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Unit 2 TRAVEL

How do airline companies stimulate regular business travelers to stay their loyal customers?

The airlines are now very prominent in the tourist industry and it is important to remember that there are two kinds of airline operations, scheduled and nonscheduled. A scheduled airline operates on fixed routes at fixed times according to a timetable that is available to the public.

A nonscheduled airline operates on routes at a time when there is a demand for the service. The nonscheduled airline is, in other words a charter operation that rents an aircraft. The competition between the two has been very tense.

As seating capacity increased with introduction of newer, larger and faster planes, the airlines were able to offer a percentage of their seats for sale through travel agents or tour operators. They introduced special fares and by means of these special fares, they were able to increase their business substantially. The greatest growth in tourism began with the introduction of these ITX fares, as they are called, in 1950’s and 1960’s.

The nonscheduled airlines got a start largely as a result of government business. In addition to transporting supplies or military personnel, the nonscheduled airlines chartered (rented) entire flights to groups that were traveling to the same destination – businessmen and their wives attending a convention, for example, members of a music society attending the Festival.

Charter inclusive tours were sold at even lover fares than the inclusive tours on scheduled airlines. All transportation is subject to regulation by government, but the airlines are among the most completely regulated of all carriers. The routes they can fly, the number of flights and many other matters are controlled by means of bilateral agreements between different countries in the case of international airlines.

What problems can airline personnel face dealing with business travelers?

The psychology of air rage is a new area of study, and there are almost as many explanations as 2 examples.

Most analysts of the phenomenon blame alcohol, but many people now think that the airlines are at fault.

To cut costs, they are cramming ever more passengers into their aircraft, while reducing cabin crew, training and quality of service, all of which increase passenger frustration. In addition, there is increasing concern about another cost-cutting exercise, which could seriously harm passengers’ health: cabin ventilation.

What is “code-sharing”? What other types of cooperation in airline business do you know?

Code sharing is a business term which was first originated in the airline industry in 1990 when the Australian airline, Qantas Airways and the US's American Airlines combined services between an array of US domestic cities and Australian cities. The code share was part of a "cooperative services" agreement between the two carriers before the various airline alliances were formed.

Code sharing is a commercial agreement between two airlines that allows passengers to use a ticket from one airline to travel on another.

Most major airlines today have code sharing partnerships with other airlines, and code sharing is a key feature of the major airline alliances. Lots of airlines, including all the big legacy lines, are involved with code sharing arrangements. Those arrangements permit you to buy through tickets on routs that no single airline can serve. They may also provide opportunities to cut the cost of your airfare.

There are different types of cooperation between airlines:

-associations (like International Association of Air Transport (IATA) which deals with the air navigation, the security of air transport and the coordination of flight services),

- particular global airline alliances and code share agreements that have multiplied over the past years.