Republic of the Philippines

North Eastern Mindanao State University

Cantilan Campus
Cantilan, Surigao del Sur, 8317
Telefax No. 086-212-5132
Website: www.nemsu.edu.ph

DEPARTMENT OF BUSINESS AND MANAGEMENT

Bachelor of Science in Tourism Management

TRANSPORTATION MANAGEMENT

IRISH P. RONQUILLO
INSTRUCTOR
AY 2022 - 2023

CHAPTER 5: AIR TRANSPORTATION

TPC 9 – Transportation Tourism 1|Page

UNIT I: Aviation

SPECIFIC LEARNING OUTCOMES:

At the end of the lesson, the students should be able to:

1. Discuss the history of aviation.

2. Explain the importance of air transportation in the tourism industry.
3. Identify the different categories of air carriers and aircraft.
4. Explain the air transport structure.
5. Identify the categories of airlines.
6. Differentiate domestic and international airlines' services and characteristics.
7. Name the new trends in the aviation and airline industry.
8. Explain the role and the airport activities.
9. Identify the various types of airline ownership.
10. Describe the different airport facilities.

Air Transportation

INTRODUCTION

TPC 9 – Transportation Tourism 2|Page

 The aviation industry has gone a long way since the first airplane took to the skies.
It is the youngest among all major modes of transportation. Sea and land travel have
been moving man since ancient times. Air transport is a late bloomer, as it was only in
the early 1900s that the Wright brothers made the first successful flight in the history of
the airplane as we know it today.
This chapter discusses general concepts and principles in aviation. It starts with
the definition of general terms, such as aviation. It also covers the history from an
international and local viewpoints. It has a section on the role and significance of air
travel in the development, categories, and types of aircraft, routes, and services. It talks
about regulatory bodies involved in aviation, as well as the structure of air transport.

DISCUSSION

What Is Aviation?

One of the best ways to start a topic is to make sure definitions are the same for
all. Air transportation uses a number of jargons and terms that may have a different
meanings in other fields.
Aviation
The word aviation is a general term that originated from the French word "avi"
meaning bird (Aviation, n.d.). The researched meaning of aviation is a noun that means
the design, development, production, operation, and use of aircraft, especially heavier-
than-air aircraft. This definition covers a system that has a reference to air
transportation.
General Aviation
The International Civil Aviation Organization (2009) defines general aviation as "all
civil aviation operations other than scheduled air services and non-scheduled air
transport operations for remuneration or hire. It involves activities such as business
flights, air charter, private aviation, flight training, ballooning, paragliding, parachuting,
gliding, hang gliding, aerial photography, foot-launched powered hang gliders, air
ambulance, crop dusting, charter flights, traffic reporting, police air patrols, and forest
fire fighting. General aviation is a wider term.
The airports in the Philippines see a number of general aviation activities. Aside
from the number of commercial flights taking off and landing at Ninoy Aquino
International Airport, general aviation contributes to the airport's congestion.
Commercial Aviation
Though commercial aviation is part of general aviation, commercial aviation can be
differentiated as activities that involve flying for business, remuneration, or hire. The
best example is the scheduled flights of commercial airlines that operate in major
airports
Military Aviation
Military aviation involves using military aircraft and other flying machines. It is
usually done for national security, warfare, logistics deployment to military personnel,
and other military purposes. It may include carrying civilian passengers who need to be
evacuated or repatriated
History of Aviation
Aviation history can be divided into two categories. One is lighter-than-air
development aircraft, and another is heavier-than-air development aircraft. There are
several significant events that helped shape the aviation world as it is today through
these two categories.
TPC 9 – Transportation Tourism 3|Page
Lighter-Than-Air Aircraft Development
When aviation is talked about, what comes to mind are airplanes that are heavier-
than-air aircraft. But other than heavier-than-air aircraft, there are also lighter-than-air.
Examples of lighter-than-air aircraft are hot air balloons and airships or blimps.
The first successful hot air balloon was created by the French brothers, Joseph
Michel and Jacques-Etienne Montgolfier. The flight in November 1783 took to the air
science teacher Jean-Francois Pilâtre de Rozier and the Marquis d'Arlandes, Francois
Laurent (The Montgolfier Brothers' Balloon, n.d.). The brothers experimented using paper
and fabric for the balloon that used fire to produce hot air. A basket was attached to the
balloon where the passengers boarded (The First Hot Air Balloon Flight, n.d.).
In Philippine airspace, the first flight was on a hot air balloon flown by Portuguese
acrobat C. F. Marquez who performed during a carnival exhibition in Manila on April 4,
1909. His performance was recorded in Philippine aviation history as the first air travel.
Today, hot air balloons are used for countryside sightseeing tours in places like
Cappadocia, Turkey and Serengeti, Tanzania. The Philippines also hosts a ballooning
event once a year in Pampanga for ballooning and aviation enthusiasts.
Another lighter-than-air aircraft is the airship, dirigible, or blimp. An airship is a
rigid cigar- shaped aircraft with propellers. In the article of Freudenrich (n.d.), Henri
Giffard built the first successful airship in 1852. The more popular airship, the Zeppelin,
was designed by Count Ferdinand von Zeppelin in 1900. It had a rigid metal framework
and used hydrogen gas.
The Zeppelins were used for both military and commercial purposes. The most
famous among the Zeppelins was the Hindenburg, which carried passengers across the
North Atlantic (The Editors of Encyclopædia Britannica, 2019). It was tragically destroyed
by fire in 1937. That event ended the career of the Zeppelin as a commercial aircraft.
Though not very often, blimps can still be seen flying today in other countries
outside the Philippines. It is used more for advertising and TV commercials than for other
purposes.

Regulatory Bodies
Global Industry Associations and Organizations
With the huge disparity between the superpowers and the economically smaller
countries, the global industry associations and organizations serve as the intermediaries
and coordinators among the members airlines and countries (Zapanta, 2009). There is
often a difference in interests for each member airline and country. Here is where IATA
and ICAO come in by being impartial to the influence of the stronger countries and
bigger airlines.
International Air Transport Association
IATA is a very important organization in air transportation as well as in the tourism
Industry. Who is IATA? It is short for International Air Transport Association. IATA is a
group organized by 57 International airlines in 1945, and by 2020, it has 290 member
airlines, 480 strategic partners, and 100,000 accredited travel and cargo agencies (IATA
Members, n.d.). Though IATA is an association, they have regulatory functions over their
members. E IATA IATA (pronounced as ahy-yo-to).
It was stated in the IATA's webpage that they were established with the mission to
represent, lead, and serve the airline industry (Vision and Mission, n.d.). Today, they still
take this mission to heart. They have four key performance targets. These include the
following: (1) generate cash of up to $120 billion for airline relief by 2020; (2) reduce
supplies cost, as well as taxes by $50 million: (3) help the industry with the IATA industry
TPC 9 – Transportation Tourism 4|Page
restart plan; and (4) secure IATA's existence through sustainability strategies (Vision and
Mission, n.d.).
Significance of IATA to Air Transportation
IATA was involved in the development and improvement of the global airline
industry. Among the different sectors of the tourism industry, air transportation is the
sector that is probably the most organized. This can be attributed to the standards set by
IATA. IATA standardization is seen not only in the IATA codes used today and air
transportation, but in other tourism sectors as well. Since the members of IATA are
international airlines, the need for clear communication was critical. Airline pilots, as well
as other players of the air transport, need to ensure they understand each other clearly
despite the differences in language, dialect, accent, and even culture. One of the
manifestations of this standardization and efficiency is codes. The IATA three-letter city
and airport code are still in use today.

International Civil Aviation Organization

International Civil Aviation
Organization is a United Nations
specialized agency, established by UN
member states in 1944 (About ICAO,
n.d.). In 2020, there are 193 member
states (or countries) that include the
Philippines. It was created to
administer and govern the Convention
on International Civil Aviation, also
known as the Chicago Convention (The
History of ICAO and ICAO (pronounced
as ohy-key-ol the Chicago Convention,
n.d.). They were tasked to formulate policies for the safe, efficient, secure, economically
sustainable, and environmentally responsible civil aviation.
Importance of ICAO to Aviation
ICAO is involved in aircraft accident investigations, particularly concerning
international airlines. They look into the causes of the disasters. They try to learn who or
what was the reason for the mishaps. They investigate to prevent similar accidents in
the future.
Philippine Regulatory Bodies
Civil Aeronautics Board (CAB)
The Civil Aeronautics Board or CAB is a Philippine
government agency with a mandate to ensure the economic
well-being of air transportation in the country (Civil
Aeronautics Board, n.d.). With this mandate, it is similar to
LATA, which is also concerned with the economics of air
transport. The CAB's economic role is to ensure that domestic
airlines offer fairly priced airfare. It also sees to it that
competition among the carriers is fair. Airlines need to get the
CAB's approval if they have airfare increase or decrease.
To further protect the airline-riding public, CAB,
together with DTL, created the Air Passenger Bill of Rights.
This document, signed in December 2012, stipulates the obligation of airlines to their
passengers, such as amenities to be provided in case of delays, compensation for
bumping passengers in case of overbooking, and others passenger rights.

TPC 9 – Transportation Tourism 5|Page

Civil Aviation Authority of the Philippines
The Civil Aviation Authority of the Philippines or CAAP is
another Philippine government agency for air
transportation. If CAB has a mandate on the economic
aspect, CAAP is tasked to secure the technical and
operational aspects of the airline industry.
CAAP is also tasked to ensure the safety of air travel in
the Philippines, Included in the task of operating and
maintaining national airports is ensuring that air navigation
equipment and facilities comply with ICAO requirements,
especially the international airports.
When there are accidents involving air transportation, CAAP gets involved in the
investigation. They search for the cause of the accident to prevent similar incidents in
the future. They function as the local ICAO as both are involved in aircraft accident
investigations.
CAAP is the counterpart of the Land Transportation Office (LTO) for air
transportation as a licensing office. They are tasked with issuing licenses to pilots, air
traffic controllers, and other licensed personnel in air travel. They also issue
airworthiness for aircraft and airplanes registered in the Philippines.
CHAPTER 5: AIR TRANSPORTATION
UNIT II: Airline Industry

Airline Industry
Airlines are the main movers in the aviation industry. Traveling by air may be the
most expensive mode of transport, but it is also the fastest and most convenient, which
compensates for the higher fares paid for by passengers. On one hand, to be part of an
airline is fun since one can travel the world for free. Being a cabin crew is glamourous
and fulfilling. On the other hand, prestige often goes with being an airline pilot.
This chapter will define the basic terms in airline, elaborate the types of airlines
and classification of commercial airlines, learn about flag carriers as well as why Low-
Cost Carriers (LCC) are successful, and talk about trends in air travel and how these
trends may have been changed by COVID-19.
Definition of Airline
An airline, as defined by Dictionary.com, is a company or an organization that
provides air transportation (Airline, n.d.). Typically, it is a part of a system that operates
at airports using airplanes as its vehicles. Airlines provide a means to move people or
goods from one point to another.
Airline Industry
To be called an industry, the organizations must be having similar activities,
products, or services. It has been defined as a collection of enterprises in a particular
area or field (Industry, n.d.).
With the number of airlines around the world or even within the Philippines, there
is definitely an airline industry. The airline industry is well-organized. Though airline
companies are competitors, they have an atmosphere of friendly competition. Through
IATA, airlines are able to share the best practices to help the industry flourish.
Types of Air Carriers or Airlines
Air carriers or airlines can be classified according to their area of operation Airlines
can either be domestic, regional, or international.
TPC 9 – Transportation Tourism 6|Page
 CAAP records show 70 airports within the Philippines. This includes international
domestic, military, and private. But not all 70 have night landing facilities. This limits the
operation of domestic flights during the daytime for most domestic airports. To connect
the many islands of the country, air transportation is the fastest means to travel. Most of
the major cities and provinces have airports where airlines can operate. The bigger cities
often serve as a hub where smaller cities connect.
Domestic Airlines
Domestic airlines operate within the same country. Domestic airlines limit their
operations to flights between the different cities or provinces in the country like the
Philippines. Another example would be the U.S. domestic airlines that serve routes within
the 50 states of the United States (Holt & Poynor, 2016). The idea is that the operations
are only within the same country where the airlines are registered.
Domestic carriers offer less expensive fares because of the shorter distance
between domestic points. Passengers on domestic flights are commuters who usually
need to travel from their home city to their place of work.
Regional Airlines
Regional airlines can be used for those air carriers that operate within a
geographical region. For example, airlines that operate outside their country but within
the Asian region. These airlines are usually limited in their destination because of the
type of airplane they use. Some airplanes only have a maximum flying time of 3-6 hours.
With such a limitation, they can fly only to destinations within the airline's geographic
region.
International Airlines
International airlines are different from regional airlines in the distance they travel.
Typically, International airlines travel to destinations with more than 7 hours of flying
time. Airlines that fly long-haul routes fall in this type.
Classification of Commercial Airlines
One classification of commercial airlines is based on the type of work they do.
1. Legacy or heritage
2. Low-cost airlines or full-service airlines
3. Air taxi
4. Boutique airlines
Legacy or Heritage or Full-Service Airlines
Legacy or heritage airlines are often used for airlines that started the commercial
airline industries. These are airlines with international scheduled service. They often
operate with the more traditional or old-school strategies. The name legacy is indicative
of the fact that they are the oldest airline companies operating. They are also known as
full- service carriers (FSC).
Low-cost Airlines
Low-cost airlines are more often known as low-cost carriers (LCCs). Some call them
budget airlines. The emergence of the LCC has had the strongest impact on the success
of the legacy carrier. LCCs are airlines that often offer low fares. The term "low cost"
applies to both the consumers and the passengers and from the airline management.
What is essential to the success of LCCs is their low cost of operations. Airline operation
and management is capital-intensive, which is why air tickets are expensive. Only the
LCCs that operate with lower costs are able to profit even if they offer low fares.

TPC 9 – Transportation Tourism 7|Page

Air Taxis or Air Charter
Air taxis or air charters are air transportation companies that do not provide
scheduled services. The name taxi gives the notion of hiring an aircraft for a private
function. Usually, air taxis are smaller airplanes or private jets. These can also be
helicopters. On the other hand, air charters use larger airplanes, such as Airbus and
Boeing, pending the need of the group who will charter.
Air taxis are often hired on one-off transactions. Air charters can also be used for
routes that are not yet operated as scheduled flights but may have a large number of
passenger traffic. At the height of Boracay's popularity, there were so many Chinese
wanting to visit the island that entrepreneurs saw the opportunity to have regular
charter flights. The charter flights run three to five times weekly for at least six months
continuously.
Boutique Airlines
Boutique airlines are not low-cost carriers but are often mistaken as such. Most
boutique carriers use small airplanes, giving the impression of being low-cost. However,
their fleet is mostly small jets because they serve small airports that are the gateway to
high-end destinations or resorts. These airlines offer fares that are more expensive than
most commuter fares.

Another classification is on the network they service.

Point-to-point carriers are airlines that only service passengers from the origin city
to the registered destination. For passengers traveling on different airlines that are
point- to-point airlines, their checked-in bags are only carried until the destination of the
carrier. Passengers will have to retrieve their bags and check in again for the next flight
even if it is within two to three hours apart.
Network carriers are airlines that operate on a network structure. They offer
scheduled service through a hub-and-spoke system (Sin & Chellappa, 2013, p. 1-6).
Flag Carriers
Flag carriers traditionally are government-owned airlines. When the airline industry
started, it was common for the government to start, operate, and manage their own
airlines. With the privatization of airlines in the 1980s, the meaning of flag carriers has
changed.
Today, flag carriers are transportation companies whose equipment (like ships or
airlines) carry the flag of the country where they are registered (Singh, 2019), in the
Philippines, Philippine Airlines and Cebu Pacific aircraft are registered with CAAP, making
both airlines the flag carriers.

TPC 9 – Transportation Tourism 8|Page