Air Transport Management

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Project
 Assignment:
 Air
 Transport
 Management
 II
 
 

 
 
 

 
 
 
 

 

Bharath
 Suryanarayanan

 

Submitted
 by
 
 

 

Of
  Post
 Graduate
 Diploma
 in
 Aviation
 Law
 &
 Air
 Transport
 Management.
 
 Academic
 year
 2010
 -­‐11
 
 
 Bangalore
 

 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 


 

 

 
 
 

Title……………………………………..1-­‐2
 
 
  Introduction…………………………3-­‐4
 
 
  Overview………………………………4-­‐5
 
 
  Identified
 Challenges
 Strategies
 to
 meet
 the
  challenges………………………………5-­‐9
 
 
  Conclusion………………………………9-­‐10  
 
  References………………………………10-­‐11  
 
 
 
 
 
 
2


 
  Introduction:
 
 
The
 Aviation
 business
 environment
 is
 rapidly
 changing
 with
 time.
 Few
 decades
 ago,
  the
 aviation
 business
 environment
 was
 highly
 regulated
 with
 the
 regulatory
 body
  stipulating
 the
 fares,
 routes
 and
 schedules.
 This
 was
 the
 case
 all
 over
 the
 World,
 with
  many
 government
 owned
 airlines
 and
 a
 few
 private
 one’s
 in
 existence.
 This
 system
  was
 favorable
 to
 the
 Airlines
 since
 they
 were
 guaranteed
 a
 profit.
 It
 was
 the
 public
  air
 travelers
 who
 had
 to
 pay
 huge
 tariffs
 for
 flying.
 
  The
 Airline
 deregulation
 act
 (ADA)
 was
 signed
 in
 1978
 in
 the
 United
 States.
 The
 ADA
  states
 the
 following
 goals:
 
 1.
 The
 maintenance
 of
 safety
 as
 the
 highest
 priority
 in
 air
 commerce
 
 2.
 Placing
 maximum
 reliance
 on
 competition
 in
 providing
 air
 transportation
 services
 
 3.
 The
 encouragement
 of
 air
 service
 at
 major
 urban
 areas
 through
 secondary
 or
  satellite
 airports
 
  This
 need
 was
 felt
 all
 over
 the
 World
 resulting
 in
 major
 deregulations
 in
 the
 World
  Aviation
 Industry.
 
  The
 term
 “Legacy
 Carrier”
 came
 into
 existence.
 Though
 this
 term
 is
 mainly
 used
 in
  the
 US,
 we
 would
 be
 generalizing
 it
 for
 other
 countries
 as
 well,
 for
 better
  understanding.
 
  A
 legacy
 carrier
 is
 an
 Airline
 that
 established
 interstate
 routes
 after
 the
 ADA,
 1978.
 It
  is
 distinct
 from
 the
 term
 “Low
 cost
 carrier”
 (LCC),
 which
 is
 a
 term
 applicable
 to
 the
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