5.5 Today’s Taking Flight Industry (Airlines and Airports)
The Taking Flight industry (i.e., airline, airport, aviation) has connected our world for more than a century. This sector of hospitality and tourism has overcome challenges and grasped opportunities to revolutionize travel. Today, the global airline industry consists of more than 5,000 airlines operating approximately 39,000 aircrafts (Supply Chain Management Outsource, 2019). In 2017, the world’s airlines cracked the 4-billion passenger mark for the first time (Statista, 2024). By 2023, the industry employed 11.3 million people, contributing over $700 billion to global GDP (Aviation Benefits Beyond Borders, n.d.).
The United States has the world’s largest air travel market, with 666 million passengers in 2021 (Statista Research Department, 2023a). To meet the high demand, U.S. American passenger airlines are some of the world’s largest, with American, United, and Delta ranked among the world’s largest. Indeed, the world’s largest airline by fleet size and passengers serviced is American Airlines, based in the United States. Several factors explain the airline dominance in the U.S. market, mainly the country’s large population, geographic positioning, and economic power. Combined with the lack of a high-speed passenger rail network, these three factors create enormous demand for domestic flights, which is usually the only feasible option for long-distance travel.
“These numbers would indicate that the skies are becoming an increasingly crowded space. According to FlightRadar24, who tracks aircraft around the world [and is based in Sweden], there are over 16,000 planes in the air at any given time on peak traffic days” (TravelWeek, 2017, para. 5).
Classifying Airplanes, Airports, And Flight Routes
There are numerous ways to classify this industry. Airline size, routes, home country, locations serviced, and many other ways exist and are used by industry professionals. Furthermore, the airport industry is a separate entity than the airline industry. Tourists may not recognize this difference but industry professionals need to.
Flight routes are one method for differentiating airlines and airports. Airport managers undertake extensive segmentation projects to optimize complex interconnected airline networks. Meanwhile, airlines utilize hub-and-spoke systems built around flow patterns to maximize their profits while hopefully helping passengers reach their destinations most easily. Connection times and loyalty programs allow airlines to differentiate consumers, and subsequently they can tailor services toward premium long-haul travelers. Low-cost carriers notice the customers that the primary carriers often overlook and market the lowest rates. These low cost carriers institute yield management techniques such as the elimination of seat classes to meet consumer demand at specific price points. Furthermore, by targeting short, point-to-point trips, they can appeal to price-driven leisure passengers.
Regional airlines support major airline networks by providing flows from smaller markets. Cargo carriers operate at night for time-definite global package deliveries. Charter services customize flights for groups headed to popular vacation spots, athletic events, and corporate retreats. Business jet operators focus on flexible on-demand flights for wealthy travelers and corporate executives. Staffing, maintenance, and ground operations are similarly segmented between pilots, technicians, and customer service teams based on specialized expertise.
Airport managers also monitor passenger types, origins, dwell times, and ground transport needs to efficiently design terminals, concessions, and landside access from rail networks to rideshares. Advanced analytics further empower dynamic real-time segmentation. Overall, aviation’s complex ecosystem relies on multi-layered segmentation across operating models, route structures, passenger demographics, and operational personnel to maximize safety, profitability, and the travel experience.
The Future, the Trends, and Taking Flight
Several major trends will impact the next era of air transportation. Aircraft electrification aims to reduce emissions alongside sustainable aviation fuels. Higher aircraft productivity through new designs and materials increases efficiency. Enhanced passenger experience via connectivity, amenities, and space optimizes comfort. Streamlined security and contactless technology ease airport stress. Rise of smart airports with automation and artificial intelligence improves operations. Drones and air taxis open urban air mobility. Pandemic recovery continues by restoring confidence. Alliances between global players spread networks and services. Volatility from energy prices, politics, and economic fluctuations persist. Agile leadership steers aviation through headwinds as this integral sector continues to transform travel and trade worldwide.
Career Opportunities in Aviation
The airline, airport, and aviation industry offers dynamic, challenging, and rewarding career paths. Airlines need pilots, flight attendants, mechanics, ground handlers, customer service reps, analysts, managers, and executives. Airports require operators, technicians, administrators, planners, controllers, police, fire rescue, and specialty workers. Manufacturers hire engineers, technicians, logistics experts, human resource and finance personnel. Government aviation agencies need air traffic controllers, safety inspectors, and policy-makers. Beyond technical roles, the industry needs creative marketers, IT specialists, lawyers, and accountants. A passion for aviation coupled with the right qualifications and training can launch a stellar career. This industry constantly evolves, but will always need talented, dedicated professionals.
Attributions
- Figure 5.10: American.Airlines.Boeing.737-800.YUL.2009 by Patrick Cardinal is released under CC BY 2.0
- Figure 5.11: Number of scheduled passengers boarded by the global airline industry from 2004 to 2022 by Ezra Leigh is released under CC BY 4.0
Established paths or corridors followed by aircraft during flight operations, connecting origin and destination airports, determined by factors such as air traffic control, airspace restrictions, and navigational considerations.
A transportation network design where a central hub or hub airport serves as a primary transfer point for passengers and cargo traveling between multiple spokes or destination points, maximizing connectivity and efficiency.