Questions and Answers of Transportation A Global Supply Chain Perspective

4. How do time-series or trend analysis methods differ from causal models? Define trend, cyclical variation, seasonal variation, and irregular variation. What is the purpose of smoothing the data?
3. What is meant by a causal, or model, forecast? Define dependent and independent variables and correlation.What are the three characteristics that variables must have to be used in building a
2. Describe how forecasts can be used by firms for analysis, planning, and control purposes.
12. Describe the relationship between the following marketing departments: marketing services, services planning, sales planning, and sales and services. Which department would the pricing and
11. What is an overhaul work report? How have major carriers’ jet overhauls changed since the early 1960s?Give several reasons air carriers have increased contract maintenance in recent years.
10. What is the primary role of the E & M administration? Most carriers divide their stations into various classes of maintenance service. Describe the classes. Distinguish between routine scheduled
8. Which major administration would the following staff departments fall under: telecommunications, corporate insurance, accounts payable, facilities and airport planning, investigation and security,
5. Distinguish between line and staff responsibilities. Why are line workers referred to as volume-related?How did staff organizations get started?
3. Why is planning such an important management function within an airline? Who plans? Define management by objectives. What is a policy and procedures manual? How does a procedure differ from a
2. How does decision making differ at the various levels of management? “Sometimes no decision is a decision.” Discuss. It has been said that management decision making was easier before
1. Define management. What is meant by the different levels of management? How are they distinguishable?Which titles do we normally find at each level of management?
4. Describe the principles of organization planning that are of particular significance to the air carriers
1. Define management and organization
11. Why can’t airlines fine-tune capacity to match demand? Define no-shows. When load factors approach 80 percent or higher, we can expect some passengers to be turned away. Why? What is
10. Define load factor. What is the relationship between load factor and costs per unit? Explain. Why have load factors increased in recent years? Why are all public transportation modes subject to
5. Give some examples of how government (particularly the federal government) has assisted the industry financially over the years. Why is there such a high technological turnover in the industry?
4. Why are the carriers so mutually dependent? How have pricing practices changed since the prederegulation days? What was the major form of competition in the prederegulation era? Discuss some of
2. Define economies of scale, scope, and density. How do they apply to the major carriers? When can economies of scale turn into diseconomies of scale? Give several examples of economies of scale in
1. Why is the airline industry considered oligopolistic? What are some of the barriers to becoming a certificated carrier today? Compare the barriers today with those before deregulation. How has the
9. Explain the significance of load factors in relation to costs and services offered
4. Define economies of scale, scope, and density and discuss how they relate to the airline industry
6. Highlight the industry’s performance, in terms of traffic and finances, during the 1960s, 1970s, and 1990s.Describe the cyclical nature of the airline industry in terms of profitability. What
5. Who is responsible for financial and traffic data collection within the Department of Transportation?Describe the role of this government bureau. What is the Interline Traffic
3. Describe the role of the major and national carriers. Identify some of the carriers in each category. How did the regional carriers get started? Describe a typical regional carrier in terms of its
2. Explain how the certificated airline industry has changed since deregulation in terms of expansion,consolidation, and concentration. Describe several innovations pioneered by the major air
1. How did the trunk and local-service carriers evolve? What was the role of the supplemental carriers?Discuss some of the problems faced by the industry in the three decades preceding deregulation.
7. Highlight the significant traffic and financial statistics during the period 1960–2013, and demonstrate the cyclical nature of the airline industry
6. Describe the airline certification process and DOT reporting requirements
1. Define trunk, supplemental, and local-service carriers, and describe their role in the prederegulation era
10. How many active private pilots were there in the United States at the end of 2012? It’s been said that“personal flying is just a rich man’s sport.” Do you agree? Disagree? Why?
9. Why did the general aviation aircraft manufacturers concentrate on developing aircraft to meet the needs of the business market as early as the 1950s? What are some of the factors that have caused
8. Why is the general aviation support industry like a three-legged milk stool? Discuss the important interrelationship among manufacturers, the service industry, and users. Name six general aviation
5. Approximately how many airports are there in the United States? How many public-use airports?Approximately how many airports in the United States are served by the certificated and noncertificated
4. Discuss the significance of the General Aviation Revitalization Act. How have the manufacturers responded in recent years?
2. List the primary-use categories. Distinguish between business and corporate use. What is the primary role of NBAA? AOPA? Define aerial application, aerial observation, and aerial other. What is
9. Discuss the factors causing businesses to seek the benefits of their own transportation
2. Give a statistical summary of general aviation in terms of total aircraft, number of aircraft produced annually, type of aircraft, number of pilots, and number of airports
1. Define general aviation and describe its segments in terms of primary use
5. What is the primary purpose of the NASAO?
4. What is the primary function of the following associations: the ATA, RAA, AIA, GAMA, ADMA, NBAA, and AOPA? Describe the functions performed by the following airline associations: Airline Clearing
3. Briefly describe the genesis of the NTSB. What is the board’s primary function? What are some of its other functions? Give the steps involved in a major accident investigation. What is included
2. The FAA has its roots in which early piece of legislation? When was the FAA created as an agency?Describe some FAA functions with regard to air traffic control, aircraft and aviator certification,
1. Describe some of the events that led to the creation of the Department of Transportation. What are the primary objectives of this department? Briefly describe the major role of each of the 11
2. Describe the major functions of the FAA, including some new developments in air traffic control and engineering
1. Discuss the primary role of the DOT and its administrations
11. How will the development of new technology like SATS impact the future of aviation? How will this impact aircraft manufacturers, general aviation, and commercial airline operations?
10. How was the term fixed-base operator coined? Who were some of the early general aviation aircraft manufacturers? What was the prevailing thinking of the light-aircraft manufacturers after World
9. Explain how the certificated airline industry has changed since deregulation in terms of expansion, consolidation, and concentration. Describe the role of commuter/regional carriers and the
8. What were some of the events leading up to the passage of the Airline Deregulation Act of 1978?Describe the position of the CAB regarding deregulation under the chairmanship of Alfred E. Kahn.
7. What was the primary purpose of the Civil Aeronautics Act of 1938? What does the following statement mean: “The five members of the CAA exercised quasi-judicial and quasi-legislative
6. Describe some of the reasons government is rooted in the economic and physical characteristics of the air transport industry. What was the major object of the Air Commerce Act of 1926? How did the
5. How did Boeing arrive at the design for the 707? What were some of the events leading up to the establishment of the Federal Aviation Agency? List and briefly explain several major economic
4. Who were the leading commercial aircraft manufacturers in the post-World War II period? What was Boeing doing at the time? What position did the CAB take when the major carriers wanted to
3. What was the first modern airliner? How did Douglas Aircraft get started? Describe several technical developments that took place in the 1930s. Why did the federal government tighten its grip over
2. What role did Walter Folger Brown play in developing the early CAM routes? What was the Spoils Conference? Which three carriers picked up the northern, central, and southern cross-country
1. When was the first regular domestic air mail service provided? Who flew the mail in the years before 1925? What was the major significance of the Kelly Act? Of the Air Commerce Act? Who was the
8. Give a brief summary of the deregulation movement before the Airline Deregulation Act of 1978
7. Understand the significance of the federal legislation leading up to deregulation in the 1970s
2. Explain the significance of the Kelly Act and the Air Commerce Act of 1926
11. What is meant by emerging market opportunities in air transport? Which manufacturers have invested into the future of developing nations?
10. Describe the contribution of air transportation to the efficient conduct of business and its impact on personal and pleasure travel.
8. Define air carrier, interstate air transportation, and air commerce. Both air carriers and general aviation fly“for compensation or hire.” What distinguishes the two?
7. What are some of the factors that led to the decline in general aviation aircraft sales? Why have the corporate and commuter segments of the general aviation industry done so much better than the
5. What is the primary cause for consolidation in the commercial aircraft manufacturing industry? Why has Boeing accused Airbus Industrie of unfair competition? What has been Airbus’s response? How
4. What are some of the causes and effects of the significant downsizing in the two major segments of the government market? Describe the outlook for the civil aviation market in the early to
1. Define aerospace industry, and describe the role of both the AIA and the GAMA. The industry is a vital factor in four particular areas of the U.S. economy. What are they?
6. Define air transportation industry and distinguish between certificated air carriers and general aviation
5. Define related aerospace products and services
1. Define aerospace industry and describe its basic characteristics and economic magnitude
7. Other than airline travel as we know it today, what other forms of air transport are being developed?Describe how this emerging technology could impact the future of the airline industry.
6. What are the main failures in airline business planning? Describe each in detail.
5. What are the main forces impacting the airline environment? What are the main infrastructure issues?
4. What are the six aviation regions of the world? Describe the regulatory trends associated with each region.
3. What are the top three costs for an airline typically? In addition, list other typical airline operating expenses. What is the name of the index that produces such costs? How often is the index
6. Describe how evolving new technology may impact the future of aviation
▪▪ Prepare for a successful interview with prospective employers
▪▪ Prepare a cover letter and résumé
▪▪ Describe the primary sources of information available in locating job openings
▪▪ Identify the various aviation and aerospace industries and career paths and jobs with ﬁrms in those industries
▪▪ Make a self-assessment of your talents, abilities, and preferences in preparing for career choices
13. Describe the emergence of new types of airline business models. Discuss whether or not the long-haul low-cost model works. Define a network specialist. Define a product specialist. Define a price
12. Describe globalization as it applies to the airline industry. Why is it so difﬁcult for U.S.carriers to establish hubs outside the United States? Why are bilateral agreements between the United
11. W hat is an open-sky agreement? Cabotage? What was the purpose of the Commission to Ensure a Strong, Competitive Airline Industry? In 1995, the commission outlined a“Plan of Action” regarding
10. W hat major event prompted the new U.S. policy on international aviation in the late 1970s? Describe some of the goals enumerated under the U.S. policy statement.Discuss some of the objectives of
9. Discuss some of the major changes that took place in international aviation during the three decades following the Bermuda Agreement. How would you describe the CAB’s position toward IATA during
8. What were some of the factors leading up to the Bermuda Agreement? What was the position of the United States? Discuss some of the principles established under the Bermuda Agreement.
7. What is the broad aim of IATA? What is the function of the four permanent committees of IATA?
6. How many rights of freedom are there? What was the Two Freedoms Agreement? The Five Freedoms Agreement? What is meant by bilateral agreement? Discuss some of the provisions under the Chicago
5. What is the purpose of ICAO?
4. Discuss some of the reasons for the Chicago Conference of 1944. What was the purpose of this convention? Describe some of the important articles under this convention.What were some of the areas
3. Why is there a need for international air law? What were the major agreements resulting from the Warsaw Convention? How did the Hague Protocol and the Guatemala City Protocol affect the provisions
2. Discuss several of the principles governing the drafting of the Paris Convention. What provisions were designed to ensure the safety of air navigation? Discuss several of the principles that were
1. What were the two principal theories regarding the national sovereignty of airspace?Which theory prevailed?
▪▪ Understand the need for new airline business models and describe recent attempts.
▪▪ Discuss some of the factors underlying the movement toward globalization in international aviation, including airline alliances and airport alliances
▪▪ Explain current U.S. policy on international aviation
▪▪ Discuss some of the major changes in international aviation over the past three-plus decades
▪▪ Describe the Chicago standard form
▪▪ Discuss the eight freedoms of the air
▪▪ Discuss the major articles of the Chicago Conference, and describe the major purpose of ICAO

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