform for themselves, to other air carriers as well, until the related situation is
eliminated.
In that case, the local air carrier having a Working License Group B, must perform the
related services within the frame of charges and principles to be determined mutually
with the related company receiving the service.
In such a case, it is not required to sign a Standard Ground Handling Agreement 63
mentioned in Article 17 of this Regulation. Ground Handling Agreements

In case an agreement is to be signed, such agreements must be provisional. Upon the

elimination of the force majeure, such provisional agreements are revoked after the
requirement of being able to render service is determined by DHMI.

5.2.5 Section Five – Authorizations of Foreign Air Carriers

Article 9 – The authorizations of foreign air carriers operating scheduled or
non-scheduled flights are specified as follows:
z Foreign air carriers operating scheduled flights are authorized to perform, for
themselves, all or a part of representation, supervision and administration,
passenger services, load control and communications, aircraft line maintenance,
fuel and oil service types mentioned in Article 5.
z Foreign air carriers operating non-scheduled flights are authorized to perform, for
themselves, all or a part of only aircraft line maintenance, fuel and oil service
types mentioned in Article 5.

5.2.6 Section Six – Catering Services

Article 10 – Conditions related to catering services are specified as follows:
z Catering Services:
™ Catering delivery service can be performed by ground handling companies
organized within airport borders, corporations or local air carriers (except
foreign air carriers) which have working license for catering delivery service.
™ Transfer of catering products, which are produced outside the airport borders,
to aircraft can be performed only by corporations which have working license
for catering service.
z Catering Production Service:
™ Catering production service can be performed by corporate bodies and local
air carriers (except foreign air carriers).
™ International and national sanitary regulations are applicable in execution of
catering production services, construction of facilities, using necessary
equipment and materials and provision of cleaning.
™ Production of catering for aircraft is subject to the permission of DHMI. In
order for such a permission to be given, the corporation that will produce
catering must obtain a certificate, stating that production is performed in their
facilities according to sanitary regulations, from an authorized healthcare
organization which will be designated by the Ministry or by a public
corporation to be determined by the Ministry.
™ Catering production of a company, which has not obtained a certificate of
conformity although the permission had been received from DHMI to produce
catering for aircraft, is suspended during the inspections until the certificate of
conformity is obtained.
™ The air carrier receiving the catering and the corporation producing the
catering are responsible for the conformity of catering production, performed
within and outside the airport borders, to the international standards and
sanitary conditions.
64 ™ Construction of catering production facilities within the airport borders is
Airline and Airport Organisation permitted by DHMI by taking into consideration the existing facilities and
place availabilities. Though catering production service is subject to
permission, it is not obligatory to obtain a working license for this service.
™ The fee to be paid to DHMI by the company performing the catering
production service, in exchange for rendering services regarding the catering
production provided to aircraft, is determined by a contract between DHMI
and the catering production company.
However, the price to be determined cannot be less than 5% per tray at
Atatürk Airport and 3% at other airports.
™ The price to be charged for meal, beverage and similar things to be delivered
inside catering to aircraft is subject to an agreement between the company
delivering the catering and the company receiving the catering.

5.2.7 Section Seven – Special Authorizations

Article 11 – Special authorizations outside general authorizations mentioned in
Articles 7, 8 and 9 of this Regulation are explained as follows:
z Services, which are demanded by foreign air carriers and which cannot be
performed by ground handling companies and local air carriers, can be performed
by other foreign air carriers having working license. Permission must be obtained
from DHMI to exercise such authority.
z In case there is not a ground handling company to perform the ground handling
services demanded by air carriers at airports where they operate their flights or if
the ground handling company is unable to perform any of the demanded service
types, then local air carriers are authorized to perform the services for air carriers.
z Amendment: RG-06/07/2006-26220 – Regular passenger transport to be
performed between the city terminal and/or terminals and the airport and/or from
the airport to neighbour cities and districts is arranged by the Ministry according
to demands on condition that all legislations related to road transport are complied
with.
z The service of passenger transport on apron is performed by ground handling
companies and local air carriers. DHMI is authorized to arrange this service and to
determine which companies will perform this service at which airports and for
what period of time.
z Follow-me service is obligatory for international flights at Atatürk Airport and it
is performed upon request at other airports and for domestic flights at Atatürk
Airport. The said service is provided by DHMI for all air carriers other than local
air carriers at Atatürk Airport.
z Provision of passenger loading bridge at airports and the systems providing 400
Hz energy to aircraft at the bridge are performed or ensured to be performed only
by DHMI. In necessary cases, the service can be obtained from ground handling
companies.
z Foreign air carriers performing, for themselves, the ground handling services
mentioned in Article 9, can provide the ground handling services mentioned in
their licences also for their non-scheduled flights at the same airport operated
under the name of the same company.
z Amendment: RG-02/11/2005 – Local air carriers and ground handling
companies, having Working Licenses Group A or B for ramp service group, can
 have the labour services and conducting of such labour services exclusively be 65
performed by companies, which have Working License Group C and which are Ground Handling Agreements
experts in their subject, by initially getting permission from the Ministry and with
the condition of concluding an agreement, regarding:
(i) Loading and offloading service specified in the ramp service details,
(ii) Aircraft interior cleaning service specified in the aircraft cleaning service
details,
(iii) Cargo and mail service,
(iv) Driver and operator service in movement areas for the existing service.
In that case, every responsibility related to the service rendered belongs to the
company having the Working License Group C. This situation does not eliminate
the responsibility of the licensed company which has the service performed.
z Corporations, which will obtain license for Aircraft Private Security Service and
Audit, are required to possess a license of air carrier and/or ground handling
company and/or Supervision and Administration Service. Corporations which do
not meet these conditions are not allowed to render Aircraft Private Security
Service and Audit Service.
Air carriers can perform this service only for themselves.

5.3 PART TWO – GUIDELINES AND PROCEDURES

5.3.1 Section One – Processes Related to Working License
Preliminary Permission
Article 12 – Amendment: RG-19/09/1999-23821 – Processes related to preliminary
permission are specified as follows:
z A preliminary permission does not have the nature of a commitment for granting
the working license. This permission is a document setting forth that the working
license may be granted in case all the required preparations are completed and
documented.
z Conditions, specified by this Regulation in respect of obtaining the working
license, are the minimum conditions required for a company to be able to provide
ground handling services.
z Meeting these conditions or others without obtaining a preliminary permission
does not entitle the company to obtain the preliminary permission or working
license to perform ground handling services at airports.
z Granting preliminary permission or working license to perform ground handling
services (including the services to be performed by air carriers for themselves) is
evaluated by taking into consideration criteria such as:
(i) Movement Areas of airports,
(ii) Capacity in terms of vehicle traffic,
(iii) Place allocation availabilities for workshops and vehicle parking areas,
(iv) Physical structure of airports and the existing and foreseen future market
situation,
(v) The need for additional capacity by the Ministry also by taking the opinion of
DHMI when necessary.
66 Requests for preliminary permission made by ground handling companies and/or
Airline and Airport Organisation air carriers to obtain working license group A, regarding the ramp service that
they will perform for themselves at airports where ground handling companies
having working license group A provide services, are examined by the Board of
Review, which is formed by the approval of the Ministry for this purpose and
which consists of 1 chairman and 4 members. Decisions of the Board are taken
according to the majority principle. Each member has one voting right. The
decision to grant the preliminary permission becomes effective upon the approval
of the Minister.
The chairman and 2 members of the Board of Review are selected among the
specialist staff of the Directorate General of Civil Aviation and 2 members are
selected among the specialist staff of the Directorate General of DHMI.
The preliminary permission for working license group A or the working license
can be granted to maximum 2 ground handling companies at airports the total
(domestic+international) annual passenger traffic of which is up to 1 million, to
maximum 3 ground handling companies at airports the total
(domestic+international) annual passenger traffic of which is up to 2 million and
to additional 1 ground handling company after each passenger increase of 2
million at airports the total (domestic+international) annual passenger traffic of
which exceeds 2 million, in case other conditions required in this Regulation are
also met.
z The preliminary permissions to be granted by the Ministry are valid for one year
for mandatory services and for six months for non-mandatory services as from the
grant date.
z Companies, which cannot obtain the working license by completing the necessary
preparations within the period given for preliminary permission, may not reapply
for the same type of service for the duration of two years.
However, if the company that has obtained the preliminary permission has been
unable to complete the necessary preparations within the given preliminary permission
period due to force majeure to be found acceptable by the Ministry, the period for
preliminary permission can be extended for maximum the preliminary permission
period specified in the above clause (e) with the method specified in the clause (d), for
one time only.
z In order to obtain working license, ground handling companies must obtain
preliminary permission by applying to the Ministry with the documents written
below:
(i) The planned operational organization,
(ii) The estimated capital and its structure,
(iii) Names of the founder members,
(iv) Airports planned to be served at and the types of services to be provided,
(v) The list of vehicles, tools and equipment to be used and the methods of
obtaining them,
(vi) Pre-feasibility report,
(vii) Official documents stating that the company or its partners do not have any
debts related to taxes or insurance premiums to the Government due to their
commercial activities,
 (viii) Document stating that the founder partners of corporate bodies or the 67
managers, who are authorized to represent the legal entity, are not sentenced Ground Handling Agreements
to a liberty-binding punishment because of the crimes specified in Article 18
of the Turkish Civil Aviation Law No. 2920,
(ix) Commitment letter founded on a document showing the resources from
which the company will cover at least its quarterly expenses related to staff,
rent, fuel, insurance and similar costs, without considering the revenues to
be obtained from ground handling services, after getting the working license,
and the letter of guarantee specified in Article 7,
(x) Detailed information about the commercial connections of founder partners
at other business organizations and the commercial activities of these
organizations,
If they are partners of these organizations; share percentage, capital ratio,
whether or not they have authority to represent and bind the company, the
latest balance sheet and profit and loss account statement of the company of
partnership,
(xi) Reference letters from minimum 2 banks showing their credibility for the
companies which will obtain working license group A,
(xii) A list of names and circular of signature of the individuals who have
authority to represent and bind the company and notary certified notification
address of the founder partners,
The conditions set forth in the sub clauses (2), (3), (8), (9), (10) and (11) are
not required for air carriers and companies, which will perform aircraft
private security services and audit.

Working License
Article 13 – Amendment: RG-19/09/1999-23821 – Ground handling companies,
which will obtain working license, must obtain a separate working license for each
type of service and for each airport where they will perform the ground handling
services. However, the working license to be obtained for representation service is
valid for all the airports which are open to civilian traffic.
DHMI investigates the working license requests of companies, which want to perform
ground handling services and which have obtained preliminary permission, and
submits the investigation result and its opinion to the Ministry. It delivers the working
licenses to those which are found appropriate by the Ministry and again informs the
Ministry about the result.
Ground handling companies, which will obtain working license within the scope of
this Regulation, must have corporate body status.
Ground handling companies, which will obtain working license to perform ground
handling services for international flights at airports open to international flights, must
obtain a separate “working license for international flights” for each type of service to
be performed.
Ground handling companies, which will obtain working license to perform ground
handling services for domestic flights at airports, must obtain a separate “working
license for domestic flights” for each type of service to be performed.
Ground handling companies can also provide services for domestic flights, with the
same license, at airports for which they have obtained working license for
international flights.
68 Companies performing general aviation operations and air carriers having less than
Airline and Airport Organisation 3 aircraft, which will perform their own ground handling services for helicopters and
aircraft weighing 6 tons and less, do not have to obtain working license for such
services.
Charges for working license and extension fees are determined by DHMI for each
type of service separately.
Its execution was stopped by the 10th Department of the State Council with the
decision numbered E.2002/5858 dated 8.7.2003 – In case local air carriers having
working license group B want to obtain working license group A in order to render
ground handling services to other air carriers within the frame of provisions of this
Regulation, charges for working license are determined by DHMI. However, such
charges cannot be more than the extension fees determined for working license
group A.

General Conditions
Article 14 – The minimum number of staff and equipment list that have to be kept
available by the ground handling companies and the application principles are
determined by DHMI.
(a) Amendment: RG-19/09/1999-23821 – Special equipment determined by DHMI
and specified in the “Minimum Equipment List” must be maximum 3 years old
(including the 3rd year) as of the date on which the working license audit has been
made.
Its execution was stopped by the 10th Department of the State Council with
the decision numbered E.2002/5858 dated 8.7.2003 – However, in case local air
carriers, which have working license group B at least for three years to render all
of the ground handling service types or at least passenger services, load control
and communications and ramp services for their own aircraft by being organized
at least at three airports open to international traffic, demand a working license
group A, then the “Special Equipment” determined by DHMI and specified in the
“Minimum Equipment List” is exempt from the age limit during the first grant of
working license.
Supplement paragraph 28.09.2010/Reg. Art1 – At the airports with a passenger
traffic up to 300,000 (three hundred thousand), age limit is not sought during the
inspection for the operating license on the equipment included in the minimum
equipment list and with the same specifications. The identification that the
mentioned equipment is well-maintained and useful is enough.
(b) Equipment must be serviceable and in compliance with any of TSE (Turkish
Standards Institution), ISO (International Organization for Standardization) or
CEN (European Standardization Committee) standards and must be a genuine
product purchased from its manufacturer or authorized dealer.
DHMI is responsible to the Ministry for determining whether or not this point has
been fulfilled.
(c) The minimum number of staff and equipment to be kept available by local air
carriers, which will perform their own ground handling services for their domestic
flights, and companies, which will perform ground handling services of such
carriers, is separately determined by DHMI according to the nature of the airport,
speciality of the activity and type of the aircraft.
The points specified in clauses above are required for the equipment.
(d) For Representation, Supervision and Administration service types, it is not 69
required to be a ground handling company or an air carrier or to be organized at Ground Handling Agreements
three airports for this service.
Corporations other than ground handling companies and air carriers furnished
with the authorities mentioned in Article 7 of this Regulation are required to
submit the Directorate General of Civil Aviation of the Ministry of Transport and
Communication a letter of intent, received from air carriers, or original copies of
memorandum of understanding or final contract executed with them and their
notary certified Turkish translations, in a way to ensure the condition of having
reached a business volume of 25,000 (twenty five thousand) tons maximum take-
off weight belonging to foreign air carriers, within one year as from the planned
date of activity commencement, in order to render supervision and administration
service.
Companies, which will perform this service for other corporations, must obtain
working license.
Companies, which will perform these services for other corporations other than
themselves, are considered to be in the same status as a ground handling company
in terms of charges.
(e) Personnel, who will be commissioned as managers at the stations of companies
that render Supervision and Administration service at airports, are required to
have sufficient knowledge and experience on the service by having at least three
years of work experience in a ground handling company or an IATA member
airline company at home or abroad, and to document this with a received training
to the Directorate General of Civil Aviation of the Ministry of Transport and
Communication.
(f) It is only mandatory for companies that will render Representation service to have
a Travel Agency Certificate group A.
In case companies, having a working license for Supervision and Administration
service, want to provide Representation service as well, such companies will not
be required to have a Travel Agency Certificate group A.
(g) Private security manager and private security chief of companies, which render
Aircraft Private Security Service and Audit, to be commissioned at airports, are
required to have at least three years of work experience in any company, which
renders this service at home or abroad, and to document this with a received
training to the Directorate General of Civil Aviation of the Ministry of Transport
and Communication. Other personnel to be employed at a company, which
renders Aircraft Private Security Service and Audit, must be trained accordingly
as well.
All personnel to be employed are subject to the conditions set forth in Article 16
of the Law No. 2495 on Protection of Some Institutions and Organizations and
Ensuring Their Security and the prohibitions specified in Articles 21 and 22 of the
same Law.
(h) Ground handling companies must fulfil and maintain the conditions required in
the clauses (d), (e), (f) and (g) during the continuation of their services.
(i) Amendment: RG-19/09/1999-23821 – Cargo agencies and ground handling
companies, from which the local and foreign air carriers will accept cargo, must
obtain a certificate of authority from the Directorate General of Civil Aviation.
Permissions for cargo carriage of air carriers, which accept cargo from cargo
agencies and ground handling companies that have not obtained a certificate of
70 authority from the Directorate General of Civil Aviation, is cancelled at least for a
Airline and Airport Organisation period of one year.
(j) The duties, authorizations and responsibilities of cargo agencies and the
qualifications of the specialist staff that have to be employed by them are
determined by the Directorate General of Civil Aviation via circulars issued
within maximum 6 months.
Amendment published in the Official Gazette Nr. 26220 dated 06.07.2006 –
Local air carriers, which demand a Working License Group B for Transport
Service, can hire the equipment, to be used in this service, for a period of at least 2
years, and/or the staff, to use such equipment, without any time limitation.

Documents Required for Working License

Article 15 – The following documents must be delivered to DHMI in order to be able
to obtain a ground handling working license.
z Commercial title and address of companies, applying for a working license,
published in the Commercial Registry Gazette,
z The name of the concerned Chamber of Commerce, the group of registry, the date
and number of registry,
z The planned operational organization,
z Incentive certificate for paid capital,
z The names and addresses of founder partners and managers of corporate bodies,
z The preliminary permission document,
z The airports to be served at and the types of services to be provided,
z The number of staff to be employed in these services and on-the-job training
program delivered or to be delivered about ground handling services,
z A copy of the identity card, approved by the employer, given by DHMI referring
to the preliminary permission document received from the Ministry for the
personnel who will be commissioned at the airport.
z Amendment published in the Official Gazette Nr. 26220 dated 06.07.2006 –
Lists of vehicles, equipment and tools to be used; certified copies of documents
showing that they belong to the company; to determine that the special equipment
has been purchased from its manufacturer or authorized dealer: documents, to be
received from the chamber of commerce of the related country, stating that the
manufacturer or the authorized dealer is the manufacturer or exporter or
authorized dealer of these goods, and copies of such documents certified by the
Turkish Embassies or Consulates in the related countries; if the equipment has
been obtained through financial leasing: the financial leasing contracts approved
by Banking Regulation and Supervision Agency; if it has been hired in accordance
with the clause (j) of Article 14 of this Regulation. The notary certified samples of
hiring contracts other than the financial leasing contracts related to such hiring,
z Copies of licences, certificates or driving licenses of aircraft maintenance staff,
flight operation staff, ramp controller, dispatcher, load control, communication,
ballast staff, driver and similar staff,
z Liability insurance policy for consequential losses specified in the clause (o) of
Article 19 of the Regulations,
z Documents mentioned in the clauses (d) and (e) of Article 14 for the 71
Representation and Administration working License, Ground Handling Agreements

z Travel Agency Certificate Group A regarding those applying only for

“Representation Service Working License”,
z Bank letter of guarantee mentioned in the clause (f) of Article 7 of the
Regulations,
z Documents, related to staff to be employed, mentioned in the clause (g) of Article
14, required from the companies which will apply for Aircraft Private Security
Service and Audit,
z Service Agreement, signed between DHMI and the company,
The conditions set forth in the clauses (a), (b), (d) and (e) are not required for air
carriers and companies, which will perform Aircraft Private Security Services and
Audit.

Validity Period of Working Licenses

Article 16 – The validity period of working licenses for international flights is two
years and the validity period of working licenses for domestic flights is five years.

Agreements
Article 17 – Standard Ground Handling Agreement must be executed between the
ground handling companies and air carriers operating regular flights.
z More than 4 flights that are planned within two consecutive months are considered
regular flights.
z It is not required to sign an agreement for ground handling services that will be
provided to aircraft arriving as ad hoc without being subject to any schedule.
z Agreements must be sent to DHMI for approval.
z The Standard Ground Handling Agreement to be signed is prepared in accordance
with the latest “Standard Agreement” published by IATA-International Air
Transport Association.
z In case any amendment is made by IATA in the services types, details or in the
scope of the agreement after the publication of this Regulation, new arrangements
are made by the Ministry according to the amendments of IATA.
z DHMI may ask for the inclusion of additional provisions in the agreements in
order for services rendered to aircraft and passengers to be performed in a smooth
and proper way.
z In case ground handling companies become unable to provide services due to
unavoidable force majeure to be found acceptable by DHMI, notices of
termination for agreements concluded with ground handling companies, which
have been unable to fulfil their liabilities towards air carriers, are not taken into
consideration.
z Agreements, concluded with another ground handling company depending on
such termination notices, are not taken into consideration, either.
z It is mandatory to inform DHMI about the agreements that are cancelled.
72 5.3.2 Section Two – Guidelines and Procedures to be Applied
Airline and Airport Organisation
General Guidelines
Article 18 – Ground handling companies and air carriers must obey the following
guidelines.
z Service types, other than Transport, Representation, Supervision and
Administration, Aircraft Private Security Services and Audit and Catering Service
mentioned among the services in Article 5 of this Regulation, must be performed
or ensured to be performed for international flights of air carriers.
However, in case it is documented by foreign air carriers that Aircraft Line
Maintenance and Flight Operation services are not performed or are not necessary
to be performed for their aircraft at airports of our country or they can be
performed without the need for a dispatcher-technician, the related air carriers are
exempt from such obligation.
z Service vehicles, equipment and staff, in addition to the minimum number of staff
and equipment determined by DHMI, can be obtained by hiring from DHMI or
another ground handling company on condition that ground handling services are
not delayed and that it is temporary.
z In case there is a need for ground handling services, provided by ground handling
companies and air carriers, outside their working hours, they must undertake such
service upon the call made by DHMI.
z Regarding delays occurring in the scheduled times of arrivals and departures other
than official interventions, necessary measures for catering and other needs of
passengers inside and outside the airport are taken by air carriers. This subject is
specified in the agreement between the air carriers and ground handling
companies.
z Ground handling companies cannot bind their service presentation to other
irrelevant conditions.
z It is mandatory to sign a standard “Service Agreement” between ground handling
companies, which have working licenses group A, B or C and which provide
ground handling services at airports, and DHMI, which operates airports.
“Service Agreement” arranges the mutual relations, rights and obligations
between ground handling companies and DHMI, and the penal sanctions for
actions against the rules and principles specified in this Regulation.
“Service Agreements” have the duration of 2 years. Conditions for renewing or
extending the agreement are determined by DHMI.
“Service Agreements” cannot be against the provisions of this Regulation and
other related legislations.
Ground handling companies cannot conclude intercorporate agreements and
perform concerted actions, which are prohibited by the Law No. 4054 on the
Protection of Competition, and which directly or indirectly aim at inhibiting,
distorting or restricting competition, or which cause or may cause to arise such
effect.
z Supplement: RG-28/9/2010-27713 – The ground handling company that
provides passenger traffic, load control and communication, as well as ramp
services to an air carrier may not provide supervision and administration service
for the same air carrier.
z Supplement: RG-28/9/2010-27713 – The ground handling company that 73
provides passenger traffic, freight control and communication, as well as ramp Ground Handling Agreements
services to an air carrier may not provide supervision and administration service
for the same air carrier.
z Supplement: RG-28/9/2010-27713 – The air carrier may not contract with
multiple ground handling companies for the same type of ground service at the
airport where the flight is realized.

Liabilities
Article 19 – Ground handling companies and air carriers are liable for fulfilling the
following points:
z Ensuring that the provisions in this Regulation are applied and services are
performed properly and safely,
z Doing the necessary actions regarding warnings to be made by the Ministry or
DHMI related to ground handling services,
z Keeping the below mentioned personnel available in order to ensure that ground
handling services are performed at international level;
™ Trained managers with sufficient qualifications,
™ Personnel specialized in ground handling services,
™ Licensed technical ground staff,
™ Specialist staff trained in the carriage of dangerous goods,
™ Workers, drivers and other staff,
and ensuring that they are constantly trained to be improved and arranging
annual periodic courses to ensure this, and sending the annual training
programs to the Ministry,
z Preparing documents by making a weight and balance calculation for each flight
in order to avoid overloading of aircraft and keeping such documents in the flight
file for minimum 6 months after they are signed by staff who have received the
necessary training,
z Providing clothes, which are clean and appropriate uniforms for the characteristics
of the service, to their staff on-duty at airports and ensuring that such clothes are
necessarily used during service,
z Obtaining special “Apron Plates” for vehicles and equipment that will serve in
movement areas and mounting these plates onto mentioned places,
z Mounting yellow flashers, which can be visible from every direction to special
vehicles, specified by DHMI that will serve in movement areas
z Writing the name of the company onto every type of vehicle and equipment that
will be used for ground handling services,
z Keeping the vehicles, tools and equipment proper and in good order at specified
places as fully operative, clean, well-cared and painted and performing or
ensuring to be performed their technical tests minimum once a year.
z Obtaining an ID card from DHMI for each on-duty staff and ensuring that they are
worn,
Not allowing the staff who does not have a driving license and/or a special
certificate to use the vehicles serving in movement areas.
74 z Ensuring that all the personnel that will use vehicle in movement areas are
Airline and Airport Organisation delivered training to be opened by DHMI regarding the airport traffic rules (the
personnel who receives such training is given a vehicle driving license in
movement areas by DHMI.),
z Ensuring that the personnel who will use a special-purpose vehicle is delivered a
training by an authorized company or own company,
z Obeying the rules stated by DHMI regarding the applications of permanent and
temporary parking fields in movement areas,
z All corporations (including the subcontractors), which obtain licenses and use
vehicles and equipment in movement areas within the frame of this Regulation,
must have a “Liability Insurance Policy for Consequential Losses” in order to
compensate their damage to airport facilities, aircraft, service vehicles, tools and
equipment and third parties due to the services provided by them.
The sub-limit amount of such insurance per accident is determined by DHMI by
taking into consideration the nature of the activity, volume and international
standards for the service provided.
(The minimum insurance amount is reviewed by DHMI every year.)
z Supplement: R.G-27/2/2010-27506 – Within the framework of the related
regulations, the transportation of the incoming and outgoing people and the
luggage of these people between the terminal building and the air plane and other
operations are conducted free of charge by the air carrier who realizes the flight,
or they are sourced through purchasing service from the ground handling
company. Any fees are not collected from incoming and outgoing people also
during the operations delivered by sourcing the service.
z Supplement: RG-28/9/2010-27713 – At the airports with over 1,000,000
(one million) passenger traffic per annum, for the passenger traffic, load control
and communication and ramp services provided to air carriers, the required
transactions for IATA Ground Handling Safety Program (ISAGO) must be
completed and documented
(i) By the ground handling company with operating license in two years,
(ii) By the ground handling company to obtain operating license within two years
from the license date.
In addition, for the other airports to be determined by the Ministry, the mentioned
transactions must be completed within one year.

Working Hours
Article 20 – Working hours of ground handling companies and air carriers are
determined according to the following principles:
z Ground handling companies arrange their working hours themselves according to
the requirements of the service. However, they keep sufficient number of
authorized staff available at the service place for the working hours of the airport
by taking into consideration the probable needs and emergency cases.
z Air carriers, which perform all or a part of ground handling services for
themselves, arrange their working hours themselves according to their flight
schedules by also taking the delays into consideration.
5.3.3 Section Three – Auditing and Improper Actions 75
Ground Handling Agreements
Auditing
Article 21 – Services of ground handling companies mentioned in this Regulation are
audited or ensured to be audited by the Ministry and DHMI. In case improper actions
which are against the rules specified in the Regulations are determined during the
audits performed by DHMI, reports are urgently submitted to the Ministry after the
penal sanctions specified in the Regulations or Service Agreement are applied. A copy
is also sent to the audited company.

Improper Actions
Article 22 – The below mentioned provisions are applied for corporations and staff
that act against the procedures and guidelines specified in this Regulation.
In case ground handling companies, which have met the conditions required in this
Regulation and obtained working license, lose all or a part of the conditions required
in the Regulations, a period of 30 days is given to such companies. If they fail to meet
the required conditions within the given period, their working license is cancelled.
z If defects and deficiencies and situations against the provisions of the Regulations,
which are seen during the provision of airport ground handling services, are found
to be risking the flight safety by DHMI, the deficient activity is immediately
stopped by DHMI and a sufficient period of time is given to the company for
elimination of such deficiencies and the situation is informed to the Ministry in
written.
The working license of the company, which does not take the necessary measures
within this period, related to the concerned service type, is suspended by DHMI
for a definite period upon the proposal of the related airport manager or cancelled
for an indefinite period and the Ministry is informed about the result.
z The related companies or air carriers providing services are informed in written
regarding defects and deficiencies and situations against the provisions of the
Regulations, which do not endanger the flight safety but cause delays in the
service during the provision of airport ground handling services, and they are
asked to correct them by giving them a sufficient period of time for elimination of
such deficiencies.
The company or air carrier, which does not take the necessary measures within
this period, is informed in written that their working license valid for this service
is revoked for a period up to 15 days.
Working licenses of companies, which are determined to have taken the necessary
measures to perform the service without delay within this period, are put into
force. Working licenses recurring on the same subject are taken back for a period
of 30 days and the related companies are given a last notice.
Working licenses of companies, which take the necessary corrective actions, are
given back at the end of 30 days’ period.
Working licenses of companies, which do not take the necessary corrective
actions for the related service type, are cancelled and they are not given such
license any more.
Revoking the working licenses temporarily or permanently is performed by DHMI
upon the proposal of the related airport manager and the Ministry is informed
about the result.
76 z Regarding the defects and deficiencies that do not endanger the flight safety but
Airline and Airport Organisation disturb the operations of airport and cause delays in the service during the
provision of airport ground handling services and actions against the operational
instructions published by DHMI, pecuniary penal sanctions that are specified in
the “Service Agreement” concluded between corporations serving at airports and
DHMI are applied.
z In case the working license is revoked temporarily or permanently, DHMI asks a
ground handling company or a local air carrier, which has a working license for
this service, to perform such service. Ground handling companies or local air
carriers are obliged to perform such services in exchange for determined charges.
z The identification card of personnel, who acts against the rules of the Regulations
or causes delays in the service, is asked to be given back by DHMI for a period of
minimum 3 days. It is mandatory for the related corporation to deliver the
requested identification cards to DHMI in return for a document within maximum
24 hours. Identifications taken from personnel are given back again to such
personnel upon the application of the employer company or air carrier after the
charge mentioned in the “Identification Card Charge Tariff” put into force by
DHMI is re-collected. No identification card is given again to personnel, whose
cards are taken back three times in total within a calendar year or five times in
total without a year limit.
z In case it is determined that there are vehicles and equipment, the technical and
vehicle inspections of which have not been performed on time or which have
deficiencies, the company is informed in written and not allowed to perform
services in movement areas. In case it is determined that the related vehicle(s)
render services in movement areas without having eliminated the determined
deficiencies, the special apron plates of such vehicles are taken back until the
deficiencies are eliminated and they are not allowed to render services in
movement areas. Upon the application of the related company or air carrier stating
that the defect has been eliminated, DHMI performs necessary checks, re-collects
the first grant charge according to the tariffs put into effect by DHMI and gives
back the special apron plate.
z Nobody is allowed to drive vehicles in movement areas without having a driving
license and a certificate for using vehicles on apron. When an improper action is
determined, the identification card of personnel, who drives without any
authorization, is taken back by DHMI without the need for warning in written.
The identification card is given back upon the application of the related company
by collecting the first grant charge. However, the related personnel is not allowed
to work in the apron for a period of minimum one month.
z In case deficiencies and defects are detected regarding flight and life safety, the
working license of the company or the air carrier, rendering the service, related to
such service is immediately suspended by DHMI. According to the examinations
to be made, the working license is revoked temporarily or permanently.
z In case it is determined that corporations, which have obtained working license in
the scope of this Regulation, have actions and applications that damage the
national security and public order, the working license is cancelled.
In case it is determined that actions against the national security and public order
arise from the employees of the corporation, a written warning is sent to the
corporation without delay. In case the improper action continues despite the
warning, the activity of the corporation is suspended for a period up to 15 days; in
case of recurrence, the working license is cancelled.
z In case a concrete and documented complaint is received or it is suspected by 77
DHMI regarding the fact that ground handling companies apply charges below the Ground Handling Agreements
cost, DHMI has the Independent Financial Auditing Firms audit such companies
provided that the related charge is paid by the company to be audited.
z Supplement: RG-28/9/2010-27713 – The Ministry warns the related ground
handling company or imposes them administrative financial penalty when
required, when the ground handling company provides incorrect information or
documents during the transactions and application to the Ministry, breaches the
Ministry’s instructions regarding the provisions of this Directive or the realization
of the services. Upon the repetition of the mentioned breach, the working licence
is suspended for up to ninety days with the Ministry’s approval, and the continuity
of the mentioned situation causes to the cancellation of working licence.

5.4 PART THREE – CHARGES

5.4.1 General Guidelines
Article 23 – The following general guidelines are applied for the charges to be
collected in return for ground handling services according to the provisions of this
Regulation:
z The charges to be collected by air carriers, in special cases specified in this
Regulation, and by ground handling companies for the service types, mentioned in
Article 5 of this Regulation, are determined by an agreement between the
company providing the service and the company receiving the service.
z Ground handling companies cannot determine charges below the cost in their
agreements for the service types, mentioned in Article 5 of the Regulations.
z Charges to be collected by ground handling companies for services that they will
provide to air carriers for domestic and international flights are collected
according to the seat capacity for passenger aircraft and maximum take-off weight
for cargo aircraft.
z Charges are paid in US dollars or convertible money or in Turkish Liras based on
the selling rate of the Turkish Central Bank on the date of payment.
z Even if only a part of the service types, among the service groups which are
mandatory to be performed or ensured to be performed, is demanded, the entire
service will be deemed to have been given and the charge specified for that
service group will be collected.
z Charges to be collected for identification cards which will be given to the
personnel to work in companies rendering service at airports are determined by
DHMI.
z Charges to be collected for special apron plates which are given to vehicles to
render service in movement areas of airports are determined by DHMI.
(i) Ground handling companies, which have working licenses A, B or C
(ii) Air carriers, which operate international flights and perform the ground
handling services permitted in this Regulation for themselves,
(iii) Amendment: RG-19/09/1999-23821 – Air carriers, which perform the ground
handling services for another air carrier in special cases that are permitted in
this Regulation, and which render ground handling services to an aircraft that
operates an international flight, pay DHMI the charges determined by DHMI
as Royalty Fees for each type of service specified in Article 5 of this
78 Regulation for each aircraft that will be classified according to aircraft type
Airline and Airport Organisation and number of seats.
However, in case air carriers obtain working license and render all or a part of the
representation, supervision and administration service, aircraft private security
service and audit, flight operations, aircraft line maintenance and load control and
communication services to their own aircraft, no Royalty Fees are collected for
such services by DHMI.
This charge is not payable to the Directorate General of State Airports
Administration in exchange for ground handling services to be performed for
domestic flights.
z In case aircraft with Turkish registrations are charged, in their operations to
foreign countries, for a service type which is not subject to any fee in Turkey, a
similar application may be performed at airports of our country by DHMI for the
air carriers of those countries.
Likewise, similar application may be performed for air carriers of countries which
do not apply similar authorizations to our local air carriers in foreign countries for
performing ground handling services which are granted to foreign air carriers in
Turkey.
z The price to be charged for meal, beverage and similar things to be delivered
inside catering to aircraft is subject to an agreement between the company
delivering the catering and the company receiving the catering.
z “Royalty Fees” to be paid to DHMI by ground handling companies having
working licenses A, B or C are audited by DHMI. In case it is found necessary by
DHMI, the audit is performed by a special Auditing Firm provided that the related
charge is paid by the company to be audited.

Common Provisions
Article 24 – Common provisions that the application of charge tariffs will be based on
are as follows:
z Besides the cargo service charge, the entire ramp charge is also collected from the
cargo aircraft and other aircraft, which operate flights to carry loads in the
passenger cabin.
z Upon the instructions of the Ministry and under the coordinator ship and
supervision of the Directorate General of State Airports Administration, ground
handling services are performed by the existing ground handling companies free
of charge for aircraft, which brings aid materials to our country or from our
country to other countries due to natural disaster and similar reasons.
z Upon the instructions of the Ministry, no charge and/or discounted charge is
applied for ground handling services that will be rendered to aircraft, which has
exceptional speciality.
z The prices are charged to local air carriers according to the following guidelines;
(i) Domestic flight tariff for flights departing from Turkey and arriving in
Turkey,
(ii) Half of the international flight tariff for flights from Turkey to abroad,
(iii) Half of the international flight tariff for flights from abroad to Turkey is
applied.
Amendment: RG-10/04/1997-22960 – Charge tariffs to be prepared by DHMI cannot 79
be put into effect without getting approval from the Ministry and before they are Ground Handling Agreements
announced to third parties minimum 15 days in advance.

Other Services
Article 25 – The applications, regarding subjects that are in the scope of ground
handling services, which are not mentioned in the Regulations, and/or regarding
aircraft and services with exceptional specialities, and the cases, for which there is not
any provision in this Regulation, are arranged by the Ministry.

5.5 PART FOUR – FINAL PROVISIONS

5.5.1 Abolished Provisions
Article 26 – Airport Ground Handling Regulations, published in the Official Gazette
Nr. 20766 dated January 25th 1991, and its Annex and all the amendments made
thereafter, have been abolished.
Provisional Article 1 – Corporations, which perform ground handling services by
having obtained working license in compliance with the abolished regulation rules,
must align their current activities with the provisions of this Regulation and renew
their working licenses within maximum 6 months as from the effective date of this
Regulation. Regarding the renewal processes of working licenses to be made as per
this Regulation, no additional charge is collected for the period until the end of the
validity date of the currently valid working licenses.
Amendment: RG-10/04/1997-22960 – The first grant charge is not collected for
“Load Control and Communications” working license to be given to ground handling
companies, which have obtained “Passenger Services” working license before the
publication of this Regulation.
Provisional Article 2 – Working licenses of corporations, which do not align their
current activities with the provisions of this Regulation within maximum six months
as from the effective date of this Regulation and which do not take necessary
corrective actions within this period, are cancelled by DHMI and the Ministry is
informed about the result.
Provisional Article 3 – In case corporations, which have obtained preliminary
permission from the Ministry according to the rules of the abolished Regulations,
complete their preparations and make application to obtain working license within the
preliminary permission period, such demands for working licenses will be evaluated
according to the provisions of the abolished Regulations. The period of 6 months,
given as per the Provisional Article 1 of this Regulation, starts as from the grant date
of the working license for the service type related to the preliminary permission for
such corporations.
Amendment: RG-10/04/1997-22960 – The abolished working license charge tariff is
applied as the first grant charge for working license to be given to corporations, which
have obtained preliminary permission before the publication of this Regulation and
which have been entitled to obtain working license by having been examined before
the new working license charge tariff to be prepared by DHMI has been put into
effect.
Provisional Article 4 – Ground handling charges to be determined between ground
handling companies and air carriers, as per the clause (a) of Article 23 of the
Regulations, will come into effect as from the expiry date of the current agreements,
and on March 1st 1997 if the current agreements have no expiry date.
80 5.5.2 Current Transport Services
Airline and Airport Organisation
Provisional Article 5 – (1) – Supplement: RG-06/07/2006-26220 – Corporations,
which perform regular passenger transport between the city terminal and/or terminals
and the airport and/or from the airport to neighbour cities and districts before the
publication of this Regulation, must align their status with this Regulation and obtain
license within maximum 6 months as from the publication date of this Regulation. In
order not to cause grievance at the stage of examining and finalizing the license
applications of the related corporations, they are allowed to continue their activities.
However, this period cannot exceed 6 months under any circumstances.

5.5.3 Compliance Period

Provisional Article 6 – Supplement: RG-28/9/2010-27713 – Air carriers and ground
services organizations must fulfil the conditions mentioned in subsections (g), (h) and
(i) of the first paragraph of article 18 within 6 months from the enforcement date of
this article.

5.5.4 Enforcement
Article 27 – This Regulation come into force on the date of publication.

Execution
Article 28 – The provisions of this Regulation are executed by the Minister of
Transport and Communication and General Director of DHMI.
Check Your Progress 2
Fill in the blanks:
1. The provisions of this Regulation are executed by the Minister of
Transport and Communication and General Director of DHMI is
contained in ……………………….
2. Article ……………………. Airport Ground Handling Regulations,
published in the Official Gazette Nr. 20766 dated January 25, 1991, and
its Annex and all the amendments made thereafter, have been abolished.

5.6 LET US SUM UP

Regulations on airport ground handling services comprise four parts that includes
general provision in part one, guidelines and procedures in part two, charges in part
three, final provision present in part four. Part one contains three sections, section one
defines purpose, scope, basis and definition. Section two contain different types of
airport ground handling services, section three includes responsibility and
authorizations. Part two contains guidelines and procedures and contains three
sections. Section one includes processes related to working license, section two
includes guidelines and procedures to be applied, section three includes auditing and
improper action. Part three include charges and Part four includes final provisions.

5.7 LESSON END ACTIVITY

Study other laws related to aviation management and find out what can be the possible
amendment required.
5.8 KEYWORDS 81
Ground Handling Agreements

Ground Handling Company: A company with a corporate body status which have
obtained Working License to perform ground handling services at airports according
to the provisions of this Regulation.
Air Carrier: All local and foreign air carriers.
Local Air Carrier: Operators which have obtained Operating License from the
Ministry of Transport by having met the conditions required in the Turkish Civil
Aviation Law No. 2920 and the regulations introduced concerning this law.
Foreign Air Carrier: Operators which have obtained Operating License from a
foreign state authority.

5.9 QUESTIONS FOR DISCUSSION

1. Who is responsible to the Ministry for taking measures to ensure the performance
of ground handling services? What are the measures taken for the same in this
regard?
2. What are the documents required for working license?
3. Discuss the different types of airport ground handling services.
4. According to Article 19 what are the liabilities of ground handling companies and
air carriers?

Check Your Progress: Model Answers

CYP 1
1. 2
2. 1
3. 3

CYP 2
1. Article 28
2. 26

5.10 SUGGESTED READINGS

Julie, Rodwell, (2003), Essentials of Aviation Management: A Guide for Aviation
Service Business. Kendall Hunt Publishing Company
Speciale, Raymond, (2006), Fundamentals of Aviation Law, McGraw Hill
T. Wells, Alexander, (2004), Airport Planning & Management, McGraw Hill
82
Airline and Airport Organisation LESSON

6
CREW RESOURCE MANAGEMENT

CONTENTS
6.0 Aims and Objectives
6.1 Introduction
6.2 Crew Resource Management – An Overview
6.3 Crew Resource Management as a Model of Safety Management
6.4 Documentation Related to Crew Management
6.4.1 Communication and Decision-making Skills
6.4.2 Team Building
6.4.3 Workload
6.5 Let us Sum up
6.6 Lesson End Activity
6.7 Keywords
6.8 Questions for Discussion
6.9 Suggested Readings

6.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Explain the Crew Resource Management
z Understand the relationship between CRM and Aviation

6.1 INTRODUCTION
Crew Resource is concerned not so much with the technical knowledge and skills
required to fly and operate an aircraft but rather with the cognitive and interpersonal
skills needed to manage the flight within an organised aviation system. In this context,
cognitive skills are defined as the mental processes used for gaining and maintaining
situational awareness, for solving problems and for making decisions. Interpersonal
skills are regarded as communications and a range of behavioural activities associated
with teamwork. In aviation, as in other walks of life, these skill areas often overlap
with each other, and they also overlap with the required technical skills. Furthermore,
they are not confined to multi-crew aircraft, but also relate to single pilot operations,
which invariably need to interface with other aircraft and with various ground support
agencies in order to complete their missions successfully. CRM training for crew has
been introduced and developed by aviation organisations including major airlines and
military aviation worldwide. CRM training is now a mandated requirement for
commercial pilots working under most regulatory bodies worldwide.
6.2 CREW RESOURCE MANAGEMENT – AN OVERVIEW 83
Crew Resource Management

Air transport remains one of the safest methods of moving people and goods from one
point to another. The number of fatal incidents per distance travelled is extraordinarily
low however; the industry suffers a paradox of very low accident rate but a very high
potential for loss of life when an incident does occur (as modern transport aircraft can
carry hundreds of passengers at a time). It has been touted widely during the past
several decades that 85% of accidents are caused by human error but what this term
fails to recognize is that humans are but one part of the wider environment – they must
interact with many components including weather, technology, social systems etc.
Despite this, humans are at the most very basic level the root cause of any incident
because humans ultimately design and/or interact with all elements of the wider
environment. The core reason for the existence of air carriers (airlines) is to safely
transport people and goods from one place to another. Management of risk and threat
is the key to managing safety and therefore many aviation systems (such as weather
planning, air traffic control and flight deck warning systems) exist to manage risk. The
practice of crew resource management is an integral part of commercial airline
operations. Modern crew resource management focuses upon the management of
resources to reduce error by many groups of aviation specialists (e.g. air traffic
controllers, pilots, cabin crewmembers, mechanics and dispatchers) through goal
setting, teamwork, awareness and both pro- and reactive feedback. These same
components of crew resource management are facets of Perezgonzales’ model of
health and safety management. Crew resource management aims to allow numerous
people in various roles to manage various core elements and throughputs to achieve an
outcome (safer flight); therefore, crew resource management in practice can be
thought of a micro-model for safety management existing as part of a larger
organizational model.

6.3 CREW RESOURCE MANAGEMENT AS A MODEL OF

SAFETY MANAGEMENT
Crew resource management is a model of management used to respond (manage)
threat and error in aviation. This model uses the same principles of the Perezgonzales
model (core elements are used to build throughputs, which become outputs, which
results in outcomes).
The core elements of the CRM are:
z The goal of a safe flight (goals), Cooperation and communication between pilots,
ATC, cabin crew and dispatch,
z Monitoring of internal (intra-crew and aircraft) and external situation for threats
(e.g. poor teamwork, weather, terrain, fuel state, location of aircraft in regards to
flight plan), and
z Feedback to enable practices to be adjusted and threats to be evaluated.
z These core elements allow throughputs to be created which enhance system
performance.
z Awareness of the current state of both internal (onboard the aircraft) and external
operations (air traffic instructions, environment, weather) and threats,
z Threat detection (through awareness of the situation),
z Threat response through expertise (training/standard operating procedures),
coordination and communication (between the crew and air traffic control, intra-
crew, crew and dispatch, etc.). By using the core elements and throughputs of
84 goals, teamwork (communication/cooperation), situational awareness and
Airline and Airport Organisation feedback the crew practice threat detection and error avoidance behaviours.
Check Your Progress 1
Fill in the blanks:
1. …………………………. is a model of management used to respond
(manage) threat and error in aviation.
2. These core elements allow …………………………… to be created
which enhance system performance.

6.4 DOCUMENTATION RELATED TO CREW

MANAGEMENT
‘Natural limitations on human performance and complexity of the environment make
error inevitable’ (Helmreich Pub. 257). In the aviation industry, safety is the utmost
priority even though they (aviation industry) can justifiably or boast about how much
safer it is to travel by air then on road. The field of human factors has been a great
concern since the early days of commercial aviation (Hawkins 1987). Human factors
evolved from an initial combination of engineering and psychology with focus on
‘knobs and dials’ to an multidisciplinary field that draws on the methods and
principles of behavioural-social sciences, engineering and physiology to optimize
human performance and to reduce human error (National Research Council 1989).
Crew Resource Management (CRM) is an application in order to reduce errors
committed by human. We will now go in-depth to discuss on what is CRM, and the
impact it has on the aviation industry worldwide. Human errors accounts for about
75% of aviation accidents, therefore, human performance is one of the major concerns
towards safety in aviation (Hawkins 1987). Recognition of this human performance
problem stimulated a number of independent efforts classified under the term ‘pilot
error’. The researchers are focused on what can be done to reduce such errors. One of
the most outstanding developments in aviation safety for the past decade has been the
implementations of training programs aiming to increase effectiveness and efficient in
crew’s teamwork as well as flight-deck management. This development was first
introduced when aircraft investigators concluded that ‘pilot error’ documented in past
accidents and incidents were reflected to team-communication and coordination rather
than pilots ‘stick and rudder’ skills proficiency (Murphy 1980). The original label for
such training was known as cockpit resource management, but with recognition to its
applicability of the approach to others members of the aviation community; it changes
into Crew Resource Management (CRM). CRM is the application of human factors in
the aviation system which uses all available resources (equipment and people) to
achieve safe flight operations. CRM combines individual technical efficiency with the
broader goal of crew coordination. CRM courses aims to allow all aviation personnel
to have effective performance which consist of technical proficiency and interpersonal
skills. The primary focus will be directed to team coordination, the attitudes and
behaviours of individual. CRM courses are design to address human behaviour which
is a product of knowledge and thought process, personality, attitude and background.
It is not design to change ones’ personality. In order to achieve those key-points
mentioned above; most CRM courses worldwide are similar in terms of its content.
All CRM courses consist of three main clusters of skills namely, communication,
team-building and workload.
6.4.1 Communication and Decision-making Skills 85
Crew Resource Management
Communication and Decision-making Skills are the first cluster of CRM modules.
These skills are the primary core factor in good CRM. It is to build up interpersonal
skills in which crew will need to ensure optimal performance. Personnel attending
CRM must know that information must be requested, offered or given freely in a
timely way to permit accurate, effective decision-making. CRM training will also
provide knowledge on communication styles used by others for interpretation as well
as to determine the proper emphasis for a response (Jensen 1995). With poor
information due to poor communication, there will be a lack of critical information or
data which will subsequently affect decision-making. On 25th January 1990, Avianca
Flight 052 crashed while making a second attempt to land at JFK International
Airport, New York (NTSB aircraft accident report HK2016). NTSB reported that
flight crew did not communicate an emergency fuel situation to the ATC before fuel
exhaustion occurred. Communications was reported as not clear and the captain did
request the first officer to repeat information louder as the captain could not hear it.
A fatal communication error occurs when the first officer relay the message to turn
starboard instead of turning port. This message made the B707-321B fly a longer loop
thus burning more fuel. Communications between the ATC and the first officer clearly
shows a misinterpretation about fuel level. The first officer assumed that the ATC had
acknowledged the low fuel status of the Flight 052 but in fact, the ATC interpreted the
transmission as ‘Flight 052 has sufficient fuel’. Words like ‘emergency’ was not used
by the first officer thus it leads to a different outcome of interpretation. This air
accident shows us a total breakdown in communication by the flight crews in attempt
to relay important situations to the ATC. The flight crew was reported to have
limitations in their individual abilities in English language. Proper knowledge of CRM
training which focus on inter-personal communication will perhaps prevent this
accident as the pilots may have better proficiency in English language, communicate
better and clearly, standardisation of phraseology which will prevent
misinterpretations and the pilots may repeat to the other party about the message and
make sure they understood what the situation was before engaging in other
conversations (Shari Stamford Krause, Ph.D.), With good attributes of CRM,
decision-making by the captain or the first officer to declare an emergency and seek
for help from the ATC might prevent this fatal accident. CRM training in
communication and decision-making allows aviation personals to increase team
effectiveness, reduces fewer errors which eventually increases the safety aspects.

6.4.2 Team Building

The second cluster of skills will be Team Building. Team building consists of two
major concepts which are leadership and team management. Large aircrafts like the
A380s or the B747-800s are flown by teams not by individual pilots. Teams are often
used in aviation as the complexity of task increases as technology advances. Teams
are used to also provide redundancy in order to provide an extra safety factor which is
critical for aviation (Ginnett 1993). CRM focus on how people behave in
teams/groups. As people behave differently in teams/groups as they do alone, CRM
training teaches personnel to adapt to such situations and to optimise performance
rather than getting ‘affect’ from team-working. CRM aims to reduce problems which
might be created in teams such as, by stander effect, conformity, social loafing,
decision-making in teams and groupthink (Jensen 1995). On 23rd March 1994, an
Aeroflot Russian International Airline A310-304 crashed near Mezhduretshensk,
Russia, killing 75 passengers onboard (ICAO Adrep Summary 2/94 #4). The aircraft
crashed after a captain allowed his children to fly the plane. While the boy was flying,
he inadvertently disengaged the autopilot linkage to the ailerons and put the airliner in
a bank of 90-degrees which caused the nose to drop sharply. The co-pilot tried to
86 remedy by pulling back on the yoke to obtain level flight but the plane stalled. After
Airline and Airport Organisation several stalls, the aircraft crashed into the ground. This Example display how poor
team performance can have disasters consequences. Conformity affects the co-pilot as
he agrees with the captain to allow unauthorised personnel to handle the aircraft. The
co-pilot knew that this was against procedure and worst of all; to let someone without
any qualifications on flying to handle the aircraft. The co-pilot was perhaps under
pressure from the captain when he gave in towards the decision. Normative influence
occurs in order to not to offend the captain. In another aspect, the captain did not show
leadership capabilities as he had breech safety policies to allow non-pilots to fly the
commercial airliner. If the co-pilot had been properly trained with CRM, he would
reject the captain’s idea. CRM teaches a person to use proper communication skills as
well as assertive behaviour in order to handle such situations. Therefore, from this
example, we can conclude that CRM is critical and it will be able to prevent such fatal
accidents.

6.4.3 Workload
Lastly, the final cluster of skills for CRM will be workload. This includes the concepts
like mission planning, stress management and workload distribution. Accidents often
happen when workload demands are greater than team capabilities. In pilot’s
perspective, most accidents happen during take-off and landing phrases. These phrases
are periods on high workload. But surprisingly, low workload can also cause
accidents. In flight crew perspective, during the long cruise segments, the pilots may
be less attentive then when they are working frantically. This low workload periods
are times where complacency is the most common. This is known as the low-arousal
level factor from the Yerkes-Dowson Law (Wickens & Hollands 2000). Workload
management is crucially important. Most of the aviation-operations jobs required shift
duties, thus proper workload management must be planned as circadian rhythms will
causes performance to decrease which results in reduction of safely aspects.
On 3rd September 1989 2045 hour, VARIG airline flight RG 254 made a forced
landing into a jungle near Sao Jose do Xingu, Brazil due to fuel exhaustion (ICAO
Adrep Summary 5/89 #11). The flight, a B737-241 took off at 1725 hour from Maraba
towards Belem, Brazil. The flying time was approximately 45mins. The flight crew
entered into the flight computer 270 degrees instead of 027 degrees. After 2 hours of
flying, the captain finally realized that they were flying towards the wrong direction.
Amendments were made to fly back to their original route, but it was too late. The
plane was 600NM off course. Fuel exhaustion occurred which leads to the forced
landing in the jungle. The navigation mistake went unnoticed because the flight crews
were reported listening to the World Cup Qualification Match between Brazil vs.
Chile. From this example, we can see that how poor workload management causes
such an accident. If the crew/team manages to priories their workload and if the crew
doubled-check their computer inputs, such accidents will not even occur. With quality
CRM training, teams are train to follow procedures and to double-check their work.
Good leaders will distribute even workload to each member’s capacity, in order to
have optimal performance. From this accident, if captain has order the co-pilot to
make scheduled checks on the flight computer, such accidents could be prevented.
Distractions such as listening to radios should be minimised. The pilots should
increase their arousal level by going through cruising procedures in order to have
optimal performance during cruising. CRM training for personnel will prevent such
accidents which increases aviation’s safety. From the three examples given above
which demonstrated human factors being a key failure which result in massive
destruction, proper CRM training must be applied in order to increase safety in
aviation. CRM knowledge will reduce the above mentioned slips/mistakes which will
prevent the accidents.
 Check Your Progress 2 87
Crew Resource Management
Fill in the blanks:
1. All CRM courses consist of three main clusters of skills namely,
………………. , …………… and ………………… to have effective
performance which consist of technical proficiency and interpersonal
skills.
2. ………………………….. skills are the first cluster of CRM modules.

6.5 LET US SUM UP

Crew resource management aims to allow numerous people in various roles to manage
various core elements and throughputs to achieve an outcome (safer flight); therefore,
crew resource management in practice can be thought of a micro-model for safety
management existing as part of a larger organizational model. Crew resource
management is a model of management used to respond (manage) threat and error in
aviation. There are various core elements of CRM. These core elements allow
throughputs to be created which enhance system performance. Crew Resource
Management (CRM) is an application in order to reduce errors committed by human.
Communication and Decision-making Skills is the first cluster of CRM modules. It is
to build up interpersonal skills in which crew will need to ensure optimal
performance. The second clusters of skills will be Team Building. Team building
consists of two major concepts which are leadership and team management. Lastly,
the final clusters of skills for CRM will be workload. This includes the concepts like
mission planning, stress management and workload distribution.

6.6 LESSON END ACTIVITY

Find out the features of CRM training followed by the Indian aviation industry and
make a report on the same.

6.7 KEYWORDS
Perezgonzales’ Model of Health and Safety Management: It consists of a number of
layers and components in a causal chain whereby each element has influence upon the
total system and allows for the logical, effective flow of information to achieve goals.
The purpose of this system is to influence the operational system so that it is operated
in such a way that health and safety are maintained.
ATC: Air Traffic Control is a service provided by ground-based controllers who direct
aircraft on the ground and through controlled airspace.
Throughputs: In Perezgonzales’ model, these enhance the core elements and lead to
greater outputs.
CRM: Crew Resource Management can be defined as a management system which
makes optimum use of all available resources – equipment, procedures and people – to
promote safety and enhance the efficiency of flight operations.

6.8 QUESTIONS FOR DISCUSSION

1. What are the core elements of the CRM?
2. What is the relationship between CRM and aviation?
3. Describe the three main clusters of skills focused upon by the CRM.
88 Check Your Progress: Model Answers
Airline and Airport Organisation
CYP 1
1. Crew resource management
2. Throughputs

CYP 2
1. Communication, team building, workload
2. Communication and decision-making

6.9 SUGGESTED READINGS

Kanki, B.G. et al. (2010), Crew Resource Management, Academic Press
Harvey, G. and Turnbull, P.J. (2006) ‘Employment Relations, Management Style and
Flight Crew Attitudes at Low Cost Airline Subsidiaries: The Cases of British
Airways/Go and bmi/bmibaby’, European Management Journal, 24(5), pp. 330-337.
LeSage, P. et al. (2010), Crew Resource Management; Jones & Bartlett Learning 2012
FAR for Flight Crew Book – ASA
 89
Passenger’s Terminal Management

UNIT III
90
Airline and Airport Organisation
 91
LESSON Passenger’s Terminal Management

7
PASSENGER’S TERMINAL MANAGEMENT

CONTENTS
7.0 Aims and Objectives
7.1 Introduction
7.2 Passenger Terminal Concepts
7.2.1 Unit Terminal Concepts
7.2.2 Linear Terminal Concepts
7.2.3 Pier Finger Terminals
7.2.4 Pier Satellite and Remote Satellite Terminals
7.2.5 Mobile Lounge or Transporter Concept
7.2.6 Hybrid Terminal Geometries
7.3 Airside–Landside Concept
7.3.1 Off-airport Terminals
7.3.2 Present-day Airport Terminals
7.4 Components of the Airport Terminal
7.4.1 Apron and Gate System
7.4.2 Aircraft Gate Management
7.4.3 Gantt Charts
7.5 Domestic Terminal Features
7.6 International Terminal Management
7.7 Cargo Terminal
7.7.1 Airfield Pavements
7.8 Let us Sum up
7.9 Lesson End Activity
7.10 Keywords
7.11 Questions for Discussion
7.12 Suggested Readings

7.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concept of airport terminals
z Discuss the geometry of different types of terminals
z Describe the different components of airport terminal
92
Airline and Airport Organisation
7.1 INTRODUCTION
The airport terminal area, comprised passenger and cargo terminal buildings, aircraft
parking, loading, unloading, and service areas such as passenger service facilities,
automobile parking, and public transit stations, is a vital component to the airport
system. The primary goal of an airport is to provide passengers and cargo access to air
transportation, and thus the terminal area achieves the goal of the airport by providing
the vital link between the airside of the airport and the landside. The terminal area
provides the facilities, procedures, and processes to efficiently move crew, passengers,
and cargo onto, and off of, commercial and general aviation aircraft. The term
terminal is in fact somewhat of a misnomer. Terminal implies ending. Although
aircraft itineraries begin and end at an airport's terminal area, the itineraries of
passengers and baggage do not. It is vitally important to understand that the airport
terminal is not an end point, but an area of transfer along the way. As will be
discussed in this section, the building configurations, facilities, and processes that
comprise an airport terminal area require careful planning and management to ensure
the efficient transfer of passengers and cargo through the airport and aviation system.

7.2 PASSENGER TERMINAL CONCEPTS

What should be the concept of a passenger terminal? There has been a considerable
debate on it. Two concepts of terminal designs have been developed, namely
centralized and decentralized terminal. While deciding which of the concepts will suit
a particular airport, the economics and suitability of the terminal in terms of the total
area, manpower utilization and the convenience available to the passenger and airlines
have to be examined.

7.2.1 Unit Terminal Concepts

These first terminals were the earliest centralized facilities, centralized meaning that
all passenger processing facilities at the airport are housed in one building. These first
centralized facilities became known as the earliest simple unit terminals, because they
contained all required passenger processing facilities for a given air carrier in a single-
unit building. In addition to passenger processing facilities, the airport's administrative
offices, and even air traffic control facilities, were located within the unit terminal
building became known as the combined unit terminal. In larger metropolitan areas,
separate buildings were constructed for each airline, each building behaving as its own
unit terminal. This terminal area configuration became known as the multiple-unit
terminal concept. Even though the multiple-unit terminal area consisted of separate
facilities for each airline, it is still considered an individual centralized facility because
all passenger and cargo processing required for any given passenger or piece of cargo
to board any given flight still exists in one facility. The early centralized terminals,
including the simple-unit, combined-unit, and multiple-unit terminals, employed the
gate arrival concept. The gate arrival concept is a centralized layout that is aimed at
reducing the overall size of terminal areas by bringing automobile parking as close as
possible to aircraft parking. The simple-unit terminal represents the most fundamental
type of gate arrival facility, consisting of a single common waiting and ticketing area
with exits onto a small aircraft parking apron. Even today, the gate arrival concept is
adaptable to airports with low airline activity and is particularly applicable to general
aviation operations whether a smaller general aviation terminal is located separately
from a larger terminal for commercial air carriers or is the operational centre for an
airport used exclusively for general aviation. Where the terminal serves airline
operations, close-in parking is usually available for three to six commercial aircraft.
Where the simple-unit terminal serves general aviation only, the facility is within
convenient walking distance of aircraft parking areas and adjacent to an aircraft
service apron. The simple-unit terminal facility normally consists of a single-level 93
structure where access to aircraft is afforded by a walk across the aircraft parking Passenger’s Terminal Management
apron.

7.2.2 Linear Terminal Concepts

As airports expanded to meet the growing needs of the public, as well as the growing
wingspans of aircraft, simple-unit terminals expanded outward in a rectangular or
linear manner, with the goal of maintaining short distances between the vehicle curb
and aircraft parking that existed with unit terminals. 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 having to be
outside on the apron, thereby improving convenience and safety for passengers. In
some instances airports were extended in a curvilinear fashion, allowing even more
aircraft to park "nose-in" to the terminal building while maintaining short walking
distances from the airport entrance to the aircraft gate. In many respects, the linear and
curvilinear terminal concepts are mere extensions of the simple-unit terminal concept.
More sophisticated linear terminals, particularly those that serve high volumes of
passengers, often feature two level structures where enplaning passengers are
processed on one level and deplaning passengers on the other level. Passenger walking
distances from the "curb to the gate" are typically short, on the order of 100 feet. The
linear configuration also lends itself to the development of automobile parking that is
close to the terminal building, and provides extended curb frontage for loading and
unloading of ground transportation vehicles.

Figure 7.1: Terminal Design Concepts

94 One of the main disadvantages of linear terminals becomes evident as the length of the
Airline and Airport Organisation terminal building increases. Walking distances between facilities, particularly
distantly separated gates, become excessive for the passenger whose itinerary requires
a change in aircraft at the airport. Prior to airline deregulation the percentage of these
transfer passengers was insignificant. After 1978, however, this percentage increased
dramatically and the issue of long walking distances between gates became a major
issue, particularly at the hub airports.

7.2.3 Pier Finger Terminals

The pier finger terminal concept evolved in the 1950s when gate concourses were
added to simple unit terminal buildings. Concourses, known as piers or fingers,
offered the opportunity to maximize the number of aircraft parking spaces with less
infrastructure. Aircraft parking was assigned to both sides of a pier extending from the
original unit terminal structure. The pier finger terminal is the first of what are 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. Many airports today have pier finger terminals in use. Since the
earliest pier finger designs, very sophisticated and often convoluted forms of the
concept have been developed with the addition of hold rooms at gates, loading
bridges, and vertical separation of enplaning and deplaning passengers in the
main-unit terminal area. As pier finger terminals expanded, concourse lengths at many
terminal buildings became excessive, averaging 400 feet or more from the main
terminal to the concourse end. In addition, as terminals expanded by adding additional
piers, distances between gates and other facilities became not only excessive in
distance, but also confusing in direction. Moreover, often the main-unit terminal
facility and corridors connecting the individual fingers were not expanded along with
the construction of additional concourses, leading to passenger crowding in these
areas. Another of the disadvantages of pier finger terminals is that expansion of
terminals by adding or lengthening concourses may significantly reduce the amount of
apron space for aircraft parking and movement. Also, the addition of concourses to the
terminal tends to put constraints on the mobility of aircraft, particularly those that are
parked closer to the main terminal building.

7.2.4 Pier Satellite and Remote Satellite Terminals

Similar to pier finger terminals, pier satellite terminals formed as 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. Satellite terminal concepts, developed in the 1960s and 1970s,
took advantage of the ability to create either underground corridors or Automated
Passenger Movement Systems (APMS) to connect main terminal buildings with
concourses. Such terminals are said to be built on the remote satellite concept. The
main advantage of the remote satellite concept is that one or more satellite facilities
may be constructed and expanded when necessary while providing sufficient space for
aircraft taxi operations between the main terminal building and satellites. In addition,
although distances from the main terminal to a satellite may be quite large, APMs or
other people-mover systems such as moving walkways or shuttle buses are provided
to reduce walking distances. Another of the advantages of the satellite concept is that
it lends itself to a relatively compact central terminal with common areas for
processing passengers, because aircraft with large wingspans, which for all intents and
purposes dictate the size of terminal gate areas and thus concourses and satellite, are
parked at remote satellites rather than at the central facility. As with the pier finger
concept, the expansion of pier satellite and remote satellite concept terminals tend to
result in terminal facilities that not only have large distances between key points
within the terminal, but also often become confusing for passengers in their attempts 95
to find their way to their respective gates, baggage claim areas, or other desired Passenger’s Terminal Management
facilities.

7.2.5 Mobile Lounge or Transporter Concept

In 1962 the opening of Dulles International Airport west of Washington D.C.,
designed as the first airport specifically for the new jet aircraft of the day, introduced
the mobile lounge or transporter concept of airport terminals. Sometimes known also
as the remote aircraft parking concept, the Washington Dulles terminal area attempted
to maximize the number of aircraft that may be parked and maximize the number of
passengers that may be processed, with minimal concourse infrastructure. In this
concept, aircraft are parked at remote parking locations away from the main-unit
terminal building. 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. With the mobile lounge concept, walking
distances were held to a minimum because the main, relatively compact, terminal
building contains common passenger processing facilities, with automobile curbs and
parking located in close proximity to the terminal building entrances. Theoretically,
expansion to accommodate additional aircraft is facilitated by the fact that there is no
need to physically expand concourses, piers, or satellites, just merely add additional
mobile lounges, if necessary. Despite its theoretical advantages, the mobile lounge
concept did not on the whole win approval from passengers. Mobile lounge boarding
areas in the main terminal often became 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. Moreover, the relatively small mobile lounges
offered far less room for passengers than the aircraft from or to which they are
transitioning, especially in comparison to large "wide-body" aircraft introduced in the
late 1960s, leaving passengers crowded and often uncomfortable while on the mobile
lounge. In addition, mobile lounges require constant maintenance, which over time
becomes an excessive cost element of operations. In the mid-1990s Dulles in effect
abandoned the mobile lounge concept by constructing satellite or midfield concourses
on the airfield. Today (as of 2003), the remaining mobile lounges at Dulles Airport
still in service act as transporters merely between the main terminal building and the
satellite concourses rather than directly to aircraft. Current plans at Dulles call for
construction of an underground transporter between the main terminal and the remote
concourses and removing the mobile lounges from the terminal area entirely. In the
United States, no other airports have relied entirely on the mobile lounge concept for
their terminal areas, with the exception of providing shuttle bus services to aircraft
that must be parked in remote parking spots because of lack of available gate space at
the terminal building or concourses. In other countries, particularly in the Middle East,
the mobile lounge concept has been met with higher levels of success.

7.2.6 Hybrid Terminal Geometries

With the volatile changes in the amount and behaviour of civil aviation activity, with
increasing numbers of large aircraft (with high seating capacities and large
wingspans), volumes of passengers, and changes in route structures, particularly after
airline deregulation, 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 manner, leading to hybrid terminal
geometries incorporating features of two or more of the basic configurations.
In addition, for airports that accommodate an airline's hub, airport terminal planning
became necessary to accommodate up to 100 or more aircraft at one time and
efficiently handle record volumes of passengers, particularly those passengers
96 transferring between aircraft. It's no coincidence that during past years public
Airline and Airport Organisation sentiment for the planning and management of many airport terminals in the United
States was declining. Issues including congestion, long walking distances, confusing
directions, as well as limited amenities and passenger services became popular issues
of criticism. As a result, airport planners began to redevelop terminal area designs,
focusing on strategic planning and design of terminals that can accommodate
requirements of accessing ground vehicles, passengers, and aircraft, with sufficient
flexibility to adapt to ever-changing levels of growth and system behaviour.
Check Your Progress 1
Fill in the blanks:
1. The first facilities that could be remotely considered airport terminal areas
evolved in the early 1920s with the introduction of ……………………
2. Satellite terminal concepts, developed in the 1960s and 1970s, took
advantage of the ability to create either underground corridors or
…………………… to connect main terminal buildings with concourses.

7.3 AIRSIDE–LANDSIDE CONCEPT

The most significant terminal area concept to emerge involved a more physical
separation between facilities that handle passengers and ground vehicles and those that
deal primarily with aircraft handling. The airside – landside concept emerged with the
opening of the Tampa International Airport and has proliferated throughout the United
States at airports such as Pittsburgh International Airport and Orlando International
Airport. The airside–landside concept relies heavily on automated pedestrian
movement systems to quickly and efficiently shuttle passengers to and from two
separate facilities. In the landside facility, all passenger and baggage processing can
be performed without being physically close to an aircraft. In addition, sufficient
ancillary facilities, such as concessions, atriums, and the like, are located in landside
facilities to provide amenities to facilitate a pleasurable experience for the passenger.
Airside facilities, which have been built in various shapes and sizes, from X shapes to
long concourses, focus on the efficient servicing of aircraft, including fuelling,
loading, and unloading. Separating each of the two processes allows greater flexibility
in adapting to changes in either environment, whether it is new aircraft or changes in
passenger processing policies.

7.3.1 Off-airport Terminals

In the 1980s the airside – landside concept formed the basis for a series of
experimental concepts known as off-airport terminals. With the notion that certain
passenger processes, such as ticketing and baggage check-in, and certainly automobile
parking, did not need to be within any proximity of aircraft, such processes weren't
necessarily required to be performed on airport property. As a result, facilities located
miles away from the airport itself were introduced whereby passengers could park
their personal vehicles, check themselves and their baggage in for their flights, and
then take a shuttle bus to the airport. With the use of these off-airport terminals,
passengers would avoid the often significantly more crowded passenger processing
facilities at the main terminal. Also the passenger would not be required to find
parking at the often more crowded and expensive parking facilities at the main
terminal.
Off-airport terminals serving the San Francisco Bay Area, Los Angeles, and Las
Vegas were met with positive response, with increased passenger convenience being
the prime characteristic of the systems. Because of increased security measures
following the attacks of September 11, 2001, however, off-airport terminals have had 97
to discontinue any passenger or baggage check-in processes, and are now primarily Passenger’s Terminal Management
used merely as off-airport parking facilities. However, the off-airport terminal concept
set the precedent for implementing the idea of passenger processing at sites away from
the main airport terminal, setting the stage for the potential future of airport terminal
planning.

7.3.2 Present-day Airport Terminals

With over 650 million passengers travelling annually, each with different agendas,
itineraries, needs, and desires, airport terminals have become complex systems in their
own rights, incorporating both necessary passenger and baggage processing services
as well as a full spectrum of customer service, retail shopping, food and beverage, and
other facilities to make the passengers' transition between the airside and landside
components of the airport system as pleasant as possible. It is clear that no single
airport terminal configuration is best for all airports. The airfield, schedules of airlines,
types of aircraft, volumes of passengers, and local considerations, such as local
architecture, aesthetics, and civic pride, dictate different choices from airport to airport
and from one time to another. The airport terminal planner has the dubious task of
anticipating conditions up to 10 years in the future in an environment that seems to
change by the day. To ensure that present-day airport terminal plans will be effective
in the future, the airport planner must rely on the fundamental requirements of airport
terminals and behaviours of passengers, and also must plan with the idea of flexibility
in mind, such as considering facilities that can be expanded modularly or can provide
the opportunity for relatively low-cost, simple modifications that future circumstances
might demand. For airport management, airport terminal areas, when properly planned
and managed, have provided significant sources of revenue from airline leases to retail
concessions. Airport terminals have also become a sense of pride for communities in
general, as they are typically the first impression that visitors get of their destination
city and the last experience they get before leaving. Several airport terminals today
appear more to be shopping malls than passenger processing facilities, and other
airport terminals are fully equipped with hotels and conference centres. These
facilities have actually encouraged visitors to use the facilities at the airport without
ever intending to board an aircraft. The size and shape of airport terminal
configurations has both an uncertain yet exciting future. New security regulations
imposed by the Transportation Security Administration have established the need to
expand airport security facilities, whereas advances in information technologies have
suggested the ability to reduce the size of other passenger processing facilities such as
staffed ticket counters. No matter how policies, regulations, technologies, and
behaviours change, however, the basic function of the airport terminal area, that of
efficiently linking passengers and cargo to the airside and landside components of the
civil aviation system, should always be understood by airport managers and planners
alike.

7.4 COMPONENTS OF THE AIRPORT TERMINAL

The airport terminal area is in the unique position of accommodating the needs of both
aircraft and the passengers that board them. As such, the component systems of the
airport terminal area may be thought of as falling into two primary categories: the
apron and gate system, which is planned and managed according to the characteristics
of aircraft, and the passenger and baggage handling systems, which are planned and
managed to accommodate the needs of passengers and their baggage in their transition
to or from the aircraft.
98 7.4.1 Apron and Gate System
Airline and Airport Organisation
The apron and gates are the locations at which aircraft park to allow the loading and
unloading of passengers and cargo, as well as for aircraft servicing and pre-flight
preparation prior to entering the airfield and airspace. The size of aircraft, particularly
their lengths and wingspans, is perhaps the single greatest determinant of the area
required for individual gates and apron parking spaces. In fact, the grand size of
airport terminals is a direct result of large numbers of gates designed to accommodate
aircraft of wingspans reaching 200 feet in length. The size of any given aircraft
parking area is also determined by the orientation in which the aircraft will park,
known as the aircraft parking type. Aircraft may be positioned at various angles with
respect to the terminal building, may be attached to loading bridges or jetways, or may
be freestanding and adjoined with air stairs for passenger boarding and deplaning.
Some aircraft parking types require aircraft to be manoeuvred either in or out of their
parking spaces by the use of aircraft tugs, whereas other parking types allow the
movement of aircraft in and out under their own power. The five major aircraft
parking types are nose-in parking, angled nose-in, angled nose-out, parallel parking,
and remote parking.
Nose-in Parking: Most large jet aircraft at commercial service airports park nose-in to
gates at the terminal and connect directly to the terminal building by loading bridges.
Aircraft are able to enter nose-in parking spaces under their own power, and tend to be
pushed out by an aircraft tug and oriented so that they may move forward on the apron
without coming into contact with any other structures. The primary advantage to
nose-in parking is that it requires less physical space for aircraft than any other aircraft
parking type. The majority of commercial service airports, particularly those with
large volumes of jet aircraft operations, have primarily nose-in parking. With nose-in
parking, only the front-entry door on the aircraft is used for boarding, because the rear
doors are typically too far from the terminal building to extend a loading bridge. This
has some, but not an entirely significant, impact on the efficiency of passenger
boarding and deplaning.
Angled Nose-in Parking: It brings aircraft as close to the terminal building as possible
while maintaining enough manoeuvring room so that aircraft may exit the parking
space under its own power.
Angled nose-in parking is typically used by smaller aircraft, such as turboprops or
small regional jets. Air stairs are typically used to board and deplane passengers,
removing the necessity for loading bridges. Angled nose-in parking requires slightly
more parking area over nose-in parking for aircraft of similar size. However, because
smaller aircraft tend to use angled nose-in parking, the difference in sizes of the two
parking areas is not significantly different.
Angled Nose-out Parking: It brings aircraft slightly farther from the terminal building
than nose-in and angled nose-in parking, because the blast from jets or large propellers
has the potential of causing damage to terminal buildings if too close to the facility.
Angled nose-out parking is typically used by larger general aviation aircraft and at
facilities with relatively low levels of activity.
Parallel Parking: It is said to be the easiest to achieve from an aircraft manoeuvring
standpoint, although each space tends to require the largest amount of physical space
for a given size of aircraft. In this configuration, both front and aft doors of the aircraft
on a given side may be used for passenger boarding by loading bridges. Typically,
however, parallel parking is employed only by smaller general aviation aircraft with
relatively large amounts of parking space near the terminal building. In addition, cargo
aircraft may parallel park at their respective cargo terminals to facilitate the loading
and unloading of their respective loads.
Remote Parking: It may be employed when there is limited parking area available at 99
the terminal building itself or when aircraft parked may be stationed there overnight or Passenger’s Terminal Management
for longer durations. Remote parking areas are typically comprised of a series of rows
of parking spaces, sized to accommodate varying sizes of aircraft. Smaller commercial
and general aviation aircraft may be boarded and deplaned from the remote parking
areas with the use of shuttle buses or vans. Larger commercial aircraft are typically
taxied to a close-in parking space prior to passenger loading. Most airports have more
than one aircraft parking type to accommodate the various types of aircraft that serve
the different terminal geometries and air carrier or general aviation activities.
Furthermore, airports with a high number of based aircraft or air carrier aircraft that
remain overnight (RON) at the airport, must take into consideration higher volumes of
remote parking that is flexible to accommodate aircraft of various shapes and sizes.
Taxilanes are found on airport aprons to direct aircraft taxiing between airfield
taxiways and aircraft parking areas on the apron.
Taxilanes exist as single-lane taxiways, where there exists sufficient room for one
aircraft, and dual-lane taxiways, with sufficient room for two aircraft taxiing in
opposite directions to move simultaneously. Dual-lane taxilanes are typically found at
the busiest of airports serving larger aircraft.

7.4.2 Aircraft Gate Management

One of the most important and sometimes most challenging aspects of planning and
managing the apron concerns the number of aircraft parking areas, or gates, that are
required for efficient operations. The number of commercial aircraft gates required at
an airport, for example, over any given operating day is dependent on a series of
factors, including: the number and type of aircraft scheduled to use a gate, each
aircraft's scheduled turnaround time (also known as gate occupancy time), and the
type of gate usage agreement that each air carrier has with the airport. The number and
type of each aircraft scheduled to use a gate is of course vital to the planning of gate
facilities. For each type of aircraft that uses the airport, there should be at least one
aircraft parking area that can accommodate the aircraft. For smaller airports that are
frequented by larger aircraft on a sporadic basis, a remote parking facility with
sufficient space may be appropriate, whereas aircraft that operate more often should
be considered for their size when constructing permanent gate facilities. At many
airports, gates for larger aircraft are planned for the ends of linear terminals or satellite
configurations, where aircraft wingspans are accommodated with minimal sacrifice of
space for additional aircraft, and gates for smaller aircraft tend to be located nearer the
centre of the terminal. The turnaround time of each aircraft directly affects the number
of aircraft that can use a gate over the course of a day. Turnaround times of aircraft
vary widely, based in part on the size of aircraft, the itinerary of the aircraft, the
number of passengers, the volume of cargo to be loaded and unloaded, and the
schedules of the air carrier. Turnaround times of smaller commercial service aircraft
flying relatively short routes, carrying less than 50 passengers, for a regional airline,
for example, may be as low as 15 minutes, whereas wide-body aircraft flying on
international routes may require 3 or more hours turnaround time. As such, a gate
serving small regional air carrier aircraft gates may serve 30 or more aircraft in an
operating day, and gates serving international flights may accommodate only two or
three aircraft per day. The gate usage agreement that each air carrier has with airport
management also plays a significant role in the total number of required gates at the
airport terminal. The three most common types of gate usage agreements are
exclusive-use, shared-use, and preferential-use agreements. As the name implies,
under an exclusive-use agreement, an air carrier retains sole authority to use a
particular gate or set of gates at an airport terminal. This agreement gives the air
carrier flexibility when adjusting flight schedules, assuring the carrier that gates will
100 always be available when needed. Operationally, however, this type of agreement
Airline and Airport Organisation leads to inefficiencies in overall gate use, because when the air carrier is not currently
using its gates, the gate sits idle, despite the fact that another air carrier may desire a
gate parking space at that time. Air carriers signing exclusive-use agreements, usually
do so for a premium, and for a relatively long contract period, and thus are identified
typically as signatory carriers at the airport. Signatory carriers tend to have the
majority of operations at the airport, thus warranting exclusive-use agreements. Under
shared-use agreements, air carriers and other aircraft schedule use of gates in
coordination with airport management and other air carriers serving the airport. Thus
individual gates may be shared by multiple air carriers. Shared-use agreements are
usually arranged by air carriers that have relatively few operations scheduled at the
airport. For example, international air carriers tend to arrange shared-use agreements
with United States airports, because they each have perhaps only a few operations per
day at any given airport. For air carriers that have many operations at an airport,
shared-use agreements reduce the flexibility in schedule planning. From an airport
management perspective, however, shared-use agreements are operationally efficient,
maximizing the number of aircraft that may use gates over the course of a schedule
day.
Preferential-use agreements are hybrids of the exclusive-use and shared-use
agreements. Under a preferential-use agreement, one air carrier has preferential use of
the gate. However, should that air carrier not be using the gate during some period of
the day, other air carriers subscribing to the agreement may use the gate, as long as its
use does not interfere with upcoming operations from the preferential carrier.
Preferential-use agreements are typically signed by one carrier that has moderate
levels of service at the airport, and one or more carriers or charter aircraft that have
relatively few operations. From an operational perspective, the overall number of
aircraft utilizing gates under shared-use agreements depends primarily on the number
of operations served by, as well as the typical turnaround time of, the preferential
carrier. The greater number of operations and greater turnaround time of, the
preferential carrier tends to lead to fewer numbers of aircraft using the gates over the
course of an operating day.

7.4.3 Gantt Charts

The management and planning of gate utilization at airport terminals can be a
challenging venture, particularly when high volumes of operations occur during busy
or peak periods. One tool used to assist with the scheduling and management of gate
operations is a variation of a graphical scheduling management tool developed by
Henry Gantt in 1917. A Gantt chart (or ramp chart) is a graphical representation of the
utilization of aircraft gates over a given period of time. On the basis of each aircraft's
operating schedule and scheduled turnaround time, and on the basis of each gate's
gate-usage agreement, aircraft are allocated gate space, represented by rows on the
Gantt chart, during their projected gate utilization periods, represented by columns on
the chart. From plotting each aircraft's operation on the Gantt chart, terminal planners
and gate managers can visually identify inefficiencies in gate utilization and potential
conflicts, particularly during irregular operations, such as when an aircraft must stay at
the gate past its scheduled push back time because of unforeseen circumstances, or
when an aircraft arrives early to the airport.

7.5 DOMESTIC TERMINAL FEATURES

The passenger building is obviously the main point of attention to the travelling
public. It is the design of the terminal building which more than often determines the
airport managements’ efficiency and capability in the eyes of the public.
The passenger building is the major connection between airport access and the 101
aircraft. The purposes of the passenger building are to: Passenger’s Terminal Management

1. Interface with the passenger mode of aircraft access

2. Process departing and arriving passengers
3. Convey the passenger to and from the aircraft
These three components could be discussed as access interface, processing and flight
interface respectively. What are the considerations which influence the design of the
passenger terminal? Airport Management and airlines agree that the most important
person in the terminal building is the passenger, whether in transit, departing or
arriving.
Experience in the use of airport building has made certain overall requirements and
planning principles which should be considered. These are:
1. Building should be functional, simple in design and structure, economical to main
and capable of expansion without major structural changes. It is better to build in
progressive stages to that all airport operations many continue to grow
architectural design while the buildings are in use. This is a very important
consideration. It is well known tat in recent years in the oil producing countries,
terminal building have been built as architectural monuments at enormous cost.
What is accepted, no doubt, is the needs to have outstanding architectural design,
which blends harmoniously both the natural/traditional architectural design and
contemporary architecture more suited to passenger services.
2. There should be a clear cut functional separation between the airline and other
concerned operational facilities and those elements are directly related thereto. It
is important maintain a functional separation between the two major types of
facilities in an airport i.e. those for aviation activities and those for non-aviation
activities, and facilities for the general public.
3. Public services/facilities should be closely related to the airport passenger
handling area and should be readily accessible to each of its parts.
In large airports with decentralized terminals public services may also have to be
decentralized in order to:
z Reduce the average distance a passenger must walk to reach such services;
z Make more services available to passengers;
z Reduce the time interval required to reach and use such services; and
z The travel distance between ground transportation and aircraft should be kept at
minimum distance. The size of the ultimate development of the airport,
particularly within the administrative and terminal building area will determine
whether the general plan is to be centralized or decentralized.
The components of the passenger-handling-together with the specific physical
facilities corresponding to them may be seen in Figure 7.2.
The facilities that a passenger required are provision of sufficient space in the building
for restaurants, snack bars, shopping arcade, toilet, adequate space for expeditious
facilitation of arriving and departing by international flight through immigration and
customs.
102
Airline and Airport Organisation

Figure 7.2: Components of the Passenger Handling System

Passenger Terminal Concepts

What should be the concept of a passenger terminal? There has been a considerable
debate on it. Two concepts of terminal designs have been developed, namely
centralized and decentralized terminal. While deciding which of the concepts will suit
a particular airport, the economics and suitability of the terminal in terms of the total
area, manpower utilization and the convenience available to the passenger and airlines
have to be examined.

Centralized Terminal
In a centralized terminal concept, one single interface building, situated between
landside and airside serves all aircrafts respective of their size and number. All
diversified functions of a terminal are controller in one area. Expansion of facilities
necessitated with the growth of traffic can be incorporated easily without duplicating
them. The separate expansion of apron and terminal areas is possible in this concept
without much inconvenience.
The centralized concept has a major drawback in its ever increasing walking distances
for the passengers between the aircraft and the terminal building. However this defect
has been overcome in a centralized type of terminal like Dulles International Airport,
Washington, which has no fingers or satellites, but only a terminal building and large
remote parking apron. Passengers are transported between the two points in special
vehicle known as ‘mobile lounges.’ This type of terminal concept has been adopted in
the new Montreal International Airport at Mirabelle, and the Jeddah Airport in Saudi
Arabia.

Decentralised Terminal
In a decentralized concept, the functional requirement of a fewer number of aircraft;
say 4 to 6, at a time are handled in one common facility. When the number of aircraft
increases, a series of modules are developed to meet the requirements. This
development of modules, instead of one large single terminal is known as the
decentralized concept.
The decentralized or modular concept permits better provision of passenger 103
convenience. It manages to keep walking distances short and size of the facilities to Passenger’s Terminal Management
‘human scale’. However the public conveniences in the decentralized concept require
a certain degree of duplication in staffing and inventory. The airport authorities in
such cases have to take a policy decision on the extent to which they desire to cater to
public conveniences. This is an important factor of terminal designing that the airport
terminal manager must decide.
The development of finger type terminal and satellite terminal are variations of the
centralized and decentralized concepts. The most recent examples of decentralized
terminal are at Dallas/Fortworth in Texas (USA); Charles de Gaulle in Paris (France)
and the fabulous Atlanta in USA. Built at a cost of US Dollar 500 million and built at
located in an Area of 3750 acres, the newly opened Atlanta Airport pushed the outer
limits of technology and ranks at the very top of the new generation airports.
The design for the complex was refined for over more than a decade to fulfill two
basic requirements – to provide the most convenience and pleasant accommodation
for its passengers three quarters of whom change planes in Atlanta and to create the
most efficient operating conditions for all the airlines. The four boarding concourses
which are separated by the main terminal concourses are connected by a superb,
automatic rapid transit system that takes passenger between the terminal and the
farthest concourse in less than five minutes.

7.6 INTERNATIONAL TERMINAL MANAGEMENT

Terminal 3, an integrated future terminal and a state-of-art, which was opened in 2010
is the eighth largest passenger terminal and twenty-fourth largest building in the
world. It is spread over an area of 540,000 m2 (5,800,000 sq ft), with a capacity to
handle thirty-six million passengers every year.
The new Terminal 3 is a two-tier building that occupies an area of thirty acres
(twelve ha), with the top being a departures area and the bottom floor being the
arrivals area. The features of this terminal comprise of 240 check-in counters,
78 aerobridges at 65 contact stands, 54 parking bays, 96 immigration counters,
15 X-ray screening areas, for less waiting times, duty-free shops, and many more.
The terminal when completed will be used by over 90% of passengers. This new
terminal had been completed in time for the 2010 Commonwealth Games, which were
held in Delhi, and will be connected to Delhi by an eight-lane motorway (National
Highway 8), and the Delhi Mass Rapid Transit System. An official inauguration of
terminal was done on 3 July 2010, and there were 9 flights to test the operational
preparation of the new terminal and its proficiencies in terms of ground handling.
During the late july 2010, all international airlines shifted their operations to the new
terminal, and by mid November all full service domestic carriers shifted their
operations to the new terminal. The arrivals is equipped with 18 baggage carousels.
T3 has India's first automated parking management and guidance system in a multi
level car park, which comprises seven levels and a capacity of 6300 cars.
Terminal 3 will form the first phase of the airport expansion in which a 'U' shaped
building will be developed in a modular manner. Terminal 3 was used by all full
service domestic and international carriers from the year 2010 while low cost
operations were carried from Terminal 1. The low cost carriers will also move to the
new terminal complex at later stages.
The much awaited go ahead for the domestic airlines to start operations from the new
T3 terminal has been given. After passing many hurdles and from 11 November 2010
Air India which is also the national carrier started its domestic operations from the
104 new T3 terminal. On 14 November 2010, Kingfisher Airlines and Jet Airways , moved
Airline and Airport Organisation their domestic operations to the new terminal. Terminal 1D is now used exclusively
by low cost carrier airlines including GoAir.

7.7 CARGO TERMINAL

Less than 1 per cent of all freight tonnage is carried by air. Nonetheless, this statistic
significantly underestimates the importance of air freight because, in value of cargo
moved, air transport dominates all other modes. For example, although Heathrow
Airport handles less than three-quarters of a million tons of freight per year, in value
of throughput it ranks as Britain’s premier port. By the early 1990s, Tokyo’s Narita
Airport, New York’s John F. Kennedy, and Frankfurt International Airport handled in
excess of one million tons of cargo per year. As is the case with passenger facilities,
freight terminals vary greatly in the volumes of material handled. Consequently, the
scale of the building facilities and the nature of the handling methods also vary.
Because only 10 per cent of air cargo is carried loose or in bulk, all modern air-cargo
facilities are designed to handle containers. In countries where labour is cheap and
where freight throughputs at the terminal are not high, freight-handling systems can
still be economically designed around the manhandling concept. This is not feasible in
developed countries, where labour costs are high. Even at facilities with small
throughputs, freight is moved by mobile mechanical equipment such as stackers, tugs,
and forklift trucks. At high volume facilities, a mixture of mobile equipment and
complex fixed stacking and movement systems must be used. The fixed systems,
which require complex engineering design and maintenance, are known as Transfer
Vehicles (TVs) and Elevating Transfer Vehicles (ETVs).
In the design of air-cargo facilities, special attention must be given to the handling of
very heavy and oversized freight, perishables, urgent materials such as serums and
human donor organs, high value goods such as diamonds and gold, hazardous goods,
and livestock.

7.7.1 Airfield Pavements

Airfield pavements are of two types:
1. Rigid: Rigid pavements are constructed of Portland cement concrete slabs resting
on a prepared sub base of granular material or directly on a granular subgrade.
Load is transmitted through the slabs to the underlying subgrade by flexure of the
slabs.
2. Flexible: Flexible pavements are constructed of several thicknesses of asphalt or
bituminous concrete layers overlying a base of granular material on a prepared
subgrade. They spread the concentrated aircraft wheel loads throughout their
depth until the load at the base of the pavement is less than the strength of the in
situ soil.
At all depths, the strength of the pavement should be at least equal to the loads placed
upon it by aircraft wheels. The choice of pavement type is often determined by
economics. In some parts of the world, Portland cement concrete is cheaper than
asphalt; in other parts, the converse is true.
For certain parts of the airfield, however, asphaltic concrete is an unsuitable material
for pavement construction because of its vulnerability to damage by aviation fuel.
Therefore, even at airports where flexible airfield pavements are generally in use, it is
usual for concrete pavements to be used where aircraft stand on the aprons and at
runway ends where fuel spillage is frequent.
 Check Your Progress 2 105
Passenger’s Terminal Management
Fill in the blanks:
1. The …………………………… emerged with the opening of the Tampa
International Airport.
2. In the 1980s, the airside – landside concept formed the basis for a series
of experimental concepts known as ………………………………

7.8 LET US SUM UP

An airport terminal is a building at an airport where passengers transfer between
ground transportation and the facilities that allow them to board and disembark from
aircraft. Within the terminal, passengers purchase tickets, transfer their luggage, and
go through security. The buildings that provide access to the airplanes (via gates) are
typically called concourses. However, the terms "terminal" and "concourse" are
sometimes used interchangeably, depending on the configuration of the airport.
Different passenger terminal include centralised terminal and decentralised.

7.9 LESSON END ACTIVITY

Visit an Airport and analyse the different ways under which the passengers are
categorized while travelling through airport terminals.

7.10 KEYWORDS
Unit Terminal Concepts: These first terminals were the earliest centralized facilities,
centralized meaning that all passenger processing facilities at the airport are housed in
one building.
Airside–Landside Concept: The most significant terminal area concept to emerge
involved a more physical separation between facilities that handle passengers and
ground vehicles and those that deal primarily with aircraft handling.
Remote Parking: It is employed when there is limited parking area available at the
terminal building itself or when aircraft parked may be stationed there overnight or for
longer durations.

7.11 QUESTIONS FOR DISCUSSION

1. Discuss the different components of airport terminal.
2. Explain the unit and linear terminal concepts.
3. Explain the tools used to assist with the scheduling and management of gate
operations.
4. What are the advantages and disadvantages of each type of airport terminal
geometry?
5. What is the mobile lounge concept?
6. What are off-airport terminals? What potential do they have in the future of
airport terminals?
7. Explain the cargo terminal.
106
Airline and Airport Organisation Check Your Progress: Model Answers
CYP 1
1. Airmail services
2. Automated passenger movement system

CYP 2
1. Airside landside concept
2. off airport terminals

7.12 SUGGESTED READINGS

Jaroslav J. Hajek, Jim W. Hall, David K. Hein, (2011), Common Airport Pavement
Maintenance Practices, Transportation Research Board
Manuel Ayres (Jr.), (2007), Safety Management Systems for Airports: Guidebook,
Transportation Research Board
Antonín Kazda, Robert E. Caves, (2007), Airport Design and Operation, Emerald
Group Publishing
Knippenberger, Ute, (2010), Airports in Cities and Regions: Research and Practise;
1st International Colloquium on Airports and Spatial Development, Karlsruhe, KIT
Scientific Publishing
 107
LESSON Flight Safety and
Airside Management

8
FLIGHT SAFETY AND AIRSIDE MANAGEMENT

CONTENTS
8.0 Aims and Objectives
8.1 Introduction
8.2 Flight Safety – Concept
8.3 Need for Safety Management
8.4 ICAO Requirements
8.5 Acceptable Level of Safety
8.6 Examples of Implementation
8.6.1 State Safety Programme
8.6.2 Airline Operator SMS
8.6.3 Service Provider and Aerodrome Operator SMS
8.7 Approaches to Safety Management
8.7.1 Traditional Perspective
8.7.2 Modern Perspective
8.7.3 Safety Oversight
8.8 Accidents versus Incidents
8.9 Aircraft Operations
8.9.1 Hazard and Incident Reporting
8.9.2 Flight Data Analysis (FDA) Programme
8.9.3 Line Operations Safety Audit (LOSA) Programme
8.9.4 Cabin Safety Programme
8.10 Airside Management
8.10.1 Airport Ramp or Aprons
8.11 Let us Sum up
8.12 Lesson End Activity
8.13 Keywords
8.14 Questions for Discussion
8.15 Suggested Readings

8.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concept of flight safety
z Discuss the need for safety management
108 z Know acceptable level of safety
Airline and Airport Organisation
z Explain airside management

8.1 INTRODUCTION
Aviation is remarkable for the giant technological leaps it has made over the last
century. This progress would not have been possible without parallel achievements in
the control and reduction of aviation's safety hazards. Given the many ways that
aviation can result in injury or harm, those involved with aviation have been
preoccupied with preventing accidents since the earliest days of flying. Through the
disciplined application of best safety management practices, the frequency and
severity of aviation occurrences have declined significantly.

8.2 FLIGHT SAFETY – CONCEPT

In order to understand safety management, it is necessary to consider what is meant by
"safety". Depending on one's perspective, the concept of aviation safety may have
different connotations, such as:
(a) Zero accidents (or serious incidents), a view widely held by the travelling public;
(b) The freedom from danger or risks, i.e. those factors which cause or are likely to
cause harm;
(c) The attitude towards unsafe acts and conditions by employees (reflecting a "safe"
corporate culture);
(d) The degree to which the inherent risks in aviation are "acceptable";
(e) The process of hazard identification and risk management; and
(f) The control of accidental loss (of persons and property, and damage to the
environment).
While the elimination of accidents (and serious incidents) would be desirable, a one
hundred per cent safety rate is an unachievable goal. Failures and errors will occur, in
spite of the best efforts to avoid them. No human activity or human-made system can
be guaranteed to be absolutely safe, i.e. free from risk. Safety is a relative notion
whereby inherent risks are acceptable in a "safe" system.
Safety can be defined as below:
“Safety is the state in which the risk of harm to persons or of property damage is
reduced to, and maintained at or below, an acceptable level through a continuing
process of hazard identification and risk management.”

8.3 NEED FOR SAFETY MANAGEMENT

Although major air disasters are rare events, less catastrophic accidents and a whole
range of incidents occur more frequently. These lesser safety events may be
forerunners of underlying safety problems. Ignoring these underlying safety hazards
could pave the way for an increase in the number of more serious accidents. Accidents
(and incidents) cost money. Although purchasing "insurance" can spread the costs of
an accident over time, accidents make bad business sense. While insurance may cover
specified risks, there are many uninsured costs. In addition, there are less tangible
(but no less important) costs such as the loss of confidence of the travelling public.
An understanding of the total costs of an accident is fundamental to understanding
the economics of safety. The air transportation industry's future viability may well be
predicated on its ability to sustain the public's perceived safety while travelling. The 109
management of safety is therefore a prerequisite for a sustainable aviation business. Flight Safety and
Airside Management

8.4 ICAO REQUIREMENTS

Safety has always been the overriding consideration in all aviation activities. This is
reflected in the aims and objectives of ICAO as stated in Article 44 of the Convention
on International Civil Aviation (Doc 7300), commonly known as the Chicago
Convention, which charges ICAO with ensuring the safe and orderly growth of
international civil aviation throughout the world. In establishing States' requirements
for the management of safety, ICAO differentiates between safety programmes and
Safety Management Systems (SMS) as follows:
z A safety programme is an integrated set of regulations and activities aimed at
improving safety.
z A safety management system is an organized approach to managing safety,
including the necessary organizational structures, accountabilities, policies and
procedures.
A safety programme will be broad in scope, including many safety activities aimed at
fulfilling the programme's objectives. The safety programme may include provisions
for such diverse activities as incident reporting, safety investigations, safety audits and
safety promotion.
Therefore, in accordance with the provisions of ICAO Annexes 6, 11 and 14, States
shall require that individual operators, maintenance organizations, ATS providers and
certified aerodrome operators implement SMS accepted by the State. As a minimum,
such SMS shall
(a) identify safety hazards;
(b) ensure that remedial actions necessary to mitigate the risks/hazards are
implemented; and
(c) provide for continuous monitoring and regular assessment of the safety level
achieved.
An organization's SMS accepted by the State shall also clearly define lines of safety
accountability, including a direct accountability for safety on the part of senior
management. ICAO provides specialized guidance material, including the manual for
Safety Management System (ICAO DOC 9859), for the fulfilment of the SARPs. This
manual includes a conceptual framework for managing safety and establishing an
SMS as well as some of the systemic processes and activities used to meet the
objectives of a State's safety programme.

8.5 ACCEPTABLE LEVEL OF SAFETY

In any system, it is necessary to set and measure performance outcomes in order to
determine whether the system is operating in accordance with expectations, and to
identify where action may be required to enhance performance levels to meet these
expectations. The introduction of the concept of acceptable level of safety responds to
the need to complement the prevailing approach to the management of safety based
upon regulatory compliance, with a performance-based approach. Acceptable level of
safety expresses the safety goals (or expectations) of an oversight authority, an
operator or a service provider. It is a reference against which the oversight authority
can measure safety performance. In determining an acceptable level of safety, it is
necessary to consider such factors as the level of risk that applies the cost/benefits of
110 improvements to the system, and public expectations on the safety of the aviation
Airline and Airport Organisation industry. In practice, the concept of acceptable level of safety is expressed by two
measures/metrics (safety performance indicators and safety performance targets) and
implemented through various safety requirements.
z Safety performance indicators are a measure of the safety performance of an
aviation organization or a sector of the industry. Safety indicators should be easy
to measure and be linked to the major components of a State's safety programme,
or an operator's/service provider's SMS. Safety indicators will therefore differ
between segments of the aviation industry, such as aircraft operators, aerodrome
operators or ATS providers.
z Safety performance targets (sometimes referred to as goals or objectives) are
determined by considering what safety performance levels are desirable and
realistic for individual operators/service providers. Safety targets should be
measurable, acceptable to stakeholders, and consistent with the State's safety
programme.
z Safety requirements are needed to achieve the safety performance indicators and
safety performance targets. They include the operational procedures, technology,
systems and programmes to which measures of reliability, availability,
performance and/or accuracy can be specified.
The relationship between acceptable level of safety, safety performance indicators,
safety performance targets and safety requirements is as follows:
z Acceptable level of safety is the overarching concept;
z Safety performance indicators are the measures/metrics used to determine if the
acceptable level of safety has been achieved;
z Safety performance targets are the quantified objectives pertinent to the
acceptable level of safety; and
z Safety requirements are the tools or means required to achieve the safety targets.
Safety indicators and safety targets may be different (for example, the safety indicator
is 0.5 fatal accidents per 100,000 hours for airline operators, and the safety target is a
40 per cent reduction in fatal accident rate for airline operations), or they may be the
same (for example, the safety indicator is 0.5 fatal accidents per 100,000 hours for
airline operators, and the safety target is not more than 0.5 fatal accidents per 100,000
hours for airline operators). Establishing acceptable level(s) of safety for the safety
programme does not replace legal, regulatory, or other established requirements, nor
does it relieve States from their obligations regarding the Convention on International
Civil Aviation (Doc 7300) and its related provisions. Likewise, establishing
acceptable level(s) of safety for the SMS does not relieve operators/service providers
from their obligations under relevant national regulations, and those arising from the
Doc 7300.

8.6 EXAMPLES OF IMPLEMENTATION

Some examples have been given below:

8.6.1 State Safety Programme

An oversight authority establishes an acceptable level of safety to be achieved by its
safety programme that will be expressed by:
(a) 0.5 fatal accidents per 100,000 hours for airline operators (safety indicator) with a
40 per cent reduction in five years (safety target);
(b) 50 aircraft incidents per 100,000 hours flown (safety indicator) with a 25 per cent 111
reduction in three years (safety target); Flight Safety and
Airside Management
(c) 200 major aircraft defect incidents per 100,000 hours flown (safety indicator) with
a 25 per cent reduction over the last three-year average (safety target);
(d) 1.0 bird strike per 1000 aircraft movements (safety indicator) with a 50 per cent
reduction in five years (safety target);
(e) No more than one runway incursion per 40,000 aircraft movements (safety
indicator) with a 40 per cent reduction in a 12-month period (safety target); and
(f) 40 airspace incidents per 100,000 hours flown (safety indicator) with a 30 per cent
reduction over the five-year moving average (safety target). The safety
requirements to achieve these safety targets and safety indicators include:
(a) the oversight authority accident prevention programme;
(b) a mandatory occurrence reporting system;
(c) a voluntary occurrence reporting system;
(d) a bird strike programme; and
(e) the deployment of radar systems in the State's three busiest airports within the
next 12 months.

8.6.2 Airline Operator SMS

An oversight authority and an airline operator agree on an acceptable level of safety to
be achieved by the operator SMS, one measure of which – but not the only one – is
0.5 fatal accidents per 100,000 departures (safety indicator); a 40 per cent reduction in
five years (safety target) and – among others – the development of GPS approaches
for airfields without ILS approaches (safety requirement).

8.6.3 Service Provider and Aerodrome Operator SMS

An oversight authority, an ATS provider and an aerodrome operator agree on an
acceptable level of safety to be achieved by the provider and operator SMS, one
element of which – but not the only one – is no more than one runway incursion per
40,000 aircraft movements (safety indicator); a 40 per cent reduction in a 12 month
period (safety target) and – among others – the establishment of low visibility taxi
procedures (safety requirement).

8.7 APPROACHES TO SAFETY MANAGEMENT

With global aviation activity forecast to continue to rise, there is concern that
traditional methods for reducing risks to an acceptable level may not be sufficient.
New methods for understanding and managing safety are therefore evolving. Safety
management may therefore be considered from two different perspectives – traditional
and modern.

8.7.1 Traditional Perspective

Historically, aviation safety focused on compliance with increasingly complex
regulatory requirements. This approach worked well up until the late 1970s when the
accident rate levelled off. Accidents continued to occur in spite of all the rules and
regulations. This approach to safety reacted to undesirable events by prescribing
measures to prevent recurrence. Rather than defining best practices or desired
standards, such an approach aimed at ensuring minimum standards was met. With an
overall fatal accident rate in the vicinity of 10-6 (i.e. one fatal accident per one million
112 flights), further safety improvements were becoming increasingly difficult to achieve
Airline and Airport Organisation using this approach.

8.7.2 Modern Perspective

Strategies to reduce or eliminate the hazards are then developed and implemented with
clearly established accountabilities. The situation is reassessed on a continuing basis,
and additional measures are implemented as required. The steps of the safety
management process outlined in Figure 8.1 are briefly described below:
(a) Collect the data.
(b) Analyse the data.
(c) Prioritize the unsafe conditions.
(d) Develop strategies. It may include:
1. Spread the risk across as large a base of risk-takers as practicable. (This is the
basis of insurance.)
2. Eliminate the risk entirely (possibly by ceasing that operation or practice).
3. Accept the risk and continue operations unchanged.
4. Mitigate the risk by implementing measures to reduce the risk or at least
facilitate coping with the risk. When selecting a risk management strategy,
care is required to avoid introducing new risks that result in an unacceptable
level of safety.

Figure 8.1: Safety Management Process

(e) Approve strategies.
(f) Assign responsibilities.
(g) Implement strategies.
(h) Re-evaluate situation. 113
Flight Safety and
(i) Collect additional data. Airside Management

Safety management requires analytical skills that may not be routinely practiced by
management. The more complex the analysis, the more important the need for the
application of the most appropriate analytical tools is. The closed loop process of
safety management also requires feedback to ensure that management can test the
validity of its decisions and assess the effectiveness of their implementation.

8.7.3 Safety Oversight

The term safety oversight refers to the activities of a State under its safety programme,
while safety performance monitoring refers to the activities of an operator or service
provider under its SMS. Safety oversight or safety performance monitoring activities
are an essential component of an organization's safety management strategy. Safety
oversight provides the means by which a State can verify how well the aviation
industry is fulfilling its safety objectives. Some of the requirements for a safety
performance monitoring system will already be in place in many organizations. For
example, States would normally have regulations relating to mandatory reporting of
accidents and incidents. In order to keep safety risks at an acceptable level with the
increasing levels of activity, modern safety management practices are shifting from a
purely reactive to a more proactive mode. No single element will meet today's
expectations for risk management. Rather, an integrated application of most of these
elements will increase the aviation system's resistance to unsafe acts and conditions.
However, even with effective safety management processes, there are no guarantees
that all accidents can be prevented. Even where the risk is classed as acceptable
(tolerable), if any measures that could result in the further reduction of the risk are
identified, and these measures require little effort or resources to implement, then they
should be implemented.

Figure 8.2: Tolerability of Risk (TOR) Triangle

The acronym ALARP is used to describe a risk that has been reduced to a level that is
as low as reasonably practicable. In determining what is "reasonably practicable" in
this context, consideration should be given to both the technical feasibility of further
114 reducing the risk, and the cost; this could include a cost benefit study. Showing that
Airline and Airport Organisation the risk in a system is ALARP means that any further risk reduction is either
impracticable or grossly outweighed by the costs. It should, however, be borne in
mind that when an individual or society "accepts" a risk, this does not mean that the
Aviation Safety & Security Management risk is eliminated. Some level of risk
remains; however, the individual or society has accepted that the residual risk is
sufficiently low that it is outweighed by the benefits. These concepts are illustrated
diagrammatically in the Tolerability of Risk (TOR) triangle in Figure 8.2. (In this
figure, the degree of risk is represented by the width of the triangle.)

8.8 ACCIDENTS VERSUS INCIDENTS

An accident is an occurrence during the operation of an aircraft which entails:
1. a fatality or serious injury;
2. substantial damage to the aircraft involving structural failure or requiring major
repair; or
3. the aircraft is missing or is completely inaccessible.
An incident is an occurrence, other than an accident, associated with the operation of
an aircraft which affects or could affect the safety of operation. A serious incident is
an incident involving circumstances indicating that an accident nearly occurred.

1:600 Rule
Research into industrial safety in 1969 indicated that for every 600 reported
occurrences with no injury or damage, there were some:
z 30 incidents involving property damage;
z 10 accidents involving serious injuries; and
z 1 major or fatal injury.
The 1-10-30-600 ratio shown in Figure 8.3 is indicative of a wasted opportunity if
investigative efforts are focused only on those rare occurrences where there is serious
injury or significant damage.

Figure 8.3: 1:600 Rule

The factors contributing to such accidents may be present in hundreds of incidents and 115
could be identified before serious injury or damage ensues. Effective safety Flight Safety and
Airside Management
management requires that staff and management identify and analyse hazards before
they result in accidents.
Check Your Progress 1
Fill in the blanks:
1. …………………….. provides specialized guidance material, including
the manual for Safety Management System (ICAO DOC 9859), for the
fulfilment of the SARPs.
2. The term …………………… refers to the activities of a State under its
safety programme, while safety performance monitoring refers to the
activities of an operator or service provider under its SMS.

8.9 AIRCRAFT OPERATIONS

ICAO requires States to establish a safety programme in order to achieve an
acceptable level of safety in the operation of aircraft. As part of their safety
programme, States require operators to implement an accepted Safety Management
System (SMS). An SMS allows operators to integrate their diverse safety activities
into a coherent system. Examples of safety activities that might be integrated into an
operator's SMS include:
(a) Hazard and incident reporting;
(b) Flight Data Analysis (FDA);
(c) Line Operations Safety Audit (LOSA); and
(d) Cabin safety.

8.9.1 Hazard and Incident Reporting

The principles and operation of successful incident reporting systems have been
established. Nowadays, many operators have made this commitment to safety and, as
a result, benefited not only from improved hazard identification but also from
improved efficiencies in flight operations.

Benefits
Incident reporting systems are one of an operator's most effective tools for proactive
hazard identification, a key element of effective safety management. Policies,
procedures and practices developed within an organization sometimes introduce
unforeseen hazards into aircraft operations. These latent conditions (hazards) may lie
dormant for years. They are usually introduced unknowingly, often with the best of
intentions. Examples include poor equipment design, inappropriate management
decisions, ambiguously written procedures and inadequate communication between
management and line personnel. Line management can also introduce such hazards by
instituting operating procedures that do not work as intended under "real world"
conditions. In short, hazards may have their origins far removed in space and time
from the incidents that may eventually result from them. An accident or incident may
not result from these hazards immediately because "front-line personnel" (whether
they be pilots, ATCOs or AMEs) often develop ways of coping with the hazard –
sometimes described as "workarounds". However, if the hazards are not identified and
addressed, sooner or later the coping mechanisms fail and an accident or incident
ensues. A properly managed in-house reporting system can help companies identify
116 many of these hazards. By collecting, aggregating and then analysing hazard and
Airline and Airport Organisation incident reports, safety managers can better understand problems encountered during
operations. Armed with this knowledge, they can initiate systemic solutions, rather
than short-term fixes that may only hide the real problems.

Encouraging the Free Flow of Safety Information

The trust of employees in the incident reporting system is fundamental to the quality,
accuracy and substance of data reported. If hazard and incident data are collected in a
corporate atmosphere where employees feel free to openly share safety information,
the data will contain much useful detail. Since it will represent the actual environment,
it will be helpful in determining contributing factors and areas of safety concern.
On the other hand, if the company uses incident reports for disciplinary purposes, the
company incident reporting system will only receive the minimum information
required to comply with company rules. Little useful information from a safety
perspective could be expected.
The trust necessary for the free flow of safety information is very fragile. It may take
years to establish; yet, one breach of that trust may undermine the effectiveness of the
system for a long time. To be effective, as a minimum, an operator's reporting
programme should include hazard and incident reports from flight operations
personnel, AMEs and cabin crew.

8.9.2 Flight Data Analysis (FDA) Programme

Flight Data Analysis programmes, sometimes referred to as Flight Data Monitoring
(FDM), or Flight Operations Quality Assurance (FOQA), provide another tool for the
proactive identification of hazards. FDA is a logical complement to hazard and
incident reporting and to LOSA.

8.9.3 Line Operations Safety Audit (LOSA) Programme

As has been discussed earlier, the negative consequences of human behaviour can be
proactively managed. Hazards can be identified, analysed and validated based on data
collected through the monitoring of day-to-day operations. Line Operations Safety
Audits is one method for monitoring normal flight operations for safety purposes.
LOSA programmes then provide another proactive safety management tool.
ICAO endorses LOSA as a way to monitor normal flight operations.

8.9.4 Cabin Safety Programme

Cabin safety is aimed at minimizing risks to the occupants of the aircraft. By reducing
or eliminating hazards with the potential for creating injuries or causing damage, cabin
safety focuses on providing a safer environment for the occupants of the aircraft.
The range of threats to the aircraft and its occupants include:
(a) In-flight turbulence;
(b) Smoke or fire in the cabin;
(c) Decompression;
(d) Emergency landings;
(e) Emergency evacuations; and
(f) Unruly passengers.
The work environment and working conditions for cabin crew are influenced by a 117
diverse set of human performance issues that may affect how cabin crew respond to Flight Safety and
Airside Management
threats, errors and other undesirable situations. The cabin crew are usually the only
company representatives that passengers see while in the aircraft. From the
passengers' perspective, the cabin crew are there to provide in-flight service. From a
regulatory and operational perspective, cabin crew are on board to manage adverse
situations that may develop in the aircraft cabin and to provide direction and
assistance to passengers during an emergency.

Cabin Safety Standards

Safety inspections, safety surveys and safety audits are tools that can be used to ensure
that requisite cabin safety standards are being maintained. Once an operator is
certificated, cabin safety standards may be confirmed through an ongoing programme
of:
(a) aircraft inspections (e.g. emergency exits, emergency equipment, and galleys);
(b) pre-flight (ramp) inspections;
(c) in-flight cabin inspections (e.g. passenger briefings and demonstrations, crew
briefings and use of checklists, crew communications, discipline, and situational
awareness);
(d) training inspections (e.g. facilities, quality of instruction, and records); and
(e) base inspections (e.g. crew scheduling, dispatch, safety incident reporting and
response), etc.
A company's internal safety audit programme should include the cabin crew
department. The audit process should include a review of all cabin operations, as well
as an audit of cabin safety procedures, training, the cabin crew's operating manual, etc.

8.10 AIRSIDE MANAGEMENT

Airside management overviews the functions of runway, apron and taxiway, gate
management, vehicular discipline and allocation of aircraft in the terminal
Responsibility under airside management purview include:
(a) Allocation of aircraft stands and baggage claim belts
(b) Testing and issuance of airside driving and vehicular permits safety inspections,
response to accidents, audits to mitigate unsafe work practices, wildlife hazards
management and monitoring of obstacles limitation surfaces.

8.10.1 Airport Ramp or Aprons

Area where an aircraft is parked is known as airport ramp or apron. Strict regulation
covers the use of aprons Access to aprons is not open to general public Word apron
and ramp is often used interchangeably. On the ramp free side activities are completed
and areas for maintenance and parking are called aprons. Main feature of terminal
ramp is passenger gates. Apron traffic includes all vehicles, aircraft and the people
using apron.
Apron are usually designed to meet following requirements (Kazda and caves, 2000):
1. Support the safe guidance of aircraft to assigned position.
2. Aircraft should be able to move independently from each other.
3. Shortest possible distance between taxiways stands.
118 4. Quick aircraft turnaround should be possible.
Airline and Airport Organisation
5. Sufficient number of ramps and stands to cope with aircraft handling in peak
times.
6. Neighbouring stands/ramps should be designed to adequately dispatch adjacent
aircraft without interfering each other’s operations.
7. Quick aircraft turnaround should be possible.
8. Aprons should provide enough space for manoeuvring and parking ground
handling equipment.
9. Possible future extensions of the facilities should be considered.

Runways
Runway (RWY) is a defined rectangular area on a land aerodrome used for landing
and take-off of aircraft. Runways on an established aerodrome may be a man-made
surface (often asphalt, concrete, or a mixture of both), and for small aerodromes it
could also be a natural surface (grass, dirt, or gravel). Runways are amongst the most
important facilities of airport.
Basic principles on Building Runways
1. Runways are constructed from gravel snow, grass or concrete. The commercial
runways are made of asphalt or concrete.
2. Orientation of primary runways are positioned for prevailing winds, noise, land
use and other determining factors.
3. Crosswind runways are oriented towards most common crosswind directions to
secure steady level of high service during fluctuating weather.
4. Type of aircraft to be accommodated determines the length and width of runways.
International laws, regulations and standards govern the construction of runways.
5. Runways should comply with ICAO or FAA design safety regulations.

Declared Distances of Runways

Let us discuss the declared distances of runways:
z Take-off Run Available (TORA): The length of runway declared available and
suitable for the ground run of an airplane taking off.
z Take-off Distance Available (TODA): The length of the take-off run available
plus the length of the clearway, where provided (the clearway length allowed must
lie within the aerodrome or airport boundary).
z Accelerate Stop Distance Available (ASDA): The length of the take-off run
available plus the length of the stopway, where provided.
z Landing Distance Available (LDA): The length of runway which is declared
available and suitable for the ground run of an aeroplane landing.

Taxiways
A taxiway is a path on an airport connecting runways with ramps, hangars, terminals
and other facilities. They mostly have hard surface such as asphalt or concrete,
although smaller airports sometimes use gravel or grass. At most airports, taxiways
are designated by letters such as Taxiway 'A', Taxiway 'C', Taxiway ' B-4', etc. Busy
airports typically construct high-speed or rapid-exit taxiways in order to allow aircraft
to leave the runway at higher speeds. This allows the aircraft to vacate the runway
quicker, permitting another to land in a shorter space of time. Taxiways are second 119
major component of airfield. Four different taxiway configurations are: Flight Safety and
Airside Management
1. Parallel taxiways – Run parallel to runway.
2. Entrance taxiways – Lead to one end of runways and are used by aircraft
departing to reach their take-off position.
3. Bypass taxiways – Allow aircraft to bypass other aircraft on their way to the
runway.
4. Exit taxiways – Each runway has several exit taxiways distributed along it.

Check Your Progress 2

Fill in the blanks:
1. …………………… programmes, sometimes referred to as Flight Data
Monitoring (FDM), or Flight Operations Quality Assurance (FOQA),
provide another tool for the proactive identification of hazards.
2. …………………….., ………………. and ………………. are tools that
can be used to ensure that requisite cabin safety standards are being
maintained.

8.11 LET US SUM UP

This lesson explains the air transport safety management principles. It describes the
concept of aviation safety and stresses on the need for aviation safety management.
It mentions the ICAO requirements pertaining to aviation safety management.
In addition it also describes the various approaches to safety management. A contrast
between accidents and incidents has been made in this lesson. This lesson describes
the cabin safety programme and lists the ICAO requirements regarding the same. The
safety regulations of flight regulations have been covered in detail in this lesson.
In addition to this, the implementation of safety oversight programme of flight
operations has also been discussed in the lesson.

8.12 LESSON END ACTIVITY

Prepare an assignment on the cabin safety measures and programs.

8.13 KEYWORDS
Safety Management System: It is an organized approach to managing safety,
including the necessary organizational structures, accountabilities, policies and
procedures.
Safety Programme: It is an integrated set of regulations and activities aimed at
improving safety.
Safety Oversight: It refers to the activities of a state under its safety programme.
Safety Performance Monitoring: It refers to the activities of an operator or service
provider under its Safety Management Service.
Line Operations Safety Audit (LOSA): It is a critical organizational strategy aimed at
developing countermeasures to operational errors.
120
Airline and Airport Organisation
8.14 QUESTIONS FOR DISCUSSION
1. What is the difference between the safety performance indicators and safety
targets? Give examples.
2. What is meant by Safety Management System (SMS) and what are its advantages?
Describe various steps involved in implementation of SMS.
3. In establishing States' requirements for the management of safety, how ICAO
differentiates between safety programmes and safety management systems?
4. How aircraft accidents and incidents are related to each other?
5. State in the context of 1:600 Rule.

Check Your Progress: Model Answers

CYP 1
1. ICAO
2. Safety oversight

CYP 2
1. Flight data analysis
2. Safety inspection, safety survey, safety audit

8.15 SUGGESTED READINGS

Kinnison, Harry, Aviation Maintenance Management, McGraw-Hill Professional.
Wells, Alexander T and Rodrigues, Clarence C, Commercial Aviation Safety,
McGraw-Hill Professional.
Richard de Neufville and Odoni, Amedeo, Airport Systems: Planning, Design, and
Management, McGraw-Hill Professional.
 121
LESSON Ground Safety

9
GROUND SAFETY

CONTENTS
9.0 Aims and Objectives
9.1 Introduction
9.2 Aircraft Ground Damage
9.3 Aircraft Ground Damage Categorization
9.4 Main Safety Programs Applicable to Ground Safety
9.5 Aeronautical Ground Lighting (AGL)
9.6 Let us Sum up
9.7 Lesson End Activity
9.8 Keywords
9.9 Questions for Discussion
9.10 Suggested Readings

9.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concept of aircraft ground damage
z Categorize aircraft ground damage
z Explain the main safety programs applicable to ground safety
z Describe Aeronautical Ground Lighting (AGL)

9.1 INTRODUCTION
Aircraft safety on ground is also an important issue for airline industry. Aircraft
ground damage is the most significant factor that affects ground safety in aviation
industry. This lesson highlights the issue to be considered keep in the purview of
aircraft safety at ground.

9.2 AIRCRAFT GROUND DAMAGE

It is the most significant factor that affects ground safety in aviation industry. Aircraft
ground damage when aircraft gets damage while on ground.
According to Air Transport Association (ATA), also known as ‘Airlines for America’,
defines aircraft ground damage as “Damage to the exterior of an aircraft caused by
equipment or personnel requiring any corrective action beyond inspection and signoff
that is considered under the control of ground operations personnel at the time damage
occurs”.
122 According to the ATA, some of the most common causes of aircraft ground damage
Airline and Airport Organisation events are as follows:
1. Damage inflicted during aircraft lowering and push back from gate.
2. Collisions between aircraft and ground support equipment (GSE) such as belt
loaders, tugs, baggage carts and ground power points.
3. Inadvertent deployment of evacuation slides and trait.
4. Damage related to the use of passenger loading bridges due to operator error or
collision during aircraft movement.

9.3 AIRCRAFT GROUND DAMAGE CATEGORIZATION

Category Description
1. Major damage
2. Damage to interior of aircraft (flight deck, cabin, cargo bins, etc.)
3. Minor damage
4. Foreign object damage (FOD)

9.4 MAIN SAFETY PROGRAMS APPLICABLE TO

GROUND SAFETY
1. Baggage Handling: Majority of injuries throughout airline industry is caused by
baggage handling. In bag room or at plan side, the baggage is first handled by
ramp employers. Bags are in different sizes, shapes and weights that complicate
the handling process. The process of baggage handling is complicated further by
physical limitations of aircrafts cargo compartments. In many aircrafts cargo bins
are only few feet high and so do not allow employers to keep their backs straight
and move bags and cargo from an optimal posture. Many back and shoulder
injuries arise baggage operations.
2. Cargo Handling: Package and materials handle vary in size, weight and shape.
Manual handling of material of material is required when aircraft is involved.
Cargo handlers should be skilled and trained in technique of maximizing use of
space for storing cargo for transport, stabilizing it during storage process.
3. Cabin services: These services handle the food and beverages services for
passenger aircraft. Sometimes airlines hire third party for cabin services. Cabin
services include the following:
(a) Restock food, beverages, snacks on aircraft
(b) Replacement of pillows, magazines and blankets
(c) Sanitization
Hazards associated to this group of employees are:
(a) Lifting/lowering food products
(b) Injury by protruding metal of ovens, drawer edges
(c) End-range motions due to awkward location of equipment
(d) Disability services
Major airport facilities are equipped with devices to ensure comfort of passenger with
disability. Aids include parking elevators, wheelchairs and handicap–accessible
restrooms. Main hazards to the employee group include lift/lower and push/pull 123
hazards. Ground Safety

Check Your Progress 1

Fill in the blanks:
1. …………………… is located along the edges of the area declared for use
as the runway delineated by edge markings, and may be provided either
by elevated or by flush fitting lamp fixtures.
2. ………………………… is the generic term used to describe the various
lighting systems that are provided on an aerodrome for the guidance of
pilots operating aircraft both at night and in low visibility conditions.

9.5 AERONAUTICAL GROUND LIGHTING (AGL)

‘Aeronautical Ground Lighting is the generic term used to describe the various
lighting systems that are provided on an aerodrome for the guidance of pilots
operating aircraft both at night and in low visibility conditions.

Runway Markings
Runways centre line markings are white stripes with broken lines.
They come in three basic types:
1. A visual runway, which is used only for VFR flights, usually has a threshold
marking, a runway number, and stripes designating the centre line and the runway
edges. It may also have fixed – distance markers – two large, white rectangles on
either side of the centre line about 1,000 ft. (305 m) from the threshold.
2. An Instrument Runway (non-precision approach) supports both VFR and IFR
traffic. As indicated by its name, this type of runway is served by a non-precision
instrument approach, usually a VOR or NDB approach. In addition to the
markings used on a visual runway, a non-precision runway also has threshold
markings.
3. An Instrument Runway (precision approach) supports a precision approach,
usually an ILS. Precision runways have all the marks found on a non-precision
runway, plus touchdown zone markings. These marks appear at 500-ft (150m)
increments, beginning 500 ft. from the threshold. These additional marks help
pilots make the transition from instrument to visual flight and define the proper
touchdown point for an aircraft flying an ILS.

Runway and Taxiway Lights

Runway thresholds are marked by green lights at the landing end and red lights at the
departure end. White lights define runway edges. At a runway served by a precision
instrument approach such as an Instrument Landing System (ILS), the white edge
lights alternate with red lights starting 1,000 ft. from the end of the runway and then
change to all red for the last 500 ft. Figure 9.1 depicts the runway and taxiway lights.
124
Airline and Airport Organisation

Figure 9.1: Runway and Taxiway Lights

All runways used for night use have Edge, Threshold and End Lighting. Centre line
and Touchdown Zone Lighting is provided as additional guidance in support of low
visibility operations.

Runway Edge Lighting

Runway Edge Lighting is located along the edges of the area declared for use as the
runway delineated by edge markings, and may be provided either by elevated or by
flush fitting lamp fixtures. At some aerodromes where elevated runway edge lights are
employed, the light fixtures may be located on the grass shoulder just beyond the
declared runway width. Runway Edge Lighting is white except in the following
instances:
(a) Caution Zone Lighting: On ILS equipped runways without centre line lighting;
Yellow edge lighting is installed on the upwind 600 m or one third of the lighted
runway length available, whichever is the less. The Yellow 'caution zone' so
formed gives a visual warning of the approaching runway end.
(b) Pre-threshold Lighting: Where a landing threshold is displaced, but the 125
pre-threshold area is available for the take-off run, the lights between the Ground Safety
beginning of the runway pavement and the displaced threshold show red from the
approach. Pilots taking off in such a situation would see red edge lights up to the
green threshold then edge lights beyond. Where a starter extension, narrower than
its associated runway is provided, blue edge lighting is normally used to mark the
edges.
(c) Runway Exit Lighting: One or two omnidirectional blue lights may replace or
supplement the edge lights in order to indicate an exit taxiway.
(d) Stopway Lighting: Where stopway is provided at the end of a runway, the
declared stopway is delineated by red edge and end lighting showing only in the
direction of landing. A stopway is provided for emergency use only and is not
normally suitable for routine use.

Taxiway Lights
Taxiway lights are depicted in Figure 9.2. Taxiway edge lights are blue in colour.
However, centre line taxiway way lights are green in colour.

APRON EDGE
LIGHTING

CENTRELINE LIGHTING
TAXIWAY EDGE
LIGHTING

STOP BAR

GUARD LIGHTS

COLOUR CODED
CENTRELINE

HIGH SPEED EXIT

TAXIWAYS
COLOUR CODED

Figure 9.2: Taxiway Lights – Blue (Edge Lights) and Green (Centre Line)

Approach Lighting Systems

Runways served by instrument approach procedures usually have approach lights to
help pilots identify the runway environment during low-visibility conditions.
Approach lights greatly increase a pilot's chances of seeing the runway and making a
safe landing.
Varieties of approach lighting systems based on the centre line and cross bar concept,
are in use at aerodromes. These systems range from the simple low intensity centre
line and cross bar intended to serve visual runways at night only, to the precision
approach lights consisting of centre line and 5 cross bars for day and night use on ILS
equipped runways.
Simple approach lighting systems normally commence 500 m prior to the runway
threshold whilst the precision approach commences 900 m prior to runway threshold.
Where, because of the geography of the approach, it is not possible to install a full
system, a shortened system is employed and the Runway Visual Range (RVR) minima
126 associated with the instrument approach procedure adjusted accordingly. Except
Airline and Airport Organisation where supplemented by red side barrettes as described below, approach lighting is
white in colour.

Figure 9.3: Approach Lighting Systems

Types of Approach Lights

Following Approach Lighting Systems (ALSs) are used.
1. Green threshold lights mark the beginning of the runway.
2. A long line of lead-in lights aligned with the runway centreline. The lead-in lights
extend from the end of the runway into the approach area.
3. Alignment bars perpendicular to the lead-in lights that help the pilot quickly
determine if the airplane is properly aligned with the runway.

Obstacle Markings and Lighting

These lights can be seen on the high-rise buildings and tall chimneys, TV Antennas,
HT Lines acting as an alert warning for aircraft flying in the area. For aircraft flying
during night or in poor visibility, flashing or fixed lights are installed on such
structures (depicted in Figure 9.4).
 1000 m 127
Ground Safety

150 m
30 m

Approach/Take-off Surface

30 m

Obstacles to be
marked/lighted when in
the shaded area

a ce
u rf
ff S
e- o
tak
a ch /
pro
Ap

6m

92 m
150 m

Source: www.civilaviation.gov.eg

Figure 9.4: Obstacle Markings and Lighting

Check Your Progress 2
Fill in the blanks:
1. Runways served by instrument approach procedures usually have
………………………… to help pilots identify the runway environment
during low-visibility conditions.
2. Simple approach lighting systems normally commence …………………..
prior to the runway threshold whilst the precision approach commences
……………………. prior to runway threshold.

Case Study: Aircraft Maintenance Planning for a US Airline

A
U.S.-based airline sought to improve aircraft maintenance
productivity by efficiently disseminating work to optimize the
available resources. The airline wanted to develop variable standards
to provide a customized workload plan that meets the needs of the airplane
and manages time efficiently.
Infosys incorporated changes in the business practice and process for the
Aircraft Maintenance Planning system. We implemented the project using
J2EE technologies and frameworks. Our approach resulted in an efficient and
cost-effective method to assign and control work at line maintenance stations.
Business Need
The existing aircraft maintenance procedures were inefficient resulting in
wastage of manpower and material, and provided unrealistic workload.
Contd…
128 The Field Maintenance Reliability (FMR) results were not measurable as all
Airline and Airport Organisation FMRs were assumed to be addressed. Work was being routed to ‘maintenance
opportunity’, ignoring station capability.
In addition, aircraft maintenance parts were being ordered based on an
unrealistic Bill of Material (BOM) process. A large number of parts shipped
from other stations were unused. Manual ordering of parts was inefficient
since GDS commands and transactions had to be keyed in sequentially for
each part.
Infosys’ Role
Infosys produced an automated manpower and resource-based overnight
workload for line maintenance stations. The Bill of Work (BOW) was driven
by a sophisticated Operations Research Algorithm.
We consolidated FMR parts and Aircraft on Ground (AOG) information for
stores and created the Bill of Material. We generated a close-to-real Bill of
Material early in the day. Since Bill of Material is driven by Bill of Work, the
incidence of unused ordered parts reduced significantly.
Strategy
Infosys used Operations Research Algorithms for effective work scheduling
and aircraft parking. We executed the project in a co-development mode with
the customer and followed an iterative model.
In addition, we automated processes such as Bill of Material to check package
and non-routine work, parts ordering and AOG processing.
Benefits
Our approach realized several benefits:
z Optimized Bill of Work – to do the right or required maintenance on time
z Optimized workload – provides credit for all manpower activities,
exposes inadequacies of staffing
z Management can derive useful metrics to measure station performance,
work deferral patterns and manpower distribution
z Effective inventory management
z Reduced expenditure on inter-station shipping tickets
z Unified Graphical User Interface eliminated manual systems, ensuring
faster operations
z Seamless integration with other systems such as aircraft routing, flight
operations and work-card management
z High satisfaction among users at stores in maintenance stations
Questions
1. How are the aircraft maintenance parts ordered?
2. How did Infosys assisted in maintenance planning?
3. What are the benefits associated with automated processing?
Source: http://www.infosys.com/industries/airlines/case-studies/Pages/aircraft-maintenance-planning.aspx
9.6 LET US SUM UP 129
Ground Safety

This lesson explains the concept of ground safety. Aircraft damage is the most
significant factor that affects ground safety in aviation industry. Aircraft damage can
be further categorized. There are different safety issue both for aircraft and the
passenger which are discussed in the lesson. Aeronautical ground lighting support the
surface safety of an aircraft.

9.7 LESSON END ACTIVITY

Prepare a research paper on Modelling Airport Surface Safety.

9.8 KEYWORDS
Aircraft Damage: It is the most significant factor that affect ground safety in aviation
industry. Aircraft ground damage when aircraft gets damage while on ground.
ATA: Air Transport Association

9.9 QUESTIONS FOR DISCUSSION

1. What do you understand by aircraft ground damage? How does air transport
association define aircraft ground damage?
2. Enlist different category of aircraft ground damage.
3. Discuss different safety programs applicable to ground safety.
4. Explain aeronautical ground lighting (AGL). How does this aeronautical ground
lighting contribute to aircraft safety at surface?

Check Your Progress: Model Answers

CYP 1
1. Runway edge lighting
2. Aeronautical ground lighting

CYP 2
1. Approach light
2. 500M/900m

9.10 SUGGESTED READINGS

Airports Authority of India ATS Manual.
Deb, Sushant, Developing Safety Management Standard for Commercial Airports,
Schiel & Denver Publishing Limited, 2011
ICAO Aerodrome Design Manual (ICAO Doc 9157), Part 1 - Runways, Part 2 -
Taxiways, Aprons and Holding Bays, Part 3 - Pavements, Part 4 - Visual Aids, Part 5 -
Electrical Systems.
ICAO Manual of Surface Movement Guidance and Control Systems (SMGCS) (ICAO
Doc 9476)
 131
Tour Operators,
Travel Agents and
Hotel Industry

UNIT IV
132
Airline and Airport Organisation
 133
LESSON Tour Operators,
Travel Agents and
Hotel Industry

10
TOUR OPERATORS, TRAVEL AGENTS AND
HOTEL INDUSTRY

CONTENTS
10.0 Aims and Objectives
10.1 Introduction
10.2 Tour Operators
10.3 Travel Agents
10.3.1 Role of Travel Agents
10.4 Hotel Industry
10.5 Tourist Attractions
10.6 Passenger Handling
10.6.1 Unaccompanied Minor (UMNR)
10.6.2 Disabled Passenger
10.6.3 Stretcher Passengers
10.6.4 VVIPs/VIPs
10.6.5 Human Remains
10.6.6 Handling CIP
10.7 Coordination of Supporting Agency
10.8 Let us Sum up
10.9 Lesson End Activity
10.10 Keywords
10.11 Questions for Discussion
10.12 Suggested Readings

10.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concept of tour operators and hotel industry
z Know the different tourist attractions
z Explain the passenger handling
z Discuss the coordination of supporting agency
134
Airline and Airport Organisation
10.1 INTRODUCTION
Tour operators require people for concept selling and then to accompany the groups to
the destinations. Travel agents can be defined as someone who acts on behalf of
tourism producer and travel. The different tourist attractions across the globe and also
from India have been discussed in this lesson. Airports have procedures to handle
minors and disabled patients. The proper care for VIP/VVIP is taken by concerned
airport authority.

10.2 TOUR OPERATORS

Tours for both international and domestic tourists are operated by many companies.
Some for famous destination like hill stations and others for unusual activities. Tour
operators require people for concept selling and then to accompany the groups to the
destinations.
Agencies prefer friendly and helpful girls for foreign groups. Males are preferred for
domestic groups. Tour operator should be able to travel with groups and know people
at the destinations to make tours pleasant for the client. For this purpose course of
tourist guide can be done. People with knowledge of activities can easily join tour
operators. Travel agents sell out the holidays manufactured by too our operators.
Companies have their retail outlets and sell direct to public telephonically or by post.
Larger companies pose specialized role to employee’s example those who are
involved in producing the brochure or ‘label’ of product, some are involved in
negotiating different components of holiday with carriers and hotel owners, those
involved in R & D of new ideas or marketing them.
They also have separate administrative, finance, personnel departments. Large
companies operate ‘In house’ training programmes and run graduate recruitment
schemes for employees. Tour operators hire representatives/couriers to look after the
holiday makers and escort parties of tourists. These representatives work for long
hour, supervise arrivals, excursions and answering questions representatives have to
deal with complaints accidents or illnesses that occur within their group of tourists.

10.3 TRAVEL AGENTS

Travel agents can be defined as someone who acts on behalf of tourism producer and
travel. Tourism producer are hotel, tour operator or airline.
Travel agencies facilitate travel and services related to travelling. Travel agencies
require people that can deal with customers and can guide them as they plan holidays
and finally offer tickets for best marketing, accountancy, staffing, and complaints.

10.3.1 Role of Travel Agents

1. Making travel arrangements and reservations on behalf of the traveller
2. Give advice to prospective visitors on carriers, resorts, travel companies and travel
facilities worldwide
3. Itinerary planning
4. Fares and airline computing for clients
5. Issuing vouchers and travel ticket to clients
6. Maintain records on travel reservations
7. Corresponding by telephone and mail with clients 135
Tour Operators,
8. Negotiating with principals in case of complaints by customers Travel Agents and
Hotel Industry
Check Your Progress 1
Fill in the blanks:
1. ………………. maintain records on travel reservations.
2. ………………. acts on behalf of tourism producer and travel.

10.4 HOTEL INDUSTRY

All forms of business related to provisions of accommodation are included in Hotel
Industry with simultaneous development of transportation systems hotel industry also
developed.
The dictionaries define hotel in several ways – “place which supplies board and
lodging”, “a place for entertainment of travellers”, and “a public building”.
The common law states that a hotel is “A place where all who conduct themselves
properly, and who, being able and ready to pay for their entertainment, are received, if
there be accommodation for them, and who without any stipulated engagement as to
the duration of their stay or as to the rate of compensation, are, while there, supplied at
reasonable cost with their meals, lodging and such services and attention as are
necessarily incident to the use of the house as temporary home”.
Types of Hotels
The types of hotels are as follows:
International hotels: These are modern western style hotels. These are located in
almost all metropolitan and other large cities. Internationally accepted system of
classification reclassifies these luxury hotels.
These are five categories ranging from five to one.
z Resort hotels: Located near sea, mountain and other areas surrounded by natural
beauty.
z Commercial Hotels: These hotels appeal directly to individual traveller.
Commercial hotels entertain guests who are on business.
z Residential Hotels: These are also known as apartment hotels. These hotels are
charged monthly yearly or half yearly basis. Charges are paid on the basis of
furnished or unfurnished accommodation.
z Floating hotels: These hotels are located on surface of water (sea or lake). All the
services of hotels are provided in these floating hotels.
z Capsule hotels: A box made up of glass-reinforced plastic or cement, open either
at one side or end is known as capsule. In these capsules, some functions of
traditional hotel room like bed, TV, table, etc. are present. These hotels cater
mainly to business travellers.
Airport hotels: These hotels caters needs of transit passengers and are located near
airports.
136
Airline and Airport Organisation
10.5 TOURIST ATTRACTIONS
Top 25 Tourist Destination in World
1. Times Square, New York City, NY, USA
2. National Mall & Memorial Parks, Washington, D.C., USA
3. Disney World’s Magic Kingdom, Lake Buena Vista, FL, USA
4. Trafalgar Square, London, England, UK
5. Disneyland Park, Anaheim, CA, USA
6. Niagara Falls Ontario, Canada & New York State, USA
7. Fisherman’s Wharf/Golden Gate National Recreation Area San Francisco, CA,
USA
8. Tokyo Disneyland/Disney Sea Tokyo, Japan
9. Notre Dame de Paris, France
10. Disneyland Paris Marne-La-Vallee, France
11. Great Wall of China, Badaling area, China
12. Great Smoky Mountain National Park Tennessee/North Carolina, USA
13. Universal Studios Japan Osaka, Japan
14. Basilique du Sacre-Coeur de Montmartre Paris, France
15. Musee du Louvre Paris, France
16. Everland Kyonggi-Do, South Korea
17. The Forbidden City/Tienanmen Square Beijing, China
18. Eiffel Tower Paris, France
19. Universal Studios/Islands of Adventure Orlando, FL, USA
20. Sea World Florida Orlando, FL, USA
21. Pleasure Beach Blackpool, England, UK
22. Lotte World Seoul, South Korea
23. Yokohama Hakkeijima Sea Paradise Japan
24. Hong Kong Disneyland Hong Kong, China
25. Centre Pompidou Paris, France

Tourist Destination in India

Natural Attractions
1. Sea beaches
™ Argina Beach – Goa
™ Baga Beach – Goa
™ Dona Paula – Goa
™ Calangute Beach – Goa
™ Bogmalo Beach – Goa
 ™ Kovalam Beach – Kovalam, Kerala 137
Tour Operators,
™ Juhu Beach – Mumbai Travel Agents and
Hotel Industry
™ Chowpatty Beach – Mumbai
™ Puri Beach – Puri, Orissa
™ Gopalpur on sea – Bhubaneshwar
™ Chandipur Beach – Orissa
2. Hill stations
™ Dalhousie
™ Kullu
™ Manali
™ Gulmarg
™ Mussoorie
™ Shimla
™ Darjeeling
™ Ooty
3. Wildlife:
™ Corbett national park
™ Rajaji national park
™ Dudhwa national park
™ Bharatpur
™ Ranthambore
™ Sariska
™ Gir national
™ Kanha
™ Sunderbans
™ Manas sanctuary
™ Kaziranga
4. Islands:
™ Lakshadweep island
™ Kavaratti
™ Kalapeni
™ Agatti
™ Kadmat
™ Bangaram
™ Minicoy
™ Andaman & Nicobar
138 Cultural Attractions:
Airline and Airport Organisation
z Museums of India
z Indian architecture
z Mughal architecture
z Christian architecture
z Sikh architecture
z Indian temples
z Arts and crafts

10.6 PASSENGER HANDLING

10.6.1 Unaccompanied Minor (UMNR)
Travelling of children between the age of 5 and 12 years is accepted only when parent
or guardian escorts the child at airport of departure and at airport of arrival. In case if
any information is missing an Unaccompanied Minor form shall be issued properly
and parent/guardian should remain with child as long as possible before boarding.
Children between 12 and 16 years so called Young Persons (YP) may be accepted as
UMNR if so requested.
1. Check in: Keeping in view child’s age and degree of maturity the station, during
the check in and boarding time should supervise the child in agreement with
child’s parents or guardians in necessary manner, so as to make sure that the child
is kept safe of psychological damage.
2. Specific UMNR seats: To ensure proper care during flight, particular seats where
UMNR can be seated have been assigned in-crew.
3. Handling over to cabin crew: Before the boarding of other passenger member of
boarding stations staff should handover UMNR personally to cabin crew.
Whenever the commander notify UMNR should be shown to him. “UMNR –
wallet” contain handling advice and all necessary documents. UMNR must be
supplied with UMNR wallet at the time of handing over to cabin crew.
4. Handling at destination: At the destination the station staff receives the UMNR
handed by cabin crew. Overtaking staff member acknowledge receipt of UMNR
from cabin crew by signing of form. Receiving party receive the child while
giving child staff should make sure that the person is authorised to receive the
child.

10.6.2 Disabled Passenger

Nearly all stations within airport terminal area have wheelchairs. These wheelchairs
are used for carrying handicapped passengers. Number of wheelchairs is limited at
airport. Passengers having his/her own wheelchairs will be checked as baggage and
transported in cargo department free of cost i.e. beyond normal baggage allowance
‘WCHC/OWN’ shall be included in passenger service message PSM.

10.6.3 Stretcher Passengers

The person with reduced mobility should be carried into/out of aircraft on a stretcher.
Points to be noted are:
(a) the request for installation of stretcher should be given two days prior to departure
(b) stretcher patients should be boarded before boarding of passenger and 139
disembarked last. Tour Operators,
Travel Agents and
(c) stretcher shall be positioned and secured with passengers head in flight direction Hotel Industry

When stretcher is installed, the load information bed shall be entered in the remarks
column of the loadsheet followed by number of seats blocked and number of
passengers travelling on those seats. For example, BED/6/2 implies 6 seats are
blocked. On these seats, 2 passengers are carried.

10.6.4 VVIPs/VIPs
VIPs are provided with reserved lounge facilities. AAI gives the list of passenger
dignitaries who are entitled to take their vehicle up to aircraft and the dignitaries
exempted from this service. Action taken by airports for handling VVIP/VIP:
1. Documentation: After receiving message with respect to VVIPs/VIPs movement
airport terminal manager examines the message/tour programme/itinerary of
VVIPs/VIPs and informs airport director/director in charge in this regard. Director
in charge enter the same in VIP register, he ensure that specific lounge reserved be
mentioned.
2. Daily VIP Pro Forma: This VIP pro forma enlist all VVIP/VIP movements
24 hours cycle. Copy of this pro forma is forwarded to all concerned by airport
terminal manager.
3. VVIP/VIP Team Briefing: Sr. Airport Terminal Manager/Airport Terminal
Manager on shift duties shall inform all concerned in advance of the particular
VIP movements
(a) Sr. Airport Terminal Manager/Airport Terminal Manager should tie all
VVIP/VIP movements with Airport Director/Airport-in-Charge or with an
officer authorized by Airport Director or Airport-in-Charge in this behalf.
(b) Sr. Manager Engg. (E)/(C) and Sr. Manager (Electronics) are well informed
for VIP movement to ensure that all requirements associated to their
departments are kept in proper operational status and desired shape. For the
smooth handling of the movement authorised officer should keep close liaison
with office/residence of representatives of VVIP/VIP.
4. Responsibility of Airport Director/Airport in-Charge: The concerned Airport
Director/Airport-in-Charge takes overall responsibility for smooth and efficient
handling besides coordinating with all agencies/departments.
5. VVIP/VIP follow up report: Sr. Airport Terminal Manager submit VVIP handling
follow up report.

10.6.5 Human Remains

According to IATA the guidelines for handling the human remains are:
A Contracting State shall facilitate the prompt release of human remains being
imported by air, provided that applicable laws and regulations governing the
importation of human remains are complied with.
Note: The advance notification, either in paper form or electronically, of the transport
of human remains would likely facilitate the entry of human remains at the State of
destination.
1. Human remains shall be accompanied by a laissez-passer for a human remains,
reproduced and issued by the appropriate public authority of the State of origin.
140 2. The laissez-passer shall be issued by the appropriate public authority, after it has
Airline and Airport Organisation ascertained that:
(a) all the medical, health, administrative and legal requirements of the
regulations in force in the State of origin relating to the transfer of human
remains and, where appropriate, burial and exhumation have been complied
with;
(b) the coffin only contains the remains of the person named in the laissez-passer
and such personal effects as are to be buried or cremated with the human
remains
The human remains should be placed in a coffin which complies with the following
requirements:
The remains must be packed in a hermetically sealed inner containment which may be
constructed of a flexible material or may be a rigid coffin of lead or zinc. The inner
containment must then be packed inside a wooden or metal coffin. The wooden or
metal coffin may be protected from damage by an outer packing and covered by
canvas or tarpaulin so that the nature of its contents is not apparent.

10.6.6 Handling CIP

Many of the charters operated by Titan Airways will involve carriage of people who
are widely known in public life. Such passengers should be treated so as to ensure
their privacy is not invaded. Handling staff must not approach such VIP passengers
for photographs/autographs etc.

CIP/VIP Lounges
From time to time small groups of passengers or entire loads will require use of
separate lounge prior to departure. Generally such operations will be carried out
through Business aviation/VIP/FBO type terminals where available. These
arrangements will be advised in advance by Titan Airways.

10.7 COORDINATION OF SUPPORTING AGENCY

International cooperation has presumed enormous importance in today’s world. Over
the years number of organisations has evolved in tourism sector. These organisations
gave strength to tourism by joining together and putting efforts to develop and
promote tourism. These organisations are also responsible for enhancing cooperation’s
among its members to support each other in tourism developmental activities.
Presently different organisations are functioning in the field of travel and tourism.
Some of these organisations contributes towards development and promotion of global
tourism. In any field of activity international cooperation has assumed vital
importance. The cooperation leads stable government worldwide for negotiation in
activities mutually beneficial to all of them. The growth development of any discipline
depends on manner in which it associates itself with those pursuing similar discipline.
The international organisations or world bodies provide platform where exchange of
ideas and topics of mutual interest are discussed and solutions arrived at. Participants
from various disciplines meet together and discuss areas of mutual interest. New ideas
and information develop that help in growth and promotion of a discipline.
The international organisation played key role in strengthening tourism by combined
efforts effort and so there role is critically important. The expanding international
character of modern tourism and developing effect of international agencies in
different field are imitated in growth and development of international cooperation
and organisation in tourism. Organisers are providers of tourist services come together 141
at various forums at international level to discuss common problems and arrive at Tour Operators,
Travel Agents and
some conclusions. International Union of Official Travel Organisations (IUOTO) is Hotel Industry
main instrument for promotion of tourism. Different tourism organisation are:
1. International Union of Official Travel Organisation (IUOTO)
2. World Tourism Organisation (WTO)
3. Pacific Asia Travel Association (PATA)
4. International Air Transport Association (IATA)
5. International Civil Aviation Organisation (ICAO).
Check Your Progress 2
Fill in the blanks:
1. ………………. organisations are also responsible for enhancing
cooperation’s among its members to support each other in tourism
developmental activities.
2. Airport hotels caters needs of ……………… passengers and are located
near airports.
3. ……………… should be able to travel with groups and know people at
the destinations to make tours pleasant for the client.

Case Study: Adventure Tourism Market Development in NE India

Situation
The Tourism Department, Government of Assam in NE India, recognizing the
value of tourism as an economic development tool, wanted support in
developing adventure tourism responsibly and sustainably. With tourism to
India growing at 13.5% per year, state policy-makers saw the opportunity to
draw more visitors to Assam, but were concerned about preserving important
cultural and natural resources. They chose an adventure tourism development
route, defined according to a consumer-based understanding of “adventure,”
which called for the development of products and itineraries that would
include:
z Nature and wildlife exploration
z Cultural interactions and learning — which may include regionally unique
spiritual and religious experiences, and exposure to defining cultural
aspects such as the production of tea in Assam
z Rural experiences
z Active, physical sports whether strenuous or easy — including but not
limited to cycling, trekking and hiking, kayaking and other river
exploration, hang-gliding, and horseback riding
Contd…
142
Airline and Airport Organisation
Challenge
This beautiful NE Indian state, bounded by Himalayan foothills and cut
through by the powerful currents of the Brahmaputra River, has little existing
tourism infrastructure and low market awareness. The state’s tourism
department leaders requested not only recommendations for product
development, but also wanted to ensure that new products would reach an
audience of tour operators and travellers to begin operating trips in the region.
In addition, the state’s leaders were very concerned that any new market
development initiatives encourage sustainable, responsible tourism.
Solution
Assam’s tourism officials selected Xola as its partner in this important
initiative because of its specialization in adventure tourism, the linkages to
industry its approach brings, and its overriding emphasis on sustainable
tourism development for the benefit of communities and the environment.
Xola completed a Feature Adventure Destination analysis for Assam using the
Adventure Tourism Development Index approach developed by the
Adventure Travel Trade Association (ATTA), The George Washington
University (GW), and Xola.
Consulting, Inc. Specifically, the goal of the project was two-fold:
z To support Assam in developing its adventure tourism market by
providing specific market development guidance; and
z To provide access to markets and media through the consulting partners
(ATTA, GW).
Results
As a result of this study:
z A responsible tourism development philosophy for the state was
recommended
z Seven adventure tourism zones or “Hotspots” were defined
z A structure for organizing specific activities relative to product
development, human resources development, infrastructure improvement,
marketing, and impact monitoring was created
z Highlights of the research showcasing Assam’s unique assets will be
revealed to more than 450 international adventure tour operators &
adventure and mainstream travel media in a special report released
through the Adventure Travel Trade Association
(www.adventuretravel.biz), the largest trade organization for adventure
tourism companies.
Questions
1. Discuss the importance of tourism as economic development tool.
2. Define adventurous tourism.
3. Discuss in brief the result of study.
Source: http://www.xolaconsulting.com/xola-india-sustainable-tourism.pdf
10.8 LET US SUM UP 143
Tour Operators,
Travel Agents and
Tours for both international and domestic tourists are operated by many companies. Hotel Industry
Some for famous destination like hill stations and others for unusual activities. Tour
operators require people for concept selling and then to accompany the groups to the
destinations. Agencies prefer friendly and helpful girls for foreign groups. There are
different types of hotel that caters the need of different travellers travelling worldwide.
There is set procedure for handling minor, disabled passengers and stretchers
passengers. Coordination between different agencies supports the tourism in the
world. There are different tourist attractions across the globe, which attract different
tourists.

10.9 LESSON END ACTIVITY

Visit any tourist attraction and interview different tourists and have a survey
concerning how travel agents assisted them in making a tour plan.

10.10 KEYWORDS
Resort Hotels: Located near sea, mountain and other areas surrounded by natural
beauty.
Commercial Hotels: These hotels appeal directly to individual traveller. Commercial
hotels entertain guests who are on business.
Travel Agent: Travel agents can be defined as someone who acts on behalf of tourism
producer and travel.

10.11 QUESTIONS FOR DISCUSSION

1. Discuss different types of hotels.
2. Explain the role of travel agents in planning a tour.
3. What are the different ways of handling passengers? Discuss the different types of
passengers and the ways to handle these passengers.
4. Write a short note on tourist attractions.
5. Why the coordination between tourism organisations is important?

Check Your Progress: Model Answers

CYP 1
1. Travel agent
2. Travel agent

CYP 2
1. International
2. Transit
3. Tour operator
144
Airline and Airport Organisation
10.12 SUGGESTED READINGS
Bhatia, A.K., The Business of Travel Agency and Tour Operations Management,
Sterling Publisher Pvt Ltd.
Alexander T. Wells & Seth Young (2004), Airport Planning & Management, Cengage
Learning.
Rigas Doganis (2001), The Airline Business in the 21st Century.
Routledge Alexander T. Wells, Clarence C. Rodrigues (2004), Commercial Aviation
Safety, McGraw-Hill Professional.
Anne Graham (2008), Managing Airports, Butterworth-Heinemann.
 145
Airport Planning

UNIT V
146
Airline and Airport Organisation
 147
LESSON Airport Planning

11
AIRPORT PLANNING

CONTENTS
11.0 Aims and Objectives
11.1 Introduction
11.2 Types of Airport Planning
11.2.1 Defining the Planning Horizon
11.3 Airport System Planning
11.3.1 Regional Level System Planning
11.3.2 Aeronautical Activity
11.3.3 Socioeconomic Factors
11.4 Airport Layout Plan
11.5 Let us Sum up
11.6 Lesson End Activity
11.7 Keywords
11.8 Questions for Discussion
11.9 Suggested Readings

11.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the different types of airport planning
z Explain airport system planning
z Know the airport layout plan

11.1 INTRODUCTION
Along with the multitude of responsibilities and tasks associated with operating an
airport on a day-to-day basis, airport management is also ultimately responsible for the
significant responsibility of providing a vision for the future of the airport. On a larger
scale, municipalities that are served by more than one airport, as well as individual
states and as a whole, are handed the responsibility of strategically planning for a
coordinated system of airports to best meet the future needs of the travelling public.
Airport planning may be defined as the employment of an organized strategy for the
future management of airport operations, facilities designs, airfield configurations,
financial allocations and revenues, environmental impacts, and organizational
structures.
148
Airline and Airport Organisation
11.2 TYPES OF AIRPORT PLANNING
There are various types of airport planning studies, including:
z Facilities Planning, which focuses on future needs for airfield infrastructure such
as runways, taxiways, aircraft parking facilities, associated lighting,
communication and navigational systems, terminal buildings and facilities,
parking lots, ground access infrastructure, and support facilities such as fuel
farms, power plants, and non-aeronautical land uses such as office parks, hotels,
restaurants, or rental car locations.
z Financial Planning, which is concerned with predicting future revenues and
expenses, budgeting resources, and planning for financial assistance through grant
programs, bond issues or private investment.
z Economic Planning, which considers the future of economic activity, such as
trade and commerce, and the activity of industries that exist on airport and
off-airport property and are either a direct or indirect result of airport operations.
z Environmental Planning, which concentrates on maintaining or improving
existing environmental conditions in the face of changes in future airport activity.
Environmental planning includes land use planning, noise mitigation, wetland
reclamation, and wildlife preservation.
z Organizational Planning, which entails the management of future labour
requirements and organizational structures for the airport administration, staff, and
associated labour force.
z Strategic Planning, which encompasses all other planning activities into a
coordinated effort to maximize the future potential of the airport to the
community.

11.2.1 Defining the Planning Horizon

The planning of airport operations, or any activities for that matter, is defined in part
by the length of time into the future management considers in its planning. The length
of time into the future that is considered is termed the planning horizon. Different
planning efforts require different planning horizons. For example, the organizational
planning of staffing levels per shift for airport operations may require a 3-month
planning horizon, but certainly not a 20-year planning horizon. On the other hand, a
facility planning of an airfield which may include runway construction requires at
least a 5-year planning horizon, and certainly not a planning horizon of less than 1
year. The various types of airport planning studies may be performed on a variety of
different levels. Three such levels of planning include system planning, master
planning, and project planning.
Check Your Progress 1
Fill in the blanks:
1. ……………… planning focuses on future needs for airfield infrastructure
such as runways, taxiways, aircraft parking facilities, associated lighting,
communication and navigational systems.
2. ……………… planning, encompasses all other planning activities into a
coordinated effort to maximize the future potential of the airport to the
community.
11.3 AIRPORT SYSTEM PLANNING 149
Airport Planning

Airport system planning is a planning effort that considers a collection of airports,

either on a local, state, regional, or national level, expected to compliment each other
as part of a coordinated air transportation system. Through airport system planning,
the objectives of individual airports are set in accordance with the needs of the
community by, for example, setting the mission of each airport to serve certain
segments of the demand for aviation, such as targeting one airport in a region to
handle international commercial air travellers and another airport to handle primarily
smaller general aviation aircraft operations.

11.3.1 Regional Level System Planning

Regional airport planning takes as its basic unit of analysis the airport hub, roughly
coincident with the boundaries of a metropolitan area. The planner is concerned with
air transportation for the region as a whole and must consider traffic at all the airports
in the region, both large and small. The practice of regional planning has been
instituted to deal with questions of resource allocation and use that often arise when
the airports in a region have been planned and developed individually and without
coordination among affected jurisdictions. Regional planning seeks to overcome the
rivalries and the jurisdictional overlaps of the various local agencies involved in
airport development and operation. The goal is to produce an airport system that is
optimum with respect to region-wide benefits and costs. Thus, regional airport
planning addresses one critical issue, the allocation of traffic among the airports in a
region. This can be an Airport Planning and Management sensitive subject. Questions
of traffic distribution involve political as well as technical and economic issues, and
they can greatly affect the future growth of the airports involved. One airport might be
quite busy while another is under-utilized. If traffic were to continue growing at the
busy airport, new facilities would have to be constructed to accommodate that growth.
On the other hand, if some of the new traffic were diverted to an under-utilized
airport, the need for new construction might be reduced and service to the region as a
whole might be improved. Although a planning agency might decide that such a
diversion is in the interest of a metropolitan region and might prepare forecasts and
plans showing how it could be accomplished, it might not necessarily have the power
to implement these plans. Where airports are competitors, it is probably not reasonable
to expect that the stronger will voluntarily divert traffic and revenues to the other. The
planning agency would likely have to influence the planning and development process
at individual airports so that they will make decisions reflecting the regional agency’s
assessment of regional needs. Even where airports in a region are operated by the
same authority, allocation of traffic between airports might still be difficult. For
example, the Port Authority of New York and New Jersey can implement its planning
decision to increase activity at Newark by instituting differential pricing, improved
ground access, or other measures to increase use of that airport. Implementation of the
policy, however, depends not just on control of airport development expenditures but
also on the ability to influence the activities of private parties, the air carriers, and
passengers. Regional airport planning authorities may also, if they have planning
responsibility for other transportation modes, plan for the airport as part of the
regional transportation system. When multimodal planning responsibility resides in
one organization, there is greater likelihood that the planning agency will consider
airport needs in relation to other forms of transportation in the region. Also, the
regional agency may try to improve coordination between the various modes so that,
for example, airport developments do not impose an undue burden on surrounding
highway facilities or so that advantage can be taken of opportunities for mass transit.
150 For this to happen, however, two conditions are necessary: region-wide authority and
Airline and Airport Organisation multimodal jurisdiction.

11.3.2 Aeronautical Activity

The principal determinant of future airport system requirements is the amount of
aeronautical activity that will be generated in the metropolitan area. A record of
current aviation statistics as well as a consideration of historical airport traffic data for
such elements as passenger and air cargo traffic, aircraft movements, and aircraft mix
is necessary to forecast aeronautical activity. The assessment of these aviation
statistics, along with consideration of the socioeconomic attributes for the area, forms
the basis for forecasts of aeronautical activity for the metropolitan area. The forecasts
of aeronautical activity, in turn, form the basis for facilities planning for future
requirements. Aeronautical statistical data include federal, state, and regional statistics
as they relate to the master plan airport and the collection of as many local statistics as
can be obtained. At the local level, surveys and questionnaires are used to supplement
data on operations, frequency, and hours of use of aircraft and origins and destinations
of travellers.

11.3.3 Socioeconomic Factors

The collection and analysis of socioeconomic data for a metropolitan area helps
answer the basic questions regarding the type, volume, and concentration centres of
future aviation activity in the region. Accordingly, the determinants (what causes a
market to be the size it is) of a market for airports are established. What industries
need air transportation? Do they have a need for better air transportation facilities?
How many people will be available in the future who possess the income to make use
of air service? Will the people and industries having the where with al to utilize the
airport be there? Because people are associated with a multitude of income-earning
and income-spending activities at any particular location from and to which they
travel, transportation facilities are needed between those points where the future travel
is expected to occur. The primary forces that measure and help determine economic
change and a general rationale for their use in determining air transportation demand
follow.
Demography: The size and structure of the area’s population and its potential growth
rate are basic factors in creating demand for air transportation services. The existing
population along with its changing age and educational and occupational distributions
can provide a primary index of the potential size of the aviation market and resultant
airport employment over short-, medium-, and long-range forecast periods.
Demographic factors influence the level of airport traffic and its growth, both in terms
of incoming traffic from other states, regions, or cities, and traffic generated by the
local or regional populations concerned.
Disposable Personal Income per Capita: This economic factor refers to the
purchasing power available to residents in any one period of time, which is a good
indicator of average living standards and financial ability to travel. High levels of
average personal disposable income provide a strong basis for higher levels of
consumer spending, particularly on air travel.
Economic Activity and Status of Industries: This factor refers to situations within the
area the airport serves that generate activity in business aviation and air freight traffic.
A community’s population, size, and economic character affect its air traffic –
generating potential. Manufacturing and service industries tend to generate greater air
transport activity than primary and resource industries, such as mining. Much will
depend on established and potential patterns of internal and external trade. In addition,
other aviation activities such as agricultural and instructional flying and aircraft sales 151
are included in this factor. Airport Planning

Geographic Factors: The geographic distribution and distances between populations

and commerce within the area that the airport serves have a direct bearing on the type
of transportation services required. The physical characteristics of the land and
climatic differences are also important factors. In some cases, alternative modes of
transportation might not be available or economically feasible. Furthermore, physical
and climatic attractions assist in determining focal points for vacation traffic and
tourism and help in establishing the demand for air services that they generate.
Competitive Position: The demand for air service also depends on its present and
future ability to compete with alternative modes of transportation. Also, technological
advances in aircraft design and in other transportation modes, as well as industrial and
marketing processes, can create transportation demands that have not previously
existed.
Political Factors: The granting of new traffic rights and routes for international air
service will influence the volume of traffic at an airport. Demand for air transportation
also depends on government actions such as the imposition of taxes and other fees. In
addition, government might support other modes of transportation, which might result
in changes in demand for air transportation services.
Community Values: A very important factor in the airport master planning process is
the determination of the attitude of the community toward airport development. Poor
airport-community relations, unless they are changed, could influence the ability to
implement an airport master plan. On the other hand, recognition by the community of
the need for progress in the development of air transportation can have a positive
influence in minimizing complaints; thus, it is necessary to place airport development
in its proper perspective relative to community values.
Check Your Progress 2
Fill in the blanks:
1. ………………… is a planning effort that considers a collection of
airports, either on a local, state, regional, or national level, expected to
compliment each other as part of a coordinated air transportation system.
2. Through airport system planning, the ………………… of individual
airports are set in accordance with the needs of the community by, for
example, setting the mission of each airport to serve certain segments of
the demand for aviation.

11.4 AIRPORT LAYOUT PLAN

Even though a narrative description of the airport environment is a necessary part of
an airport master plan inventory, a graphical representation is also required. This
graphical representation is known as the airport layout plan, or ALP. The airport
layout plan is a graphic presentation to scale of existing and proposed airport facilities
and land uses, their locations, and the pertinent clearance and dimensional information
required to show conformance with applicable standards. It shows the airport location,
clear zones, approach areas, and other environmental features that might influence
airport usage and expansion capabilities. The airport layout plan also identifies
facilities that are no longer needed and describes a plan for their removal or phase out.
Areas might be leased, sold, or otherwise used for commercial and industrial purposes.
The plan is always updated with any changes in property lines; airfield configuration
involving runways, taxiways, and aircraft parking apron size and location; buildings;
152 auto parking; cargo areas; navigational aids; obstructions; and entrance roads. The
Airline and Airport Organisation airport layout plan drawing includes the following items: the airport layout, location
map, vicinity map, basic data table, and wind information. The airport layout is the
main portion of the drawing. It depicts the existing and ultimate airport development
and land uses drawn to scale and includes as a minimum the following information:
z Prominent airport facilities such as runways, taxiways, aprons, blast pads,
extended runway safety areas, buildings, NAVAIDs, parking areas, roads,
lighting, runway marking, pipelines, fences, major drainage facilities, segmented
circle, wind indicators and beacons
z Prominent natural and man-made features such as trees, streams, ponds, rock
outcrops, ditches, railroads, power lines, and towers
z Outline of revenue-producing non-aviation-related property, surplus or otherwise,
with current status and use specified
z Areas reserved for existing and future aviation development and services such as
for general aviation fixed-base operations, heliports, cargo facilities, airport
maintenance, and so forth
z Areas reserved for non-aviation development, such as industrial areas, motels, and
so forth
z Existing topographic contours
z Fuelling facilities and tie down areas
z Facilities that are to be phased out
z Airport boundaries and areas owned or controlled by the sponsor, including
navigation easements
z Airport reference point with latitude and longitude given on the basis of the
Geological Survey grid system
z Elevation of runway ends, high and low points, and runway intersections
z True azimuth of runways (measured from true north)
z North point – true and magnetic
z Pertinent dimensional data – runway and taxiway widths and runway lengths,
taxiway-runway-apron clearances, apron dimensions, building clearance lines,
clear zones, and parallel runway separation
The location map shown in the lower-left-hand side of the airport layout plan drawing
is drawn to scale and depicts the airport, cities, railroads, major highways, and roads
within 25 to 50 miles of the airport. The vicinity map shown in the upper-left-hand
side of the airport layout plan drawing shows the relationship of the airport to the city
or cities, nearby airports, roads, railroads, and built-up areas.
The basic data table contains the following information on existing and ultimate
conditions where applicable:
z Airport elevation (highest point of the landing areas).
z Runway identifications.
z Percent effective runway gradient for each existing and proposed runway.
z Instrument Landing System (ILS) runway when designated, dominant runway
otherwise, existing and proposed.
z Normal or mean maximum daily temperature of the hottest month.
z Pavement strength of each runway in gross weight and type of main gear (single, 153
dual, and dual tandem) as appropriate. Airport Planning

z Plan for obstruction removal, relocation of facilities, and so forth.

In addition, a wind rose is always included in the airport layout plan drawing with the
runway orientation superimposed. Crosswind coverage and the source and period of
data are also given. Wind information is given in terms of all-weather conditions,
supplemented by IFR weather conditions where IFR operations are expected. Airport
layout plans also include scaling diagrams of all surfaces, Noise impacted areas, and
detailed-to scale drawings of major facilities at the airport, including terminal
buildings, aircraft and automobile parking facilities, ground access roads, and public
transit infrastructure, such as rail systems.
Check Your Progress 3
Fill in the blanks:
1. The airport …………………… is a graphic presentation to scale of
existing and proposed airport facilities and land uses, their locations, and
the pertinent clearance and dimensional information required to show
conformance with applicable standards.
2. The …………………… shown in the lower-left-hand side of the airport
layout plan.

11.5 LET US SUM UP

The lack of common goals and mutually consistent approach is also evident between
federal and state planning. More than 30 years ago, the federal government recognized
the need to strengthen state system planning and provided funds for this purpose, and
nearly all the state airport system plans have been prepared with federal funding. In
addition, coordination between airport planning and other types of transportation and
economic planning is vitally important. In many cases, such a lack of coordination in
planning is evident in the case of land use, where airport plans are often in conflict
with other local and regional developments.

11.6 LESSON END ACTIVITY

Critically analyse the most recent issues addressed by regional level system planning
of airports.

11.7 KEYWORDS
Financial Plan: An economic evaluation of the entire master plan development
including revenues and expenditures.
Integrated Airport System Planning: As defined in the Airport and Airway
Improvement Act of 1982, “the initial as well as continuing development for planning
purposes of information and guidance to determine the extent, type, nature, location,
and timing of airport development needed in a specific area to establish a viable,
balanced, and integrated system of public use airports.”

11.8 QUESTIONS FOR DISCUSSION

1. What are some of the various types of airport planning studies? What is the focus
of each type of study?
154 2. What is meant by an airport planning horizon? What is the typical planning
Airline and Airport Organisation horizon for an airport master plan?
3. How does state-level system planning differ from regional level system planning?
4. What are the primary objectives of the airport master plan?
5. What is described in the inventory section of the airport master plan?
6. What is an airport layout plan? What is included on an airport layout plan
drawing?
7. What is the purpose of regional-level system planning?

Check Your Progress: Model Answers

CYP 1
1. Facilities planning
2. Strategic

CYP 2
1. Airport system planning
2. Objectives

CYP 3
1. Layout plan
2. Location map

11.9 SUGGESTED READINGS

Jaroslav J. Hajek, Jim W. Hall, David K. Hein, (2011), Common Airport Pavement
Maintenance Practices, Transportation Research Board.
Manuel Ayres (Jr.), (2007), Safety Management Systems for Airports: Guidebook,
Transportation Research Board Antonín Kazda & Robert E. Caves, (2007), Airport
Design and Operation, Emerald Group Publishing Knippenberger, Ute, (2010),
Airports in Cities and Regions: Research and Practise; 1st International Colloquium
on Airports and Spatial Development, Karlsruhe, KIT Scientific Publishing.
 155
LESSON Airport Operations

12
AIRPORT OPERATIONS

CONTENTS
12.0 Aims and Objectives
12.1 Introduction
12.2 Concepts of Passenger Handling
12.3 Airport Unit Terminal
12.3.1 Terminal Designs
12.3.2 The Apron Area
12.4 Design Process
12.4.1 Airport Capacity
12.4.2 Drainage
12.5 Navigational Aids, Lighting and Marking
12.5.1 Navigational Aids
12.5.2 Airfield Lighting
12.5.3 Runway Markings
12.5.4 Air Traffic Control
12.5.5 Cargo Facilities
12.5.6 Airfield Pavements
12.6 Let us Sum up
12.7 Lesson End Activity
12.8 Keywords
12.9 Questions for Discussion
12.10 Suggested Readings

12.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Understand the concepts of passenger handling
z Know about the airport unit terminal
z Learn the design process
z Discuss navigational aids, lighting and marking
z Describe air traffic control
z Explain cargo facilities
156
Airline and Airport Organisation
12.1 INTRODUCTION
Airport Operations assists Airports, to provide an operationally Safe Airport that is in
compliance with the latest International and National Aviation Regulations,
Legislation and Requirements. Airport Operations conducts audits, formulates new
and/or modifies existing policies and procedures.

12.2 CONCEPTS OF PASSENGER HANDLING

A clearer picture of the various concepts of the passenger handling will be available
from a perusal of some concepts in Figure 12.1.
Curb
Access interface

Processing

Flight interfaces

Apron

(a) CATE ARRIVAL

Curb Curb
Access interface Access interface

Processing Processing
Flight interface

Flight
interface

Apron Apron

(b) PIER FINGER (c) PIER SATELLITE

Figure 12.1: Passenger Handling

Gate Arrival: This is a decentralized passenger concept that is aimed at bringing the
vehicle close to the aircraft. The building is arranged in a one dimensional manner
such that curb side facilities are close to the aircraft gate positions, thus reducing the
walking distance for the passengers.
Pier Finger: This is a centralized processing concept. It is perhaps the most common
system to be found at airports at the present time. The processing is done in a
centralized building to which is attached a long corridor, called a finger that conveys
passenger to and from parked aircraft outside.
Pier Satellite: This is a modification of the basic pier finger concept. Aircrafts are
parked around circular rotunda at the end rather than along the side of the finger.
The advantage of this arrangement is that more space may become available to permit 157
easy assembly of passengers as well as ticketing activities at the aircraft gates. Airport Operations

Remote Satellite: In this system, aircraft are parked around units called “satellites”
that are separated from the main terminal building. Some processing activities e.g.
ticketing, passenger assembly, are performed at the main terminal building. This
system allows partial decentralization of the processing activities. It also permits a
flexible aircraft circulation pattern around the satellites. Conveyance of passengers
between the main terminal building and the satellites occurs via corridors usually
located below the apron level.
Mobile Conveyance: In this system, aircrafts are parked in groups remote from the
passenger terminal building. A mobile conveyance system, such as buses or mobile
lounge is used to take passengers to and from the aircraft. The main feature of this
system is the separation of aircraft and the passenger terminal building operations.
This has the flexibility in adjusting to changes in aircraft characteristics such as size
and manoeuvring requirements.

12.3 AIRPORT UNIT TERMINAL

It is worthwhile referring to a unique set up in the Kennedy Airport, New York and
Los Angeles Airport. In Kennedy Airport, apart from terminal building, there are other
terminals operated by many airlines, including foreign carriers. These terminals
known as unit terminal have been designed and built by airlines themselves. The
America national carrier, such as American Airlines, Pan Am, Trans World Airline,
United, American and foreign carrier British Airways have their own terminals. Each
terminal has its distinctive architectural feature. At Los Angeles Airport, exit terminals
are provided in a different way. The airport authority has provided standard
structures—land side buildings connected by tunnels to satellite buildings on the air
side. It rents them out to the airlines, exclusive of apron space. The airline may,
subject to approval of the authority, install their own special facilities, such as moving
walk-ways in the tunnels of aerobridges on the satellites. In Heathrow airport, London,
BEA and BOAC (earlier name of British airways) desired to construct their own
terminal buildings, but the British Airport Authority, was not in favour of the proposal
because of the serious shortage of land in Heathrow airport.

12.3.1 Terminal Designs

The various concepts by which airport passenger terminals can be designed are shown
in Figure 12.2.
The oldest and simplest layout is the open apron design, in which aircraft park on the
apron immediately adjacent to the terminal and passengers walk across the apron to
board the aircraft by mobile steps. Frequently, the aircraft manoeuvre in and out of the
parking positions under their own power. As airports grow, however, it is impossible
to have large numbers of passengers walking across the apron. In this case, it is
common to have terminals designed to the linear concept, with aircraft parked at gates
immediately adjacent to the terminal itself. Usually, air bridges are employed for
transferring passengers directly between the terminal building and the aircraft. The
limitation of the linear concept is usually the long building dimensions required; these
can mean long walking distances for transferring passengers and other complications
related to building operation. In practice, building lengths tend to be limited to
approximately half a mile. Examples of the linear design occur at Kansas City
International Airport in Missouri, U.S., Munich Airport in Germany, and Charles de
Gaulle Airport near Paris.
158
Airline and Airport Organisation Enroute Airspace
Airport System

Terminal Airspace
Air field
surface system

Runway

Holding Pad Exist Taxiway

Taxiway System

Apron–Gate Area

Terminal Building

Vehfoular
Circulation
Parking

Airport Ground
Access System

Figure 12.2: Airport Passenger Terminals

Where one building must serve a larger number of aircraft gates, the pier concept,
originally developed in the 1950s, has been found very useful. Frankfurt International
Airport in Germany and Schiphol Airport near Amsterdam still use such terminals.
In the late 1970s, pier designs at Chicago’s O’Hare and Atlanta’s Hartsfield
successfully handled in excess of 45 million mainly domestic passengers per year.
However, as the number of aircraft gates grows, the distances that a passenger may
have to travel within a pier-type terminal become exceedingly long, passenger
circulation volumes become very large, and the terminal itself can become
uncomfortable and unattractive to use. In order to cut down walking distances, some
terminals, beginning in the 1960s, were designed on the satellite concept. Frequently,
passengers are carried out to the satellites by some form of automated people mover or
automatic train. Some satellite designs were very successful—for example, at Orlando
and Tampa in Florida, U.S.— but to some degree the concept has fallen out of favour,
having been found difficult to adapt to the changing size of aircraft and wasteful of
apron space. Los Angeles International Airport originally had all its aircraft served at
satellite buildings, but during the 1980s all satellites were converted to pier structures.
12.3.2 The Apron Area 159
Airport Operations
One of the important requirements in the design of a terminal complex is minimizing
the time needed to service an aircraft when it is transiting an airport. This is especially
important in the handling of short-haul aircraft, where unproductive ground time can
consume an unacceptably large percentage of flight time. The turnaround time for a
large passenger transport between short-haul flights can be as little as 25 minutes.
During this period, a large number of service vehicles circulate on the apron.
Therefore, an important aspect in the efficient operation of an airport facility is the
marshalling of ground service vehicles and aircraft in the terminal apron area. Such an
operation can become extremely complex at some of the world’s busiest airports,
where an aircraft enters or leaves the terminal apron approximately every 20 seconds.
Immediately after World War II, new airports were designed with their terminals
entirely surrounded by runways, with access to the terminal areas provided by tunnels.
Such layouts include John F. Kennedy at New York and London’s Heathrow. Because
many large airports now discourage general aviation use by small aircraft, making
crosswind runways unnecessary, the newest designs (including airports at Dallas-Fort
Worth, Munich, and Singapore) have linear layouts of terminals set between parallel
runways. Such designs have been found to provide the most efficient relation between
terminal apron space and runways, minimizing marshalling problems and delays at the
apron entrances.
Check Your Progress 1
Fill in the blanks:
1. The important requirements in the design of a ………………… is
minimizing the time needed to service an aircraft when it is transiting an
airport.
2. The oldest and simplest ………………. is the open apron design.

12.4 DESIGN PROCESS

The design of airport passenger terminals is a complex procedure normally undertaken
only by experts in that area. Buildings are planned to accommodate comfortably the
passenger flows that are forecast to occur at some future date. In addition, it is
anticipated that terminals will have to operate at levels slightly over capacity for short
periods. The measurements used are various, including such terms as standard busy
rate and typical peak-hour passenger flow, but by using these design procedures it is
possible to plan a facility that will have insufficient capacity for no more than
30 operating hours per year. Under such conditions, only about 5 per cent of
passengers would be subjected to inconveniences caused by lack of capacity.

12.4.1 Airport Capacity

The various facilities at an airport are designed to cope adequately with the anticipated
flow of passengers and cargo. The flow that any particular facility can accommodate
without serious inconvenience to the users is considered to be its capacity. Limits on
the traffic that can reasonably be accommodated at an airport are reached in a number
of ways. These include air traffic delays to landing and take-off movements;
congestion on runways, taxiways, and aprons; crowding and delays in terminal
buildings; or severe congestion in such access facilities as parking areas, internal
roads, and public transport.
At smaller one-runway airports, limits to capacity usually occur in the terminal areas,
since the operational capacity of a single runway with adequate taxiways is quite
160 large. When passenger volumes reach approximately 25 million per year, a single
Airline and Airport Organisation runway is no longer adequate to handle the number of aircraft movements that take
place during peak periods. At this point at least one additional runway, permitting
simultaneous operation, is required. Airports with two simultaneous runways should
be able to handle approximately 55 to 65 million passengers per year, and here, too,
the main capacity problems are related to the provision of adequate terminal space.
Layouts with four parallel runways are estimated to have operational capacities of
well over one million aircraft movements per year and annual passenger movements
in excess of 100 million. The main capacity constraints of such facilities are in the
provision of sufficient airspace for controlled aircraft movements and in the provision
of adequate access facilities. It is likely that many of the world’s largest airports will
face access problems before they reach the operational capacity of their runways.

12.4.2 Drainage
Large airports are actually urban complexes in which high-population activity centres
are closely associated with very extensive paved areas. Typically a large airport can,
on a daily basis, handle more than 100,000 passengers and support a working
population of over 50,000 employees. The sewage system of such an airport must
cope with large daily flows of sanitary sewage effluent and, in addition, must
accommodate runoff from rain and snow accumulating over several hundred acres of
impervious pavement. The scale of the sewage problem at many large airports is such
that some facilities have their own sewage treatment plants, especially for sanitary
sewage. Because many airports are situated on low-lying ground, which is more likely
to provide the flat land necessary for airstrips, the sewage system must often include
extensive pumping facilities.

12.5 NAVIGATIONAL AIDS, LIGHTING AND MARKING

Only the simplest airfields are designed for operations conducted under Visual
Meteorological Conditions (VMC). These facilities operate only in daylight, and the
only guidance they are required to offer is a painted runway centreline and large
painted numbers indicating the magnetic bearing of the runway. Larger commercial
airports, on the other hand, must also operate in the hours of darkness and under
Instrument Meteorological Conditions (IMC), when horizontal visibility is 650 yards
or less and the cloud base (or “decision height”) is 65 yards or lower. In order to assist
aircraft in approaches and take-offs and in manoeuvring on the ground, such airports
are equipped with sophisticated radio navigational aids (navaids) and visual aids in the
form of lighting and marking.

12.5.1 Navigational Aids

The most common form of navaid used for the approach phase of aircraft descent is
the Instrument Landing System (ILS). This is a radio signal that is beamed along the
centreline of the runway and at the correct angle of approach (usually 3° above the
horizontal). The beam is intercepted by an approaching aircraft up to 15 miles from
the threshold of the runway. Information is given concerning position above and
below the glide slope and deviation to the right or left of centreline; consequently, the
pilot is able to determine from cockpit instruments a deviation of the aircraft from the
proper approach. Additional approach information is given visually to the pilot in the
form of lighting approach aids. Two systems of approach aids are in use: the Visual
Approach Slope Indicator System (VASIS) and the more modern Precision Approach
Path Indicator (PAPI). Both work on the principle of guiding lights that show white
when the pilot is above the proper glide slope and red when below.
12.5.2 Airfield Lighting 161
Airport Operations
Visual guidance to approaching aircraft is also provided by approach lighting systems,
a configuration of high-intensity white lights running along the centreline of the
runway and extending up to 650 yards beyond the threshold. At airfields where
aircraft operate in very poor visibility, touchdown-zone lighting is provided over the
first 1,000 yards from the runway threshold. These lights, set in patterns flush with the
runway pavement, provide guidance up to the final moment of touchdown. The
runway itself is strongly delineated by a variety of guidance light systems. The
threshold is designated by a line of green lights, and the edges and centreline are
delineated by white lights that shine toward the manoeuvring aircraft at regular
intervals. The pilot is warned of the approaching runway end by a line of red lights at
the end of the usable pavement. Taxiways are delineated by blue edge lights and by
green centreline lights that also appear at regular intervals.

12.5.3 Runway Markings

Considerable additional visual guidance is given to pilots by painted markings on the
runway. The form of marking indicates at a glance whether radio instrument guidance
is available at any particular airfield. On precision instrument runways, the runway
edges are indicated by painted lines, and distances along the runway from the
threshold are indicated by pavement markings. In addition, touchdown-zone markings
are painted on the pavement immediately after the threshold, providing vital visual
guidance during the moments immediately before touchdown when all lighting may
be obscured by fog.

12.5.4 Air Traffic Control

In the vicinity of airports—especially large airports, where in peak conditions as many
as three landing or take-off operations may occur every minute—the control of aircraft
in the air is a difficult but extremely important operation. Aircraft require very large
amounts of airspace, but at the same time the risk of collision must be set at very low,
almost negligible, levels. Because aircraft are concentrated in the airspace around
airports, acceptable levels of collision risk can be achieved only by strict adherence to
procedures that are set out and monitored by air traffic control authorities. An aircraft
in flight follows en route air traffic control instructions as it flies through successive
Flight Information Regions (FIRs). Upon approaching an airport at which a landing is
to be made, the aircraft passes into the Terminal Control Area (TCA). Within this
area, there may be a greatly increased density of air traffic, and this is closely
monitored on radar by TCA controllers, who continually instruct pilots on how to
navigate within the area. The aircraft is then brought into the final approach pattern, at
which point control passes to the approach controller, who monitors the aircraft to the
runway itself. Once on the runway, the pilot is given instructions on ground
manoeuvres by the ground controller, whose responsibility is to avoid conflicting
movements of aircraft in the operational area of the airfield.

12.5.5 Cargo Facilities

Less than 1 per cent of all freight tonnage is carried by air. Nonetheless, this statistic
significantly underestimates the importance of air freight because, in value of cargo
moved, air transport dominates all other modes. For example, although Heathrow
Airport handles less than three-quarters of a million tons of freight per year, in value
of throughput it ranks as Britain’s premier port. By the early 1990s Tokyo’s Narita
Airport, New York’s John F. Kennedy and Frankfurt International Airport handled in
excess of one million tons of cargo per year. As is the case with passenger facilities,
freight terminals vary greatly in the volumes of material handled. Consequently, the
162 scale of the building facilities and the nature of the handling methods also vary.
Airline and Airport Organisation Because only 10 per cent of air cargo is carried loose or in bulk, all modern air-cargo
facilities are designed to handle containers. In countries where labour is cheap and
where freight throughputs at the terminal are not high, freight-handling systems can
still be economically designed around the manhandling concept. This is not feasible in
developed countries, where labour costs are high. Even at facilities with small
throughputs, freight is moved by mobile mechanical equipment such as stackers, tugs,
and forklift trucks. At high-volume facilities, a mixture of mobile equipment and
complex fixed stacking and movement systems must be used. The fixed systems,
which require complex engineering design and maintenance, are known as Transfer
Vehicles (TVs) and Elevating Transfer Vehicles (ETVs). In the design of air-cargo
facilities, special attention must be given to the handling of very heavy and oversized
freight, perishables, urgent materials such as serums and human donor organs,
high-value goods such as diamonds and gold, hazardous goods, and livestock.

12.5.6 Airfield Pavements

Airfield pavements are of two types:

Rigid
Rigid pavements are constructed of Portland cement concrete slabs resting on a
prepared sub base of granular material or directly on a granular sub grade. Load is
transmitted through the slabs to the underlying sub grade by flexure of the slabs.

Flexible
Flexible pavements are constructed of several thicknesses of asphalt or bituminous
concrete layers overlying a base of granular material on a prepared sub grade. They
spread the concentrated aircraft wheel loads throughout their depth until the load at the
base of the pavement is less than the strength of the in situ soil.
Check Your Progress 2
Fill in the blanks:
1. ................... pavements are constructed of Portland cement concrete slabs
resting on a prepared sub base of granular material or directly on a
granular sub grade.
2. ………………………… pavements are constructed of several thicknesses
of asphalt or bituminous concrete layers overlying a base of granular
material on a prepared sub grade.

12.6 LET US SUM UP

Airport Operations assists Airports, to provide an operationally Safe Airport that is in
compliance with the latest International and National Aviation Regulations,
Legislation and Requirements. It is worthwhile referring to a unique set up in the
Kennedy Airport, New York and Los Angeles Airport. In Kennedy Airport, apart from
terminal building, there are other terminals operated by many airlines, including
foreign carriers. These terminals known as unit terminal have been designed and built
by airlines themselves.

12.7 LESSON END ACTIVITY

With the help of internet, gather more information on airport operations and prepare a
collage.
12.8 KEYWORDS 163
Airport Operations

Pier Finger: This is a centralized processing concept.

Pier Satellite: This is a modification of the basic pier finger concept. Aircrafts are
parked around circular rotunda at the end rather than along the side of the finger.
Gate Arrival: This is a decentralized passenger concept that is aimed at bringing the
vehicle close to the aircraft.
Remote Satellite: In this system, aircraft are parked around units called “satellites”
that are separated from the main terminal building.
Mobile Conveyance: In this system, aircrafts are parked in groups remote from the
passenger terminal building.

12.9 QUESTIONS FOR DISCUSSION

1. Explain the concepts of passenger handling.
2. What is meant by airport unit terminal?
3. Describe the design process of the airport terminals.
4. Discuss the navigational aids, lighting, and marking used for air flights.
5. Briefly explain the air traffic control.

Check Your Progress: Model Answers

CYP 1
1. Terminal complex
2. Layout

CYP 2
1. Rigid
2. Flexible

12.10 SUGGESTED READINGS

S. K. Khanna, M. G. Arora, S. S. Jain, Airport Planning & Design Caves, Robert E. &
Gosling, Geoffrey, D., (1999), Strategic Airport Planning, Elsevier Science Ltd.
Kidlington, Oxfordshire.
Norman Ashford, Paul H. Wright, Airport Engineering, John Wiley & Sons Ltd.
S. Ramanathan, Airport Management, Scope Publishers, New Delhi.
164
Airline and Airport Organisation LESSON

13
AIRLINE FUNCTIONS AND
ORGANISATION STRUCTURE

CONTENTS
13.0 Aims and Objectives
13.1 Introduction
13.2 Levels of Management
13.2.1 Board of Directors
13.2.2 Top Management
13.2.3 President
13.2.4 Executive Vice-President and General Manager
13.2.5 Senior Vice-President
13.2.6 Middle Management
13.2.7 Operating Management
13.3 Decision-making
13.4 Functions of Management
13.4.1 Planning
13.4.2 Organizing
13.4.3 Staffing
13.4.4 Directing
13.4.5 Controlling
13.5 Principles of Organization Planning
13.6 Airline Staff Functions/Departments
13.6.1 Staff Departments
13.6.2 Information Services
13.6.3 Personnel
13.6.4 Medical
13.6.5 Legal
13.7 Corporate Communications
13.7.1 Flight Operations
13.8 Flight-serving Passengers
13.9 Let us Sum up
13.10 Lesson End Activity
13.11 Keywords
13.12 Questions for Discussion
13.13 Suggested Readings
13.0 AIMS AND OBJECTIVES 165
Airline Functions and
Organisation Structure
After studying this lesson, you should be able to:
z Know the different levels of management
z Explain decision-making
z Learn the different functions of management
z Discuss the principles of organization planning
z Understand the different staff departments
z Describe corporate communications
z Explain flight-serving passengers

13.1 INTRODUCTION
Every organization has goals, whether they are profits, market share, growth, quality
of products or services, community image, or any combination of these. Management
is the process of achieving an organization’s goals through the coordinated
performance of five specific functions: planning, organizing, staffing, directing, and
controlling. Years ago, when the major carriers were in their formative period, the
management process was much simpler. The few employees truly felt that they were
part of a team, and they could clearly see how their efforts contributed to meeting the
company’s goals. Everyone knew what the objectives of the firm were and how each
particular job related to them. The lines of communication and span of control were
very short. There was an esprit de corps among the employees, from president to the
most unskilled worker. In fact, the president probably knew each employee
personally.

13.2 LEVELS OF MANAGEMENT

Terms such as top management, middle management, and operating management are
commonly used in business to distinguish the levels of management within an
organization. Unfortunately, there is no clear definition of each level, and meanings
attached to the terms sometimes differ from one company to another. However, a
firm’s top management is generally considered to be the policy-making group
responsible for the execution and interpretation of policies throughout the
organization; and operating management is directly responsible for the final execution
of policies by employees under its supervision. Figure 13.1 shows a typical airline
pyramid of authority including all three levels of management. The nature of activity
carried on at each level is illustrated, with examples showing the organizational
breakdown of two administrations and the typical titles of individuals heading up each
unit. The term administration is generally used to describe a major unit within the
company, such as flight operations, marketing, or personnel. Departments are the next
major breakdown within administrations; divisions within departments, and so forth.

13.2.1 Board of Directors

The chief governing body of a corporation is the board of directors, which is elected
by the stockholders. This board ranges in size from 3 to 20 or more members and
represents a cross-section of prominent individuals from various fields, including
banking, insurance, law, and accounting. Airline boards typically include individuals
from the hotel and food-processing industries, as well as former political and military
leaders. The board of directors take part in the chief policy-making body of the
166 corporation and the forum to whom the president reports. This body decides such
Airline and Airport Organisation broad questions as, should the company be expanded? And should the company
diversify into other fields? The board also has the sole responsibility for the
declaration of dividends. The basic decision about a dividend involves other decisions,
such as what percentage of the year’s earnings should be retained for company use
and whether the dividend should be paid in cash or in stock. The directors of the
corporation are responsible for the appointment of a president, secretary, treasurer,
and other executive officers who handle the actual details of management. Often, the
board elects some of its own members to fill these important posts.

13.2.2 Top Management

Top management is the highest level of management in the organization. The job of
top management is to determine the broad objectives and procedures necessary to
meet the goals established by the board of directors. Top management will also make
recommendations to the board regarding the goals middle management is not always
clear in a given organization, but the individuals in this group usually have many years
of experience in all phases of management. Often called key executives, senior
executives, or major executives, they usually bear the title of President, Executive
Vice-President, or Senior Vice-President.

Planning–Thinking Level President

Top Management
Typical titles;
president, executive
Executive vice-president,
vice-president senior vice-president

Administration Level v Se r t
en ice- p nior nio en
g re Se resid and
ma ineer sid e -p g
i nt i ng nt e in
en vic rket ice s
an and ma serv
ce
Middle Management
Department Level Typical titles;
vice-president,
ba vice- nt director,
se pre ide ce
Division Level ma sid es rvi superintendent
i nt en
en t e -p r d se
an vic s an
Su ce le
ai r per sa i on
pl a i nt to r e g
ne end ec n r
ov en Dir ster
Section Level erh t a
au –e
l l es
sa Operating Management
Ch r Typical titles; managers,
ie ge
Group Level f– na nd assistant managers,
In s
pe l m a ngl a
c ti na E section chiefs, general
on g io ew foreman, foreman
Ge
ne s Re s – N to n
ral le os
Unit Level to r sa
r –B
em e
an ag
–a an
Fo ir fr e sm
r em sa
l ive
am ta t
an
ai r e rgo e n ts
fra Ca re s
u n
me r ep c c o
–d l es l a
ay o sa ercia
sh rg m
ift Ca com

Doing Level

Note: The darker shading indicates “doing” kinds of work, such as gathering statistics, making reservations, and
maintaining aircraft.

Figure 13.1: Typical Airline Pyramid of Authority

The lighter shading indicates activities such as planning, conferring, and formulating
policy.
13.2.3 President 167
Airline Functions and
This individual is the Chief Executive Office of the corporation and is responsible for Organisation Structure
the proper functioning of the business. In the case of airlines, this individual often is a
prominent business or political leader with very little airline experience, because the
president’s primary role is to deal with the financial community, various segments of
government, community groups, and so forth.

13.2.4 Executive Vice-President and General Manager

This individual generally has years of airline experience and is responsible for the
day-to-day operation of the company. Generally, the Senior Vice-Presidents report to
this individual.

13.2.5 Senior Vice-President

This title generally is reserved for those individuals who head up a major
administration, such as flight operations, marketing, or engineering and maintenance.

13.2.6 Middle Management

Middle management is the second level of management in the organization and is
responsible for developing operational plans and procedures to implement the broader
ones conceived by top management. Middle management may be given much leeway
in the development’s requirements. Decisions on which advertising media to use, how
many reservations agents are needed, and what new equipment to purchase are
examples of those made by middle management. Middle management includes
individuals who head up departments or divisions within a major administration, such
as the advertising department under marketing or the flight procedures and training
department under flight operations. Or it might include the simulator division head,
who reports to the flight procedures and training department head. Typical airline
titles for individuals in charge of departments and divisions are Vice-Presidents,
directors, and in the case of maintenance facilities, superintendents.

13.2.7 Operating Management

Operating management is the lowest level in management. It includes managers,
assistant managers, section chiefs, general foremen, and foremen who head up
sections, groups, or units that report to division or department heads. Examples might
include the manager of display advertising or the general foreman of the sheet metal
shop. Members of the operating management group are primarily concerned with
putting into action operational plans devised by middle management; generally, they
do not initiate plans of their own.
Check Your Progress 1
Fill in the blanks:
1. The chief governing body of a corporation is the ………………….. ,
which is elected by the stockholders.
2. ………………… is the lowest level in management.
3. ………………. is the highest level of management in the organization.

13.3 DECISION-MAKING
Possibly the foremost responsibility of management at all levels, but especially top
management, is the making of decisions. It permeates all functions of management.
168 In accord with the broad operational policies set forth by the board of directors, top
Airline and Airport Organisation managers are daily confronted with the need to decide on courses of action that will
enable them to achieve the goals, to which their companies are dedicated, In many, if
not most, instances, the decisions involve choosing between two or more courses of
action. And at the top echelon of management, from which the basic procedural orders
for the company’s operations emanate, correct decisions may be vital to the continued
success of the firm, or even to its survival. Farther down the managerial ladder, the
number and importance of decisions made usually decreases, but the decisions made
at these levels are nevertheless essential to the well-being of the company.

13.4 FUNCTIONS OF MANAGEMENT

The main functions of management are planning, organizing, staffing, directing, and
controlling. The key tools of management are supervisory skills, which must be leaned
and practiced.

13.4.1 Planning
An airline is dependent for its very existence on the ability of its top planners. Failure
to forecast the demand for air travel and to plan how to meet a rising or shrinking
demand spells the difference between success and failure. The management process
begins with planning, which sets the stage for what the organization on will do, both
globally and specifically. Goal should be established for the company as a whole and
for each administration and department, as well as for individual activities. A goal is
anything that an organization or group is seeking to do. Some goral are large, such as
buying a hotel chain or building a new flight kitchen to serve a growing hub airport.
Other goals are small, such as getting a report completed by Friday or handling more
reservations calls per hour than last month.

Companywide Goals
These are the general goals an organization wants to achieve. Some examples might
be “earn an annual return of 12 per cent on our investment”, “capture 25 per cent of
the New Orleans - Memphis market,” and “develop a new promotional fare to
compete with Airline X.”

Administration or Departmental Goals

These goals should be related to – and should lead directly to the achievement of
companywide goals. Some examples might be: “improve on time performance by
10 per cent system wide during the next quarter”, develop and implement a new
training program for apprentice level mechanics in the sheet metal shop, and “hold
flight attendant absenteeism to 7 per cent.”

Individual Goals
These are the goals that specific persons will have to achieve if departmental, division,
group, or unit goals are to be met. Some examples might be “increase my cargo sales
volume by 10 per cent over last year” and “process 10 per cent more insurance claims
per week.”

Management by Objectives (MBO)

Many carriers operate by a system popularly referred to as Management by
Objectives, in which employees at all levels are given tangible goals and are held
accountable for achieving them. Strategies must be formulated to achieve the goals
and objectives of an organization. Consider the company wide goal just mentioned:
capture 25 per cent of the New Orleans – Memphis market. A strategy might include
increasing the number of daily flights, including those serving full meals. In a 169
well-designed MBO program, overall goals and strategies of the company and of Airline Functions and
Organisation Structure
individual employees are established through discussions between managers and their
subordinates. Feedback is provided through follow-up discussions during the period of
time set for achieving the goals. Feedback may be in the form of date on quantitative
results (such as dollar lays) or date on qualitative results (such as customer
complaints, reductions in errors, improvement in image, or development of
subordinates). Person-to-person communication, through day-to-day coaching, is
particularly important.

Goal
Setting

MBO process

Appraisal Coaching

Figure 13.2: Management by Objectives

With MBO, because employees receive timely, accurate, and fairly complete
information on their performance results, they are in a position to take corrective
action when necessary. The whole MBO approach assumes that employees will accept
responsibility for the achievement of company goals and that they will become
committed when the goals are meaningful, attainable, and established through mutual
planning.
The final stage of the MBO process is the appraisal of results. At the end of the
performance period, the manager and the employee check the employee’s progress in
achieving the goals. This serves as a time for recognition of good performance and for
renewed goal setting.
MBO is a continuous cycle of goal setting, coaching and feedback, and appraisal of
results. It is a natural behavioural process that most individuals follow on a daily
basis.

Policy and Procedures as Part of Planning

Every airline has a policy and procedures manual, usually prepared by the personnel
department and containing major sections pertaining to each of the administrations.
A policy is a broadly stated course of action that employees should follow in making
decisions. A policy is a guide; employees do have some discretion in its
implementation. For example, an employment policy for all staff positions above a
certain level might be that “preference in employment will be given to college
graduated with a management background”. Hundreds of policies are in effect in any
major carrier, and those of a broad nature are established by top management. Power
to make specific policies for the guidance of each department usually is delegated to
administration or department heads.

13.4.2 Organizing
Once plans have been made and policies determined, the job of carrying them out
becomes one of organization and operation. Organizing involves the division of work
among employees and the determination of how much authority each person will
have.
170 13.4.3 Staffing
Airline and Airport Organisation
Staffing involves stationing people to work in the positions provided for by the
organizational structure. It includes defining work force requirements for the job to be
done, as well as inventorying, appraising, and selecting candidates for positions,
compensating employees and training or otherwise developing both job candidates
and current employees to accomplish their takes effectively.

13.4.4 Directing
Directing includes assigning tasks and instructing subordinates on what to do and
perhaps how to do it. Because the supervisor’s job is to get things done through other
people, effectiveness is closely tied to communicating directives clearly and in a way
that will bring about the desired action. It is essential that subordinates understand the
orders, or they will not be able to carry them out.

13.4.5 Controlling
Controlling is the measuring and correcting of activities of subordinates to ensure that
events conform to plans. Thus, it involves measuring performance against goals and
plans, showing where deviations occur and, by putting in motion actions to correct
deviations, ensuring accomplishment of plans. Basically, control involves three steps.
(1) Setting performance standards for the work, (2) comprising actual performance
with the standard, and (3) taking corrective action to bring performance in line with
the standard.

13.5 PRINCIPLES OF ORGANIZATION PLANNING

An internal organizational structure must be designed to enable management at all
levels to exercise control of those activities designed to meet the goals and objectives
of the firm. To aid management, there are a number of principles of organization.
These principles have been developed and practiced by successful firms in various
industries and are universally applicable whenever people work together.
z Unity of Objectives: The principle of unity of objectives states that each
administration, department, division, section, group, and unit of the company must
contribute to the accomplishment of the overall goals of the firm. For example, the
regional sales and services department must be concerned not only with sales but
also with how its activities are integrated with all other activities in the company,
such as personnel, finance and property, flight operations, and so forth. Each
department must accomplish its own goals while at the same time working
cooperatively with all other departments. Thus, regional sales and services cannot
be planning a major promotional fare campaign offering easier credit terms at the
same time that the finance department is embarking on a policy of restricting
credit.
z Levels of Management: This principle holds that the number of levels of
management in the company should be kept to a minimum. As the number of
organizational levels increases, problems in communication increase in as much
as each communication must pass through more people as it travels from its point
of origin to its final destination. A carrier must achieve a proper balance between
span of control and the number of levels of management if it is to function
effectively. If a carrier has too narrow a span of control, many levels of
management will be required. With a wide span of control, fewer levels of
management will be needed.
z Clearly Defined Duties: Every job classification should be clearly defined so that
it differs from and does not overlap with other job classifications. All of the major
 carriers have organizational manuals (usually developed and maintained by 171
personnel, except in the case of several of the largest carriers, which have separate Airline Functions and
Organisation Structure
organizational planning departments). These manuals include all job descriptions
within the company, from president on down. The prerequisites for the job (in
terms of education and experience) are included, as is the salary range.

Flexibility
A carrier must be flexible so that it can adapt to changing conditions, both internal and
external. In today’s competitive environment, it behoves management to assess the
organization plan continuously to be sure that it is responsible to the changing
marketplace.

Communication
The term communication here means an uninterrupted flow of orders, instructions,
questions, response, explanations, ideas, and suggestions between top management
and the rest of the organization. This flow should be two-way-that is, both from
management to employees and from employees to management.

Line and Staff Responsibilities

As a company grows from a simple to a complex organization, it becomes impossible
for a small number of executives to assume direct, personal responsibility for
functions such as employment, purchasing, market research, labour relations, and
public relations. Therefore, as the company grows in size and complexity, assistants to
executive are appointed. Specific advisory responsibilities are delegated to these
assistants, who frequently carry such titles as “staff assistant accounting” or assistant
to the vice president of operations for personnel.

Organizational Chart

Figure 13.3: Airline Organisational Chart

172 Often referred to as the blueprint of the company, the organizational chart depicts the
Airline and Airport Organisation formal authority relationships between superiors and subordinates at the various
hierarchical levels as well as the formal channels of communication within the
company. The organizational chart helps managers implement organization principles,
such as span of control and unity of objectives. The chart can serve as an aid in
identifying such organizational deficiencies as one individual reporting to more than
one boss or a manager with too wide a span of control.

13.6 AIRLINE STAFF FUNCTIONS/DEPARTMENTS

Airlines have grown so rapidly in the past 20 years that it is difficult to say that any
organizational chart is typical or that the chart of one company at any particular time
is the one still in effect even a few months later. However, all airlines do have certain
organizational traits in common, such as the administrations, departments, divisions,
and so forth into which airline activities are divided. Understandably, the larger the
carrier, the greater the specialization of tasks and the greater the departmentalization.

13.6.1 Staff Departments

Staff departments include those areas that provide a service to the line departments.
They are primarily located at the carrier’s executive headquarters or at major regional
offices.
Finance and Property
The finance and property administration formulates policies for the financing of all
activities in the airline and is charged with the receipt and safeguarding of the
company’s revenues and the accounting of all receipts and disbursements. In carrying
out these functions, it administrates the activities of (1) the treasurer’s departments;
(2) facilities and property, which involves the administration of all owned and leased
property and equipment; and (3) purchasing and stores, which is a multimillion-dollar
business by itself. Airlines purchase everything from uniforms, supplies, parts, and
equipment to food, fuel, and hundreds of other items on a daily basis. Other major
departments include auditing, accounting, and insurance.

13.6.2 Information Services

Information services is responsible for designing and maintaining the date
communications network within the airline. Included in this administration are
database administrations, who coordinate the data collection and storage needs of user
departments, and systems analysts, who are responsible for analysing how computer
data processing can be applied to specific user problems and for designing effective
data processing solutions. Programmers, who are responsible for developing programs
of instructions for computers, work very closely with the user administrations.

Figure 13.4: A Typical Major Air Carrier’s Information Services Administration

13.6.3 Personnel 173
Airline Functions and
The primary goal of the personnel administration is to maintain a mutually satisfactory Organisation Structure
relationship between management and employees. It is responsible for providing fair
and adequate personnel policies. Major departments under personnel include
employee development, employee relations, and personnel field services, which
encompass the employment function.

13.6.4 Medical
The medical department provides health services to all employees through physical
exams and emergency treatment and establishes health criteria for hiring new
employees. In recent years, some major carriers have virtually eliminated their
medical staffs, choosing instead to have private physicians and clinics provide medical
examinations and other specialized services. Medical service at the major base or at
regional facilities is thus limited to emergency treatment.

13.6.5 Legal
Every airline has a legal department under a Vice-President or general counsel. This
administration is responsible for handling all legal matters, including claims against
the company loss of or damage to the property of others and of injuries to persons.
This administration also works closely with government agencies regarding regulatory
matters.

Figure 13.5: A Typical Major Air Carrier’s Medical and Legal Administration

13.7 CORPORATE COMMUNICATIONS

This is can be seen as the mouthpiece for the carrier. Most announcements regarding
company activities, whether it is an impending strike, weather caused flight
cancellation, or the latest traffic or financial statistics, are made by a representative of
this department. This department also has representatives, or lobbyists, in Washington,
D.C. and a number of state capitals who are important to the carrier from a legislative
standpoint. Legislation regarding increased fuel taxes would be of concern to such
individuals.

Figure 13.6: A Typical Major Air Carrier’s Corporate Communications Administration

174 13.7.1 Flight Operations
Airline and Airport Organisation
The office of the Senior Vice-President of flight operations is responsible for
developing flight-operations policies, procedures, and techniques to promote the safe,
efficient, and progressive operation of aircraft. Flight operations must maintain the
airline operating certificate in compliance with FAA regulations. In addition, the
administration is responsible for developing schedule patterns and procedures for the
economic utilization Flight operations activities throughout the system.

Departmental Level
The Vice-President of air traffic and safety develops and recommends ways to
promote the safe, economic, and expeditious flow of air traffic from departure to
arrival. This executive develops programs for aircraft interior cabin safety and is
responsible for safe aircraft operations, navigation aids, and ground communications
(telephone). The Vice-President also maintains current information on all airports and
airways that may affect operating policies and procedures. The Vice-President of
flight procedures and training develops and recommends operating policies,
procedures, and techniques for the entire fleet. This executive makes
recommendations with regard to equipment, such as instruments, controls, power
plants, and radios, in addition to directing the flight-operations training department
and the flight standards department.

Overnight Maintenance
At the end of the working day, workers conduct a 1 – to 1½ hour inspection to ensure
that the plane is operating to accord with the Original Equipment Manufacturers
(OEM’s) Minimum Equipment List (MEL). This also represents an opportunity to
remedy passenger and crew complaints and to implement marketing-driven
modifications (such as the installation or telephone), as well as to attend to aspects of
FAA Airworthiness Directives (ADs) and Manufacturers’ Service Bulletins. This is a
chance to do whatever work can be completed in the time allotted so as not to disrupt
the aircraft’s flight schedule.

A-check
Roughly every 125 flights hours (two to three weeks), an amplified pre-flight visual
inspection of the fuselage exterior, power plant, and certain readily accessible
subsystems, including avionics (aviation electronics) and accessories, is conducted to
ascertain the general condition of the aircraft.

B-check
Approximately every 750 flight hours, workers conduct an open inspection of panels
and cowlings, during which some preventive maintenance (exterior wash, engine oil
spectroscopic analysis, and so on) is performed, oil filters are removed and checked,
part are lubricated as required, and the airframe is carefully examined. The B-check
incorporates an A-check.

C-check
This fundamental airworthiness inspection, which is carried out approximately every
3,000 flight hours or every 15 months, incorporates both A-and B-checks. In addition,
components are repaired, flight controls are calibrated, and major internal mechanisms
are tested. Other tasks include heavy lubrication, attendance to service Bulletin
requirements, minor structural inspections, flight control rigging tests, engine
baroscopic inspections, compressor washes, aircraft appearance maintenance and
usually, some corrosion prevention. The C-check also includes a post check flight test.
D-check 175
Airline Functions and
This is the most intensive from of routine maintenance, typically occurring every six Organisation Structure
to eight years or approximately every 20,000 flight hours. Cabin interior (including
seats, galleys, lavatories, cockpit, furnishings, headlines and sidewalls) are removed to
enable careful structural inspections. Flight controls are examined, and the fuel system
is probed for leaks and cracks. The aircraft essentially is stripped to its shell and
rebuilt with the intention of returning it to original (Zero-timed) condition as much as
possible. A- and B-checks and overnight maintenance are example of “line”
maintenance work that can be managed at an airport (sometimes even on the ramp)
and usually performed overnight so as not to encroach on flight plans. C and D
checks, however, constitute “heavy” maintenance, demanding special facilities and
extensive downtime.

Advertising
Advertising is an extremely important marketing department, particularly in today’s
competitive environment. The advertising department, working closely with the
company’s advertising agency, provides expertise on promotional messages, copy,
medic, and timing. This department may influence, but generally does not determine,
the amount of company funds spent on advertising and promotion.

Marketing Services
Marketing services is another extremely important marketing department, as it literally
designs the carrier’s products and determines the firm’s market opportunities.
Included are such major divisions as market research and forecasting, pricing and
schedule planning.
Market research and forecasting is charged with the responsibility of systematically
gathering, recording and analysing data relating to the marketing of air transportation.
Operationally, this means forecasting market opportunities and finding out about the
market for air transportation – the numbers and types of consumers, the product itself,
channels of distribution, and consumer motivation and behaviour. With the so-called
consumer-oriented marketing concept in use in recent years, whose objective is to
furnish consumer satisfaction, market research and forecasting has been recognized by
most major carriers as co-equal in status with sales, advertising, new product and
services development, pricing, and scheduling.

Services Planning
The services planning department is responsible for the development of the in-flight
and ground services for the various markets identified by market research and
forecasting. These include everything from reservations and ticketing services to
in-flight entertainment and dining services. The latter includes such details as the type
of meal service aboard various flights, the number of courses, and the various menus.

Sales Planning
Sales planning are concerned with the means by which a carrier’s products and
services are delivered to consumers. Given the markets developed by market research
and forecasting, the prices and schedules, and the services planned for the various
markets, it is up to sales planning to develop an approach to reach these target groups.
This department works closely with regional sales and services personnel in
implementing their plans. Traditional organizational planning holds that when the
number of reporting functions becomes too numerous, a useful solution is to regroup
them into several clusters and appoint a manager to each cluster. Accordingly, most of
the major carriers have separated the marketing functions into operations and
176 planning. In a sense, the three aforementioned departments – marketing services,
Airline and Airport Organisation services planning, and sales planning – have become staff departments to sales and
services.

Sales and Services

Sales and services are concerned with the implementation of the plans formulated by
the planning staff. Airline sales management is as old as the carriers themselves, but
there have been significant changes since World War II. The social sciences, and
especially psychology, have given sales personnel new insights into old problems.
Newer organizational methods have increased sales efficiency. To implement the
selling function, personnel in this department must have complete knowledge of who
consumers are, what makes them purchase the product, and how they can be reached.
The planning departments have helped in meeting these selling challenges.

Food Service
Food service is a major business for any large carrier. Flight kitchens, located
throughout the system at major hub airports, serve thousands of meal a day, not only
to the carrier’s flights but also to those carriers that contract with the major carrier.
Company cafeteria services at locations throughout the system, including the carrier’s
major overhaul base, require additional thousands of meals served to employees
working on shifts around the clock.

13.8 FLIGHT-SERVING PASSENGERS

This is the end product of marketing and serving customers’ needs. The typical airline
customer spends more time with the flight attendants than with any other employee
group. Thus, the flight attendants have much to do with how an airline’s customers
feel about the carrier and whether they will fly that airline again in the future. In the
eyes of the flying public, the flight attendants are the airline, so it is up to the flight
attendants to turn every customer into a repeat customer. Although their primary
function is ensuring in flight safety, flight attendants have become extension of the
marketing effort. Flight attendants receive training in aircraft familiarization, customer
service, galley equipment, and food and beverage presentation. Through classroom
lectures, hands-on demonstrations, and simulations, they become professionals ready
to deal with any emergency situation and dedicated to making every passenger’s trip
comfortable and safe. Flight attendants are required to sign in at the airport one hour
prior to their flights’ scheduled departure time. Flight attendant schedules – like those
of the pilots – are based on each flight attendant’s preferences, weighted by seniority.
Check Your Progress 2
Fill in the blanks:
1. ................... is the end product of marketing and serving customers’ needs.
2. Sales and services are concerned with the implementation of the plans
formulated by the ……………….. staff.

13.9 LET US SUM UP

Management is the process of achieving an organization’s goals through the
coordinated performance of five specific functions: planning, organizing, staffing,
directing, and controlling. The few employees truly felt that they were part of a team,
and they could clearly see how their efforts contributed to meeting the company’s
goals. Everyone knew what the objectives of the firm were and how each particular
job related to them. The lines of communication and span of control were very short. 177
There was an esprit de corps among the employees, from president to the most Airline Functions and
Organisation Structure
unskilled worker. In fact, the president probably knew each employee personally.
Airlines have grown so rapidly in the past 20 years that it is difficult to say that any
organizational chart is typical or that the chart of one company at any particular time
is the one still in effect even a few months later. However, all airlines do have certain
organizational traits in common, such as the administrations, departments, divisions,
and so forth into which airline activities are divided. Staff departments include those
areas that provide a service to the line departments. They are primarily located at the
carrier’s executive headquarters or at major regional offices.

13.10 LESSON END ACTIVITY

Create a collage on the airlines staff function/departments and demonstrate it with the
help of flowcharts and diagrams.

13.11 KEYWORDS
Levels of Management: This principle holds that the number of levels of management
in the company should be kept to a minimum.
Communication: The term ‘communication’ here means an uninterrupted flow of
orders, instructions, questions, response, explanations, ideas, and suggestions between
top management and the rest of the organization.
Controlling: Controlling is the measuring and correcting of activities of subordinates
to ensure that events conform to plans.
Directing: Directing includes assigning tasks and instructing subordinates on what to
do and perhaps how to do it.
Staffing: Staffing involves stationing people to work in the positions provided for by
the organizational structure.
Organizing: Once plans have been made and policies determined, the job of carrying
them out becomes one of organization and operation.
Management by Objectives (MBO): Many carriers operate by a system popularly
referred to as management by objectives, in which employees at all levels are given
tangible goals and are held accountable for achieving them.
Individual Goals: These are the goals that specific persons will have to achieve if
departmental, division, group, or unit goals are to be met.
Administration or Departmental Goals: These goals should be related to – and should
lead directly to the achievement of companywide goals.
Companywide Goals: These are the general goals an organization wants to achieve.
Finance and Property: This administration formulates policies for the financing of all
activities in the airline and is charged with the receipt and safeguarding of the
company’s revenues and the accounting of all receipts and disbursements.
Information Services: It is responsible for designing and maintaining the date
communications network within the airline.
Personnel: The primary goal of the personnel administration is to maintain a mutually
satisfactory relationship between management and employees.
178 Medical: The medical department provides health services to all employees through
Airline and Airport Organisation physical exams and emergency treatment and establishes health criteria for hiring new
employees.
Legal: This administration is responsible for handling all legal matters, including
claims against the company loss of or damage to the property of others and of injuries
to persons.
Advertising: Advertising is an extremely important marketing department, particularly
in today’s competitive environment.

13.12 QUESTIONS FOR DISCUSSION

1. Explain the various levels of management.
2. What do you understand by decision-making?
3. Describe the functions of management.
4. Discuss the principles of organization planning.
5. Describe the concept of staff departments.
6. Explain the corporate communications.
7. Discuss the flight-serving passengers.
8. Write short notes on:
(a) Personnel
(b) Medical
(c) Legal

Check Your Progress: Model Answers

CYP 1
1. Board of directors
2. Operating management
3. Top management

CYP 2
1. Flight serving passenger
2. Planning

13.13 SUGGESTED READINGS

S. K. Khanna, M. G. Arora, S. S. Jain, Airport Planning & Design.
Caves, Robert E. & Gosling, Geoffrey, D., (1999), Strategic Airport Planning,
Elsevier Science Ltd. Kidlington, Oxfordshire.
Norman Ashford, Paul H. Wright, Airport Engineering, John Wiley & Sons Ltd. S.
Ramanathan, Airport Management, Scope Publishers, New Delhi.
 179
LESSON Global and Indian Authorities
of Airport Management
(DGCA, AAI)

14
GLOBAL AND INDIAN AUTHORITIES OF
AIRPORT MANAGEMENT (DGCA, AAI)

CONTENTS
14.0 Aims and Objectives
14.1 Introduction
14.2 International Air Transport Association (IATA)
14.2.1 Aims of IATA
14.2.2 IATA’s Two-tier Systems
14.2.3 Growth and Development
14.3 World Trade Organization
14.4 World Tourism Organization (WTO)
14.5 International Civil Aviation Organization (ICAO)
14.5.1 ICAO’s Objectives
14.5.2 ICAO’s Strategic Planning
14.6 Federal Aviation Administration (FAA)
14.7 Civil Aviation Authority – UK
14.8 Director General of Civil Aviation (DGCA) – India
14.8.1 Directorate of Regulations and Information
14.8.2 Functions of DGCA
14.8.3 Air Service Agreements (Bilateral Agreements)
14.8.4 Air Transport Services (International Scheduled Services)
14.8.5 Domestic Scheduled Operators
14.8.6 Airworthiness
14.8.7 Airborne Collision Avoidance System (ACAS)
14.8.8 Training and Licensing of Air Crew
14.8.9 Conduct of Examinations
14.8.10 Flight Inspection Directorate (FID)
14.8.11 Licensing of Aerodromes
14.8.12 Air Safety
14.8.13 Aircraft Accidents
14.8.14 Safety Audit of Airlines
14.9 Airport Authority of India
14.9.1 Constitution and Incorporation of the Authority
14.9.2 Functions of Authority
Contd…
180 14.10 Let us Sum up
Airline and Airport Organisation
14.11 Lesson End Activity
14.12 Keywords
14.13 Questions for Discussion
14.14 Suggested Readings

14.0 AIMS AND OBJECTIVES

After studying this lesson, you should be able to:
z Discuss the different authorities of airport management
z Explain the role of the Airport Authority of India

14.1 INTRODUCTION
The lesson describes about the formation and the role played by different airport
agencies. The agencies discussed in this lesson are International Air Transport
Association (IATA), World Trade Organization, World Tourism Organization,
International Civil Aviation Organization (ICAO), Federal Aviation Administration
(FAA), Civil Aviation Authority – UK and Airport Authority of India (AAI).

14.2 INTERNATIONAL AIR TRANSPORT ASSOCIATION

(IATA)
The International Air Transport Association was founded in Havana, Cuba, in April
1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable,
secure and economical air services - for the benefit of the world’s consumers. The
international scheduled air transport industry is now more than 100 times larger than it
was in 1945. Few industries can match the dynamism of that growth, which would
have been much less spectacular without the standards, practices and procedures
developed within IATA. At its founding, IATA had 57 Members from 31 nations,
mostly in Europe and North America. Today, it has over 270 Members from more
than 140 nations in every part of the globe. The modern IATA is the successor to the
International Air Traffic Association founded in The Hague in 1919 – the year of the
world’s first international scheduled services.
International air transport is one of the most dynamic and fastest-changing industries
in the world. It needs a responsive, forward-looking and universal trade association,
operating at the highest professional standards. IATA is that association. IATA brings
together approximately 265 airlines, including the world’s largest. Flights by these
airlines comprise 94 per cent of all international scheduled air traffic. Since these
airlines face a rapidly changing world, they must cooperate in order to offer a
seamless service of the highest possible standard to passengers and cargo shippers.
Much of that cooperation is expressed through IATA, whose mission is to “represent,
lead and serve the airline industry”.
Continual efforts by IATA ensure that people, freight and mail can move around the
vast global airline network as easily as if they were on a single airline in a single
country. In addition, IATA helps to ensure that Members’ aircraft can operate safely,
securely, efficiently and economically under clearly defined and understood rules. For
consumers, IATA simplifies the travel and shipping process. By helping to control
airline costs, IATA contributes to cheaper tickets and shipping costs. Thanks to airline
cooperation through IATA, individual passengers can make one telephone call to 181
reserve a ticket, pay in one currency and then use the ticket on several airlines in Global and Indian Authorities
of Airport Management
several countries – or even return it for cash refund. (DGCA, AAI)
IATA is also a collective link between third parties and the airlines. Passenger and
cargo agents are able to make representations to the industry through IATA and derive
the benefit of neutrally applied agency service standards and levels of professional
skill. Equipment manufacturers and third-party service providers are able to join in the
airline meetings, which define the way air transport goes about its business. IATA
allows airlines to operate more efficiently. It offers joint means – beyond the resources
of any single company – of exploiting opportunities, reducing costs and solving
problems. Airlines knit their individual networks into a worldwide system through
IATA, despite differences in language, currencies, laws and national customs.
IATA is a useful means for governments to work with airlines and draw on their
experience and expertise. Working standards within the aviation industry are
developed within IATA. In fostering safe and efficient air transport, IATA serves the
stated policies of most of the world’s governments.

14.2.1 Aims of IATA

The aims of IATA are to:
z Promote safe, regular and economical air transport for the benefit of the peoples of
the world, to foster air commerce, and to study the problems connected therewith;
z Provide means for collaboration among the air transport enterprises engaged
directly or indirectly in international air transport service; and
z Cooperate with the newly created International Civil Aviation Organization
(ICAO – the specialized United Nations agency for civil aviation) and other
international organizations.
The most important tasks of IATA during its earliest days were technical, because
safety and reliability are fundamental to airline operations. These require the highest
standards in air navigation, airport infrastructure and flight operations. The IATA
airlines provided vital input to the work of ICAO, as that organization drafted its
Standards and commended Practices. By 1949, the drafting process was largely
complete and reflected in “Annexes” to the Chicago convention, the treaty which still
governs the conduct of international civil aviation. In those early days, ICAO
coordinated regional air navigation and support for airports and operational aids in
countries, which could not themselves, afford such services. IATA provided airline
input to ICAO and to sessions of the International Telecommunications Union on
wavelength allocation.
The standardization of documentation and procedures for the smooth functioning of
the world air transport network also required a sound legal basis. IATA helped to
interlock international conventions, developed through ICAO, with US air transport
law, which had developed in isolation prior to World War Two. The Association made
a vital input to the development of Conditions of Carriage, the contract between the
customer and the transporting airline. One early item on the legal agenda was revision
and modernization of the Warsaw Convention – originally signed in 1929 – on airline
liability for passenger injury or death and cargo damage or loss. This work continues
once they were operating within a sound technical and legal framework. Airlines’ next
requirements were for answers to questions such as: who can fly where? What prices
are to be charged? How is the money from multi-airline journeys – that is,
interlining – to be divided up, and how do airlines settle their accounts?
The Chicago Conference of 1944, which gave birth to the Chicago Convention tried to
achieve a multilateral answer to the first two questions, but failed to do so. The
182 questions of who flies, and where, were resolved on a bilateral basis. The benchmark
Airline and Airport Organisation Bermuda Agreement of 1946 between the US and the UK was the first of almost
4,000 bilateral air transport agreements so far signed and registered with ICAO. In the
early days, governments insisted on the right to oversee the prices charged by
international airlines, but could not in practical terms, develop those prices for
themselves. IATA was delegated to hold Traffic Conferences for this purpose, with all
fares and rates subject to final government approval. The aim was twofold: ensuring
that fares and rates would not involve cut-throat competition, while ensuring that they
could be set as low as possible, in the interests of consumers.
A coherent pattern of fares and rates pattern was established, avoiding inconsistencies
between tariffs affecting neighbouring countries – and thereby avoiding traffic
diversion. The predictability of fares and rates in this pattern also enabled airlines to
accept each other’s tickets on multi-sector journeys and thus gave birth to interlining.
Today, 50 million international air passengers a year pay for their ticket in one place,
in one currency, but complete their journey using at least two, and sometimes five or
more, airlines from different countries using different currencies. The first worldwide
Traffic Conference was held in Rio de Janeiro in 1947. It reached unanimous
agreement on nearly 400 resolutions covering all aspects of air travel. Fare
construction rules for multi-sector trips, revenue allocation – pro-rating – rules,
baggage allowances, ticket and air waybill design and agency appointment procedures
were typical details agreed at this pioneering meeting.
Today, that pioneering work is reflected in the currently applicable IATA Resolutions
dealing with these and many other subjects. Notable examples are as follows:
Multilateral Interline Traffic Agreements: These are the basis for the airlines’
interline network. About 300 airlines have signed and accepted each other’s tickets
and air waybills – and thus their passenger and cargo traffic – on a reciprocal basis.
Passenger and Cargo Services Conference Resolutions: These prescribe a variety of
standard formats and technical specifications for tickets and air way bills.
Passenger and Cargo Agency Agreements & Sales Agency Rules: These govern the
relationships between IATA Member airlines and their accredited agents with regard
to passenger and cargo.
Debt Settlement between airlines, largely arising from interlining, takes place through
the Clearing House, which began operations in January 1947. During its first year, 17
airlines cleared (US) $26 million. By 1994, the Clearing House had 380 participants
including non-airlines. The total cleared was (US) $22.8 billion. Typically, almost 90
per cent of debts between participants are offset and there is no need for cash transfers.

14.2.2 IATA’s Two-tier Systems

Between the late 1940s and the early 1970s, it could be said that flight was
transformed from “a scientific phenomenon to a public utility at the disposal of the
entire world.” At the same time, the popularization of civil aviation led to growing
demands that the “public utility” view of the industry on the part of governments be
modified to encompass greater competition and wider access to markets. These
demands were fuelled by competition for leisure travellers provided by charter
companies and the challenge of stimulating demand to fill the new wide-bodied
aircraft. Potential demand for air travel had extended well beyond the original client
base of bureaucrats, businessmen and the well to do. New travel products and greatly
increased price flexibility were needed. As a result, the old basis for conducting IATA
Traffic Conferences needed modification.
At the same time, the US Government, which had first given IATA Traffic 183
Conferences immunity from national anti-trust law in 1946, began its own review of Global and Indian Authorities
of Airport Management
air transport regulation, which, although domestic in scope, was bound to have (DGCA, AAI)
international repercussions. The international dimension of the US review resulted in a
“Show Cause Order”. Hearings took place in 1979, at which IATA was called upon to
show causes why anti-trust immunity should not be removed from its Tariff
Coordination activities. The outcome mainly affected North Atlantic passenger fares
which, for some years, were subject to special rules under an inter-governmental
Memorandum of Understanding (MoU) between the US and ECAC states. The
present position is that all Tariff Coordination activities continue to be protected.
Eventually, IATA was re-organized on a two-tier basis in October 1979. The tiers
comprised:
Trade Association: Technical, legal, financial, traffic services and most agency
matters.
Tariff Coordination: Passenger fares, cargo rates, and related conditions and charges.

14.2.3 Growth and Development

Taking account of its present size and average annual world growth rates in the range
of 5-6 per cent – typically, twice the rate of general economic growth – air transport
has a dynamism undiminished from its pioneering days. IATA’s role in it remains
central. The market for air transport has changed beyond recognition during the
history of the modern IATA. The industry continues to change and IATA is adapting
to meet the new needs. However, one thing has not changed – the necessity to provide
service. IATA helps the airlines to achieve this objective as they meet the new
demands of the 21st century. In large measure, the airlines have created a modern,
interdependent world over the past 50 years. IATA is working to ensure that the
world’s most exciting industry meets its greatest possible potential.

14.3 WORLD TRADE ORGANIZATION (WTO)

The World Trade Organization is the only global international organization dealing
with the rules of trade between nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading nations and ratified in their
parliaments. The goal is to help producers of goods and services, exporters, and
importers conduct their business. The WTO’s rules — the agreements — are the result
of negotiations between the members. The current set were the outcome of the 1986–
94 Uruguay Round negotiations which included a major revision of the original
General Agreement on Tariffs and Trade (GATT). GATT is now the WTO’s principal
rulebook for trade in goods. The Uruguay Round also created new rules for dealing
with trade in services, relevant aspects of intellectual property, dispute settlement, and
trade policy reviews. Through these agreements, WTO members operate a
non-discriminatory trading system that spells out their rights and their obligations.
Each country receives guarantees that its exports will be treated fairly and consistently
in other countries’ markets. Each promises to do the same for imports into its own
market. The system also gives developing countries some flexibility in implementing
their commitments.
Goods: It all began with trade in goods. From 1947 to 1994, GATT was the forum for
negotiating lower customs duty rates and other trade barriers; the text of the General
Agreement spelt out important rules, particularly non-discrimination. Since 1995, the
updated GATT has become the WTO’s umbrella agreement for trade in goods. It has
annexes dealing with specific sectors such as agriculture and textiles, and with specific
184 issues such as state trading, product standards, subsidies and actions taken against
Airline and Airport Organisation dumping.
Services: Banks, insurance firms, telecommunications companies, tour operators,
hotel chains and transport companies looking to do business abroad can now enjoy the
same principles of freer and fairer trade that originally only applied to trade in goods.
These principles appear in the new General Agreement on Trade in Services (GATS).
WTO members have also made individual commitments under GATS stating which of
their services sectors they are willing to open to foreign competition, and how open
those markets are. Air Transport services come under the GATS principles.
Intellectual property: The WTO’s intellectual property agreement amounts to rules
for trade and investment in ideas and creativity. The rules state how copyrights,
patents, trademarks, geographical names used to identify products, industrial designs,
integrated circuit layout-designs and undisclosed information such as trade secrets —
“intellectual property” — should be protected when trade is involved.
Dispute settlement: The WTO’s procedure for resolving trade quarrels under the
Dispute Settlement Understanding is vital for enforcing the rules and therefore for
ensuring that trade flows smoothly. Countries bring disputes to the WTO if they think
their rights under the agreements are being infringed. Judgments by specially
appointed independent experts are based on interpretations of the agreements and
individual countries’ commitments. The system encourages countries to settle their
differences through consultation. Failing that, they can follow a carefully mapped out,
stage-by-stage procedure that includes the possibility of a ruling by a panel of experts,
and the chance to appeal the ruling on legal grounds. Confidence in the system is
borne out by the number of cases brought to the WTO – around 300 cases in
eight years compared to the 300 disputes dealt with during the entire life of GATT
(1947–94).
Policy review: The Trade Policy Review Mechanism’s purpose is to improve
transparency, to create a greater understanding of the policies that countries are
adopting, and to assess their impact. Many members also see the reviews as
constructive feedback on their policies. All WTO members must undergo periodic
scrutiny, each review containing reports by the country concerned and the WTO
Secretariat. The WTO has nearly 150 members, accounting for over 97% of world
trade. Around 30 others are negotiating membership. Decisions are made by the entire
membership. This is typically by consensus. A majority vote is also possible but it has
never been used in the WTO, and was extremely rare under the WTO’s predecessor,
GATT. The WTO’s agreements have been ratified in all members’ parliaments. The
WTO’s top-level decision-making body is the Ministerial Conference, which meets at
least once every two years.

14.4 WORLD TOURISM ORGANIZATION

The World Tourism Organization (WTO), a specialized agency of the United Nations,
is the leading international organization in the field of tourism. It serves as a global
forum for tourism policy issues and practical source of tourism knowhow. With its
headquarters in Madrid, Spain, the WTO plays a central and decisive role in
promoting the development of responsible, sustainable and universally accessible
tourism, with the aim of contributing to economic development, international
understanding, peace, prosperity and universal respect for, and observance of, human
rights and fundamental freedoms. In pursuing this aim, the Organization pays
particular attention to the interests of developing countries in the field of tourism. The
WTO plays a catalytic role in promoting technology transfers and international
cooperation, in stimulating and developing public-private sector partnerships and
encouraging the implementation of the Global Code of Ethics for Tourism, with a 185
view to ensuring that member countries, tourist destinations and businesses maximize Global and Indian Authorities
of Airport Management
the positive economic, social and cultural effects of tourism and fully reap its benefits. (DGCA, AAI)
In 2005, the WTO’s membership is comprised of 145 countries, seven territories and
more than 300 Affiliate Members representing the private sector, educational
institutions, tourism associations and local tourism authorities.
Tourism is one of the major money-spinning industries in many countries and the
fastest-growing economic sector in terms of foreign exchange earnings and job
creation. International tourism is the world’s largest export earner and an important
factor in the balance of payments of most nations. Tourism has become one of the
world’s most important sources of employment. It stimulates enormous investment in
infrastructure, most of which also helps to improve the living conditions of local
people. It provides governments with substantial tax revenues. Air Transport plays a
vital role in the growth and development of international and domestic tourism. About
95.0% of the international tourist arrivals are depending on air transport services.
Therefore, Tourism and air transport has a close relationship.

14.5 INTERNATIONAL CIVIL AVIATION

ORGANIZATION (ICAO)
The outcome of the studies begun by the US, and the succeeding consultations
between the Major Allies, was that the US government extended an invitation to
55 States to attend an International Civil Aviation Conference in Chicago in
November 1944, at the end of which a Convention on International Civil Aviation was
signed by 32 States to set up the permanent International Civil Aviation Organization
as a means to secure international cooperation for a highest possible degree of
uniformity in regulations and standards, procedures and organization regarding civil
aviation matters. At the same time the International Services Transit Agreement and
the International Air Transport Agreement were signed.
The most important work accomplished in the technical field by the Chicago
Conference was that it laid the foundation for a set of rules and regulations regarding
air navigation safety and paved the way for the application of a common air
navigation system throughout the world. ICAO was firmly established in 1947, and it
was realized that the work of the Secretariat, especially in the technical field, would
have to cover two major activities:
1. Those which covered generally applicable rules and regulations concerning
training and licensing of aeronautical personnel both in the air and,
2. On the ground, communication systems and procedures, rules for the air and air
traffic control systems and practices, airworthiness requirements for aircraft
engaged in international air navigation as well as their registration and
identification, aeronautical meteorology and maps and charts.
For obvious reasons, these aspects required uniformity on a worldwide scale if truly
international air navigation was to become a possibility. Activities in these fields had
therefore to be handled by a central agency, i.e., ICAO headquarters, if local
deviations or separate developments were to be avoided. The 96 articles of the
Chicago Convention establish the privileges and restrictions of all contracting states
and provide for the adoption of “International Standards and Recommended Practices
(SARPs)” regulating international air transport.
186 The main aim and objectives of ICAO, as contained in Article 44 of the Chicago
Airline and Airport Organisation Convention are to develop the principles and techniques of international air navigation
and to foster the planning and development of international air transport so as to:
z Insure the safe orderly growth of international civil aviation throughout the world
z Encourage the arts of aircraft design and operation for peaceful purpose
z Encourage the development of airways, airports and air navigation facilities for
international civil aviation
z Meet the needs of the peoples of the world for safe, regular, efficient and
economical air transport
z Prevent economic waste caused by unreasonable competition
z Insure that the rights of contracting states are fully respected and that every
contracting state has fair opportunity to operate international airlines
z Avoid discrimination between contracting states
z Promote safety of flight in international air navigation
z Promote generally the development of all aspects of international civil aeronautics
z At present, there are 189 countries that are the members of the International Civil
Aviation Organization (ICAO), as on September 2005.

14.5.1 ICAO’s Objectives

Standardization
ICAO’s principal activities are standardization, the establishment of International
Standards, Recommended Practices and Procedures (SRPP) covering the technical
fields of aviation: licensing of personnel, rules of the air, aeronautical meteorology,
aeronautical charts, units of measurement, operation of aircraft, nationality and
registration marks, airworthiness, aeronautical telecommunications, air traffic
services, search and rescue, aircraft accident investigation, aerodromes, aeronautical
information services, aircraft noise and engine emissions, security and the safe
transport of dangerous goods. After a Standard is adopted, it is put into effect by each
ICAO Contracting State in its own territories. As aviation technology continues to
develop rapidly, the Standards are kept under constant review and amended as
necessary.

Communication Navigational Surveillance/Air Traffic Management

ICAO’s most recent significant achievements have been the development of a
satellite-based system concept to meet the future Communications, Navigation and
Surveillance/Air Traffic Management (CNS/ATM) needs of civil aviation.
CNS/ATM, formerly known as the Future Air Navigation Systems (FANS) concept, is
essentially the application of today’s high technologies in satellites and computers,
data links and advanced flight deck avionics, to cope with tomorrow’s growing
operational needs. It produces economies, efficiencies and greater safety. This will be
its further impact as an integrated global system, with consequential changes to the
way air traffic services are organized and operated. The CNS/ATM systems concept
has received the endorsement of ICAO Member States, and is now in its
implementation phase. This major task includes the development of standards,
recommended practices and guidance material, which will be applied well into the
21st century.
Regional Planning 187
Global and Indian Authorities
Aviation tribulations are on a worldwide scale with various specialized/ of Airport Management
professionalized subjects on a regional basis. ICAO recognizes nine geographical (DGCA, AAI)
regions, for planning the provision of air navigation facilities and services required on
the ground by aircraft flying in these regions. In each of the regions, keeping in mind
the objective of producing a seamless global air traffic management system, careful
planning is necessary to produce the network of air navigation facilities and services
upon which the aero planes depend the aerodromes, the meteorological and
communications stations, the navigation aids, the air traffic control units, the search
and rescue bases, the thousands of facilities to be established and operated and the
services to be rendered. The plan, which emerges from a regional meeting, is so
designed that, when the States concerned implement it, it will lead to an integrated,
efficient system for the entire region and contribute toward the global system. When
States require assistance in this regard, ICAO’s help is available through seven
regional offices, each one accredited to a group of Contracting States. These offices
have as their main function, the duty of encouraging, assisting, expediting and
following up the implementation of the Air Navigation Plans and maintaining them up
to date. In addition, regional planning and implementation groups have been
established in ICAO regions to assist the regional offices in keeping the regional plans
up-to-date and in fostering their implementation.

Facilitation
ICAO has tried to persuade its Contracting States to reduce red tape, and International
Standards on facilitation. In addition to reducing procedural formalities, ICAO’s
efforts are also aimed at providing adequate airport terminal buildings for passengers
and their baggage as well as for air cargo, with all related facilities and services. The
obstacles placed by customs, immigration, public health and other formalities on the
free and unimpeded passage of passengers and cargo across international boundaries
have been a particularly serious impediment to air travel.

Economics
International Civil Aviation requires international air transport services to be
established on the basis of equality of opportunity and operated soundly and
economically. In fact, ICAO’s basic objective is the development of safe, regular,
efficient and economical air transport. To assist States in planning their air transport
services, ICAO collects and publishes comprehensive world aviation statistical data,
and undertakes extensive economic studies in line with Resolutions of the ICAO
Assembly and Recommendations of worldwide conferences. ICAO also produces
manuals for the guidance of States in such areas as statistics, air traffic forecasting,
airport and air navigation facility tariffs, the economic regulation of air transport and
the establishment of airfares and rates.

Technical Cooperation for Development

ICAO pays special attention to promoting civil aviation in developing countries. An
important instrument in this work has been the United Nations Development
Programme. So far, most of the Organization’s work in this area has been directed
toward the development of the ground services required for civil aviation and, in
particular, toward aerodromes, air traffic control, communications and meteorological
services; in the past few years, and with the advent of larger and more complex
aircraft, requests for assistance in the more sophisticated fields of aviation, including
airports operations, have been increasing in number. In response to the alarming
incidents in recent years of acts of unlawful interference against aircraft and airports,
188 ICAO also provides assistance to States in order to improve their aviation security
Airline and Airport Organisation facilities and procedures.

Law
ICAO has more than one hundred and eighty nine Contracting States. There are many
legal philosophies and different systems of jurisprudence. Therefore to unify this, the
development of a code of international air law is mandatory. It is a function of ICAO
to facilitate the adoption of international air law instruments and to promote their
general acceptance. So far, many international air law instruments have been adopted
under the Organization’s auspices involving such varied subjects as the international
recognition of property rights in aircraft, damage done by aircraft to third parties on
the surface, the liability of the air carrier to its passengers, crimes committed on board
aircraft, the marking of plastic explosives for detection and unlawful interference with
civil aviation.

14.5.2 ICAO’s Strategic Planning

Today, international civil aviation industry faces major challenges, and therefore,
there is a need for ICAO to adapt framework of the Convention to rapidly changing
scenarios based on the following aims in strategic planning of the industry:
z Globalization and trans nationalization of markets and operations
z Emergence of regional and sub-regional trading and regulatory blocks
z Commercialization of government service providers
z Diversification of fiscal measures to respond to budgetary needs
z Liberalization of economic regulation
z Potential evasion of safety regulation
z Blurring of sectoral boundaries and responsibilities of related authorities

14.6 FEDERAL AVIATION ADMINISTRATION (FAA)

Federal Aviation Administration is the component of the U.S. Department of
Transportation which sets the standards for the air-worthiness of all civilian aircraft,
inspects and licenses them, and regulates civilian and military air traffic through its air
traffic control centres. It investigates air accidents and in response may establish new
rules, for example, on de-icing and airframe inspections. It also promotes the
development of a national system of airports. Established as a federal agency in 1958
to regulate air commerce, it combined the Civil Aeronautics Administration and the
Airways Modernization Board. The agency became part of the newly formed
Transportation Dept. in 1967.
The Federal Aviation Administration is the entity of the United States government,
which regulates and oversees all aspects of civil aviation in the US Activities. Along
with the European Joint Aviation Authorities, the FAA is one of the two main
agencies worldwide responsible for the certification of new aircraft. The FAA issues a
number of awards to holders of its licenses. Among these are demonstrated
proficiencies as a mechanic, an instructor, a 50-year aviator, or as a safe pilot. The
latter, the FAA “Wings Program,” provides a series of ten badges for pilots who have
undergone several hours of training since their last award. A higher level can be
claimed each year. For more information see “FAA Advisory Circular 61-91H.”
History: The Air Commerce Act of May 20, 1926 is the cornerstone of the Federal
Government’s regulation of civil aviation. This landmark legislation was passed at the
urging of the aviation industry, whose leaders believed the airplane could not reach its 189
full commercial potential without federal action to improve and maintain safety Global and Indian Authorities
of Airport Management
standards. The Act charged the Secretary of Commerce with fostering air commerce, (DGCA, AAI)
issuing and enforcing air traffic rules, licensing pilots, certifying aircraft, establishing
airways, and operating and maintaining aids to air navigation. A new Aeronautics
Branch of the Department of Commerce assumed primary responsibility for aviation
oversight.
In fulfilling its civil aviation responsibilities, the Department of Commerce initially
concentrated on such functions as safety rule making and the certification of pilots and
aircraft. It took over the building and operation of the Nation’s system of lighted
airways, a task that had been begun by the Post Office Department! The Department
of Commerce improved aeronautical radio communications and introduced radio
beacons as an effective aid to air navigation.
The Aeronautics Branch was renamed the Bureau of Air Commerce in 1934 to reflect
its enhanced status within the Department. As commercial flying increased, the
Bureau encouraged a group of airlines to establish the first three centres for providing
Air Traffic Control (ATC) along the airways. In 1936, the Bureau itself took over the
centres and began to expand the ATC system. The pioneer air traffic controllers used
maps, blackboards, and mental calculations to ensure the safe separation of aircraft
traveling along designated routes between cities.
In 1938, the Civil Aeronautics Act transferred the federal civil aviation responsibilities
from the Commerce Department to a new independent agency, the Civil Aeronautics
Authority. The legislation also expanded the government’s role by giving them the
authority and the power to regulate airline fares and to determine the routes that air
carriers would serve.
President Franklin Roosevelt split the authority into two agencies in 1940, the Civil
Aeronautics Administration (CAA) and the Civil Aeronautics Board (CAB). CAA was
responsible for ATC, airman and aircraft certification, safety enforcement, and airway
development. CAB was entrusted with safety rulemaking, accident investigation, and
economic regulation of the airlines. Both organizations were part of the Department of
Commerce. Unlike CAA, however, CAB functioned independently of the Secretary.
On the eve of America’s entry into World War II, CAA began to extend its ATC
responsibilities to take-off and landing operations at airports. This expanded role
eventually became permanent after the war. The application of radar to ATC helped
controllers in their drive to keep abreast of the post-war boom in commercial air
transportation. In 1943, meanwhile, Congress gave CAA the added task of
administering the federal-aid airport program, the first peacetime program of financial
assistance aimed exclusively at promoting development of the nation’s civil airports.
The approaching era of jet travel, and a series of mid-air collisions, prompted passage
of the Federal Aviation Act of 1958. This legislation gave the CAA’s functions to a
new independent body, the Federal Aviation Agency. The Act transferred air safety
rulemaking from the CAB to the new FAA, and also gave the FAA sole responsibility
for a common civil-military system of air navigation and air traffic control. The
FAA’s first administrator, Elwood R.Quesada, was a former Air Force general and
advisor to President Eisenhower.
The same year witnessed the birth of the National Aeronautics and Space
Administration (NASA), created in the wake of the Soviet launching of the first
artificial satellite, Sputnik. NASA assumed NACA’s role of aeronautical research
while achieving world leadership in space technology and exploration. In 1967, a new
U.S. Department of Transportation (DOT) combined major federal responsibilities for
190 air and surface transport. FAA’s name changed to the Federal Aviation
Airline and Airport Organisation Administration, as it became one of several agencies within DOT. At the same time, a
new National Transportation Safety Board took over the CAB’s role of investigating
aviation accidents.
The FAA gradually assumed additional functions. The hijacking epidemic of the
1960s had already brought the agency into the field of civil aviation security, a
responsibility now primarily taken by the Department of Homeland Security. The
FAA became more involved with the environmental aspects of aviation in 1968 when
it received the power to set aircraft noise standards. Legislation in 1970 gave the
agency management of a new airport aid program and certain added responsibilities
for airport safety. During the 1960s and 1970s, the FAA also started to regulate high
altitude (over 500 feet) kite and balloon flying.
By the mid-1970s, the FAA had achieved a semi-automated air traffic control system
using both radar and computer technology. This system required enhancement to keep
pace with air traffic growth, however, especially after the Airline Deregulation Act of
1978 phased out the CAB’s economic regulation of the airlines. A nationwide strike
by the air traffic controllers union in 1981 forced temporarily flight restrictions but
failed to shut down the airspace system. During the following year, the agency
unveiled a new plan for further automating its air traffic control facilities, but progress
proved disappointing. In 1994, the FAA shifted to a more step-by-step approach that
has provided controllers with advanced equipment. In the 1990s, satellite technology
received increased emphasis in the FAA’s development programs as a means of
bringing about improvements in communications, navigation, and airspace
management. In 1995, the agency assumed responsibility for safety oversight of
commercial space transportation, a function begun eleven years before by an office
within DOT headquarters.
Check Your Progress 1
Fill in the blanks:
1. The Aeronautics Branch was renamed the ………………. in 1934 to
reflect its enhanced status within the Department.
2. The …………………… a specialized agency of the United Nations, is the
leading international organization in the field of tourism.

14.7 CIVIL AVIATION AUTHORITY – UK

The CAA is public corporation established under parliament in 1972, as an
independent specialist aviation regulator and provider of air transport service.
Following the separation of National Air traffic services from CAA in 2001, the CAA
is now the UK’s independent aviation regulator, with all civil aviation regulatory
functions such as Economic Regulation, Airspace Policy, Safety Regulation and
Consumer Protection integrated within a single specialist body.

CAA

Economic Air Space Safety Consumer

Regulation Policy Regulation Protection

Figure 14.1: Functions of the Civil Aviation Authority, UK

1. Economic Regulation: Economic Regulation (ERG) regulates airports, air traffic 191
services, airlines and provides advice on aviation policy from an economic point Global and Indian Authorities
of Airport Management
of view. Its main aim is to secure the best sustainable outcome for users of an air (DGCA, AAI)
transport services. The main task of Economic Regulation is to promote
liberalization through the removal of government imposed restrictions to entry to
the airline market and to facilitate the optimal supply and regulation of aviation
infrastructure. The major economic regulated responsibilities are:
(a) Economic Regulation of Airports,
(b) Economic Regulation of National Air Traffic services,
(c) Economic Policy Advice to Government,
(d) Statistics, and
(e) Surveys.
2. Air Space Policy: CAA is responsible in overseeing the function of the planning
and regulation of all UK air space including the navigation and communication
infrastructure to support safe and efficient operations. The needs of all users are
accommodated as far as possible with regard to safety and environmental,
economic and national security standards. The major responsibilities are:
(a) Aeronautical Charts,
(b) Air Space Utilization,
(c) En Route Air Space,
(d) Off Route Air Space,
(e) Surveillance & Spectrum Management,
(f) Terminal Air Space, and
(g) MET Authority.
3. Consumer Protection: The Consumer Protection Group (CPG) of CAA is
responsible for Air Transport Value towards the consumers, who are using the
facilities of air transport services, namely – airports and air travel services.
(a) Management of Air Travel Organizers
(b) Licensing System, which includes Granting Air Travel Organizers’ Licenses
to travel firms
(c) Granting Operating Licenses
(d) Route Licensees and Air Transport Licenses to Airlines
(e) The code of practice which sets out the standards and the levels of service
which applicants and license holders may accept.
(f) Proportionality and Value for Money
(g) Helpfulness.
The major responsibilities are:
(a) Regulate the finance and fitness of Travel Organizers Selling Flights &
Package Holidays in the UK.
(b) Manage the UK largest system for Consumer Protection for Travellers, Air
Travel Organizers Licensing or ATOL.
192 (c) License UK airlines and enforce European Council requirements in relation to
Airline and Airport Organisation their finances, nationality and liability to passenger for death or injury and
insurance
4. Safety Regulation: CAA ensures UK Civil aviation industry standards are set and
achieved in a co-operative and cost effective manner. Safety Regulatory Group
(SRG) must satisfy itself, which aircraft are properly designed, manufactured,
operated and maintained; which airlines are competent and that flight crews, air
traffic controllers and Aircraft maintenance engineers are fit and competent;
licensed aerodromes are safe to use and that air traffic services and general
aviation activities meet required safety standards.
5. Single European Sky: The Single European Sky initiative originated with EC in
1999, when there was general dissatisfaction with the levels of delays experienced
by airlines and passengers. A High Level Group (HLG) was established by the
European Commission (EC) to investigate the report on the underlying issues. The
greater thrust of the HLG’s recommendations was accepted by member states of
the European Union and this has resulted in four legislative measures, which came
into effect on April 2004. These documents explain the principles of the Single
European Sky, and provide information regarding

Functional Air Space Blocs

Set out proposals for the flexible for the provision of Air Navigation Services.
Further, the CAA laid out certain aviation policies in 2003 in order to oversee the
Economics, Air space, Regulation and Environmental issues. Aviation infrastructure
policy is also initiated in order to augment the capacity constraints in all European
airports. Market driven mechanism has been adopted through liberalization in the civil
aviation industry at European Union.

14.8 DIRECTOR GENERAL OF CIVIL AVIATION

(DGCA) – INDIA
The Directorate General of Civil Aviation is the prime regulatory organization in
India, in the field of Civil Aviation. It is accountable for regulation of air transport
services to/from/within India and for formulation and enforcement of civil air
transport regulations, air safety and airworthiness standards. It is also co-ordinates all
regulatory functions with the International Civil Aviation Organization. The
Directorate General of Civil Aviation is headed by the Director General of Civil
Aviation whose headquarters are in New Delhi. The DGCA has the following
Directorates under his supervision:

14.8.1 Directorate of Regulations and Information

z Directorate of Air Transport
z Directorate of Airworthiness
z Directorate of Air Safety
z Directorate of Training and Licensing
z Directorate of Aerodrome Standards
z Directorate of Flying Training
z Directorate of Flight Inspection
z Directorate of Research & Development
z Directorate of Administration
14.8.2 Functions of DGCA 193
Global and Indian Authorities
The Directorate General of Civil Aviation is responsible for: of Airport Management
(DGCA, AAI)
z Laying down rules and regulations for implementation of ICAO Standards and
Recommended Practices;
z Regulation of air transport services to/from/within India;
z Registration of civil aircraft in India;
z Formulation of standards of airworthiness for civil aircraft registered in India and
grant of Certificate of Airworthiness to such aircraft;
z Licensing of pilots, aircraft maintenance engineers and flight engineers;
z Licensing of aerodromes in India;
z Carrying out investigations into air accidents and incidents;
z Implementation of bilateral air services agreements with foreign countries;
z Rendering advice on matters pertaining to air transport;
z Processing of aviation registration;
z Supervision of the training activities of the Flying/Gliding Clubs in India;
z Development of light aircraft, gliders and winches; and
z Certification of aircraft.

14.8.3 Air Service Agreements (Bilateral Agreements)

DGCA is entrusted with the duty of keeping track records of bilateral agreements
between the countries. As on 2004-2005, more than 100 bilateral agreements were
made by the country with various countries, in respect of trade by means of air
transport.

14.8.4 Air Transport Services (International Scheduled Services)

As on 31st December 2004, approximately 60 foreign airlines were operating
scheduled air services to/through India, excluding Air India, Indian Airlines, Jet
Airways and Air Sahara (including 64 national carriers). In addition, 27 foreign
airlines were operating scheduled services, overflying Indian Territory. The operation
of tourist charters under the Tourist Charter Guidelines continued during the year. As
on 31st October 2000, 38 companies were holding Non-Scheduled Operator's Permit.

14.8.5 Domestic Scheduled Operators

In addition to Air India, Indian Airlines and Alliance Air, the following private
operators had the permission to operate domestic scheduled air transport services: Jet
Airways, Air Sahara, Air Deccan (2004), Spice Jet (2005), Kingfisher Airlines (2005),
Paramount Airlines (2005) and Blue Dart (Freighter).

14.8.6 Airworthiness
Registration of aircraft as on 31st January 2001: there were 1064 aircraft (including
micro light aircraft, gliders and balloons) on the Indian Civil Register, of which
26 were registered during the year 2000-2001. Out of this, 628 aircraft held current
Certificates of Airworthiness:
Licensing of Aircraft Maintenance Engineers is another responsibility of the DGCA.
A total of 5175 Aircraft Maintenance Engineers (AME) Licenses including Basic
194 Aircraft Maintenance Engineers Certificates (BAMEC) and 282 Flight Engineers (FE)
Airline and Airport Organisation certificates have been issued so far, of which 319 AME Licenses have been issued
during the year 2000-2001. Approval of firms: so far, a total of 544 firms, including
71 foreign firms, have been approved for manufacture, maintenance, testing, storage,
etc., of aircraft, aircraft components/equipment.

14.8.7 Airborne Collision Avoidance System (ACAS)

FAA (Federal Aviation Administration) has introduced Change 7 in TCAS to bring it
in line with ACAS II. ICAO has also given the implementation date for change 7.
Accordingly, amendments to the CAR (Civil Aviation Requirements) have been
issued in December, 2000 to include the ICAO (International Civil Aviation
Organization) requirement for Change 7 on Traffic Collision Avoidance System
(TCAS) II, which states that:
z All aeroplanes having a maximum certified passenger-seating configuration of
more than 30 or maximum payload capacity of more than 3 tonnes should be fitted
with TCAS II with change 7 (equivalent to ACAS-II) before 1.1.2003.
z All airplanes having a maximum certified passenger seating configuration of more
than 30 or maximum payload capacity of more than 3 tonnes to be imported after
1.1.2002 shall be fitted with TCAS II with change 7 (equivalent to ACAS-II).

14.8.8 Training and Licensing of Air Crew

The flying/gliding training is provided by various Flying/Gliding Clubs and Institutes
spread all over the country. At present, 44 Flying Clubs/Institutes, their branches and
Indira Gandhi Rashtriya Uran Academy (IGRUA) are imparting flying training to
student pilots in India, out of which 13 are privately owned Institutes. There are 4
Gliding Clubs and 5 Gliding Wings of the Flying Clubs, besides a Government
Gliding Centre at Pune run by the Directorate General of Civil Aviation.

14.8.9 Conduct of Examinations

DGCA conducts various examinations for Flight Crew and Aircraft Maintenance
Engineers (AME). The Pilot's (General) subject examinations are conducted four
times and AME's License examinations are conducted three times in a year. In
addition, several special sessions are also conducted to give ample opportunity to the
Pilots and Engineers to pass DGCA License Examinations.

14.8.10 Flight Inspection Directorate (FID)

The Flight Inspection Directorate conducts regular inspections and surveillance of
scheduled airlines and their aircrew in particular to enhance the flight crew standards
and safety of operations. Continuous surveillance of various operational aspects of
operators is ensured by conducting various inspections regularly, viz., Cockpit en-
route Inspection, Cabin Inspection, Simulator Inspection, Main Base Inspections, etc.
In addition, Standardization/Proficiency Checks of Training Captains are conducted
from time to time to monitor their performance.

14.8.11 Licensing of Aerodromes

The Directorate of Aerodrome Standards deals with inspection and
licencing/authorisation of aerodromes/heliports and monitoring the aircraft operations
at aerodromes vis-à-vis the facilities provided at the aerodromes and heliports
approved and granted by the Directorate.
14.8.12 Air Safety 195
Global and Indian Authorities
The Air Safety Directorate carries out its duties and tasks assigned, relative to the of Airport Management
investigation of notifiable accidents/incidents, prevention of accidents/incidents and (DGCA, AAI)

bird strike prevention programme. Under the accident prevention programme, Air
Safety Circulars were issued, safety audit of operators was carried out, safety seminars
for operators were organized and various aerodromes were inspected. Follow-up
action was also taken on the recommendations springing from the inquiry reports of
aircraft accidents/incidents. The bird strike prevention programme was also carried out
at the airport level.

14.8.13 Aircraft Accidents

To overcome accidents and air collisions, DGCA is insisting on 100% Monitoring of
Flight Data, which is made mandatory for all scheduled air transport operators and
major non-scheduled operators having aircraft equipped with DFDR to monitor flight
data of all the flights, so as to determine the extent of departures, if any, from limits
stipulated pertaining to flight parameters, operations and engineering aspects. All
scheduled Airlines like Air India, Indian Airlines, Jet Airways, Sahara India Airlines
and Alliance Air have commissioned the above programme in their respective
organizations.

14.8.14 Safety Audit of Airlines

Dedicated Safety Audit Team of DGCA carries out periodical safety audit of aircraft
and their operational, engineering and other aviation-oriented management activities.
The deficiencies pointed out in the safety audit reports are brought to the notice of
operators for taking necessary remedial action.

14.9 AIRPORT AUTHORITY OF INDIA

14.9.1 Constitution and Incorporation of the Authority
1. With effect from the appointed day the Central Government shall by notification
in the official gazette constitute Authority to be called the Airports Authority of
India.
2. The authority shall be a body corporate by the name aforesaid having perpetual
succession and a common seal with power subject to the provision of this Act, to
acquire hold and dispose of property both movable and immovable and to contract
and shall by the said bane sue and be sued.
3. The authority shall consist of:
(a) A Chairperson to be appointed by the Central Government;
(b) The Director General OF Civil Aviation or an officer not below the rank of
the Deputy Director General of Civil Aviation to be appointed by the Central
Government ex official
(c) Not less than eight and not more than fourteen members to be appointed by
the Central Government.
4. The Chairperson shall be a whole-time member and other members referred to in
clause 9(c) of sub-section (3) may be appointed as whole-time of part-time
members as the Central Government may think fit.
5. The Chairperson and the members referred to in clause (c) of sub-section (3) shall
be chosen from among persons who have special knowledge and experience in a
196 transport services industry commercial or financial matters or administration and
Airline and Airport Organisation from among persons who are capable of representing organisation of workers and
consumers.

14.9.2 Functions of Authority

1. Subject to the rules, if any made by the Central Government in this behalf it shall
be the function of the Authority to manage the airports, the civil enlaces and the
aeronautical communication stations efficiently.
2. It shall be the duty of the Authority to provide it traffic service and air transport
service at any airport and civil enclaves.
3. Without prejudice to the generality of the provisions contained in sub-section (1)
and (2) the Authority may:
™ Plan develop construct and maintain runways, taxiways, aprons and terminals
and ancillary buildings at the airports and civil enclaves.
™ Plan, procure install and maintain navigational aids, communication
equipment beacons and ground aids at the airports and at such locations as
may be considered necessary for safe navigation and operation of aircraft.
™ Provide air safety services and search and rescue facilities in coordination
with other agencies.
™ Establish schools or institutions or centres for the training of its officers and
employees in regard to any matter connected with the purpose of this Act.
™ Construct residential buildings for its employees.
™ Establish and maintain hotels, restaurants and restrooms at or near the airport.
™ Establish warehouses and cargo complexes at the airports for the storage or
processing of goods.
™ Arrange for postal, money exchange, insurance and telephone facilities for the
use of passengers and other persons at the airports and civil enclaves.
™ Make appropriate arrangements for watch and ward at the airports and civil
enclaves.
™ Regulate and control the playing of vehicles and the entry and exit of
passengers and visitors in the airports and civil enclaves with due regard to the
security and protocol functions of the Government of India.
™ Develop and provide consultancy construction or management services and
undertake operations in India and abroad in relation to airports air-navigation
services ground aids and safety services or any facilitates thereat.
™ Establish and manage heliports and airports.
™ Provide such transport facility as are in the opinion of the Authority necessary
to the passengers travelling by air.
™ Form one or more companies under the Companies Act, 1956 (1 of 1956) or
under any other law relating to companies to further the efficient discharge of
the functions imposed on it by this Act.
™ Take all such steps as may be necessary or convenient for, or may be
incidental to, the exercise of any power or the discharge of any function
conferred or imposed on it by this Act.
 ™ Perform any other function considered necessary or desirable by the Central 197
Government for ensuring the safe and efficient operation of aircraft to from Global and Indian Authorities
of Airport Management
and across the air space of India. (DGCA, AAI)
™ Establish training institutes and worships.
™ Any other activity at the airports and the civil enclaves in the best commercial
interest of the Authority including cargo handling setting up of joint ventures
for the discharge of any function assigned to the authority.
4. In the discharge of its functions under section the Authority shall have due regard
to the development of air transport service and to the efficiency economy and
safety of such service.
5. Nothing contained in this section shall be construed as:
(a) authorising the discharged by the Authority of any law for the time being in
force or authorising any person to institute any proceeding in respect of duty
or liability to which the Authority or its officers or other employees would not
otherwise be subject.
(b) authorising any person to institute any proceeding in respect of duty or
liability to which the Authority or its officers or other employees would not
otherwise be subject.
Check Your Progress 2
Fill in the blanks:
1. …………………… is responsible for laying down rules and regulations
for implementation of ICAO Standards and Recommended Practices.
2. The Flight Inspection Directorate (FID) conducts regular ………………
and ………………….. of scheduled airlines and their aircrew in
particular to enhance the flight crew standards and safety of operations.

14.10 LET US SUM UP

IATA was founded in Havana, Cuba, in April 1945. It is the prime vehicle for
inter-airline cooperation in promoting safe, reliable, secure and economical air
services – for the benefit of the world’s consumers. The World Trade Organization
(WTO) is the only global international organization dealing with the rules of trade
between nations. The World Tourism Organization (WTO), a specialized agency of
the United Nations, is the leading international organization in the field of tourism.
ICAO as a means to secure international cooperation for a highest possible degree of
uniformity in regulations and standards, procedures and organization regarding civil
aviation matters. At the same time, the International Services Transit Agreement and
the International Air Transport Agreement were signed. The Federal Aviation
Administration is the entity of the United States government, which regulates and
oversees all aspects of civil aviation in the US Activities. The Directorate General of
Civil Aviation is the prime regulatory organization in India, in the field of Civil
Aviation.

14.11 LESSON END ACTIVITY

Prepare a note on various international travel organizations.
198
Airline and Airport Organisation
14.12 KEYWORDS
World Trade Organization (WTO): It is global international organization dealing with
the rules of trade between nations.
Flight Inspection Directorate (FID): It conducts regular inspections and surveillance
of scheduled airlines and their aircrew in particular to enhance the flight crew
standards and safety of operations.
Federal Aviation Administration (FAA): IT is the component of the U.S. Department
of Transportation which sets the standards for the air-worthiness of all civilian aircraft,
inspects and licenses them, and regulates civilian and military air traffic through its air
traffic control centres.
Civil Aviation Authority (CAA): It is UK’s independent aviation regulator, with all
civil aviation regulatory functions such as – Economic Regulation, Airspace Policy,
Safety Regulation and Consumer Protection integrated within a single specialist body.

14.13 QUESTIONS FOR DISCUSSION

1. What are the aims of IATA?
2. What do you understand by Airborne Collision Avoidance System?
3. List the functions of DGCA.
4. Explain the functions of Civil Aviation Authority – UK.
5. What are the objectives of ICAO?

Check Your Progress: Model Answers

CYP 1
1. Bureau of Air Commerce
2. World tourism organisation

CYP 2
1. DGCA
2. Inspection, Surveillance

14.14 SUGGESTED READINGS

PS Senguttuvan, Fundamentals of Air Transport Management, Excel Books, New
Delhi.
PS Senguttuvan, Principles of Airport Economics, Excel Books, New Delhi.
Aerospace Medical Association, Medical Guidelines Task Force, Medical guidelines
for airline travel, 2nd edition, 2003, http://www.asma.org.
British Medical Association, Board of Science and Education, The impact of flying on
passenger health: a guide for healthcare professionals, 2004, http://www.bma.org.
 MODEL QUESTION PAPER
BBA (Annual Pattern)
Second Year
Sub: Airline and Airport Organisation
Time: 3 hours Total Marks: 100
Direction: There are total eight questions, each carrying 20 marks. You have to
attempt any five questions.

1. Explain how the competition between airline industry developed in India.

2. Explain airside management. What are the precautions to be taken for ground and
flight safety?
3. Discuss different types of terminal. How do the airport authority manage different
terminals?
4. Explain catering planning. Explain, in brief, different types of passenger services
provided in aircraft.
5. Broadly discuss crew resource management. What is the procedure for bagging
handling?
6. Enumerate provision for handling disabled passengers, VVIP/VIP passenger.
7. Write a note on airport operations. Elaborate the different function of airlines.
8. Highlight the different aspects explaining the difference travel organisation.