3. INTRODUCTION TO AIRLINE
OPERATIONS
UNIT 01
Learning Objectives:
• Global airline industry and Sri Lankan Airline industry
• Drivers of global air transportation
• Core areas of airline operation
• Overview of airline planning process
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11. Drivers of Global Air Transportation
• Increasing integration of world
economies and societies.
Globalization
• Population growth, urbanization,
and per capita income
Demographics
• Reduction in rules and restrictions
on airline competition
Liberalization
• Determine the cost of providing air
transportation. Ex: fuel and labor
Factors of
production
12. International Air Transport Association
(IATA)
▪ IATA - The trade association for the world’s airlines formed in April
1945 in Havana, Cuba.
▪ It is headquartered in Montreal, Canada
• It consists of 290 airlines representing 117 countries.
• By improving the
understanding of the air
transport industry among
decision makers and
increasing awareness of the
benefits that aviation
brings to national and
global economies.
Represents the
airline industry
• By assisting airlines in
simplifying processes and
increasing passenger
convenience while reducing
costs and improving
efficiency.
Leads the
airline industry
• By helping airlines to
operate safely, securely,
efficiently, and
economically under clearly
defined rules.
Serves the airline
industry
13. • IATA codes are an integral part of the travel industry. There
are three main coding systems:
1. Airline designators (Ex: AF = Air France)
To identify an airline for all commercial purposes, including
reservations, timetables, tickets, tariffs, air waybills and in airline
interline telecommunications.
Code is unique and never duplicated
2. Location identifiers (Ex: GVA = Geneva)
Designating many airports around the world.
IATA Coding System
14. 3. Accounting or prefix codes (Ex:603 = SriLankan Airlines)
For transport documents (At the beginning of a ticket
number, Airway bill)
The codes are fundamental to the smooth running of
hundreds of computer systems which have been built around
these coding systems for passenger and cargo traffic
purposes.
15. IATA Code ICAO Code
Sri Lankan Airlines UL ALK
Bandaranaike
International Airport
CMB VCBI
Ratmalana Airport RML VCCC
Mattala Rajapaksa
International Airport
HRI VCRI
16. • Flag Carrier of Sri Lanka
• Primary Hub
• Alternative Hub
• Number of countries and
destinations served
• Fleet
• Number of passengers carried
(2018)
• Tonnes of cargo carried (2018)
• Total revenue and Total capital
expenditure (2018)
• Frequent Flyer Programme
19. The turnaround of an aircraft is the result of a number of
landside and airside processes.
20. Airline’s Goals
• Airlines are operating in a competitive market.
• The ultimate goal of airlines is maximizing the profit.
• There can be some other goals that will lead to profit
such as:
– Operational goals
– Marketing goals
– Strategic goals
• Airlines are trying to find the best (In terms of profit)
schedules that are consistent with their other goals.
