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Module 5 ATEM
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What is hub-and-spoke scheduling?
Centralized flight operations with a main hub connecting various spokes.
Advantages of hub-and-spoke systems?
Increased city-pair coverage, strong load factors, and lower costs.
Disadvantages of hub-and-spoke systems?
Congestion delays, higher operating costs, and environmental impacts.
What is the multiplier effect of hub connections?
Expands the number of city-pairs served with the same flight mileage.
How does a carrier dominate a hub?
By establishing a solid network of spokes, making it challenging for competitors.
Benefits of hubbing for travelers?
Lower airfares, access to large and small cities, and frequent flights.
What is congestion delay in hub airports?
Rapidly increasing delays as aircraft volume approaches airport capacity.
How does hub concentration affect baggage handling?
Short connecting times lead to high mishandled baggage expenses.
What are the limitations of DOT data in airline scheduling?
Data accuracy issues, limited flight details, and delayed availability.
What role do computer programs play in airline scheduling?
Aid in complex scheduling tasks, considering various operational constraints.
Why were aircraft replacements simpler pre-deregulation?
Stable business, predictable costs, and regular re-equipment cycles.
How did deregulation change fleet decisions?
Increased competition, focus on cost efficiency, and entry of nonunion carriers.
Influence of hub-and-spoke systems on lift capacity?
Favors smaller aircraft with shorter full-payload ranges.
What is the trend toward leasing in the airline industry?
Increased popularity due to tax law changes, accounting for over half of acquisitions.
Characteristics of an operating lease?
Noncancelable short-term lease, lessor retains full title, and lessee shows no debt.
Impact of consolidation on fleet rationalization?
Reduction of aircraft types, increased interdependence, and potential for longer depreciation periods.
Significance of fleet commonality in aircraft purchases?
Enhances operational flexibility, cost-effectiveness, and type-rating requirements.
Factors considered in fleet planning?
Fuel prices, used aircraft availability, resale value, interest rates, and labor costs.
Role of noise restrictions in replacing older aircraft?
Higher noise levels contribute to consideration for newer, quieter models.
Why is the trend toward larger aircraft in demand?
To bypass congested hubs and provide point-to-point service, reducing delays.
Why is the trend toward larger aircraft in demand?
To bypass congested hubs and provide point-to-point service, reducing delays.
How has the hub-and-spoke system influenced the variety of aircraft needed by airlines?
Airlines serving more varied markets require a wider variety of aircraft.
What is a significant impact of consolidation on the airline industry's fleet rationalization?
Proliferation of specific aircraft types operated by carriers, leading to a need for fleet rationalization.
How does consolidation impact the behavior of the airline industry under conditions of oligopoly?
It may lead to tacit understandings on fare levels and structures, with greater emphasis on service differentiation.
What is the main reason for purchasing aircraft in large numbers?
Fleet commonality, enhancing operational flexibility and cost-effectiveness.
How has the trend toward leasing impacted the financing choices of airlines?
Leasing became more popular due to tax law changes, accounting for over half of all aircraft acquisitions by 2006.
What are some characteristics of an operating lease?
Noncancelable short-term lease, lessor retains full title, and the lessee shows no debt on its books.
Why did leasing become more attractive in the late 1980s?
Changes in tax laws, including the elimination of investment tax credits and reduced allowable deductions for depreciation.
What has been a significant effect of consolidation and fleet rationalization on aircraft replacement cycles?
Aircraft tend to stay in fleets longer, extending replacement cycles and potentially limiting the frequency of new aircraft introductions.
What role does noise restrictions play in the decision to replace older aircraft?
Higher noise levels of older planes contribute to their consideration for replacement by newer, quieter models.
How does the quest for the lowest unit cost influence the selection of lift capacity in aircraft for hub-and-spoke systems?
Smaller aircraft with shorter full-payload ranges are favored to achieve the lowest unit cost.
What is fleet planning in the airline industry?
Determining aircraft needed for corporate strategy.
Who coordinates the aircraft selection process?
Generalist group (e.g., corporate planning)
What are the four areas of information in fleet planning?
Current resources, objectives, industry outlook, marketing.
What is included in current resources?
Present fleet, financial and technical data.
Define corporate objectives in fleet planning.
Broad goals like profitability and market share.
What does projected industry environments include?
Economic outlook, industry forecast, carrier's performance.
What is marketing strategy in fleet planning?
Implementation plan based on resources and objectives.
What is the fleet-planning model used for?
Determine future aircraft requirements and conditions.
What are system constraints in fleet planning?
External (e.g., airport capacity) and internal factors.
What does aircraft evaluation cover?
Design, performance, maintenance, costs, economics.
What are design characteristics in aircraft evaluation?
Dimensions, weight, power plants, seating, etc.
Define physical performance in aircraft evaluation.
Parameters like payload-range, takeoff, landing, and noise.
What does maintenance needs include in aircraft evaluation?
Spare parts, compatibility, product support, costs.
What is considered in acquisition costs?
Aircraft cost, spare parts, financing, warranties.
Define operating economics in aircraft evaluation.
Aircraft's contribution to profitability.
What is included in tentative fleet planning?
Projected earnings, retirements, order options.
What is the purpose of progress reviews in fleet planning?
Input from management, minimize new material in final presentation.
What is the Boeing approach to design and development?
Create a family of aircraft to meet airline needs.
Who are Boeing's competitors before the merger?
McDonnell-Douglas and Airbus Industrie.
What is the role of government regulations in aircraft design?
Cover safety, noise, emission standards.
Role of existing fleet in fleet-planning decisions
It is a significant factor for operational efficiency.
Assistance of computer-generated fleet-planning models
They provide output on aircraft requirements and conditions.
Examples of external system constraints in fleet planning
Airport capacity, regulatory requirements, environmental considerations.
Assessment of the impact of altering information in fleet-planning model
Through computer-generated models.
Significance of a constrained operating plan in fleet planning
It breaks down aircraft types based on constraints.
Challenges faced by the manufacturer during design and development of a new aircraft
Financial investments, airline interests, regulatory compliance.
Success factors of the Boeing 757 in terms of operating costs
Fuel efficiency, advanced technology, and two-pilot operation.
Key feature in Airbus Industrie’s design philosophy
High degree of commonality in systems and structures.
Risk mitigation by manufacturers in designing a new aircraft
Involving airlines early for input, focusing on generic categories.
Relationship between airline profitability and aircraft orders
Direct relationship; profitable airlines are more likely to order.
Transverse Commonality
Common aspects of a subsystem across a family of aircraft or all families of a manufacturer.
Temporal Commonality
Common aspects of a subsystem evolving over time and crucial for aircraft with a long lifecycle.
Constructs Derived from Two Types of Commonality
Standardization, reusability, and modularity.
Impact of Standardization on Development and Production Costs
Minimizes the costs of developing and producing an entire range of aircraft.
Functional Standardization Measured from the Customer's Perspective
Measured by the cost of pilots' training and the number of crew errors.
Reusability in Fleet Planning
The capacity of subsystems, production tools, and methods to be reused in another aircraft model.
Aspects Impacted by Subsystem Reusability
Development time for the enterprise.
Intrinsic vs. Extrinsic Reusability of Production Tools
Intrinsic refers to inherent capability while extrinsic refers to the degree of reuse in changing environments.
Modularity's Focus from the Customer's Point of View
Mainly impacts the maintenance of the product rather than being apparent to pilots.
Modularity's Impact on Maintenance Measured by Airline Companies
By considering the practical impact across all types of aircraft in the airline's fleet.
Key Determinant of Training Cost for Airline Company
The length of additional training needed to qualify pilots on a new model.
Reason for Determining Effective Length of Additional Training by Aviation Administrations
To ensure compliance with standards set by aviation authorities like the FAA and EASA.
Influence of Fleet Commonality on Direct Maintenance Costs for Airlines
Reduces direct maintenance costs, especially in areas like engine maintenance.
Significance of Cockpit Commonality in Fleet Management
Reduces pilot training time and associated costs.
Reason for Lower Direct Maintenance Costs in Airlines with Commonality Concepts
Due to the exchangeability of engines within one family or type.
Challenge in Airline Fleet Management Regarding Fleet Commonality
Balancing the benefits of commonality with the need for aircraft suitable for different routes and services.
Impact of Fleet Commonality on Inventory Management for Spare Parts
Simplifies inventory management, with fewer unique spare parts needed due to shared components.
What is the challenge in airline fleet management regarding fleet commonality?
Balancing the benefits of commonality with the need for aircraft suitable for different routes and services.
How does fleet commonality impact inventory management for spare parts?
Simplifies inventory management, with immediate availability of spares being a dominant factor.
Explain the role of customer satisfaction in the airline industry.
Critical for encouraging repeat business and positive word-of-mouth marketing.
What is the focus of customer perception in evaluating airline services?
Comfort, convenience, and alignment of services with customer expectations.
Why is fleet commonality considered essential in the competitive airline industry?
It provides a competitive advantage by minimizing costs and streamlining operations.
Temporal commonality vs. transverse commonality in fleet planning
Temporal commonality deals with the evolution of subsystems over time, while transverse commonality focuses on common aspects across different products.
Two main perspectives of standardization in fleet planning
From the manufacturer's point of view, it impacts design and manufacturing, while from the customer's perspective, it relates to functional aspects.
Importance of functional standardization in airline companies
It influences the cost of pilots' training and the number of crew errors, affecting overall operational efficiency.
Concept of intrinsic reusability in production tools
Intrinsic reusability refers to the inherent capability of production tools to be used for specified purposes after their initial installation.
Significance of extrinsic reusability in new aircraft development
It reflects the effectiveness of a system's intrinsic reusability in different environments, impacting the investment needed for new aircraft development.
Main impact of modularity from a manufacturing perspective
Modularity mainly impacts maintenance, influencing the practicality of inventory management for spare parts.
Role of customer satisfaction in airline service evaluation
It is crucial for encouraging client retention and can be utilized for "word of mouth" advertising.
Contribution of fleet commonality to airline efficiency in aircraft operations scheduling
Fleet commonality allows for easier scheduling due to the immediate availability of one type of aircraft if another is undergoing maintenance.
Meaning of "Aircraft on Ground" (AOG) in fleet commonality
AOG indicates that an aircraft has a serious problem, leading to its prohibition from flying. Relevant to fleet commonality as all aircraft of the same type being grounded can result in revenue loss.
Extension of fleet commonality involvement to other parties in the aviation industry
Fleet commonality involves parties like MRO (Maintenance, Repair, and Overhaul), manufacturers, ground handlers, etc., contributing to its overall efficiency.
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Module 5 ATEM flashcard deck study guide for high school students, covering airline scheduling and fleet planning.
Aviation
Airlines
Fleet Management
Aircraft
Hub-and-spoke System
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