BBCS101D-Airport Customer Service PDF

UNIT 20: Case Study
BBCS-101D
S
BBA (Aviation Operations)
Airport Customer Service PE

)U
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Airport Customer Service
Course Design
S
Advisory Council
Chairman
Dr Parag Diwan
PE
Members
Dr Kamal Bansal Dr Anirban Sengupta Dr Ashish Bhardwaj
Dean Dean CIO
Dr S R Das Dr S P S Narang Dr Sanket Goyal

VP – Academic Affairs Associate Dean VP – Research & Development
SLM Development Team

Wg Cdr P K Gupta
Dr Sunder Ganesh Raju
Dr Neeraj Anand
Dr K K Pandey
)U
Print Production
Mr Kapil Mehra Mr A N Sinha

Sr Manager – Study Material Sr Manager – Printing
Author
Sudhendra Mishra
All rights reserved. No part of this work may be reproduced in any form, by mimeograph or any other means,
without permission in writing from MPower Applied Learning Enterprise.
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Course Code: BBCS-101D
Course Name: Airport Customer Service
Version: July 2013
© MPower Applied Learning Enterprise

UNIT 20: Case Study
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Contents
Block-I
Unit 1 Overview of Aviation Industry....................................................................................... 3

Unit 2 Air Transport System ................................................................................................... 15
Unit 3 Airlines .......................................................................................................................... 27
Unit 4 Airports ......................................................................................................................... 35
Unit 5 Case Study .................................................................................................................... 51
Unit 6
UP Block-II
Airline Industry ............................................................................................................ 57

Unit 7 Airlines Management ................................................................................................... 69
Unit 8 Cargo Transport............................................................................................................ 85
Unit 9 Airlines Terminology .................................................................................................... 93
Unit 10 Case Study .................................................................................................................. 103
Block-III
Unit 11 International Civil Aviation Organization (ICAO) ................................................... 107

Unit 12 Aviation Organizations .............................................................................................. 115
Unit 13 Airport Services’ Users............................................................................................... 123
Unit 14 Airport Service Marketing ......................................................................................... 137
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Unit 15 Case Study .................................................................................................................. 155
Block-IV
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Unit 16 Understanding the Customer .................................................................................... 161

Unit 17 Impact of Front Line Staff.......................................................................................... 173
Unit 18 Customer Service........................................................................................................ 181
Unit 19 CRM in Services ......................................................................................................... 191
Unit 20 Case Study .................................................................................................................. 203
Block-V
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Unit 21 Dealing with Complaints............................................................................................ 207
Unit 22 Branding Strategy for Customer Service at Airports ............................................... 219
Unit 23 Airport Shopping ........................................................................................................ 229
Unit 24 Airport Security .......................................................................................................... 237
Unit 25 Case Study .................................................................................................................. 251
Glossary ............................................................................................................................................ 253

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UNIT 1: Overview of Aviation Industry
Notes
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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-I
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Detailed Contents
Notes
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UNIT 1: OVERVIEW OF AVIATION INDUSTRY
___________________ UNIT 3: AIRLINES
 Introduction  Introduction
___________________
 Role of Aviation Industry  Activities of Airlines
___________________
 Overview of Airports  Operations of Airlines
___________________
 Developments in Airport Sector  Airline Meal
___________________
 Airlines: Investors’ Perspective
___________________ UNIT 4: AIRPORTS
UNIT 2: AIR TRANSPORT SYSTEM  Introduction

___________________
 Introduction  Overview of Airport
___________________
 History of Air Transport  Functions of Airport
___________________
 Components of Air Transport System  Airport Terminals
___________________


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Developments in Air Transport
Next Generation Air Transportation System
Different Types of Air Transportation



Economic Input of Airport Privatisation
Effect of Globalization
UNIT 5: CASE STUDY

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Notes
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Activity
Visit___________________
local office of an airline
Overview of Aviation Industry and with the help of their office
___________________
representative, prepare an
article on the aviation industry.
___________________
Objectives
___________________
After completion of this unit, the students will be aware of the following
topics: ___________________
 Role of Aviation Industry ___________________

 Overview of Airports
___________________
 Developments in Airport Sector
___________________
 Airlines: Investors’ Perspective
___________________
Introduction ___________________
UP
Aviation is the design, development, production, operation, and use
of aircraft, especially heavier-than-air aircraft. The word
"Aviation" was coined by French writer and former naval officer
Gabriel La Landelle in 1863, from the verb "avier" (synonymous
flying), itself derived from the Latin word "avis" ("bird") and the
"suffix "-ation.
Few inventions have changed how people live and experience the
world as much as the invention of the airplane. During both World
Wars, government subsidies and demands for new airplanes vastly
improved techniques for their design and construction. Following
the World War II, the first commercial airplane routes were set up
in Europe. Over time, air travel has become so commonplace that it
would be hard to imagine life without it. The airline industry,
therefore, certainly has progressed. It has also altered the way in
which people live and conduct business by shortening travel time
and altering our concept of distance, making it possible for us to
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visit and conduct business in places once considered remote.
Role of Aviation Industry

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Aviation plays a vital role especially in emergencies like air

ambulance and medical evacuation for seriously injured or
unconscious person and it is the easiest way to save life. But you
need to put the following in your mind when travelling, the airstrip
state especially when visiting the national parks or semi-arid areas
like Takaba in Northern Eastern Kenya, weather and the
geographical features en-route to your destination. That is why our

Notes fleet has aircrafts with short landings and take offs for untidy
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___________________ airstrips example is the c-172,c-182,c-206,c-208 caravan, let 410 to
be able to serve all the purpose. Travelling to Northern and North
___________________
Eastern Kenya there is insecurity, poor road infrastructure and
___________________
you can not risk going by road as you will be required to have a
___________________ convoy of security which you will have to pay for and in case the
___________________ vehicle breaks down then you are at the mercy of the bandits. Why
go through all these when you can take a private charter
___________________
depending on your need and we have on our menu all ranging from
___________________ 3 to 37 seater at your disposal. You can see aviation has played
___________________ and is still playing a vital role in travel and a journey which could
take you days by road will take you hours.
___________________
___________________
Aviation has enabled business owners and investors to run
UP business all over the world and they can be able to visit them
physically within days and be back at to the headquarters same
day by using either private charter or commercial flights. Not even
forgetting countries affected by war where medical attention, relief
supplies is required it can be done in hours.
Within aviation the sky is the limit and even transportation of
fresh flowers and fresh vegetables can be flown and received when
fresh and one might think it was planted there.
In the event of hijacking at the sea, aircrafts are able to deliver the
negotiated ransom within hours and it can be parachuted without
other people knowing. In supplement medicine, cloth, food, water
can be parachuted using aircrafts. In war tone areas like South
Sudan, Dar fur, Chad where people are suffering and there are no
roads and there is insecurity. C-130 aircraft 18 toner aircraft,
Buffalo 5 tonnes are used to do food drops to save lives of millions.
Indeed aviation industry has contributed a lot in making our travel
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quick and also in saving peoples lives by segmenting air charter

services with the right aircrafts and not leaving out the helicopter
which is used where there are no airstrips.
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Check Your Progress

Fill in the blanks:
1. Aviation has enabled business owners and
………………… to run business all over the world.
2. In the event of ………………… at the sea, aircrafts are
able to deliver the negotiated ransom within hours.
Overview of Airports
Notes
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Activity
Aviation Industry consists of two components, namely:
Prepare a report on major
___________________
1. Airports airports of India.
___________________
2. Airlines
___________________
Airports are an essential part of the air transport system. They
___________________
provide all the infrastructure needed to enable passengers and
___________________
freight to transfer from surface to air modes of transport and to
allow airlines to take off and land. The basic airport infrastructure ___________________
consists of runways, taxiways, apron space, gates, passenger and ___________________
freight terminals, and ground transport interchanges. Airports
___________________
bring together a wide range of facilities and services in order to be
able to fulfil their role within the air transport industry. These ___________________
services include air traffic control, security, fire and rescue in the ___________________
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airfield. Handling facilities are provided so that passengers, their
baggage, and freight can be successfully transferred between
air-craft and terminals, and processed within the terminal.
Airports also offer a wide variety of commercial facilities ranging
from shops and restaurants to hotels, conference services and
business parks as well as playing a crucial role within the air
transport sector; airports have a strategic importance to the
regions they serve.
In a number of countries they are increasingly becoming integrated
within the overall transport system by establishing links to
high-speed rail and key road networks. Airports can bring greater
wealth, provide substantial employment opportunities and
encourage economic and can be a lifeline to isolated communities.
However, they do have a very significant effect, both on the
environment in which they are located and on the quality of life of
residents living nearby. Growing awareness of general
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environmental issues has heightened the environmental concerns

about airports.
The operators of airports vary considerably in their ownership,
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management structure and style, degree of autonomy, and funding.

Typically, the actual airport operators themselves only provide a
small proportion of an airport’s facilities and services. The rest of
these activities will be undertaken by airlines, handling agents,
government bodies, concessionaires, and other specialist
organizations. The way in which operators choose to provide the
diverse range of airport facilities can have a major impact on their
economic and operational performance and on their relationship

Notes with their customers.
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___________________
Each airport operator will thus have a unique identity – but all
___________________ have to assume overall control and responsibility at the airport.
___________________ Each will be faced with the challenging task of co-coordinating all
the services to enable the airport system to work efficiently. The
___________________
providers of services are just some of the airport stakeholders
___________________ which operators need to consider. Others include shareholders,
___________________ airport users, employees, local residents, environmental lobbyists,
and government bodies. A complex situation exists with many of
___________________
these groups having different interests and possibly holding
___________________
conflicting views about the strategic role of the airport. All the
___________________ stakeholder relationships will be important but, clearly, the
___________________ development of a good relationship with the airlines will be critical,
UP as ultimately this will largely determine the air services on offer at
the airport.
Heathrow has the most international traffic, while Atlanta,
Chicago, and Los Angeles have the largest passenger throughput.
The largest passenger airport in Asia is Tokyo Haneda, which is
dominated by domestic traffic. Not all the major cargo airports
coincide with the major passenger airports. Memphis is the world’s
largest cargo airport because Federal Express is based here.
Similarly, UPS has its base at Louisville. The cargo market is more
widespread with six of the important cargo airports situated in
Asia. The larger than average aircraft size in Asia means that
none of the busiest airports in terms of movements are situated in
this region. All the 20 busiest airports, whether measured in
passengers, cargo or movements are in North America, Europe, or
Asia/Pacific, with none in any other global region.
Check Your Progress

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Fill in the blanks:

1. Growing awareness of general …………………. issues
has heightened the environmental concerns about
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airports.
2. Airports also offer a wide variety of ………………….
facilities ranging.
Developments in Airport Sector

Notes
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Activity
The growth in demand for air transport has had very significant
Prepare a presentation on key
___________________
economic and environmental consequences for both the airline and developments in airport
airport industries. Moreover, since the 1970s there have been sector.
___________________
major regulatory and structural developments, which have affected ___________________
dramatically the way in which the two industries operate. Initially
___________________
most change was experienced within the airline sector as a
consequence of airline deregulation, privatization and globalization ___________________
trends. The pace of change was slower in the airport industry, but ___________________
now this sector, too, is developing into a fundamentally different ___________________
business.
___________________
The trend towards airline deregulation began in 1978 with the
___________________
deregulation of the US domestic market. Many more markets
___________________
UP
subsequently have been liberalized or deregulated. In some places
this has been the result of the adoption of more liberal bilateral air
service agreements, as has occurred on a number of the North
Atlantic and Pacific routes. In the European Union (EU),
deregulation has been achieved with a multilateral policy which
has evolved over a number of years with the introduction of the
three deregulation packages, in 1987, 1990, and 1993. The 1993
package, which did not become fully operational until 1997, was
the most significant package and has had the most far-reaching
impact. This European deregulation has allowed a new low-cost
airline industry to develop, which has had major consequences for
certain, airports.
At the same time, airline ownership patterns have changed. Most
airlines, with the notable exception of those in the United States,
traditionally were state owned and often subsidized by their
government owners. However, this situation has substantially
changed as an increasing number of governments have opted for
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partial or totally private sector airline ownership, primarily to

reduce the burden on public sector expenditure and to encourage
greater operating efficiency.
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The other most significant development within the airline

industry, partly due to deregulation and privatization trends, is
the globalization of the industry and the emergence of
transnational airlines. Four major alliance groupings, namely Star,
one world, Sky Team, and ‘Wings’, have emerged with global
networks. These are dominating the airline business – accounting
for two-thirds of all traffic. Moreover, many other airlines are
aligning themselves to these groupings with code-sharing,

Notes franchising, or other co-operative arrangements. The airports have
ES
___________________ now found themselves being caught up in this environment of
change. Radical restructuring has occurred, which in many ways
___________________
mirrors that which has fundamentally changed the airline
___________________
industry. Three key developments have been witnessed within the
___________________ airport sector:
___________________  Airport commercialization: The transformation of an
___________________ airport from a public utility to a commercial enterprise and the
adoption of a more business like management philosophy.
___________________
___________________
 Airport privatization: The transfer of the management of an
airport, and in many cases the ownership as well, to the
___________________
private sector by a variety of methods. These include share
___________________ flotations, the adoption of strategic partnerships or the
UP 
introduction of private management contracts.
Airport globalization: The emergence of a few global airport
companies who are operating at an increasing number of
airports around the world. Some of these global players are
traditional airport operators whereas others are new to airport
management.
Though the aviation industry cannot survive with the support of
the government, still majority of the major airports and airlines of
the world are privately owned and many are doing well. Major
airlines like Virgin Atlantic, Ryan Air and Jet Airways, Kingfisher
airlines are in the private hands and are doing well,
Similarly the airports like Pearson International Airport, Toronto
Canada; Schipol Airport in Netherland, Bangalore and Hyderabad
are in the private hands.
Check Your Progress

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Fill in the blanks:

1. The growth in demand for air transport has had very
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significant economic and ……………………..

consequences for both the airline and airport
industries.
2. In the European Union (EU), deregulation has been
achieved with a ……………………. policy which has
evolved over a number of years with the introduction of
the three deregulation packages.
Airlines: Investors’ Perspective

Notes
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Let us analyze the perspective of the airlines from an investor Activity
Write___________________
an article on the
point of view. They want to know how is the airlines financial
investors’ perspective on
analysis and also its mission to meet the challenges of the future. ___________________
airlines.
The following points are important for this analysis. Below are the ___________________
8 (eight) points which the investor would like to analyze before
___________________
investing his money and these are also the points to analyze the
health and performance of the good management of the airlines: ___________________
___________________
Analyze Fuel Hedging
___________________
Some airlines try to pass higher fuel costs on to their customers in
___________________
the form of a fuel surcharge. But the most efficient way to mitigate
fuel costs (particularly over time) is to purchase futures contracts ___________________
that lock in a company’s fuel supply for the coming year at a set ___________________
price.
UP
To be clear, all airlines do some hedging. But some companies
hedge more than others. As such, they are better prepared, should
oil prices skyrocket.
For example:
Southwest Airlines hedged as much as 85% of its annual fuel usage
over the past six years. The move effectively locked in consumption
at $26 per barrel of oil, which in turn saved shareholders an
estimated $1.8 billion (from 1999 to 2005). Conversely, other
airlines such as Alaska Air hedged a smaller percentage of their
expected fuel consumption, and as a result their annual savings
were much less during that same time period.
In any case, investors should review the company’s financial
statements (Form 10-K/10-Q) for information about its hedging
activities. While there is no hard and fast rule, investors should
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look favourably upon companies that hedge at least 30% of their

expected annual fuel usage. Anything less than that and the
company may be putting itself at significant risk should oil prices
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really fly.
Study Debt Loads

An airline’s ability to make its interest payments and service its
debt on a timely basis will determine its ultimate fate. So, all
investors should conduct a thorough debt analysis. This includes
researching not only the total debt the company has on its books,
but also at the interest rates the company is paying on those debts.
Notes A good way to determine if the interest rate is excessive is to
ES
___________________ calculate the interest coverage ratio.
___________________ To calculate the interest coverage ratio, take the annual EBITDA
___________________ number and/or the airline’s operating income, and divide it by the
annual interest expense. Ideally, in order to feel comfortable that
___________________
the company will be able to meet its debt service obligations, an
___________________ airline’s EBITDA should cover its interest expense by at least two
___________________ times but preferably three.
___________________ For example:

___________________ EBITDA /Interest Expense = coverage
___________________ $10 million /$5 million = 2  coverage
___________________
UP Certainly, companies with less coverage can survive, and even
thrive when industry conditions are good. But in an industry-wide
downturn, companies with less coverage tend to be more
susceptible to cash crunches.
Revenue per Available Seat Mile

Revenue per Available Seat Mile (RASM) is a metric that is often
used to analyze and compare two or more airlines. RASM tells
investors how much revenue the company is generating per seat
and per mile flown. Generally speaking, the higher the RASM
number, the more profitable the company is, or has the potential to
be. All else being equal, an investor should always select the
company with the higher RASM for investment.
Consider the Value of the Airline’s Hubs

For those unaware, a hub is an airport that services or feeds
another destination.
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For example:
Atlanta is a major hub for destinations in New York, Florida and
California. It’s centrally located pit stop where a lot of aircrafts fly
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to pick up customers, refuel, and head out to another destination.

Airlines that service the busiest hubs tend to be the most
successful. So, investors should look favourably upon companies
with a major presence in hubs. Some examples of good hubs are
Chicago, Atlanta and Memphis - again because they are great
feeder airports and because they are centrally located to a variety

of destinations. Notes
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Incidentally, savvy investors should also be on the lookout for ___________________
companies that have a presence in up-and-coming hubs as well. ___________________
For example: ___________________
Northwest Airlines services a great deal of flights in and out of the ___________________
expanding Detroit area. As this city undergoes its rebirth, and its ___________________
population grows, the number of flights to and from the city is
___________________
expected to increase. By extension, one could assume Northwest
could see a big bump in revenue as well. ___________________
___________________
Consider Labour Relations
___________________
Because airlines use unionized labour and are routinely forced to
___________________
UP
renegotiate salary contracts with pilots, mechanics and a host of
other employees, the possibility of a strike is omnipresent.
However, as part of the research process the investor should still
make an attempt to gauge the likelihood of a future strike and its
potential impact on financial results.
In order to do this, investors should listen to the news and pursue
industry trade journals such as Airport World Magazine. Investors
should also pay particular attention to any pending negotiations,
and specifically to any (union) employee demands for sizeable
increases in health and/or wage contributions. Additional
information can be gleaned from the airline’s SEC (Securities and
Exchange Commission) filings. In fact, in the 10-K/Q most airlines
include their assessment of the state of current labour relations, as
well as information about any future liabilities that could be
incurred if negotiations go against the company. All of these
sources can be quite helpful. If a strike appears imminent, or there
is a very real possibility of a major wage dispute in the not too
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distant future, its makes sense to avoid the stock until the
situation clears.
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Acquisition Opportunities
If a company has deep pockets (meaning it’s flush with cash), or it
has the financial ability to take on more debt, it may seek out
viable acquisition candidates as a means of growth. Savvy
investors would be wise to try to determine the potential cost
savings associated with those acquisitions, as well as the ultimate
price impact on both the shares of the suitor and the company to be
Notes acquired.
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___________________
For example:
___________________
Consider U.S. Airways’ $8-billion bid for Delta Airlines in
___________________ December of 2006. Analysts and investors were trying to weigh out
___________________ which stock could benefit the most if a deal were to be hammered
out. On the one hand, Delta’s stock could take off given its low
___________________
price and lack of other near-term catalysts. On the other hand,
___________________ some analysts contend that U.S. Airways could realize hundreds of
___________________ millions of dollars in synergies, and pick up assets (like airplanes
___________________
and facilities) that service several vital hubs on the cheap.
___________________ In any case, investors should look favourably upon airlines with
the ability to pursue an acquisition strategy. After all, it’s a
___________________
UP potential growth outlet that many underfinanced companies
simply don’t have.
Fleet Modernization Costs

In the mid-’90s Continental Airlines spent a bundle of money to
refurbish a large portion of its existing aircraft and to purchase
more modern planes. Unfortunately, this also proved to be an
extremely time-consuming and expensive process that ultimately
contributed to a steep decline (about two thirds) in its share price.
Investors should be aware of the average age of a particular
airline’s fleet before investing in the stock, which is also found in
the 10K/Q. Some airplanes can stay in service for 20 or even 30
years. But most major airlines undergo a significant modernization
every 15 to 20 years just to remain competitive.
Landing the Points

In recent years, companies such as Ryan air and JetBlue have
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been trimming ticket costs significantly. This has forced other

airlines to cut their prices and to issue consumers a variety of
other margin-pinching incentives - just to remain competitive.
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Put simply, while this price competition might be favourable for

the consumer, it can easily put companies with high debt loads and
dwindling working capital positions out of business. To be sure,
investors can’t prevent discounting. But they should be aware of its
existence and its potential impact on the industry. Furthermore,
they can avoid companies that are the most susceptible to its
effects.
While investments in airlines may not have been considered

attractive in recent years, realize that money can still be made in Notes
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airline stocks. By using these seven tips, investors can be aware of ___________________
what to look for to keep their money from falling out of the sky.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Some airlines try to pass higher fuel costs on to their
___________________
customers in the form of a fuel …………………….
___________________
2. The higher the RASM number, the more
___________________
…………………….. the company is.
___________________
Summary ___________________
In this unit you have learnt about the roles of aviation industry ___________________
UP
which consists of the airlines and airport. The airlines are
essentials to transport the passenger and cargo from one point to
another point and are also a catalyst in the development of
Economic growth of the country. You have two major countries
China and India which have developed their aviation industry and
are poised to overtake the entire world including countries like
USA /Japan.
Though the aviation industry cannot survive with the support of
the government, still majority of the major airports and airlines of
the world are privately owned and many are doing well.
Airlines that service the busiest hubs tend to be the most
successful. So, investors should look favourably upon companies
with a major presence in hubs. Some examples of good hubs are
Chicago, Atlanta and Memphis - again because they are great
feeder airports and because they are centrally located to a variety
of destinations.
)
Lesson End Activity

With the help of internet research ‘fuel hedging’ and then have a
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group discussion on fuel hedging in a group of 4 students.
Keywords
Fuel Hedging: Fuel Hedging is a contractual tool some large fuel
consuming companies, such as airlines, use to reduce their
exposure to volatile and potentially rising fuel costs.
Commercialization: 'Commercialization' is the process or cycle of

Notes
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introducing a new product or production method into the market.
___________________
Privatization: It is the process of transferring ownership of a
___________________
business, enterprise, agency, public service or public property from
___________________ the public sector (a government) to the private sector, either to a
___________________ business that operate for a profit or to a non-profit organization.
___________________ Globalization: Globalization is the process of extending social

relations across world-space.
___________________
___________________ Debt Loads: The amount of debt or leverage that a company is

carrying on its books.
___________________
___________________
Questions for Discussion
___________________
UP 1.
2.
What is aviation industry?
Discuss the evolution of aviation industry.
3. Give an overview of airports as a part of aviation industry.
4. What are the key developments in airport sector?
5. Explain airlines from the perspective of investors.
Further Readings
Books
Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
Emerald Group of Publishing
Martinez, Mario, Hobbi, Bob, (2009), Building a Customer Service
Culture: The Seven Service Elements of Customer Success, IAP
Kossmann, Mario, (2006), Delivering Excellent Service Quality in
)
Aviation, Ashgate Publishing Ltd.
Web Readings
http://www.investopedia.com/features/industryhandbook/airline.asp
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http://en.wikipedia.org/wiki/Aviation
UNIT 2: Air Transport System
Notes
ES
___________________
Air Transport System ___________________
___________________
Objectives
___________________
topics: ___________________
 History of Air Transport ___________________

 Components of Air Transport System ___________________
 Developments in Air Transport
___________________
 Next Generation Air Transportation System
___________________
 Different Types of Air Transportation
___________________
Introduction
UP
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. With such
versatility, aircraft have contributed to augmenting the fast paced
lives we 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
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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 with utmost
comfort and safety, thanks to the air transport system. 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
Notes heavier-than-air machine that actually flew under its power, were
ES
Activity
Visit___________________
your nearby air force Wilbur and Orville Wright, the Wright brothers. Orville made the
museum and prepare a first successful flight. Although their “air machine” flew for only
___________________
presentation on the history of
air transport. 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.” – 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
UP winged warfare in the First World War. Airplanes are used for a
variety of activities while travel is only one of them.
History of Air Transport

The airplane has changed our way of life. International travel -
once possible only for heads of state, diplomats, the powerful and
the wealthy - is now available to tourists around the globe.
Executives can fly to far-flung branches in a few hours paving the
way for international conglomerates. Perishable foods, machine
parts, and consumer goods can be produced in regions where
labour costs are low and quickly transported to other areas of the
world where they are in demand.
Just as highways were developed to improve land transportation,
air routes were developed to improve air transportation. Just as
traffic police and traffic lights were developed to prevent collisions
on the roads, air traffic controllers and navigation systems were
)
developed to prevent collisions in the air. Just as bus terminals

were built to get passengers to the vehicles, airports were built to
get passengers to the planes. Just as regulations were developed to
(c
ensure the safety of people travelling on the roads and prevent

disputes among competing companies, regulations have been
developed to ensure safety in the air and prevent disputes among
airlines.
A complex system of interdependent organizations and
international regulations has grown to guarantee the safe passage
of passengers and cargo to destinations around the world. Known
as the air transportation system, it can be defined as a group of

interdependent components for moving passengers and goods by Notes
ES
Activity
the medium of air. ___________________
Prepare a chart with
diagrammatic representation
Check Your Progress of ___________________
Components of Air
Transport System.
Fill in the blanks: ___________________
___________________
1. ………………….. can fly to far-flung branches in a few
hours paving the way for international conglomerates. ___________________
2. Just as bus terminals were built to get passengers to ___________________

the vehicles, ……………….. were built to get passengers ___________________
to the planes.
___________________
___________________
Components of Air Transport System
___________________
UP
A system is a group of components that work together as a unified
whole. If one component changes in some way, the other
components must also change so that the system continues to
function effectively. If anyone component fails to work properly,
the whole system will be affected.
The components that make up the air transportation system are:
)
(c
Figure 2.1: Components of Air Transportation System
1. Airlines are those companies which operates vehicles for

transportation of passengers and cargo through air.
2. Airports provide a place for airplanes to land, load and unload
passengers and cargo, and take-off for other destinations. The
term airport is commonly used for large airports used by

Notes airlines.
ES
Activity
Write___________________
a short report on the 3. Air navigation services are those services which monitor
developments in Air
___________________
Transport. and control the movement of aircrafts from one place to
___________________ another by managing the air traffic.
___________________ 4. Civil Aviation Authorities is a body that develop and

enforce regulations for aviation industry within respective
___________________
countries.
___________________
These components are interdependent - one cannot function
___________________
without the others. If an airport closes, airplanes cannot land and
___________________ passengers cannot travel. If the regulations are inadequate, there
___________________ may be conflicts between airlines, accidents may occur, exports
may not leave the region and imports may be lost in transit.
___________________
UP Understanding the relationships between these components is
essential for people working in the industry.
Check Your Progress

Fill in the blanks:
1. A system is a group of components that work together
as a ……………… whole.
2. If the regulations are inadequate, there may be
…………………… between airlines, accidents may
occur, exports may not leave the region and imports
may be lost in transit.
Developments in Air Transport

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 four processes:
)
Technical Improvements
Technology has significantly extended the range of aircraft that
(c
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. Notes
ES
___________________
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
___________________
UP
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

)
Fill in the blanks:

1. The introduction of the jet engine considerably reduced
…………………. because of greater speeds and
(c
improved ranges.
2. The growth of air transport is highly correlated to
…………………. and …………………. output growth.
Next Generation Air Transportation System

Notes
ES
Activity
The Next Generation Air Transportation System (NextGen) is the
___________________
Prepare a slideshow on
elements of NextGen. name given to a new National Airspace System due for
___________________ implementation across the United States in stages between 2012
___________________ and 2025. The Next Generation Air Transportation System
___________________
(NextGen) proposes to transform America’s air traffic control
system from an aging ground-based system to a satellite-based
___________________
system. GPS technology will be used to shorten routes, save time
___________________ and fuel, reduce traffic delays, increase capacity, and permit
___________________ controllers to monitor and manage aircraft with greater safety
margins. Planes will be able to fly closer together, take more direct
___________________
routes and avoid delays caused by airport “stacking” as planes wait
___________________
for an open runway.
___________________
UP To implement this, the Federal Aviation Administration (FAA) will
undertake a wide-ranging transformation of the entire United
States air transportation system. This transformation has the aim
of reducing gridlock, both in the sky and at the airports. In 2003,
The United States Congress established the Joint Planning and
Development Office (JPDO) to plan and coordinate the
development of the Next Generation Air Transportation System.
Elements of NextGen
NextGen consists of five elements:
1. Automatic dependent surveillance-broadcast (ADS-B):
ADS-B will use Global Positioning System (GPS) satellite
signals to provide air traffic controllers and pilots with much
more accurate information that will help to keep aircraft safely
separated in the sky and on runways. Aircraft transponders
receive GPS signals and use them to determine the aircraft's
precise position in the sky. These and other data are then
)
broadcast to other aircraft and air traffic control. Once fully

established, both pilots and air traffic controllers will, for the
first time, see the same real-time display of air traffic,
(c
substantially improving safety. The FAA will mandate the

avionics necessary for implementing ADS-B.
2. Next Generation Data Communications: Current
communications between aircrew and air traffic control, and
between air traffic controllers, are largely realised through
voice communications. Initially, the introduction of data
communications will provide an additional means of two-way
communication for air traffic control clearances, instructions,

advisories, flight crew requests and reports. With the majority Notes
ES
of aircraft data link equipped, the exchange of routine ___________________
controller-pilot messages and clearances via data link will
___________________
enable controllers to handle more traffic. This will improve air
traffic controller productivity, enhancing capacity and safety. ___________________
3. Next Generation Network Enabled Weather (NNEW): ___________________
Seventy percent of NAS delays are attributed to weather every ___________________

year. The goal of NNEW is to cut weather-related delays at ___________________
least in half. Tens of thousands of global weather observations
___________________
and sensor reports from ground-, airborne- and space-based
sources will fuse into a single national weather information ___________________
system, updated in real time. NNEW will provide a common ___________________
weather picture across the national airspace system, and
___________________
4.
UP
enable better air transportation decision making.
System Wide Information Management (SWIM): SWIM
will provide a single infrastructure and information
management system to deliver data to many users and
applications. By reducing the number and types of interfaces
and systems, SWIM will reduce data redundancy and better
facilitate multi-user information sharing. SWIM will also
enable new modes of decision making as information is more
easily accessed.
5. NAS voice switch (NVS): There are currently seventeen
different voice switching systems in the NAS, some in use for
more than twenty years. NVS will replace these systems with
a single air/ground and ground/ground voice communications
system.
Check Your Progress

)
Fill in the blanks:

1. The Next Generation Air Transportation System
(NextGen) proposes to transform America’s air traffic
(c
control system from an aging ground-based system to a

……………….. -based system.
2. ……………… will provide a single infrastructure and
information management system to deliver data to
many users and applications.
Notes Different Types of Air Transportation
ES
Activity
___________________
Make a collage of different A number of different types of air transportation exist, both
types of Air Transportation. commercially and privately. Some of these types have been
___________________
developed over the course of decades or even centuries to meet the
___________________
needs of modern humans. Each different type is unique in the way
___________________ it achieves flight, the speed it travels and the sustainability of its
___________________ voyage. Many of the inventions have developed into large scale
industries. However, some methods are still in their infancy, or
___________________
they merely represent a small niche within the world of flight.
___________________
___________________ Hot Air Balloons
___________________
The first successful type of air transportation that carried humans
was the hot air balloon. The Montgolfier brothers developed the
___________________
UP idea of designing a large bag or balloon that held hot air in the late
1700s. Passengers and the heat source were placed in a gondola or
wicker basket underneath the balloon. Since hot air rises, the
balloon flew according to the direction of the wind. By cooling the
balloon's temperature, the passengers safely floated back to earth.
Today's hot air balloons use almost the same technology; however,
they are able to design the balloons into nearly any shape
imaginable.
Blimps
An offshoot of the hot air balloon is the blimp. Blimps have been
around since the end of the 19th century and were first used as
scouting tools by various militaries. The technology has developed
into a convenient and cost-effective way to travel and advertise
products. To float, blimps use hot air and large fans attached to the
gondola underneath. They can be deflated for storage or
transportation and inflated cheaply when service is needed.
)
Arguably, the Goodyear Blimp is the most famous of this mode of

transportation, seen at sporting games and events around the
world.
(c
Zeppelins
Zeppelins were built in the early 20th century, based on designs by
Count Ferdinand von Zeppelin. Visually, zeppelins appear very
much like blimps. However, they differ on two key points:
zeppelins have a metal skeleton with a rigid covering, and they are
filled with hydrogen. These two elements made zeppelins much
larger than blimps and capable of sustaining long-distance flights.

During World War I, they were introduced as the first flying Notes
ES
machine to practice bombing runs. Through the successive ___________________
decades, zeppelins were used in the first commercial airline
___________________
service, ferrying passengers from Germany to the Americas.
Unfortunately, the zeppelin industry was destroyed by the public ___________________
outcry from the 1937 Hindenburg disaster, when a zeppelin ___________________

exploded over New Jersey, killing 35 people.
___________________
Airplanes ___________________
The fixed-wing aircraft is the most popular form of air ___________________

transportation available. According to Flight Aware, a flight ___________________
tracking organization, there are 49,315 commercial flights around
___________________
the world each day that use fixed-wing aircraft. Nearly 1.1 billion
___________________
UP
people are flown each year. Fixed-wing aircraft are distinguishable
from other types of air transportation in that they achieve lift
through forward motion. A long runway is needed for the vehicles
to achieve enough velocity to become airborne. Airplanes use a
propeller or jet engine to power the aircraft, and the wings act as a
stabilizer for keeping the vehicle in the air.
The first design for functional fixed-wing aircraft dates back to the
1800s. Most of these designs were models that were not large
enough to hold passengers. The first official sustained flight was
performed by the Wright Brothers on Dec. 17, 1903. Over the next
decade, advances in the technology continued. World War I became
the first full-scale testing ground for fixed-wing aircraft.
Thousands of planes were built for the purpose of spying, bombing
and fighting. By the time the war ended, aviation had become a
science. Following the war, larger passenger planes were produced,
and ultimately, the jet engine was designed, making way for one of
the fastest modes of transportation in the world. Airplanes are
)
used by militaries and civilian agencies around the world. They

have been incorporated with luxurious facilities in the case of
passenger planes and extensive weapons systems for military use.
(c
Helicopters
With the success of the fixed-wing aircraft, engineers and
technicians looked for a way to make the general principles of
airplanes, sustained and fast flight, more efficient. The goal was to
develop a flying vehicle that could take off from a sitting position
and carry people to another location. This invention is the
helicopter. Helicopters are propelled using horizontal rotors

Notes consisting of two or more blades. These blades rotate around the
ES
___________________ top of the machine, and achieve lift, pulling the body of the
helicopter along. Designs for the helicopter had been conceived as
___________________
far back as the 1480s, with Leonard da Vinci. However, it wasn't
___________________
until the early 1900s that individuals created working models. The
___________________ post-war era saw the birth of the helicopter industry. However,
___________________ most models can only carry four to six people, limiting its
commercial use. The primary applications for helicopters are in the
___________________
military, law enforcement, medical, news or fire control sectors.
___________________
___________________ Personal Air Transportation
___________________
The mid-1900s saw the birth of a new type of air transportation:
the personal vehicle. Individuals invented autogyro, gliders and jet
___________________
UP packs for the purpose of transporting a single person from one
place to another. Some of the earliest styles of helicopters were
single-seat vehicles. This was the inspiration for the autogyro. The
autogyro uses elements from both fixed-wing and rotary aircraft in
order to fly. The lift is supplied by a rotor positioned on the mast.
The stability and power for flight is achieved by a rear propeller
and a set of wings. Gliders use no power to control flight. They
simply use the stability of fixed-wings to soar through the air. The
controller can move flaps on the wings in order to hit updrafts that
keep the vehicle in the air. A jet pack is a device that is generally
strapped to the back and releases a powerful blast of gases that
allow the user to fly. These devices are very inefficient, as most
models can only contain enough gases to sustain flight for a few
minutes.
Rockets
Perhaps the most advanced form of air transportation comes in the
)
form of rockets. Rockets use thrust obtained via the chemical

reaction of a fluid that is ejected at high velocities from the vehicle.
The force from the explosion within the vehicle's combustion
chamber forces gases out of the tail of the rocket, pushing the
(c
vehicle to extremely high speeds. The principle is based on inertia,

in that every action has an equal and opposite reaction. Rockets
have been used at least since the 13th century for small-scale
military applications and recreational displays. However, the first
full-scale implementation was during World War II with
Germany's V-2 rockets and various rocket-powered aircraft. The
post-war era saw the rocket implemented as a mode of

transportation that allowed for suborbital and orbital flights in the Notes
ES
upper atmosphere. These vehicles are used for both public and ___________________
private enterprises.
___________________
Check Your Progress ___________________
1. Some of the earliest styles of …………………… were ___________________

single-seat vehicles. ___________________
2. The …………………… aircraft is the most popular form ___________________
of air transportation available.
___________________
___________________
Summary
___________________
UP
Air transport has contributed to expansion of the global economy,
leisure activities, and influenced governments and industries to
diversify. The four components of the air transportation system are
– air-lines, airports, air navigation services and civil aviation
authorities – each play a crucial role in the transportation of
passengers and goods by air.
The growth of air transport is highly correlated to income and
economic output growth. The Next Generation Air Transportation
System (NextGen) proposes to transform America’s air traffic
control system from an aging ground-based system to a satellite-
based system.
A number of different types of air transportation exist, both
commercially and privately. Some of these types have been
developed over the course of decades or even centuries to meet the
needs of modern humans.
)
Lesson End Activity

Discuss within a group of 3 students about NextGen.
(c
Keywords
Hot Air Balloon: The hot air balloon is the oldest successful
human-carrying flight technology.
Blimp: A blimp, or non-rigid airship, is a floating airship without
an internal supporting framework, or a keel.
Zeppelin: A Zeppelin is a type of rigid airship pioneered by the

Notes
ES
German Count Ferdinand von Zeppelin in the early 20th century.
___________________
Airplane: An airplane is a powered fixed-wing aircraft that is
___________________
propelled forward by thrust from a jet engine or propeller.
___________________
Air Navigation Services: These are those services which monitor
___________________ and control the movement of aircrafts from one place to another by
___________________ managing the air traffic.
___________________
___________________
___________________ 1. Discuss the history of air transport.
___________________ 2. Discuss the navigation services of air transport.

___________________ 3. Explain the developments in air transport system.
UP 4.
5.
Briefly describe Next Generation Air Transportation System.
What are the different types of air transportation?
Further Readings
Books
Kossmann, Mario,(2006), Delivering Excellent Service Quality in
Web Readings
http://en.wikipedia.org/wiki/Next_Generation_Air_Transportation_
)
System
http://www.ehow.com/about_4813389_different-types-air-
transportation.html
(c
UNIT 3: Airlines
Notes
ES
Activity
Visit___________________
your nearby Air India
Airlines office and prepare
___________________
presentation on various
a
operational activities of Airline.

___________________
Objectives
___________________
topics: ___________________
 Activities of Airlines ___________________

 Operations of Airlines ___________________
 Airline Meal
___________________
___________________
Introduction
___________________
UP
Airlines are companies that provide scheduled flights for
passengers and cargo. They vary widely in size from small
companies with only one airplane to large ones with hundreds of
airplanes. Regardless of size, an airline is a complex business.
Each major airline employs a large contingent of people to ensure
its airplanes are as safe and its operations are as economical as
possible. The public is aware of pilots and flight attendants but
there are many other people working to keep airplanes flying
safely and profitably. Maintenance staff carries out the many
inspections and repairs essential to ensure airplanes stay in as
good a condition as when they were purchased. Ground crews keep
the cabins clean, provide supplies for the passengers, load cargo
and luggage and refuel the airplane.
Flight dispatchers compute airplane performance, plan flights,
monitor progress and provide support. Support staff sells tickets,
market the airline, liaise with the public, develop schedules and
)
manage the finances of the airline. Each flight is the result of

coordinated work by all employees of the airline.
(c
Activities of Airlines
Airline key activities include: maintaining airplanes, training
flight crew and ground crew, making passenger reservations,
scheduling flights, booking cargo space, handling cargo and
dangerous goods in addition to operating airplanes safely and
according to schedule. These are further explained as below:
Airplane Maintenance
Notes
ES
Airplane maintenance is an essential activity of airlines. Its goal is
___________________ to ensure airplanes are working and safe for flight. When
___________________ manufacturers deliver new airplanes, they provide extensive
documentation which tells the airline how to keep them in as good
___________________
a condition as when they were delivered. An airplane that is safe
___________________
for flight is called “airworthy”. The ongoing maintenance of an
___________________ airplane is to ensure continuing airworthiness. Every airplane is
___________________ subject to a maintenance program that ensures maintenance is
done at regularly scheduled intervals. This is very strictly
___________________
controlled by the regulatory authorities. It is a credit the
___________________ maintenance systems that technical failures contribute to only 4%
___________________ of modem turbo airplane accidents. One of the challenges for
airlines is to schedule airplane maintenance so that it does not
___________________
UP interfere with flight scheduling.
Training of Crew
Training flight crews is another essential activity of airlines. There
are thousands pilots working for major airlines. Each pilot must
hold an airline pilot license which requires years of training and
experience. Airline pilots also have to meet competency
requirements for each type of airplane flown. For example, a pilot
may be allowed fly a Boeing 747 because he has been trained on
that type of airplane, but he may not qualified to fly an Airbus 340.
Each airplane type requires extensive ground school simulator
training as well as a competency check carried out by the
regulator. Just airplanes must be continuously maintained; pilots
must continuously train and be certifying on the airplanes they
will be flying. Flight attendants are trained to ensure cabin safe
procedures such as stowing of luggage and fastening seat belts are
followed and the airplane is evacuated very quickly using the
)
emergency exits in case of an accident. Although most passengers

appreciate flight attendants for the good service they provide, their
primary function is ensuring safety.
(c
Servicing Airplanes
Airlines employ large numbers of staff to service airplanes on the
ground. They are called “ground crew”. They fuel airplanes, clean
the cabin between flights, and load and unload luggage and cargo.
Sometimes airlines contract out some of these tasks to specialist
companies that provide such services at many airports.
UNIT 3: Airlines
Cargo Handling
Notes
ES
Cargo Handling Service means loading, unloading, packing or
unpacking of cargo and includes cargo handling services provided ___________________
by airlines through special aircrafts. These also include handling of ___________________
dangerous or fragile goods, perishables and live-stock.
___________________
Scheduling Flights ___________________
The scheduling of airplanes and crews, preparation of flight plans, ___________________

and monitoring, all flights are carried out by flight dispatchers.
___________________
They require training to ensure they can read weather reports and
___________________
understand the significance to the pilot of dangerous weather
conditions such as icing, high winds, turbulence and jet streams. ___________________
They must also know airplane performance factors so they can ___________________
calculate fuel consumption, payload and take off distances required
___________________
UP
by the airplane. They must ensure that pilots are competent on the
airplane they are scheduled to fly. They must also allow flight
crews a minimum re time between flights. On long flights, they
must schedule extra crew so that pilots ca rest. In some countries
flight dispatchers are licensed.
Reservation and Booking

When people want to schedule a flight, they call a travel agent or
the airline. Ticket agents and travel agents use computer
reservation systems to find the best way to meet client
requirements. Nowadays, many people make their reservations
directly using the Internet. Similarly, with online booking, you can
quickly search for a suitable flight that has room for your cargo,
and book your shipment. It is then possible to track your shipment
to its destination.
Check Your Progress

)
Fill in the blanks:

1. Every airplane is subject to a maintenance program
that ensures maintenance is done at regularly
(c
……………… intervals.
2. Each pilot must hold an airline pilot ……………….
which requires years of training and experience.
Operations of Airlines
Notes
ES
Activity There are different types of airline operations. Airlines can be
___________________
Write an article on Operations
of Airlines.
scheduled, which means they operate on the basis of a published
___________________ schedule. They can be non-scheduled, which means that they fly
___________________ when required. An example of a non-scheduled airline is one
___________________
providing flights for tour companies that plan trips to specific
destinations. In such a case, travel agencies charter (rent)
___________________
airplanes and schedule flights.
___________________
Airlines may operate smaller types of airplanes such as small jet
___________________ airplanes known as “regional jets” or turbo-prop airplanes. These
___________________ usually fly between smaller cities or from a small city to a large
___________________
one. They are known as “commuter airlines”. If they link a small
community to a large airport with long range flights, they are
___________________
UP sometimes call “feeder airlines” because they “feed” the large
airport.
The biggest airlines operate very large jet airplanes across
continents. These are known as “major carriers” or “international
airlines”. Sometimes large airlines operate commuter airlines as a
subsidiary operation. Airlines try to use as few types of planes as
possible because it simplifies maintenance and pilot training.
However it is impossible to have only one airplane model because
each plane is designed for a specific kind of operation - short or
long range, medium or high capacity. Airlines fly different types of
routes and use the most efficient model of airplane for each route.
Low-cost airlines, also known as no-frills airlines, offer lower fares
and fewer amenities for passengers. They reduce their operating
costs by cutting out features such as fancy meals, alcoholic
beverages and even reserved seats. They rely on increased staff
productivity and lower salaries, as well as very flexible work rules
)
which allow employees to switch between jobs easily. Point-to-point

networks, with flights between two specific locations, permit
schedules where airplanes spend very little time on the ground
thus maximizing fleet productivity. Finally, low-cost airlines tend
(c
to use smaller airports which are less crowded and charge lower
user fees than major airports and thus reduce delays caused by
high traffic. Low-cost airlines have been particularly successful in
the United States and Europe.
Alliances between airlines benefit the customers by providing an
extended network of routes as well as more efficient routing.
UNIT 3: Airlines
Travellers may also benefit from lower prices as a result of lower

operating costs which result from sharing facilities such as sales Notes
ES
Activity
offices, maintenance and operational facilities, in addition to Find___________________
out the name of caterer
sharing operational staff such as ground handling and check-in providing meal service to any
airline. Visit them and prepare
___________________
personnel. On the other hand the lack of competition on specific a short report on their
routes may give rise to higher prices. Flight frequency may be services.
___________________
reduced as members of an alliance eliminate closely scheduled ___________________

flights to the same destination.
___________________
You may buy a ticket from one airline and find yourself flying on ___________________
another airline through code sharing. One of the benefits of airline
___________________
alliances, code sharing is the practice of one airline putting its two-
letter code (e.g., NW for Northwest) on a flight operated by another ___________________
airline. The first airline can market and sell seats on that flight, ___________________
even though its planes are not operating on the route. These
___________________
UP
agreements give airlines the ability to sell tickets to more
destinations. The benefit to travellers is the ability to make a
reservation through one company even when the trip may require
boarding planes operated by different airlines.
Check Your Progress

Fill in the blanks:
1. Low-cost airlines are also known as ………………..
airlines.
2. Lack of competition on specific routes may give rise to
………………. prices.
Airline Meal
An airline meal or in-flight meal is a meal served to passengers on
board a commercial airliner. These meals are prepared by airline
)
catering services. The first kitchens preparing meals in-flight were

established by United Airlines in 1936.
These meals vary widely in quality and quantity across different
(c
airline companies and classes of travel. They range from a simple

beverage in short-haul economy class to a seven-course gourmet
meal in long-haul first class.
The type of food varies depending upon the airline company and
class of travel. Meals may be served on one tray or in multiple
courses with no tray and with a tablecloth, metal cutlery, and
glassware (generally in first and business classes).
Caterers usually produce alternative meals for passengers with

Notes
ES
restrictive diets. These must usually be ordered in advance,
___________________
sometimes when buying the ticket. Some of the more common
___________________ examples include:
___________________  Cultural diets, such as French, Italian, Chinese, Japanese or
___________________ Indian style.
___________________  Infant and baby meals. Some airlines also offer children's
meals, containing foods that children will enjoy such as baked
___________________
beans, mini-hamburgers and hot dogs.
___________________
 Medical diets, including low/high fibre, low fat/cholesterol,
___________________
diabetic, peanut free, non-lactose, low salt/sodium, low-purine,
___________________ low-calorie, low-protein, bland (non-spicy) and gluten-free
___________________ meals.
UP  Religious diets, including kosher, halal, and Hindu, Buddhist
and Jain vegetarian (sometimes termed Asian vegetarian)
meals.
 Vegetarian and vegan meals. Some airlines do not offer a
specific meal for vegetarians; instead, they are given a vegan
meal.
Check Your Progress

Fill in the blanks:
1. An airline meal or in-flight meal is a meal served to
passengers on ……………….. a commercial airliner.
2. Caterers usually produce alternative meals for
passengers with ………………. diets.
Summary
)
Airlines are companies that provide scheduled flights for

passengers and cargo. Each major airline employs a large
contingent of people to ensure its airplanes are as safe and its
(c
operations are as economical as possible. Airline key activities

include: maintaining airplanes, training flight crew and ground
crew, making passenger reservations, scheduling flights, booking
cargo space and handling cargo.
Operating costs result from sharing facilities such as sales offices,
maintenance and operational facilities, in addition to sharing
UNIT 3: Airlines
operational staff such as ground handling and check-in personnel.

The type of food varies depending upon the airline company and Notes
ES
class of travel. ___________________
___________________
Lesson End Activity
___________________
Study the key activities of any two airlines of your choice and
___________________
compare them. Prepare a brief report based on your conclusions.
___________________
___________________
Keywords
___________________
Airline Meal: An airline meal or in-flight meal is a meal served to
___________________
passengers on board a commercial airliner.
___________________
Ground Crew: The ground crew is the support crew supplying the
aircraft with fuel and maintenance, as opposed to the aircrew. ___________________
UP
Alliance: Alliance is a connection based on kinship, marriage, or
common interest; a bond or tie.
No-frills Airlines: No-frills airlines are airlines that offer low
fares but eliminate all non-essential services, such as
complimentary drinks snacks, in-flight entertainment systems,
business-class seating etc.
Training: Training is the acquisition of knowledge, skills, and
competencies as a result of the teaching of vocational or practical
skills and knowledge that relate to specific useful competencies.

1. Why maintenance of airplanes is essential for an airline?
2. Discuss the function of training of crew in airlines.
3. Explain in detail the reservation and booking activity of an
)
airline.
4. What are the major operations of airlines?
(c
5. What is airline meal?
Further Readings
Books

Notes
ES
___________________
___________________
___________________
Web Readings
___________________
http://en.wikipedia.org/wiki/Airline_meal
___________________
___________________
http://www.happycow.net/travel/air_travel.html
___________________
___________________
___________________
___________________
) UP
(c
UNIT 4: Airports
Notes
ES
Activity
___________________
Prepare a PPT presentation
Airports giving an overview of your
local___________________
airport.
___________________
Objectives
___________________
topics: ___________________
 Overview of Airport ___________________

 Functions of Airport ___________________
 Airport Terminals
___________________
 Economic Impact of Airport Privatisation
___________________
 Effect of Globalization
___________________
Introduction
UP
Airports are points of arrival and departure for all airlines. The
facilities they provide are crucial to the smooth functioning of the
air transportation system. They must consider the requirements of
airlines and also meet the needs of passengers and cargo shippers.
Airports vary widely in size. There are small local airports, with
very little traffic, which may serve only non-commercial aviation.
At the other extreme are large international airports which are
mostly used by airlines. International airports have customs,
immigration and health services to accommodate international
arrivals and departures. International flights must land and take
off at international airports.
Overview of Airport
On one side of an airport are the aprons where airplanes are
)
parked and runways from which airplanes take off and land. This
is airside, the operational area where airplanes are loaded or
unloaded, and passengers transfer from the terminal building to
(c
the airplane via boarding gates, buses or even by walking to the

airplane boarding ramp. The ramp where airplanes are parked is
busy with various ground vehicles and moving airplanes. Staff
must be trained to understand how to comply with all the rules
applying to apron traffic.
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________ Source:http://www.visualisation.mottmac.com/files/page/193344/Pulkovo_Airport_Cam_03_
Microsite_Large.jpg
___________________
UP Figure 4.1: Aprons and Runways
On the other side of the terminal building from airside is called

land side. This is the area where ground access is provided to the
terminal building. Parking areas, rental car agencies, taxi stands,
and busses are all on the landside. Some airports provide railroad
stations landside or even within the terminal building. Also
landside you may find commercial parks and aviation-related
activities such as airline administration buildings, hotels and off-
site parking.
Definition
Airport is a terminal facility that functions as an interface between
air and surface vehicles. It is a processing centre providing the
necessary facilities for ticketing, documentation and control of
passengers and cargo (Ashford N. Martin – Stanton, H.P and
Moore CA, 1984).
)
United Nations (UN) body for civil aviation, (International Civil

Aviation Organization, ICAO) defines an a airport as an area on
land or water (including any building, installations and equipment)
(c
intended to be used either wholly or in part for the arrival,

departure of air and surface aircraft' (Airport Economic Manual,
1991).
Airport means a landing and taking off area for aircrafts, usually
with runways and aircraft maintenance and passenger facilities
and includes 'aerodrome' as defined in clause (2) of the Aircraft
Act, 1934.
UNIT 4: Airports
Airport and its Economic Features

Notes
ES
The main economic feature of an airport is a multi-product nature of
activity. It is a system which serves a wide range of needs related to ___________________
the movement of people and goods worldwide. It depends on four ___________________
elements, viz., passengers and goods, its physical, social and
___________________
economic environment, acts as a productive and business generator
unit and the agents which operate in it – mainly airlines and ___________________
franchise of commercial services (Prof Ofelia Betancor & Prof Robert ___________________
Rendeiro, 2001). Airport industry is undergoing a transformation
___________________
globally from being a poorly managed public utility to a highly
___________________
commercialized centre. The goal of airport administration from the
prospective of the city is generally economic development or at the ___________________
least aggregate passenger utility maximization. ___________________
___________________
Happenings at Airport
UP
Following are some of the happenings that usually take place at an
airport:
 Scheduling boarding gates for airplane traffic is very complex
and most of the airports use a computerized system for this
purpose. At large international airports where there is a
mixture of large and small airplanes and often more than one
terminal, managing the apron is a complicated task requiring
constant attention.
 Runway maintenance is extremely important for the safe
operation of airplanes. They must be kept clean and free from
cracks or potholes. If the airport is subject to snow and ice,
their removal is required to keep the runways opened. This
requires expensive and complex equipment as well as trained
staff.
 Lights and markings must be maintained so pilots will not
)
become disoriented when taxiing to and from the runways. All

traffic on the airside is controlled to prevent collisions between
airplanes or ground vehicles. Sometimes vehicles are provided
(c
to guide pilots unfamiliar with the airport. These are called

“follow me trucks”.
 Airports charge airlines for the facilities and service they
provide in the form of landing fees. Every time an airplane
lands at an airport, the airline is billed a landing fee. Usually
the fee is based on the weight of the airplane. When the
airport is very busy, specific times are allocated for airplane
arrivals. These are called landing slots and must be

Notes established in consultation with airlines.
ES
Activity
___________________
Make a chart of various  Baggage handling procedures are designed to ensure that
functions of airport.
___________________ items are loaded on the right airplane before take-off and sent
___________________ to the retrieval area after landing. This is also computerized at
most airports with a system of conveyor belts and bar code
___________________
readers which direct luggage (hopefully tagged properly) to the
___________________ cart which will go to the right airplane.
___________________ In the terminal, airport operators are challenged to make the
___________________ transition from the city side of the terminal to the airplane as
___________________
smooth and efficient as possible. This is called facilitation. All
departing passengers and luggage must go through security
___________________
checks. The luggage check is done by x-ray machines. Security
___________________ checks of passengers have become very strict since the recent wave
UP of terrorist activity. Consequently airport operators find it
challenging to balance their facilitation objectives with security
measures.
Check Your Progress

Fill in the blanks:
1. The luggage check is done by …….……………..
machines.
2. Airports charge airlines for the facilities and service
they provide in the form of …….…………….. fees.
Functions of Airport
Airport functional activities can be classified into three different
groups, viz.
1. Essential operational services and facilities,
)
2. Ground Handling Services, and

3. Commercial Services.
(c
In other words, these functions can be classified as Aeronautical

and Non-aeronautical services.
Aeronautical Services Non-aeronautical Services
Operational Activities Ground Handling Commercial Services

Services
Air Traffic Control Aircraft Cleaning Duty Free Shops
Contd…
UNIT 4: Airports
Metrological Services Provision of Power & Other Retailing Shops

Fuel
Notes
ES
Telecommunications Luggage & Freight Restaurants & Bars
Loading & Unloading ___________________
Police & Security Processing of Freight Leisure Services/Hotel ___________________

Passengers/Baggage & Accommodations
___________________
Fire, Ambulance & First Banks
Aid Services ___________________
Runways, Aprons & Car Rental and Parking/Conference
___________________
Taxiways & Communications Facilities
___________________
Figure 4.2: Classification of Airport Functions
___________________
The above airport functional activities are managed by various
___________________
management to cater to the needs of airport users (Passenger,
Airlines, Exporters, Importers, Visitors, Concessionaires and other ___________________
agencies operating in the airport). The major airport functions are ___________________
as follows:
UP
Airport Management Function
Airside Management
Terminal Management
Cargo Management
Communication Technical Management Navigational

)
Safety & Security

Management
(c
Airport Information
Technology Management
Figure 4.3: Major Functions of Airport

1. Air Side Management: Air Side Management overviews the

Notes
ES
functions of Runway, Apron and Taxiway, Gate Management,
___________________ Vehicular discipline and Allocation of Bays for aircraft in the
___________________ terminal.
___________________ 2. Terminal Management: Terminal Management overviews

the functions of terminal facilities (Flight Information System,
___________________
Closed Circuit TV, Airport House Keeping, City Side
___________________ Management, Trolley Retrieval, Signage Posting, Lost and
___________________ Found, Protocol with airlines, concessionaires and other
___________________ regulatory non-regulatory agencies for smooth functioning of
the terminal).
___________________
3. Cargo Management: Cargo Management looks after the
___________________
processing of Export and Import and Trans-shipment goods at
___________________ the cargo terminal. Further, it also overviews the fast
UP 4.
clearance of goods.
Technical Management: Technical Management overviews
the Air Traffic Services (Communication and Air Navigational
Facilities) to track aircraft for safety landing at airport.
5. Safety and Security Management: Safety Management
function under the country's Civil Aviation Authority. It
oversees the stringent regulations in aircraft operations,
Licensing of Personnel, Airworthiness of Aircraft, Licensing of
Aerodromes, Certification of Indigenous Aircraft, Inquiry of
Accidents and Drafting of Aviation regulations time to time.
Security Management is under the Bureau of Civil Aviation
Security (Issuing of PIC), State Police and other agencies such
as anti-terrorist commando squads in order to provide safety
and security to the airport users.
6. Airport Information Technology Management: Airport IT
)
management co-ordinates for the development of automated

system in facilitation of traffic, passenger processing and
security. The importance of automation can contribute to the
optimal use of airport capacity and enhanced levels of airport
(c
and airline service to passengers.
Check Your Progress

Fill in the blanks:
1. Cargo Management looks after the fast …………………
of goods.
Contd…
UNIT 4: Airports
2. The importance of automation can contribute to the

Notes
ES
optimal use of airport …………………… Activity
___________________
Prepare a presentation on
terminals at New Delhi Indira
Airport Terminals ___________________
Gandhi International Airport
with text and images.
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.
___________________
UP
Smaller airports have one terminal while larger airports have
several terminals and/or concourses. At small airports, the single
terminal building typically serves all of the functions of a terminal
and a concourse.
Some larger airports have one terminal that is connected to
multiple concourses via walkways, sky-bridges, or underground
tunnels (such as Denver International Airport). Some larger
airports have more than one terminal, each with one or more
concourses (such as New York's JFK Airport). Still other larger
airports have multiple terminals each of which incorporate the
functions of a concourse (such as Dallas/Fort Worth International
Airport).
In a broad classification there are two major terminals at airport:
Passenger Terminal
Airports are organizations or institutions of a different order. They
)
are among the most complex of terminals functionally. Moving

people through an airport has become a very significant problem,
not least because of security concerns. Passengers may spend
(c
several hours in transiting, with check-in and security checks on

departure and baggage pick up and, in many cases, customs and
immigration on arrival. Planes may be delayed for a multitude of
reasons. The result is that a wide range of services have to be
provided for passengers not directly related to the transfer
function, including restaurants, bars, stores, hotels, in addition to
the activities directly related to operations such as check-in halls,
passenger loading ramps and baggage handling facilities. At the

Notes same time, airports have to provide the very specific needs of the
ES
___________________ aircraft, from runways to maintenance facilities, from fire
protection to air traffic control.
___________________
___________________ Measurement of activities in passenger terminals is generally

straightforward. The most common indicator is the number of
___________________
passengers handled, sometimes differentiated according to arrivals
___________________ and departures. Transfer passengers are counted twice (once on
___________________ arrival, once on departure), and so airports that serve as major
transfer facilities inevitably record high passenger totals. A further
___________________
measure of airport activity is the number of aircraft movements, a
___________________
figure that must be used with some caution because it pays no
___________________ regard to the capacity of planes. High numbers of aircraft
___________________ movements may not be correlated with passenger traffic totals.
UP Freight Terminals
Freight handling requires specific loading and unloading
equipment and especially a specialized skill needed to run the
airfreight terminal. In addition to the facilities required to
accommodate trucks (berths, loading bays and freight yards
respectively), a very wide range of handling gear is required that is
determined by the kinds of cargoes handled. The result is that
terminals are differentiated functionally both by the mode involved
and the commodities transferred. In recent years, the air cargo
terminals are exploring the scope of doing business, exclusively
through freighter aircraft movements. 20.0 per cent of freighter
aircraft are sharing the air transport industry. Generally, general
cargo, value cargo and perishable cargo are transported by air for
faster market distribution. The total cost for construction of air
cargo terminal varies according to the size of terminal. A medium
size air cargo terminal construction cost varies approximately US $
)
1 billion to US $ 2 billion.
International air cargo is categorized into Export and Imports goods.
Air cargo terminal is used for processing import, export,
(c
transshipment cargo and unaccompanied baggage. Airport

authorities are generally the handling agency and manage the
terminal operations besides being the government appointed
custodian of import and export cargo under the Customs Act. Air
cargo terminals have separate aircraft parking bays, terminals with
various facilities provided for the exporters and importers, and
UNIT 4: Airports
airlines' handling agents. Modern technological equipments are

used for fast clearance of cargo. Notes
ES
Activity
Another classification of terminals can be: ___________________
Prepare a slideshow on the
economic impact of
___________________
privatization of airports.
Satellite Terminal
___________________
A satellite terminal is a building detached from other airport
___________________
buildings, so that aircraft can park around its entire
circumference. The first airport to use a satellite terminal was ___________________
London Gatwick Airport. It used an underground pedestrian ___________________
tunnel to connect the satellite to the main terminal. This was also
___________________
the first setup at Los Angeles International Airport, but it has
since been converted to a pier layout. The first airport to use an ___________________
automatic people mover to connect the main terminal with a ___________________

satellite was Tampa International Airport, which is the standard
___________________
today.
Semicircular terminals
UP
Some airports use a semicircular terminal, with aircraft parked on
one side and cars on the other. This design results in long walks
for connecting passengers, but greatly reduces travel times
between check-in and the aircraft. Airports designed around
this model include Charles de Gaulle International Airport
(terminal 2), Chhatrapati Shivaji International Airport, Mumbai
(terminal 2), Dallas/Fort Worth International Airport, Seoul's
Incheon International Airport, Toronto Pearson Airport, Kansas
City Airport and Sapporo's New Chitose Airport.
Check Your Progress

Fill in the blanks:
1. Some airports use a ………………….. terminal, with
)
aircraft parked on one side and cars on the other.

2. High numbers of aircraft movements may not be
correlated with …………………. traffic totals.
(c
Economic Impact of Airport Privatisation

The airport industry is going through an exceptional
transformation that has driven the market towards increasing
levels of competition. Additionally, major investment programs are
required to meet the expected growth in air travel demand
(particularly in some emerging regions, such as Asia).
Nevertheless, governments and city airport authorities are

Notes becoming more reluctant to support airport projects, since they
ES
___________________ have major budgetary constraints.
___________________ Airports and airlines have historically been considered as essential
___________________ components of the national aviation system, and hence both were
regarded as public utilities. Due to this approach, operational and
___________________
handling activities were contemplated as being fundamental for
___________________ the development of the airport business, and commercial activities
___________________ had a less important role to play. For that reason, airport assets
and property have always been publicly managed and commercial
___________________
activities have occasionally been contracted or outsourced to
___________________
private companies. Within such a framework, economic regulation
___________________ was seen as superfluous.
___________________ The traditional airport management model becomes visibly
UP unsustainable when most governments begin to be concerned
about the burden of airport financing and its lack of efficiency.
However, for many years, a majority of airports around the world
have continued to operate under this model and some still remain
attached to it. Since the 1980s, the industry started to evolve with
changes being brought about in the traditional airport
management model. Currently, governments are progressively
regarding airports as potential profit-making enterprises rather
than merely considering them as part of the infrastructure
suppliers.
There are three main potential economic gains obtained from
privatization:
 Improvements in operating efficiency (the private for-profit
business model more often leads to a further exploration for
means to cut costs and boost revenues than public
management),
)
 The introduction of new management styles and marketing

skills directed to serve users with a more consumer-oriented
approach, and better investment decisions, and
(c
 However, in many cases, these investment decisions might

also imply under investment or capacity reductions, which
mandates the presence of a regulatory environment.
Regardless of all its potential benefits, privatisation also involves
risks and requires prudent management from the public
authorities. Several policy issues have to be contemplated by the
UNIT 4: Airports
governments if the public interest needs to be safeguarded.

Specifically, the eventual externality, negative or positive effect Notes
ES
Activity
imposed by airport users over non-users or other users, generated ___________________
Write an article for a
by the provision of airport services or strengthened market newspaper on the effect of
___________________
globalization on airports.
position gained by the airport operator after privatization should
be carefully considered. ___________________
In this respect, a regulatory regime (in terms of charges, safety, ___________________
quality, and noise intensity or spatial planning) should be designed ___________________

before privatization takes place and the regulatory role ought to be ___________________
delegated to an independent body.
___________________
1. Airports and airlines have historically been considered ___________________

UP
as essential components of the national …………………
system.
2. Governments are progressively regarding airports as
potential ………………-making enterprises.
Effect of Globalization
Although globalization has had little effect besides increasing their
traffic flows, a handful of global airport operators could be
managing most of the world’s airports within the foreseeable
future. Major airport operators may propose to expand their
business to other locations and other countries in response to calls
for tenders from governments wishing to involve the private sector
in ownership, management and operations of airports.
Issues
)
The major issues that airport operators must deal with today are
airport capacity, facilitation, security, and safety.
Capacity
(c
Capacity is the flow of passengers and airplanes that any

particular airport can accommodate without significant delays,
inconvenience, safety, or security problems. If aircrafts movements
at an airport exceed its runway capacity, restrictions in arrivals a
departures will be imposed which will affect other components of
the air transport system. For example an airplane travelling to an
airport that is operating over capacity may have to delay its

Notes departure time until a convenient landing slot can be found. There
ES
___________________ may be numerous airplanes waiting for departure clearance thus
taking up boa; gates required by arriving airplanes. Connecting
___________________
flights may have to be delayed in to accommodate late passengers.
___________________
This will affect the air navigation system which copes with
___________________ changed flight plans and crowded airspace.
___________________ Access to and from the terminal on the landside must also be able
___________________ to handle peak for arriving and departing passengers. The
terminal building itself may also present capacity. Issues if it
___________________
cannot accommodate the flow of passengers efficiently.
___________________
___________________ Facilitation
___________________ Aspects to be considered in preventing undue delays to passengers
UP are:
 Verification of travel documents and visas.
 Customs clearance of passengers and cargoAir terminal
signage.
 Baggage handling facilities.
 Access for disabled persons.
 Contagious diseases (such as SARS).
IATA has initiated a program called “Simplifying Passenger
Travel” (SPT). Its objective is to improve the passenger travel
experience by replacing repetitive checks of passengers and their
documents with a new streamlined system that will collect
information only and share it electronically. Pilot projects have
begun in Holland, the United Kingdom, Australia, Canada and
Japan. Adoption of this technology means that most people avoid
)
the long waits characteristic of airports at the present time.
Security
Aviation security is defined by ICAO in Annex 17 as a combination
(c
of measures of security for human and material resources intended

to safeguard international civil aviation against acts of unlawful
interference.
A State’s security obligations are derived from Annex 17 (Security)
and international conventions and are backed by the national
regulations. ICAO Annex 17 specific addresses the aviation
UNIT 4: Airports
security programme required by ICAO. This programme has for

the objective the protection and safeguarding of passengers, crews, Notes
ES
ground personnel and the general public against acts of unlawful. ___________________
Safety ___________________
___________________
Safety is a condition that is free of risk. ICAO has established a
certification program to ensure that minimum safety standards are ___________________
met at airports. Responsibility for enforcing these standards ___________________
belongs to regulatory authorities within each nation. ICAO has
___________________
also specified time lines for meeting certification requirements. In
the future, airlines may refuse to fly into uncertified airports. This ___________________
could have disastrous effects on the economy of a nation because it ___________________

will interfere with foreign trade and tourism. ___________________
Fill in the blanks:

UP
1. Safety is a condition that is free of ..……………..…
2. Access to and from the terminal on the landside must
also be able to handle peak for arriving and
..……………..… passengers.
Summary
In this unit you have learned that there are many types of airports
and that the larger ones are often international airports. There are
many activities going on at airports in order to make sure
airplanes come and go efficiently. In the past most airports were
owned and operated exclusively by the government but many are
now operated by other organizations including private companies.
The privatization trend continues around the world. Airports must
)
deal with capacity issues as traffic increases. They are also faced
with the problem of balancing the speed of passenger processing
while meeting strict requirements for security checks. ICAO is
concerned with safety at airports and now requires that all
(c
international airports be certified.
Lesson End Activity

Visit your city airport and enquire related officials about the
overall functioning of airport and make a slideshow based on your
learnings.
Keywords
Notes
ES
Concourse: A large open area inside or in front of a public
___________________
building, as in an airport.
___________________
Terminal: A station at the end of a transportation line or at a
___________________
major junction on a transportation line. The terminal is composed
___________________ of freight and passenger transit infrastructures as well as
___________________ infrastructures for plane accommodation.
___________________ Capacity: Capacity is the flow of passengers and airplanes that

any particular airport can accommodate without significant delays,
___________________
inconvenience, safety, or security problems.
___________________
Facilitation: Facilitation is a combination of measures and
___________________
resources intended to make facilities services more accessible as
___________________ well as to speed up the process that passengers and g. must go
UP through before boarding and after landing.
Interface: A point where two systems, subjects, organizations,
etc., meet and interact.
Globalization: Trade networks established by multinational
corporations imply important movements of passengers and freight
over the economic space.

1. What are aprons and runways when we talk about airports?
2. Discuss the economic features of airport.
3. What are the functions of an airport?
4. What are the classifications of airport terminals?
5. Explain privatization of airports.
)
6. Discuss the effect of globalization on airports.
Further Readings
(c
Books
UNIT 4: Airports

Notes
ES
___________________
Web Readings
___________________
http://www.icao.int/sustainability/CaseStudies/India.pdf
___________________
http://www.scribd.com/doc/82865393/Airport-Functions ___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
(c
(c
) UP
ES
UNIT 5: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study: Transfer Passengers’ Perceptions of Airport
Service Quality of Incheon International Airport ___________________
___________________
Airport passengers can be divided into different groups such as
departing, arriving and transfer passengers. Each of these groups ___________________
will have a different set of needs and wishes when they use
different facilities at the airport. For example, transfer ___________________
UP
passengers have discretionary time waiting and they will likely to
value their experience in airport facilities differently compared to
origin and destination passengers. The needs of transfer
passengers are quite different from those of origin and destination
passengers. After deregulation and privatization, many large
international airports have served as hubs for transfer passengers
therefore the importance of transfer passengers have been
increased. Thus, understanding and catering for the specific
needs of transfer passengers are fundamental in achieving growth
in today’s competitive airport environment. Here the effect of
airport service quality on the transfer passenger traffic of Incheon
International Airport (IIA) is explored by examining a conceptual
model that considers airport service quality as well as a number
of other factors that simultaneously influence transfer passenger’s
behavior.
Service quality is customer’s long-term, cognitive evaluations of a
firm’s service delivery. Customers compare what they expect to
get with what they actually receive during the postpurchase stage
of the service purchase process. Before customers purchase a
service, they have an expectation about service quality that is
based on individual needs, past experiences, word-of-mouth
)
recommendations, and a service provider’s advertising. After

buying and consuming the service, customers compare its
expected quality with what they actually received. A frequently
used and highly debated measure of service quality is the
SERVQUAL scale. According to its developers, SERVQUAL is a
(c
diagnostic tool that uncovers a firm’s broad weaknesses and

strengths in the area of service quality. The SERVQIAL
instrument is based on five service quality dimensions that were
obtained through extensive focus group interviews with
consumers. The five dimensions include tangibles, reliability,
responsiveness, assurance, and empathy, and they provide the
basic skeleton underlying service quality.
Contd…
Delivering high service quality has been recognized as the most

Notes efficient way of ensuring that a company’s offerings are uniquely
ES
positioned in a market filled with look-alike competitive offerings.
___________________
Improving the quality of manufactured goods has become a major
___________________ strategy for both establishing efficient, smoothly running
operations and increasing demanding higher and higher quality.
___________________ Providing high quality service and ensuring customer satisfaction
are widely recognized as important factors leading to the success
___________________
of the various service industries. It is commonly believed that
___________________ higher service quality can lead to a customer’s higher overall
satisfaction and subsequently to positive behavioral intentions.
___________________ Like other service industries, service quality is an important issue
in the airport management. The overall airport’s experience
___________________
perceived and recollected by international travellers may have a
___________________ significant impact in promoting or discouraging future
international tourism and business activities in the corresponding
___________________ country. Thus, the evaluation of passenger satisfaction levels on
airport services has become an important issue for airport
___________________ management.
UP Customers experience various level of satisfaction or
dissatisfaction after each service experience according to the
extent to which their expectations were met or exceeded. Because
satisfaction is an emotional state, their postpurchase reactions
can involve anger, dissatisfaction, irritation, neutrality, pleasure,
or delight. The importance of customer satisfaction cannot be
overstated. Without customers the service firm has no reason to
exist. Every service business needs to proactively define and
measure customer satisfaction. Companies who command high
customer satisfaction ratings seem to have the ability to insulate
themselves from competitive pressures, particularly price
competition. Past research studies have suggested that
perceptions of service quality affect feelings of satisfaction, which
then affect loyalty and post-purchase behaviors. Satisfaction is
perceived as being an important mediator of store loyalty drivers.
Customer satisfaction has always been considered an essential
business goal because it was assumed that satisfied customers
would buy more. Recently, the evaluation of passenger
satisfaction levels on airport services has become an important
issue for airport management to understand their consumers and
in designing their marketing strategies.
)
The general definition of value is a consumer's perception of the

subjective worth of some activity or object considering all net
benefits and costs of consumption. Service value has been
identified as an important variable of customer satisfaction and
(c
behavioral intentions. Corporate image is described as the overall

impression made on the minds of the public about a firm. Image is
a perception of an organization held in consumer memory which
influences the perception of the operation of the company also it is
another important factor in the overall service evaluation. Image
is based on all of a customer's consumption experiences, and
service quality is representative of these consumption
experiences. Hence, the perception of service quality directly
affects the perception of image.
Contd…
UNIT 5: Case Study
Questions:
Notes
ES
1. Study and analyse the above case.
2. Write down the case facts. ___________________
3. What do you infer from it? ___________________
Source: http://www.ccsenet.org/journal/index.php/ibr/article/download/9893/7838 ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 6: Airline Industry
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-II
)
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Detailed Contents
Notes
ES
UNIT 6: AIRLINE INDUSTRY
___________________ UNIT 8: CARGO TRANSPORT
 Introduction  Introduction
___________________
 Overview of Airline Industry  Air Cargo
___________________
 Scope of the Airline Industry  Cargo Handling Operations
___________________
 Airport Operations  Documentation and Control
___________________
 Types of Airline Service  Apron Cargo Handling
___________________
 Passenger Travel
UNIT 9: AIRLINES TERMINOLOGY
___________________
UNIT 7: AIRLINES MANAGEMENT  Introduction
___________________
 Introduction  Terms used in Airlines
___________________
 Concept of Airlines Management  Cabin Crew
___________________


) UP
Challenges of Airline Management
Airline Planning and Operations

 Airline Announcements
UNIT 10: CASE STUDY

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Notes
ES
Activity
___________________
Write a report on airline
Airline Industry industry, giving an overview.
___________________
___________________
Objectives
___________________
topics: ___________________
 Overview of Airline Industry ___________________

 Scope of the Airline Industry
___________________
 Airport Operations
___________________
 Types of Airline Service
 Passenger Travel ___________________
___________________
Introduction
UP
What do you mean by the airline industry? What does it include?
What types of services are provided? Who is involved? These are
some of the questions that are addressed in this unit. You will also
learn about the role of the airlines as a stimulant for global
employment, and how air transportation has been a positive
influence in world development. This unit will introduce you to
basic concepts that will serve as the foundation for the rest of the
units.
Few inventions have changed how people live and experience the
world as much as the invention of the airplane. During both World
Wars, government subsidies and demands for new airplanes vastly
improved techniques for their design and construction. Following
the World War II, the first commercial airplane routes were set up
in Europe. Over time, air travel has become so commonplace that it
would be hard to imagine life without it. The airline industry,
)
therefore, certainly has progressed. It has also altered the way in

which people live and conduct business by shortening travel time
and altering our concept of distance, making it possible for us to
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visit and conduct business in places once considered remote.
Overview of Airline Industry

In the simplest of terms, the airline industry is a system of
transportation. It is part of a much larger transportation industry,
which focuses on moving people and goods from one place to
another. A comparison of the most important modes of transport

Notes shows us that, globally, the most widely used modes of passenger
ES
___________________ transport are: the automobile, followed by buses, air, and railways.
On the other hand, the most widely used modes of freight
___________________
transport, for moving goods or cargo are: sea, followed by road,
___________________
railways, oil pipelines, inland navigation and air freight.
___________________
Modes of transportation have common features. For example, they
___________________ each require an infrastructure, including transport networks and
___________________ nodes or terminals; vehicles as the means of transportation; and
operations to control the transportation systems. In the case of
___________________
airlines, we refer to the transport networks as the airways, and the
___________________
terminals as airports. The vehicles used are different types of
___________________ airplanes. Air traffic control refers to the operations used to control
___________________ air transportation. You will learn more about these specific terms
UP later in the course.
An airline’s basic function is to transport people and goods from
one location to another using the airways. The airline industry
consists of organizations providing this service for passengers
and/or cargo. An airline company owns or leases large planes
generally referred to as commercial transport planes to supply this
service. Most of these planes are designed specifically to carry
passengers and some cargo. Other commercial transports are
designed to carry only cargo. The scale and scope of airline
companies thus range from those with a single airplane carrying
cargo, through full-service international airlines operating
hundreds of airplanes in their fleet.
Air transport provides the only global transportation network for
passengers and cargo, making it essential for global business
operations and for personal travel and tourism. It provides
substantial economic benefits by connecting people and businesses
)
around the globe. It also provides significant social benefits by

facilitating great communication between different parts of the
world and by providing greater access to remote areas.
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Check Your Progress

Fill in the blanks:
1. An airline’s basic function is to …………….. people and
goods from one location to another using the airways.
2. Air ……………….. control refers to the operations used
to control air transportation.
Scope of the Airline Industry

Notes
ES
The airline industry itself is also part of another larger industry, Activity
___________________
Write an article for a magazine
the aviation industry, which refers to the range of activities
on the scope of Airline
involved in building and flying aircraft. These include aircraft ___________________
Industry.
manufacturing, airport operations and aviation support industries. ___________________
Aircraft manufacturers produce commercial transport planes, the ___________________

smallest of which carry from 20 to 100 passengers and the largest
___________________
of which can carry several hundred. Most of these planes are jet
___________________
planes with two, three, or four engines. Manufacturers also
produce general aviation planes, which are small airplanes with ___________________
one or two engines. Although some of these smaller planes have jet ___________________
engines, most are propeller driven. These light planes are used for
___________________
a variety of general aviation activities, such as flight instruction,
___________________
UP
inspection of telephone lines, spraying field crops or air taxi
services. The latter serve small communities and provide
connecting flights to larger airports.
Sometimes these are referred to as commuter airplanes. Light
planes are also used by businesses to fly their employees to out-of-
town meetings. Manufacturers also produce military planes, which
include bombers, fighters and military transports owned by
governments of countries.
Check Your Progress

Fill in the blanks:
1. The airline industry itself is also part of another larger
industry, the ………………….. industry.
2. ………………….. planes are also used by businesses to
fly their employees to out-of-town meetings.
)
Airport Operations
Airport Operations refer to the ground facilities required for air
travel, including runways and navigation aids. While you may be
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familiar with larger airport facilities, many are small airfields that
are able to serve only light planes, helicopters or other specialized
aircraft such as seaplanes.
Aviation support industries provide a wide range of services and
supplies to airlines and airports. For example, some companies
supply fuel for airplanes; others furnish maintenance, or repair,
services. A variety of food suppliers prepare meals to be served on

Notes flights. Other companies servicing the airport involve ground
ES
Activity
___________________
Discuss within your group the transportation, including van, shuttle or taxi services. Freight
operations of airport. forwarders organize arrangements for shipping air cargo. There
___________________
are specialized professional industries providing a variety of
___________________
services such as: flight insurance and weather information, to
___________________ name a few.
___________________ Travel agents are an important contributor to the airline industry.
___________________ The formal part of their responsibilities includes being authorized
to sell and issue airline tickets. Accredited agents accept payments
___________________
from customers on behalf of the airlines whose tickets are issued.
___________________
It is essential that customers and airlines can rely on those agents
___________________ for tickets to be issued according to the required standards, and for
___________________ payments to reach the airlines in a timely manner.
UP Agents work hard on behalf of the consumer. The role of a travel
agent is to make the process of going on a trip - whether for
business or pleasure - a stress-free and memorable experience.
Travel agents spend time not only searching for affordable prices
and booking tickets, but also personalizing their services for
individual clients.
An even bigger picture of supporting industries includes the
hospitality service industries, such as hotels, car rentals, tourism
agents and cruise operators who attend to the needs of air
travelers once they reach their destinations.
Check Your Progress

Fill in the blanks:
1. The role of a travel agent is to make the process of
going on a trip a stress-free and ……………………
experience.
)
2. …………………… forwarders organize arrangements for

shipping air cargo.
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Types of Airline Service

There are a number of ways to categorize airline service. Here you
will differentiate between two main types of airline service,
scheduled flights and non-scheduled flights.
Scheduled Flights
Notes
ES
Scheduled flights take place using predetermined routes according
to a planned timetable. These timetables refer to regular, ___________________
published schedules. As a customer, you are bound to the airline’s ___________________

schedule. Airlines mainly use large commercial transport planes
___________________
for such flights. Scheduled airlines also include cargo flights that
operate on a published schedule. ___________________
The International Air Transport Association (lATA), the governing ___________________

body that creates regulations and standards for international air ___________________
transport, focuses primarily on scheduled traffic. Flights by lATA
___________________
members represent 94% of the world’s international scheduled
traffic. lATA is now comprised of some 260 member airlines from ___________________
136 countries. According to the latest lATA statistics, in 2004 there ___________________
were more than 1.9 billion scheduled passengers and 39.5 million ___________________
UP
tons of cargo transported, of which 25 million tons were
international.
Scheduled airlines are considered to be a category of civil aviation,
representing all types of non-military aviation, and which includes
both private and commercial aviation. The other major category of
civil aviation is general aviation, including all other flights, private
or commercial. For the public, the most visible part of civil aviation
is scheduled air transport, but in fact, the vast majority of flights
operate under general aviation. From a global perspective, there
are over 900 airlines worldwide with an Air Operating Certificate,
which means they have been legally certificated to operate an
airline.
The airlines that provide scheduled flight service can be
categorized as: major airlines, low cost carriers or regional airlines.
Major Airlines
)
Major airlines are usually those large airlines that connect the
major cities of the world. These airlines have the capability to
handle international destinations and fly just about anywhere in
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the world. Generally these airlines represent the bigger names

that you often hear about in the news. Typically, these airlines are
also the largest employers in the airlines business.
Low cost carriers (LCCs)

Low cost carriers (LCCs), also known as “no-frills” airlines, offer
generally low fares in exchange for eliminating many traditional
passenger services. The term originated within the airline industry

Notes referring to airlines with a low - or lower - operating cost structure
ES
___________________ than their competitors. The term has since come to define any
carrier with low ticket prices and limited services regardless of
___________________
their operating costs.
___________________
___________________ Regional Airlines

___________________ Regional airlines, on the other hand, represent a type of airline
___________________
service that is intended to “feed” the major airlines. As feeder
airlines, their role is to bring passengers to the major airports,
___________________
where they will connect for longer distance flights on larger
___________________ aircraft.
___________________ Regional airlines also are sometimes formed to offer transportation
___________________ service between small, isolated communities unable to support
UP larger aircraft. In these cases it is referred to as a commuter
airline. In some cases the airline is the only practical connection to
a larger town. Peninsula Airways, for example, links the remote
Aleutian Islands of Alaska to the city of Anchorage. In general
small carriers are more prevalent than major airlines in
developing countries/regions. In parts of the world that do not have
highways or railroads, these light aircraft are used to carry both
passengers and cargo.
Many large airline companies, particularly in the U.S., are

associated with a regional airline that typically uses the same
company logo. These commuter airlines may even be subsidiaries
of the major airline. In Europe, the regional airlines serve the
intra-continental sector. This means that they offer essential
connecting services between many of the continent’s peripheral or
secondary regions, allowing passengers to avoid transfers at larger
airports.
)
Like in the U.S., some of these regional airlines are also

subsidiaries of national air carriers. The rest represent
independent airlines organized in innovative ways. For example,
they may be structured as membership clubs which customers
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must join. Examples of European regional airlines include: Aer

Arann, VLM, EuroManx, and Cimber Air.
Non-Scheduled Flights
Non-scheduled flights are typically charter flights for travelers who
want to hire a plane to fly to a specific place at a specific time. A
charter airline operates these flights that take place outside
normal schedules through hiring arrangements with a particular

customer. Notes
ES
As mentioned previously, most passenger travel takes place on ___________________
scheduled flights, which are made over certain routes according to ___________________
a published timetable. Non-scheduled flights are mainly charter
___________________
flights for customers who want to hire a plane to fly to a particular
place at a particular time. ___________________
___________________
Air charter service is a growing part of the airline industry.
Markets for these services include athletic teams, corporations and ___________________
government agencies. Charter airline companies can be found all ___________________
over the world. They tend to be cooperatively linked in a worldwide
___________________
contact group allowing a company to help with contacts or
arrangements anywhere in the world through their associates. ___________________
___________________
UP
With chartered aircraft, a passenger may have access to many
more airports than with scheduled flights. In Europe, for example,
there are over 2,000 airports, but only 10% are reached by
scheduled airlines. There are over 5,000 airports across the United
States; the scheduled airlines, however, serve roughly 4% of them.
You may also see airlines being classified more specifically

according to the routes they take. For example, intercontinental
(between continents), intercontinental (within a continent),
international (between countries) or domestic (within a country)
describe these different types of routes.
Most countries have at least one airline. Airlines can be either

owned privately or by the government. Originally, the airline
industry was either partly or wholly government owned. This is
still true in many countries, but in the United States all major
airlines are private. Many countries have one or more government-
owned airlines, such as Australia’s Qantas Airways.
)
Check Your Progress

Fill in the blanks:
1. Scheduled flights take place using ……………..……….
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routes according to a planned timetable.

2. The other major category of civil aviation is
……………..………. aviation.
Passenger Travel
Notes
ES
Activity
There are essentially two main types of air travelers, those who
Make a slideshow on the
___________________
categories of passenger travel for business and those who travel for pleasure, that is, the
travel.
___________________ leisure market:
___________________
Business Travel
___________________
The business market consists of those passengers who need to
___________________
travel for the purpose of attending work-related meetings, visiting
___________________ clients or otherwise expanding and supporting the financial
___________________ objectives of their business concerns. The rapid growth of world
trade in goods and services, as well as global investment, and the
___________________
relative ease of air travel, have all contributed to the growth of
___________________
business travel. Companies have become increasingly globalised
___________________ with customers, supply and production chains located all over the
UP world. This, in turn, has spurred travel growth as managers have
been required to oversee these dispersed business ventures and
visit their customers. Business, or “corporate”, aviation refers to
the transportation of passengers, as well as cargo, for business
purposes.
Some corporations have travel requirements extensive enough to
justify owning their plane and having crew on staff. Others will opt
to charter for their corporate needs. Companies use these planes,
on an as needed basis, to fly their executives, managers,
salespeople and other employees to meetings which are out of
town. This provides a high convenience factor, allowing for greater
efficiency. This type of executive travel mainly uses the facilities of
smaller airports.
Leisure Travel
The leisure market, on the other hand, consists of passengers who
)
travel for recreational, or personal, reasons. The availability of

large commercial aircraft has made it convenient and affordable
for people to travel further to new and exotic destinations, so
promoting the growth of this market. In addition, many
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governments in developing countries have realized the benefits of

tourism to their national economies. They invested heavily in the
development of resorts and other infrastructure to entice tourists
from the prosperous countries in Western Europe and North
America to visit their countries. This brought in much needed
foreign currency and investment. This influx of money, in turn,
encouraged their own citizens to start to travel as their economies,

and therefore their own personal incomes, grew. As a result there Notes
ES
is continual growth in the international tourist market. ___________________
___________________
1. Companies have become increasingly ….……………..
with customers, supply and production chains located ___________________
all over the world. ___________________
2. There is continual growth in the international ___________________
….…………….. market.
___________________
___________________
Summary
___________________
UP
An airline’s basic function is to transport people and goods from
one location to another using the airways. The airline industry
consists of organizations providing this service for passengers
and/or cargo. It is itself part of another larger industry, referred to
as the aviation industry, which includes the range of activities
involved in building and flying aircraft. These include aircraft
manufacturing, airport operations and aviation support industries.
The two main types of airline service are scheduled flights and
non-scheduled flights. Scheduled flights take place using
predetermined routes according to a planned timetable. Non-
scheduled flights are typically charter flights for travelers who
want to hire a plane to fly to a specific place at a specific time.
The airlines that provide scheduled flight service can be
categorized as major airlines, low cost carriers or regional airlines.
Major airlines are usually those large airlines that connect the
major cities of the world. Low cost carriers usually provide point-
)
to-point service with no additional amenities. Regional airlines, on

the other hand, represent a type of airline service that is intended
to feed the major airlines.
(c
There are essentially two main types of air travelers, those who
travel for business and those who travel for pleasure - the leisure
market.
Lesson End Activity

Notes
ES
Write a digital essay on business travel with text and images to
___________________
facilitate your explanation.
___________________
___________________
Keywords
___________________
Air Traffic Control: Air traffic control refers to the operations
___________________
used to control air transportation.
___________________
Airport Operations: Airport operations refer to the ground
___________________ facilities required for air travel, including runways and navigation
___________________
aids.
___________________ Freight Forwarder: A freight forwarder is a person or company

that organizes shipments for individuals or corporations to get
___________________
UP goods from the manufacturer or producer to a market, customer or
final point of distribution.
Aviation: Aviation is the design, development, production,
operation, and use of aircraft, especially heavier than air aircraft.
Low Cost Carrier: A low-cost carrier or low-cost airline is an
airline that generally has lower fares and fewer comforts.

1. Give an overview of airline industry.
2. What is the scope of airline industry?
3. What do you mean by airport operations?
4. Categorize the airlines that provide scheduled flight services.
5. Briefly describe passenger travel.
)
Further Readings
Books
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Fojt, Martin, (2006), Strategic Direction: The Airline Industry,

Web Readings
Notes
ES
http://www.investopedia.com/features/industryhandbook/airline.asp
___________________
http://www.columbia.edu/cu/consultingclub/Resources/Airlines_Eri
c_Henckels.pdf ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
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) UP
ES
UNIT 7: Airlines Management
Notes
ES
Activity
___________________
Write a short report on the
Airlines Management concept of airlines
___________________
management.
___________________
Objectives
___________________
topics: ___________________
 Concept of Airlines Management ___________________

 Challenges of Airline Management ___________________
 Airline Planning and Operations
___________________
___________________
Introduction
___________________
UP
Airline management practice has evolved significantly over the
past three decades. The development of this practice has
contributed to recent advances in computation and communication
technologies and, more importantly, the need to reduce costs and
increase revenues. Nowadays airlines seek to perform efficiently in
a competitive environment that only provides marginal profits. The
airline business is characterized as being one of the most complex,
involving multiple conflicting decisions that all need to be
optimized at the same time.
As in many mature industries, consolidation is a trend, as airlines
form new business combinations, ranging from loose, limited
bilateral partnerships to long-term, multi-faceted alliances of
groups of companies, to equity arrangements between companies,
to actual mergers or takeovers. Since governments often restrict
ownership and merger between companies in different countries,
we see most consolidation taking place within a country. In the
)
U.S., over 200 airlines have been merged, been taken over, or
simply gone out of business since deregulation began in 1978.
Many international airline managers are actively lobbying their
governments to permit greater consolidation, in order to achieve
(c
higher economies of scale and greater efficiencies.
Concept of Airlines Management

A major competitor in the air transportation industry is the
“airline”. The current records show that there are more than 900
commercial airlines around the world, with a total fleet of almost
22,000 aircraft (ICAO 2006). Commercial airlines serve almost

Notes 1,670 airports throughout a route network of several million
ES
___________________ kilometres. These airlines transport about to 2 billion passengers
yearly and 40 percent of Inter-regional exports of goods (i.e., by
___________________
value). Also, an estimated of 2.1 million people are employed by
___________________
airline or handling agents: like, as flight-crew, checking-staff and
___________________ maintenance-crew (ICAO 2006).
___________________ The airline services are categorized as intercontinental,
___________________ continental, regional, or domestic, and may be operate as
scheduled services or charters. In terms of the size, airlines differ
___________________
from those with a single airplane carrying mail or cargo, through
___________________
full-service international airlines operating many hundreds of
___________________ airplanes. In various parts of the world, the airlines are
___________________ government-owned or government-supported. In recent decades,
UP the trend has been to move toward independent, commercial public
companies by giving more freedom to non-government ownership
of airlines.
The ever-increasing number of commercial airline companies has
put more demands on their management to constantly seek profits,
reduce cost, and increase revenues. Increasing demand for air
transportation service has constrained airline management to take
benefit of the opportunities in different markets. At the similar
time, the increased competition among airlines necessitates that
airline management seek effectiveness in all the decisions to
promote their profit. It is no shock that many airlines throughout
aviation history have been incapable to remain in business, and in
number of cases, it is agreed that the downfall of these airlines has
been attributable to poor management.
The practice of airline management has evolved extensively over
the past three decades. The expansion of this practice has
)
contributed to recent advances in the communication technologies

and, more notably, the need to decrease costs and increase
revenues. Nowadays, airlines seek to perform efficiently in a
competitive environment that only provides the marginal profits.
(c
The airline business is characterized as one of the most complex

business, involving multiple conflicting decisions that all need to
be optimized at the same time. Several strategies have been
developed and used for improved plan and manage airlines. These
strategies rely on scientific approaches which are available in
operations research and mathematics literature to optimize
airlines’ decision-making processes, and are generally modelled

within computerized systems that can automate decision making. Notes
ES
Activity
Therefore, these scientifically-based plans promise an easier Prepare a presentation on
___________________
decision-making practice for the airlines. The requirement for challenges of Airline
Management.
___________________
these tactics becomes more vital as the size of the airline increases,
and making the decisions based on individuals’ opinion or ___________________
experience becomes more difficult. ___________________
Several tactics have been developed and used to better plan and ___________________
operate airlines. These tactics bank on scientific approaches ___________________
available in operations research and mathematics literature to
___________________
optimize airlines’ decision-making processes, and are usually
modeled within computerized systems that can automate decision ___________________
making. Therefore, these scientifically-based tactics promise an ___________________
easier decision-making practice for the airlines. The need for these
___________________
UP
tactics becomes more crucial as the size of the airline increases,
and making decisions based on individuals’ judgment or experience
becomes more difficult. The next section highlights the main
challenges of airline management that elaborate the complexity of
the airline decision-making process.
Check Your Progress

Fill in the blanks:
1. In various parts of the world, the airlines are
………………… -owned.
2. Airlines seek to perform efficiently in a …………………
environment that only provides the marginal profits.
Challenges of Airline Management

Challenges in the path of airline management can be explained as
)
below:
Impact of other Competitors in the Industry

The airline management does not work independently of other
(c
players in the air transportation industry. Indeed, the decisions of

airline management are extremely affected by these other players.
The Figure 7.1 depicts the various entities that cooperate with
airline management and influence the decisions concerning
government, airports, customers, alliances, suppliers, unions and
competitors.
Notes
ES
___________________
___________________
___________________
___________________
___________________
Figure 7.1: The Different Players in the Air Transportation Industry
___________________
___________________ Government Regulations
___________________ 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.
UP 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.
Airport Agreements
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.
Customer Requirements
)
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-
(c
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.
Alliances
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 Notes
ES
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 worldwide alliance. ___________________
___________________
Suppliers
___________________
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
___________________
UP
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.
Unions
For flight professionals and the general public alike, one of the
most recognized parts of the airline industry is the strong union
presence among its professionals. Major international and national
airlines have been unionized for decades in order to protect flight
)
professionals from excessive pay and benefit cuts meant to secure

the bottom line. However, unions have been considered a mixed
blessing by the media, the public, and airline executives. Striking
flight attendants, pilots, and flight technicians sometimes hold up
(c
flights, drawing ire from customers. As well, airline executives by

and large feel that unions ask too much from airlines when many
companies are struggling to stay afloat financially. There are pros
and cons to the union process for professionals, though it still
benefits them to this day.
It is important to start with the negatives of unionization in the

Notes
ES
airline industry before speaking of its virtues. The decline of labor
___________________ unions in the United States and North American countries has
___________________ made the airline union appear like it is fighting a losing battle
___________________
with public opinion. As well, the benefits of comradery amongst
union members have been weakened by increasing competition for
___________________
jobs in the airline industry. While the union advocates hard for
___________________ workers and businesses have obliged in the past, many airline
___________________ executives would rather concede optional health care plans and
other benefits than give up the big paydays that unions often push
___________________
for. Finally, the aforementioned problem of strikes among airline
___________________ unions can often make flight professionals look selfish and
___________________ unsympathetic.
___________________ However, the public should realize that unions have helped keep
UP flights in the air for years by averting greater labor strife. Indeed,
the airline unions are one of the last places in the American labor
landscape where successful negotiations are still a common
occurrence. Airline professional unions offer flight crews, pilots,
and attendants an opportunity to develop relationships with
colleagues in other companies while working toward competitive
salaries. As well, companies and the public should look at how the
union's bargaining power not only benefits flight professionals but
the overall business.
Unions are able to negotiate group health benefits for their
members, which helps the company save on providing more
expensive health options. The union-business relationship is not
one sided and while unions push for higher wages, the compromise
wages that are established in negotiations help keep experienced
professionals in the industry. The unionization of airline workers
benefits everyone involved but flight professionals need to be
)
aware of these different pros and cons to gain a fuller picture.
Competitors
Finally, in the majority of market, there is tough competition
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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 proceeds in a leader-
follower pattern, where one airline takes an action and another
competing airline tries to find the best way to react to this action.
Interacting Layers of Decisions

Notes
ES
Like many other businesses, airlines management faces three
levels of interacting decisions. These levels, as shown in Figure 7.2, ___________________
include strategic, planning, and operations decisions. ___________________
___________________
___________________
___________________
___________________
Figure 7.2: Decision Levels of Airline Management ___________________
___________________
Strategic decisions typically require a long lead time before
implementation and require a considerable monetary investment. ___________________
They are also expected to have a significant impact on the form of ___________________
UP
the airline in the long term. Examples of strategic decisions
include growth and expansion, fleet sizing (aircraft orders), hub
locations, merging with other airlines, alliance participation, and
location of maintenance facilities.
Planning decisions are within a few months horizon, and can be
defined as the process of efficiently using airline’s available
resources to maximize its revenue. The resources available to an
airline include the facilities and the personnel that operate the
business, including, for example, aircraft in different fleets, pilots
with different qualifications, flight attendants, maintenance
facilities, mechanics, gates, customer service agents, and ramp
agents. The planning decisions include forecasting the demand
between every origin-destination (OD), flight schedule
development, assignment of flights to the different aircraft fleet (if
the airline has more than one fleet type), aircraft routing across
the different airports with its maintenance consideration, planning
)
the line of flight for pilots and cabincrew, crew accommodations,

flight-gate assignment, and catering.
Other planning decisions include the number of staff required to
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operate flights at different airports including customer service,

ramp agents, baggage handlers, and so on. They also include
decisions regarding fare levels in each OD market, fare
restrictions, and seat inventory control for each flight. It should be
mentioned here that these planning decisions are very dependent
on each other, which makes the planning process complex.
The operations decisions for the airlines are those decisions that
Notes need to be verified or updated on an hourly or maximally on a daily
ES
___________________ basis. They include, for example, the response to unanticipated
incidents such as adverse weather conditions, flights delays and
___________________
cancellations, aircraft breakdown, and absence of crew or staff due
___________________
to illness. Operations decisions also include watching revenues,
___________________ bookings, and anticipated demand levels in the different markets,
___________________ matching prices with competitors, and managing seat inventory on
each flight on a daily basis. Strategic decisions are expected to
___________________
impact on planning decisions, which, in turn, affect the operations
___________________ decisions.
___________________ In addition, there is a reverse feedback from the operations phase
___________________ to the planning phase, which also, in turn, may provide feedback to
the strategic decisions phase. For example, the observation of a
___________________
UP frequent delay of a certain flight waiting for its inbound aircraft
might alert schedule planning to alter the schedule of this flight to
give enough connection time for its inbound aircraft. Also, strong
demand forecasting in markets might call for a change in the
strategic plan regarding expansion and increase of fleet size. As
explained in the next section, this book covers in detail the tactics
currently practiced by airline management for the planning and
operations phase. Strategic decisions reconsidered to be beyond the
scope of this book.
Surrounding Events
The air transportation industry is characterized by the effects of
rapid and significant impacts from surrounding events and
economic and social changes. The negative impact on air
transportation of factors such as wars, civil unrest, terrorist
actions, increasing fuel prices, and epidemics has been clearly
observed in several areas across the world. These events
)
necessitate that airline management respond quickly and

efficiently to study the impact of these events and take actions to
alleviate their impact. To survive in business, in many situations,
airlines maybe forced to cut schedules, reduce fares, lay off
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employees, and cut salaries and benefits.
Many Groups to Contribute

Another challenge of airline operations is the interaction process
among several groups of workers who work together to operate the
flights. The product that an airline generates is a passenger seat or
a space for cargo. This passenger seator cargo space is typically a
part of a flight that connects between two airports. The number of

flights that an airline operates depends on the size of the airline. Notes
ES
For large air carriers, the number of flights reaches a few hundred ___________________
flights a day.
___________________
Operating each flight requires significant cooperation among
___________________
several groups of workers who all share the same objective of
making the flight ready for departure on time. There are about 12 ___________________
different groups who work on each flight before its departure. ___________________
These groups include pilots (cockpit crew), flight attendants (cabin
___________________
crew), maintenance crew, ramp agents, baggage-handling crew,
cargo agents, fueling agents, customer service agents, gate agents, ___________________
catering agents, aircraft cleaning agents, and operations agents or ___________________

dispatchers. While the personnel in these groups differ in their ___________________
qualifications, nature of work, workloads, and salary, they’re all
___________________
UP
equally important for the departure of the flight.
It is important for airline management to adequately set the work
plan for each group, facilitate their work, and alleviate any
possible conflict between them. A pilot is a certified person who
flies the aircraft of a certain aircraft fleet. Typically, each type of
aircraft requires a certain number of pilots with certain specified
qualifications. Flight attendants are airline staff employed
primarily for the safety of passengers onboard. Their secondary
function is the care and comfort of the passengers. The
maintenance crew (maintenance) is responsible for servicing and
repairing the aircraft to make sure that it is operational. Typically,
maintenance performs several pre-specified mandatory service
checks on the aircraft before departure, as specified by the
manufacturers.
Maintenance also performs several scheduled service checks on
each aircraft in operation. Ramp agents help guide the aircraft to
)
taxi in, park, and taxi out at the gate. Baggage handlers and cargo
agents transport, load, and unload baggage and other cargo to and
from the aircraft. Fueling agents provide fuel to the aircraft before
departure or at intermediate stops in the flight.
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Customer service agents assist passengers with check-in, seat

assignments, seat upgrades, and itinerary changes. Gate agents
ensure that are only authorized persons and passengers have
access to the aircraft. Catering agents provide meals and beverages
to be consumed on the flight. Aircraft cleaning agents clean the
aircraft and the lavatories. The operations’ agent or dispatcher
coordinates the flight plan, weight, fuel requirements, and any

Notes weather related or operations delays that are issued to the flight.
ES
Activity
___________________
Write an article for a leading Check Your Progress
newspaper on the planning
___________________
and operations of airlines. Fill in the blanks:
___________________
1. The airline management must conform to the
___________________ regulations of the airline’s ……………… country.
___________________ 2. ………………….. agents help guide the aircraft to taxi
___________________ in, park, and taxi out at the gate.
___________________ 3. The product that an airline generates is a passenger

seat or a space for ………………..
___________________
4. …………………… decisions typically require a long lead
___________________
time before implementation.
___________________
UP Airline Planning and Operations
Planning starts by recording the anticipated demand and supply
(available airline resources). Next, a set of interrelated planning
processes is considered, including schedule planning, time
banking, fleet assignment, aircraft routing, crew scheduling,
airport facility planning, airport staff scheduling, pricing and seat
inventory control, and sales and marketing initiatives. The
planning processes are typically completed by a month to a few
months before the implementation of the schedule, and they are
repeated on a frequent basis as long as the airline is in business.
The operations phase o the airline is concerned with implementing
the planned airline schedule, while taking into consideration
recovery for any unanticipated incidents such as adverse weather
conditions, aircraft breakdown, crew absence, and so on. The
operations phase is where decisions are made to recover the airline
schedule from flight delay and cancellations, to compensate for
)
missing or delayed aircraft and crew, and to reaccommodate

stranded passengers. The operations phase also monitors seat
bookings in the different markets and updates seat inventory
control and pricing decisions.
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Network Structure
Airlines are typically classified as scheduled airlines or charter
airlines. Scheduled airlines have a predefined flight schedule that
is published through designated channels. In this schedule, the
airline specifies the markets it flies to and the departure time and
capacity of each flight in the schedule. Charter airlines, on the
other hand, do not have a predefined schedule and typically

operate on a demand basis. Notes
ES
Typically each scheduled airline has a predefined network ___________________
structure. Selecting a network structure is considered one of the ___________________
major strategic decisions of the airline. Most common network
___________________
structures include (1) hub-and-spoke, (2) point-to-point, or
(3) a combination of both. The hub-and-spoke network structure is ___________________
one in which the airline considers one or more stations in the ___________________
network to be its hub. Accordingly, any flight that is operated by
___________________
this airline either starts or terminates at one of those hubs. The
___________________
hub station is characterized by having numerous departures and
arrivals everyday for the airline. The spoke station has only a few ___________________
departures and arrivals each day. ___________________
This hub-and-spoke network structure gives considerable network ___________________
UP
coverage, enabling passengers to travel between any two cities
served by the airline by physically connecting through the hub(s).
Therefore, any flight in this network serves both local travellers
between the origin and the destination of the flight and connecting
passengers to and from other destinations.
For an airline adopting a hub-and-spoke network structure, to
allow for smooth and convenient passengers connection at the hub,
the arrivals and departures at the hub are adjusted in what is
known as time banks. A time bank consists of a set of flight arrivals
followed by a set of departures. Therefore, the time bank allows for
several connection possibilities during a short period of time.
In the point-to-point network structure, as the name implies,
airlines operate direct flights between cities. Therefore, the focus of
these airlines is to serve local traffic between these two cities, and
less attention is given to the connecting traffic beyond their
immediate destinations. Because the point-to-point airlines do not
)
depend on any connecting traffic to fill their flights, they have to

select markets that have enough local demand, typically between
large- and medium-size city pairs. The point-to-point airlines can
also adjust arrivals and departures at one or more of their stations
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to allow for a few possibilities of profitably connecting itineraries

for the passengers.
Demand Forecasting and Modelling

Demand forecasting is the process of estimating the expected
number of travellers on each flight in the schedule, given the flight
schedules of all competitors in the different travel markets.
The demand forecasting and modelling process has to predict the

Notes
ES
passenger counts on each flight in the schedule and also estimate
___________________ the possible changes in demand due to changes in schedule,
___________________ pricing, competition, and so on. The demand forecasting process
___________________
also estimates the airline share in each city-pair (OD market).
___________________ Fleet Assignment

___________________ The fleet assignment process is necessary for airlines that have
___________________
more than one type of aircraft. It is the process of assigning the
different flights in the schedule to the different fleet types. The
___________________
process matches the characteristics of the aircraft and the flight to
___________________ minimize the total cost of the flight to the airline. For example, the
___________________ aircraft travel range must be consistent with the distance between
the flight origin and destination. Also, in terms of the economics of
___________________
UP fuel consumption, each aircraft type has an optimal range of travel
distance in which it produces the best fuel consumption
performance. Furthermore, the seat capacity of the aircraft should
be consistent with the expected passenger count for the flight.
Aircraft Routing
Aircraft routing, as the name implies, means determining a route
for each aircraft. The route of an aircraft consists of a sequence of
flights and maintenance activities that extend over a few days (5–7
days). The flights are selected to ensure there is enough time
between them to complete an aircraft turn or a maintenance
activity. An aircraft turn is the time difference between the arrival
time of a flight and the departure time of the next flight. An
aircraft turn time should be long enough for deplaning passengers
of the inbound flight from the aircraft, unloading cargo and
baggage, cleaning the aircraft, boarding passengers of the
outbound flight, loading cargo and baggage, fueling, catering,
)
exchanging crew, and so on. At the same time, the aircraft turn
should not take long; long aircraft turns cause the aircraft to
remain idle or unused over long periods of time. Longer idle time
on the ground is expected to significantly dilute the revenue of the
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airline, as the throughput of its fleet declines.
Crew Planning
It is important for the crew (pilots and flight attendants) to know
their travelling schedule ahead of time, so that they can plan their
other life activities accordingly. The crew’s work plan is typically
extended over a period of one month. During the month, the crew
member is classified either as a line crew or a reserve crew. A line Notes
ES
crew gets a sequence of predefined trippairs over the month. A ___________________
trippair represents a sequence of flights (segments), the first of
___________________
which originates from the home city (domicile) of the crew and the
last flight of which ends at the domicile. Efficient scheduling of the ___________________
airline crew is expected to make considerable savings in airline ___________________

costs.
___________________
Airport Facility and Staff Planning ___________________
During the planning phase, the scheduler must consider the ___________________
different facilities at the different airports, including gates and ___________________
baggage-handling facilities. The facilities at the airports should be
___________________
planned efficiently to accommodate the planned flight schedule
___________________
UP
economically. The processes of facility planning are more crucial at
the airline hub, where the airline operates many flights, and the
usability of each resource is critical. The scheduling of airport
facilities should take into consideration schedule disruptions that
typically result from adverse weather conditions. Airport staff
includes customer service agents, gate agents, baggage handlers,
and ground agents. Typically, this staff works on shifts of about
eight to ten hours every day. It is important for the airline to
position the adequate number of staff at the appropriate times to
operate the planned schedule economically and efficiently. The
airport staff should also be adequate enough to manage any
unplanned schedule disruptions at the airport due to adverse
weather conditions or any other unforeseen factors.
Revenue Management
Airlines apply advanced revenue management (RM) techniques to
maximize the revenue of their flights in different markets. RM is
)
defined as selling the right seat to the right customer at the right
price and at the right time. The idea behind RM is that travellers
have different characteristics and primarily have different
requirements for their travel. Basically, travellers can be classified
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as business travellers and leisure travellers. Business travellers

are travelling for a work-related trip or a business meeting. This
group of travellers is typically less sensitive to the price of the
ticket, because, in most cases, they are reimbursed for the cost of
their travel by their employers. Business travellers have rigid
travel plans that are typically constrained by predefined dates and
times that usually span weekdays. They also tend to spend shorter
Notes periods of time at their destinations. They do not book their tickets
ES
___________________ far in advance and prefer flexible tickets that can be changed or
canceled to match any possible changes in their travel plans.
___________________
Leisure travellers, as the name implies, travel for recreational
___________________
purposes or to visit family or friends. These travellers are sensitive
___________________ to ticket prices. They also have flexible travel plans and tend to
___________________ spend longer periods of time, including weekends, at their
destinations.
___________________
___________________ Sales and Distribution

___________________ Airlines expend considerable effort on sales and distribution
___________________
initiatives that improve their market share and enhance
profitability. These initiatives include, for example, relations with
___________________
UP travel agents, global distribution systems, online ticket
distribution channels, travellers’ mileage plans, sales agreements
with major businesses and promotions, and alliances and code
sharing. Each of these initiatives needs proper evaluation in order
to understand its impact on the airline profitability.
Irregular Operations Management

It is almost rare that an airline schedule is implemented as
planned. Airline schedules are usually subject to disruptions due to
adverse weather conditions, aircraft breakdowns, crew delays, and
security breaches. When the airline schedule is disrupted, it is
important for the airline to alleviate the impact of this disruption
and recover the schedule in order to return to normal operations.
When recovering the schedule, several objectives are considered by
the airline. For example, the airline must minimize the deviation
from the planned schedule by minimizing flight delays,
cancellations, and crew swapping.
)
In addition, it must not only adhere to the maintenance

requirements of different aircraft at the right time, but also follow
the regulations that govern the work rules of the crew on different
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flights. Furthermore, the airline must comply with air traffic

control regulations and programs that manage traffic in the
airspace and at airports. Last but not least, it must minimize the
total cost of recovery by avoiding expensive decisions such as flight
cancellations, calling additional crew, and passenger rebooking on
other airlines.
Check Your Progress

Notes
ES
Fill in the blanks:
___________________
1. Planning starts by …………………. the anticipated
demand and supply. ___________________
2. …………………. travellers have rigid travel plans. ___________________
3. Efficient scheduling of the airline crew is expected to ___________________

make considerable …………………. in airline costs. ___________________
4. The route of an aircraft consists of a …………………. of ___________________
flights and maintenance activities that extend over a
___________________
few days.
___________________
Summary ___________________
___________________
UP
The airline services are categorized as intercontinental,
continental, regional, or domestic, and may be operate as
scheduled services or charters. In terms of the size, airlines differ
from those with a single airplane carrying mail or cargo, through
full-service international airlines operating many hundreds of
airplanes. Several strategies have been developed and used for
improved plan and manage airlines. The decisions of airline
management are extremely affected by these other players.
Planning decisions are within a few months horizon, and can be
defined as the process of efficiently using airline’s available
resources to maximize its revenue.
The hub-and-spoke network structure is one in which the airline
considers one or more stations in the network to be its hub.
Accordingly, any flight that is operated by this airline either starts
or terminates at one of those hubs. The point-to-point airlines can
also adjust arrivals and departures at one or more of their stations
to allow for a few possibilities of profitably connecting itineraries
)
for the passengers.
Lesson End Activity

(c
Write a term paper on the airport facility and staff planning.
Keywords
Lower Airfares: As a consequence of technical improvements,
growing demands and competition, airfares have been reduced
considerably, making air transportation affordable to the general

Notes public. This in turn triggered additional passengers and airfreight
ES
___________________ demands.
___________________ Time Bank: A time bank consists of a set of flight arrivals
___________________
followed by a set of departures.
___________________
Leisure Travel: Travel undertaken for pleasure, as opposed to
business travel. It is often used to indicate a trip of seven days or
___________________
longer, regardless of its purpose.
___________________
Business Travel: Business travel is the practice of people
___________________ traveling for purposes related to their work.
___________________ Crew: A crew is a body or a class of people who work at a common
___________________ activity, generally in a structured or hierarchical organization.
___________________
UP Questions for Discussion
1. What is meant by airlines management?
2. What is the impact of other competitors in the industry on
airlines?
3. Describe the network structure of airlines.
4. What do you mean by aircraft routing?
5. Explain the concept of revenue management in airlines.
6. How is planning done in airlines?
Further Readings
Books
)

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Web Readings
http://www.ashgate.com/pdf/samplepages/modeling_applications_in
_the_airline_industry_ch1.pdf
http://www.mckinseyquarterly.com/The_hidden_value_in_airline_o
perations_1348
UNIT 8: Cargo Transport
Notes
ES
Activity
___________________
Prepare a chart on air cargo
Cargo Transport with text and images.
___________________
___________________
Objectives
___________________
topics: ___________________
 Air Cargo ___________________

 Cargo Handling Operations ___________________
 Documentation and Control
___________________
 Apron Cargo Handling
___________________
Introduction ___________________
UP
In this unit you will learn about another key aspect of the airline
business, that is, air cargo, and how it is transported. You will also
find out about the role of the freight forwarder, which is becoming
increasingly important with the growth of the air cargo market.
Air transport is a vital component of many international logistics
networks, essential to managing and controlling the flow of goods,
energy, information and other resources like products, services,
and people, from the source of production to the marketplace.
It is difficult or nearly impossible to accomplish any international
trading, global export/import processes, international repositioning
of raw materials/products and manufacturing without a
professional logistical support. It involves the integration of
information, transportation, inventory, warehousing, material
handling, and packaging. The operating responsibility of logistics
is the geographical repositioning of raw materials, work in process,
)
and finished inventories where required at the lowest cost possible.
Air Cargo
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More than 40 million tons of air cargo (or air freight) is moved on a
yearly basis. Almost anything can be shipped by air, including
letters, packages, cars, horses, and construction equipment.
Air cargo can be transported in a variety of ways, including within
passenger airline space. It is a major user of free “belly space”, that
is, the portion of the aircraft that is not being occupied for
passengers or their luggage. Just about every passenger flight

Notes carries some freight along with the passengers and their baggage.
ES
Activity
___________________
Prepare a presentation on Commercial airlines can make from 5 to 10 percent of their
cargo handling operations. revenue from hauling freight.
___________________
___________________ When a package is shipped on a passenger flight, it is usually

consolidated with other freight and packed into special containers
___________________
that fit in the storage area under the passenger compartment. One
___________________ of the world’s largest passenger planes, the Boeing 747-400 can
___________________ hold 5,330 cubic feet (150 m3) of cargo (as much cargo as can fit in
two semi-truck trailers).
___________________
___________________
Cargo can also be transported on dedicated aircraft using freighter
airlines. Shipping companies like Fed Ex and UPS own a variety of
___________________
types of cargo planes. One of the larger ones is the Boeing 747,
___________________ which can hold about 26,000 cubic feet (736 m3) of cargo (as much
UP as five semi-truck trailers can hold).
In order to haul really big cargo, a super transporter may be
required. This is a class of plane designed for moving only huge
articles, such as a helicopter, large machinery, or even a plane. It
is built with a huge cargo area located above the cockpit, allowing
freight to fill almost the full length of the plane. It can transport
about 47 tons of cargo. One of the world’s biggest transport planes
is the Antonov AN-225. Its cargo capacity is over 250 tons,
allowing it to haul three or four military tanks.
Check Your Progress

Fill in the blanks:
1. Air cargo can be transported in a variety of ways,
including within ……………….. airline space.
2. Cargo can also be transported on dedicated aircraft
)
using ……………….. airlines.
Cargo Handling Operations

(c
Cargo handling operations at airports involve the preparation of

cargo shipments, the loading and unloading of the aircraft, and the
transfer of cargo between the storage facilities and land transport.
For outbound cargo, the preparation includes consolidation of
cargo, building up of the air cargo pallets and containers,
inspection and documentation. For inbound cargo, the preparation
includes customs and other regulatory procedures, as well as
deconsolidation. For transshipment cargo, the operation is

generally limited to unloading, reconsolidating, and reloading the Notes
ES
cargo but can be as simple as a direct transfer between aircraft ___________________
(sometimes known as tail-to-tail transfer).
___________________
Although air cargo ideally remains in the airport for a relatively
___________________
short time, it is necessary to provide storage facilities. Bonded
facilities are required for imports and international transshipment ___________________
cargo. For perishable cargoes, it is necessary to provide cold rooms. ___________________

For outbound cargo, it is necessary to provide X-ray scanners to ___________________
inspect the cargo. Since most air cargo is low density, most of the
___________________
cargo is stored on racks, preferably in large open warehouses with
high ceilings (more than eight meters). ___________________
The storage areas must be equipped with loading docks on the ___________________
landside to allow for rapid movement of goods to and from trucks. ___________________
UP
Most airports also provide offices near the warehouses for the
airlines and forwarders to receive/deliver cargo and prepare
shipping documents, and for customs to clear import and export
cargo.
A major issue in the layout of airports is the extent to which cargo-
handling activities take place on the airport versus outside the
airport boundaries. The airlines receive and dispatch cargo on the
airport. Inspection is generally done on the airport including
scanning, which generally implies that the palettes are built up on
the airport. Beyond that, exporters, importers and forwarders
generally prefer to locate their activities outside the airport to
avoid space limitations and reduce operating costs. Where possible,
they also prefer to build their own pallets and ULD containers
prior to delivery to airlines, especially where they have to maintain
a cool/cold chain for temperature-sensitive perishables.
However, this requires that pallets/containers be accepted “as is”
)
without having to be broken down for inspection and then rebuilt.

In order to do this, the airlines and security officials must certify
the forwarder’s warehouse as well as the forwarder or shipper.
(c
Alternatively, if there is sufficient cargo volume, more expensive

full pallet scanners can be introduced. Another concern is that
airport space is today similar to the concerns of the air pas-
becoming increasingly tight, especially for cargo senger industry.
Fuel costs, though having recarries are available for making better
use of existing facilities.
Also, carriers will have to bring their fleets into compliance with
Notes
ES
Federal Aviation Administration noise standards under new noise
___________________
legislation. Communities are continuing to exert pressures against
___________________ aircraft noise, resulting in increased attempts to reduce noise
___________________ impacts by imposing operating restrictions on carriers. Night
curfews are still not common in the United States, but if adopted
___________________
they could severely impact cargo operations.
___________________
Three basically different types of freight terminals can be
___________________ identified: low technology, medium technology, and high
___________________ technology.
___________________
Low Technology
___________________
These are often, but not necessarily, low-volume terminals. Where
___________________ manpower is both available and cheap, freight is moved by
UP manhandling over extensive layouts of roller beds and transfer
tables. Such terminals are also desirable when there are problems
with the supply of hard currency to purchase equipment and
spares and where there is a lack of skilled labour for equipment
maintenance.
Medium Technology
Containers are moved by mobile lifting and transfer equipment for
example, forklift trucks. The vast majority of existing medium- and
high-volume facilities still operate with this level of sophistication.
High Technology
Involving TVs and ETVs, these facilities use single or multiple
level storage of containers, which are moved within the terminal
mainly by the railed transfer vehicles. ETV operations produce
high throughputs per square meter, with minimum container
)
damage and minimum labour requirements. There is, however, a

very high level of capitalization required.
Check Your Progress

(c
Fill in the blanks:

1. Air cargo ideally remains in the airport for a relatively
………………….. time.
2. Three basically different types of …………………..
terminals can be identified: low technology, medium
technology, and high technology.
Documentation and Control

Notes
ES
Activity
Since cargo cannot move without documentation, the rapid
___________________
movement of large volumes of cargo requires the rapid processing documentation and control of
of large amounts of documentation with a high level of accuracy air cargo.
___________________
and reliability. In addition, the documentation must be available to ___________________
a large number of persons who are separated in the system, both
___________________
spatially and temporally.
___________________
Space is reserved on a particular flight on a space-available basis.
___________________
Scheduled to arrive at cargo reception in time for the outgoing
flight, the freight is weighed and checked against an electronic ___________________
airway bill. The loading manifests are produced in conjunction ___________________
with the flight tally and individual consignment information.
___________________
The freight is sorted at reception into small, heavy, and special or
___________________
UP
out-of-gauge freight and may be temporarily stored in the terminal
bin racks. Cargo is moved into the flight assembly area in
accordance with the flight tally. Pallets and containers are packed
after the freight has passed through the live lanes in the flight
assembly area; data on pallet contents are computerized for
tracking until final delivery.
In 2005 the IATA started vigorously to promote e-freight, with the
aim of very significant reduction of the amount of documentation
required. In the middle part of the decade, each cargo shipment
could involve up to 30 paper documents; by 2010 these were
reduced to 10, the remainder being converted to standardized
electronic messages. The move to fully electronic data was
generally supported by customs authorities and resulted in faster,
cheaper, and more reliable air freight transport.
Check Your Progress

)
Fill in the blanks:

1. Cargo is moved into the flight assembly area in
accordance with the flight ………………
(c
2. ……………… and containers are packed after the

freight has passed through the live lanes.
Apron Cargo Handling

Unlike the passenger apron, where the passenger payload can
move itself, the cargo apron must be highly mechanized to carry
out the transfer of the freight from the terminal to the aircraft.
Notes Since short aircraft turnaround time is essential to profitability,
ES
Activity
Write an article on apron
___________________ apron cargo handling systems should be capable of rapid unloading
cargo handling.
and loading while achieving high payload densities. The type of
___________________
equipment used depends on the exact nature of the cargo. Care is
___________________
to be exercised in using aircraft manufacturers’ estimates of
___________________ minimum unloading and loading times for aircraft. In many cases,
___________________ these times can be achieved under ideal conditions only, which are
not likely to occur on a working cargo apron.
___________________
Palletized units comprise the most common cargo form. After the
___________________
pallets have been assembled and sent to the preflight holding area
___________________
in the terminal, they must be transferred across the apron. This is
___________________ frequently achieved by transferring the pallets to roller mat
___________________ dollies, which are pulled to the aircraft by a ramp tractor. The
UP pallets are rolled onto a cargo lift that raises them to the level of
the aircraft floor, onto which they are rolled. Movement along the
aircraft can be by simple manhandling or, in the case of large
aircraft, by powered floor roller mats. At some airports, ramp
transporters are used instead of tractor and dolly systems. This is
usually when the distance from the cargo terminal to the aircraft is
considerable and a higher transfer speed is required.
Some freight terminals have nose-dock loading systems. These
allow nose-loading aircraft to load directly from the ETV system
through the open nose of the aircraft, which is parked immediately
adjacent to the system.
Loose cargo can be transferred across the apron by dollies and
loaded by either cargo lift or small cargo conveyors, which handle
light loads. Out-of-gauge and nonpalletized cargo can be handled
in this way, but this can become uneconomic in large volumes due
to poor aircraft turnaround time at the cargo apron. Freight rates
)
for unpalletized and uncontainerized cargo are frequently very

high. The choice of apron handling devices depends chiefly on the
air vehicle to be loaded. Combination wide-bodied aircraft and
narrow-bodied cargo aircraft can take igloos, pallets, and low
(c
containers. They are normally side loaded using cargo lifts and
transporters or dollies. Wide-bodied all-cargo craft can take large
8×8-ft containers in modular lengths up to 40 ft. The largest can be
loaded by nose docks; others are side door loaded. Narrow-bodied
combination aircraft, which have low cargo capacity, must be loose
loaded in the belly holds.
Check Your Progress

Notes
ES
Fill in the blanks:
___________________
1. Palletized units comprise the most ….……………….
cargo form. ___________________
2. ….………………. rates for un-palletized and un- ___________________
containerized cargo are frequently very high. ___________________
___________________
Summary ___________________
The planning of a high-volume special-purpose air cargo terminals ___________________
is a complex procedure. Because such facilities are often owned and
___________________
operated by individual airlines, the design of these terminals may
well be carried out internally within the airline organization. The ___________________
most accurate design procedure is likely to be derived from a ___________________

UP
simulation based on knowledge of the mix and flow characteristics
of the cargo, the predicted aircraft fleet mix, handling practice, and
surface transport characteristics.
Palletized units comprise the most common cargo form. After the
pallets have been assembled and sent to the preflight holding area
in the terminal, they must be transferred across the apron. Out-of-
gauge and nonpalletized cargo can be handled in this way, but this
can become uneconomic in large volumes due to poor aircraft
turnaround time at the cargo apron.
Lesson End Activity

Discuss within your group different documentations required for
air cargo.
Keywords
)
Cargo: Cargo (or freight) is goods or produce transported,

generally for commercial gain, by ship or aircraft, although the
term is now extended to intermodal train, van or truck.
(c
Pallet: A pallet is a flat transport structure that supports goods in

a stable fashion while being lifted by a forklift, pallet jack, front
loader or other jacking device.
Documentation: A set of documents provided on paper, or online,
or on digital or analog media, such as audio tape or CDs.
Inbound Cargo: Inbound cargo is freight that is shipped in from

Notes
ES
somewhere else.
___________________
Outbound Cargo: Outbound cargo is freight that is being shipped
___________________
off to somewhere else.
___________________
___________________ Questions for Discussion

___________________
1. What is air cargo?
___________________
2. Discuss the cargo handling operations.
___________________
3. Explain the documentation and control of air cargo.
___________________
4. What is meant by apron cargo handling?
___________________
5. Discuss palletized and non-palletized cargo.
___________________
UP Further Readings
Books
Web Readings
http://www.mobility.siemens.com/mobility/global/en/logistics/airpor
t-logistics/cargo-handling-systems/pages/cargo-handling-
systems.aspx
http://en.wikipedia.org/wiki/Cargo_airline
)
(c
UNIT 9: Airlines Terminology
Notes
ES
Activity
___________________
Prepare a collage on the
Airlines Terminology terms used in airlines.
___________________
___________________
Objectives
___________________
topics: ___________________
 Terms used in Airlines ___________________

 Cabin Crew ___________________
 Airline Announcements
___________________
___________________
Introduction
___________________
UP
Have you ever found yourself sitting in an uncomfortable chair in
the airport, or buckling up in the airplane itself, only to realize
that everyone is speaking in some sort of code and you didn’t get
the memo? Airport jargon can be extremely confusing, but if you
learn a few of the basic meanings beforehand, then the airport
shouldn’t be too much of a foreign experience.
In this unit, you will study important airport terminologies. You
will also study about the cabin crew. The main responsibility of the
cabin crew is to look after the well being, comfort and safety of
passengers travelling in the aircraft. You will also study about the
airport announcements.
Terms used in Airlines

Important air travel terminologies are as follows:
 Airport Codes: Airport codes are designated by IATA to
)
depict the name of an airline (UA is United Airlines, QF is

Qantas, etc.).
 Actual Flying Time: Actual flying time can be described as
(c
the actual time that an aircraft is in the air which does not
include time on the ground (For instance, waiting in line for
take-off).
 Base Fair: It is the cost of a ticket prior to adding any taxes.
 ADT: ADT stands for the abbreviated form for Approved
departure time.
 Air Rage: Air rage is term used to depict a situation where

Notes
ES
passengers become violent towards crew members or
___________________
passengers.
___________________
 APEX: APEX stands for Advance Purchase Excursion Fare. It
___________________ generally refers to international fares that have been
___________________ discounted.
___________________  Joint Fare: Joint fare is termed used for an agreement among
certain airlines to charge particular fares when a passenger
___________________
uses more than one airline.
___________________
 Air Traffic Control: A game played by airline pilots and air
___________________
traffic controllers. The game has no rules, and neither side
___________________ knows how it is played, but the goal is to prevent flights from
___________________ arriving in time for passengers to make connecting flights.
UP  Aerial: That part of the aircraft most frequently broken off
during the walk-around preflight inspection that pilots do to
see if anything is broken off.
 Airframe: When the FAA inspector knows that you have only
a student license and sends his kids to bum a ride with you in
the plane.
 Air Mass: Impromptu religious service held on board an
aircraft immediately following an announcement by the pilot
that he is lost, having an engine problem, or running out of
fuel.
 ACI (Airport Council International): An international
association of more than 450 airports.
 AEA: the Association of European Airlines. An association of
the largest European scheduled airlines.
)
 EVRA: ICAO code for RIGA International Airport.

 Catchment Area: The number of people living within an area
in which people have approximately two hours of transport by
bus, car or train to an airport. The size of the catchment area
(c
is of great importance to an airline’s choice of routes and thus

of airports. There are 2.5 million people in the RIX catchment
area.
 Luggage: Personal belongings presented for registration
during the flight check-in. During the flight, luggage is kept in
special storage area of the airplane and is taken out after the
flight. The rules and fares for luggage transportation are set
by the airline companies. Notes
ES
 Luggage Sticker: A sticker attached to the passenger luggage ___________________
registered for transportation in the airplane. ___________________
 Civil Aviation: Aircrafts, airfields and other objects serving ___________________

the purpose of transportation by air and specific aviation
___________________
functions, as well as sport aviation, aviation popularization
___________________
and other public and private needs.
___________________
 Civil Aviation Agency: A state institution responsible for the
coordination and supervision of the National civil aviation ___________________
safety program. The purpose of the Civil Aviation Agency is to ___________________

execute the civil aviation and flight safety policies. Civil
___________________
Aviation Agency is supervised by the Ministry of
___________________

UP
Communications Aviation department.
Civil Aviation Safety: A set of actions involving rules, people
and material resources aiming to protect the civil aviation
against the illegal interference in its operation.
 Civil Aviation Safety Program: A set of events necessary for
protecting the civil aviation against the illegal interference in
its operation.
 Civil Aviation Aircraft Staff: Individuals entrusted by the
related aviation institutions to operate the aircraft during the
flight.
 Civil Aviation Aircraft: aircraft registered in the civil
aviation aircraft registry, which is not used for military,
custom or state border control institutions.
 Dispatcher Commands: Instructions from the air traffic
control service dispatcher to the pilot in relation to a specific
)
action.
 Security: Measures taken on entry to the airside area to
prevent illegal acts against civil aviation.
(c
 Security Check: A manual or technical check to detect

weapons, objects or substances which must it be assumed can
be used in an illegal act against civil aviation.
 Safety: Measures taken in the airport area to prevent acts
that may cause danger or inconvenience to traffic at the
airport.
 Aircraft captain: A pilot responsible for the aircraft

Notes
ES
operation and safety during the flight.
___________________
 Aircraft Type: Aircrafts with the construction of a same type,
___________________
including the modifications, except the modifications with the
___________________ different air dynamic data.
___________________  Aircraft: A flying machine holding in the air using the
___________________ interaction with air, if it does not involve the interaction of air
with land or water surfaces.
___________________
___________________  Aircraft Parking Lot: A place on the apron for parking the
aircraft.
___________________
 Air transportation: Aircraft flight carrying passengers,
___________________
luggage, cargo and mail on the basis of payments or rental
___________________ agreement.
UP  Air traffic: Movement of aircrafts in the air and on the
manoeuvring area of the airfield.
 Jet bridge: The bridge connecting an aircraft to the gate so
that passengers can embark and disembark without getting
their feet wet.
 Air route: Controlled air space or part of it is the form of a
corridor secured for use of air transportation.
 IATA: International Air Transport Association. It is a global
association of more than 200 airlines.
 ICA: International Civil Aviation Organisation. It is a UN
body for international civil aviation.
 Departure sector: An area for passenger entrance in the
aircraft, usually marked with special numbers or letters.
 Airport Office: RIX official office, from which flights are
)
handled. Representatives from the press, etc. must report to

the Airport Office for photography and access permits
 Republic of Latvia civil aviation aircraft: Civil aviation
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aircraft registered in the Civil Aviation Registry of the

Republic of Latvia.
 Airspace of the Republic of Latvia: Air space above the
land of the Republic of Latvia and its internal and Baltic Sea
territorial waters.
 Air Field Restricted: It is that part of the airport building

Notes
ES
and airfield with restricted access.
___________________
 Airfield Manoeuvring Territory: A part of the air field for
aircraft landing, take-off and manoeuvring needs. ___________________
___________________
 Air Field Traffic: All traffic on the territory of manoeuvring
field as well as flights above the territory around the air field. ___________________
 Air field traffic area: Air space of a certain size above the ___________________
territory around the air field to ensure the safety of the air ___________________
field traffic.
___________________
 Air field: A certain land or water territory as well as building,
___________________
objects and equipment fully or partially intended for
___________________
organization of aircraft departures and arrivals (including
airplane landing, take-off, manoeuvring, parking, passenger ___________________
UP
entrance, luggage, cargo and mail loading and unloading,
technical maintenance and fuelling).
 Flight restricted area: Restricted air space above the land
and internal and Baltic Sea territorial waters for aircraft
flights according to the special rules.
 Airport ID card: ID card held by airport staff.
 Illegal interference in the civil aviation operations:
Actions endangering or possessing a possibility of danger to
aviation safety (unauthorized entry of a person at the airport
restricted areas or aircrafts, possession of dangerous and
explosive substances or weapons without permission, use of
weapons against the aircraft personnel or passengers, aircraft
kidnapping etc.).
 OneWorld: An alliance of the following airlines: American
Airlines, British Airways, Cathay Pacific, Finnair, Iberia,
)
Japan Airlines, Lan Chile, Malev, Qantas and Royal

Jordanian.
 Passenger transportation: Transportation of passengers
(c
between terminal and aircraft.

 Passenger area: An area beyond the safety and passport
control. Allowed only for passengers and assigned airport
personnel.
 Carrier: Aircraft operator conducting air transportation on
the basis of assigned rights.
Check Your Progress

Notes
ES
Activity Fill in the blanks:
___________________
Write an article on the
responsibilities of cabin crew. 1. ………………………… is that part of the airport
___________________
building and airfield with restricted access.
___________________
2. ………………………… is that part of the aircraft most
___________________ frequently broken off during the walk-around preflight
___________________ inspection that pilots do to see if anything is broken off.
___________________
Cabin Crew
___________________
Cabin Crew (also known as stewards/stewardesses, air hosts/
___________________
hostesses, cabin attendants) are members of an air crew employed
___________________ by airlines primarily to ensure the safety and comfort of
___________________ passengers aboard commercial flights, on select business
UP jet aircraft, and on some military aircraft.
The primary role of a flight attendant or cabin crew is to ensure
passenger safety. In addition to this, flight attendants are often
tasked with customer service duties such as serving meals and
drinks, as a secondary responsibility.
The number of flight attendants required on flights are mandated
by international safety regulations. For planes with up to 19
passenger seats, no flight attendant is needed. For larger planes,
one flight attendant per 50 passenger seats is needed.
Responsibilities of Cabin Crew

The main responsibility of the cabin crew is to look after the
wellbeing, comfort and safety of passengers travelling in the
aircraft. At least one hour before each flight, attendants are told by
the captain on expected weather conditions, special passenger
problems, and other matters. Following are the duties of cabin crew:
)
 They need to be sure whether the emergency equipment is in

order.
 They need to check whether aircraft and toilets are clean and
(c
seat pocket information is in place.

 They need to be sure of availability of adequate meals and
beverage for the number of passengers.
 They make sure that first aid kits and other emergency
equipment are aboard and in working order. As passengers
come aboard, attendants greet them, check their tickets, and
help them in storing carry-on luggage.
 Having welcomed passengers on board and made known them

to their seats, they check that doors are closed and seat belts Notes
ES
Activity
fastened. Prepare a slideshow of
___________________
generally used scripts for
 Prior to take-off they demonstrate the use of emergency various announcements in
___________________
equipment and point out exit doors and notify the pilot when airlines.
___________________
they are ready for take-off.
 On the flight they serve meals and drinks. Meals are generally ___________________
pre-packed and stored in hot cases. ___________________
 On few flights cabin crew sell duty-free goods such as alcohol, ___________________
perfume and tobacco. This work is generally done in pairs in
___________________
specific sections of the cabin, the work being allocated by the
___________________
chief stewardess or steward.
 They make announcements on behalf of the pilot and before ___________________
landing check that safety belts are fastened. ___________________


UP
During their work they may have to deal with emergencies
like ill health of passengers and must be able to administer
first aid.
 In case of flight emergencies they are trained to instantly
apply the safety drills and assist passengers from the aircraft
before leaving themselves.
 When the flight terminates they check stocks of duty-free
goods and complete account sheets showing balance of cash
and stock so that new stock can be ordered. They then prepare
reports on medications given to passengers, lost and found
articles, and cabin equipment conditions. Some flight
attendants straighten up the plane's cabin.
Check Your Progress

Fill in the blanks:
1. When the flight terminates cabin crew check
)
….…………….. of duty-free goods.

2. Having welcomed passengers on board and made
known them to their seats, they check that ………….
(c
are closed and seat ….…………….. fastened.
Airline Announcements
The important scripts for announcements are discussed below:
Pre-boarding Announcement
Good afternoon passengers. This is the pre-boarding
announcement for flight 89B to Rome. We are now inviting those
passengers with small children, and any passengers requiring

Notes special assistance, to begin boarding at this time. Please have your
ES
___________________ boarding pass and identification ready. Regular boarding will
begin in approximately ten minutes time. Thank you.
___________________
___________________ Final Boarding Announcement

___________________ This is the final boarding call for passengers Erin and Fred Collins
booked on flight 372A to Kansas City. Please proceed to gate 3
___________________
immediately. The final checks are being completed and the captain
___________________ will order for the doors of the aircraft to close in approximately five
___________________ minutes time. I repeat. This is the final boarding call for Erin and
Fred Collins. Thank you.
___________________
___________________ Pre-flight Announcement

___________________ Ladies and gentlemen, welcome onboard Flight 4B7 with service
UP from Hong Kong to San Francisco. We are currently third in line
for take-off and are expected to be in the air in approximately
seven minutes time. We ask that you please fasten your seatbelts
at this time and secure all baggage underneath your seat or in the
overhead compartments. We also ask that your seats and table
trays are in the upright position for take-off. Please turn off all
personal electronic devices, including laptops and cell phones.
Smoking is prohibited for the duration of the flight. Thank you for
choosing Mountain Airlines. Enjoy your flight.
Captain's Announcement
Good afternoon passengers. This is your captain speaking. First I'd
like to welcome everyone on Rightwing Flight 86A. We are
currently cruising at an altitude of 33,000 feet at an airspeed of
400 miles per hour. The time is 1:25 pm. The weather looks good
and with the tailwind on our side we are expecting to land in
London approximately fifteen minutes ahead of schedule. The
)
weather in London is clear and sunny, with a high of 25 degrees for

this afternoon. If the weather cooperates we should get a great
view of the city as we descend. The cabin crew will be coming
around in about twenty minutes’ time to offer you a light snack
(c
and beverage, and the inflight movie will begin shortly after that.
I'll talk to you again before we reach our destination. Until then,
sit back, relax and enjoy the rest of the flight.
Safety Briefing
Ladies and gentlemen, on behalf of the crew I ask that you please
direct your attention to the monitors above as we review the
emergency procedures. There are six emergency exits on this

aircraft. Take a minute to locate the exit closest to you. Note that Notes
ES
the nearest exit may be behind you. Count the number of rows to ___________________
this exit. Should the cabin experience sudden pressure loss, stay
___________________
calm and listen for instructions from the cabin crew. Oxygen
masks will drop down from above your seat. Place the mask over ___________________
your mouth and nose, like this. Pull the strap to tighten it. If you ___________________
are travelling with children, make sure that your own mask is on
___________________
first before helping your children.
___________________
In the unlikely event of an emergency landing and evacuation,
___________________
leave your carry-on items behind. Life rafts are located below your
seats and emergency lighting will lead you to your closest exit and ___________________
slide. We ask that you make sure that all carry-on luggage is ___________________
stowed away safely during the flight. While we wait for take off,
___________________
UP
please take a moment to review the safety data card in the seat
pocket in front of you.
Check Your Progress

Fill in the blanks:
1. There are …………………. emergency exits on this
aircraft.
2. …………………. boarding will begin in approximately
ten minutes time.
Summary
In this unit, you have studied various important airport
terminologies. The main responsibility of the cabin crew is to look
after the wellbeing, comfort and safety of passengers travelling in
the aircraft. You have also got a brief idea about airport
)
announcements.
The primary role of a flight attendant or cabin crew is to ensure
passenger safety. In addition to this, flight attendants are often
(c
tasked with customer service duties such as serving meals and

drinks, as a secondary responsibility. They make announcements
on behalf of the pilot and before landing check that safety belts are
fastened.
Lesson End Activity

Prepare the announcement script if the flight is delayed.
Keywords
Notes
ES
Aircraft: A flying machine holding in the air using the interaction
___________________
with air, if it does not involve the interaction of air with land or
___________________ water surfaces.
___________________
Security: Measures taken on entry to the airside area to prevent
___________________ illegal acts against civil aviation.
___________________ Security Check: A manual or technical check to detect weapons,
___________________ objects or substances which must it be assumed can be used in an
illegal act against civil aviation.
___________________
___________________
Luggage Sticker: A sticker attached to the passenger luggage
registered for transportation in the airplane.
___________________
Air Rage: Air rage is term used to depict a situation where
___________________
UP passengers become violent towards crew members or passengers.

1. Explain any ten terms used in airlines.
2. What is meant by cabin crew?
3. Write a short note on responsibilities of cabin crew.
4. Give examples of airport announcements at various situations.
Further Readings
Books
Martinez, Mario & Hobbi,Bob, (2009), Building a Customer Service
)

(c
Web Readings
http://www.riga-airport.com/en/main/newsroom/aviation-terms
http://www.englishclub.com/english-for-work/airline-
announcements.htm
UNIT 5: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
___________________
Case Study: Shopper Anonymous at Airport Lynx
___________________
Airport Lynx specialises in first class airport transfer, from the
Cambridge area to all London Airports – for both business and ___________________
holiday travellers. It has around 20 vehicles and since its
___________________
formation in 1998, has constantly tries to improve its service,
being the first to offer online bookings and provide email ___________________
UP
confirmations. Airport Lynx prides itself on a high standard of
service but wanted to ensure that these standards including
safety, courtesy, timeliness, comfort, and cleanliness are being
met.
Opportunities Addressed by Shopper Anonymous
Steve Russell, Managing Director, was confident that his team
does a good job, but wanted to be sure they were doing a great job
and living up to the high standard expected – not just the drivers
but also the bookings team.
Steve wanted to find out how well his drivers treat the customer.
The drivers should always be on time (or a few minutes early) but
never late, but more than that, they should offer the high degree
of courtesy and attention promised by 5 Star standards of
business travel:
The luggage should be taken to the car, doors opened,
complimentary paper and bottle of water offered as well as Wi-Fi.
Once underway the customer should be kept warm enough, and
the driver must judge if the customer wants to talk, or be quiet
when appropriate.
)
The ride must be smooth and the driver makes sure that where
possible any traffic problems are avoided.
On arrival on a journey to the airport, drivers should get as near
to the airport entrance as possible, open the door for the customer
and get the luggage ready to go.
(c
On pick up from the airport, drivers should have a clear sign with
the customer’s name.
Drivers should wear the branded Lynx tie and of course be smart
and presentable.
The bookings team should be able to take a booking, whilst at the
same time watching out to help customers avoid booking errors;
double checking the details to ensure the booking ‘makes sense’
Contd….
before concluding the call – whilst always remembering travellers

Notes from different time zones may get confused.
ES
Solution implemented by Shopper Anonymous
___________________
14 Journeys were set up to evaluate the customer service
___________________ provided by 14 different drivers. Mystery shoppers travelled to
___________________
Stansted with one driver and were then picked up by another.
The journeys had to be aligned with real flights, since drivers
___________________ check flight schedules when dropping off and picking up. Mystery
Shoppers posed as business people being taken to and then
___________________ returning from Stansted.
___________________ Our shoppers had to find innovative ways to emerge from the
arrivals area – without of course officially ‘arriving’! This was an
___________________ interesting challenge, as they were required to appear as if they
had just arrived from a business trip – complete with packed bag
___________________
and laptop!
___________________ To evaluate booking personnel, a number of bookings were made.
___________________ The experience reports for the journeys were written to track the
UP entire customer service experience: right from arrival at the
customer’s home, or meeting at the airport, getting into the car,
the journey, the drop off at the airport, or home. To create the
experience, Shopper Anonymous used Lynx’s standard driver
operating procedure, mapping this to the reports to ensure all
aspects of the journey, to and from an airport were included.
On the whole the team performed exceedingly well, largely
meeting the desired customer standards. However Lynx want to
get 100% compliance by all drivers of all standards, so whilst in
general these were good experiences for the customer, in most
cases one or two things could have been better on each journey. So
whilst in general the performance was good, it wasn’t the 100%
Lynx strive for.
The journey reports enabled Steve Russell to have meaningful
staff reviews, pointing out where they did well (this was very
motivational), whilst being able to point out where improvements
were needed. He was also able to remind all drivers of the need
for diligence, highlighting the facts that even the most
experienced drivers can miss something.
Steve Russell MD said “We will continue this exercise and as a
result, be able to demonstrate to potential new customers that we
)
have real systems in place to monitor our customer service

performance. This was an extremely worthwhile exercise. In
addition it helped me understand exactly how each driver needs
to improve. We are also going to continue to use Shopper
(c
Anonymous on a monthly basis, to keep existing staff on their toes

and evaluate new drivers and staff”.
Questions:
2. Write down the case facts.
3. What do you infer from it?
Source: http://airportlynx.co.uk/blog/?p=15
UNIT 11: International Civil Aviation Organization (ICAO)
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-III
)
(c
Detailed Contents
Notes
ES
UNIT 11: INTERNATIONAL CIVIL AVIATION
___________________ UNIT 13: AIRPORT SERVICES’ USERS
ORGANIZATION (ICAO)
 Introduction
 ___________________
Introduction
 Users of Airport Services
 ___________________
About ICAO
 Airport Customer Service
 ___________________
Safety
 Passengers
 Security
___________________
 Environmental Protection
___________________ UNIT 14: AIRPORT SERVICE MARKETING
 Introduction
___________________
UNIT 12: AVIATION ORGANIZATIONS
 Decision Variable
 ___________________
Introduction
 Indian Scenario
 ___________________
IATA (International Air Transport Association)
 Marketing of Airport Services
 Airports Council International (ACI)
___________________


CANSO
UP
New ICAO/CANSO Agreement to Deliver Improved
 Other Marketing Challenges
UNIT 15: CASE STUDY

Air Navigation Safety
)
(c
Notes
ES
Activity
___________________
Write a short report on ICAO.
International Civil Aviation ___________________
Organization (ICAO) ___________________
___________________
Objectives ___________________
___________________
topics:
___________________
 About ICAO
 Safety ___________________
 Security ___________________
 Environmental Protection
___________________
Introduction
UP
National borders are meaningless to people flying high above the
clouds and yet nations are responsible for protecting the territories
and the people that live within their boundaries. Without
international agreements, flying above successive countries would
not be possible and international flights would not exist. A number
of international organizations have been created to encourage
cooperation among nations and establish world standards for the
aviation industry. It is important to understand the purpose of
these organizations and the role they play in the management of
the air transportation system.
About ICAO
)
(c
Figure 11.1: ICAO Logo

Constantly seeking to foster and support the sustainable growth of

Notes
ES
Activity air transport, the International Civil Aviation Organization serves
___________________
Prepare a presentation on as the global forum for its 191 Member States. Amongst its many
safety as the fundamental other functions supporting all aspects of international civil
___________________
objective of ICAO.
aviation, ICAO brings together States and key industry
___________________
organizations to determine areas of strategic priority, develops
___________________ policies and standards, coordinates global monitoring, analysis and
___________________ reporting initiatives, and delivers targeted assistance and capacity
___________________
building.
___________________ The International Civil Aviation Organization (ICAO) is a

specialized branch of the United Nations (U.N.). It is based in
___________________
Montreal, and has regional offices in Paris, Dakar, Cairo, Nairobi,
___________________ Bangkok, Mexico City and Lima. Currently its membership
___________________ consists of 190 nations.
UP The charter of the International Civil Aviation Organization was
drafted in Chicago in 1944 at what is commonly referred to as the
“Chicago Convention”, where agreement was reached over
fundamental legal and technical standards which would govern all
aspects of civil aviation at the international level. ICAO was
created in 1947 to develop these standards and oversee their
application. Contracting nations are legally bound to respect the
standards. The primary goal of ICAO is to ensure the safety of
anyone affected by aviation whether they are passengers,
employees, or simply people who live near aviation routes.
Check Your Progress

Fill in the blanks:
1. The primary goal of ICAO is to ensure the
……….……….. of anyone affected by aviation.
)
2. The International Civil Aviation Organization (ICAO)

is a specialized branch of the United ……….………..
Safety
(c
Aviation safety is at the core of ICAO’s fundamental objectives.

The organization is constantly striving, in close collaboration with
the entire air transport community, to further improve aviation’s
successful safety performance while maintaining a high level of
efficiency. This is achieved through:
1. The development of global strategies contained in the Global

Aviation Safety Plan and the Global Air Navigation Plan. Notes
ES
Activity
2. The development and maintenance of Standards, ___________________
security function of ICAO.
Recommended Practices and Procedures applicable to ___________________
international civil aviation activities which are contained in
___________________
16 Annexes and 4 PANS (Procedures for Air Navigation
Services). These standards are complemented by more than 50 ___________________
Manuals and Circulars which are providing guidance on their ___________________

implementation. ___________________
3. The monitoring of safety trends and indicators. ICAO audits ___________________
the implementation of its Standard, Recommended Practices
___________________
and Procedures through its Universal Safety Oversight Audit
Programme. It has also developed sophisticated tools to ___________________
collects and analyse a vast array of safety data which allows to ___________________
4.
UP
identify existing and emerging risks.
The implementation of targeted safety programmes to address
safety and infrastructure deficiencies.
5. An effective response to disruption of the aviation system
created by natural disasters, conflicts or other causes.
In all of its highly coordinated safety activities, ICAO strives to
implement practical and achievable measures to improve safety
and efficiency in all sectors of the air transportation system. This
approach ensures that aviation’s complimentary achievements of a
remarkably safe and efficient air transport network continue to
serve a fundamental role in supporting global social and economic
priorities.
Check Your Progress

Fill in the blanks:
)
1. Aviation ………….………… is at the core of ICAO’s

fundamental objectives.
2. ICAO strives to implement ………….………… and
(c
………….………… measures to improve safety and

efficiency in all sectors of the air transportation system.
Security
With the collaboration of Member States, ICAO plays an essential
leadership role in the field of aviation security with the ultimate
goal of enhancing civil aviation security worldwide. To this end, its

Notes efforts are focused primarily on developing and coordinating an
ES
___________________ effective global policy and legal framework in response to the
evolving threat to civil aviation, conducting audits that identify
___________________
aviation security shortcomings, and assisting States in
___________________
implementing security Standards and resolving deficiencies.
___________________
When aviation security did arise as a serious issue in the late
___________________ 1960s, there was a need to adopt an international framework for
___________________ addressing acts of unlawful interference. ICAO assumed a
leadership role in developing aviation security policies and
___________________
measures at the international level, and today the enhancement of
___________________
global aviation security is a key objective of the Organization.
___________________
Provisions for international aviation security were first
___________________ disseminated as Annex 17 to the Chicago Convention in 1974, and
UP since then have been improved and updated 12 times. The 12th
amendment to the Annex became applicable on 1 July 2011.
With respect to security training, ICAO develops course material
on a range of topics for use by civil aviation administrations and a
network of regional aviation security training centres. This
material covers such subjects as airline and cargo security and, of
course, crisis management. Training workshops and seminars are
conducted on a regular basis.
All of ICAO’s initiatives in the field of aviation security rely, both
globally and regionally, on cooperation amongst States and all
other stakeholders. The overarching goal is to enhance global
security by implementing uniform security measures around the
world, a goal that cannot be achieved without an unswerving
commitment by all concerned.
Check Your Progress

)
Fill in the blanks:

1. Its efforts are focused primarily on …………………. and
……………………. an effective global policy and legal
(c
framework in response to the evolving threat to civil

aviation.
2. The overarching goal is to enhance global security by
implementing ……..……………… security measures
around the world.
Environmental Protection
Notes
ES
Activity
Improving the environmental performance of aviation is a
Write an article on the goals of
___________________
challenge ICAO takes very seriously. In fulfilling its ICAO for environmental
responsibilities, the Organization developed a range of standards, protection.
___________________
policies and guidance material for the application of integrated ___________________
measures to address aircraft noise and engine emissions
___________________
embracing technological improvements, operating procedures,
proper organization of air traffic, appropriate airport and land-use ___________________
planning, and the use of market-based options. ___________________
All of this has contributed to aircraft operations that today can be ___________________
70% more efficient than in the 1970s. ___________________
In 2004, ICAO adopted three major environmental goals, to: ___________________
 Limit or reduce the number of people affected by significant ___________________

aircraft noise;
UP
Limit or reduce the impact of aviation emissions on local air
quality; and
 Limit or reduce the impact of aviation greenhouse gas
emissions on the global climate.
The ICAO Council also adopted strategic objectives, with high
priority given to environmental protection, while the new business
plan asserts the organization's status as the leading international
organization pursuing unified and coordinated measures to reduce
civil aviation's impact on the environment.
ICAO's activities in the environment field are primarily focused on
those problems that benefit most from a common co-ordinated
approach, on a worldwide basis, namely aircraft noise and the
impact of aircraft engine emissions.
Most of this work is undertaken through the ICAO Council's
)
Committee on Aviation Environmental Protection (CAEP), which

consists of Members and Observers from States,
intergovernmental and non-governmental organizations
(c
representing aviation industry and environmental interests.

A Consolidated Statement of continuing policies and practices
related to environmental protection is revised and updated by the
Council every three years for adoption by the ICAO Assembly. The
present version, Assembly Resolutions A37-18and A37-19, was
adopted in October 2010.
ICAO maintains close relations with other UN policy-making

Notes
ES
bodies that have expressed an interest in civil aviation, notably
___________________
with the Conference of the Parties to the United Nations
___________________ Framework Convention on Climate Change, to which it provides
___________________ regular statements on ICAO's emission-related activities.
___________________ Check Your Progress

___________________ Fill in the blanks:
___________________
1. Improving the environmental performance of aviation
___________________ is a …………………. ICAO takes very seriously.
___________________ 2. A Consolidated Statement of continuing policies and
___________________ practices related to environmental protection is revised
and updated by the Council every ………………… years.
___________________
UP Summary
A number of international organizations have been created to
encourage cooperation among nations and establish world
standards for the aviation industry. The International Civil
Aviation Organization (ICAO) is a specialized branch of the United
Nations (U.N.). It is based in Montreal, and has regional offices in
Paris, Dakar, Cairo, Nairobi, Bangkok, Mexico City and Lima.
Currently its membership consists of 190 nations.
Aviation safety is at the core of ICAO’s fundamental objectives.
ICAO's activities in the environment field are primarily focused on
those problems that benefit most from a common co-ordinated
approach, on a worldwide basis, namely aircraft noise and the
impact of aircraft engine emissions.
Lesson End Activity

)
Discuss within your group environmental protection as objective of

ICAO.
(c
Keywords
Safety: Safety can be defined to be the control of recognized
hazards to achieve an acceptable level of risk.
Security: Security as a condition is the degree of resistance to, or
protection from, harm.
Environment: The surroundings of a physical system that may

Notes
ES
interact with the system by exchanging mass, energy, or other
properties. ___________________
Policy: A policy is a principle or rule to guide decisions and ___________________
achieve rational outcomes. ___________________
Aviation: Aviation is the design, development, production, ___________________

operation, and use of aircraft, especially heavier than air aircraft. ___________________
___________________
___________________
1. Briefly describe ICAO. ___________________
2. Discuss the environmental goals of ICAO. ___________________
3. What is the safety function of ICAO? ___________________
4.
UP
Discuss the security objective of ICAO.
Further Readings
Books
Web Readings
http://www.icao.int/environmental-protection/Pages/default.aspx
http://en.wikipedia.org/wiki/Civil_Air_Navigation_Services_Organi
)
sation
(c
(c
) UP
ES
UNIT 12: Aviation Organizations
Notes
ES
Activity
Visit___________________
Aviation Organizations IATA office and with the
help of their representative
___________________
prepare a report on the
functions of IATA for your
study___________________
group.
Objectives
___________________
topics: ___________________
 IATA (International Air Transport Association) ___________________

 Airports Council International (ACI) ___________________
 CANSO
___________________
 New ICAO/CANSO Agreement to Deliver Improved Air Navigation
Safety ___________________
___________________
Introduction
UP
In this unit you will be informed about important aviation
organizations namely IATA, ACI and CANSO. You will also gain
knowledge on the new ICAO/CANSO agreement to deliver
improved air navigation safety.
IATA (International Air Transport Association)
Figure 12.1: Logo of IATA
The International Air Transport Association (IATA) is an

international industry trade group of airlines headquartered in
)
Montreal, Quebec, Canada, where the International Civil Aviation

Organization is also headquartered. The executive offices are at
the Geneva Airport in Switzerland.
(c
IATA's mission is to represent, lead, and serve the airline industry.

IATA represents some 240 airlines comprising 84% of scheduled
international air traffic. The Director General and Chief Executive
Officer is Tony Tyler. Currently, IATA is present in over 150
countries covered through 101 offices around the globe.
The International Air Transport Association (IATA) brings

Notes
ES
Activity together approximately all airlines from around the world. Flights
___________________
Prepare a PPT presentation by these airlines comprise more than 98 percent of all
on duties of ACI.
___________________ international scheduled air traffic. The mission of IATA is to
___________________ “represent, lead serve the airline industry”. IATA has its
headquarters in Montreal, an executive office in Geneva and
___________________
regional offices in Miami and Singapore.
___________________
IATA ensures 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’ airplanes can operate safely, securely, efficiently and
economic under clearly defined rules.
___________________
IATA provides a useful means for governments to work with
___________________
UP airlines and draw on their experience and expertise. Working
standards for 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.
Check Your Progress

Fill in the blanks:
1. Working …………………… for the aviation industry are
developed within IATA.
2. IATA ensures that people, …………………… and
…………………… can move around the vast global
airline network as easily as if they were on a single
airline in a single country.
Airports Council International (ACI)

)
(c
Figure 12.2: ACI Logo
The Airports Council International (ACI) is the international

association of the world airports. It is a non-profit organization, the
prime purpose of which is to advance interests of airports and to
promote professional excellence in airport managemen1

operations. Notes
ES
Activity
Airports Council International (ACI) is a non profit global trade ___________________
Prepare a write-up on
organization of the world's airports, consisting of 580 members CANSO.
___________________
operating 1,650 airports in 179 countries and territories. ACI
___________________
primarily represents member airport's interests and to promote
professional standard in airport management and operations. It ___________________
aims to provide the public with a safe, secure, efficient and ___________________
environmentally responsible air transport system. ___________________
It is governed by the ACI Governing Board. ACI World ___________________
Headquarters was based in Geneva, Switzerland but subsequently
___________________
moved to Montreal, Canada, after the 2010 General Assembly. It
incorporates the International Civil Aviation Organization (ICAO) ___________________
Bureau and is a member of the Air Transport Action Group ___________________

(ATAG).
UP
ACI membership is divided into six regions, Africa, Asia, Europe,
Latin America Caribbean, North America and Pacific, and assisted
by six regional offices. The head quarter of the organization is in
Geneva, Switzerland.
Check Your Progress

Fill in the blanks:
1. The Airports Council International (ACI) is the
international association of the …………….. airports.
2. Prime purpose of ………………. is to advance interests
of airports and to promote professional excellence in
airport managemen1 operations.
CANSO
)
(c
Figure 12.3: CANSO Logo

Many governments have transferred the responsibility for

Notes
ES
Activity providing air navigation services from civil service departments to
___________________
Write a newspaper article on organizations with varying degree of independence from the
the new agreement of ICAO government. The degree of independence from direct government
___________________
and CANSO.
control varies from a State enterprise with a Board of Directors
___________________
reporting to the government, to a partly or completely privatized
___________________ entity with shareholders.
___________________
The new organizations have greater freedom to manage their
___________________ businesses in a way that will result in efficient and safe air
___________________ navigation services. These organizations have established the Civil
Air Navigation Services Organization (CANSO) as their trade
___________________
association, however any organization provided to furnish civil air
___________________ navigation services may join CANSO. CANSO headquarters are in
___________________ Hoofddorp (Netherlands) with a regional office in Brussels.
UP CANSO is the global voice of the companies that provide air traffic
control, and represents the interests of Air Navigation Service
Providers worldwide. CANSO Members are responsible for
supporting 85% of world air traffic, and through our Workgroups,
Members share information and develop new policies, with the
ultimate aim of improving navigation in the air and on the ground.
CANSO also represents its members’ views in major regulatory
and industry forums, including at ICAO, where we have official
Observer status.
Check Your Progress

Fill in the blanks:
1. Many governments have transferred the responsibility
for providing air …………………… services from civil
service departments to organizations with varying
degree of independence from the government.
)
2. CANSO is the global …………………….. of the

companies that provide air traffic control.
(c
New ICAO/CANSO Agreement to Deliver Improved

Air Navigation Safety
The new ICAO/CANSO MOC creates a framework for enhanced air
navigation safety dialogue, cooperation and information exchange
between the two global air transport bodies. It will also make it
simpler for them to pursue joint training programmes and deliver
coordinated expert support in the interest of enhancing the

adoption of Safety Management Systems (SMS) risk mitigation Notes
ES
approaches. ___________________
The establishment of this framework is an important step in ___________________
helping CANSO and ICAO achieve the highest levels of aviation
___________________
safety worldwide. This priority knows no borders and these types
of collaborative data sharing and risk mitigation efforts are ___________________
essential to helping States and industry proactively identify and ___________________

address safety threats before they lead to a serious incident or ___________________
accident.
___________________
The ICAO/CANSO MOC confirms the increasing level of
___________________
cooperation demonstrated by the two aviation organizations over
recent years, notably in the area of runway safety. It also supports ___________________
development of a new aviation safety intelligence model – a shared ___________________

UP
safety data bank that will coordinate the collection, analysis and
sharing of safety information amongst air transport’s key global
players.
“CANSO and ICAO are committed to improving aviation’s already
noteworthy safety performance levels by working together and
sharing more of our data and expertise,” stressed Poole. “This new
MOC reflects CANSO’s recognition that ICAO will be a key
partner moving forward. It is also a very concrete example of
CANSO’s partnership approach in action and our determination to
deliver real value through the improvement and transformation of
global ATM performance.”
The signing of the new MOC took place at a special ceremony
ahead of the World Air Traffic Management Congress in Madrid,
Spain. It is the latest in a series of new partnerships developed by
ICAO to improve aviation safety and highlights the UN body’s role
as a global focal point for cooperative air transport progress.
)
Organizations who have formalized similar relationships with

ICAO in recent years include the U.S. Federal Aviation
Administration (FAA), the European Commission (EC), European
(c
Aviation Safety Agency (EASA), European Organisation for the

Safety of Air Navigation (EUROCONTROL), the International Air
Transport Association (IATA), Airports Council International (ACI)
and the Flight Safety Foundation (FSF).
Notes Check Your Progress
ES
___________________ 1. The establishment of this framework is an important

step in helping …………….. and …………….. achieve
___________________
the highest levels of aviation safety worldwide.
___________________
2. CANSO and ICAO are committed to improving
___________________
aviation’s already noteworthy …………….. performance
___________________ levels.
___________________
___________________ Summary
___________________ IATA provides a useful means for governments to work with
___________________ airlines and draw on their experience and expertise. Working
UP standards for 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. The Airports Council
International (ACI) is the international association of the world
airports. It is a non-profit organization, the prime purpose of which
is to advance interests of airports and to promote professional
excellence in airport managemen1 operations.
CANSO is the global voice of the companies that provide air traffic
Providers worldwide. CANSO Members are responsible for
supporting 85% of world air traffic, and through our Workgroups,
Members share information and develop new policies, with the
ultimate aim of improving navigation in the air and on the ground.
Lesson End Activity

Prepare an exhaustive article on various roles of AITA, ACI and
)
CANSO.
Keywords
(c
Civil Air Navigation Services Organization (CANSO):

CANSO is the global voice of the companies that provide air traffic
Providers worldwide.
Airports Council International (ACI): The Airports Council

Notes
ES
International (ACI) is the international association of the world
airports. ___________________
The International Air Transport Association (IATA): IATA is ___________________
an international industry trade group of airlines headquartered in ___________________

Montreal, Quebec, Canada, where the International Civil Aviation
___________________
Organization is also headquartered.
___________________
Safety Management Systems (SMS): SMS is a term used to refer
___________________
to a comprehensive business management system designed to
manage safety elements in the workplace. ___________________
___________________
Questions for Discussion ___________________
1. Briefly describe IATA. ___________________
2.
UP
Discuss the functions performed by ACI.
3. Write a brief note on CANSO.
4. What is the new agreement of ICAO/CANSO?
Further Readings
Books
Culture: The Seven Service Elements of Customer Success. IAP
)
Web Readings
http://www.canso.org/about
http://en.wikipedia.org/wiki/International_Civil_Aviation_Organiza
(c
tion
(c
) UP
ES
UNIT 13: Airport Services’ Users
Notes
ES
___________________
Airport Services’ Users ___________________
___________________
Objectives
___________________
topics: ___________________
 Users of Airport Services ___________________

 Airport Customer Service ___________________
 Passengers
___________________
___________________
Introduction
___________________
UP
Airport is a self-contained town in a city. It has its own
administration and specific rules for its user and the visitors.
Airport is basically meant for the use by passenger, visitors and
the consignor/consignees and hence they are the main users.
Airport authorities have to provide various facilities for them and
for which various agencies are working:
 Police or other security forces for the safety and security of the
installations and other vital equipments,
 Airlines and their offices for providing aviation facilities too
the passenger,
 Handling agents to provide assistance to airlines for handling
of the flight,
 Oil companies to provide aviation fuel to the aircraft,
 Engineering companies to provide maintenance of the aircraft,
)
 Cleaning and maintenance service of the terminal building for

the upkeep,
 Restaurant for the meal and snack requirement of the
(c
passengers/airlines,
 Lounges and other waiting areas for the passenger,
 Custom offices for the international passenger and cargo,
 Immigration or the passport control offices both in the arrival
and departure areas of the international terminals, and
 Provision to provide emergency service like fire fighting.
Users of Airport Services

Notes
ES
Activity
After going through the above, now we can analyze the following
___________________
Prepare a chart of users of
airport services. are airport users:
___________________
1. Airlines and their employees
___________________
2. Restaurant and Lounges
___________________
3. Agents
___________________
4. Banks
___________________
5. Custom
___________________
6. Immigration or the passport control officer
___________________
7. Oil Companies
___________________
8. Security agencies
___________________
UP 9. Airport authorities
10. Metrological Office
11. ATC officer
12. Medical unit
13. Tourism Offices
14. Taxi service providers
15. Hotel representative
16. Terminal for rail or buses
17. Left luggage Areas
18. Law enforcing agencies
For the airport, it is important that all its customers are given
proper attention and their needs are met before it is asked. The
airport authorities are responsible to provide the service to its
user.
)
Airlines & their Employees

The main service providers are the airlines and their employees.
(c
These business entities own the aircraft and carry the passenger
on their flight and also bring them from various parts of the world.
They have their own set up at the airport. Their set up is basically
of two types:
 Counter
 Back up and Main office at the airport
Counter means check in counter, facilitation counter, ticketing

Notes
ES
counter, excess baggage charge counter etc. are those counter
which are visible to the passenger and visitor. ___________________
___________________
Back up and Main Office
___________________
Back up office is the office of the airlines which is a control room
___________________
also for the handling of the flight. The main job of this back up
office to keep up-to-date information of the flight (delay ETA etc.) ___________________
and keep the passenger informed. It is also required to send the ___________________
complete flight data to the other en route and destination station ___________________
once the flight has taken off. It is also responsible for the
___________________
accounting of all the document i.e. flight coupon, EBT and also
account for the cash collection of the sale proceed of the ticket ___________________
issued at the airport whereas the main office of the airlines is not ___________________
UP
in the departure or arrival area but a little away from the
operational area. In this office, they plan and execute the policies
of the airlines and do all other administrative work.
The employees of the airlines are quite efficient and courteous not
only to the passenger but also to the other users as they represent
the passenger and passenger look toward the airlines for any type
of assistance during their short stay at the airport for taking the
flight.
Restaurant and Lounges

The airlines do require the services of restaurant and lounges for
various reasons. Lounges are needed to look after the comfort of
the higher class passenger i.e. executive or first class and also for
CIP/VIPs.
Interface with their management is very important on day to day

basis as the passenger give their good or bad feeling to the airlines
)
that in turn get in touch with them to ensure their upkeep and to
upgrade the facilities from time to time.
In any public place people need the services of a restaurant to have

(c
some meal or light refreshment and hence the restaurant should

be at the airport and should be accessible to the visitors also.
Agents
Notes
ES
At airport a lot of agencies work like ground handling, mini
___________________ reservation office agents etc. These entire agents are for the
___________________ service to the passenger directly or indirectly. For example, a
handling agent provides the service for handling the flight
___________________
departure to an airline but in indirect manner he is dealing with
___________________
the passenger, because it is the passenger who has to travel.
___________________
Banks
___________________
One of the important requirements is the existence of a bank at the
___________________
airport where the passenger can exchange their currency to the
___________________ local currency or deport the local currency and obtain the foreign
___________________ currency as the local currency of the country does not work in the
___________________
other countries. The bank official has to very clear and courteous to
UP the passenger.
Customs
Custom authorities have a major role to play in the international
traffic. They have to ensure that people don’t take the banned item
like article of historically important art and craft which are not
replaceable. Since most of the counties are the members CITES
(Convention on International Trade in Endangered Species of wild
Fauna and Flora), the custom authorities are also responsible to
see that live or dead animal of endangered species is neither
transported out nor brought in to the country.
Immigration or the Passport Control Offices

This is an important department of the state government which
regulates the arrival of foreign national and also keeps a track of
nationals going abroad. The passenger comes in direct contact with
this department both at the time of going abroad and also on
)
arrival. Once upon a time this department had gathered a

notorious status and absolutely unfriendly which has now changed
its image to more user friendly and a helping natured department.
(c
Oil Companies
Aviation uses aircraft which need power to fly. This power is
derived by using aviation fuel by engines. These oil companies are
required to be providing this facility to the aircraft .They come in
contact with the airlines and in an indirect manner with the
passenger.
These companies must have the storage facilities at the airport

Notes
ES
and also the equipment to refuel the aircraft. The process of
refueling has to be completed within a short period of not more ___________________
than 15 minutes in normal aircraft and approximately in 30 ___________________
minutes in bigger aircraft.
___________________
The oil companies have developed expertise for this and are doing
___________________
a good job at all the airports.
___________________
Security Agencies ___________________

At the airport security is of a great concern. And almost all entry ___________________
points are manned by the security personal. These are either
___________________
drawn from the security forces of the state or employed by the
airlines themselves. ___________________
___________________
UP
Frisking of passenger, x-raying of the baggage and allowing
passenger to the aircraft through gate controlled are all properly
controlled and manned.
On the apron side, the aircraft and all other equipment are
guarded once the aircraft arrive and is parked. These activities are
of essential nature as any small adventure by any miscreant can
cause heavy damages and a bad reputation of the country.
Airport Authorities
All airports are controlled either by an independent government
body or by private entities. Airports are built, maintained and
operated by these bodies. They employ huge number of employees
depending upon the size of the airport.
All airlines depend upon airport authorities for all sorts of facilities
which are required, may be on the airside or landside and off-
course in the terminal building itself.
)
It is the responsibility of airport authority officer to maintain the

building in a best method and always upgrade the facilities as per
the latest development in the aviation industry.
(c
In return of the facilities, airport authorities do charge some

amount not only from the airlines as rent for the building, parking
area at the apron and landing and navigation charge, passenger
also pay an amount for the using the services at the airport by way
of departure tax etc which are collected by the airlines from the
passengers and deposited with the respective authorities.
Notes Metrological Office
ES
___________________ Another important component of the aviation industry is the
___________________
Metrological office as we are aware that the flying depends upon
the clear weather. If the weather is not conducive to this safety of
___________________
the aircraft, the flight will not be operated at that time and route.
___________________
The reason being in case of emergency the aircraft has to come
___________________ back the pilot is in a position to sight the runway and also on the
___________________ type of aircraft, its weight and speed. And the on board
navigational equipment and also the matching navigational
___________________
equipment installed at the runway.
___________________
Each airline trains its pilot to land in the minimum visibility. In
___________________
such situation there is a need to have a weather forecast from an
___________________ independent body which also constituted by a state to prove its
UP authority and this department is known as ‘metrological
department’ and in short it is known as “MET” and its reports are
known as “MET” reports which are mandatory for the any flight,
whether it is a commercial or non-commercial or military flying.
As per the regulatory authorities the pilot must obtain the
metrological report from the met office before departure for its
destination and also for the enroute weather and should also give a
‘Debriefing” on arrival at the destination more so if the deviation
was observed during the flying than that of the met forecast given
from the origin of the station.
Earlier the pilot or the co-pilot used to go personally to the Met
office and obtain briefing and discuss the weather conditions but
now due to more accurate forecasting an officer from the operation
department of the airlines obtains the met report from met office
and then handover to the pilot when they report for the duties.
This saves a good amount of time of the pilot which is used for the
)
flying duties.
ATC Office
(c
The full form of ATC is Air Traffic Control. This is generally a

vertical, tall and round building very near to the runway so as to
give it the clear picture of the runway. All aircraft have to take
persimmons from ATC to land or to take off. This is a very
sophisticated service which is performed by experienced controller.
The job is more difficult at the major airport where the flying is
quite high.
At the major airports, there is more than one runway and hence
Notes
ES
the job of coordinating the arrival and departure of the aircraft
requires sophistication. This has become somewhat easier with the ___________________
use of IT where the computer tracks the movement and takes ___________________
corrective measure in case of any emergency.
___________________
Medical Unit ___________________
As per ICAO all airport should have a qualified medical officer ___________________
round the clock. There should also be a clinic to take care of the ___________________
medial emergencies of the passengers. Thus the medical officer and
___________________
medical units are provided by the airport authorities.
___________________
Generally the location is accessible to all passengers from inside
___________________
the terminal and also from the landside.
___________________
UP
The airport clinics are equipped with the basic medical facilities
and in case of emergency or serious nature sickness, passengers
are immediately taken to the nearby hospital in the ambulances
which area available at the airports.
Tourism Offices
International Airports are the entry points for tourist. Each
country has to provide a place inside the arrival and departure hall
of the terminal building for providing the useful information about
the Tourist places of the countries.
These offices are quite equipped with the literature of the various
tourists interesting place. They are the good guide to the incoming
tourists who depends upon them for all types of solution in case of
need of the information.
Taxi Service Providers

)
At each terminals, both arrival and departure, particular in arrival

a counter is provided to the taxi operators to provide taxies to the
arriving passenger.
(c
Generally they are of two types: Government controlled or

privately owned. They are very essential for the development of
tourism and also for the benefits of the arrival passengers.
Hotel Representative
Notes
ES
At all airports a counter or sometimes more than one counter is
___________________ available to the important hotel that provides assistance to the
___________________ passenger who intends to stay with them. They provide transfer to
and from hotel, generally courtesy service and do not charge.
___________________
___________________ Terminal for Rail or Buses

___________________ There are some other users of the airport like Rail or Bus terminus
___________________ which are very essential for the passenger/visitors to reach airport
or vice versa. This is also planned at the time of development of the
___________________
airport. Cities like Paris. London etc. are well connected by the rail
___________________ to and from city and also inter terminal buses.
___________________
Left Luggage Areas
___________________
UP This is an important facility for the passenger. Earlier it used to e
inside the terminal building But now due to security problem, a
building has been constructed which quite away from the main
terminal building but within the airport premises.
Law Enforcing Agencies

State law enforcing agencies are also having their offices at the
airport which is also an essential element for the airport user
group.
Having understood the customer it is now easy to understand the
type of customer service required for each concessionaries. But the
most important customer for the airport is the passenger and the
visitor. If there is no passenger, there is no airlines and so forth.
The activities of the customer services moves around the customer.
Now the airport are vying each other to provide better facilities to
its passenger and also to the airlines. The passenger is desirous of
)
reaching his/her destination without any hassle and desire to

spend minimum time at the airport.
Check Your Progress

(c
Fill in the blanks:

1. The main job of the back up office is to keep up-to-date
………..…………….. of the flight.
2. International airports are the entry points for
………..……………..

Notes
ES
Lets us now understand the meaning of airport customer service. Activity
___________________
Write an article on customer
Customer service is a concept in which the service providers service at airports.
___________________
ensure the faculties are provided to its customer to the entire
satisfaction. In case there is a complaint, they have a grievance ___________________
officer to address the complaint and also take further action to ___________________
ensure its improvement.
___________________
Having known the customer service and the user of the airport, it ___________________
is very easy for the student to understand the need for the airport
___________________
customer service.
___________________
To provide the customer service the airport must provide the
following facilities: ___________________
___________________
In Passenger Terminal

UP
Information counters properly manned,
 Sufficient telephone lines in case passenger wants to find the
flight information,
 Display board for the arrival and departure of the flight,
 Proper signage,
 Trolleys for the passenger to carry luggage from curb side to
the terminal building and vice versa,
 Toilet facilities for ladies/gents and also for the physically
challenged person,
 Escalators and lift for going up and down,
 Facilities for the wheel chair passenger/stretcher passenger,
 Proper entry and exit gate with signage as per ICAO standard,
)
 Snack Bar/Restaurant.
In Cargo Terminal
 Place to park vehicle to load and unload cargo
(c
 Information counters
 Proper access to the air cargo carrier’s office
 Snack bar/Restaurant
 Ensure security of the goods once entered in the cargo area
ES
Activity
___________________
Write a report on passenger
Fill in the blanks:
as the main customer of
___________________
airport. 1. Customer service is a concept in which the service
___________________ providers ensure the facilities are provided to its
customer to the entire …………………….
___________________
2. Facilities for the wheel chair passenger/stretcher
___________________
passenger should be provided at ……………..
___________________
___________________
Passengers
___________________
The most important person at the airport is a “passenger” or a
___________________ ‘visitor”. All airlines and airport exists because of passenger. If the
___________________ passengers are not there, then no airlines will operate and no
UP requirement of the airport and the entire huge infrastructure. The
passenger is the main user of the facilities of the airport. The
airport design starts from the passenger and ends with the
passenger.
 The passenger require a place to sit before the security is
announced, and once inside the security area also need a place
to relax, have a coffee or watch a TV or listen to news.
 The present airports are designed in such a way that at every
stage the passenger does not feel lost and is always get what
are his basic needs.
 Passenger does not want to spend time which is unwarranted.
He wants to spend the minimum time waiting for the
departure of the flight.
Similarly on arrival, from a flight, he wants fast clearance from the
passport control, custom and to have quick baggage delivery. He
)
desires to have easy availability of taxies or other modes of

transport to take him from the airport to down town.
Similarly when a visitor comes, he reaches at the airport either to
(c
see off someone or to receive someone, he hopes to have correct

information about the departure or arrival of the flight, a place to
meet the passenger, proper logistics for transport, to/from
downtown.
The passenger and the visitor are two important entities for the
airport. The third important entity is the Cargo consignee or
consignor. They are equally important. They come to the airport
either to send their merchandize or receive their merchandize.

They also need proper arrangement to book their consignment duly Notes
ES
cleared through custom and other law enforcing agencies and want ___________________
to receive their goods immediately on their arrival so that they do
___________________
not suffer the ‘opportunity loss.’
___________________
Normally all airports have special cargo terminals where the
facilities of proper warehousing, custom clearance and delivery, re- ___________________
packing etc. is all available. This is necessary as all the goods ___________________
which arrive have to be cleared by the custom by opening and ___________________
inspecting and then repacking before delivery to the consignees.
___________________
All the three categories of passenger and consignees have to
___________________
interface the airlines personal, custom, immigration (except when
they are on domestic travel), and security personal, both on arrival ___________________
and departures. It is very important both on the part of passenger ___________________

UP
and also on the part of employees that they respect the law of the
land more so the enforcing authorities should be more friendly but
firm, while dealing with the people who are either not aware or
behave differently if they are regular offenders.
It is these three categories which need to be serviced properly by
the entire airport support departments working at the airport.
Work of the airport start from the passenger and ends with the
passengers.
Check Your Progress

Fill in the blanks:
1. The …………………….. is the main user of the facilities
of the airport.
2. When a …………………….. comes, he reaches at the
airport either to see off someone or to receive someone.
)
Summary
In these days the activities at the airport have multiplied. Airport
(c
in the world are competing each other in terms of facilities to the

airlines. Passengers and concessionaries attract more and more
airlines. The ultimate aim is to provide the maximum facilities
with minimum hassle to the ultimate users i.e. passengers. In turn
the airlines and the concessionaire are also in great completion to
provide the services from an airport which has more and more
facilities for its passenger and also where the charges are more
Notes reasonable.
ES
___________________
___________________ Lesson End Activity

___________________ Discuss within your group about airport authorities.
___________________
___________________ Keywords
___________________ Passenger: A passenger is a person who travels in a vehicle but
___________________ bears little or no responsibility for the tasks required for that
vehicle to arrive at its destination or otherwise operate the vehicle.
___________________
Agent: An Agent is one who acts for, or in the place of, another, by
___________________
authority from him; one entrusted with the business of another.
___________________
UP Customs: Customs is an authority or agency in a country
responsible for collecting and safeguarding customs duties and for
controlling the flow of goods including animals, transports,
personal effects and hazardous items in and out of a country.
Immigration: Immigration is the movement of people into a
country or region to which they are not native in order to settle
there.

1. Who are the users of airport services?
2. What do you understand by airport customer service?
3. What are the customer services provided by airports? Name
any ten services as per your knowledge.
4. Who are the two main users of airport services?
)
5. Discuss medical units at airports.
Further Readings
(c
Books
Martinez, Mario, Hobbi, Bob,(2009), Building a Customer Service

Notes
ES
___________________
Web Readings
___________________
http://www.airportdesk.com/services.html
___________________
http://www.canso.org/about ___________________
http://en.wikipedia.org/wiki/International_Civil_Aviation_Organiza ___________________
tion
___________________
___________________
___________________
___________________
___________________
) UP
(c
(c
) UP
ES
UNIT 14: Airport Service Marketing
Notes
ES
Activity
___________________
Airport Service Marketing Prepare a presentation on
decision variable.
___________________
___________________
Objectives
___________________
topics: ___________________
 Decision Variable ___________________

 Indian Scenario ___________________
 Marketing of Airport Services
___________________
 Other Marketing Challenges
___________________
Introduction ___________________
UP
Conventionally, it was believed that an airport travel agent (TA) is
not creating a need but only fulfilling an existing need. But it is
now a reality that a number of airport TAs not only created the
need to travel to destinations but give business to hotels, carriers
and lots of other parties. An airport TA is an important link
between the traveller and the rest. How some airport travel
agencies have grown and benefited from the marketing approach,
is being discussed in this unit.
The purpose of marketing is to create a customer, to persuade him
to purchase your product, inspite of the options open to him to
either buy from someone else or not to buy at all. It is a well
recognised axiom that the customer pays not for the product, but
for the satisfaction he desires. To begin with, only the customer
knows what would satisfy him. Or does he, really? It is, therefore,
important to know who the customer is, or can be; to determine
)
what satisfies him or does not; or, even to change his perspectives,
and bring around to recognise the possibilities inherent in the offer
you are making.
(c
Decision Variable
Obviously the operative word here is value. To qualify, it is the
value that the customer receives or perceives he is getting, in
exchange for a segment of money or time or choice surrendered by
him, which determines the ‘Decision Variable’. As a consequence,
value for money has become a consumer buzz-word as powerful
and pervasive as Brand Loyalty and Quality–this latter being, no

Notes doubt, an integral part of the value concept.
ES
___________________
It is axiomatic that the ‘Decision Variable’ itself is not a constant.
___________________ To explain, given the same product, backed with consistent value,
___________________ the customer may decide not to buy it, or defer his purchase
decision, depending on various factors external to the product—
___________________
economic, attitudinal and societal. The marketer, in such
___________________ situations, has to reach out beyond the confidence circle of his own
___________________ product into larger concentric circles, which he can only hope to
control most of the time. It is, perhaps, this perception of outer
___________________
circles and the compulsion to reach out for them, which adds true
___________________
value to his product, particularly in fiercely competitive situations.
___________________
Fortunately, not only air travel agents, but everyone else knows by
___________________ now of the dramatic attitudinal and societal changes which have
UP come about in India over the last twenty years, in the matter of
business and leisure travel. It is no longer a luxury, and certainly
not a psychological block, to want to get from ‘Point A’ to ‘Point B’
in the least time consuming, and in a most pleasurable manner.
The ‘Decision Variable’ has, in the main, become more need driven
as the external factors influencing such decisions have weakened
and lost their bite.
Since most things in life have a price attaching to them, the
advantages of a potentially large air travel market, close at hand,
must be placed in the context of constricted marketing
opportunities. This is neither a paradox nor a contradiction in
terms. What really has emerged for the trade is a scenario in
which the players are having to operate with not much to fall back
on, in terms of Unique Selling Propositions (UPSs). The seller of a
travel services is not about ‘to change the world’—the world has
changed! What he is attempting really is to add value to an
)
existing product for influencing the buying decision in his favour.

He is conscious all the time that the competition is selling
intrinsically the same product—a flight coupon, a car rental, a
(c
passport or visa service, a tour, and so forth. What could or does

make a difference for him are the peripherals he can add on or, as
is increasingly obvious worldwide, what reductions he can offer to
his client from the cost of the service provided, by working as
closely as possible.
This is not to imply that the travel business is a non-
professionalised hit-or-mis operation, working without
sophistication and driven by cut-rate deals, made in little offices.

As a matter of fact, travel is the largest and the fastest growing Notes
ES
Activity
commercial enterprise in the world. In India too, the growth Write a term paper on Indian
___________________
patterns are exciting, but more of that later. Moreover, technology scenario of air travel service
___________________
market.
has given the business a number of powerful operational tools.
Internally, large scale computerisation of travel agencies has made ___________________
sense of productivity and efficiency norms–concepts which, in the ___________________

‘people business’, are difficult to formulate and monitor.
___________________
Externally, access to international reservation mega-systems have
___________________
changed the rules of the travel marketing game, by offering
remarkable instant options to the airline traveller and hotel guest, ___________________
and travel agents are no longer unfamiliar with the distinct ___________________
advantages of satellite data links and electronic mail.
___________________
The most point, however, persist: are we, in the travel business,
___________________
UP
marketing or selling? Are we creating a need, or merely fulfilling
an existing need? Driven as we are by the more amorphous
elements of personal choice, how do we lend the product a
marketable dimension and how different are we allowed to be from
the travel agent next door? These are aspects which must be
viewed in the current and short-future Indian context.
Check Your Progress

Fill in the blanks:
1. Travel is the largest and the fastest growing
………………….. enterprise in the world.
2. ………………….. has given the business a number of
powerful operational tools.
Indian Scenario
)
The travel trade in India is about sixty years old, and has received
its impetus from the growth of civil aviation in the country. From
small beginnings with a few firms like Thomas Cook, Vensimals,
Mercury of the Oberoi’s followed a few years later by TCI and Sita,
(c
today it encompasses about 750 travel agencies spread all over the
country. Yet, this growth has been random and uncontrolled,
manifest by today’s trade syndromes, a serious lack of
professionalism, particularly in areas of marketing and finance,
the absence of clearcut institutional and product definition,
competition of the most pernicious kind, and an inadequate code of
ethics.
Also, apart from the odd one out, travel agencies in India have
Notes
ES
grown around the expertise, experience and enterprise of single
___________________
individuals and, so, tend to be highly personalised. These are
___________________ superior technocrats who have plunged in, armed with assurances
___________________ from a small but dedicated clientele, mostly with poor funding and
weakly held beliefs on the workability of modern methods in a
___________________
market place, where contacts, word of mouth publicity and
___________________ perpetual deal making predominate. For instance, how can one
___________________ explain, the fact that computerisation has been adopted just about
a decade ago, and even then, in the most rudimentary manner? Or
___________________
that, finance still remains primarily, a book keeping and debt-
___________________
collection function or that the marketing function is seen as an
___________________ exercise in trade expionage, sweet-dealing the clients, wheeling-
___________________ dealing and pumping in sales volumes at any cost or consequence.
UP The biggest problem a travel service marketer faces is determining
what to sell and to whom. As an agent there is not much he can do
about the activities of his principals, or those on whom he must
depend: be they airlines or shipping companies, government or
foreign embassies, local transport operators or their agents abroad.
Thus, the need is to be both circumspect and selective.
Overpromising and under-delivering a service can lead to loss of
money and loss of a client; and, in a trade which is as insular as
the travel trade, the ripple effect is disastrous. Ironically, the
Indian travel agent constantly gambles on these imponderables
because he believes he is safer off in familiar territory, as opposed
to offering products he is not comfortable with.
Players: The Competition

Situational, the Indian air travel agent finds himself caught in the
cause and effect fall-out of unplanned and non-regulated growth.
)
He is forced to compete not only with fellow agents, but with other
players in the field like General Sales Agents and Passenger Sales
Agents. Initially, these firms were appointed by certain airlines to
sell their capacities in areas where no IATA approved travel agent
(c
existed, at commission percentages higher than what the travel

agent earned. First at a slow pace, but later with gathering
momentum GSAa and PSAs have ‘crossed the borders’ and is it not
unusual to find, particularly in our metro cities the airline, its GSA
or PSA and IATA approved travel agents operating next door to
each other, and often running after the same client! Further, cases
of the airlines, i.e., the principal, itself competing against its agent
for a plum account are not difficult to find. Notes
ES
In the highly price sensitive travel trade, where every other client ___________________
is primarily concerned with neutralising the effects of steeply ___________________
increasing airfares on his travel budget, this places the IATA
___________________
approved travel agent at a serious disadvantage; he is forced to
offer discounts from his earnings just to stay in the game. ___________________
___________________
Within the travel fraternity itself, at least five classifications have
emerged; the IATA agent offering a wide clutch of services on a ___________________
multilocational basis; the single location agent; the corporation ___________________
promoted ‘in-house’ agency; the ‘consolidator’ who buys business
___________________
for cash on a heavily discounted basis; the non-IATA “Mom and
Pop Shop’ who have no airline ticket stocks or service back ups and ___________________
exist by pulling in clients literally from the pavements for IATA ___________________
UP
Agents in exchange for a small sub-agency commission. Add to
these the firms which specialise only in visa or passport work on
the side, and the usual assortment of free lancers and touts. The
IATA approved air travel agent must find his way through this
maze of options and enticements to reach his prospective client.
Travelling Publics: The Market Segments

Arguably, the most significant development in the trade has taken
place in the minds of the travelling public. The 1990s flier,
particularly in the context of international travel, usually knows
what he or she wants with a clarity, which as one travel agent put
it, is comparable to a buyer of a refrigerator knowing what ambient
temperatures, what chemical composition of argon gas, what gauge
of steel sheeting and polymers, and, of course, what pricing is
acceptable. Even first time flyers generally check out most of the
angles like preferred airlines, schedules, airport facilities,
)
connections and deals offered before talking to the travel agent. He

or she then sits back and asks—what else?
Another aspect which is specific to the travel trade in India is the
regional dispersion of the factors which impact upon the ‘Decision
(c
Variable’. One cannot be too dogmatic about this, but it is

reasonable to assert that, whilst in the Southern Region strong
brand loyalties to both the principal and the agent assume an
important role, this is not so in the North and East, where pricing
tends to be uppermost in everyone’s mind. In the Western Region,
superior packaging of options and a demonstrated excellence in
service standards can override both traditional as well as purely

Notes economic advantages. Some travel agents who operate on a
ES
Activity
___________________ national basis have perceived these differences and flexed their
components of marketing of marketing presence accordingly. On the other hand, this regional
___________________
airport services.
dispersion does explain, to some extent, the failure of many agents
___________________
to successfully spread into regions other than where they have
___________________ established themselves in the past. This problem is not exclusive to
___________________ the travel trade, as any marketer worth his pay will tell us;
focussing on regional market trends and forces is integral to the
___________________
activity.
___________________
The scenario, however, gets somewhat complicated when the
___________________
product you are selling is not really your own. For example,
___________________ assume that you have successfully sold airlines in Madras which is
___________________ inflexible in the matter of discounting, but commands strong
UP loyalties for its schedules, on board service levels, connections and
so forth. Selling the same airlines out of Delhi will not be as easy
since the rules of the game could be different there. The true
dilemma lies in having to decide whether it’s going to be the airline
service that you are selling as your product, or is it the excellence
of your travel agency service package which is the real clincher.
Check Your Progress

Fill in the blanks:
1. The biggest problem a travel …………………. marketer
faces is determining what to sell and to whom.
2. The most significant …………………. in the trade has
taken place in the minds of the travelling public.
Marketing of Airport Services

)
The quality, reach and ultimate success of the marketing activity

in an air travel agency depends on how clearly the marketer has
understood the service levels his firm can deliver, and how
accurately he assesses the factors which make his firm stand out
(c
from the competition. To arrive at such level of clarity and

accuracy he will have to measure his firm’s potential and
performance against the generic and specific factors which
contributed to the success of a travel services operation.
Whilst a distinction has been made between the generic and the
specific, it must be understood that the factors are not insular; that
there is both an overlapping and an interlocking into one another.

Moreover, there are some functional relationships between them, Notes
ES
particularly in terms of cause and effect. The generic factors which ___________________
will contribute to success are the seven C’s. This is not a priority
___________________
listing and each factor assumes importance at a particular point in
time or amidst a specific scenario. However, everything should ___________________
finally progress into credibility and confidence. ___________________
___________________
Seven C’s of Airport Services Marketing
___________________
Following are the 7C’s of marketing for airport services:
___________________
 Credibility
___________________
 Confidence
___________________
 Competence
___________________


Clout
Consistency
UP
 Customisation
 Care
Credibility and Confidence

These are the strongest allies a travel agent can have in the
market place. Qualitatively, selling travel services is a complex
business, not only due to convoluted fare structures, a lot of
regulations to be complied with, involved itinerary planning and so
forth, but to great extent due to the fact that the agent has little
control over the end product he offers. A aircraft may get delayed,
or not take off at all, leading to a missed connection; a visa or
passport may be refused and there is almost nothing you can do
about it in a hurry; a hired car may fail to turn up, or a hired coach
)
may break down miles from anywhere; a hotel may not have a pre-
booked room ready for your client; your client’s air cargo may be
shut out at the last moment; a tour can start with delay and
misunderstandings and even end in a fiasco. Each of these primary
(c
services are organised by you from principals; no principal is

answerable to you and only a few choose to commiserate with you.
On the other hand, since the client rarely interacts with the
principals, you are inevitably answerable to him.
These traumas are what a travel agent has to frequently live
through, and a good agent develops techniques and plans to
safeguard his client and himself. How well he does this reflects on
Notes his credibility and the confidence level he is able to generate and
ES
___________________ sustain in the market. Word does tend to get around and if the
marketer, in pitching for new business, can demonstrate these
___________________
qualities backed with data and facts, he can manoeuvre his agency
___________________
into a position of strength. Even so, we in the Indian market place
___________________ are lucky because loyalties die hard here, unlike in the West where
___________________ credibility is subjected to constant testing and analysis. But, with
business perspectives becoming increasingly bottom-line and
___________________
pressure oriented, things are changing. The marketing
___________________ professional must realize this and search for credibility and
___________________ confidence advantages for his agency.
___________________
Competence
___________________
UP Listing competence as a marketing advantage may be resorting to
a tautology. Nevertheless, the qualities a travel agent possesses in
terms of high job specific skills and professional staff strength, sets
it apart from the run-of-the-mill agent and promotes client
confidence. Here, competence is related to technical excellence
more than to street smart ‘Mister Fix It’ labels. There will be
enough opportunity to demonstrate the latter when things need to
get done out of turn by bending rules, but to begin with, an
agency’s prime strength lies in how will the technicalities of the
trade are handled by its staff and managers. Competence,
therefore, is a function of superior staff, strong supervision,
effective systems and controls and diverse experience culled from
the trade. The marketer who can assert, based on a proven track
record, that his firm knows all the options and can deliver the best
one to the client, or has the talent to anticipate problems before
they arise, is bargaining from a position of strength.
)
Clout
Clout of course can be applied when, inspite of having pressed all
the buttons, the machinery remains immobile. Given the
(c
multiplicity of operational systems laid out by a number of

principals, anything that could go wrong—cancellations, delays,
tariff revisions. If the marketer perceives the efficacy of his
agency’s contacts within the confines of offices that matter, he
must project this strongly to his prospective client. He should,
however, avoid the overkill; contacts remain productive only if they
are handed judiciously.
Consistency
Notes
ES
This is another important factor which the marketer must exploit
to the firm’s advantage. It is far easier to maintain consistency of ___________________
quality in the case of sale of goods which can be produced to DIN or ___________________
BS or ISI specifications than when you are selling services which
___________________
do not conform to tangible parameters and have a perceptual bias.
___________________
As a matter of fact, it is this bias which determines the vital
___________________
‘Decision Variable’ which was discussed earlier. Consistency,
however, is easy to comprehend, but not as easy to sustain ___________________
particularly, “when you are marching in some one else’s parade.” ___________________
The travel service marketer in view of competitive pressures tends
___________________
to pitch at the highest promise levels, every time to the client. This
practice is undesirable, and one should see very objectively on ___________________
what the agency can do, time after time. The service performance ___________________
UP
must not read like the ECG of someone with a systolic problem,
nor should it be a flat-liner. It is important to learn how to say ‘No’
at times and play safe. It pays in the long run to consistently
deliver good levels of service than be a ‘one shot wonder’.
Customisation and Care

If an agency is still arguing about what has been discussed,
remember that the negative fall out of saying ‘No’ to a client can be
neutralised if, as the marketer, one is prepared to approach each
client as someone who has special needs, even if they are not
obvious.
The travel service marketer is rarely selling a branded product.
There are no airlines that everyone always likes or dislike; there is
no best airport in the world where your client wants to get stuck in
for hours; there is no ideal stopover or routing. Each client has a
special perspective, and he wants a travel agency to tell him and
)
show him that it understand this well.

Small and medium sized agencies have gainfully employed this
factor in their selling and servicing, perhaps due to advantages of
(c
low volumes which can foster a one-to-one relationship with their

clients. It is the larger travel agencies which have suffered in
comparison.
For example Mercury Travels, which is the top three in the
country, has a client base of over 500 companies. The problem of
providing each passenger, which could be say 1000 travellers a
month on international flights only, with highly customised
treatment, is acute. Keeping track of their travel related data is no

Notes small task. Until a satisfactory answer to this can be found, high
ES
___________________ volume agencies will have to create a special sales and servicing
cell, and then allocate perhaps 5 to 10 clients per each staff on a
___________________
dedicated basis. But, as is obvious, this adds not only to staff costs,
___________________
but often to pernicious in-house squabbling, when each group
___________________ member pushes for emergency attention from the ticketing counter
___________________ staff. There is at least one large agency which has found the
resources to create dedicated cells comprising one staff, each
___________________
drawn from domestic ticketing, international ticketing, sales and
___________________ servicing, and documentation departments, which deal just with
___________________ their ‘own’ clients.
___________________ Large agents in America and Europe are highly computerised, both
___________________
in-house as well as being subscribers to mega-computerised
UP reservation systems like Sabre, Galileo, Amadeous and so forth.
We, in India, are far behind till now. It has, therefore been our
endeavour, in our agency, to bring about quantum changes in our
in-house computer systems not only to go completely on-line within
nine months, but also in the process, to build up a comprehensive
travel profile of everyone who has travelled through us. Whilst
waiting for this upgradation to take full or even substantial effect,
our marketers must sell our service on the premise that every
passenger will receive personalised treatment, and ensure that his
or her commitment to the client is backed up by strong operational
support. The silver lining in this situation for a large agency is
that, with years of handling a wide span of customer needs, agency
staff is conditioned to expect complications and provide quick,
effective, cost saving solutions which are really what the client is
looking for, to begin with.
Customisation is pointless with Care, in its twin manifestations.
Firstly, the marketer must assert that his agency cares about your
)
particular needs, and it prepared to put his money where his

mouth is. Secondly, that his agency takes more than adequate care
in planning your travel details and follows through till departure.
(c
It is generally believed that if a client is convinced that adequate

care has been taken at the planning stage, and all that needs to be
done has been done, he tends not to hold the agency responsible for
the problems and frustrations, which may befall him later. A client
is a business person, a corporate manager, a Government official, a
self-employed professional, with whom the travel service marketer
can strike the empathy chord.
Check Your Progress

Notes
ES
Fill in the blanks: Activity
___________________
1. The travel service marketer is rarely selling a other marketing challenges.
___________________
……………………. product.
___________________
2. With business perspectives becoming increasingly
……………………. and pressure oriented, things are ___________________
changing. ___________________
___________________
Other Marketing Challenges
___________________
There are a number of specific factors which can be used to a great ___________________
advantage in marketing of an air travel service within the
___________________
distinctive scenario that exists in India. These factors are:
___________________
1.
2.
Low general awareness,
Intense competition,
UP
3. Poor infrastructure, and
4. Lack of control.
Low General Awareness

The Indian traveller, having truly come of age in the last decade or
so, is ironically, by and large, still ignorant of all that a travel
agency can do for him in terms of servicing, obtaining the best
deals for him from the airlines and hotels, the various meet and
assist services, which are available at airports in India and abroad,
the most inexpensive methods of transportation, time saving and
so on.
Intense Competition
On the other hand, the market is intensively competitive, with an
)
increasing number of players, running after the same client

groups. Even if 0.01% of our 880 million travel, (at 800,000
travellers), our country has immense potential. It is reasonable to
(c
estimate that just about 10% of this potential is tapped. On the

other hand, the number of travel agents have increased fifty-fold in
the last two or three decades. To paraphrase Winston Churchill,
never have so few expected so much of so many. Travel services are
overwhelmingly concentrated in the metros and their environs—
few travel agents have been intrepid enough to invest time and
effort in opening up the vast and affluent hinterland. This

Notes manifests itself in ingrowing and intensive competition.
ES
___________________
Poor Infrastructure
___________________
The tools that travel agent has to work with are at best, primitive
___________________
and at worst, non-existent. In house computerisation levels in the
___________________ trade are very low, because given the abysmal margins available to
___________________ the agent, he fights shy of all investment that cannot guarantee
instant returns. Additionally, the agent is familiar with mega
___________________
reservation systems only through the pages of foreign trade
___________________ journals. On the other hand the available domestic service
___________________ infrastructure from our telephone systems to airplanes can keep
___________________
anyone guessing and missing.
___________________ Lack of Control

UP Finally, as explained earlier, the travel trade in India is not
regulated by charter or by a strict ethical code. IATA norms, save
for financial guarantees, are loosely operated both in terms of
licensing and monitoring. The premier travel trade-body, the
Travel Agents Association of India is constituted by preference,
and has no statutory control over its members which constitute
about half of all IATA recognised agents in the country. Thus grab-
as-grab-can is the name of the game. The operational ethics of
many travel agents border on malpractice. Price, and not service,
has become the prime mover in the market.
Specific Factors
In this scenario, a professional air travel service marketer in terms
of specific advantage selling must rely on the premise that his
agency:
1. Has a comprehensive profile,
)
2. Adds value to an universal product,

3. Uses credit and discounts as judicious marketing tools, and
(c
4. Creates awareness in the mind of the potential client by

specific as well as institutional advertising.
In marketing to a corporate client, the fact that an agency can
provide cargo, transport, conferencing facilities and a hotel
reservation service, perhaps even a courier service, is a distinct
advantage, which the marketer must capitalised on. In the process
of ticketing itself, there are a number of add-ons, which can change

the dimensions of the agency for the better. Notes
ES
___________________
Value Add-ons in an Air Travel Agency
___________________
Value add-ons in an air travel agency are as follows:
___________________
 A tie up with a credit card company for rupee payment in
___________________
India, and a hotel reservation system.
___________________
 A tie up with authorized dealer in foreign exchange, to secure
the benefits of quick processing at minimum cost. ___________________
 To possess a full-fledged money changers licence, and work as ___________________
a one-stop shop. ___________________
 To introduce a Privilege Traveller Club which can give the ___________________

frequent traveller benefits, this could take the form of ___________________
UP
complimentary meet and assist services of free tickets, or even
an all expense paid holiday.
 Computerized reminder service on visas and passports and
event on the highlights of previous journeys.
A marketing tool that is quite prevalent in the West, and is fast
catching on in the advertising trade in India, is that the agency
moves into the client’s office and sits with him to plan his Annual
Expense Budget. This concept has a lot of potential in the travel
trade too, what with steep airfares and increasing frequency of
international travel, resulting from the new global perspective
concepts, set in motion by Government for Indian business. If the
agent can concretise savings in the client’s travel expense by
combining trips or rerouting itineraries, or negotiating bulk
incentives for him from airlines and hotels, a powerful firm
business base can be established. The marketer of the travel
services must attempt to become an integral part of the client’s
)
budgetary process.
The art of service recovery is also a very powerful tool in the hands
of the air travel marketer. As we have seen, a travel agent is
(c
horribly prone to the deadlier aspects of Murphy’s law, being

subjected to the fall-out from its own, and others’ errors of
omission and commission. It capitalises on and gets mileage from
adversity.
Instances of a group being bumped off a flight and taken straight
by a travel agent to a restaurant for a five star dinner, or his
picking up the tab for an aborted flight connection, or offering a

Notes complimentary trip to Agra when the usual transport fails to
ES
___________________ report, are not uncommon. A leading hotel chain in America
asserts that if ‘Room Service’ takes more than 10 minutes the
___________________
service is complimentary. If the marketer is in a position to commit
___________________
such quid pro quos, he should use it to his advantage.
___________________
As far as discounts, credit and complimentary service in general
___________________ are concerned, the agency policies must be clearly defined. The
___________________ marketer must make the initial pitch by forcefully highlighting
such benefits, keeping in mind what the competition has to offer.
___________________
He must be prepared for counter demands from the prospective
___________________
client, and be flexible enough, as dictated by circumstance.
___________________ Compulsions of high volumes and prestige play an important role
___________________ here. In securing a large Bank’s travel business, higher discounts
UP and longer credits than are usually offered by his agency, may be
justified if there is a strong chance of the goodwill rubbing off on to
the Bank’s commercial clientele, who may then swing their travel
business towards that agency. Offering special terms to powerful
trade bodies and associations may also pay-off in a similar manner.
It is considered both ethical as well sound business policy to check
out the prospective client’s record with the earlier agency-why is
he leaving them? An independent financial review and rating
helps.
On the other hand, the marketer, reviewing a client’s past
performance, must take into account sales volumes and payment
record. In re-negotiating contracts, one of the prime considerations
is whether it has been a profitable relationship for both the parties.
Look through any newspaper or magazine, and you will observe
that the advertising of services in this country constitutes an
infinitesimal segment of the total amount spend on product
)
advertising. This is a ridiculous situation because, obviously, it is

the former which is more nebulous in its perceived benefits, and
therefore needs to be more positively projected at the potential
(c
market. Travel agents stop at the occasional cocktail party or P R

base—with the guest list being generally restricted to existing or
past clients. There is an agent who has an annual party for over a
thousand people at a football stadium, comprising past and present
travellers with them! What little advertising there is, is limited to
specific launches–an outbound tour program, or the opening of a
new location.
The concept of producing an effective corporate brochure, or a sales

Notes
ES
kit, is important; it can form the basis of the marketer’s initial
sales pitch. Similarly, in going for a very large account it may be ___________________
worthwhile to invest in an audio-visual presentation. For instance, ___________________
once a very prestigious Bangalore based client called for an AV
___________________
presentation and Mercury Travels won the account on the
strengths of AV presentation. Newspaper and magazine ___________________
advertising, leave along TV, is very expensive and must be ___________________

judiciously used. ___________________
In the main, the successful travel service marketer must be ___________________
convinced that effective institutional advertising which forcefully
___________________
imprints the agency’s product in the public mind, in essential.
There are hundreds of potential clients out there who must be told ___________________
what you can offer them. ___________________

UP
Check Your Progress
Fill in the blanks:
1. The art of service ……………….. is also a very powerful
tool in the hands of the air travel marketer.
2. While going for a very ……………….. account it may be
worthwhile to invest in an audio-visual presentation.
Summary
The purpose of marketing is to create a customer. To do this, you
have to know who your customer is and can be. The customer
perceives a value to be received for his money, and this perception
determines his ‘Decision Variable’. The travel trade in India over
the last sixty years or so has grown fast, but in an unregulated
manner. Consequently, a confusing admixture of players exist on
)
the scene; the IATA Agent, the Non-IATA Agent, the GSAs and
PSAs.
The qualitative success of the marketing effort depends on how
(c
clearly the marketer understands the service levels his agency can
deliver, and the factors which make it distinct from its competitors,
such factors are both generic as well as specific. The generic factors
are the seven Cs; competence, credibility, confidence, consistency,
customisation, care and clout. The specific factors are more clearly
identifiable by both the marketer and the person he or she is trying
to convince. The travel trade in India is one of the fastest growing
businesses. It attracts both the technocrat both the technocrat as

Notes well as the hustler.
ES
___________________
The successful air travel service marketer is, therefore, a
___________________ professional who recognises the compulsions of the trade and is
___________________ able to convince the potential client as to why that client should
not do its own travel management, but use an air travel agency
___________________
instead.
___________________
___________________ Lesson End Activity

___________________
Discuss within your group can value addons give you a competitive
___________________ edge.
___________________
___________________ Keywords
UP Travel Agent: Someone who sells or arranges trips or tours for
customers.
Unique Selling Proposition (USP): It is the factor or
consideration presented by a seller as the reason that one product
or service is different from and better than that of the competition.
Competence: Competence is the ability of an individual to do a job
properly.
Awareness: Awareness is the state or ability to perceive, to feel, or
to be conscious of events, objects, or sensory patterns.
Clout: A heavy blow with the hand or a hard object.

1. What is meant by decision variable in terms of marketing of
air travel service?
)
2. Discuss the 7 C’s of airport travel service marketing in detail.

3. What are the challenges that an air travel agent face in the
marketing of air travel services?
(c
4. Briefly describe competition as a player in the industry.

5. What are the value add-ons in an Air Travel Agency?
Further Readings
Notes
ES
Books ___________________
Fojt, Martin, (2006), Strategic Direction: The Airline Industry. ___________________
___________________
Martinez, Mario & Hobbi, Bob, (2009), Building a Customer
___________________
Service Culture: The Seven Service Elements of Customer Success.
IAP ___________________
___________________
Aviation, Ashgate Publishing Ltd. ___________________
___________________
Web Readings
___________________
http://blog.marketingforairlines.com/2009/09/strategic-marketing-
___________________
for-airports/
UP
http://www.amadeus.com/groundhandlers/docs/Amadeus-
Navigating-the-Airport-Of-Tomorrow-2011-EN.pdf
)
(c
(c
) UP
ES
UNIT 15: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
___________________
Case Study: Hartsfield-Jackson Atlanta International Airport
___________________
Hartsfield-Jackson Atlanta International Airport (HAIA) is the
world’s busiest passenger airport, serving more than 83 million ___________________
passengers per year. As part of its mission “to be the world’s best
___________________
airport by exceeding customer expectations,” HAIA has
continually enhanced its 5.8 million square-foot facility. Part of ___________________
UP
that effort involves ensuring clear, reliable communications
services for passengers and airport personnel to ensure a safe and
productive environment.
In 2000, HAIA management determined that the existing
network and telecommunications infrastructure was inadequate
to support the airport’s long-term vision. “When we looked at our
current infrastructure and considered our customer needs and
where we wanted to go with services, we found that there were
major gaps,” says Lance Lyttle, HAIA’s chief information officer.
“The airport did not have an airport wide, centrally managed,
infrastructure with the required technology and bandwidth to
support future required applications.” In addition, cellular
telephone and public safety wireless coverage was spotty, with
dead spots and poor reception plaguing certain parts of the
facility. Although some cellular carriers had deployed their own,
in-building wireless distribution systems to boost their signals,
other carriers relied on nearby outdoor cell towers.
As a result of the analysis, the airport embarked on a three phase,
four-year, $11 million telecommunications infrastructure upgrade
program that would bring state-of-the-art voice, video, and data
communications to every part of the airport for passengers,
)
employees, and tenants. The program rolled out in three phases,

the first two of which involved building new telecommunications
rooms, raceways, conduits, and cable trays and then installing a
centralized, OC-192 fiber-based backbone for all voice, video and
data traffic. In the third phase, HAIA built value-added services,
(c
including Wi-Fi access and pervasive cellular and public safety

wireless coverage.
Some public facilities rely solely on wireless service carriers to
deploy and manage in-building systems. However, as part of its
wireless neutral host strategy, HAIA chose to build its own
system. The objective is to ensure the highest quality service and
coverage for both cellular and public safety systems, along with
the ability to add new services as they became available.
Contd….
Although several companies supply in-building wireless systems,

Notes HAIA’s evaluation team worked directly with cellular carriers for
ES
over a year to select, design, and implement a system that would
___________________ meet everyone’s needs. “We wanted a proven system that would
support multiple providers – a system that had the carriers’
___________________
confidence,” says Lyttle. “We actually had weekly meetings with
___________________ Cingular, Nextel, T-Mobile, metroPCS, Verizon and other carriers
during our evaluation of technology options to make sure their
___________________ requirements were met.” As with most in-building systems, the
deployment included on-site base stations from cellular carriers.
___________________
These base stations are located in the airport’s new
___________________ “telecommunications hotel,” and the wireless signals would be
propagated from them throughout the airport via a distributed
___________________ antenna system (DAS). Given the size of the facility, the HAIA
team wanted a DAS that could distribute wireless coverage
___________________ evenly, without signal loss, regardless of the distance from the
___________________
carrier base station. In addition, the team wanted a system that
could easily support the airport’s high customer volume and could
___________________ be cost-effectively deployed and upgraded to support additional
UP capacity and new wireless services.
The evaluation team eventually chose the InterReach Unison®
system. The Unison system uses a familiar hub-and-spoke
architecture, much like that of an Ethernet LAN. At HAIA, the
deployment involved eight separate Unison systems that included
36 Main Hubs, 96 Expansion Hubs, over 500 active Remote
Access Units (RAUs), and more than 700 ceiling-mounted
antennas. Due to its size (one of the largest systems in the world)
and a design change during deployment, installation and testing
of the Unison system took about six months. It went live in mid-
January 2006.
The Unison system now delivers clear, high-quality voice and
data services to every area of the airport, including ticket lobbies,
baggage handling areas, gates, and throughout the underground
passenger transportation system. It currently handles traffic for
all wireless subscribers as well as the airport’s public safety
workforce. With a current capacity of nearly 70,000 calls per hour,
HAIA’s travelers can use their time more productively for
untethered voice and data calling. Already, Verizon has deployed
its new 3G mobile data service (using EV-DO) for users of its
wireless laptop cards, who are enjoying connection speeds of up to
)
900 Kbps. The other carriers are planning high-speed data service
upgrades as well. The new system has also eliminated coverage
gaps for security personnel, ensuring continuous contact in
elevators, stairwells, or anywhere else in the facility. Now at the
completion of its telecommunications upgrade program, HAIA
(c
boasts a cellular wireless infrastructure with service and coverage

second to none—an asset that's only fitting for the world's largest
passenger airport. Thanks to ongoing improvements and premium
technology partners, Hartsfield-Jackson Atlanta International
Airport is poised to continue its industry leadership.
Contd….
UNIT 15: Case Study
Questions:
Notes
ES
2. Write down the case facts. ___________________
3. What do you infer from it? ___________________
Source:http://www.te.com/content/dam/te/global/english/industries/wireless-adc/knowledge- ___________________
center/documents/wireless-hartsfield-atlanta-airport-105917ae.pdf
___________________
___________________
___________________
___________________
___________________
___________________
___________________
) UP
(c
(c
) UP
ES
UNIT 16: Understanding the Customer
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-IV
)
(c
Detailed Contents
Notes
ES
UNIT 16: UNDERSTANDING THE CUSTOMER
___________________  Objectives of Customer Service
 Introduction  Benefits of Customer Service
___________________
 What is a Customer?  Role of a Customer Service Representative
___________________
 The High Cost of Losing a Customer
___________________ UNIT 19: CRM IN SERVICES
 Customer Expectations of Service
___________________  Introduction
 Customer-Driven Airline
___________________  Customer Retention through Relationship
Marketing
UNIT 17: IMPACT OF FRONT LINE STAFF
___________________
 Introduction  Components of CRM
___________________
 Behind the Front-Line  Steps of CRM
___________________
 On the Front-Line  CRM Business Cycle
___________________ Airport Excellent Customer Service
 Introduction
UP
UNIT 18: CUSTOMER SERVICE

UNIT 20: CASE STUDY
 Concept of Customer Service

)
(c
Notes
ES
Activity
___________________
Understanding the Customer Prepare a chart describing
what is a customer?
___________________
___________________
Objectives
___________________
topics: ___________________
 What is a Customer? ___________________

 The High Cost of Losing a Customer
___________________
 Customer Expectations of Service
___________________
 Customer-Driven Airline
___________________
Introduction ___________________
UP
A customer (sometimes known as a client, buyer, or purchaser) is
the recipient of a good, service, product, or idea, obtained from
a seller, vendor, or supplier for a monetary or other valuable
consideration. Customers are generally categorized into two types:
An intermediate customer or trade customer (more informally: "the
trade") who is a dealer that purchases goods for re-sale.
An ultimate customer who does not in turn re-sell the things bought
but either passes them to the consumer oractually is the consumer.
Tennant categorizes customers another way, that is employed
outwith the fields of marketing. Whilst the intermediate/ultimate
categorization is used by marketers, market regulation, and
economists, in the world of customer service customers are
categorized more often into two classes:
 An external customer of an organization is a customer who is
not directly connected to that organization.
)
 An internal customer is a customer who is directly connected

to an organization, and is usually (but not necessarily) internal
to the organization. Internal customers are usually
(c
stakeholders, employees, or shareholders, but the definition

also encompasses creditors and external regulators.
What is a Customer?
We are all customers, almost every day of our lives, whether we
buy something in a shop or retail outlet, or avail of a service. But
what exactly is a customer? The following ten points go some way

Notes towards answering that question:
ES
___________________
1. Customers are the most important people in any Organization.
___________________ No customers = no airline.
___________________ It’s as simple as that – Robert Crandall of American Airlines
___________________ has said that it is the last 2 passengers on every flight who
make the difference between tremendous profits and
___________________
staggering losses for an airline. Yet, it is the front-line staff
___________________ who determines the success of whether or not these passengers
___________________ board: the extra effort to find lost passengers, the reservations
___________________
staff who sells a little harder favour by asking for help, not the
other way around – your airline is not doing the customer a
___________________
favour by providing service.
___________________
UP 2. Customers are not dependent on the airline rather; the airline
is dependent on them. As we said earlier, customers have a
choice. They are completely free to choose to fly with another
carrier, use other means of transport or communication or
simply stay at home.
3. Customer are not people who interrupt your work, they are the
purpose of it.
4. Customers are doing your airline a favor by asking for help,
not the other way around your Airline is not doing the
customer a favor by providing service. The only reason you
have the opportunity to provide service is because the
customer asks you to.
5. Customers do not exist as outsiders to the airline; they are an
essential and integral part of it.
6. Customers are not cold statistics or numbers on balance
sheets. They have feelings and emotions and deserve a high
)
standard of service at all times. In fact, their expectations are

always increasing.
7. Customers are not people with whom to argue or match wits.
(c
We all know that customers are not always right, but there is
no gain for you in telling them that they are wrong. Whether
the customer is right or wrong is not the point. The customer is
always a customer and you want to keep him. Never try to win
an argument with him.
8. Customers have needs – it is the job of the service provider to

respond to them. As we said earlier, realistically speaking, there Notes
ES
Activity
are limits which may prevent you from providing the customer ___________________
with what he wants. But these limits should never prevent you topic high cost of losing a
___________________
customer.
from responding positively in order to bring about customer
satisfaction by providing a high standard of customer service. ___________________
9. Customers are people who deserve courteous and attentive ___________________
treatment. ___________________
10. Finally, to reinforce point 1, customers are the lifeblood of your ___________________
airline, and any other profit making organization. The vital ___________________
question which must be asked is - ‘Did the customer enjoy the
___________________
experience’? A positive response to this question from the
customer is more likely to ensure repeat business than a ___________________
negative one. ___________________

UP
Check Your Progress
Fill in the blanks:
1. ………………….. are not dependent on the airline
rather; the airline is dependent on them.
2. Customers are people who deserve courteous and
………………….. treatment.
The High Cost of Losing a Customer

It would be very easy to believe that:
One lost customer = One lost customer
However, this is rarely the case, as we shall see a little later on.
Furthermore, in order to make up for that lost customer, you must
attract a new one to replace him. It is less expensive to keep
)
customers than it is to attract new ones. Being close to the

customer is one way to ensure that he is not so dissatisfied that he
switches carriers. If you know why the customer feels dissatisfied,
you can take steps to remedy the situation. It is also very easy to
(c
believe that because no customers have complained that there are

no dissatisfied customers. This is not necessarily the case.
 On an average, for every customer who actually takes the
trouble to complain, there are 26 other dis-satisfied customers
who remain silent. So, rather than 1, there are, in fact, 27
dissatisfied customers.
 The average ‘wronged’ customer will tell between 8 and 16

Notes people about their unsatisfactory experience with the airline.
ES
___________________ (Over 10% will tell more than 20 people)
___________________ Let us do some simple calculations in order to weigh up the
___________________ significance of these two points:
___________________ 1 + 26 (Dissatisfied customer who complained)
___________________ 27 (Dissatisfied customers who did not complain)

___________________ X10
___________________
270
___________________ (average number of people they told about their unsatisfactory

experience).
___________________
So, what looked on the surface like 1 dissatisfied or unhappy
___________________
UP customer, could lead to 270 lost customers. If, as we said earlier,
the service providers were close to those 26 silent but dissatisfied
customers, they would have known they were unhappy in the first
place, and the airline might have kept all 270 customers.
Of the customers who are dissatisfied with your airline, 91% will
not fly with it again. They will have to be made up for by attracting
new customers. As we said before, it is less expensive to keep
existing customers than it is to attract new ones.
If customers see that the service provider is making an effort to
remedy their complaints, then 82-95% of them will stay with the
airline.
It costs approximately ten times more to attract a new customer
than it does to keep an existing one. This figure highlights the
necessity for believing that each customer is important and
making every effort to ensure that he stays with the airline.
)
“Organizations will spend literally hundreds of millions of dollars

to attract new customers while their old customers slip out the
back door, never to return again. What drives people away is rude,
discourteous, inept, incompetent service. It may simply be a matter
(c
of apathy or inattention.”
However, it’s not all bad news, as the following figures will reveal:
 70% of the customers who complain will do business again, if
an apology is received,
 Of the customers who complain, 70% will do business again if
the problem is resolved to their satisfaction,
 90% will return if the complaint is resolved quickly

Notes
ES
 Each happy customer will tell others about the experience. Activity
___________________
And the best news is that customers will pay in proportion to the customer expectations of
___________________
service.
degree of satisfaction they receive. This makes sense – a customer
___________________
who feels that he has been treated badly is hardly going to pay
money for the ‘privilege’ of receiving that level of customer service ___________________
a second time. ___________________
___________________
1. Organizations will spend literally hundreds of millions
of dollars to attract ……………….. customers. ___________________
2. What drives people away is rude, discourteous, inept, ___________________

UP
incompetent ………………..
Customer Expectations of Service

The customer does not usually walk into a travel agency, or up to a
desk in an airport, without having: any preconceived notions about
the service he want to purchase. He possesses expectations, i.e.
customer expectations. Failure to fulfil these, or to provide an
alternative, in a polite and courteous manner, can lead to customer
dissatisfaction. The customer’s expectations of the service he can
expect to receive are essential part of the purchase decision.
“Customer expectations are attitudes held by customers towards a
company. They relate to the product, to the service given, and to
the professionalism of customer contact.”
Let us take a look at the following example. In the early 1990s, one
very large airline decided it needed1 overhaul its image in order to
)
convey a more professional and service-oriented message to the

business travelers it wanted to attract. It subsequent spent
millions of dollars changing its logo, livery, uniforms and offices. It
(c
then packaged and unveiled these changes in a splashy new

advertising campaign.
The campaign promised the customers “We’re new. We’ve
improved. Try us.” Many thousands did try’ new airline, with new,
higher sets of expectations. The only problem was that the airline
had done nothing improve the service. As a result, the customers
received the same level of performance as before, but against

Notes higher expectations. What was the net result?
ES
___________________
A lot of wasted money and customer dissatisfaction.
___________________
The following ‘EPS’ formula for Customer Service states the point
___________________ even more clearly:
___________________  Expectations
___________________
 Performance
___________________
 Satisfaction
___________________
Let us put this formula into action, using two different customers
___________________ with different service expectations:
___________________
Example 1:
___________________
UP Dinner at the Hotel Magnificent
Customer Expectations Fantastic food
Recognition
Fastest service
Actual Performance Above average food
Mispronounced name
Five minutes delay
Satisfaction ? No
The second example has the same level of service, but with a
different set of customer expectations. This time the result is a
satisfied customer.
Example 2:
)
Dinner at the No Named Hotel

Customer Expectations Average food
Lost Reservation
(c
Slow service
Actual Performance Above average food
Mispronounced name
Five minutes delay
Satisfaction ? Yes
In theory, if a customer has never dealt with the airline before, and
Notes
ES
has had no bad experiences with it, he should approach it for the
first time with relatively high expectations. However, as we have ___________________
seen, even when a customer has not had personal dealings with a ___________________
company, he is often acquainted with someone who has. Therefore,
___________________
in practice, the customer’s expectations of service are likely to have
been prejudiced – either positively or negatively. He has been ___________________
influenced by the way in which the airline has dealt with others in ___________________
the past. ___________________
Apart from anecdotal evidence passed on to him by someone he ___________________
knows, there are a number of different factors which influence the
___________________
customer’s evaluation of service once he has dealt with the airline
in person. He appraises the standard of customer service offered by ___________________
the airline (or any company), on the basis of the following: ___________________
Efficiency
UP
Was the service I received fast, accurate and competent?
Confidence
Did the person I dealt with know what he was doing, or did he
seem unsure of himself?
Helpfulness
Was the member of staff who handled my business willing to
answer all of my queries, or did he seem to find them annoying?
Did he act like I was preventing him from doing his job?
Personal Interest
Was the staff member who booked my journey interested in
helping me, or was I just another faceless customer who had to be
dealt with?
)
Reliability
Can I feel confident that the staff member did what I asked him to
do, or will I have problems with my travel arrangements when I
(c
take my trip?
The above factors are internal. There are other, external factors
which influence customer expectations of service, but, as the name
suggests, they are outside the standard of customer service
provided by a member of the airline’s staff. One of them is the
anecdotal evidence of friends and family discussed earlier. The
other is media influence – the type and amount of media coverage
given to the airline, its corporate image, its advertisements.

Notes Hopefully, customers always expect and receive an excellent
ES
Activity
___________________ standard of customer service from an airline. This benefits both
Write an article on customer-
driven airline. parties. As the old Scottish proverb goes, “Looking after your
___________________
customers is not merely good manners - it’s good business too.”
___________________

___________________ 1. Customer expectations are ………………. held by

customers towards a company.
___________________
___________________ 2. In practice, the customer’s expectations of service are

likely to have been ………………. - either positively or
___________________
negatively.
___________________
UP Customer-Driven Airline
At the start of this unit, we mentioned that successful airlines are
inevitably those with a customer focus. Such airlines could also be
described as being customer-driven. This has been defined as:
“A company that recognizes that its only true assets are satisfied
customers, all of whom expect to be treated as individuals and who
won’t select us as their airline unless we do just that.”
COMPANY PRESIDENT
VICE – PRESIDENT (S)
UPPER MANAGEMENT (e.g. Directors of Sales

and Marketing)
MIDDLE MANAGEMENT (Department Heads)
LOWER MANAGEMENT (Line Managers, Foremen)

)
OTHER STAFF (Sales, Service, Shop-floor)

(c
Wholesalers
Retailers
Customers
Figure 16.1: Typical Organisational Structure

All organizations have a structure. This structure consists of

Notes
ES
several different levels or tiers. For instance, you will generally
find the company president and vice-president(s) at the top of the ___________________
structure, followed by; upper management (e.g. marketing director,
___________________
sales director), middle management (e.g. heads of departments),
___________________
lower management (e.g. line managers, foremen) and at the
bottom, the rest of the staff. If we were to represent this structure ___________________
in diagrammatic form, it would resemble a pyramid: ___________________
This is the traditional pyramidal management structure. It is ___________________

based on rather a military-like hierarchy. This is good if the
___________________
company wants to wage war with its customers. However, this
___________________
structure does not work well in a customer-driven organization. In
a customer-driven organization, the customer is king. ___________________
___________________
UP
Figure 16.2: Customer is King
CUSTOMERS
SERVICE PROVIDERS
)
SUPERVISORS
MANAGERS
VICE – PRESIDENT (s)

(c
PRESIDENT
Figure 16.3: Typical Customer – Driven Company Pyramid

We can see the difference between the two organizational

Notes
ES
structures, one of which is only influenced indirectly by the
___________________ customer, who is remote from top management, and the other
___________________ which is responsive to the customer, who is integrated into a
flatter company structure.
___________________

___________________ 1. Customer …………………. airlines could also be
___________________ described as being customer-driven.
___________________ 2. In a customer-driven organization, the customer is

………………….
___________________
___________________
UP Summary
Customers are not dependent on the airline rather; the airline is
dependent on them. As we said earlier, customers have a choice.
They are completely free to choose to fly with another carrier, use
other means of transport or communication or simply stay at
home. If you know why the customer feels dissatisfied, you can
take steps to remedy the situation. It is also very easy to believe
that because no customers have complained that there are no
dissatisfied customers.
A company that recognizes that its only true assets are satisfied
customers, all of whom expect to be treated as individuals and who
won’t select us as their airline unless we do just that.
Lesson End Activity

Visit a franchisee of a service store and compare your expectations
)
with that of actual service received and analyse your satisfaction

from the service received.
Keywords
(c
Customer: A customer (sometimes known as a client, buyer, or

purchaser) is the recipient of a good, service, product, or idea,
obtained from a seller, vendor, or supplier for a monetary or other
valuable consideration.
External Customer: An external customer of an organization is a
customer who is not directly connected to that organization.
Internal Customer: An internal customer is a customer who is

Notes
ES
directly connected to an organization, and is usually (but not
necessarily) internal to the organization. Internal customers are ___________________
usually stakeholders, employees, or shareholders, but the ___________________
definition also encompasses creditors and external regulators.
___________________
Privilege: A special advantage, immunity, permission, right, or
___________________
benefit granted to or enjoyed by an individual, class, or caste.
___________________
Expectation: Expectation is what is considered the most likely to
___________________
happen.
___________________
___________________
1. Define customer.
___________________
2.
UP
What can be the cost of losing a customer? Is it high or low,
discuss?
3. What are the expectations that customers have from a service
provider?
4. What is the suitable organization structure for a customer
driven airline?
5. How can a service provider responds to its customer needs?
Further Readings
Books
Fojt, Martin (2006). Strategic Direction: The Airline Industry.
Emerald Group of Publishing.
Martinez, Mario, Hobbi, Bob, (2009). Building a Customer Service
)
Kossmann, Mario,(2006). Delivering Excellent Service Quality in

Aviation. Ashgate Publishing, Ltd.
(c
Web Readings
http://en.wikipedia.org/wiki/Customer
for-airports/
(c
) UP
ES
UNIT 17: Impact of Front Line Staff
Notes
ES
Activity
Write___________________
Impact of Front Line Staff an article on the impact
that front line staff has on
___________________
customer while behind the
front line.
___________________
Objectives
___________________
topics: ___________________
 Impact of Staff behind the Front-Line ___________________

 Impact of Staff on the Front-Line ___________________
___________________
Introduction
___________________
The aim of this unit is to outline the impact of front-line staff on
___________________
UP
the quality and effectiveness of customer service and consequently,
on the overall success of the airline.
Behind the Front-Line

Customers and their treatment are becoming the main focus of the
business world. The person who approaches in search of a product
or service is readily recognizable as a customer – an external one.
However, attention has also to be paid to the ‘internal customers’.
By this we mean the staff of the organization or company.
Obviously, the front-line staff who is in direct contact with the
external customer has the strongest role to play. They influence
whether or not the customer feels satisfied with the level of service
received, and consequently how he perceives the organization.
However, the service strategy must extend to the internal
customers. Internal servicing departments such as engineering,
accounts, personnel, baggage handling and management services
)
must be included in the organization’s programme of initiatives. It

is essential that staff co-operate effectively across the boundaries
which exist between departments. When each member of staff
(c
understands the needs of the different departmental co-workers,

and how well these needs should be met, this gives rise to a
cohesive spirit. All are working together with the aim of providing
the optimum standard of customer service – ‘The quality of service
provided to the customers starts with the service people inside the
organization give to each other’.
Training the Front-line Staff

Notes
ES
In order to best create a service environment, all staff should
___________________ understand the importance of effective service from induction
___________________ training onwards. Clear standards need to be highlighted and
communicated during training. Managerial and supervisory skills
___________________
are also very important and must not be neglected. Managers set
___________________
examples for their staff. Not only must managers know of the
___________________ company mission, but they must also understand how to achieve it,
___________________ and believe that it can be done. Equally, they must be able to
explain these objectives in a way which makes sense to their
___________________
people. From the company strategy, goals and mission, they need
___________________ to formulate a specific mission for their own department to strive
___________________ towards in support of the overall company aims. Supervisors while
having the same skills and knowledge as their staff, require a more
___________________
UP thorough understanding of company policy and procedures. This
allows them to provide proper support for all their staff, especially
those in contact with the customer.
However, the skills and knowledge necessary to give and maintain
a consistent service reputation may sometimes be undermined by
staff attitudes. In this instance, again, the managers and
supervisors bear much responsibility. Poor training often gives rise
to attitude problems. It is up to managers and supervisors to
recognize this and aim to resolve it.
Still greater problems can arise when staff has been taught how to
behave in theory, but see that those in supervisory or managerial
positions seem to base their behaviour on a different set of rules or
standards. Many employees follow the example of those slightly
higher up in the company. Teaching quality, without practicing it,
confuses the staff, and leads to disillusionment and lack of effort.
Managers must believe in commitment to the customer, which is
)
followed through by their actions - talking with and listening to the

customer, acting on what they learn and instilling enthusiasm in
their staff to do the same.
(c
Management and supervisors must be perceived as trustworthy by

their staff. In a situation where a problem has arisen, do staff
members feel confident that a supervisor can be approached? Or is
the ‘playing by the rules’ supervisor a less than supportive aid?
Will he represent you fairly before the management? Supervisors
need to be able to encourage development in staff, help to set
performance objectives, give feedback, advice and be viewed as

supportive. Notes
ES
___________________
Involvement of Staff
___________________
Staff involvement in continuous improvement is highly advisable.
Most people have a ‘need to achieve’, and enjoy feeling more ___________________
involved. Utilizing untapped potential serves as a boost to any staff ___________________

member, and the benefit of this is passed on to other staff and
___________________
subsequently, the customer. Those members of staff who are in
___________________
direct contact with the public are a source of great knowledge.
___________________
They know what the public wants and needs, and therefore it
seems pointless not to make use of this valuable resource. ___________________
However, it must be realized that everybody within the ___________________

organization has potential to be a customer, whatever the
___________________
UP
situation, for example, restaurant, store, hotel, and so on.
Therefore, they all know how they wish to be treated, and while
not in direct contact with customers, they are an important source
of ideas.
Ideas and Opinions

Advice and suggestions should be sought, whether by means of a
suggestion box, or at regular meetings, or any mechanism which is
appropriate for receiving improvements put forward by staff. When
management seeks a suggestion, and more importantly, acts on it,
the member of staff directly responsible feels as though he is
viewed as more than just a ‘cog in the machine’. All staff members
realize that their opinions and ideas are worthwhile, and that
management is not simply making token gestures. Staff morale
increases and much company spirit and co-operation are forged. A
company must be careful, however, not to raise staff expectations
by asking for their opinions and comments too often. A firm must
)
be prepared to follow through on the comments made.
Effective Customer Service

(c
Customer service does not just involve the people who deal directly
with the customers. People who work in support areas (‘backroom
people’) may easily lose sight of the need to meet customer
expectations every time. But if support staff is not customer
focused, it becomes impossible for front-line people to be totally
effective customer service providers. Front-line people need the
same standard of service from support staff as customers need
from the company as a whole. The point to remember is ‘If you’re

Notes not serving the customer then you’d better be serving someone who
ES
Activity
___________________
Prepare a presentation on the is’.
impact of front line staff while
___________________
remaining on the front line. Check Your Progress
___________________
Fill in the blanks:
___________________
1. Poor training often gives rise to ..………………..
___________________ problems.
___________________
2. Front-line people need the same standard of service
___________________ from ..……………….. staff as customers need from the
___________________ company as a whole.
___________________
On the Front-Line
___________________
UP In the above section, you have studied that front-line staff must be
‘highly motivated individuals’ with excellent ‘people skills’. We also
made this statement – ‘They are the ones who influence the
customer’s decision to return - or not to return’. We now add a
third point – successful airlines inevitably have a customer focus,
rather than a staff or a technical one. The strength and
effectiveness of this ‘customer focus’ is heavily reliant on the
standard and quality of customer service provided by the front-line
staff. This is not an empty statement. Front-line staff have an
extremely important and influential contribution to make to the
success of an airline. Both customers and staff are VIPs but in
different ways. The customer is a very important person. Every
member of the front-line staff in an airline, is a very influential
person, Front-line staffs are influential, because it is within their
power to do the following:
 To gain or lose customers,
)
 To convert a crisis into an opportunity,

 To create lasting and satisfying relationships the customers,
 To act in a way which drives customers to the airline’s
(c
competitors,
 To look forward to each encounter with customer, or to resent
the intrusion every time someone calls for help - each customer
contact situation should be looked upon as an opportunity, not
an interruption,
 To influence the customer to feel one of two things - either

Notes
ES
satisfaction, or displeasure, with the airline and its service,
and ___________________
 To make that all-important first impression. ___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
Figure 17.1: Customer and Staff
Many of us tend to think in terms of airplanes, offices, computer

systems, financial backing and so on, when asked to name the
resources at an airline’s disposal. We’re forgetting one very
important resource – its staff. They constitute another vital asset –
human resource – within the organization.
There are two factors which contribute to make a person as human
resource. They are:
 Activity: What they do, their behaviour.
 Talents: Knowledge and skills, (when tapped, released and
applied to serving and Satisfying the customer).
Effective front-line staffs have the ability to keep existing
customers and to encourage new ones to choose a particular airline
over the many others providing the same or similar product. On
)
the other hand, ineffective front-line people can, over time, slowly
but surely erode an airline’s customer base and decimate its
business. The secret to success on the front-line is to think of
(c
yourself as a ‘service provider’. A truly competent, confident,

effective service provider is someone who is professional - i.e. both
technically and interpersonally competent. Technical competence,
or the knowledge and skills required to physically carry out your
daily duties, does not lie within the scope of this manual, as your
airline will train you in this area. However, interpersonal
competence – the skills and knowledge required for effective

Notes communication, will be discussed later.
ES
___________________
It is extremely important to remember that the critical element in
___________________ the success of an airline is what goes on between front-line staff and
___________________ customers. This is sometimes referred to as ‘the last meter’. In
other words, despite having spent considerable amounts of money
___________________
on marketing and advertising in order to get the customer to travel
___________________ with the airline, it’s what happens in ‘the last meter’ (about 3 feet)
___________________ between the airline employee and the customer that makes all the
difference.
___________________
___________________
It is also important to recognize that there are limits realistically
speaking, it is not always possible to do what the customer wants,
___________________
but it is always possible to respond to him. In a case where the
___________________ customer does not get what he originally wanted, he may still be
UP satisfied, if he received an excellent standard of customer service:
 Customer service is being served, and
 Customer satisfaction is feeling served
It is the goal of the front-line staff to ensure that customer’s feel
served; for example, in his book, Moments of Truth, (published by
Harper & Row, Inc.), Jan Carlzon recounts a story regarding a very
important businessman, a regular customer of SAS, who was late
for his flight. He radioed from his business jet to Kennedy airport
to tell SAS that he was going to be a few minutes late for the
Stockholm flight. Although he didn’t actually ask them to hold the
flight, this was the implication. The flight was not held.
However, on arrival at the airport, he was told that he had been
booked on a KLM flight leaving half an hour later. What’s more, it
was the same type of aircraft and he had been given the same seat
number he always booked with SAS. The result was twofold. The
)
customer had no cause for complaint, and SAS had not tarnished
its reputation for punctuality. If excellent customer service were
not such a high priority for SAS, things would probably not have
(c
turned out so well.

Remember, customer loyalty only exists as long as there is no
better alternative
The point highlighted by this is that, more and more, customers
are realizing that they have a choice. The businessman could have
decided not to fly with SAS in future, had he not been so satisfied
by the outcome. The basic aim of customer service providers is to

ensure that the customer chooses their airline. Notes
ES
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Effective front-line staffs have the ability to keep
___________________
………………… customers.
___________________
2. The secret to success on the front-line is to think of
yourself as a ‘………………… provider’. ___________________
___________________
Summary ___________________
Customers and their treatment are becoming the main focus of the ___________________
business world. The person who approaches in search of a product ___________________
UP
or service is readily recognizable as a customer - an external one. .
From the company strategy, goals and mission, they need to
formulate a specific mission for their own department to strive
towards in support of the overall company aims. Managers must
believe in commitment to the customer, which is followed through
by their actions – talking with and listening to the customer,
acting on what they learn and instilling enthusiasm in their staff
to do the same.
Front-line people need the same standard of service from support
staff as customers need from the company as a whole. Every
member of the front-line staff in an airline is a very influential
person.
Lesson End Activity

Attend the training session for front line staff of an airline and
write a report on the elements of training being provided to them.
)
Keywords
(c
Service Strategy: It is a business strategy that optimizes a

company's provided services through the effort of synchronizing:
service parts and resources forecasting, service partners, workforce
technicians, and service pricing.
competencies as a result of the teaching of vocational or practical
skills and knowledge that relate to specific useful competencies.
Commitment: The state of being bound emotionally or

Notes
ES
intellectually to a course of action or to another person or persons.
___________________
Cog in the Machine: It refers to one part of a large system or
___________________
organization.
___________________
Crisis: A crisis is any event that is, or expected to lead to, an
___________________ unstable and dangerous situation affecting an individual, group,
___________________ community, or whole society.
___________________
___________________
___________________ 1. Why training is necessary for front-line staff?
___________________ 2. How does staff involvement helps in improvement of service

___________________
being provided to customers?
UP 3. What is the impact of staff on customers when they are
serving from behind the front-line?
4. Discuss the impact of front line staff while being on the front
line.
5. What is the critical element for success of an airline?
Further Readings
Books
Service Culture: The Seven Service Elements of Customer Success,
IAP
)
Web Readings
(c
http://humanresources.about.com/od/customerservice/a/serve_custo
mers.htm
for-airports/
UNIT 18: Customer Service
Notes
ES
Activity
Write___________________
Customer Service a short report on the
concept of customer service.
___________________
___________________
Objectives
___________________
topics: ___________________
 Concept of Customer Service ___________________

 Objectives of Customer Service ___________________
 Benefits of Customer Service
___________________
 Role of a Customer Service Representative
___________________
Introduction ___________________
UP
In previous units, we have discussed staff who work behind the
front-line, and staff who work on the front-line (i.e. service
providers) and their power to either keep or lose customers. Next,
we looked at the customer, the high cost to the airline of losing
him, and what his expectations of customer service are.
Lastly, we described the structural difference between a product-
driven company and a customer-driven company. We shall now
examine the concept of customer service itself.
Concept of Customer Service

Customer service can be defined as “the spectrum of activities
designed to enhance customer expectation and enjoyment of product
benefits”.
The purpose of customer service activities is to ensure that the
)
customer enjoys his experience and likes flying with the airline, so
that he will use it again in the future. The service he receives must
be friendly polite, courteous and helpful. Service providers cannot
have an ‘off-day’, as their first chance to make a good impression
(c
on the customer may also be their last. It is absolutely essential

that the customer receives a favourable impression each and every
time he has contact with the airline. Whether it is his first contact,
or his fiftieth, this still holds true.
These contact situations are commonly known as ‘moments of
truth’. They have the power to either make or break the airline’s
reputation and their importance must not be underestimated.

Notes Every time the customer has dealings with a member of the
ES
___________________ airline’s staff, he forms or consolidates his opinion as to whether or
not he is satisfied with the airline itself.
___________________
___________________ Even one unsatisfactory encounter can make him decide to switch
to another carrier. The customer often blames the airline for
___________________
problems or bad experiences in areas which are outside the
___________________ airline’s control e.g. problems with airport security or customs.
___________________ When you actually calculate just how many of these ‘moments of
___________________ truth’ occur every single day, it is clear that the necessity for an
___________________
excellent standard of customer service is vital. The following
quotation refers to SAS, but its message is equally relevant to any
___________________
airline, anywhere in the world:
___________________
UP “Last year, each of our 10 million customers came in contact with
approximately five SAS employees, and this contact lasted an
average of 15 seconds each time. Thus, SAS is “created” 50 million
times a year, 15 seconds at a time. These 50 million “moments of
truth” are the moments that ultimately determine whether SAS will
succeed or fail as a company. They are the moments when we must
prove to our customers that SAS is their best alternative.”
There are many airlines in the market place, each offering
products which are barely distinguishable to the average customer.
Very often, the only factor separating one airline from the next, in
the customer’s opinion, is the standard of customer service, or the
competitive edge we mentioned before. If this edge is to be
maintained, customer service must be first-class. Paying attention
to the customer and responding to his needs is the key to success.
Customer service is part of the overall service package, or set of
related items, which the airline offers to the customer. An example
)
of a major service provided by an airline is transport, in an aero

plane, from point A to point B. Services can be classified as being
either ‘core’ or ‘peripheral’. For example, if a member of staff is
requested to write a report, the physical appearance of the finished
(c
product, although important, is peripheral to the core, i.e. the

content. In theory, then, an airline’s customer service is peripheral
to the core service, i.e. the journey.
However, in industries such as the airline industry, where there is
little difference between core services, the customer tends to
discriminate between carriers on the basis of the peripheral
services they offer. Consequently, in today’s highly competitive

market place, the journey, which was the core, often becomes Notes
ES
peripheral to the standard of customer service offered by the ___________________
airline. Peripheral services are important in other industries, as
___________________
we shall see shortly, and are frequently a deciding factor when
customers make their final decision, for example regarding which ___________________
hotel to stay in, or which car to buy. Examples of peripheral ___________________

services which could help the customer to discriminate between
___________________
airlines include, for example:
___________________
 Providing a complimentary limousine service for first class
___________________
passengers
___________________
 Providing an in-flight telephone and facsimile service.
___________________
 Offering to buy foreign currency or loose change from
___________________

UP
international passengers on a flight home.
Allowing international passengers to eat according to their
own individual timetable.
 Allowing international passengers to choose their in-flight
meal over the phone when they ring in to confirm their
seating.
 Offering older passengers the names and telephone numbers of
medical and legal services overseas which speak their own
language.
 Using the PNR (passenger name record) file, to generate
telephone calls to international passengers’ homes, saying that
their flight had arrived safely.
 Offering video tapes to leisure travellers, containing
information which they may wish to know about travel,
customs, clothing, medication, etc. in their destination country.
)
As we mentioned earlier, peripheral services are common in other

industries, for example, the hotel and car industries. With the
former, accommodation is the ‘core’, while with the latter it is
(c
transportation. Yet, it is true to say that the standard of different

hotels and cars available can, and does, vary enormously.
So, although all hotels offer accommodation and all cars can
provide transportation, the customer does not view them all
equally. The reason for this is the same as it was for the airline
industry - “where there is little difference between core services,
the customer tends to discriminate between companies on the basis

Notes of the peripheral services they offer.”
ES
Activity
___________________
Prepare a chart on objectives For example, while two hotels on the same street charge similar
of Customer Service.
___________________ prices, and have similar bedrooms with comfortable beds,
___________________ televisions, mini-bars and bathrooms, one of them may also have a
gymnasium, while the other has not. Therefore, a customer who
___________________
likes to continue his fitness routine while abroad will probably
___________________ choose the hotel which has a gym over the hotel which has none.
___________________ He has made his decision on the basis of a peripheral feature,
rather than on the core. Similarly, a customer may be trying to
___________________
decide which new car to buy. He has eliminated various models
___________________
and makes, until he is down to a choice between one of two cars,
___________________ which are almost identical in price and size. Being a music lover,
___________________ he may base his final choice on the standard of the in-car sound
UP system. Again, the final choice is based on a peripheral feature,
rather than on the core.
The airline industry could easily be described as being highly
technical. It relies on technological systems, procedures, facilities
and equipment in order to function. It would be very easy to let the
technology take over. This cannot be allowed to happen in any
airline which strives to have a customer focus - do not let
technology rule.
Check Your Progress

Fill in the blanks:
1. The airline industry could easily be described as being
highly …………………..
2. Even one ………………….. encounter can make
customer decide to switch to another carrier.
)
Objectives of Customer Service

The nature of customer service means that its objectives are very
(c
concise and can be condensed as follows:

 To create a favourable impression of the airline, so that the
customer will be happy to travel with the airline again,
 To ensure maximum customer satisfaction at every stage of
contact with the airline and its representatives,
 To make sure that the customer is aware of the benefits of

Notes
ES
flying with your airline, as opposed to some other carrier. Activity
Customer service helps to ‘sell’ the airline, and ___________________
Prepare a slideshow of
benefits of customer service.
 To add to airline revenue by providing a standard of customer ___________________
service which is so high that it helps to keep existing ___________________

customers and to attract new ones.
___________________
You will have noticed that, of the four objectives listed, three ___________________
pertain to the customer, and only one directly to the airline. This is
___________________
the mark of a customer-driven company, where the customer is
recognized as the lifeblood of the organization. If the customer is ___________________
not satisfied by the quality of customer service, he might well ___________________

exercise his freedom to choose a different airline. The purpose of
___________________
customer service is to ensure that this does not happen.
___________________
Fill in the blanks:

UP
Check Your Progress
1. Customer service helps to ‘………………..’ the airline.

2. If the customer is not satisfied by the quality of
customer service, he might well exercise his
…………………… to choose a different airline.
Benefits of Customer Service

Excellent customer service provides benefits for both the airline
and the customer. A high standard and quality of service is, of
course, one of the primary benefits which the customer expects
when he deals with the airline. This is not a tangible benefit - good
customer service is not something which can be touched. Rather, it
is psychological or emotional. It aims to make the customer feel
happy, and confident that his needs have been responded to.
)
Remember service providers should ensure that the customer feels

served. It is said that people buy only two things good feelings and
solutions. A maker of drills said: “We don’t sell drills. We sell
(c
holes”.
Having said all that, the ways in which customer service benefits
the customer, psychologically and emotionally, are very hard to
quantify. Such benefits are perceived on the basis of a highly
varied and complex set of values. Some of these values are more or
less universal, while some are extremely personal, and differ from
customer to customer. For example, customer A might only feel

Notes happy if staffs always remember his name without being
ES
Activity
___________________
Write an article on the role reminded, whereas customer B might be quite happy to remind
of a customer service staff of his name whenever he is asked.
___________________
representative.
___________________ The psychological benefits of providing good customer service can

also be felt by front-line staff. Poor service will inevitably fail to
___________________
elicit positive feedback from the customer, who can become angry if
___________________ he feels he is being badly treated. The customer is not alone in
___________________ feeling the effects of bad service - the morale and emotional
wellbeing of front-line staff will suffer too. In an environment
___________________
where a high standard of customer service is fostered and
___________________
encouraged, good customer relations will result. This benefits
___________________ front-line staff by making their jobs more enjoyable on a day-to-day
___________________ basis.
UP On a larger scale, a high standard of customer service benefits not
only the customer and the front-line staff, but also the airline as a
whole. The quality of customer service is directly related to the
future survival, growth and financial prosperity of the carrier.
Once more we encounter the ever-present concept of choice. If poor
quality service drives customers to choose another airline, profits
will suffer.
In conclusion, then, it is clear that those airlines who will succeed
are the ones who have moved with the times and recognize the
power of the customer. They will do this by providing the highest
standards of customer service, not most of the time, but all the
time. Standards, once set, cannot be allowed to drop. It is a
challenge which must be successfully met every day.
Check Your Progress

Fill in the blanks:
)
1. The quality of customer service is directly related to the

future ………………...
2. Excellent customer service provides ………………... for
(c
both the airline and the customer.
Role of a Customer Service Representative

As a Customer Service Representative, you are the brand
ambassador of the company and a direct point of contact for the
company’s customers. All customer service representatives interact
with customers to provide information in response to enquiries

about products or services or to handle and resolve complaints. Notes
ES
They communicate with customers through a variety of means—by ___________________
telephone, by e-mail, fax, or in person. Most customer service
___________________
representatives use computers and telephones extensively in their
work. ___________________
Listed below are some of the responsibilities that a Customer ___________________
Service Representative takes on: ___________________
 Confers with customers to provide information about products ___________________

and services, ___________________
 Takes orders or cancels orders, ___________________
 Obtains details of complaints, ___________________
Keeps records of customer interactions and transactions, ___________________



UP
Records details of enquiries and action taken,
 Resolves customers' complaints,
 Contacts customers to respond to inquiries,
 Refers unresolved customer grievances to designated,
 departments for further investigation,
 Prepares change of address records,
 Solicits sale of new or additional services or products, and
 Assists a customer to solve technical problems related to the
products/services.
To be an effective Customer Service Representative you would
need to be a good communicator with good interpersonal skills. A
positive attitude and a commitment to help can take a customer
service representative very far. Efficient and memorable customer
)
care requires credibility, accessibility, reliability and excellence

(CARE) in service. A thorough knowledge of the product and
systems in your organisation helps you address the concerns and
(c
queries of the customers. The bottom line is that as a Customer

Service Representative you represent the organisation and are
responsible for helping the customer satisfy his wants or needs
efficiently and in a timely manner.
We will look at the role of Customer Service Representative in
BPO and related industries in the following unit.
ES
___________________ 1. ………………….. and memorable customer care requires
___________________ credibility, accessibility, reliability and excellence
(CARE) in service.
___________________
2. Most customer service ………………….. use computers
___________________
and telephones extensively in their work.
___________________
___________________
Summary
___________________
Customer service provides a psychological or emotional benefit to
___________________ the customer - it aims to make him feel happy, and confident that
___________________ his needs have been responded to. Front-line staff can also feel the
UP psychological benefits of providing good customer service. Poor
service will inevitably fail to elicit positive feedback from the
customer.
Where a poor standard exists, the morale and emotional wellbeing
of front-line staff will suffer. When a high standard exists, their
jobs will be more enjoyable on a day-to-day basis.
On a larger scale, a high standard of customer service also benefits
the airline as a whole. The quality of customer service is directly
related to the future survival, growth and financial prosperity of
the carrier. If poor quality service drives customers to choose
another airline, profits will suffer.
Lesson End Activity

Discuss within your group the responsibilities of a customer
service representative.
)
Keywords
Customer Service Representative: The brand ambassador of the
(c
company and a direct point of contact for the company’s customers.
Customer Service: The provision of service to customers before,

during and after a purchase.
Moments of Truth: In customer service, instance of contact or
interaction between a customer and a firm (through a product,
sales force, or visit) that gives the customer an opportunity to

form (or change) an impression about the firm. Notes
ES
___________________
1. What is customer service? ___________________
2. What are the objectives of customer service? ___________________
3. Discuss the benefits of customer service. ___________________
___________________
4. What is the role of a customer service representative in
providing service to customers? ___________________
5. Explain the concept of CARE. ___________________
___________________
Further Readings ___________________
Books
UP
IAP
Aviation. Ashgate Publishing Ltd.
Web Readings
http://www.ehow.com/about_5439213_objective-customer-
service.html
http://businesscasestudies.co.uk/morrisons/developing-competitive-
advantage-through-customer-service/the-benefits-of-customer-
)
service.html#axzz2PrMheJ48
(c
(c
) UP
ES
UNIT 19: CRM in Services
Notes
ES
___________________
CRM in Services ___________________
___________________
Objectives
___________________
topics: ___________________
 Customer Retention through Relationship Marketing ___________________

 Components of CRM ___________________
 Steps of CRM
___________________
 CRM Business Cycle
___________________
 Airport Excellent Customer Service
___________________
Introduction
UP
Management is a broader concept than marketing, because it
covers marketing management, manufacturing management,
human resource management, service management, sales
management, and research and development management. Thus,
CRM requires organizational and business level approaches –
which are customer-centric – for doing business rather than simply
a marketing strategy. CRM involves all of the corporate functions
(marketing, manufacturing, customer services, field sales and field
service) required to contact customers directly or indirectly. The
term “touch points” is used in CRM to refer to the many ways in
which customers and firms interact.
CRM is a business strategy that goes beyond increasing
transaction volume.
Its objectives are to increase profitability, revenue, and customer
)
satisfaction. To achieve CRM, a company-wide set of tools,

technologies, and procedures promote the relationship with the
customer to increase sales. Thus, CRM is primarily a strategic
(c
business and process issue rather than a technical issue. In this

unit, you are going to learn various aspects of CRM of a service
firm. In this unit, you will also be introduced to some of the CRM
strategies used by service firms.
Customer Retention through Relationship Marketing

Notes
ES
Activity
For a service firm, its marketing philosophy should be:
___________________
customer retention through  To acquire customers
___________________
relationship management.
___________________  To retain customers
___________________  To do business with only profitable customers.
___________________ THEORY OF LEAKING BUCKETS
___________________ SERVICE SERVICE

COMPANY ‘A’ COMPANY ‘B’
___________________
10% New
___________________ Customers
every year
___________________
___________________
UP 5% loss of
Customers
95% Retention
10% loss of
Customers
90% Retention
Rate Rate
AFTER 14 YEARS:
SERVICE FIRM SERVICE FIRM
‘A’ ‘B’
DOUBLES ITS HAS THE SAME
CUSTOMER BASE CUSTOMER BASE
Figure 19.1: Leaking Bucket Theory
It is more expensive to acquire customers than retain customers.

But customer retention becomes a challenge in the era of
heightened competition and decreasing customer loyalty. Various
researches point out to the fact that customer acquisition is five to
ten times more expensive than customer retention.
The above diagram explains the leaking bucket theory that all
things being equal (firm size, service offer, rate of customer
)
acquisition, etc.), a firm, which has half the customer leakage than
its rival, will have double the market base in fourteen years. Or
putting it in a different way, if two service firms intend to have the
(c
same market base but have different customer retention

capabilities, they will require different customer acquisition rate or
volume. The service firm with better customer retention will need
to acquire fewer customers than its rival, suffering less cost and –
at the same time fine-tuning to focus on high transaction, high
profitability, and low-maintenance cost clientele. It underlines the
importance of relationship marketing in such an intangible area as

services. Notes
ES
It would be very difficult and impracticable for a service firm to be ___________________
all things to all people; instead, it should concentrate on those ___________________
customers who yield maximum profits, by giving them maximum
___________________
customer satisfaction. This segmentation will help the service firm
optimize its limited resources and get better return on capital ___________________
employed (ROCE). To survive and prosper in the service business, ___________________

the firm has to map its competencies and capabilities, target ___________________
profitable customers, and work hard at retaining them.
___________________
Customer retention makes business sense. There are evidences
___________________
through various researches that there is a very strong relationship
between customer satisfaction and profitability, just as there is ___________________
between customer retention (in other words, customer loyalty) and ___________________
UP
profitability. This is explained in a model called the service-profit
chain.
The Service-Profit Chain Model

The ‘service-profit chain’ model is based on the following seven
theorems:
1. Profit and growth are linked to customer loyalty.
2. Customer loyalty is linked to customer satisfaction.
3. Customer satisfaction is linked to service value.
Profit and
growth
Customer
loyalty
)
Customer
satisfaction
Service
value
Employee
(c
productivity
Employee
loyalty
Employee
satisfaction
Internal quality of work life

(internalising the firm’s brand)
Figure 19.2: The Service Profit Chain

4. Service value is linked to employee productivity.

Notes
ES
Activity
5. Employee productivity is linked to employee loyalty.
___________________
Prepare a chart on the
components of CRM. 6. Employee loyalty is linked to employee satisfaction.
___________________
___________________
7. Employee satisfaction is linked to internal quality of work life
(internalizing the firm’s brand).
___________________
The service-profit chain model has certain limitations that need to
___________________
be considered before adopting it wholeheartedly. The limitations of
___________________ this model are:
___________________
 Relationship between satisfaction and loyalty is not always
___________________ linear.
___________________  The relationship depends on the type of industry. Where the
___________________ choices for the customer are very high, the relationship is very
UP strong and customer migration is possible; in monopolistic
competition (utilities, public transportation, government/
public service, etc.), the relationship is weak.
Check Your Progress

State True or False:
1. A service firm should look to acquire and retain
customers.
2. It is more expensive to retain customers than acquire
customers.
3. The service firm with better customer retention will
need to acquire fewer customers than its rival.
Components of CRM
CRM consists of three discrete components:
)
 Customer,
 Relationship, and
(c
 Management.
CRM tries to achieve a ‘single integrated view of customers’ and a
‘customer-centric approach’ by judiciously blending these three
factors.
Customer
Notes
ES
The customer is the only source of the company’s present profit
and future growth. However, a good customer, who provides more ___________________
profit with less resource, is always scarce because customers are ___________________
knowledgeable and the competition is fierce. Sometimes it is
___________________
difficult to distinguish who is the real customer because the buying
decision is frequently a collaborative activity among participants of ___________________
the decision-making process. Information technologies can provide ___________________

the abilities to distinguish and manage customers. CRM can be
___________________
thought of as a marketing approach that is based on customer
___________________
information.
___________________
Relationship
___________________
The relationship between a company and its customers involves
___________________
UP
continuous bi-directional communication and interaction. The
relationship can be short-term or long-term, continuous or discrete,
and repeating or one-time. Relationship can be attitudinal or
behavioural. Even though customers have a positive attitude
towards the company and its products, their buying behaviour is
highly situational.
CRM involves managing this relationship so that it is profitable
and mutually beneficial. Customer lifetime value (CLV) is a tool for
measuring this relationship.
Management
CRM is not an activity only within a marketing department.
Rather it involves continuous corporate change in culture and
processes. The customer information collected is transformed into
corporate knowledge that leads to activities that take advantage of
the information and of market opportunities. CRM requires a
)
comprehensive change in the organization and its people.
Check Your Progress

Fill in the blanks:
(c
1. The relationship between a company and its customers

involves continuous bi-directional communication and
……………………
2. Customer ………………… value is a tool for measuring
this relationship.
Steps of CRM
Notes
ES
Activity
CRM extends itself from customer acquisition to customer
___________________
Prepare a chart on the steps
of CRM. retention to customer delight. The important steps have being
___________________ discussed below:
___________________
Identifying the Right Customer
___________________
The key here is right customer segmentation. Many marketers
___________________
have failed to realize that the old models and theories
___________________ of segmentation have to be changed dramatically. The
___________________ segmentation criteria need to change from conventional
demographic/psychographic segmentation to need-based
___________________
behavioural segmentation.
___________________
This will lead to the right definition of the right target customer.
___________________
UP This paradigm shift in segmentation criteria is needed because the
conventional segmentation criteria are losing their relevance with
the evolution of the customer. Consumer behavioural variables are
more relevant and actionable and can help in the right targeting.
Hence marketers can develop sustainable business models and can
differentiate themselves from others by using high-level consumer
behavioural variables.
Retaining the Right Customer

It is very important to measure customer profitability. ROC
(return on customers) should be calculated on at least three
dimensions: frequency of customer purchases, value per
transaction and profitability.
Customers who are low on all three dimensions need least focus,
whereas customers scoring high on all the three need maximum
focus. The customers lying between the two extremes need to be
carefully analyzed to decide the degree of focus required for each of
)
the segments.
Marketers need to lay down systems and processes (which can be
very simple formats and not necessarily require capital-intensive
(c
ERP systems) to keep track of these dimensions. Identification and

sizing of these clusters can help develop the right strategies for
each customer group.
Delighting the Customer

Many marketers lose bottom-line focus in their efforts to please the
customer and may inadvertently erode business profitability.
Marketers need to develop strong value propositions in terms of

better products and better services so that strategies are not only Notes
ES
Activity
customer-centric but also lead to high profitability. Pleasing the Prepare a slideshow on CRM
___________________
customers should not be at the cost of hurting the company’s business cycle.
___________________
bottom line.
___________________
Fill in the blanks:
___________________
1. Many marketers lose ……………….. focus in their ___________________
efforts to please the customer.
___________________
2. Consumer behavioural ………………….. are more
___________________
relevant and actionable.
___________________
CRM Business Cycle ___________________

UP
Following are the components of a CRM business cycle:
Acquisition and Retaining

Acquisition is a vital stage in building customer relationship. For
the purpose of customer acquisition, an organization is likely to
focus its attention on prospects, enquiries, lapsed customers,
former customers, competitor’s customers’ referrals and the
existing buyers.
From these, the organizations need to acquire customers and
prospective customers and retain valuable customers.
Understand and Differentiate

Organizations cannot have a relationship with customers unless
they understand them, find out what they value, what types of
services are important to them, how and when they like to interact
)
and what they want to buy. True understanding is based on a

combination of detailed analysis and interaction.
Several activities are important:
(c
 Profiling to understand demographics, purchase patterns and

channel preference.
 Segmentation to identify logical unique groups of customers
that tend to look alike and behave in a similar fashion. While
the promise of one-one marketing sounds good, not many
organizations have mastered the art of treating each customer
uniquely. Identification of actionable segments is a practical

Notes place to start.
ES
Activity
___________________
Write an article on airport  Primary research to capture needs and attitudes.
excellent customer service.
___________________
 Customer valuation to understand profitability, as well as
___________________ lifetime value or long-term potential. Value may also be based
___________________ on the customer’s ability or inclination to refer other profitable
customers.
___________________
Customers need to see that the company is differentiating between
___________________
service and communications based on what they have learned
___________________
independently and on what the customers have told them.
___________________
Develop and Customize
___________________
In the product-focused world of yesterday, companies developed
___________________
UP products and services and expected customers to buy them. In a
customer-focused world, product and channel development have to
follow the customer’s lead. Organizations are increasingly
developing products and services, and even new channels based on
customer needs and service expectations.
Interact and Deliver

Interaction is also a critical component of a successful CRM
initiative. It is important to remember that interaction does not
just occur through marketing and sales channels and media;
customers interact in many different ways with many different
areas of the organization, including distribution and shipping,
customer service and online. With access to information and
appropriate training, organizations will be prepared to steadily
increase the value they deliver to customers.
Check Your Progress

)
Fill in the blanks:

1. ……………….... is a critical component of a successful
CRM initiative.
(c
2. Organizations cannot have a relationship with

……………….. unless they understand them.
Airport Excellent Customer Service

Excellent Customer Service has finally become a top priority of
airport management today. Evidence of this is demonstrated by
conferences such as the ACI-NA Customer Service Seminar being

held in Denver. Notes
ES
Excellent Customer Service needs to be focused on your airport’s ___________________
ability to exceed the needs and expectations of your passengers (or ___________________
customers). It is this ability to consistently match its customers’
___________________
perception that their needs and expectations that will differentiate
your airport from your competitors. ___________________
___________________
Excellent Customer Service is crucial to your ability to target
strategic growth opportunities. You’ll be able to compete and win ___________________
beyond price, features and specifications. Furthermore it improves ___________________
your bottom line by reducing waste and unnecessary costs when
___________________
you focus on actions that generate value for your customers.
___________________
Excellent customer service is a particular challenge for airports.
___________________
UP
Although airports are responsible for the delivery of services
within the entire airport campus, the customer often holds the
airport accountable for the level of service, even though it could be
another service provider related issue. Recognizing this reality,
airports must provide an airport-wide approach to customer
service training for all airport employees, as well as for tenants
and other service providers. Excellent customer service is the key
driver to achieving the benefits that global service brands
regularly enjoy.
In our view, airports need to consider a Passenger Experience
Index as the "Passenger First" starting point to create a customer
services framework. This encompasses the complex service delivery
at the many airport touch points, data collection and flow and
related stakeholders.
Excellent customer service begins with a champion to step back to
gain an holistic overview of the airport’s organizational processes,
)
and to bridge the silo’s and guide stakeholders to the necessary

stages to move from being airport centred to one of being customer-
centric.
(c
Excellent customer service results in enhanced customer

experiences, improved airport brand, increased non-aeronautical
and retail revenues, and growing customer loyalty.
What's really needed is a Customer Service MasterClass to help
airport leaders at all levels to develop existing leadership skills
and move your airport organization forward to establish a
customer-focused environment.
ES
___________________ 1. Excellent customer service is a particular
___________________ …………………. for airports.
___________________ 2. Excellent customer service is the key driver to achieve

the …………….. that global service brands regularly
___________________
enjoy.
___________________
___________________
Summary
___________________
CRM is a business strategy that goes beyond increasing
___________________ transaction volume. Its objectives are to increase profitability,
___________________ revenue, and customer satisfaction. To achieve CRM, a company-
UP wide set of tools, technologies, and procedures promote the
relationship with the customer to increase sales.
It is more expensive to acquire customers than retain customers.
But customer retention becomes a challenge in the era of
heightened competition and decreasing customer loyalty. Various
researches point out to the fact that customer acquisition is five to
ten times more expensive than customer retention.
CRM consists of three components: customer, relationship and
management. The customer is the only source of the company’s
present profit and future growth. The relationship between a
company and its customers involves continuous bi-directional
communication and interaction. The relationship can be short-term
or long-term, continuous or discrete, and repeating or one-time.
CRM is not an activity only within a marketing department.
Rather it involves continuous corporate change in culture and
processes. The customer information collected is transformed into
)
corporate knowledge that leads to activities that take advantage of

the information and of market opportunities. CRM business cycle
consists of four stages: acquisition and retaining, understand and
(c
differentiate, develop and customize, and interact and deliver.
Lesson End Activity

Discuss within your group the guidelines you would give to front
line staff as a CRM executive.
Keywords
Notes
ES
Conformance: Delivery quality meeting design standards.
___________________
CRM: Managing of prospects all the way through the entire sales
___________________
process and after.
___________________
Customer Lifetime Value: The profitability of a customer over
the period of a business relationship; can include multiple ___________________
transactions and purchases. ___________________
Customer Relationship Analytics: Set of tools to perform ___________________

reporting, analysis and data mining. ___________________
ERP: ERP helps a manufacturer or other business manage the ___________________

important parts of its business.
___________________
Return on Capital Employed: This establishes the relationship ___________________
UP
between the profit and the capital employed.
Service Profit Chain: SPL measures relationship between
loyalty, satisfaction and profitability.

1. “CRM is a business strategy that goes beyond increasing
transaction volume.” Comment.
2. “It is far cheaper to retain and satisfy one’s current customers
than to acquire new ones.” Why?
3. What are the major drivers for the airline industry to go in for
CRM system?
4. Describe the CRM business cycle.
5. What do you mean by excellent customer service at airport?
)
Further Readings
Books
(c
Fojt, Martin, (2006), Strategic Direction: The Airline Industry,

IAP

Notes
ES
___________________
___________________ Web Readings

___________________ http://www.airgatesolutions.com/index.php?option=com_content&v
iew=article&id=175:airport-excellent-customer-
___________________
service&catid=1:latest-news&Itemid=89
___________________
http://www.mckinseyquarterly.com/Marketing/Sectors_Regions/CR
___________________
M_in_the_air_1211
___________________
___________________
___________________
___________________
) UP
(c
UNIT 20: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
___________________
Case Study: How Social Media is Enhancing Airport Customer
Service ___________________
___________________
Customer service, guest relations, passenger experience; No
matter what your specific airport calls it, it is a major component ___________________
of airport operations. This segment of this Simpli-Airports Series
focuses on Customer Service and how your airport can benchmark ___________________
UP
against what others are doing in the social space and use that
information as a guidepost for future social growth.
While more than half of the airports surveyed for the recent
SimpliFlying Social Media Outlook Report are unsure about the
specific return from their social media investment, most airports
have mapped the value of their social media performance to
business goals. The top goals were Brand Engagement, Customer
Service and Revenue.
92.7% of the airports surveyed noted that Customer service is a
prominent business driver when it comes to social media.
The biggest challenge faced by airports surveyed for in the
aforementioned study is the insufficient allocation of resources to
social media. The next biggest challenge is the lack of budget,
which often goes hand-in-hand. So how does an airport that is
aiming to increase customer service through social media obtain
that goal when resources are seemingly lacking?
Resource Identification + Allocation = Social Customer Service
Some of the airports that are currently dedicating resources to
social media with a focus on customer service include the
Portland International Airport (PDX, Portland, OR) and the
)
Toronto Pearson International Airport (YYZ, Toronto, ON). Both

have taken customer service and social media to a new level with
call centres and guest service stations filled with trained and
dedicated ”Tweeters.” These airports are working to train
(c
(current) guest relations and call centre staff to respond real-time

to customer service issues that come in through the Twitter
channel, just as they would to a call from a guest on the phone.
These two airports represent a sampling of ways in which social
customer service is finding its way into airports of all sizes and
how airport are using existing resources to meet these social
customer service needs and goals.
Are traditional airport call centres becoming a need of the past?
As more and more travellers begin to Tweet, Facebook, and post
Contd….
recommendations and questions on social channels, more and

Notes more airports are beginning to take up the responsibility of
ES
responding to Tweets just as they would to phone calls. In this
___________________ Simpli-Airports segment, we will be exploring a case study
specific to the Port of Portland/Portland International Airport.
___________________
Simpli-Airports Series: PDX Social Customer Service
___________________
After working with a few airports on integrating social media
___________________ (namely Twitter) into their customer service response plans, I was
quite intrigued to hear Donna Prigmore from the Port of Portland
___________________ and PDX Airport speak at the recent AAAE Social Media Summit.
___________________ Donna Prigmore shared how the Portland International Airport
launched an airport Twitter program after hearing of the affects
___________________ of the Lambert – St. Louis International Airport Tornado. In the
midst of this crisis, Lambert – St. Louis’s airport Twitter handle
___________________
grew by over 4000 followers in just one hour. Mobile phones were
___________________ the only way for people to communicate with the airport, and
many travellers and loved ones went right to Twitter. This
___________________ prompted Prigmore and her team to work develop a system and
UP program for a fully functioning “Tweeting Call Centre.”
Since that time, Donna and her staff have turned a 14 member
customer relations department into a “Tweeting call centre” with
real-time coverage from 6am-11:30pm daily. The attached case
study showcases the way in which they have structured and
defined how and when Twitter is used within their organizational
structure and what the protocols are for responses.
With the implementation of Twitter assessment tests, she was
able to both train and test all of her staff for Twitter competency
and know-how (as well as interest). Ten of the 14 call centre staff
members Tweet, with shifts set up to include one Twitter “Lead”
and one “backup” to monitor and respond to customer service
tweets as they come in. This team setup has Donna’s team
Tweeting with the expectation that the typical airport Tweeter is
expecting an immediate response. The team has a goal of 5-10
minute response times.
Questions:
)
Source: http://simpliflying.com/2012/case-study-how-social-media-is-enhancing-airport-
customer-service/
(c
UNIT 21: Dealing with Complaints
Notes
ES
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
UP
BLOCK-V
)
(c
Detailed Contents
Notes
ES
UNIT 21: DEALING WITH COMPLAINTS
___________________ UNIT 23: AIRPORT SHOPPING
 Introduction  Introduction
___________________
 Just Cause for Complaint  Non-aviation Business
___________________
 Lack of Complaints: A Good Thing?  Rising Expectations for Shop Owners
___________________
 Why Do Customers Complain?  Airport Business Model
___________________
 The Complaints System
___________________ UNIT 24: AIRPORT SECURITY
 Why do Airports need Customer Complaints?
 Introduction
___________________
UNIT 22: BRANDING STRATEGY FOR CUSTOMER  History of Airport Security
___________________
SERVICE AT AIRPORTS
 Meaning of Airport Security
 ___________________
Introduction
 Airport Security in India
 Excellent Customer Service and Branding Mean for
___________________

Airports
UP
Can more ‘Typical’ Airports Really Establish a
Unique Brand?


Security at Commercial Service Airports
Future of Airport Security
UNIT 25: CASE STUDY

 Role of Airport Standards in Providing Excellent
Customer Service
 How can Airports ‘Stay on brand’?

)
(c
Notes
ES
Activity
___________________
Dealing with Complaints Write an article on just cause
for complaint.
___________________
___________________
Objectives
___________________
topics: ___________________
 Just Cause for Complaint ___________________

 Lack of Complaints: A Good Thing
___________________
 Why Do Customers Complain?
___________________
 The Complaints System
 Why do Airports need Customer Complaints? ___________________
___________________
Introduction
UP
The aim of this unit is to discuss the handling of complaints in a
quality service environment.
Just Cause for Complaint

For an organization to be truly committed to total quality
management, a proper service strategy is essential. The main
objectives of a service strategy are the creation of a difference
which is wholly observable and measurable by customers, and the
generation of a real impact on procedures within the company. It
defines both the internal culture, and the intended external image
in the market place, while also incorporating markets, technology,
and profit objectives and so on. Customers’ needs and expectations,
competitors’ activities, and a vision of the future are the key
elements included. Having carried out customer research and an
)
analysis of competitors, developing a vision for the future is then

possible.
What is known as a ‘mission statement’ is a necessary starting
point for preparing a service strategy. This mission statement
(c
gives specific information about the nature, content, and purpose

of the initiatives necessary to produce an improvement in service
performance. Outstanding service is not stumbled upon; it is
achieved as a result of envisioned success. The key values to which
the organization aspires are communicated and understood by all
members of staff. Consequently, objectives and targets are clear to
every staff member, and in-built in their service actions. If this is

Notes not so, the mission statement becomes a mockery, and may result
ES
___________________ in the organization reverting to the state of affairs which prevailed
before the service strategy began.
___________________
___________________ The mission statement can be interpreted as uncovering the

attitude and philosophy within an organization toward its products
___________________
and services, marketplace and customers, technology, survival,
___________________ growth and profitability, self-concept and desired public image. It
___________________ is also useful within a marketing context. It offers a challenge to
customers, competitors, and the internal community (all staff) to
___________________
judge the organization by its own clearly stated values.
___________________
Most airlines’ establish a customer charter. A charter is ‘any
___________________
formal writing in evidence of a grant, contract, or other
___________________ transactions, conferring or confirming titles, rights, or privileges,
UP or the like.’ That is to say, the charter outlines what the company
promises to deliver to the customer. In light of such promises, a
customer is justified in complaining if he considers that a promise
has not been fulfilled. In anticipation of complaints, an
organization also draws up a statement outlining the parameters
for cause for complaint.
As a service provider, it is essential to understand company policy.
Unless you know what actually qualifies as a legitimate complaint,
it is difficult to competently attend to a customer. When you are
approached by a customer who tells you that he was subjected to
the most insulting behaviour he has ever experienced, obviously
there is a problem. Having gained more information, the problem
now appears to be of a different nature. While the customer was
being served, he behaved in a racially discriminatory manner
toward the staff member. When it became apparent that the staff
member would not retaliate (all the while continuing with the task
)
at hand), the customer grew angry. He subsequently complained.

It is true to say that the customer may not always be right. Keep
this in mind and gather as many details of the situation as
possible, to fully assess what occurred.
(c
Generally speaking, complaints on the basis of gender, race, creed

or colour are not considered legitimate, and company policy would
clarify this. Problems such as customers being disgruntled at
having to sit beside someone who snores are not included in the
charter either. However, regret at this occurrence can still be
expressed. If a meal which is supposed to be hot is served cold, or a
member of staff has been less than courteous in dealing with a

customer, there is reason for complaint. Problems with service, Notes
ES
Activity
product, and personnel (all dependent on the full details) are ___________________
legitimate complaints. Lack of Complaints: A Good
___________________
Thing?
Knowing what constitutes a legitimate complaint has to be
___________________
supported by your understanding of how it is to be handled, and
what compensation, if necessary, company policy offers. Is there a ___________________
special department for dealing with complaints? If not, where are ___________________
complaints dealt with? How are they recorded and processed? Does ___________________
your organization have clear guidelines for the principle areas of
___________________
complaint? And what is the policy with regard to compensation,
replacement, and authority levels possessed by each member of ___________________
staff? ___________________
Offering your regret to the customer that he has been ___________________

UP
inconvenienced, is of little value if he feels justified in seeking
redress. How would you react if you had contracted food poisoning
on the flight, spent your holiday in hospital, and incurred large
medical bills, only to receive an expression of regret, and nothing
more from the airline? Such extreme cases must be handled with
special care, although all legitimate complaints must be treated
respectfully.
Check Your Progress

Fill in the blanks:
1. Offering your regret to the customer that he has been
…………………, is of little value if he feels justified in
seeking redress.
2. Most airlines establish a customer …………………
Lack of Complaints: A Good Thing?

)
Complaints are a sign of failure - your bid to satisfy the customer

has been unsuccessful. The logical conclusion is that you should
(c
achieve complete perfection, thus eliminating any cause for

complaint. No complaint equals a perfect business.
Right?
Not quite.
Perfection is difficult to achieve. No matter how good your
company is, there will always be failure of some kind, always
something to provoke complaint. Complaints have always been

Notes treated with dread, when in fact; it is through them that you can
ES
___________________ aim for perfection in a much more enlightened manner. Rather
than being regarded as failure, complaints should be viewed as a
___________________
chance to right what is wrong.
___________________
Once you are aware of the problems which exist, from the
___________________
customer’s point of view, you can attend to, and learn from them.
___________________ The pivotal point in the preceding sentence is ‘from the customer’s
___________________ point of view’. Without input from customers every organization is
speculating as to what is expected of its product or service.
___________________
___________________
Management may consider clean washroom facilities on airplanes
to be of major importance. From the customer’s perspective
___________________
cleanliness is taken for granted. It is only when this standard is
___________________ neglected that complaints result. Therefore, if your organization is
UP to close the gap between how it thinks it is perceived, and how it is
actually perceived by the customer, it is essential that attention is
paid to what the customer is telling you. Complaints are an
invaluable insight into customer perception of your service
package, and must be treated as such. Ignore them at your peril!
Faults, as perceived by the customer, determine the number of
complaints generated. However, there is another, often overlooked
factor - the manner in which the customer expects complaints to be
handled. Are complaints acknowledged and responded to, or is
there a tendency to ignore them? If complaints are poorly handled
the customer is likely to go elsewhere next time - you obviously do
not care enough to make him wish to return! Are there long,
complicated forms to be completed, does the customer feel as
though he should never have complained, does he feel that his
grievance is being treated with suspicion? If you were on the
receiving end of this treatment, would you honestly return for
)
more of the same in the future?

In many cultures there is a tendency to avoid complaining. Where
this holds true, the majority of people hate to come forward with
(c
their grievances. They usually regard it as ‘creating a fuss’. Rather

than generate such a ‘fuss’, the average customer tends to keep
quiet, and think “I’m never coming here again”, taking his business
elsewhere. The company in question may also lose the custom of
his friends, when they hear about the poor treatment he received.
Think what happens when you are treated badly: do you usually
complain to the problem-generating person or organization?

Possibly not. The same goes for many of your customers. Notes
ES
Activity
For every complaint received by the average business, there are 26 ___________________
Prepare a slideshow on Why
Do Customers Complain?
silent, unhappy customers. Of these 26 who remain silent, 6 have ___________________
‘serious’ grievances. The average customer tells 9 or 10 other
___________________
people about a problem with an organization. Thirteen percent of
people who have a problem with an organization tell more than 20 ___________________
people. If a customer does complain, even if this complaint is not ___________________

resolved, he is more likely to return to do further business with the ___________________
company than a non-complainer.
___________________
Where customers have made a complaint, between 54 and 70
___________________
percent will continue to do business with the company if the
complaint is resolved. If the customer feels that the complaint was ___________________
resolved quickly, this figure increases to a very impressive 95 ___________________

UP
percent. Customers who have aired their grievances and had them
satisfactorily resolved by an organization, on average tell 5 other
people.
The information above cannot be taken lightly. Any complaint
which you receive is representative of many which are never
voiced. You cannot hope to resolve a grievance unless you are
aware of it in the first place. In a company whose culture includes
a customer friendly complaints procedure, customers are actively
encouraged to inform staff of any problems. By listening and
reacting to the information which customer complaints offer,
guesswork is greatly reduced. Consequently, you can address the
issues which you know concern the customer. Since a high
standard of service is a major priority, properly handled
complaints will increase company knowledge of itself and of the
customer, and consequently customer satisfaction.
)
Check Your Progress

Fill in the blanks:
1. Any complaint which you receive is …………………… of
(c
many which are never voiced.

2. Perfection is …………………… to achieve.
Why Do Customers Complain?

With regard to complaints, most people will tolerate a lot before
finally complaining. When a grievance is aired, it is worth taking
into account. Tied up with the service which your company

Notes advertises, are the expectations which the customer has of what
ES
___________________ this service offers. What motivates someone to pay for your
service? One theory is referred to as the Expectancy  Value
___________________
approach, which emphasizes how goals lead to specific behaviours.
___________________
According to this theory:
___________________
“The strength of the tendency to act in a certain way depends on the
___________________ strength of the expectancy that the act will be followed by a given
___________________ consequence (or goal) and the value of that consequence to the
___________________
individual.”
___________________ When such expectations are not met, the cracks in the service
promise become apparent. A good level of service is accepted and
___________________
expected. The customer will notice if this service falls below that
___________________ which he has come to expect, whether from previous experience or
UP from advertising promises. Although he may readily adjust to a
higher standard than expected, he is usually not so quick to accept
a lower one. Customer expectations are progressive - what was
once a novel factor of service, for example, in-flight movies on long
haul flights, is now regarded as average and normal. The more is
promised, the greater are the expectations. Only when the
customer is listened to, can you discover what the customer wants,
needs, and expects. And complaints are certainly one way of
becoming informed.
Once the customer feels that he is being cared for, cared about and
valued, even the most trying of circumstances may be transformed
from a complaint into a favourable impression. Tolerance levels
increase when individual needs are acknowledged, and will
increase even more when attempts are made to correct the
situation.
Although aware of each customer’s needs to be treated as an
)
individual, have you thought of the implications which this

carries? Each individual has expectations peculiar to him, with a
different threshold level of acceptance. The standard of service
(c
which is perfectly adequate for one customer may fail to satisfy the
expectations of another. One customer may consider the facility of
seat-selection, when making an airline flight reservation, as
standard procedure. When this facility is unavailable, he will not
be pleased. On the other hand, another customer, unaccustomed to
this facility, will not feel deprived should this service be
unavailable. In situations where all customers have been party to
the same conditions, the reactions may differ greatly. It is

necessary to adjust your response to suit the level of complaint Notes
ES
Activity
which you encounter. ___________________
Prepare a chart on the
complaints system with both
The aim is to bring the customer back, and the service provided text ___________________
and images.
facilitates this aim. However, customer loyalty is difficult to
___________________
develop. It is by nature circumstantial, fragile, and fleeting. Any
level of service below that which is expected, negatively affects ___________________
loyalty. ___________________
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. ………………….. levels increase when individual needs
are acknowledged. ___________________
___________________
2.
UP
The standard of service which is perfectly adequate for
one customer may fail to satisfy the ………………….. of
another.
The Complaints System

Having a system of handling complaints is essential in order to
give every staff member guidance. Denis Walker, in the book
Customer First, suggested a system which can be adapted to suit
your needs.
 Log the complaint (preferably onto a specifically designed
form):
 Who received it?
 How it was received (telephone, letter, direct)
 Nature of complaint (full description)
)
 Date/time of complaint (so you can meet your stated

performance standard)
 Any interim ‘fix-it’ action required
(c
 Inform the customer that you are dealing with the complaint,
the likely timescale and any immediate action taken.
 If you are not the person who can solve the problem, send a
copy of the details to the person who can. (If interim action has
been required you will probably have already spoken to him.)
 Note any action taken at the time of the complaint to attempt

Notes
ES
to solve the problem.
___________________
 Once the problem has been resolved complete notes of the
___________________
action taken.
___________________
 Write/speak to the customer to tell him what action has been
___________________ taken:
___________________
 To solve his problem
___________________
 To resolve any underlying causes of his problem
___________________
 To provide compensation
___________________
 Send the person who received the complaint a copy of the form
___________________
showing the action taken, and where appropriate, a copy of the
___________________ letter to the customer.
UP  Ensure the complaint has been analyzed and fed into a central
data system. Keeping a record of complaints is worthwhile so
that trends can be identified.
Where complaints are answered in letter form, careful
consideration must be given as to their wording. Although it is
easy to resort to a standardized letter format, the customer will
appreciate an individualized letter. Remember, letters can contain
‘You’ messages, so beware of how you phrase them. Use ‘I’
messages in an effort to avoid patronizing, or appearing to blame
the customer.
As with all complaints there may be legal implications, so be aware
of that possibility with regard to each specific complaint. Where
compensation claims are expected and cannot be avoided,
guidelines must be clearly laid out. However, you can sometimes
react spontaneously to the situation at hand, knowing the
)
parameters within which you can operate.

We have discussed what should happen when a customer actually
complains, but as we said before, for every person who complains,
there are 26 others who remain silent about their dissatisfaction.
(c
It is vital for the airline to encourage such people to voice their

dissatisfaction, so that their cause for complaint, if valid and
genuine, can be dealt with. How can people be encouraged to do
this? There are a number of different ways. For example, the
airline could set up a telephone line with a specially recorded
message. Some of the more reticent customers may prefer leaving a
message in this way, rather than having to ‘explain themselves’ to

a member of staff. (Of course, the option of speaking to an Notes
ES
Activity
employee should still be available.) ___________________
Prepare a collage on the
reasons why do airports need
Aspiring to total quality and world-class management is a ___________________
customer complaints?
challenge. While pursuing these objectives, an organization’s
___________________
techniques and methods should implement effective procedures to
deal with complaints. Remember, you can transform complaints ___________________
into a profit opportunity. And don’t rule out the possibility of ___________________
compliments - you can’t always get it wrong. ___________________
1. ………………. the customer that you are dealing with ___________________
the complaint. ___________________
2.
UP
Aspiring to total ……………….
management is a challenge.
and world-class
Why do Airports need Customer Complaints?

Part of the cost of doing business is losing customers. In some
cases, there may not be anything a small business can do to retain
the customer, as his needs may have changed. However, if there is
a possibility to regain the business, a business owner certainly
would want to do that. While it would appear that customer
complaints are a negative to a small business, complaints can be
an essential marketing tool. When customers complain they are
giving the business the chance to rectify the situation. Small
business owners have an even greater advantage in this arena as
there are fewer levels between management and the customer.
Identify Areas of Improvement

)
A customer’s complaints can highlight a weakness of the business

or an area of needed improvement. Management should take all
complaints seriously and examine the root cause of the complaint.
(c
Address any issues with the customer and follow-up with the
breakdown in the customer service chain to correct the issue. Many
times customer complaints can reveal where needs are going
unmet and can inspire new product and service offerings that could
increase profitability. Regardless of how many customers your
small business may have, encourage feedback from customers to

Notes improve your business.
ES
___________________
Improve Customer Loyalty
___________________
A study by TARP found that customers who had a complaint
___________________
resolved in a satisfactory manner were 30 percent more loyal than
___________________ those who never complained and 50 percent more loyal than those
___________________ who remained dissatisfied. Airports should encourage customers to
come forward if they are not satisfied. This exchange is an
___________________
opportunity to effectively solidify the relationship between the
___________________ business and the customer.
___________________
Increase Word of Mouth
___________________
Satisfied customers are more likely to refer friends and peers to
___________________
UP your small airport. Since studies have shown that those who
complain are more loyal, this is a rich target market for referrals.
Keeping customers satisfied is important for the personal airport
they bring to you, as well as referrals.
Implement Formal Complaint Program

When an airport gathers and maintains data about complaints
from customers, it is easier to implement a problem-solving
process. Most airports have found that empowering their front-line
employees to address and solve complaints to the satisfaction of
the customer have proved to be very effective from a satisfaction
and profitability standpoint. A formal complaint handling process
can improve customer satisfaction and result in increased
customer loyalty. A formal program does not need to be
complicated. A simple spreadsheet can easily track the type of
complaint and the solution.
)
Create Sales Opportunities

When a customer complains about an issue with a product or
service, it can create a sales opportunity. Trained customer service
professionals can quickly get to the root of the problem to discover
(c
if additional add-on products or a technical support plan can help

the customer. This can create additional profitability for the
airport while satisfying the customer, as the product is now
serving his needs. Turning complaints into sales opportunities
must be handled carefully, with the main goal being to solve the
problem. Profiting from the situation should be secondary.
Check Your Progress Notes
ES
1. When an airport gathers and maintains data about ___________________
complaints from customers, it is easier to implement a
___________________
……………… -solving process.
___________________
2. 2. A simple ……………… can easily track the type of
___________________
complaint and the solution.
___________________
Summary ___________________
Most airlines establish a customer charter, which outlines what ___________________

the company promises to deliver to the customer. When a promise ___________________
is not fulfilled, a customer is entitled to complain. Due to the
___________________
UP
possibility of encountering complaints, a company will also
formulate a statement of parameters for cause for complaint.
Complaints are not really a sign of failure; rather they are an
indication that something is amiss within the organisation and its
service. As a result of knowing these faults, a company can act to
correct them, and learn from them. Complaints are made by your
customers, and provide you with an opportunity to quit guessing
what is required of your product or service. Two factors affect the
number of complaints generated – faults in the company’s product
or service, and the manner in which customers expect you to
handle their complaints.
Lesson End Activity

Visit the site of Delhi Airport and study the online complaint
system and make a short report on the same.
)
Keywords
Customer Charter: This is ‘any formal writing in evidence of a
(c
grant, contract, or other transactions, conferring or confirming

titles, rights, or privileges, or the like.’ It outlines what the
company promise to deliver to the customer.
Customer Expectations: These have been defined as “…..
Attitudes held by customers towards a company. They relate to the
product, to the service given, and the professionalism of the
customer contact.”
Grievance: This is a real or imaginary wrong which causes

Notes
ES
resentment and is regarded as grounds for complaint. It is a feeling
___________________
of resentment or injustice at having been unfairly treated.
___________________
Legitimate Complaint: A legitimate complaint is any complaint
___________________ which is not based on gender, race, creed or colour. Problems with
___________________ service, product and personnel are all considered to be legitimate
complaints.
___________________
___________________
___________________
1. Discuss the complaints’ System at airports.
___________________
2. What are the various causes of customer complaints?
___________________
___________________
3. For what reasons do customers complain?
UP 4. What are the two factors were said to determine the number of
complaints generated? What are they?
5. What are the factors any product or service business needs
customer complaints?
Further Readings
Books
Fojt. Martin, (2006), Strategic Direction: The Airline Industry.
)
Web Readings
http://customerservicezone.com/customerserviceguest/whycomplain
.htm
(c
http://smallairport.chron.com/airportes-need-customer-complaints-
2042.html
http://smallbusiness.chron.com/businesses-need-customer-
complaints-2042.html
UNIT 22: Branding Strategy for Customer Service at Airports
Notes
ES
Activity
Write___________________
Branding Strategy for Customer an article on the
excellent customer service
___________________
and branding for airports.
Service at Airports ___________________
___________________
Objectives ___________________
___________________
topics:
___________________
 Excellent Customer Service and Branding Mean for Airports
 Typical Airports and Unique Brands ___________________
 Role of Airport Standards in Providing Excellent Customer Service ___________________

 Airports Staying on Brand
___________________
Introduction
UP
Excellent customer service is the synergy created when an airport’s
ability to exceed its customers’ airports needs and expectations
consistently matches its customers’ perception that their needs and
airports expectations are well met. This is particularly challenging
in the airport environment where, although airports many are
responsible for the delivery of services, the customer and other
stakeholders often hold the airport operator accountable for the
level of service provided airport-wide. If airport management takes
airports a strategic and holistic approach to customer service and
airport branding, customer satisfaction with the airport experience
can be significantly improved and airport net revenues can be
tracked to show direct relationship with increased customer
satisfaction.
)
Excellent Customer Service and Branding Mean for

Airports
Excellent customer service is the synergy created when an airport’s
(c
ability to exceed its customers’ needs and expectations consistently

matches its customers’ perception that their needs and
expectations are well met. This is particularly challenging in the
airport environment where, although many are responsible for the
delivery of services, the customer and other stakeholders often
hold the airport operator accountable for the level of service
provided airport-wide. Recognising that misdirected complaints are

Notes inevitable in any environment where it is often unclear exactly
ES
___________________ who is responsible for service delivery, airport managers can either
b defensive and try to explain to customers and stakeholders all
___________________
the reasons why excellent customer service is difficult to achieve,
___________________
or they can incorporate customer-centricity at the top and airports
___________________ through the core of how their airports are managed. Starting from
___________________ the top requires establishing a customer-driven vision for the
airport and leveraging the relationship airports between excellent
___________________
customer service and airports branding.
___________________
While customer service is often described by the services, products
___________________
and experiences that an airport provides, airport brand is what
___________________ customers and other stakeholders think about the airport and the
___________________ services and products provided. That is, an airport’s brand is the
UP sum total of all the customer experiences at an airport, as airports
perceived by the customer. Every airport has a brand, just as
individuals have a personal brand — namely, the esteem in which
they are held when people think about their names.
Airport brands can be either:
Ad hoc
It is formed by the customers’ perceptions of the typical
experiences encountered there or by what they have heard or read
about that airport. For example, most people have heard of or
flown through John F. Kennedy International Airport in New York
City. This airport has such a venerable history and reputation as
America’s gateway to the world that most people recognise it solely
by its initials – JFK – initials which conjure up very specific
airport images in people’s minds. Some are nostalgic, some are
stereotypical and associated with New York City’s image, and
)
others are based on millions and millions of customers’ personal

travel experiences at JFK over the years. Taken as a whole, these
images have become JFK’s ad hoc brand.
(c
Strategic
It is defined and managed by the airport operator in collaboration
with its stakeholders, business partners and airport employees.
This represents an airport’s promise to its customers. Singapore
Changi Airport is renowned for its successful strategic airport
brand. Changi Airport’s management clearly understands the
power and the value of their brand, as everything it says or does is

consistent with the brand. Notes
ES
Activity
___________________
Prepare a presentation on the
Check Your Progress establishment of unique brand
___________________
for typical airports.
Fill in the blanks:
___________________
1. Starting from the top requires establishing a
___________________
…………………. -driven vision for the airport.
___________________
2. Singapore Changi Airport is renowned for its
…………………. strategic airport brand. ___________________
___________________
Can more ‘Typical’ Airports Really Establish a Unique ___________________
Brand? ___________________
Yes, they can — indeed, by so doing they would no longer be ___________________

UP
considered ‘typical’. If an airport is to be considered one of the best
in the world by its customers, its management needs to be
intrinsically focused on defining and managing the airport’s unique
brand, as well as providing outstanding customer experiences. In
this regard, an airport’s vision and its brand are two sides of the
same coin. Both require that airport management strategically
defines what the airport stands for, what guarantees it will provide
to its customers, and how the experiences at the airport are
positively differentiated from other airports.
All airports are in the same business, but some see themselves as
comparable with a public utility which they believe defies
branding. This is why customers at these airports often find it
difficult to discern the city in which their destination airport is
located as these airports look like any other. By way of contrast,
both IBM and Apple sell personal computers, but Apple’s
customers believe Apple’s brand stands for thinking ‘outside of the
)
box’, ergo Apple’s tagline, ‘Think Different’, versus IBM’s (Big

Blue) traditional brand promise as a single source supplier for all
computing needs. Because of these perceptions, customers of Apple
(c
and IBM are very brand loyal.

Both Apple and IBM understand the economic value of their
brands and the resulting revenue impact that branded customer
experiences provide. Similarly, excellent customer service, unique
customer experiences and an effective branding strategy have a
positive impact on airports’ financial performance and image.
ES
Activity
___________________
Prepare a chart on the role of Fill in the blanks:
airport standards in providing
___________________
excellent customer service. 1. Both Apple and IBM understand the …………………
___________________ value of their brands and the resulting revenue impact
that branded customer experiences provide.
___________________
2. If an airport is to be considered one of the best in the
___________________
world by its customers, its management needs to be
___________________
intrinsically focused on defining and managing the
___________________ airport’s ………………… brand, as well as providing
___________________ ………………… customer experiences.
___________________
Role of Airport Standards in Providing Excellent
___________________
UP Customer Service
Once the airport’s brand has been defined and customer priorities
have been determined using appropriate market research
methodologies, airport standards which support the brand and
address the drivers of customer satisfaction should be established.
It is important that they are developed in collaboration with the
airport community and subsequently published and shared with
all who will be affected, including airport employees and even
customers. As customers expect seamless and transparent airport
experiences and judge airports on the collective performance of the
entire airport community, published customer service standards
facilitate the delivery of consistently excellent service by providing
generally accepted guidelines for all service providers at the
airport.
Airport operators are uniquely positioned to spearhead the
adoption of customer service standards for their airport. They are
)
like the conductor of a symphony orchestra. Without a musical

score, music quickly becomes cacophony. Published airport
standards are an airport’s score and are an important tool for
(c
communicating the airport’s brand to business partners,

stakeholders, airport employees and customers. Airport standards
assure a consistent and reliable level of performance, guide
customer communications and marketing campaigns, and manage
customer expectations. They often include guidelines for facility
condition and cleanliness; operational efficiency; employee
behaviour, appearance and knowledge; signage; airport and
terminal planning and design; concessions; and minimising

construction impact on customers. Notes
ES
Activity
Write an article on how can
___________________
Check Your Progress airports ‘stay on brand’?
___________________
Fill in the blanks:
___________________
1. Customers expect ………………….. and …………………..
___________________
airport experiences and judge airports on the collective
performance of the entire airport community. ___________________
2. Airport operators are uniquely positioned to spearhead ___________________

the adoption of customer service …………………… for ___________________
their airport.
___________________
___________________
How can Airports ‘Stay on Brand’?
___________________
UP
There are a number of techniques to ‘stay on brand’:
Periodic review of airport policies, procedures and systems
to enable excellent customer service: Policies, procedures and
systems provide an organisation with the assurance that business
is being conducted in a manner that advances the attainment of its
vision, the fulfilment of its mission and, therefore, the realisation
of its brand. As airports become customer centric and focused on
enhancing customer experiences, they often find that they are
saddled with policies, procedures and systems from a prior era,
which are obstacles to providing excellent customer service. In fact,
they sometimes assure abominable service by their very design. A
review of these fundamental management tools, both from a
customer perspective (utilising a review of complaints as well as
focus groups, for example) and for consistency with the brand
strategy, is critical for airports to provide excellent customer
service.
)
A performance management system to measure the airport

operator’s performance and that of the entire airport
community to keep the airport on track: Performance
(c
management is critical to assure that the airport is delivering on

its promise to its customers, and therefore staying on brand. It
involves monitoring and managing the airport’s collective
performance utilising published airport standards and identifying
key performance measures that indicate that the airport is moving
in the right direction. Characteristics of a sound performance
management programme include baseline measures; a ‘critical few’
realistic ‘stretch targets’ that address customer priorities; reliable

Notes feedback systems for all customers; scorecards that clearly
ES
___________________ communicate ‘performance at a glance’ for each service provider;
action plans that identify what will be done b whom and in what
___________________
timeframe to improve key performance indicators; incentives to
___________________
improve performance; as well as initiatives to energise and engage
___________________ airport employees. Without a formal and effective market research
___________________ programme, it is difficult to know the right things to do to improve
customer satisfaction and airport image, and achieve the
___________________
concomitant increased revenues possible as a result. Without a
___________________ formal and effective performance management system, it is
___________________ difficult to know if these things are being done right.
___________________ Many have heard the performance management mantra that what
___________________ gets measured gets done. Therefore, it is extremely important that
UP the right things get measured. One banking institution learned
this lesson the hard way. It had determined that increased
personalisation of teller and customer interactions were a key
driver of customer satisfaction. Although tellers were informed of
this new customer service initiative, standards were defined and
training provided, customer satisfaction lagged. Upon further
scrutiny, it was discovered that the bank’s performance
management system rated employees on speed of transactions.
This practice was counterproductive to enhancing people-to-people
interactions and in fact damaged the customers’ perception of the
bank’s performance.
Unique service programmes focused on customer priorities
that also advance the airport’s brand: Customer service
programmes provide facilities, products, services and amenities
that fulfil customer needs and wants and resonate with the
airport’s brand. Branded service programmes respond to customer
)
priorities in a way that differentiates the total experience at one

airport from another. They can provide new or enhanced revenue
streams for the airport as well as opportunities to improve
customer satisfaction and airport image.
(c
An airport’s brand definition encapsulates what it does, how it

differs from other airports, and what it promises to deliver to those
who interact with it or utilise its services. It is most effective when
it is customer – centric, i.e. shaped by understanding customers’
wants, needs, expectations and priorities, and by determining their
satisfaction levels with and perceptions of, the airport and the
services provided. As opposed to the traditional hierarchical

organisation, which is often depicted as a pyramid and focused on Notes
ES
achieving internal goals and reporting to upper management, ___________________
senior management and supervisors in a customer-centric
___________________
organisation are all focused on supporting the front-line staff in
delighting the customers who are at the core of the organisation. ___________________
The brand definition provides the roadmap for outlining a strategic ___________________
customer service improvement and branding strategy that guides
___________________
business decisions.
___________________
1. …………………… management is critical to assure that ___________________

the airport is delivering on its promise to its customers,
___________________
2.
UP
and therefore staying on brand.
…………………… service programmes respond to
customer priorities in a way that differentiates the total
experience at one airport from another.
Summary
Customers judge an airport’s performance on the collective
performance of all the airport partners which provide service.
Therefore, to achieve higher levels of customer satisfaction,
airports should ratchet up airport performance while managing
customer expectations regarding service delivery. As performance
exceeds expectations, customer satisfaction increases. This is
easier said than done when every aspect of an airport’s business
has repercussions on the service provided to its customers, which is
then personified by the face-to-face customer interactions with
)
airport employees. This is further complicated by the fact that, at

the same time that airport managers are focused on improving
service delivery, customers’ expectations are subject to change
based on their experiences at other airports or with comparable
(c
industries such as upscale malls and restaurants.

Given these challenges, success is by no means serendipitous.
However, airport managers who strategically weave customer
centricity into the fabric of how business is done at their airports,
and who are focused on achieving the buy-in of business partners,
stakeholders and airport employees by using this iterative, holistic
and programmatic approach, will enjoy more delighted customers,

Notes a more positive airport image and a beneficial impact on the
ES
___________________ bottom line.
___________________
___________________
Lesson End Activity
___________________ Discuss within your group the brand definition for airports.
___________________
___________________
Keywords
___________________ Brand: Brand is the name, term, design, symbol, or any other
feature that identifies one seller's good or service as distinct from
___________________
those of other sellers.
___________________
___________________
purchaser) is the recipient of a good, service, product, or idea,
UP obtained from a seller, vendor, or supplier for a monetary or other
valuable consideration.
Customer Service: The provision of service to customers before,

during and after a purchase.

1. What does excellent customer service and branding mean for
airports?
2. What is the role of airport standards in providing excellent
service to the customers?
3. Can more ‘typical’ airports really establish a unique brand?
4. How can airports ‘stay on brand’? Discuss in detail.
5. What is the adhoc type of airport brand?
)
Further Readings
Books
(c

Martinez, Mario, & Hobbi, Bob, (2009)., Building a Customer
IAP

Notes
ES
Aviation,” Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://www.gatewaygroupone.com/Press/03_06_08%20Airport%20
___________________
Management.pdf
___________________
http://simpliflying.com/2011/are-your-airport-customer-services-
___________________
delivery-under-pressure/
___________________
___________________
___________________
___________________
___________________
) UP
(c
(c
) UP
ES
UNIT 23: Airport Shopping
Notes
ES
Activity
___________________
Airport Shopping Prepare a write up on the non-
aviation sector at airports.
___________________
___________________
Objectives
___________________
topics: ___________________
 Non-aviation Business ___________________

 Rising Expectations for Shop Owners ___________________
 Airport Business Model
___________________
___________________
Introduction
___________________
UP
Almost all airports provide a number of facilities for its customers.
In this unit you will be introduced about most of these facilities.
These facilities are provided to customers in order to give them the
best experience at airport and to welcome them again to book their
flights from the same airport. An airport is a first impression of the
city you are entering into and thus a customer service executive
makes all his efforts to provide customers with best experience.
Airports are not solely geared toward handling passengers and
baggage. The non-aviation business—including shopping, dining,
parking, and advertising—is constantly expanding as a vital
source of revenues.
Non-aviation Business
Non-aviation business refers to everything at airports not directly
related to air travel, such as retail trade, catering, parking, and
advertising. Airports have recognized the opportunity to boost both
)
revenues and profits with the help of the non-aviation sector and,
as a result, have significantly expanded the areas dedicated to
retailers and restaurants. Even airports not initially designed or
(c
built with retail areas in mind have since managed to develop a

retail presence. For example, Frankfurt Airport now has 570
square meters of non-aviation area per 1 million passengers, while
London Heathrow has 1,050 square meters per 1 million
passengers. Both airports plan to expand even more.
The expansion into non-aviation is accompanied by more diverse
retail concepts, particularly in fashion, wellness, and beauty. In
the fashion sector, premium and luxury formats have been

Notes supplemented by the mainstream segment—illustrated by the
ES
Activity
___________________
Prepare a presentation on the
Accessorize store in Munich and Zara in Barcelona. Wellness and
rising expectations for shop beauty outlets are found at numerous airports and work
___________________
owners.
particularly well at those with a large number of transfer
___________________
passengers. The Be Relax wellness brand, to name one, is
___________________ represented at nine airports in Europe. Beauty products are now
___________________ sold in mono-brand shops in addition to duty-free stores.
___________________ The opportunities to develop a presence in these markets are

definitely attractive for retailers, brand manufacturers, and
___________________
caterers. But before jumping in, it is important to know which
___________________
business models work best in which situations. Airport retailing is
___________________ not like high-street retailing.
___________________
UP Fill in the blanks:
Check Your Progress
1. The expansion into non-aviation is accompanied by

more ….………….... retail concepts.
2. The opportunities to develop a presence in these
markets are definitely attractive for ….…………....
Rising Expectations for Shop Owners

Not only has the number of non-aviation areas risen—airports'
expectations regarding the professionalism and individuality of
shops are also growing. This applies to both retail trade and
catering outlets. The following points outline some main
expectations for airport retailers and restauranteurs:
Provide Clear and Efficient Routing

)
Until recently, the most commonly used type of routing for duty-
free walk through shops was meandering, allowing passengers to
walk through as wide a range of merchandise as possible. Now,
however, shop layouts provide clear and functionally efficient
(c
routing that ensures optimal orientation with less time delay. This
creates a more relaxed environment for stressed passengers, with
the added advantage of increasing their willingness to buy
products. An example is the shop layout planned by Gebr.
Heinemann for Berlin Brandenburg Airport that opened in 2012.
Create a Unique Profile

Notes
ES
For years, successful airports have put their faith in regional-style
retail formats and unique offerings. Now, airports also expect the ___________________
duty-free shops to contribute to the distinct character of the ___________________
airport, with best-practice shops adopting regional and local
___________________
aspects not only in product mix but also store design. Along with
traditional duty-free products, there is a sophisticated regional ___________________
assortment with product lines produced exclusively for duty-free ___________________

operators. One example is Aldeasa, which opened in 2009 in
___________________
Terminal 1 of Barcelona El Prat Airport. The design of the store's
___________________
regional section is based on the architecture of Barcelona's Antonio
Gaudí. ___________________
___________________
Build a Strong Brand
___________________
UP
Another success factor for duty-free operators is a strong retail
brand. Until recently, the retail brands in duty-free shops—in
Europe, they are mostly variations of the overarching Travel Value
umbrella brand—were not familiar to most customers.
Increasingly, shop operators are coming up with their own trade
brands to position their shops clearly with their customers. For
example, the new Heinemann brand from Gebr. Heinemann is
meant to be associated with uniform prices for travellers (single
pricing for duty-free), a guaranteed price advantage, and three core
elements: service-oriented, personal, and surprising. The objective
is to increase customer loyalty and encourage shoppers to buy. Its
financial success has proved the concept.
Get Innovative
Airports are placing ever greater demands on caterers to match
their offerings to individual airports and customers. Among the
ideas is allowing passengers to check in to a flight from a
)
restaurant and offering free Internet while they wait. McDonald's

at Munich Airport has expanded its previous strategy in this
respect (see sidebar: McDonald's Gets Innovative).
(c
Check Your Progress

Fill in the blanks:
1. Airports are placing ever greater demands on caterers
to match their offerings to individual ………………..
and …………………..
Contd….
2. Airports also expect the …………………….. shops to

Notes
ES
Activity contribute to the distinct character of the airport.
___________________
Prepare a chart on airport
business model.
___________________
Airport Business Model
___________________
Airports are often criticized for their interchangeable retail
___________________ formats, so they are always looking for top-notch brands to add to
___________________ their retail mix—brands that are either not yet represented at
___________________
other airports or that underpin the airport's unique profile. To get
unique concepts, some airports are willing to take certain risks; for
___________________
example, Singapore's Changi Airport created a young fashion and
___________________ accessories concept together with students from Singapore
___________________ Polytechnic. When airports plan new developments and extensions,
they explicitly earmark about 20 percent of the retail mix for
___________________
UP regional best performers. This means there are great opportunities
for retailers that are not yet in an airport.
Airports are always looking to add top-notch brands that are either
not yet represented at other airports or that underpin their unique
profile.
Airport locations are doubly valuable for brand manufacturers as
they promise profits and provide a prominent location that
supports the brand. Successful models may include independently
operated shops and concessions allocated to retailers, which in
turn may be the traditional duty-free companies. Luxury brands,
such as Armani, choose different operator models in different
locations.
However, merely having a strong brand and a successful business
in high-street retailing does not guarantee success. The travel
retail segment has its own business models and challenges and
requires a certain kind of management. Consider, for example, the
)
difficulty in developing retail strategies to attract the thousands of

different passengers streaming through airports every day. While
customer flow is predictable (aligned with flight schedules),
(c
managing such a large and diverse customer segment depends on

matching specific concepts and merchandise offers with the
terminal, destinations, and number of low-cost airlines. In
addition, while floor plans are more compact and it is easy to get
an overview of the competitive environment, distribution and
logistics are more complicated and costlier.
Other things to consider:

Notes
ES
 Rent, ancillary expenses, and personnel costs are considerably
higher. ___________________
 Tenancy agreements generally run for only five to eight years, ___________________
and it is not uncommon for restructuring dictated by airport ___________________

operations.
___________________
 Similar to malls, airports are closely involved in developing ___________________
their tenants' business.
___________________
Business ___________________
What does all of this mean for retailers and manufacturers that ___________________
wish to break into the airport business segment or successfully
___________________
expand an existing foot-hold? There are three success factors to
___________________
keep in mind:
1.
UP
Establish an independent management structure: Travel
retail requires its own independent management, because the
business model is far different from high-street retailing.
2. Adapt the market entry strategy to travel retail: The
unique features of travel retail require a market-entry
strategy with an appropriate format and product mix and a
specific business model. Simply copying the high-street model
will not work.
3. Align with a strong partner: In some cases, travel retail is
more successful when run with a strong partner with airport
experience. There are usually several established retailers at
each airport that already hold licenses or franchises of various
global brands.
Airports: A Profitable Destination

)
The non-aviation business segment continues to attract a more

diverse group of retailers – extending beyond premium and luxury
brands to also include mainstream brands. To operate profitably in
(c
this environment requires new business models, innovative

strategies, and insights into a wide and diverse customer segment.
Knowing your customers—their terminals, flight schedules,
destinations, and preferred products—can prove lucrative.
Developing a strong business intelligence function—particularly
for duty-free operators—that uses the large amount of detailed
information that is gathered is vital for designing merchandise

Notes strategies that get the most value from each potential consumer.
ES
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. The non-aviation business segment continues to attract
___________________
a more diverse group of …………………..
___________________
2. Knowing your customers—their terminals, flight
___________________
schedules, destinations, and preferred products—can
___________________ prove ………………
___________________
___________________ Summary
___________________ Airports are not solely geared toward handling passengers and
UP baggage. The non-aviation business—including shopping, dining,
parking, and advertising—is constantly expanding as a vital
source of revenues. Airports have recognized the opportunity to
boost both revenues and profits with the help of the non-aviation
sector and, as a result, have significantly expanded the areas
dedicated to retailers and restaurants.
For years, successful airports have put their faith in regional-style
retail formats and unique offerings. Now, airports also expect the
duty-free shops to contribute to the distinct character of the
airport, with best-practice shops adopting regional and local
aspects not only in product mix but also store design. Airports are
always looking to add top-notch brands that are either not yet
represented at other airports or that underpin their unique profile.
Lesson End Activity

)
Discuss within your group the scope of retail at airports.
Keywords
(c
Diverse: It refers to something that is made up of distinct

characteristics, qualities, or elements.
Retail: Retail is the sale of goods and services from individuals or
businesses to the end-user.
happen.
Efficiency: It refers to the extent to which time or effort is well

Notes
ES
used for the intended task or purpose.
___________________
Innovate: Innovation is the development of new values through
solutions that meet new requirements, inarticulate needs, or old ___________________
customer and market needs in value adding new ways. ___________________
___________________
1. What is meant by non-aviation business at airports? ___________________
2. Why do retailers consider airports as profitable destination for ___________________

business? ___________________
3. What are the factors that must be considered while preparing ___________________
airport business model?
___________________
4.
5.
UP
What is the success factor for duty-free operators at airports?
Why do airports prefer more innovative retailers?
Further Readings
Books
IAP
Web Readings
)
http://www.atkearney.com/paper/-
/asset_publisher/dVxv4Hz2h8bS/content/airport-shopping-takes-
off/10192
(c
http://www.usatoday.com/story/travel/flights/2013/02/12/airport-
shopping-choices/1911177/
(c
) UP
ES
UNIT 24: Airport Security
Notes
ES
Activity
___________________
Airport Security Prepare a write-up of history
of airport security.
___________________
___________________
Objectives
___________________
topics: ___________________
 History of Airport Security ___________________

 Meaning of Airport Security ___________________
 Airport Security in India
___________________
 Security at Commercial Service Airports
___________________
 Future of Airport Security
___________________
Introduction
UP
One of the most significant customer services provided at airports
is airport security. Most users of commercial service airports are
subjected to security infrastructure, policies, and procedures
within the airport terminal area. Airport security is not limited to
the terminal area, however. Airport security concerns all areas and
all users of the airport. Airport security procedures are designed to
deter, prevent, and respond to criminal acts that may affect the
safety and security of the travelling public. Criminal activity
includes the hijacking of aircraft, known as air piracy, damaging or
destroying aircraft with explosives, and other acts of terrorism,
defined as the systematic use of terror or unpredictable violence
against governments, publics, or individuals to attain a political
objective. Criminal activity also includes acts of assault, theft, and
vandalism against passengers and their property, aircraft, and all
airport facilities.
)
History of Airport Security

(c
In the earliest days of civil aviation, when the greatest concerns

were simply the safety of flight, there was little concern over
airport security or aviation security in general. Aviation security
first became an issue in 1930, when Peruvian revolutionaries
seized a Pan American mail plane with the aim of dropping
propaganda leaflets over Lima. Between 1930 and 1958, a total of
23 hijackings were reported, mostly committed by eastern
Europeans seeking political asylum. The world’s first fatal aircraft

Notes hijacking took place in July 1947 when three Romanians killed an
ES
___________________ aircrew member. The first major act of criminal violence against a
U.S. air carrier occurred on November 1, 1955, when a civilian by
___________________
the name of Jack Graham placed a bomb in luggage belonging to
___________________
his mother. The bomb exploded in flight, killing all 33 people on
___________________ board. Graham had hoped to cash in on his mother’s life insurance
___________________ policy, but instead was found guilty of sabotaging an aircraft and
sentenced to death. A second such act occurred in January 1960,
___________________
when a heavily insured suicide bomber killed all aboard a National
___________________ Airlines aircraft. As a result of these two incidents, demands for
___________________ luggage inspection at airports serving air carrier aircraft surfaced.
___________________ With the rise of Fidel Castro in Cuba in 1959 came a significant
___________________ increase in the number of aircraft hijackings, at first by those
UP wishing to escape from Cuba, then by those hijacking U.S. aircraft
to Cuba. In May 1961 the federal government began using armed
guards on select air carrier aircraft to prevent hijackings. In
August 1969, Arab terrorists carried out the first hijacking of a
U.S. aircraft flying outside the Western Hemisphere when they
diverted an Israel-bound TWA aircraft to Syria. Another incident
that October involved a U.S. Marine who sent a TWA plane on a
17-hour circuitous journey to Rome. This was the first time that
FBI agents attempted to thwart a hijacking in progress and that
shots were fired by the hijacker of a U.S. plane. In March 1970, a
copilot was killed and the pilot and hijacker seriously hurt during
a hijacking. The first passenger death in a U.S. hijacking occurred
in June 1971. Following the hijacking of eight airliners to Cuba in
January 1969, the Federal Aviation Administration created the
Task Force on the Deterrence of Air Piracy. The task force
developed a hijacker “profile” that could be used along with metal
detectors (magnetometers) in screening passengers. In October,
)
Eastern Air Lines began using the system, and four more airlines
followed in 1970. Although the system seemed effective, a
hijacking by Arab terrorists in September 1970, during which four
(c
airliners were blown up, convinced the White House that stronger
steps were needed. On September 11, 1970, President Richard
Nixon announced a comprehensive anti-hijacking program that
included a federal air marshal program.
Between 1968 and 1972, hijacking of U.S. and international
aircraft was at its peak. During the 5-year period, the U.S.
Department of Transportation recorded 364 hijackings worldwide.
As a result, security issues had become a significant concern for

the travelling public, and created the need for congressional action. Notes
ES
Activity
On March 18, 1972, the first airport security regulations were ___________________
made effective, later formalized within the FAA as Federal meaning of airport security.
___________________
Aviation Regulations Part 107—Airport Security, in 1978. Under
this regulation, airport operators were required to prepare and ___________________
submit to the FAA a security program, in writing, containing the ___________________

following elements:
___________________
 A listing of each air operations area (AOA), that is, those areas ___________________
used or intended to be used for landing, takeoff, or surface
___________________
manoeuvring of aircraft,
___________________
 Identification of those areas with little or no protection against
unauthorized access because of a lack of adequate fencing, ___________________
gates, doors with locking means, or vehicular pedestrian ___________________

controls, and
UP
A plan to upgrade the security of air operations with a time
schedule for each improvement project.
Check Your Progress

Fill in the blanks:
1. Aviation security first became an issue in …………….
2. Between 1968 and 1972, …………………. of U.S. and
international aircraft was at its peak.
Meaning of Airport Security

Airport security refers to the techniques and methods used in
protecting passengers, staff and aircraft which use the airports
from accidental/malicious harm, crime and other threats.
)
Large numbers of people pass through airports everyday, this

presents potential targets for terrorism and other forms of crime
because of the number of people located in a particular
location. Similarly, the high concentration of people on
(c
large airlines, the potential high death rate with attacks on

aircraft, and the ability to use a hijacked airplane as a lethal
weapon may provide an alluring target for terrorism, whether or
not they succeed due their high profile nature following the various
attacks and attempts around the globe in recent years.
Airport security attempts to prevent any threats or potentially

Notes
ES
Activity dangerous situations from arising or entering the country. If
___________________
Prepare a presentation on the airport security does succeed in this, then the chances of any
airport security in India.
___________________ dangerous situations, illegal items or threats entering into aircraft,
___________________ country or airport are greatly reduced. As such, airport security
serves several purposes: To protect the airport and country from
___________________
any threatening events, to reassure the travelling public that they
___________________ are safe and to protect the country and their people.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Airport security attempts to prevent any threats
___________________
or potentially dangerous situations from arising or
___________________ entering the ……………...
UP 2. Airport security refers to the techniques and methods
used in protecting ………………, …….………….... and
……………… which use the airports, from accidental/
malicious harm, crime and other threats.
Airport Security in India

India stepped up its airport security after the 1999 Kandahar
hijacking. The Central Industrial Security Force, a paramilitary
organisation is in charge of airport security under the regulatory
frame work of the Bureau of Civil Aviation Security (Ministry of
Civil Aviation Security). CISF formed an Airport Security Group to
protect Indian airports. Every airport has now been given an
APSU (Airport Security Unit), a trained unit to counter unlawful
interference with civil aviation. Apart from the CISF, every
domestic airline has a security group who looks after the aircraft
)
security.
Terrorist threats and narcotics are the main threats in Indian
airports. Another problem that some airports face is the
(c
proliferation of slums around the airport boundaries in places like

Mumbai. Before boarding, additional searching of hand luggage is
likely. Moreover other than this they the CISF, has to face many
other duties in context of Aviation Security, they have taken the
security of the Cargo in many of the Airports all across India.
Following were the objectives of Indian Airport Security:

Notes
ES
1. The objective of airport security will be to safeguard the
passengers, crew, ground personnel, the general public and the ___________________
airport infrastructure against unlawful acts as per ICAO ___________________
Standards and Recommended Practices laid down in
___________________
Annexure-17 to the Chicago Convention. The level of security
will be calibrated by the BCAS according to the threat ___________________
perception at any point of time. Security will have to be cost- ___________________

effective when compared to internationally accepted norms. ___________________
New staffing patterns, different from the normal police
___________________
stations, will have to be innovated for airports. There will be
greater accent on modern technology and mechanization, so as ___________________
to reduce the need for manpower and increase the ___________________
effectiveness of the force deployed.
___________________
2.
UP
Airport security will be looked after by specialized police
agencies, state police and airport security organizations,
depending on the internal security conditions prevalent in a
particular area. BCAS will continue to coordinate the working
of the various agencies to ensure that all security norms are
followed by them.
3. Govt. recognizes the urgent need to develop an airport security
organization, in order to have a quietly efficient, specialized,
commercially conscious, passenger-friendly force, at the
international airports to begin with. Private security agencies
will also be allowed at certain airports, if the threat
assessment so permits.
4. There will be constant training of security personnel posted at
airports in order to improve their effectiveness and passenger-
friendliness. The present training centre at BCAS
Headquarters will be upgraded and strengthened for this
)
purpose.
Indian Security Check Procedures

(c
Airport security checks are essential for the safety of both the
passengers and the country. Documents like the passengers’
passport, ticket, visa etc. are checked at the boarding counter prior
to the passenger boarding the aircraft. If these are found genuine a
boarding card is issued to the passenger.
The next step is the immigration check where the biographical
data and the passport is screened and details fed into the computer
which automatically matches the details with the criminal

Notes databank to see if there is any illegal doings connected with the
ES
___________________ passenger. These completed the passenger is allowed to enter the
aircraft.
___________________
___________________ Regulations for Luggage and Safety Measures

___________________ During the first leg of the journey passengers are advised not to
___________________ buy duty free liquor since these will get confiscated at the Brussels
airport. Hence it is better to purchase duty free items after the
___________________
Brussels check in.
___________________
The security rules and regulations maintain that:
___________________
 Passengers should not agree to carry packets or baggage of
___________________
unknown people.
___________________
UP 

If carrying explosive substances or arms one should declare
these at the check in counters as concealing them is an offence.
The hand luggage should be small and not contain dry cells or
battery cells which would be removed while checking and the
airport will not be able to return them to the passenger.
 Explosives like compressed gases, fireworks, hand guns, blank
cartridges, pistol caps, acids and alkalis or any apparatus
containing mercury should not be carried in your baggage.
 Liquids that is highly flammable such as fire or cigarette
lighters, paints and thinners, matches, oxidizing material,
radioactive material, peroxides or bleaching powders should be
avoided.
 Insecticides and poisonous weed killers or live viruses are
strictly prohibited.
 Valuable articles like jewels, money, precious metals should
)
not be carried in the baggage.

 Sprays and perfumes should be packed according to the cargo
regulations and carried in the baggage.
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 Use of cell phone on board the Indian aircraft is prohibited.

 For medical use small oxygen cylinders can be carried and for
passengers who require small carbon dioxide gas cylinders to
operate mechanical limbs are allowed with prior permission.
Check Your Progress Notes
ES
Activity
Write a report on the security
at commercial service
1. Airport security checks are essential for the ……………. ___________________
providers.
of both the passengers and the country.
___________________
2. Passengers should not agree to carry packets or ___________________
baggage of ……………….. people.
___________________
___________________
Security at Commercial Service Airports
___________________
You will find following components of security at a commercial
___________________
service airport:
___________________
Passenger Screening
___________________
UP
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). Even though the TSA has ultimate
authority of the facilities and procedures that comprise the
security screening processes, airport managers and 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. As of 2003,
policies surrounding passenger and baggage security screening
remained in a high state of flux. Despite this, certain
fundamentals of the passenger and baggage screening process
remain.
Passenger screening facilities include an automated screening
)
process, conducted by a magnetometer that attempts to screen for

weapons potentially carried on by a passenger that are metallic in
content. As a passenger walks through a magnetometer, the
presence of metal on the passenger is detected. If a sufficient
(c
amount of metal is detected, based on the sensitivity setting on the

magnetometer, an alarm is triggered. Passengers who trigger the
magnetometer are then subject to a manual search by a TSA
screener. Manual searches range from a further check of metal on
the passenger’s person with the use of a handheld wand, to a
manual pat down, to the inspection of the passenger’s shoes.
Carry-on baggage screening facilities are located at security

Notes screening stations to examine the contents of passengers’ carry-on
ES
___________________ baggage for prohibited items such as firearms, sharp objects that
may be used as weapons, or plastic or chemical-based trace
___________________
explosives. All carry-on baggage is first inspected through the use
___________________
of an x-ray machine. Bags selected because of suspicions as a result
___________________ of the x-ray examination, or selected on a random basis, are
___________________ further inspected through the use of explosive trace detection
(ETD) equipment and/or by manual search. In addition, personal
___________________
electronic items such as laptop computers or cellular phones are
___________________ frequently inspected by being turned on and briefly operated to
___________________ check for authenticity.
___________________
Controlled access
___________________
UP A variety of measures are used around airports to prevent, or more
appropriately, control the movement of persons and vehicles to and
from security-sensitive areas of the airport property. At most
commercial service airports, controlled access through doors that
provide access to the AOA, secure areas, sterile areas, and other
areas within the SIDA, as well as many employee-only restricted
areas, is enforced by the use of control systems. These systems
range from simple key locks to smart-access technologies, such as
keypad entry systems requiring proper pass code. In many cases,
pass codes are calibrated with a person’s SIDA badge, requiring
both a presentation of the person’s badge and proper pass code
entry to gain access.
One weakness associated with door entry to security-sensitive
areas, regardless of their access control measures, is the ability to
allow unauthorized persons to enter through the door after an
authorized person has opened the door. This situation is known as
piggybacking, and is almost always a violation of security policies.
)
In some instances, revolving turnstiles with a one-rotation limit

per access, rather than typical door systems have been used to
restrict the number of persons achieving access through these
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areas.
Biometrics
Advanced identification verification technologies, including those
that employ biometrics are continuously being developed to
enhance access control at airports. Biometrics refers to technologies
that measure and analyze human body characteristics such as
fingerprints, eye retinas and irises, voice patterns, facial patterns,

and hand measurements, especially for identification Notes
ES
authentication purposes. Biometric devices typically consist of a ___________________
reader or scanning device, software that converts the scanned
___________________
information into digital form, and a database that stores the
biometric data for comparison. For the most part, biometric ___________________
technologies have initially been found to be most applicable when ___________________

controlling the access of those with SIDA badges at the airport.
___________________
Controlling the access of the general public using biometrics proves ___________________
more difficult, because previously recorded data are required to
___________________
authenticate the identification of the person. If anything, however,
biometrics provides another technology to prevent unauthorized ___________________
access to security-sensitive areas. ___________________
___________________
Perimeter Security
UP
An important part of an airport’s security plan is its strategy for
protecting the areas that serve as the border between secured and
unsecured areas of the airport, known as the airport perimeter.
Four of the most common methods for securing the airport’s
perimeter are perimeter fencing, controlled access gates, area
lighting, and patrolling of the secured area. Perimeter fencing is
one of the most common methods of creating a barrier in otherwise
easily accessible areas of an airport’s secured area boundary.
Fencing can vary in design, height, and type, depending on local
security.
Lighting units for perimeter fences should be located a sufficient
distance within the protected area and above the fence so that the
light pattern on the ground will include an area on both the inside
and the outside of the fence. Generally, the light band should
illuminate the fence perimeter barrier and extend as deeply as
)
possible into the approach area.

Various lighting systems include:
Continuous Lighting
(c
This is the most common protective lighting system. It consists of a

series of fixed lights arranged to flood a given area with
overlapping cores on a continuous basis during the hours of
darkness.
Standby Lighting
Notes
ES
Activity
___________________ Lights in this system are either automatically or manually turned
future of Airport Security. on when an interruption of power occurs or when suspicious
___________________
activity is detected.
___________________
___________________
Movable Lighting
___________________ This type of lighting consists of manually operated movable

floodlights.
___________________
___________________ Emergency Lighting

___________________ This system may duplicate any one of the aforementioned systems.
___________________ Its use is limited to periods of power failure or other emergencies
and is dependent upon an alternate power source.
___________________
UP Patrolling by airport operations staff, as well as local law
enforcement, often contributes to enhancing airport perimeter
security. Patrols of the airport perimeter, for the most part, are
performed on a routine basis. In addition, air traffic control towers,
responsible for the movement of aircraft and vehicles on the
movement areas of an airport’s airfield, are able to keep a
consistent watch over activities within the airport perimeter.
Because of the nature of the task, most air traffic control towers
are situated so that they have an optimal view of the entire
airfield. This facilitates the ability for air traffic controllers to spot
potential security threats. Coordination between air traffic
controllers, airport operations staff, and local law enforcement
further enriches the security of the airport perimeter.
Check Your Progress

Fill in the blanks:
)
1. …………………… by airport operations staff, as well as

local law enforcement, often contributes to enhancing
airport perimeter security.
(c
2. Lighting units for …………………… fences should be

located a sufficient distance within the protected area.
Future of Airport Security

Since the first criminal threats to civil aviation, reactive policies to
prevent further occurrences of current threats have been
implemented. This reactive paradigm has resulted in two

consequences: (1) the reduction in the number of attacks from a Notes
ES
current type of threat, and (2) the creation of new threats against ___________________
civil aviation that the system has not been prepared to mitigate.
___________________
This has been evidenced by the historical development of different
threats, from non-violent hijackings, to violent hijackings using ___________________
firearms, the placing of unattended explosives on aircraft, suicide ___________________

hijackings, attempted suicide bombings, and most recently,
___________________
attempts to down aircraft using shoulder-fired missiles near
___________________
airports where aircraft are at relatively low altitudes and speeds.
___________________
As a result, thoughts regarding the future of airport security
suggest a shift of policy, from a reactive approach to screening for ___________________
the placement of weapons or explosives on aircraft, to a proactive ___________________
approach to protecting against violent or other criminal acts by
___________________
UP
persons in and around the entire airport environment. This
proactive approach requires technological and human expertise to
screen persons for suspicious activity, rather than simply
screening them for unauthorized possessions. Two such programs
in development that address this include the Computer Assisted
Passenger Pre-Screening System (CAPPS II) and the Trusted
Traveller Program.
CAPPS II
The Computer Assisted Passenger Pre-Screening System, known
as CAPPS II, is an enhancement of a profiling system employed by
the FAA that selected passengers for additional screening based on
their air carrier itinerary and citizenship.
CAPPS II designed to be a nondiscriminatory selection system uses
passenger information to verify identity and then determine risk,
which is presented in a score and its corresponding colour: red,
)
yellow, or green. The system is designed to start with four pieces of

passenger information, voluntarily given when passengers
purchase airline tickets: name, address, phone number, and date of
birth.
(c
Trusted Traveller Program

While CAPPS II focuses on prescreening passengers for prior
criminal or other suspicious activity, a program known as Trusted
Traveller is being developed to allow members of the travelling
public to enter themselves into a database of “trusted travellers,”
by submitting an application for the program and inviting a
background check, similar to those performed for airport

Notes employees. Once accepted into the database, the trusted traveller
ES
___________________ would be relieved from secondary searches, which historically have
existed on a random basis, or be allowed to proceed through
___________________
expedited security screening at the airport.
___________________

___________________ 1. Since the first criminal threats to civil aviation,

reactive …….………….. to prevent further occurrences
___________________
of current threats have been implemented.
___________________
2. The Computer Assisted Passenger Pre-Screening
___________________
System, known as CAPPS II, is an enhancement of a
___________________ …….………….. system.
UP Summary
The events of September 11, 2001 and Kandhar highjacking were
certainly most tragic and as a result future concerns regarding the
security of airports, and the aviation system in general, may prove
to be addressed in a much more proactive manner. Prioritizing
airport security has resulted in rapid developments in security
technology and significantly increased security funding, and has
led to addressing issues long considered a concern by many
members of the travelling public.
Protecting against unknown future threats is an imperfect science,
and as such, the future of airport security will always be an
unknown entity. Concerns for the safe, secure, and efficient travel
of passengers and cargo domestically and internationally will
always be a top priority for the civil aviation system, and it can be
)
assured that efforts to make the system as secure as possible will

continue to be held in top priority, by all levels of government, as
well as airport management, for the foreseeable future.
(c
Lesson End Activity

Conduct a survey and identify the various security-sensitive areas
found at airports, as defined by Transportation Security
Regulations?
Keywords
Notes
ES
Directional Marker: An airway marker located on the ground
___________________
and used to give visual direction to an aircraft; consists of an arrow
indicating true north and arrows indicating names and states of ___________________
the nearest towns. ___________________
Direction Sign: Airfield sign that identifies the designations of ___________________
intersecting taxiways leading out of the intersection at which an
___________________
aircraft is located.
___________________
Final Approach Areas: Areas of defined dimensions protected for
___________________
aircraft executing instrument approaches.
___________________
Final Approach (IFR): The flight path of an aircraft which is
inbound to the airport on an approved final instrument approach ___________________
course, beginning at the final approach fix or point and extending ___________________
UP
to the airport or the point where circling for landing or missed
approach is executed.
Global Positioning System (GPS): A satellite-based navigation
system that will enhance user-preferred routing, reduce separation
standards, and increase access to airports under instrument
meteorological conditions (IMC) through more precision
approaches.
Ground Access Systems: Existing and planned highway and
mass transit systems in the area of the airport.

1. What are some of the most significant changes in airport
security as a result of the events of September 11, 2001?
2. How have threats to aviation security evolved since the
beginning of civil aviation?
)
3. What are the procedures that exist as part of passenger

screening?
4. What technologies are used to perform the screening of carry-
(c
on baggage at airports?
5. What is biometrics? What are some of the technologies that
are considered to apply biometrics to the airport security
environment?
6. What is CAPPS II?
7. What is the Trusted Traveller Program?
Further Readings
Notes
ES
___________________ Books
___________________ Fojt, Martin, (2006), Strategic Direction: The Airline Industry.
___________________
___________________ Martinez, Mario, & Hobbi, Bob, (2009), Building a Customer

___________________
IAP
___________________
___________________ Aviation Ashgate Publishing Ltd.
___________________
Web Readings
___________________
http://en.wikipedia.org/wiki/Airport_security
___________________
) UP http://www.bcasindia.nic.in/aboutus/aboutus.html
(c
UNIT 20: Case Study
Notes
ES
___________________
Case Study ___________________
___________________
Objectives
___________________
___________________
Case Study: Gatwick Airport
___________________
In September 2010, a customer service training project kicked off
at Gatwick for all passengers facing staff based on Tourism South ___________________
East’s Welcome Host Gold course. That is more than 1,600
employees. It is all part of Gatwick’s ambitions to remain in the ___________________
top three of all EU airports in terms of customer service.
___________________
UP
The training programme began with Gatwick’s security team
which has also introduced a ‘mystery shopper’ initiative involving
passengers giving feedback anonymously about their experience
of the security process.
CEO Stewart Wingate said “We’re focusing on our passengers’
experience because that’s key to delivering excellent customer
service. Improving their journey through the airport will not only
show our understanding of what passengers want, but help us
reach our goal of becoming London’s airport of choice”.
Completion of the ‘Delivering Excellent Customer Service’
(Gatwick’s version of Welcome Host Gold) sees participants
awarded with a City & Guilds Level 2 accredited award.
Scott Stanley, Chief Operating Officer said “This training
programme provides our staff with the tools to deliver excellent
customer service and receive this nationally recognised
qualification”.
Results so far have been impressive. As a direct result of the
programme, compliments received by security staff have doubled
and complaints have fallen by 70%.
And if that wasn’t rewarding enough, Gatwick received its own
)
accolade. Bestowed by the Institute of Customer Service, the

award was presented by
John Williams, former Chairman of Tourism South East.
He said “I am delighted to celebrate the success of Gatwick’s
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customer service training. It’s fantastic to see that Gatwick is

putting customer service at the heart of its £1bn investment”.
Questions:
Source: http://www.welcometoexcellence.co.uk/194
(c
) UP
ES
Glossary
Glossary Notes
ES
___________________
Agent: An agent is one who acts for, or in the place of, another, by ___________________
authority from him; one entrusted with the business of another.
___________________
Air Navigation Services: These are those services which monitor and
___________________
control the movement of aircrafts from one place to another by managing
the air traffic. ___________________
Air Rage: Air rage is term used to depict a situation where passengers ___________________
become violent towards crew members or passengers.
___________________
Air Traffic Control: Air traffic control refers to the operations used to ___________________
control air transportation.
___________________
Aircraft: A flying machine holding in the air using the interaction with
___________________
UP
air, if it does not involve the interaction of air with land or water surfaces.
Airline Meal: An airline meal or in-flight meal is a meal served to

passengers on board a commercial airliner.
Airplane: An airplane is a powered fixed-wing aircraft that is propelled

forward by thrust from a jet engine or propeller.
Airport Operations: Airport operations refer to the ground facilities

required for air travel, including runways and navigation aids.
Airports Council International (ACI): The Airports Council
International (ACI) is the international association of the world airports.
Alliance: Alliance is a connection based on kinship, marriage, or common

interest; a bond or tie.
Aviation: Aviation is the design, development, production, operation, and

use of aircraft, especially heavier-than-air aircraft.
Awareness: Awareness is the state or ability to perceive, to feel, or to be
conscious of events, objects, or sensory patterns.
)
Blimp: A blimp, or non-rigid airship, is a floating airship without an

internal supporting framework, or a keel.
Brand: Brand is the name, term, design, symbol, or any other feature
that identifies one seller's good or service as distinct from those of other
(c
sellers.
Business Travel: Business travel is the practice of people travelling for

purposes related to their work.
Capacity: Capacity is the flow of passengers and airplanes that any

particular airport can accommodate without significant delays,
inconvenience, safety, or security problems.
Cargo: Cargo (or freight) is goods or produce transported, generally for

Notes
ES
commercial gain, by ship or aircraft, although the term is now extended
___________________ to intermodal train, van or truck.
___________________ Civil Air Navigation Services Organization (CANSO): CANSO is the
global voice of the companies that provide air traffic control, and
___________________
represents the interests of Air Navigation Service Providers worldwide.
___________________
Clout: A heavy blow with the hand or a hard object.
___________________
Cog in the Machine: It refers to one part of a large system or
___________________ organization.
___________________ Commercialization: 'Commercialization' is the process or cycle of
___________________ introducing a new product or production method into the market.
___________________ Commitment: The state of being bound emotionally or intellectually to a

course of action or to another person or persons.
___________________
UP Competence: Competence is the ability of an individual to do a job
properly.
Concourse: A large open area inside or in front of a public building, as in

an airport.
Conformance: Delivery quality meeting design standards.
Crew: A crew is a body or a class of people who work at a common

activity, generally in a structured or hierarchical organization.
Crisis: A crisis is any event that is, or expected to lead to, an unstable
and dangerous situation affecting an individual, group, community, or
whole society.
CRM: Managing of prospects all the way through the entire sales process
and after.

purchaser) is the recipient of a good, service, product, or idea, obtained
from a seller, vendor, or supplier for a monetary or other valuable
consideration.
)
Customer Charter: This is ‘any formal writing in evidence of a grant,

contract, or other transactions, conferring or confirming titles, rights, or
privileges, or the like.’ It outlines what the company promise to deliver to
(c
the customer.
Customer Expectations: These have been defined as “….. Attitudes held

by customers towards a company. They relate to the product, to the
service given, and the professionalism of the customer contact.”
Customer Lifetime Value: The profitability of a customer over the

period of a business relationship; can include multiple transactions and
purchases.
Glossary
Customer Relationship Analytics: Set of tools to perform reporting,

Notes
ES
analysis and data mining.
Customer Service: The provision of service to customers before, during ___________________
and after a purchase. ___________________
Customer Service Representative: The brand ambassador of the ___________________

company and a direct point of contact for the company’s customers.
___________________
Customs: Customs is an authority or agency in a country responsible for
___________________
collecting and safeguarding customs duties and for controlling the flow of
goods including animals, transports, personal effects and hazardous items ___________________
in and out of a country.
___________________
Debt Loads: The amount of debt or leverage that a company is carrying
___________________
on its books.
___________________
Direction Sign: Airfield sign that identifies the designations of
___________________
is located.
UP
intersecting taxiways leading out of the intersection at which an aircraft
Directional Marker: An airway marker located on the ground and used

to give visual direction to an aircraft; consists of an arrow indicating true
north and arrows indicating names and states of the nearest towns.
Diverse: It refers to something that is made up of distinct characteristics,

qualities, or elements.
Documentation: A set of documents provided on paper, or online, or on

digital or analog media, such as audio tape or CDs.
Efficiency: It refers to the extent to which time or effort is well used for
the intended task or purpose.
Environment: The surroundings of a physical system that may interact

with the system by exchanging mass, energy, or other properties.
ERP: ERP helps a manufacturer or other business manage the important

parts of its business.

)
happen.
External Customer: An external customer of an organization is a

customer who is not directly connected to that organization.
(c
Facilitation: Facilitation is a combination of measures and resources

intended to make facilities services more accessible as well as to speed up
the process that passengers must go through before boarding and after
landing.
Final Approach (IFR): The flight path of an aircraft which is inbound
to the airport on an approved final instrument approach course,
beginning at the final approach fix or point and extending to the airport
Notes or the point where circling for landing or missed approach is executed.
ES
___________________ Final Approach Areas: Areas of defined dimensions protected for
aircraft executing instrument approaches.
___________________
___________________ Freight Forwarder: A freight forwarder is a person or company that

organizes shipments for individuals or corporations to get goods from the
___________________
manufacturer or producer to a market, customer or final point of
___________________ distribution.
___________________ Fuel Hedging: Fuel Hedging is a contractual tool some large fuel
consuming companies, such as airlines, use to reduce their exposure to
___________________
volatile and potentially rising fuel costs.
___________________
Global Positioning System (GPS): A satellite-based navigation system
___________________ that will enhance user-preferred routing, reduce separation standards,
___________________
and increase access to airports under instrument meteorological
UP conditions (IMC) through more precision approaches.
Globalization: Globalization is the process of extending social relations

across world-space.
Grievance: This is a real or imaginary wrong which causes resentment

and is regarded as grounds for complaint. It is a feeling of resentment or
injustice at having been unfairly treated.
Ground Access Systems: Existing and planned highway and mass
transit systems in the area of the airport.
Ground Crew: The ground crew is the support crew supplying the
aircraft with fuel and maintenance, as opposed to the aircrew.
Hot Air Balloon: The hot air balloon is the oldest successful human-
carrying flight technology.
Immigration: Immigration is the movement of people into a country or

region to which they are not native in order to settle there.
Inbound cargo: Inbound cargo is freight that is shipped in from

somewhere else.
)
Innovate: Innovation is the development of new values through solutions

that meet new requirements, inarticulate needs, or old customer and
market needs in value adding new ways.
(c
Interface: A point where two systems, subjects, organizations, etc., meet

and interact.
Internal Customer: An internal customer is a customer who is directly

connected to an organization, and is usually (but not necessarily) internal
to the organization. Internal customers are usually stakeholders,
employees, or shareholders, but the definition also encompasses creditors
and external regulators.
Glossary
International Air Transport Association (IATA): IATA is an

Notes
ES
international industry trade group of airlines headquartered in Montreal,
Quebec, Canada, where the International Civil Aviation Organization is ___________________
also headquartered.
___________________
Legitimate Complaint: A legitimate complaint is any complaint which
___________________
is not based on gender, race, creed or colour. Problems with service,
product and personnel are all considered to be legitimate complaints. ___________________
Leisure Travel: Travel undertaken for pleasure, as opposed to business ___________________

travel. It is often used to indicate a trip of seven days or longer,
___________________
regardless of its purpose.
___________________
Low Cost Carrier: A low-cost carrier or low-cost airline is an airline that
generally has lower fares and fewer comforts. ___________________
Lower Airfares: As a consequence of technical improvements, growing ___________________

demands and competition, airfares have been reduced considerably, ___________________
UP
making air transportation affordable to the general public. This in turn
triggered additional passengers and airfreight demands.
Luggage Sticker: A sticker attached to the passenger luggage registered

for transportation in the airplane.
Moments of Truth: In customer service, instance of contact or

interaction between a customer and a firm (through a product, sales force,
or visit) that gives the customer an opportunity to form (or change) an
impression about the firm.
No-frills Airlines: No-frills airlines are airlines that offer low fares but
eliminate all non-essential services, such as complimentary drinks
snacks, in-flight entertainment systems, business-class seating etc.
Outbound cargo: Outbound cargo is freight that is being shipped off to

somewhere else.
Pallet: A pallet is a flat transport structure that supports goods in a

stable fashion while being lifted by a forklift, pallet jack, front loader or
other jacking device.
)
Passenger: A passenger is a person who travels in a vehicle but bears

little or no responsibility for the tasks required for that vehicle to arrive
at its destination or otherwise operate the vehicle.
(c
Policy: A policy is a principle or rule to guide decisions and achieve

rational outcomes.
Privatization: It is the process of transferring ownership of a business,

enterprise, agency, public service or public property from the public sector
(a government) to the private sector, either to a business that operate for
a profit or to a non-profit organization.
Privilege: A special advantage, immunity, permission, right, or benefit

Notes
ES
granted to or enjoyed by an individual, class, or caste.
___________________
Retail: Retail is the sale of goods and services from individuals or
___________________ businesses to the end-user.
___________________ Return on Capital Employed: Establishes the relationship between the
profit and the capital employed.
___________________
Safety: Safety can be defined to be the control of recognized hazards to
___________________
achieve an acceptable level of risk.
___________________
Safety Management Systems (SMS): SMS is a term used to refer to a
___________________ comprehensive business management system designed to manage safety
___________________ elements in the workplace.
___________________ Security: Security as a condition is the degree of resistance to, or

protection from, harm.
___________________
UP Security Check: A manual or technical check to detect weapons, objects
or substances which must it be assumed can be used in an illegal act
against civil aviation.
Service Profit Chain: measures relationship between loyalty,

satisfaction and profitability.
Service Strategy: It is a business strategy that optimizes a company's

provided services through the effort of synchronizing: service parts and
resources forecasting, service partners, workforce technicians, and service
pricing.
Terminal: A station at the end of a transportation line or at a major

junction on a transportation line. The terminal is composed of freight and
passenger transit infrastructures as well as infrastructures for plane
accommodation.
Time Bank: A time bank consists of a set of flight arrivals followed by a

set of departures.

)
competencies as a result of the teaching of vocational or practical skills

and knowledge that relate to specific useful competencies.
Travel Agent: Someone who sells or arranges trips or tours for

customers.
(c
Unique Selling Proposition (USP): It is the factor or consideration

presented by a seller as the reason that one product or service is different
from and better than that of the competition.
Zeppelin: A Zeppelin is a type of rigid airship pioneered by the German

Count Ferdinand von Zeppelin in the early 20th century.

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UNIT 20: Case Study

Airport Customer Service PE

Dr S R Das Dr S P S Narang Dr Sanket Goyal

SLM Development Team

Mr Kapil Mehra Mr A N Sinha

Course Code: BBCS-101D

Course Name: Airport Customer Service

Version: July 2013

© MPower Applied Learning Enterprise

Unit 1 Overview of Aviation Industry....................................................................................... 3

Airline Industry ............................................................................................................ 57

Unit 11 International Civil Aviation Organization (ICAO) ................................................... 107

Unit 15 Case Study .................................................................................................................. 155

Unit 16 Understanding the Customer .................................................................................... 161

Unit 22 Branding Strategy for Customer Service at Airports ............................................... 219

Unit 23 Airport Shopping ........................................................................................................ 229

Unit 24 Airport Security .......................................................................................................... 237

Unit 25 Case Study .................................................................................................................. 251

Glossary ............................................................................................................................................ 253

UNIT 2: AIR TRANSPORT SYSTEM  Introduction

Next Generation Air Transportation System

Different Types of Air Transportation

UNIT 5: CASE STUDY

 Role of Aviation Industry ___________________

visit and conduct business in places once considered remote.

Role of Aviation Industry

Aviation plays a vital role especially in emergencies like air

geographical features en-route to your destination. That is why our

quick and also in saving peoples lives by segmenting air charter

Check Your Progress

environmental issues has heightened the environmental concerns

management structure and style, degree of autonomy, and funding.

economic and operational performance and on their relationship

Check Your Progress

Fill in the blanks:

Developments in Airport Sector

partial or totally private sector airline ownership, primarily to

The other most significant development within the airline

aligning themselves to these groupings with code-sharing,

Check Your Progress

Fill in the blanks:

significant economic and ……………………..

Airlines: Investors’ Perspective

look favourably upon companies that hedge at least 30% of their

Study Debt Loads

___________________ For example:

Revenue per Available Seat Mile

Consider the Value of the Airline’s Hubs

to pick up customers, refuel, and head out to another destination.

feeder airports and because they are centrally located to a variety

For example: ___________________

Fleet Modernization Costs

Landing the Points

been trimming ticket costs significantly. This has forced other

Put simply, while this price competition might be favourable for

While investments in airlines may not have been considered

Lesson End Activity

group discussion on fuel hedging in a group of 4 students.

Commercialization: 'Commercialization' is the process or cycle of

___________________ Globalization: Globalization is the process of extending social

___________________ Debt Loads: The amount of debt or leverage that a company is

Aviation, Ashgate Publishing Ltd.

 History of Air Transport ___________________