The Structure And Economy Of The Airlines And Air Transport Management Strategies

The Airline industry consists of an enormous network of routes that unite cities throughout the country and cities and undeniably the work. Over this set of connections a large number of Airlines carry passengers and cargo on scheduled service.

To make clear the structure of the industry at the beginning, it is useful to define the industry when the Civil Aeronautics Act was passed in 1938, only a small number of Air carriers were operating regular service on given routes, and when they received government certification, they became known as a certified route, scheduled air carriers the provisions that used to this day. The Act empowered the Civil Aeronautics Board (CAB) to structure the interstate airlines through regulation of passenger fares, air mail rates, route entry and exits, mergers and acquisitions and inter carrier agreements. There were two classes of common carrier air transportation:

The trunk airlines, which provided schedule services on fixed routes, these carriers came under section 401 of the board’s regulations and thus they were referred to as 401 carries.

Small non transport carriers, which operating from fixed base, which finished service on request, without schedule, transportation service were incidental to the principal business activities of sale and service of air craft and flight instruction.

The trunk lines claimed that they had grandfather rights (original certificate) to provide service feeding into the trunk routes especially in the postwar period. The CAB assured the trunks that the feeders would be carefully watched and not permitted to provide service between the major metropolitan areas. Small carriers who provide services in intrastate level were exempt from CAB economic regulation and were eligible for government subsidies to cover losses.

Despite all the problems in past, the industry grew rapidly more than tenfold growth in passenger between 1950 and 1970. Early 1970 the first regulation reform was called, prohibition on competing on fares and route we introduced.

Airline Management strategies are no different than any other organization. Management is the process of the achieving an organization’s goal through the coordinated performance of the time specific function, planning, organizing, staffing, direction and controlling.

In past where major carrier where in formative period, process of management were very simpler. But today major carrier employee more than 80,000 staff, so the management strategies are became more complex and advance. Well said bye Chris Argus, a noted management theorist “Organization emerge when the goal they seek to achieve are too complex for any one man”.

In the highly competitive airline market today, it is very vital to the effective organizational structure, which can be prove to be the necessary advantage one firm has over another. Managing air carriers during the regulated era required a different set of skills than those most in demand since deregulation because the control of the civil aeronautics board (CAB) exercised over routes, prices and equipment.

When it comes to keeping the cost down new entrant and low cost carrier have an advantage over established and legacy carriers. Once way to do this is by hiring “right” people to do the “right” job, and establish of a lean organizational structure. The key to success of manager is that each participant must be able to contribute something to the business. There is another proven strategy in the Air line Management which is to be cautious of the number of line pilot that make up management team. Generally pilots are not making an effective management. It is also recommended to have second lead person to be part of the management, however for new start-up airlines it is not necessary. Every Airline has policy and procedures manual, usually prepared by the personnel department. A policy is guide: employees do have some desecration in its implication. When it’s come to take decision in specific situation, procedure specifies in more details. Rules and Regulations indicate in very precise terms.