![Europe to South American in 3 Days Poster (19482266291)](https://upload.wikimedia.org/wikipedia/commons/d/d1/Europe_to_South_American_in_3_Days_Poster_%2819482266291%29.jpg)
An airline is a company that provides
air transport services for traveling
passengers and
freight
Cargo consists of bulk goods conveyed by water, air, or land. In economics, freight is cargo that is transported at a freight rate for commercial gain. ''Cargo'' was originally a shipload but now covers all types of freight, including tran ...
. Airlines use
aircraft
An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...
to supply these services and may form
partnership
A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments o ...
s or
alliances with other airlines for
codeshare agreements, in which they both offer and operate the same flight. Generally, airline companies are recognized with an
air operating certificate or license issued by a governmental aviation body. Airlines may be scheduled or
charter
A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified. It is implicit that the granter retains superiority (or sovereignty), and that the rec ...
operators.
The
first airline was the German
airship
An airship or dirigible balloon is a type of aerostat or lighter-than-air aircraft that can navigate through the air under its own power. Aerostats gain their lift from a lifting gas that is less dense than the surrounding air.
In early ...
company
DELAG
DELAG, acronym for ''Deutsche Luftschiffahrts-Aktiengesellschaft'' (German for "German Airship Travel Corporation"), was the world's first airline to use an aircraft in revenue service. It operated a fleet of zeppelin rigid airships manufacture ...
, founded on November 16, 1909.
The four oldest non-airship airlines that still exist are the Netherlands'
KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
(1919),
Colombia's
Avianca
Avianca S.A. ( acronym in Spanish for ''Aerovias del Continente Americano S.A.'', "Airways of the American Continent") is a Colombian airline. It has been the flag carrier of Colombia since December 5, 1919, when it was initially registered und ...
(1919),
Australia's
Qantas
Qantas Airways Limited ( ) is the flag carrier of Australia and the country's largest airline by fleet size, international flights, and international destinations. It is the world's third-oldest airline still in operation, having been founde ...
(1920)
and the Czech Republic's
Czech Airlines
Czech Airlines j.s.c. (abbreviation: ČSA, cz, České Aerolinie, a.s.) is the flag carrier of the Czech Republic. Its head office is located in the Vokovice area of Prague's 6th district and its hub is Václav Havel Airport Prague. The compa ...
(1923).
Airline ownership has seen a shift from mostly personal ownership until the 1930s to government-ownership of major airlines from the 1940s to 1980s and back to large-scale
privatization
Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
following the mid-1980s.
Since the 1980s, there has also been a trend of major airline
mergers and the formation of airline alliances.
The largest alliances are
Star Alliance
Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its CEO is Jeffrey Goh and its headquarters is located in Frankfurt am Main, Germany. , Star Alliance is the largest of the three global alliances by passenge ...
,
SkyTeam and
Oneworld
Oneworld (stylised as oneworld; Computer reservations system, CRS: *O) is an airline alliance founded on 1 February 1999. The alliance's stated objective is to be the first choice airline alliance for the world's frequent international traveller ...
, and these three collectively account for more than 60% of global commercial air traffic in 2015.
Airline alliances coordinate their passenger service programs (such as
lounges and
frequent-flyer programs
A frequent-flyer program (American English) or frequent-flyer programme (British English) is a loyalty program offered by an airline.
Many airlines have frequent-flyer programs designed to encourage airline customers enrolled in the program ...
), offer special
interline tickets and often engage in extensive codesharing (sometimes systemwide).
, the
largest airline
The largest airlines in the world can be defined in several ways. , Delta Air Lines is the largest by revenue, assets value and market capitalization, China Southern Air Holding by passengers carried and revenue passenger mile, American Airlines ...
by passengers carried and fleet size was the
American Airlines Group
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed on December 9, 2013, by the merger of AMR Corporation, the parent company of American Airlines, and US Airways ...
, while
Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
was the largest by
revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
.
Lufthansa Group
Deutsche Lufthansa AG (), commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second- largest airline in Europe in terms of passengers carried. Lufthansa is one of the five founding ...
was the largest by number of
employees,
FedEx Express
FedEx Express, a subsidiary of FedEx Corporation, is a major American cargo airline based in Memphis, Tennessee, United States. As of 2020, it is one of the world's largest airlines in terms of fleet size and freight tons flown. It is the na ...
by freight
ton-kilometers,
Turkish Airlines
Turkish Airlines ( Turkish: ''Türk Hava Yolları'') is the national flag carrier airline of Turkey. , it operates scheduled services to 340 destinations in Europe, Asia, Africa, and the Americas, making it the largest mainline carrier in the ...
by number of countries served and
UPS Airlines
UPS Airlines is a major American cargo airline based in Louisville, Kentucky. The second-largest cargo airline worldwide ( in terms of freight volume flown), UPS Airlines flies to 815 destinations worldwide. A wholly owned subsidiary of UPS (Unit ...
by number of destinations served
(though
United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. was the largest passenger airline by number of destinations served).
History
The first airlines
DELAG
DELAG, acronym for ''Deutsche Luftschiffahrts-Aktiengesellschaft'' (German for "German Airship Travel Corporation"), was the world's first airline to use an aircraft in revenue service. It operated a fleet of zeppelin rigid airships manufacture ...
, ''Deutsche Luftschiffahrts-Aktiengesellschaft I'' was the
world's first airline.
It was founded on November 16, 1909, with government assistance, and operated airships manufactured by The
Zeppelin Corporation. Its headquarters were in
Frankfurt
Frankfurt, officially Frankfurt am Main (; Hessian: , "Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on its na ...
. The first
fixed-wing
A fixed-wing aircraft is a heavier-than-air flying machine, such as an airplane, which is capable of flight using wings that generate lift caused by the aircraft's forward airspeed and the shape of the wings. Fixed-wing aircraft are distinct ...
scheduled airline was started on January 1, 1914, from
St. Petersburg, Florida
St. Petersburg is a city in Pinellas County, Florida, United States. As of the 2020 census, the population was 258,308, making it the fifth-most populous city in Florida and the second-largest city in the Tampa Bay Area, after Tampa. It is the ...
, to
Tampa, Florida
Tampa () is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and ...
, operated by the
St. Petersburg–Tampa Airboat Line
The St. Petersburg–Tampa Airboat Line (SPT Airboat Line) was the first scheduled airline using a fixed wing aircraft. The airline provided service between St. Petersburg, Florida and neighboring Tampa across Tampa Bay a distance of about 23 m ...
. The four
oldest non-dirigible airlines that still exist are the Netherlands'
KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
(1919),
Colombia's
Avianca
Avianca S.A. ( acronym in Spanish for ''Aerovias del Continente Americano S.A.'', "Airways of the American Continent") is a Colombian airline. It has been the flag carrier of Colombia since December 5, 1919, when it was initially registered und ...
(1919),
Australia's
Qantas
Qantas Airways Limited ( ) is the flag carrier of Australia and the country's largest airline by fleet size, international flights, and international destinations. It is the world's third-oldest airline still in operation, having been founde ...
(1921),
and the Czech Republic's
Czech Airlines
Czech Airlines j.s.c. (abbreviation: ČSA, cz, České Aerolinie, a.s.) is the flag carrier of the Czech Republic. Its head office is located in the Vokovice area of Prague's 6th district and its hub is Václav Havel Airport Prague. The compa ...
(1923).
Europe
Beginnings
![Klm-poster-1919](https://upload.wikimedia.org/wikipedia/commons/b/bf/Klm-poster-1919.jpg)
The earliest fixed wing airline in Europe was
Aircraft Transport and Travel, formed by
George Holt Thomas
George Holt Thomas (31 March 1869 – 1 January 1929) aviation industry pioneer and newspaper proprietor. Holt Thomas founded, in 1911, the business which became Aircraft Manufacturing Company Limited or Airco.
Son and grandson of successful ar ...
in 1916; via a series of takeovers and mergers, this company is an ancestor of modern-day
British Airways
British Airways (BA) is the flag carrier airline of the United Kingdom. It is headquartered in London, England, near its main hub at Heathrow Airport.
The airline is the second largest UK-based carrier, based on fleet size and passengers ...
. Using a fleet of former military
Airco DH.4
The Aircraft Manufacturing Company Limited (Airco) was an early British aircraft manufacturer. Established during 1912, it grew rapidly during the First World War, referring to itself as the largest aircraft company in the world by 1918.
Ai ...
A biplanes that had been modified to carry two passengers in the
fuselage
The fuselage (; from the French ''fuselé'' "spindle-shaped") is an aircraft's main body section. It holds crew, passengers, or cargo. In single-engine aircraft, it will usually contain an engine as well, although in some amphibious aircraft t ...
, it operated relief flights between
Folkestone and
Ghent
Ghent ( nl, Gent ; french: Gand ; traditional English: Gaunt) is a city and a municipality in the Flemish Region of Belgium. It is the capital and largest city of the East Flanders province, and the third largest in the country, exceeded in ...
. On July 15 , 1919, the company flew a proving flight across the
English Channel
The English Channel, "The Sleeve"; nrf, la Maunche, "The Sleeve" (Cotentinais) or ( Jèrriais), (Guernésiais), "The Channel"; br, Mor Breizh, "Sea of Brittany"; cy, Môr Udd, "Lord's Sea"; kw, Mor Bretannek, "British Sea"; nl, Het Kana ...
, despite a lack of support from the British government. Flown by Lt. H Shaw in an
Airco DH.9 between
RAF Hendon
Hendon is an urban area in the Borough of Barnet, North-West London northwest of Charing Cross. Hendon was an ancient manor and parish in the county of Middlesex and a former borough, the Municipal Borough of Hendon; it has been part of Grea ...
and
Paris – Le Bourget Airport
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. Si ...
, the flight took 2 hours and 30 minutes at £21 per passenger.
On August 25, 1919, the company used
DH.16s to pioneer a regular service from
Hounslow Heath Aerodrome
Hounslow Heath Aerodrome was a grass airfield, operational 1914–1920. It was in the London borough of Hounslow, and hosted the British Empire's first scheduled daily international commercial flights, in 1919. The site today includes the main r ...
to Le Bourget, the first regular international service in the world. The airline soon gained a reputation for reliability, despite problems with bad weather, and began to attract European competition. In November 1919, it won the first British civil
airmail
Airmail (or air mail) is a mail transport service branded and sold on the basis of at least one leg of its journey being by air. Airmail items typically arrive more quickly than surface mail, and usually cost more to send. Airmail may be the ...
contract. Six
Royal Air Force
The Royal Air Force (RAF) is the United Kingdom's air and space force. It was formed towards the end of the First World War on 1 April 1918, becoming the first independent air force in the world, by regrouping the Royal Flying Corps (RFC) and ...
Airco DH.9A
The Airco DH.9A was a British single-engined light bomber designed and first used shortly before the end of the First World War. It was a development of the unsuccessful Airco DH.9 bomber, featuring a strengthened structure and, crucially, repla ...
aircraft were lent to the company, to operate the airmail service between
Hawkinge
Hawkinge ( ) is a town and civil parish in the Folkestone and Hythe district of Kent, England. The original village of Hawkinge is actually just less than a mile (c. 1.3 km) due east of the present village centre; the village of Hawkinge ...
and
Cologne
Cologne ( ; german: Köln ; ksh, Kölle ) is the largest city of the German western States of Germany, state of North Rhine-Westphalia (NRW) and the List of cities in Germany by population, fourth-most populous city of Germany with 1.1 m ...
. In 1920, they were returned to the Royal Air Force.
Other British competitors were quick to follow –
Handley Page Transport
Handley Page Transport Ltd was an airline company founded in 1919, soon after the end of the First World War, by Frederick Handley Page.
The company's first planes were Handley Page Type O/400 bombers modified for passenger use. They flew a Lo ...
was established in 1919 and used the company's converted
wartime Type O/400 bomber
A bomber is a military combat aircraft designed to attack ground and naval targets by dropping air-to-ground weaponry (such as bombs), launching aerial torpedo, torpedoes, or deploying air-launched cruise missiles. The first use of bombs dropped ...
s with a capacity for 12 passengers, to run a
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
-
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
passenger service.
The first French airline was
Société des lignes Latécoère, later known as Aéropostale, which started its first service in late 1918 to Spain. The
Société Générale des Transports Aériens
The Société Générale des Transports Aériens (SGTA) was a French airline founded in 1919. It operated until 1933 when its assets were incorporated in the newly created Air France airline.
History
Initially known as the ''Lignes Aériennes Fa ...
was created in late 1919, by the
Farman
Farman Aviation Works (french: Avions Farman) was a French aircraft company founded and run by the brothers Richard, Henri, and Maurice Farman. They designed and constructed aircraft and engines from 1908 until 1936; during the French national ...
brothers and the
Farman F.60 Goliath plane flew scheduled services from
Toussus-le-Noble
Toussus-le-Noble () is a commune in the Yvelines department in the Île-de-France region in north-central France.
History
In 1969, the communes of Châteaufort and Toussus-le-Noble were separated from the Essonne department and added to Yvelin ...
to
Kenley
Kenley is an area within the London Borough of Croydon. Prior to its incorporation into Greater London in 1965 it was in the historic county of Surrey. It is situated south of Purley, east of Coulsdon, north of Caterham and Whyteleafe and w ...
, near
Croydon
Croydon is a large town in south London, England, south of Charing Cross. Part of the London Borough of Croydon, a local government district of Greater London. It is one of the largest commercial districts in Greater London, with an extensi ...
, England. Another early French airline was the
Compagnie des Messageries Aériennes
''Compagnie des messageries aériennes'' was a pioneering French airline which was in operation from 1919–23, when it was merged with Grands Express Aériens to form Air Union.
History
Compagnie des messageries aériennes was established Februa ...
, established in 1919 by
Louis-Charles Breguet
Louis Charles Breguet (2 January 1880 in Paris – 4 May 1955 in Saint-Germain-en-Laye, Île-de-France) was a French aircraft designer and builder, one of the early aviation pioneers.
Biography
Louis Charles Breguet was the grandson of Lo ...
, offering a mail and freight service between
Le Bourget Airport,
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
and
Lesquin Airport
Lille Airport (french: link=no, Aéroport de Lille) is an airport located in Lesquin, south-southeast of Lille, a city in northern France. It is also known as Lille-Lesquin Airport or Lesquin Airport. Lille is the principal city of the Lille M ...
,
Lille
Lille ( , ; nl, Rijsel ; pcd, Lile; vls, Rysel) is a city in the northern part of France, in French Flanders. On the river Deûle, near France's border with Belgium, it is the capital of the Hauts-de-France Regions of France, region, the Pref ...
.
![Bundesarchiv Bild 102-00007, Berlin, Start eines Junkers-Flugzeuges](https://upload.wikimedia.org/wikipedia/commons/7/7c/Bundesarchiv_Bild_102-00007%2C_Berlin%2C_Start_eines_Junkers-Flugzeuges.jpg)
The first German airline to use heavier than air aircraft was
Deutsche Luft-Reederei
Deutsche Luft-Reederei (D.L.R.), was a German airline established in December 1917 which started operating in 1919.
History
The name means "German (Deutsche) Air (Luft) Shipping Company (Reederei)". D.L.R. was reorganized as Aero Lloyd AG in 1 ...
established in 1917 which started operating in February 1919. In its first year, the D.L.R. operated regularly scheduled flights on routes with a combined length of nearly 1000 miles. By 1921 the D.L.R. network was more than 3000 km (1865 miles) long, and included destinations in the Netherlands, Scandinavia and the Baltic Republics. Another important German airline was
Junkers Luftverkehr, which began operations in 1921. It was a division of the aircraft manufacturer
Junkers, which became a separate company in 1924. It operated joint-venture airlines in Austria, Denmark, Estonia, Finland, Hungary, Latvia, Norway, Poland, Sweden and Switzerland.
The
Dutch
Dutch commonly refers to:
* Something of, from, or related to the Netherlands
* Dutch people ()
* Dutch language ()
Dutch may also refer to:
Places
* Dutch, West Virginia, a community in the United States
* Pennsylvania Dutch Country
People E ...
airline
KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
made its first flight in 1920, and is the oldest continuously operating airline in the world. Established by aviator
Albert Plesman, it was immediately awarded a "Royal" predicate from
Queen Wilhelmina
Wilhelmina (; Wilhelmina Helena Pauline Maria; 31 August 1880 – 28 November 1962) was Queen of the Netherlands from 1890 until her abdication in 1948. She reigned for nearly 58 years, longer than any other Dutch monarch. Her reign saw World Wa ...
. Its first flight was from
Croydon Airport
Croydon Airport (former ICAO code: EGCR) was the UK's only international airport during the interwar period. Located in Croydon, South London, England, it opened in 1920, built in a Neoclassical style, and was developed as Britain's main air ...
,
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
to
Amsterdam
Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the Capital of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...
, using a leased
Aircraft Transport and Travel DH-16, and carrying two British journalists and a number of newspapers. In 1921, KLM started scheduled services.
In
Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
, the charter establishing Aero O/Y (now
Finnair
Finnair ( fi, Finnair Oyj, sv, Finnair Abp) is the flag carrier and largest airline of Finland, with its headquarters in Vantaa on the grounds of Helsinki Airport, its hub. Finnair and its subsidiaries dominate both domestic and international ...
) was signed in the city of
Helsinki
Helsinki ( or ; ; sv, Helsingfors, ) is the Capital city, capital, primate city, primate, and List of cities and towns in Finland, most populous city of Finland. Located on the shore of the Gulf of Finland, it is the seat of the region of U ...
on 12 September 1923.
Junkers F.13
The Junkers F 13 was the world's first all-metal transport aircraft, developed in Weimar Republic, Germany at the end of World War I. It was an advanced Cantilever#Aircraft, cantilever-wing monoplane, with enclosed accommodation for four passenge ...
D-335 became the first aircraft of the company, when Aero took delivery of it on 14 March 1924. The first flight was between Helsinki and
Tallinn
Tallinn () is the most populous and capital city of Estonia. Situated on a bay in north Estonia, on the shore of the Gulf of Finland of the Baltic Sea, Tallinn has a population of 437,811 (as of 2022) and administratively lies in the Harju ' ...
, capital of
Estonia
Estonia, formally the Republic of Estonia, is a country by the Baltic Sea in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the sea across from Sweden, to the south by Latvia, a ...
, and it took place on 20 March 1924, one week later.
In the
Soviet Union
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
, the Chief Administration of the Civil Air Fleet was established in 1921. One of its first acts was to help found Deutsch-Russische Luftverkehrs A.G. (Deruluft), a German-Russian joint venture to provide air transport from Russia to the West. Domestic air service began around the same time, when Dobrolyot started operations on 15 July 1923 between Moscow and Nizhni Novgorod. Since 1932 all operations had been carried under the name
Aeroflot.
Early European airlines tended to favor comfort – the passenger cabins were often spacious with luxurious interiors – over speed and efficiency. The relatively basic navigational capabilities of pilots at the time also meant that delays due to the weather were commonplace.
Rationalization
![National Audit Office - Victoria - London - 020504](https://upload.wikimedia.org/wikipedia/commons/9/98/National_Audit_Office_-_Victoria_-_London_-_020504.jpg)
By the early 1920s, small airlines were struggling to compete, and there was a movement towards increased rationalization and consolidation. In 1924,
Imperial Airways
Imperial Airways was the early British commercial long-range airline, operating from 1924 to 1939 and principally serving the British Empire routes to South Africa, India, Australia and the Far East, including Malaya and Hong Kong. Passengers ...
was formed from the merger of
Instone Air Line Company,
British Marine Air Navigation,
Daimler Airway
Daimler Airway was an airline subsidiary of the Birmingham Small Arms Company (BSA)'s Daimler Company. It was created to use some of the assets of the failed ventures Airco and its subsidiary, Aircraft Transport and Travel, which was acquired ...
and
Handley Page Transport
Handley Page Transport Ltd was an airline company founded in 1919, soon after the end of the First World War, by Frederick Handley Page.
The company's first planes were Handley Page Type O/400 bombers modified for passenger use. They flew a Lo ...
, to allow British airlines to compete with stiff competition from French and German airlines that were enjoying heavy government subsidies. The airline was a pioneer in surveying and opening up air routes across the world to serve far-flung parts of the
British Empire
The British Empire was composed of the dominions, colonies, protectorates, mandates, and other territories ruled or administered by the United Kingdom and its predecessor states. It began with the overseas possessions and trading posts esta ...
and to enhance trade and integration.
The first new airliner ordered by Imperial Airways, was the
Handley Page W8f
The Handley Page W.8, W.9 and W.10 were British two- and three-engine medium-range biplane airliners designed and built by Handley Page.
The W.8 (also known as the H.P.18) was the company's first purpose-built civil airliner although it was a ...
''City of Washington'', delivered on 3 November 1924. In the first year of operation the company carried 11,395 passengers and 212,380 letters. In April 1925, the film ''
The Lost World'' became the first film to be screened for passengers on a scheduled airliner flight when it was shown on the London-Paris route.
Two French airlines also merged to form
Air Union
Air Union was a French airline established January 1, 1923, as the result of a merger between the airlines ''Compagnie des Messageries Aériennes'' and '' Compagnie des Grands Express Aériens''. Air Union was merged with four other French airli ...
on 1 January 1923. This later merged with four other French airlines to become
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
, the country's flagship carrier to this day, on 17 May 1933.
Germany's
Deutsche Lufthansa
Deutsche Lufthansa AG (), commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second- largest airline in Europe in terms of passengers carried. Lufthansa is one of the five founding m ...
was created in 1926 by merger of two airlines, one of them
Junkers Luftverkehr. Lufthansa, due to the
Junkers heritage and unlike most other airlines at the time, became a major investor in airlines outside of Europe, providing capital to
Varig
VARIG (acronym for Viação Aérea RIo-Grandense, ''Rio Grandean Airways'') was the first airline founded in Brazil, in 1927. From 1965 until 1990, it was Brazil's leading airline, and virtually its only international one. In 2005, Varig went ...
and Avianca. German airliners built by
Junkers,
Dornier, and
Fokker were among the most advanced in the world at the time.
Expansion
In 1926,
Alan Cobham
Sir Alan John Cobham, KBE, AFC (6 May 1894 – 21 October 1973) was an English aviation pioneer.
Early life and family
As a child he attended Wilson's School, then in Camberwell, London. The school relocated to the former site of Croydo ...
surveyed a flight route from the UK to
Cape Town
Cape Town ( af, Kaapstad; , xh, iKapa) is one of South Africa's three capital cities, serving as the seat of the Parliament of South Africa. It is the legislative capital of the country, the oldest city in the country, and the second largest ...
,
South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
, following this up with another proving flight to
Melbourne
Melbourne ( ; Boonwurrung/Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a met ...
,
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
. Other routes to
British India
The provinces of India, earlier presidencies of British India and still earlier, presidency towns, were the administrative divisions of British governance on the Indian subcontinent. Collectively, they have been called British India. In one ...
and the
Far East
The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons.
The ter ...
were also charted and demonstrated at this time. Regular services to
Cairo
Cairo ( ; ar, القاهرة, al-Qāhirah, ) is the capital of Egypt and its largest city, home to 10 million people. It is also part of the largest urban agglomeration in Africa, the Arab world and the Middle East: The Greater Cairo metro ...
and
Basra
Basra ( ar, ٱلْبَصْرَة, al-Baṣrah) is an Iraqi city located on the Shatt al-Arab. It had an estimated population of 1.4 million in 2018. Basra is also Iraq's main port, although it does not have deep water access, which is hand ...
began in 1927 and were extended to
Karachi
Karachi (; ur, ; ; ) is the most populous city in Pakistan and 12th most populous city in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast. It is the former cap ...
in 1929. The London-
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
service was inaugurated in 1932 with the
Handley Page HP 42 airliners. Further services were opened up to
Calcutta
Kolkata (, or , ; also known as Calcutta , List of renamed places in India#West Bengal, the official name until 2001) is the Capital city, capital of the Indian States and union territories of India, state of West Bengal, on the eastern ba ...
,
Rangoon
Yangon ( my, ရန်ကုန်; ; ), formerly spelled as Rangoon, is the capital of the Yangon Region and the largest city of Myanmar (also known as Burma). Yangon served as the capital of Myanmar until 2006, when the military government ...
,
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
,
Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
and
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
passengers departed London on 14 March 1936 following the establishment of a branch from Penang to Hong Kong.
![Imperial routes April 1935](https://upload.wikimedia.org/wikipedia/commons/1/1c/Imperial_routes_April_1935.jpg)
Imperial's aircraft were small, most seating fewer than twenty passengers, and catered for the rich. Only about 50,000 passengers used Imperial Airways in the 1930s. Most passengers on intercontinental routes or on services within and between British colonies were men doing colonial administration, business or research.
Like Imperial Airways,
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
and
KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
's early growth depended heavily on the needs to service links with far-flung colonial possessions (
North Africa
North Africa, or Northern Africa is a region encompassing the northern portion of the African continent. There is no singularly accepted scope for the region, and it is sometimes defined as stretching from the Atlantic shores of Mauritania in ...
and
Indochina
Mainland Southeast Asia, also known as the Indochinese Peninsula or Indochina, is the continental portion of Southeast Asia. It lies east of the Indian subcontinent and south of Mainland China and is bordered by the Indian Ocean to the west an ...
for the French and the
East Indies
The East Indies (or simply the Indies), is a term used in historical narratives of the Age of Discovery. The Indies refers to various lands in the East or the Eastern hemisphere, particularly the islands and mainlands found in and around t ...
for the Dutch). France began an air mail service to
Morocco
Morocco (),, ) officially the Kingdom of Morocco, is the westernmost country in the Maghreb region of North Africa. It overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west, and has land borders with Algeria to ...
in 1919 that was bought out in 1927, renamed
Aéropostale, and injected with capital to become a major international carrier. In 1933, Aéropostale went
bankrupt
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debt ...
, was nationalized and merged into
Air France
Air France (; formally ''Société Air France, S.A.''), stylised as AIRFRANCE, is the flag carrier of France headquartered in Tremblay-en-France. It is a subsidiary of the Air France–KLM Group and a founding member of the SkyTeam global a ...
.
Although Germany lacked colonies, it also began expanding its services globally. In 1931, the airship
Graf Zeppelin began offering regular scheduled passenger service between Germany and South America, usually every two weeks, which continued until 1937. In 1936, the airship
Hindenburg entered passenger service and successfully crossed the Atlantic 36 times before crashing at Lakehurst, New Jersey, on 6 May 1937. In 1938, a weekly air service from Berlin to
Kabul
Kabul (; ps, , ; , ) is the capital and largest city of Afghanistan. Located in the eastern half of the country, it is also a municipality, forming part of the Kabul Province; it is administratively divided into 22 municipal districts. Acco ...
,
Afghanistan
Afghanistan, officially the Islamic Emirate of Afghanistan,; prs, امارت اسلامی افغانستان is a landlocked country located at the crossroads of Central Asia and South Asia. Referred to as the Heart of Asia, it is bordere ...
, started operating.
From February 1934 until World War II began in 1939,
Deutsche Lufthansa
Deutsche Lufthansa AG (), commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second- largest airline in Europe in terms of passengers carried. Lufthansa is one of the five founding m ...
operated an airmail service from
Stuttgart
Stuttgart (; Swabian: ; ) is the capital and largest city of the German state of Baden-Württemberg. It is located on the Neckar river in a fertile valley known as the ''Stuttgarter Kessel'' (Stuttgart Cauldron) and lies an hour from the ...
,
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
via
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
, the
Canary Islands
The Canary Islands (; es, Canarias, ), also known informally as the Canaries, are a Spanish autonomous community and archipelago in the Atlantic Ocean, in Macaronesia. At their closest point to the African mainland, they are west of Morocc ...
and West Africa to
Natal
NATAL or Natal may refer to:
Places
* Natal, Rio Grande do Norte, a city in Brazil
* Natal, South Africa (disambiguation), a region in South Africa
** Natalia Republic, a former country (1839–1843)
** Colony of Natal, a former British colony ( ...
in
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. This was the first time an airline flew across an ocean.
[James W. Graue & John Duggan "Deutsche Lufthansa South Atlantic Airmail Service 1934–1939", Zeppelin Study Group, Ickenham, UK 2000 ]
By the end of the 1930s
Aeroflot had become the world's largest airline, employing more than 4,000 pilots and 60,000 other service personnel and operating around 3,000 aircraft (of which 75% were considered obsolete by its own standards). During the Soviet era Aeroflot was synonymous with Russian civil aviation, as it was the only air carrier. It became the first airline in the world to operate sustained regular jet services on 15 September 1956 with the
Tupolev Tu-104.
Deregulation
Deregulation of the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
airspace in the early 1990s has had substantial effect on the structure of the industry there. The shift towards 'budget' airlines on shorter routes has been significant. Airlines such as
EasyJet
EasyJet plc (styled as easyJet) is a British multinational low-cost airline group headquartered at London Luton Airport. It operates domestic and international scheduled services on 927 routes in more than 34 countries via its affiliate airli ...
and
Ryanair have often grown at the expense of the traditional national airlines.
There has also been a trend for these national airlines themselves to be privatized such as has occurred for
Aer Lingus
Aer Lingus ( ; an anglicisation of the Irish , meaning "air fleet" compare Welsh 'llynges awyr') is the flag carrier of Ireland. Founded by the Irish Government, it was privatised between 2006 and 2015 and it is now a wholly owned subsidiary ...
and
British Airways
British Airways (BA) is the flag carrier airline of the United Kingdom. It is headquartered in London, England, near its main hub at Heathrow Airport.
The airline is the second largest UK-based carrier, based on fleet size and passengers ...
. Other national airlines, including Italy's
Alitalia
Alitalia - Società Aerea Italiana Società per azioni, S.p.A., operating as Alitalia (), was an Italian airline which was once the flag carrier and largest airline of Italy. The company had its head office in Fiumicino, Metropolitan City of ...
, suffered – particularly with the rapid increase of oil prices in early 2008.
Finnair
Finnair ( fi, Finnair Oyj, sv, Finnair Abp) is the flag carrier and largest airline of Finland, with its headquarters in Vantaa on the grounds of Helsinki Airport, its hub. Finnair and its subsidiaries dominate both domestic and international ...
, the largest airline of
Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
, had no fatal or hull-loss accidents since 1963, and is recognized for its safety.
United States
Early development
Tony Jannus
Antony Habersack Jannus, more familiarly known as Tony Jannus (July 22, 1889 – October 12, 1916), was an early American pilot whose aerial exploits were widely publicized in aviation's pre-World War I period. He flew the first airplane from ...
conducted the United States' first scheduled commercial airline flight on January 1, 1914 for the
St. Petersburg-Tampa Airboat Line
ST, St, or St. may refer to:
Arts and entertainment
* Stanza, in poetry
* Suicidal Tendencies, an American heavy metal/hardcore punk band
* Star Trek, a science-fiction media franchise
* Summa Theologica, a compendium of Catholic philosophy an ...
.
The 23-minute flight traveled between
St. Petersburg, Florida
St. Petersburg is a city in Pinellas County, Florida, United States. As of the 2020 census, the population was 258,308, making it the fifth-most populous city in Florida and the second-largest city in the Tampa Bay Area, after Tampa. It is the ...
and
Tampa, Florida
Tampa () is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and ...
, passing some above Tampa Bay in Jannus'
Benoist XIV wood and muslin biplane flying boat. His passenger was a former mayor of St. Petersburg, who paid $400 for the privilege of sitting on a wooden bench in the open cockpit. The Airboat line operated for about four months, carrying more than 1,200 passengers who paid $5 each.
Chalk's International Airlines
Chalk's International Airlines, formerly Chalk's Ocean Airways, was an airline with its headquarters on the grounds of Fort Lauderdale-Hollywood International Airport in unincorporated Broward County, Florida near Fort Lauderdale. It operated sc ...
began service between Miami and Bimini in the
Bahamas
The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the Atlantic Ocean, North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to ...
in February 1919. Based in
Ft. Lauderdale, Chalk's claimed to be the oldest continuously operating airline in the United States until its closure in 2008.
Following
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, the United States found itself swamped with aviators. Many decided to take their war-surplus aircraft on barnstorming campaigns, performing aerobatic maneuvers to woo crowds. In 1918, the
United States Postal Service
The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U ...
won the financial backing of
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
to begin experimenting with
air mail service, initially using
Curtiss Jenny
The Curtiss JN "Jenny" was a series of biplanes built by the Curtiss Aeroplane Company of Hammondsport, New York, later the Curtiss Aeroplane and Motor Company. Although the Curtiss JN series was originally produced as a training aircraft for th ...
aircraft that had been procured by the
United States Army Air Service
The United States Army Air Service (USAAS)Craven and Cate Vol. 1, p. 9 (also known as the ''"Air Service"'', ''"U.S. Air Service"'' and before its legislative establishment in 1920, the ''"Air Service, United States Army"'') was the aerial war ...
. Private operators were the first to fly the mail but due to numerous accidents the US Army was tasked with mail delivery. During the Army's involvement they proved to be too unreliable and lost their air mail duties. By the mid-1920s, the
Postal Service had developed its own air mail network, based on a transcontinental backbone between
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
and
San Francisco
San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
. To supplement this service, they offered twelve contracts for spur routes to independent bidders. Some of the carriers that won these routes would, through time and mergers, evolve into
Pan Am
Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United States ...
,
Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
,
Braniff Airways
Braniff Airways, Inc., operated as Braniff International Airways from 1948 until 1965, and then Braniff International from 1965 until air operations ceased, was an airline in the United States that once flew air carrier operations from 1928 un ...
,
American Airlines
American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...
,
United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. (originally a division of
Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and p ...
),
Trans World Airlines,
Northwest Airlines
Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...
, and
Eastern Air Lines.
Service during the early 1920s was sporadic: most airlines at the time were focused on
carrying bags of mail. In 1925, however, the
Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
bought out the
Stout Aircraft Company and began construction of the all-metal
Ford Trimotor, which became the first successful American airliner. With a 12-passenger capacity, the Trimotor made passenger service potentially profitable. Air service was seen as a supplement to
rail
Rail or rails may refer to:
Rail transport
*Rail transport and related matters
*Rail (rail transport) or railway lines, the running surface of a railway
Arts and media Film
* ''Rails'' (film), a 1929 Italian film by Mario Camerini
* ''Rail'' ( ...
service in the American transportation network.
At the same time,
Juan Trippe
Juan Terry Trippe (June 27, 1899 – April 3, 1981) was an American commercial aviation pioneer, entrepreneur and the founder of Pan American World Airways, one of the iconic airlines of the 20th century. He was involved in the introduction of t ...
began a crusade to create an air network that would link America to the world, and he achieved this goal through his airline,
Pan Am
Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United States ...
, with a fleet of flying boats that linked
Los Angeles
Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
to
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
and
Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
to
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
. Pan Am and Northwest Airways (which began flights to Canada in the 1920s) were the only U.S. airlines to go international before the 1940s.
With the introduction of the
Boeing 247
The Boeing Model 247 is an early United States airliner, and one of the first such aircraft to incorporate advances such as all-metal (Anodizing#Anodized aluminium, anodized aluminum) semimonocoque construction, a fully Cantilever#Aircraft, cant ...
and
Douglas DC-3 in the 1930s, the U.S. airline industry was generally profitable, even during the
Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
. This trend continued until the beginning of
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
.
Since 1945
![Stratocruiser op Schiphol, Bestanddeelnr 903-5913](https://upload.wikimedia.org/wikipedia/commons/9/97/Stratocruiser_op_Schiphol%2C_Bestanddeelnr_903-5913.jpg)
World War II, like World War I, brought new life to the airline industry. Many airlines in the Allied countries were flush from lease contracts to the military, and foresaw a future explosive demand for civil air transport, for both passengers and cargo. They were eager to invest in the newly emerging flagships of air travel such as the
Boeing Stratocruiser
The Boeing 377 Stratocruiser was a large long-range airliner developed from the C-97 Stratofreighter military transport, itself a derivative of the B-29 Superfortress. The Stratocruiser's first flight was on July 8, 1947. Its design was advanced ...
,
Lockheed Constellation
The Lockheed Constellation ("Connie") is a propeller-driven, four-engined airliner built by Lockheed Corporation starting in 1943. The Constellation series was the first pressurized-cabin civil airliner series to go into widespread use. Its press ...
, and
Douglas DC-6
The Douglas DC-6 is a piston-powered airliner and cargo aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with t ...
. Most of these new aircraft were based on American bombers such as the
B-29, which had spearheaded research into new technologies such as
pressurization
{{Wiktionary
Pressurization or pressurisation is the application of pressure in a given situation or environment.
Industrial
Industrial equipment is often maintained at pressures above or below atmospheric.
Atmospheric
This is the process by ...
. Most offered increased efficiency from both added speed and greater payload.
In the 1950s, the
De Havilland Comet
The de Havilland DH.106 Comet was the world's first commercial jet airliner. Developed and manufactured by de Havilland in the United Kingdom, the Comet 1 prototype first flew in 1949. It featured an aerodynamically clean design with four ...
,
Boeing 707,
Douglas DC-8
The Douglas DC-8 (sometimes McDonnell Douglas DC-8) is a long-range narrow-body airliner built by the American Douglas Aircraft Company.
After losing the May 1954 US Air Force tanker competition to the Boeing KC-135, Douglas announced in July ...
, and
Sud Aviation Caravelle became the first flagships of the Jet Age in the West, while the Eastern bloc had
Tupolev Tu-104 and
Tupolev Tu-124
The Tupolev Tu-124 (NATO reporting name: Cookpot) was a 56-passenger short-range twinjet airliner built in the Soviet Union. It was the first Soviet airliner powered by turbofan engines.
Design and development
Developed from the medium-range ...
in the fleets of state-owned carriers such as Czechoslovak
ČSA, Soviet
Aeroflot and East-German
Interflug
Interflug GmbH (german: Interflug Gesellschaft für internationalen Flugverkehr m.b.H.; ) was the national airline of the German Democratic Republic from 1963 to 1990. Based in East Berlin, it operated scheduled and chartered flights to Europea ...
. The
Vickers Viscount
The Vickers Viscount is a British medium-range turboprop airliner first flown in 1948 by Vickers-Armstrongs. A design requirement from the Brabazon Committee, it entered service in 1953 and was the first turboprop-powered airliner.
The Vi ...
and
Lockheed L-188 Electra
The Lockheed L-188 Electra is an American turboprop airliner built by Lockheed. First flown in 1957, it was the first large turboprop airliner built in the United States. Initial sales were good, but after two fatal crashes that led to expensiv ...
inaugurated turboprop transport.
On 4 October 1958,
British Overseas Airways Corporation
British Overseas Airways Corporation (BOAC) was the British state-owned airline created in 1939 by the merger of Imperial Airways and British Airways Ltd. It continued operating overseas services throughout World War II. After the passi ...
started
transatlantic flight
A transatlantic flight is the flight of an aircraft across the Atlantic Ocean from Europe, Africa, South Asia, or the Middle East to North America, Central America, or South America, or ''vice versa''. Such flights have been made by fixed-wing air ...
s between
London Heathrow
Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others bei ...
and
New York Idlewild with a Comet 4, and
Pan Am
Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United States ...
followed on 26 October with a Boeing 707 service between New York and Paris.
The next big boost for the airlines would come in the 1970s, when the
Boeing 747
The Boeing 747 is a large, long-range wide-body airliner designed and manufactured by Boeing Commercial Airplanes in the United States between 1968 and 2022.
After introducing the 707 in October 1958, Pan Am wanted a jet times its size, t ...
,
McDonnell Douglas DC-10
The McDonnell Douglas DC-10 is an American trijet wide-body aircraft manufactured by McDonnell Douglas.
The DC-10 was intended to succeed the DC-8 for long- range flights. It first flew on August 29, 1970; it was introduced on August 5, 197 ...
, and
Lockheed L-1011
The Lockheed L-1011 TriStar, also known as the L-1011 (pronounced "El-ten-eleven") and TriStar, is an American medium-to-long-range, wide-body trijet airliner built by the Lockheed Corporation. It was the third wide-body airliner to enter comme ...
inaugurated
widebody ("jumbo jet") service, which is still the standard in international travel. The
Tupolev Tu-144
The Tupolev Tu-144 (russian: Tyполев Ту-144; NATO reporting name: Charger) is a Soviet supersonic passenger airliner designed by Tupolev in operation from 1968 to 1999.
The Tu-144 was the world's first commercial supersonic transport ai ...
and its Western counterpart,
Concorde
The Aérospatiale/BAC Concorde () is a retired Franco-British supersonic airliner jointly developed and manufactured by Sud Aviation (later Aérospatiale) and the British Aircraft Corporation (BAC).
Studies started in 1954, and France an ...
, made supersonic travel a reality. Concorde first flew in 1969 and operated through 2003. In 1972,
Airbus
Airbus SE (; ; ; ) is a European multinational aerospace corporation. Airbus designs, manufactures and sells civil and military aerospace products worldwide and manufactures aircraft throughout the world. The company has three divisions: ' ...
began producing Europe's most commercially successful line of airliners to date. The added efficiencies for these aircraft were often not in speed, but in passenger capacity, payload, and range. Airbus also features modern electronic cockpits that were common across their aircraft to enable pilots to fly multiple models with minimal cross-training.
Deregulation
![Pan Am Boeing 747 at Zurich Airport in May 1985](https://upload.wikimedia.org/wikipedia/commons/8/8f/Pan_Am_Boeing_747_at_Zurich_Airport_in_May_1985.jpg)
The 1978 U.S.
airline industry deregulation lowered federally controlled barriers for new airlines just as a downturn in the nation's economy occurred. New start-ups entered during the downturn, during which time they found aircraft and funding, contracted hangar and maintenance services, trained new employees, and recruited laid-off staff from other airlines.
Major airlines dominated their routes through aggressive pricing and additional capacity offerings, often swamping new start-ups. In the place of high barriers to entry imposed by regulation, the major airlines implemented an equally high barrier called
loss leader
A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion/marketing strategy, a "leader" is any popular articl ...
pricing.
In this strategy an already established and dominant airline stomps out its competition by lowering airfares on specific routes, below the cost of operating on it, choking out any chance a start-up airline may have. The industry side effect is an overall drop in revenue and service quality. Since deregulation in 1978 the average domestic ticket price has dropped by 40%. So has airline employee pay. By incurring massive losses, the airlines of the USA now rely upon a scourge of cyclical Chapter 11 bankruptcy proceedings to continue doing business.
America West Airlines
America West Airlines was a major American airline, founded in 1981, with service commencing in 1983, and having reached US$1 billion in annual revenue in 1989, headquartered in Tempe, Arizona. At the time of its acquisition of US Airways, Americ ...
(which has since merged with US Airways) remained a significant survivor from this new entrant era, as dozens, even hundreds, have gone under.
In many ways, the biggest winner in the deregulated environment was the air passenger. Although not exclusively attributable to deregulation, indeed the U.S. witnessed an explosive growth in demand for air travel. Many millions who had never or rarely flown before became regular fliers, even joining
frequent flyer
A frequent-flyer program (American English) or frequent-flyer programme (British English) is a loyalty program offered by an airline.
Many airlines have frequent-flyer programs designed to encourage airline customers enrolled in the program ...
loyalty programs and receiving free flights and other benefits from their flying. New services and higher frequencies meant that business fliers could fly to another city, do business, and return the same day, from almost any point in the country. Air travel's advantages put long-distance intercity
railroad
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
travel and bus lines under pressure, with most of the latter having withered away, whilst the former is still protected under
nationalization
Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...
through the continuing existence of
Amtrak
The National Railroad Passenger Corporation, Trade name, doing business as Amtrak () , is the national Passenger train, passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous United Stat ...
.
By the 1980s, almost half of the total flying in the world took place in the U.S., and today the domestic industry operates over 10,000 daily departures nationwide.
Toward the end of the century, a new style of
low cost airline
A low-cost carrier or low-cost airline (occasionally referred to as '' no-frills'', ''budget'' or '' discount carrier'' or ''airline'', and abbreviated as ''LCC'') is an airline that is operated with an especially high emphasis on minimizing op ...
emerged, offering a no-frills product at a lower price.
Southwest Airlines,
JetBlue
JetBlue Airways Corporation (stylized as jetBlue) is a major American low cost airline, and the seventh largest airline in North America by passengers carried. The airline is headquartered in the Long Island City neighborhood of the New York C ...
,
AirTran Airways,
Skybus Airlines
Skybus Airlines Inc. was a privately held airline based in Columbus, Ohio, United States. It operated as an ultra low-cost carrier modeled after the European airline Ryanair, and aimed to be the least expensive airline in the United States. ...
and other low-cost carriers began to represent a serious challenge to the so-called "legacy airlines", as did their low-cost counterparts in many other countries. Their commercial viability represented a serious competitive threat to the legacy carriers. However, of these,
ATA and Skybus have since ceased operations.
Increasingly since 1978, US airlines have been reincorporated and
spun off by newly created and internally led management companies, and thus becoming nothing more than operating units and subsidiaries with limited financially decisive control. Among some of these
holding companies
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
and
parent companies
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
which are relatively well known, are the
UAL Corporation
UAL Corporation is the former name of United Airlines Holdings, an airline holding company, incorporated in Delaware with headquarters in Chicago, Illinois. UAL held a 100 percent controlling interest in United Airlines, Inc., one of the worl ...
, along with the
AMR Corporation
AMR Corporation was an airline holding company based in Fort Worth, Texas, which was the parent company of American Airlines, American Eagle Airlines, AmericanConnection and Executive Airlines. AMR filed for Chapter 11 bankruptcy protect ...
, among a long
list of airline holding companies
This is a list of airline holding companies, that either own more than one airline or are the parent company of a single airline.
A company or firm in which the holding company owns a significant portion of voting shares, usually 20–50% or a ...
sometime recognized worldwide. Less recognized are the
private-equity firm
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leve ...
s which often seize managerial, financial, and
board of directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
control of distressed airline companies by temporarily investing large sums of
capital in air carriers, to rescheme an airlines assets into a profitable organization or
liquidating an air carrier of their profitable and worthwhile routes and business operations.
Thus the last 50 years of the airline industry have varied from reasonably profitable, to devastatingly depressed. As the first major market to deregulate the industry in 1978, U.S. airlines have experienced more turbulence than almost any other country or region. In fact, no U.S.
legacy carrier
A legacy carrier, in the United States, is an airline that had established interstate routes before the beginning of the route liberalization permitted by the Airline Deregulation Act of 1978 and so was directly affected by that Act. Legacy carr ...
survived bankruptcy-free. Among the outspoken critics of deregulation, former CEO of American Airlines,
Robert Crandall
Robert Lloyd "Bob" Crandall (born December 6, 1935 in Westerly, Rhode Island) is an American businessman who is the former president and chairman of American Airlines. Called an industry legend by airline industry observers, Crandall has been the ...
has publicly stated: "Chapter 11 bankruptcy protection filing shows airline industry deregulation was a mistake."
Bailout
Congress passed th
Air Transportation Safety and System Stabilization Act(P.L. 107–42) in response to a severe liquidity crisis facing the already-troubled airline industry in the aftermath of the
September 11 attacks
The September 11 attacks, commonly known as 9/11, were four coordinated suicide terrorist attacks carried out by al-Qaeda against the United States on Tuesday, September 11, 2001. That morning, nineteen terrorists hijacked four commercia ...
. Through the
ATSB Congress sought to provide cash infusions to carriers for both the cost of the four-day federal shutdown of the airlines and the incremental losses incurred through December 31, 2001, as a result of the terrorist attacks. This resulted in the first government bailout of the 21st century. Between 2000 and 2005 US airlines lost $30 billion with wage cuts of over $15 billion and 100,000 employees laid off.
In recognition of the essential national economic role of a healthy aviation system, Congress authorized partial compensation of up to $5 billion in cash subject to review by the
U.S. Department of Transportation
The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the President of the United States and ...
and up to $10 billion in loan guarantees subject to review by a newly created
Air Transportation Stabilization Board The Air Transportation Stabilization Board (ATSB) is an office of United States Department of the Treasury created to assist US airlines in the wake of the September 11, 2001 attacks.
The Air Transportation Safety and System Stabilization Act, sig ...
(ATSB). The applications to DOT for reimbursements were subjected to rigorous multi-year reviews not only by DOT program personnel but also by the
Government Accountability Office and the DOT Inspector General.
Ultimately, the federal government provided $4.6 billion in one-time, subject-to-income-tax cash payments to 427 U.S. air carriers, with no provision for repayment, essentially a gift from the taxpayers. (Passenger carriers operating scheduled service received approximately $4 billion, subject to tax.) In addition, the ATSB approved loan guarantees to six airlines totaling approximately $1.6 billion. Data from the
U.S. Treasury Department
The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...
show that the government recouped the $1.6 billion and a profit of $339 million from the fees, interest and purchase of discounted airline stock associated with loan guarantees.
The three largest
major carrier
The United States Department of Transportation defines a major carrier or major airline carrier as a U.S.-based airline that posts more than $1 billion in revenue during a fiscal year, grouped accordingly as "Group III".
Airlines
According to FY20 ...
s and
Southwest Airlines control 70% of the U.S. passenger market.
[
]
Asia
Although Philippine Airlines
Philippine Airlines (PAL), a trade name of PAL Holdings, Inc. (Philippine Stock Exchange, PSEPAL (Philippine Air Lines until 1970), is the flag carrier airline of the Philippines. Headquartered at the Philippine National Bank, PNB Financial Cen ...
(PAL) was officially founded on February 26, 1941, its license to operate as an airliner was derived from merged Philippine Aerial Taxi Company (PATCO) established by mining magnate Emmanuel N. Bachrach on 3 December 1930, making it Asia's oldest scheduled carrier still in operation. Commercial air service commenced three weeks later from Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
to Baguio
Baguio ( ,
), officially the City of Baguio ( ilo, Siudad ti Baguio; fil, Lungsod ng Baguio), is a 1st class highly urbanized city in the Cordillera Administrative Region, Philippines. It is known as the "Summer Capital of the Philippines", ...
, making it Asia's first airline route. Bachrach's death in 1937 paved the way for its eventual merger with Philippine Airlines in March 1941 and made it Asia's oldest airline. It is also the oldest airline in Asia still operating under its current name.[Jane, ]
Jane's airlines & airliners By Jeremy Flack
', First Edition, 2003, Bachrach's majority share in PATCO was bought by beer magnate Andres R. Soriano in 1939 upon the advice of General Douglas MacArthur
Douglas MacArthur (26 January 18805 April 1964) was an American military leader who served as General of the Army for the United States, as well as a field marshal to the Philippine Army. He had served with distinction in World War I, was C ...
and later merged with newly formed Philippine Airlines with PAL as the surviving entity. Soriano has controlling interest in both airlines before the merger. PAL restarted service on 15 March 1941, with a single Beech Model 18
The Beechcraft Model 18 (or "Twin Beech", as it is also known) is a 6- to 11-seat, twin-engined, low-wing, tailwheel light aircraft manufactured by the Beech Aircraft Corporation of Wichita, Kansas. Continuously produced from 1937 to November ...
NPC-54 aircraft, which started its daily services between Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
(from Nielson Field
Nielson Field (Luzon, the Philippines) was the location of the Far East Air Force headquarters. Most of the aircraft of the FEAF were based at either Clark Field or Nichols Field. The cultural site was an ''Honourable Mention'' in the 2001 UNES ...
) and Baguio
Baguio ( ,
), officially the City of Baguio ( ilo, Siudad ti Baguio; fil, Lungsod ng Baguio), is a 1st class highly urbanized city in the Cordillera Administrative Region, Philippines. It is known as the "Summer Capital of the Philippines", ...
, later to expand with larger aircraft such as the DC-3 and Vickers Viscount.
Cathay Pacific was one of the first airlines to be launched among the other Asian countries in 1946 along with Asiana Airlines
Asiana Airlines Inc. ( ) is a South Korean airline headquartered in Seoul.[Home]
." Asiana Airlines. Retrieved 13 September 2 ...
, which later joined in 1988. The license to operate as an airliner was granted by the federal government body after reviewing the necessity at the national assembly. The Hanjin
The Hanjin Group () is a South Korean chaebol. The group has various industries covered from transportation and airlines to hotels, tourism, and airport businesses, and one of the largest chaebols in Korea. The group includes Korean Air (KAL) ...
occupies the largest ownership of Korean Air as well as few low-budget airlines as of now. Korean Air is one of the four founders of SkyTeam, which was established in 2000. Asiana Airlines joined Star Alliance
Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its CEO is Jeffrey Goh and its headquarters is located in Frankfurt am Main, Germany. , Star Alliance is the largest of the three global alliances by passenge ...
in 2003. Korean Air and Asiana Airlines comprise one of the largest combined airline miles and number of passenger served at the regional market of Asian airline industry
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
was also one of the first countries to embrace civil aviation. One of the first Asian airline companies was Air India
Air India is the flag carrier airline of India, headquartered at New Delhi. It is owned by Talace Private Limited, a Special-Purpose Vehicle (SPV) of Tata Sons, after Air India Limited's former owner, the Government of India, completed the ...
, which was founded as Tata Airlines
Air India is the flag carrier airline of India, headquartered at New Delhi. It is owned by Talace Private Limited, a Special-Purpose Vehicle (SPV) of Tata Sons, after Air India Limited's former owner, the Government of India, completed the sa ...
in 1932, a division of Tata Sons Ltd. (now Tata Group
The Tata Group () is an Indian multinational conglomerate headquartered in Mumbai. Established in 1868, it is India's largest conglomerate, with products and services in over 150 countries, and operations in 100 countries across six continents ...
). The airline was founded by India's leading industrialist, JRD Tata
Jehangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993) was a French- Indian aviator, industrialist, entrepreneur and chairman of Tata Group.
Born into the Tata family of India, he was the son of noted businessman Ratanji Dadabh ...
. On 15 October 1932, J. R. D. Tata himself flew a single engined De Havilland Puss Moth
The de Havilland DH.80A Puss Moth is a British three-seater high-wing monoplane aeroplane designed and built by the de Havilland Aircraft Company between 1929 and 1933. It flew at a speed approaching 124 mph (200 km/h), making it o ...
carrying air mail (postal mail of Imperial Airways
Imperial Airways was the early British commercial long-range airline, operating from 1924 to 1939 and principally serving the British Empire routes to South Africa, India, Australia and the Far East, including Malaya and Hong Kong. Passengers ...
) from Karachi
Karachi (; ur, ; ; ) is the most populous city in Pakistan and 12th most populous city in the world, with a population of over 20 million. It is situated at the southern tip of the country along the Arabian Sea coast. It is the former cap ...
to Bombay
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
via Ahmedabad
Ahmedabad ( ; Gujarati: Amdavad ) is the most populous city in the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad district and the seat of the Gujarat High Court. Ahmedabad's population of 5,570,585 (per t ...
. The aircraft continued to Madras
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
via Bellary piloted by Royal Air Force
The Royal Air Force (RAF) is the United Kingdom's air and space force. It was formed towards the end of the First World War on 1 April 1918, becoming the first independent air force in the world, by regrouping the Royal Flying Corps (RFC) and ...
pilot Nevill Vintcent
Nevill Vintcent OBE DFC (1902 – 29 January 1942) was a South African aviator and airline founder. He was the son of Charles Vintcent, a South African cricketer.
Early life
Nevill Vintcent, a South African, born in 1902, entered Osborne i ...
. Tata Airlines was also one of the world's first major airlines which began its operations without any support from the Government.
With the outbreak of World War II, the airline presence in Asia came to a relative halt, with many new flag carriers donating their aircraft for military aid and other uses. Following the end of the war in 1945, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946, under the name Air India. After the independence of India
The Indian independence movement was a series of historic events with the ultimate aim of ending British Raj, British rule in India. It lasted from 1857 to 1947.
The first nationalistic revolutionary movement for Indian independence emerged ...
, 49% of the airline was acquired by the Government of India
The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...
. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International
Air India is the flag carrier airline of India, headquartered at New Delhi. It is owned by Talace Private Limited, a Special-Purpose Vehicle (SPV) of Tata Sons, after Air India Limited's former owner, the Government of India, completed the sa ...
.
On 31 July 1946, a chartered Philippine Airlines (PAL) DC-4
The Douglas DC-4 is an American four-engined (piston), propeller-driven airliner developed by the Douglas Aircraft Company. Military versions of the plane, the C-54 and R5D, served during World War II, in the Berlin Airlift and into the 1960s. ...
ferried 40 American servicemen to Oakland, California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
, from Nielson Airport in Makati
Makati ( ), officially the City of Makati ( fil, Lungsod ng Makati), is a 1st class highly urbanized city in the National Capital Region of the Philippines.
Makati is the financial center of the Philippines; it has the highest concentration ...
with stops in Guam
Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...
, Wake Island
Wake Island ( mh, Ānen Kio, translation=island of the kio flower; also known as Wake Atoll) is a coral atoll in the western Pacific Ocean in the northeastern area of the Micronesia subregion, east of Guam, west of Honolulu, southeast of To ...
, Johnston Atoll and Honolulu
Honolulu (; ) is the capital and largest city of the U.S. state of Hawaii, which is in the Pacific Ocean. It is an unincorporated county seat of the consolidated City and County of Honolulu, situated along the southeast coast of the island ...
, Hawaii
Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only stat ...
, making PAL the first Asian airline to cross the Pacific Ocean
The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean (or, depending on definition, to Antarctica) in the south, and is bounded by the continen ...
. A regular service between Manila
Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...
and San Francisco
San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
was started in December. It was during this year that the airline was designated as the flag carrier of Philippines.
During the era of decolonization
Decolonization or decolonisation is the undoing of colonialism, the latter being the process whereby imperial nations establish and dominate foreign territories, often overseas. Some scholars of decolonization focus especially on separatism, in ...
, newly born Asian countries started to embrace air transport. Among the first Asian carriers during the era were Cathay Pacific of Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
(founded in September 1946), Orient Airways
Orient Airways Ltd. ( ur, ) was an airline established in 1946 with its base in Calcutta, Bengal, British India. The airline shifted operations to the newly independent state of Pakistan in 1947, and was rechristened as Pakistan International A ...
(later Pakistan International Airlines
Pakistan International Airlines ( ur, ; abbreviated PIA, ur, ) is an international airline that serves as the national flag carrier of Pakistan under the administrative control of the Secretary to the Government of Pakistan for Aviation. It ...
; founded in October 1946), Air Ceylon
Air Ceylon was the former flag carrier airline of Ceylon (now Sri Lanka). The airline discontinued flights to Europe in early 1978 and finally ceased all local services on 31 August 1979, when it was replaced by Air Lanka and then rebranded to S ...
(later SriLankan Airlines; founded in 1947), Malayan Airways Limited in 1947 (later Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
and Malaysia Airlines
Malaysia Airlines Berhad (MAB; ms, Penerbangan Malaysia Berhad), formerly known as Malaysian Airline System (MAS; ), and branded as Malaysia Airlines, is the flag carrier airline of Malaysia and a member of the Oneworld airline alliance. (Th ...
), El Al
El Al Israel Airlines Ltd. (, he, אל על נתיבי אויר לישראל בע״מ), trading as El Al (Hebrew: , "Upwards", "To the Skies" or "Skywards", stylized as ELAL; ar, إل-عال), is the flag carrier of Israel. Since its inaugura ...
in Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
in 1948, Garuda Indonesia in 1949, Japan Airlines
, also known as JAL (''Jaru'') or , is an international airline and Japan's flag carrier and largest airline as of 2021 and 2022, headquartered in Shinagawa, Tokyo. Its main hubs are Tokyo's Narita International Airport and Haneda Airport, as w ...
in 1951, Thai Airways
Thai Airways International Public Company Limited, trading as THAI (, th, บริษัท การบินไทย จำกัด (มหาชน)) is the flag carrier airline of Thailand. Formed in 1961, the airline has its corporate h ...
in 1960, and Korean National Airlines
Korean National Airlines (KNA) was the first (commercial cargo and passenger) air carrier in Korea. Established in 1946 and incorporated in 1948 in South Korea, and its first official passenger flight was from Seoul to Pusan on October 30, 1948 ...
in 1947.
Singapore Airlines
Singapore Airlines ( abbreviation: SIA) is the flag carrier airline of the Republic of Singapore with its hub located at Singapore Changi Airport. The airline is notable for highlighting the Singapore Girl as its central figure in corporat ...
had won quality awards.
Latin America and Caribbean
Among the first countries to have regular airlines in Latin America and the Caribbean were Bolivia
, image_flag = Bandera de Bolivia (Estado).svg
, flag_alt = Horizontal tricolor (red, yellow, and green from top to bottom) with the coat of arms of Bolivia in the center
, flag_alt2 = 7 × 7 square p ...
with Lloyd Aéreo Boliviano
Lloyd Aéreo Boliviano S.A.M. (abbreviated LAB and internationally known as LAB Airlines), was the flag carrier and principal airline of Bolivia from 1925 until it ceased operations in 2010. Before its demise it was headquartered in Cochabamba ...
, Cuba
Cuba ( , ), officially the Republic of Cuba ( es, República de Cuba, links=no ), is an island country comprising the island of Cuba, as well as Isla de la Juventud and several minor archipelagos. Cuba is located where the northern Caribbea ...
with Cubana de Aviación
Cubana de Aviación S.A., commonly known as Cubana, is Cuba's flag carrier, as well as the country's largest airline. It was founded in , becoming one of the earliest airlines to emerge in Latin America. It has its corporate headquarters in Ha ...
, Colombia
Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
with Avianca
Avianca S.A. ( acronym in Spanish for ''Aerovias del Continente Americano S.A.'', "Airways of the American Continent") is a Colombian airline. It has been the flag carrier of Colombia since December 5, 1919, when it was initially registered und ...
(the first airline established in the Americas), Argentina with Aerolíneas Argentinas
Aerolíneas Argentinas, formally Aerolíneas Argentinas S.A., is Argentina's largest airline and the country flag carrier. The airline was created in 1949 from the merger of four companies and started operations in . A consortium led by Iberia ...
, Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
with LAN Chile
LATAM Airlines Chile (formerly LAN Airlines and LAN-Chile) is an airline based in Santiago, Chile, one of the founders of LATAM Airlines Group, Latin America's largest airline holding company. The main hub is Arturo Merino Benítez Internationa ...
(today LATAM Airlines
LATAM Airlines Group S.A. is an airline holding company headquartered in Santiago, Chile. It is considered the largest airline company in Latin America with subsidiaries in Brazil, Colombia, Ecuador, Paraguay and Peru. The company filed for Ch ...
), Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
with Varig
VARIG (acronym for Viação Aérea RIo-Grandense, ''Rio Grandean Airways'') was the first airline founded in Brazil, in 1927. From 1965 until 1990, it was Brazil's leading airline, and virtually its only international one. In 2005, Varig went ...
, the Dominican Republic
The Dominican Republic ( ; es, República Dominicana, ) is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean region. It occupies the eastern five-eighths of the island, which it shares wit ...
with Dominicana de Aviación
Compañía Dominicana de Aviación, usually shortened to Dominicana, was an airline based in the Dominican Republic and served as the flag carrier for the country. The airline flew a Boeing 747 for a short time. In the late 1980s, it leased 2 ...
, Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
with Mexicana de Aviación
Compañía Mexicana de Aviación, S.A. de C.V. (usually shortened to Mexicana de Aviación or simply Mexicana) was Mexico's oldest airline and one of the List of airlines by foundation date, oldest continuously single-branded airlines (after ...
, Trinidad and Tobago
Trinidad and Tobago (, ), officially the Republic of Trinidad and Tobago, is the southernmost island country in the Caribbean. Consisting of the main islands Trinidad and Tobago, and numerous much smaller islands, it is situated south of ...
with BWIA West Indies Airways
BWIA West Indies Airways Limited, known locally as "Bee-Wee" and also as British West Indian Airways and BWIA International, was the national airline based in Trinidad and Tobago. At the end of operations, BWIA was the largest airline operating ...
(today Caribbean Airlines
Caribbean Airlines Limited is the state-owned airline and flag carrier of Trinidad and Tobago. The airline is also the flag carrier of Jamaica and Guyana. Headquartered in Iere House in Piarco, the airline operates flights to the Caribbean, No ...
), Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
with Aeropostal
Aeropostal Alas de Venezuela C.A. is a state-owned airline of Venezuela based in Torre Polar Oeste in Caracas, Venezuela. It operates domestic services and international services in the Caribbean. Its main base is Simón Bolívar Internation ...
, Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
with Puertorriquena; and TACA based in El Salvador
El Salvador (; , meaning " The Saviour"), officially the Republic of El Salvador ( es, República de El Salvador), is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south b ...
and representing several airlines of Central America
Central America ( es, América Central or ) is a subregion of the Americas. Its boundaries are defined as bordering the United States to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west. ...
(Costa Rica
Costa Rica (, ; ; literally "Rich Coast"), officially the Republic of Costa Rica ( es, República de Costa Rica), is a country in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the no ...
, Guatemala
Guatemala ( ; ), officially the Republic of Guatemala ( es, República de Guatemala, links=no), is a country in Central America. It is bordered to the north and west by Mexico; to the northeast by Belize and the Caribbean; to the east by H ...
, Honduras and Nicaragua
Nicaragua (; ), officially the Republic of Nicaragua (), is the largest country in Central America, bordered by Honduras to the north, the Caribbean to the east, Costa Rica to the south, and the Pacific Ocean to the west. Managua is the cou ...
). All the previous airlines started regular operations well before World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
. Puerto Rican commercial airlines such as Prinair
Prinair is a Puerto Rican charter operator airline. It was Puerto Rico's domestic and international flag carrier airline for almost two decades from the mid-1960s to the mid-1980s. Despite previously ceasing scheduled commercial operations twice ...
, Oceanair
Oceanair was a regional airline that was based at Luis Muñoz Marín International Airport in San Juan, Puerto Rico. It competed on domestic routes with Prinair; and on routes to the Virgin Islands with Prinair and with Aero Virgin Islands; ...
, Fina Air
Fina Air was an airline based in San Juan, Puerto Rico named after Josefina Canto who was the mother of Lazaro Canto. It operated charter flights to the Dominican Republic from Luis Muñoz Marín International Airport in San Juan, Rafael Hernán ...
and Vieques Air Link
Vieques Air Link (VAL, IATA code:V4) is a small Puerto Rico-based airline that links Vieques with Culebra and mainland Puerto Rico.
History
Operations began during 1965, with owner Osvaldo "Val" Gonzalez-Duriex piloting a plane with thre ...
came much after the second world war, as did several others from other countries like Mexico's Interjet
Interjet (official legal name ABC Aerolíneas, S.A. de C.V.), also known as Interjet Airlines, was a Mexican low-cost carrier headquartered in Mexico City. The airline operated scheduled flights to and from various destinations within Mexico, as ...
and Volaris
Volaris, legally ''Concesionaria Vuela Compañía de Aviación S.A.P.I. de C.V.'', is a Mexican low-cost airline based in Santa Fe, Álvaro Obregón, Mexico City l-888-Ʒ9Ʒ-I394 with its hubs in Guadalajara, Mexico City, and Tijuana, and focu ...
, Venezuela's Aserca Airlines and others.
The air travel market has evolved rapidly over recent years in Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
. Some industry estimates indicate that over 2,000 new aircraft will begin service over the next five years in this region.
These airlines serve domestic flights within their countries, as well as connections within Latin America and also overseas flights to North America, Europe, Australia, and Asia.
Only five airline groups – Avianca
Avianca S.A. ( acronym in Spanish for ''Aerovias del Continente Americano S.A.'', "Airways of the American Continent") is a Colombian airline. It has been the flag carrier of Colombia since December 5, 1919, when it was initially registered und ...
, Panama's Copa
Copa or COPA may refer to:
COPA
COPA may refer to:
* Computer Operator Programming Assistant. trade of ITI
* Child Online Protection Act, a former U.S. law to protect minors from certain material on the internet
* Canadian Owners and Pilots Ass ...
, Mexico's Volaris
Volaris, legally ''Concesionaria Vuela Compañía de Aviación S.A.P.I. de C.V.'', is a Mexican low-cost airline based in Santa Fe, Álvaro Obregón, Mexico City l-888-Ʒ9Ʒ-I394 with its hubs in Guadalajara, Mexico City, and Tijuana, and focu ...
, the Irelandia group and LATAM Airlines
LATAM Airlines Group S.A. is an airline holding company headquartered in Santiago, Chile. It is considered the largest airline company in Latin America with subsidiaries in Brazil, Colombia, Ecuador, Paraguay and Peru. The company filed for Ch ...
– have international subsidiaries and cover many destinations within the Americas as well as major hubs in other continents. LATAM with Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
as the central operation along with Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
, Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ''Eku ...
, Colombia
Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
, Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
and Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
and formerly with some operations in the Dominican Republic
The Dominican Republic ( ; es, República Dominicana, ) is a country located on the island of Hispaniola in the Greater Antilles archipelago of the Caribbean region. It occupies the eastern five-eighths of the island, which it shares wit ...
. The Avianca
Avianca S.A. ( acronym in Spanish for ''Aerovias del Continente Americano S.A.'', "Airways of the American Continent") is a Colombian airline. It has been the flag carrier of Colombia since December 5, 1919, when it was initially registered und ...
group has its main operation in Colombia based around the hub in Bogotá
Bogotá (, also , , ), officially Bogotá, Distrito Capital, abbreviated Bogotá, D.C., and formerly known as Santa Fe de Bogotá (; ) during the Spanish period and between 1991 and 2000, is the capital city of Colombia, and one of the larges ...
, Colombia, as well as subsidiaries in various Latin American countries with hubs in San Salvador
San Salvador (; ) is the capital and the largest city of El Salvador and its eponymous department. It is the country's political, cultural, educational and financial center. The Metropolitan Area of San Salvador, which comprises the capital i ...
, El Salvador, as well as Lima
Lima ( ; ), originally founded as Ciudad de Los Reyes (City of The Kings) is the capital and the largest city of Peru. It is located in the valleys of the Chillón River, Chillón, Rímac River, Rímac and Lurín Rivers, in the desert zone of t ...
, Peru, with a smaller operation in Ecuador. Copa has subsidiaries Copa Airlines Colombia
Copa Airlines Colombia is a commercial passenger airline founded and registered under the corporate name of AeroRepública S.A. in November 1992, and is the second airline in Colombia for international passengers carried after Avianca and the th ...
and Wingo, both in Colombia, while Volaris of Mexico has Volaris Costa Rica
Vuela Aviacion S.A., operating as Volaris Costa Rica, is a low-cost airline based at Juan Santamaría International Airport in San José, Costa Rica. It is a subsidiary of Mexican airline Volaris. Announced in March 2016, the airline began opera ...
and Volaris El Salvador
Vuela El Salvador S.A. de C.V. operating as Volaris El Salvador, is a low-cost airline based in San Salvador. It is a new subsidiary of Mexican airline Volaris and a local flag carrier for El Salvador.
History
The airline had its first certificat ...
, and the Irelandia group formerly included Viva Aerobus
Aeroenlaces Nacionales, S.A. de C.V., trading as Viva Aerobus, is a Mexican low-cost airline fully owned by the largest bus company group in Mexico, IAMSA, and was co-founded by and invested in by Irelandia Aviation. Based in Monterrey Internati ...
of Mexico; it now includes Viva Colombia
Fast Colombia S.A.S., trading as Viva Air Colombia and formerly VivaColombia, is a Colombian low-cost airline based in Rionegro, Antioquia, Colombia. It is a subsidiary of Irelandia Aviation and third largest airline in the country. It is not l ...
and Viva Air Peru.
Regulation
National
Many countries have national airline
A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.
Hist ...
s that the government owns and operates. Fully private airlines are subject to much government regulation for economic, political, and safety concerns. For instance, governments often intervene to halt airline labor actions to protect the free flow of people, communications, and goods between different regions without compromising safety.
The United States, Australia, and to a lesser extent Brazil, Mexico, India, the United Kingdom, and Japan have "deregulated" their airlines. In the past, these governments dictated airfares, route networks, and other operational requirements for each airline. Since deregulation, airlines have been largely free to negotiate their own operating arrangements with different airports, enter and exit routes easily, and to levy airfares and supply flights according to market demand. The entry barriers for new airlines are lower in a deregulated market, and so the U.S. has seen hundreds of airlines start up (sometimes for only a brief operating period). This has produced far greater competition than before deregulation in most markets. The added competition, together with pricing freedom, means that new entrants often take market share with highly reduced rates that, to a limited degree, full service airlines must match. This is a major constraint on profitability for established carriers, which tend to have a higher cost base.
As a result, profitability in a deregulated market is uneven for most airlines. These forces have caused some major airlines to go out of business, in addition to most of the poorly established new entrants.
In the United States, the airline industry is dominated by four large firms. Because of industry consolidation, after fuel prices dropped considerably in 2015, very little of the savings were passed on to consumers.
International
Groups such as the International Civil Aviation Organization
The International Civil Aviation Organization (ICAO, ) is a specialized agency of the United Nations that coordinates the principles and techniques of international air navigation, and fosters the planning and development of international a ...
establish worldwide standards for safety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries, which designate specific carriers to operate on specific routes. The model of such an agreement was the Bermuda Agreement
The Bermuda Agreement (formally Agreement between the government of the United Kingdom and the government of the United States relating to Air Services between their respective Territories), reached in 1946 by American and British negotiators i ...
between the US and UK following World War II, which designated airports to be used for transatlantic flights and gave each government the authority to nominate carriers to operate routes.
Bilateral agreements are based on the "freedoms of the air
The freedoms of the air are a set of commercial aviation rights granting a country's airlines the privilege to enter and land in another country's airspace. They were formulated as a result of disagreements over the extent of aviation liberalis ...
", a group of generalized traffic rights ranging from the freedom to overfly a country to the freedom to provide domestic flights within a country (a very rarely granted right known as cabotage
Cabotage () is the transport of goods or passengers between two places in the same country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.
Cabotage rights ar ...
). Most agreements permit airlines to fly from their home country to designated airports in the other country: some also extend the freedom to provide continuing service to a third country, or to another destination in the other country while carrying passengers from overseas.
In the 1990s, "open skies
The freedoms of the air are a set of commercial aviation rights granting a country's airlines the privilege to enter and land in another country's airspace. They were formulated as a result of disagreements over the extent of aviation liberali ...
" agreements became more common. These agreements take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States' because of cabotage
Cabotage () is the transport of goods or passengers between two places in the same country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.
Cabotage rights ar ...
restrictions.
Economy
In 2017, 4.1 billion passengers have been carried by airlines in 41.9 million commercial scheduled flights (an average payload of passengers), for 7.75 trillion passenger kilometre
The units of measurement in transportation describes the unit of measurement used to express various transportation quantities, as used in statistics, planning, and their related applications.
Transportation quantity
The currently popular unit ...
s (an average trip of km) over 45,091 airline routes served globally. In 2016, air transport generated $704.4 billion of revenue in 2016, employed 10.2 million workers, supported 65.5 million jobs and $2.7 trillion of economic activity: 3.6% of the global GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
.
In July 2016, the total weekly airline capacity was 181.1 billion Available Seat Kilometers (+6.9% compared to July 2015): 57.6bn in Asia-Pacific, 47.7bn in Europe, 46.2bn in North America, 12.2bn in Middle East, 12.0bn in Latin America and 5.4bn in Africa.
Costs
Airlines have substantial fixed and operating costs to establish and maintain air services: labor, fuel, airplanes, engines, spares and parts, IT services and networks, airport equipment, airport handling services, booking commissions, advertising, catering, training, aviation insurance
Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate ...
and other costs. Thus all but a small percentage of the income from ticket sales is paid out to a wide variety of external providers or internal cost centers.
Moreover, the industry is structured so that airlines often act as tax collectors. Airline fuel is untaxed because of a series of treaties existing between countries. Ticket prices include a number of fees, taxes and surcharges beyond the control of airlines. Airlines are also responsible for enforcing government regulations. If airlines carry passengers without proper documentation on an international flight, they are responsible for returning them back to the original country.
Analysis of the 1992–1996 period shows that every player in the air transport chain is far more profitable than the airlines, who collect and pass through fees and revenues to them from ticket sales. While airlines as a whole earned 6% return on capital employed (2–3.5% less than the cost of capital), airports earned 10%, catering companies 10–13%, handling companies 11–14%, aircraft lessors 15%, aircraft manufacturers 16%, and global distribution companies more than 30%.
There has been continuing cost competition from low cost airline
A low-cost carrier or low-cost airline (occasionally referred to as '' no-frills'', ''budget'' or '' discount carrier'' or ''airline'', and abbreviated as ''LCC'') is an airline that is operated with an especially high emphasis on minimizing op ...
s. Many companies emulate Southwest Airlines in various respects. The lines between full-service and low-cost airlines have become blurred – e.g., with most "full service" airlines introducing baggage check fees despite Southwest not doing so.
Many airlines in the U.S. and elsewhere have experienced business difficulty. U.S. airlines that have declared Chapter 11
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
bankruptcy since 1990 have included American Airlines
American Airlines is a major airlines of the United States, major US-based airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the Largest airlines in the world, largest airline in the world when measured ...
, Continental Airlines (twice), Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
, Northwest Airlines
Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...
, Pan Am
Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United States ...
, United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. and US Airways
US Airways (formerly USAir) was a major United States airline that operated from 1937 until its merger with American Airlines in 2015. It was originally founded in Pittsburgh as a mail delivery airline called All American Aviation, which soon ...
(twice).
Where an airline has established an engineering base at an airport, then there may be considerable economic advantages in using that same airport as a preferred focus (or "hub") for its scheduled flights.
Fuel hedging
Fuel hedging is a contractual tool some large fuel consuming companies, such as airlines, cruise lines and trucking companies, use to reduce their exposure to volatile and potentially rising fuel costs. A fuel hedge contract is a futures contract ...
is a contractual
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to t ...
tool used by transportation companies like airlines to reduce their exposure to volatile and potentially rising fuel costs. Several low-cost carriers such as Southwest Airlines adopt this practice. Southwest is credited with maintaining strong business profits between 1999 and the early 2000s due to its fuel hedging policy. Many other airlines are replicating Southwest's hedging policy to control their fuel costs.
Operating costs for US major airline
The United States Department of Transportation defines a major carrier or major airline carrier as a U.S.-based airline that posts more than $1 billion in revenue during a fiscal year, grouped accordingly as "Group III".
Airlines
According to FY20 ...
s are primarily aircraft operating expense
An operating expense, operating expenditure, operational expense, operational expenditure or opex is an ongoing cost for running a product, business, or system . Its counterpart, a capital expenditure (capex), is the cost of developing or provid ...
including jet fuel, aircraft maintenance
Aircraft maintenance is the performance of tasks required to ensure the continuing airworthiness of an aircraft or aircraft part, including overhaul, inspection, replacement, defect rectification, and the embodiment of modifications, compliance ...
, depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the ...
and aircrew
Aircrew, also called flight crew, are personnel who operate an aircraft while in flight. The composition of a flight's crew depends on the type of aircraft, plus the flight's duration and purpose.
Commercial aviation
Flight deck positions ...
for 44%, servicing expense for 29% (traffic 11%, passenger 11% and aircraft 7%), 14% for reservations and sales and 13% for overheads
In business, overhead or overhead expense refers to an ongoing expense of operating a business. Overheads are the expenditure which cannot be conveniently traced to or identified with any particular revenue unit, unlike operating expenses such as r ...
(administration 6% and advertising 2%). An average US major Boeing 757
The Boeing 757 is an American narrow-body airliner designed and built by Boeing Commercial Airplanes.
The then-named 7N7, a twinjet successor for the 727 (a trijet), received its first orders in August 1978.
The prototype completed its mai ...
-200 flies stages 11.3 block hours per day and costs $2,550 per block hour: $923 of ownership, $590 of maintenance, $548 of fuel and $489 of crew; or $13.34 per 186 seats per block hour. For a Boeing 737-500
The Boeing 737 Classic is a series of narrow-body airliners produced by Boeing Commercial Airplanes, the second generation of the Boeing 737 series of aircraft.
Development began in 1979 and the first variant, the 737-300, first flew in Februa ...
, a low-cost carrier like Southwest have lower operating costs at $1,526 than a full service one like United at $2,974, and higher productivity
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proces ...
with 399,746 ASM per day against 264,284, resulting in a unit cost of $cts/ASM against $cts/ASM.
McKinsey
McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest and ...
observes that "newer technology, larger aircraft, and increasingly efficient operations continually drive down the cost of running an airline", from nearly 40 US cents per ASK
Ask is the active verb for a direct question.
Ask may also refer to:
Places
* Ask, Akershus, a village in Gjerdrum municipality, Viken county, Norway
* Ask, Buskerud, a village in Ringerike municipality, Viken county, Norway
* Ask, Vestland, a ...
at the beginning of the jet age, to just above 10 cents since 2000. Those improvements were passed onto the customer due to high competition: fares have been falling throughout the history of airlines.
Revenue
Airlines assign prices to their services in an attempt to maximize profitability. The pricing of airline tickets has become increasingly complicated over the years and is now largely determined by computerized yield management
Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats or hotel room reservation ...
systems.
Because of the complications in scheduling flights and maintaining profitability, airlines have many loopholes that can be used by the knowledgeable traveler. Many of these airfare secrets are becoming more and more known to the general public, so airlines are forced to make constant adjustments.
Most airlines use differentiated pricing, a form of price discrimination
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination is distinguished from product differe ...
, to sell air services at varying prices simultaneously to different segments. Factors influencing the price include the days remaining until departure, the booked load factor, the forecast of total demand by price point, competitive pricing in force, and variations by day of week of departure and by time of day. Carriers often accomplish this by dividing each cabin of the aircraft (first, business and economy) into a number of travel class
A travel class is a quality of accommodation on public transport. The accommodation could be a seat or a cabin for example. Higher travel classes are designed to be more comfortable and are typically more expensive.
Airlines
Traditionally ...
es for pricing purposes.
A complicating factor is that of origin-destination control ("O&D control"). Someone purchasing a ticket from Melbourne to Sydney (as an example) for A$200 is competing with someone else who wants to fly Melbourne to Los Angeles through Sydney on the same flight, and who is willing to pay A$1400. Should the airline prefer the $1400 passenger, or the $200 passenger plus a possible Sydney-Los Angeles passenger willing to pay $1300? Airlines have to make hundreds of thousands of similar pricing decisions daily.
The advent of advanced computerized reservations systems in the late 1970s, most notably Sabre
A sabre ( French: sabʁ or saber in American English) is a type of backsword with a curved blade associated with the light cavalry of the early modern and Napoleonic periods. Originally associated with Central European cavalry such as th ...
, allowed airlines to easily perform cost-benefit analyses on different pricing structures, leading to almost perfect price discrimination in some cases (that is, filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere).
The intense nature of airfare pricing has led to the term "fare war
A fare is the fee paid by a passenger for use of a public transport system: rail, bus, taxi, etc. In the case of air transport, the term airfare is often used. Fare structure is the system set up to determine how much is to be paid by various pas ...
" to describe efforts by airlines to undercut other airlines on competitive routes. Through computers, new airfares can be published quickly and efficiently to the airlines' sales channels. For this purpose the airlines use the Airline Tariff Publishing Company (ATPCO), who distribute latest fares for more than 500 airlines to Computer Reservation System Computer reservation systems, or central reservation systems (CRS), are computerized systems used to store and retrieve information and conduct transactions related to air travel, hotels, car rental, or other activities. Originally designed and ope ...
s across the world.
The extent of these pricing phenomena is strongest in "legacy" carriers. In contrast, low fare carriers usually offer pre-announced and simplified price structure, and sometimes quote prices for each leg of a trip separately.
Computers also allow airlines to predict, with some accuracy, how many passengers will actually fly after making a reservation to fly. This allows airlines to overbook their flights enough to fill the aircraft while accounting for "no-shows", but not enough (in most cases) to force paying passengers off the aircraft for lack of seats, stimulative pricing for low demand flights coupled with overbooking
Overselling or overbooking is sale of a volatile good or service in excess of actual supply. Overselling is a common practice in the travel and hospitality sectors, in which it is expected that some people will cancel. The practice occurs as an in ...
on high demand flights can help reduce this figure. This is especially crucial during tough economic times as airlines undertake massive cuts to ticket prices to retain demand.
Over January/February 2018, the cheapest airline surveyed by price comparator rome2rio
Rome2rio is an Australian online multimodal transport journey planner offering traveling services globally. The company is based in Melbourne, Australia. It is owned by the German online travel comparison and booking website Omio.
History
Rome ...
was now-defunct Tigerair Australia
Tiger Airways Australia Pty Ltd, operating as Tigerair Australia, was an Australian low-cost airline. Founded by Tiger Airways Holdings, it commenced services in the domestic airline market on 23 November 2007 as Tiger Airways Australia. It l ...
with $0.06/km followed by AirAsia X
AirAsia X (previously known as ''FlyAsianXpress Sdn. Bhd.''), is a long-haul budget airline based in Malaysia, and a sister company of AirAsia. It commenced operations on 2 November 2007 with its first service flown from Kuala Lumpur Internat ...
with $0.07/km, while the most expensive was Charterlines, Inc. with $1.26/km followed by Buddha Air
Buddha Air Pvt. Ltd ( ne, बुद्ध एयर) is an airline based in Jawalakhel, Lalitpur, Nepal, near Patan. It operates domestic as well as international services within Nepal and India, serving mainly large towns and cities in Ne ...
with $1.18/km.
For the IATA, the global airline industry revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
was $754 billion in 2017 for a $38.4 billion collective profit, and should rise by 10.7% to $834 billion in 2018 for a $33.8 billion profit forecast, down by 12% due to rising jet fuel and labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the la ...
costs.
The demand for air transport will be less elastic
Elastic is a word often used to describe or identify certain types of elastomer, elastic used in garments or stretchable fabrics.
Elastic may also refer to:
Alternative name
* Rubber band, ring-shaped band of rubber used to hold objects togeth ...
for longer flights than for shorter flights, and more elastic for leisure travel than for business travel
Business travel is travel undertaken for work or business purposes, as opposed to other types of travel, such as for leisure purposes or regularly commuting
Commuting is periodically recurring travel between one's place of residence ...
.
Airlines often have a strong seasonality
In time series data, seasonality is the presence of variations that occur at specific regular intervals less than a year, such as weekly, monthly, or quarterly. Seasonality may be caused by various factors, such as weather, vacation, and holidays a ...
, with traffic low in winter and peaking in summer. In Europe the most extreme market are the Greek islands
Greece has many islands, with estimates ranging from somewhere around 1,200 to 6,000, depending on the minimum size to take into account. The number of inhabited islands is variously cited as between 166 and 227.
The largest Greek island by a ...
with July/August having more than ten times the winter traffic, as Jet2
Jet2.com Limited is a British low-cost leisure airline offering scheduled and charter flights from the United Kingdom. As of 2022, it is the third-largest scheduled airline in the UK, behind EasyJet and British Airways. Jet2 is also officia ...
is the most seasonal among low-cost carriers with July having seven times the January traffic, whereas legacy carrier
A legacy carrier, in the United States, is an airline that had established interstate routes before the beginning of the route liberalization permitted by the Airline Deregulation Act of 1978 and so was directly affected by that Act. Legacy carr ...
s are much less with only 85/115% variability.
Assets and financing
Airline financing is quite complex, since airlines are highly leveraged operations. Not only must they purchase (or lease) new airliner bodies and engines regularly, they must make major long-term fleet decisions with the goal of meeting the demands of their markets while producing a fleet that is relatively economical to operate and maintain; comparably Southwest Airlines and their reliance on a single airplane type (the Boeing 737
The Boeing 737 is a narrow-body aircraft produced by Boeing at its Boeing Renton Factory, Renton Factory in Washington (state), Washington.
Developed to supplement the Boeing 727 on short and thin routes, the twinjet retains the Boeing 707, 7 ...
and derivatives), with the now defunct Eastern Air Lines which operated 17 different aircraft types, each with varying pilot, engine, maintenance, and support needs.
A second financial issue is that of hedging oil
An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
and fuel purchases, which are usually second only to labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the la ...
in its relative cost to the company. However, with the current high fuel prices it has become the largest cost to an airline. Legacy airlines, compared with new entrants, have been hit harder by rising fuel prices partly due to the running of older, less fuel efficient aircraft. While hedging instruments can be expensive, they can easily pay for themselves many times over in periods of increasing fuel costs, such as in the 2000–2005 period.
In view of the congestion apparent at many international airport
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consists of a landing area, which comprises an aerially accessible open space including at least one operationally active surface ...
s, the ownership of slots at certain airports (the right to take-off or land an aircraft at a particular time of day or night) has become a significant tradable asset for many airlines. Clearly take-off slots at popular times of the day can be critical in attracting the more profitable business traveler to a given airline's flight and in establishing a competitive advantage against a competing airline.
If a particular city has two or more airports, market forces will tend to attract the less profitable routes, or those on which competition is weakest, to the less congested airport, where slots are likely to be more available and therefore cheaper. For example, Reagan National Airport
Ronald Reagan Washington National Airport , sometimes referred to colloquially as National Airport, Washington National, Reagan National Airport, DCA, Reagan, or simply National, is an international airport in Arlington County, Virginia, across ...
attracts profitable routes due partly to its congestion, leaving less-profitable routes to Baltimore-Washington International Airport
Baltimore/Washington International Thurgood Marshall Airport , commonly referred to as BWI or BWI Marshall, is an international airport in the Eastern United States serving mainly Baltimore, Maryland and Washington, D.C. With Dulles Internat ...
and Dulles International Airport
Washington Dulles International Airport , typically referred to as Dulles International Airport, Dulles Airport, Washington Dulles, or simply Dulles ( ), is an international airport in the Eastern United States, located in Loudoun County and F ...
.
Other factors, such as surface transport facilities and onward connections, will also affect the relative appeal of different airports and some long-distance flights may need to operate from the one with the longest runway. For example, LaGuardia Airport
LaGuardia Airport is a civil airport in East Elmhurst, Queens, New York City. Covering , the facility was established in 1929 and began operating as a public airport in 1939. It is named after former New York City mayor Fiorello La Guardia ...
is the preferred airport for most of Manhattan
Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
due to its proximity, while long-distance routes must use John F. Kennedy International Airport
John F. Kennedy International Airport (colloquially referred to as JFK Airport, Kennedy Airport, New York-JFK, or simply JFK) is the main international airport serving New York City. The airport is the busiest of the seven airports in the Avia ...
's longer runways.
Partnerships
Codesharing
A codeshare agreement, also known simply as codeshare, is a business arrangement, common in the aviation industry, in which two or more airlines publish and market the same flight under their own airline designator and flight number (the "airli ...
is the most common type of airline partnership; it involves one airline selling tickets for another airline's flights under its own airline code. An early example of this was Japan Airlines' (JAL) codesharing partnership with Aeroflot in the 1960s on Tokyo
Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.468 ...
–Moscow
Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...
flights; Aeroflot operated the flights using Aeroflot aircraft, but JAL sold tickets for the flights as if they were JAL flights. This practice allows airlines to expand their operations, at least on paper, into parts of the world where they cannot afford to establish bases or purchase aircraft. Another example was the Austrian
Austrian may refer to:
* Austrians, someone from Austria or of Austrian descent
** Someone who is considered an Austrian citizen, see Austrian nationality law
* Austrian German dialect
* Something associated with the country Austria, for example: ...
–Sabena
The ''Societé anonyme belge d'Exploitation de la Navigation aérienne'' (French; ), better known by the acronym Sabena or SABENA, was the national airline of Belgium from 1923 to 2001, with its base at Brussels National Airport. After its ba ...
partnership on the Vienna
en, Viennese
, iso_code = AT-9
, registration_plate = W
, postal_code_type = Postal code
, postal_code =
, timezone = CET
, utc_offset = +1
, timezone_DST ...
–Brussels
Brussels (french: Bruxelles or ; nl, Brussel ), officially the Brussels-Capital Region (All text and all but one graphic show the English name as Brussels-Capital Region.) (french: link=no, Région de Bruxelles-Capitale; nl, link=no, Bruss ...
– New York/JFK route during the late '60s, using a Sabena Boeing 707 with Austrian livery.
Since airline reservation requests are often made by city-pair (such as "show me flights from Chicago to Düsseldorf"), an airline that can codeshare with another airline for a variety of routes might be able to be listed as indeed offering a Chicago–Düsseldorf
Düsseldorf ( , , ; often in English sources; Low Franconian and Ripuarian: ''Düsseldörp'' ; archaic nl, Dusseldorp ) is the capital city of North Rhine-Westphalia, the most populous state of Germany. It is the second-largest city in th ...
flight. The passenger is advised however, that airline no. 1 operates the flight from say Chicago to Amsterdam (for example), and airline no. 2 operates the continuing flight (on a different airplane, sometimes from another terminal) to Düsseldorf. Thus the primary rationale for code sharing is to expand one's service offerings in city-pair terms to increase sales.
A more recent development is the airline alliance
An airline alliance is an aviation industry arrangement between two or more airlines agreeing to cooperate on a substantial level. Alliances may provide marketing branding to facilitate travelers making inter-airline codeshare connections within c ...
, which became prevalent in the late 1990s. These alliances can act as virtual mergers to get around government restrictions. The largest are Star Alliance
Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its CEO is Jeffrey Goh and its headquarters is located in Frankfurt am Main, Germany. , Star Alliance is the largest of the three global alliances by passenge ...
, SkyTeam and Oneworld
Oneworld (stylised as oneworld; Computer reservations system, CRS: *O) is an airline alliance founded on 1 February 1999. The alliance's stated objective is to be the first choice airline alliance for the world's frequent international traveller ...
, and these accounted for over 60% of global commercial air traffic . Alliances of airlines coordinate their passenger service programs (such as lounges and frequent-flyer programs), offer special interline tickets and often engage in extensive codesharing
A codeshare agreement, also known simply as codeshare, is a business arrangement, common in the aviation industry, in which two or more airlines publish and market the same flight under their own airline designator and flight number (the "airli ...
(sometimes systemwide). These are increasingly integrated business combinations—sometimes including cross-equity arrangements—in which products, service standards, schedules, and airport facilities are standardized and combined for higher efficiency. One of the first airlines to start an alliance with another airline was KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
, who partnered with Northwest Airlines
Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...
. Both airlines later entered the SkyTeam alliance after the fusion of KLM and Air France in 2004.
Often the companies combine IT operations, or purchase fuel and aircraft as a bloc to achieve higher bargaining power. However, the alliances have been most successful at purchasing invisible supplies and services, such as fuel. Airlines usually prefer to purchase items visible to their passengers to differentiate themselves from local competitors. If an airline's main domestic competitor flies Boeing airliners, then the airline may prefer to use Airbus aircraft regardless of what the rest of the alliance chooses.
Largest airlines
The world's largest airlines
The largest airlines in the world can be defined in several ways. , Delta Air Lines is the largest by revenue, assets value and market capitalization, China Southern Air Holding by passengers carried and revenue passenger mile, American Airlin ...
can be defined in several ways. , American Airlines Group
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed on December 9, 2013, by the merger of AMR Corporation, the parent company of American Airlines, and US Airways ...
was the largest by fleet size, passengers carried and revenue passenger mile
A passenger (also abbreviated as pax) is a person who travels in a vehicle, but does not bear any responsibility for the tasks required for that vehicle to arrive at its destination or otherwise operate the vehicle, and is not a steward. The ...
. Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the world's oldest airlines in operation, Delta is headquartered in Atlanta, Georgia. The airline, along w ...
was the largest by revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
, asset
In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value ...
s value and market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
. Lufthansa Group
Deutsche Lufthansa AG (), commonly shortened to Lufthansa, is the flag carrier of Germany. When combined with its subsidiaries, it is the second- largest airline in Europe in terms of passengers carried. Lufthansa is one of the five founding ...
was the largest by number of employees, FedEx Express
FedEx Express, a subsidiary of FedEx Corporation, is a major American cargo airline based in Memphis, Tennessee, United States. As of 2020, it is one of the world's largest airlines in terms of fleet size and freight tons flown. It is the na ...
by freight tonne-kilometres, Turkish Airlines
Turkish Airlines ( Turkish: ''Türk Hava Yolları'') is the national flag carrier airline of Turkey. , it operates scheduled services to 340 destinations in Europe, Asia, Africa, and the Americas, making it the largest mainline carrier in the ...
by number of countries served and UPS Airlines
UPS Airlines is a major American cargo airline based in Louisville, Kentucky. The second-largest cargo airline worldwide ( in terms of freight volume flown), UPS Airlines flies to 815 destinations worldwide. A wholly owned subsidiary of UPS (Unit ...
by number of destinations served (though United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. was the largest passenger airline by number of destinations served).
State support
Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. The airline industry as a whole has made a cumulative loss during its 100-year history.
One argument is that positive externalities
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
, such as higher growth due to global mobility, outweigh the microeconomic losses and justify continuing government intervention. A historically high level of government intervention in the airline industry can be seen as part of a wider political consensus on strategic forms of transport, such as highway
A highway is any public or private road or other public way on land. It is used for major roads, but also includes other public roads and public tracks. In some areas of the United States, it is used as an equivalent term to controlled-access ...
s and railways
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
, both of which receive public funding in most parts of the world. Although many countries continue to operate state-owned or parastatal airlines, many large airlines today are privately owned and are therefore governed by microeconomic principles to maximize shareholder profit.
In December 1991, the collapse of Pan Am, an airline often credited for shaping the international airline industry, highlighted the financial complexities faced by major airline companies.
Following the 1978 deregulation, U.S. carriers did not manage to make an aggregate profit for 12 years in 31, including four years where combined losses amounted to $10 billion, but rebounded with eight consecutive years of profits since 2010, including its four with over $10 billion profits. They drop loss-making routes, avoid fare war
A fare is the fee paid by a passenger for use of a public transport system: rail, bus, taxi, etc. In the case of air transport, the term airfare is often used. Fare structure is the system set up to determine how much is to be paid by various pas ...
s and market share battles, limit capacity growth, add hub feed with regional jet
A regional jet (RJ) is a jet-powered regional airliner with fewer than 100 seats. The first one was the Sud-Aviation Caravelle in 1959, followed by the widespread Yakovlev Yak-40, Fokker F-28, and BAe 146. The 1990s saw the emergence of ...
s to increase their profitability
In economics, profit is the difference between the revenue that an economic entity has received from its outputs and the total cost of its inputs. It is equal to total revenue minus total cost, including both explicit and implicit costs.
It i ...
. They change schedules to create more connections, buy used aircraft, reduce international frequencies and leverage partnership
A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments o ...
s to optimize capacities and benefit from overseas connectivity.
Environment
Aircraft engines emit noise pollution
Noise pollution, also known as environmental noise or sound pollution, is the propagation of noise with ranging impacts on the activity of human or animal life, most of them are harmful to a degree. The source of outdoor noise worldwide is ma ...
, gases and particulate emissions, and contribute to global dimming
Global dimming is the reduction in the amount of global direct irradiance at the Earth's surface that has been observed since systematic measurements began in the 1950s. The effect varies by location, but worldwide it has been estimated to be of ...
.
Growth of the industry in recent years raised a number of ecological questions.
Domestic air transport grew in China at 15.5 percent annually from 2001 to 2006. The rate of air travel globally increased at 3.7 percent per year over the same time. In the EU greenhouse gas emissions
Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and ...
from aviation increased by 87% between 1990 and 2006. However it must be compared with the flights increase, only in UK, between 1990 and 2006 terminal passengers increased from 100 000 thousands to 250 000 thousands., according to AEA reports every year, 750 million passengers travel by European airlines, which also share 40% of merchandise value in and out of Europe. Without even pressure from "green activists", targeting lower ticket prices, generally, airlines do what is possible to cut the fuel consumption (and gas emissions connected therewith). Further, according to some reports, it can be concluded that the last piston-powered aircraft were as fuel-efficient as the average jet in 2005.
Despite continuing efficiency improvements from the major aircraft manufacturers, the expanding demand for global air travel has resulted in growing greenhouse gas (GHG) emissions. Currently, the aviation sector, including US domestic and global international travel, make approximately 1.6 percent of global anthropogenic GHG emissions per annum. North America accounts for nearly 40 percent of the world's GHG emissions from aviation fuel use.
emissions from the jet fuel burned per passenger on an average airline flight is about 353 kilograms (776 pounds). Loss of natural habitat potential associated with the jet fuel burned per passenger on a airline flight is estimated to be 250 square meters (2700 square feet).
In the context of climate change and peak oil
Peak oil is the hypothetical point in time when the maximum rate of global oil production is reached, after which it is argued that production will begin an irreversible decline. It is related to the distinct concept of oil depletion; while ...
, there is a debate about possible taxation
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal person, legal entity) by a governmental organization in order to fund government spending and various public expenditures (regiona ...
of air travel and the inclusion of aviation in an emissions trading
Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission ...
scheme, with a view to ensuring that the total external costs
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
of aviation are taken into account.
The airline industry is responsible for about 11 percent of greenhouse gases emitted by the U.S. transportation sector. Boeing
The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and p ...
estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80 percent. The solution would be blending algae fuels with existing jet fuel:
* Boeing and Air New Zealand
Air New Zealand Limited () is the flag carrier airline of New Zealand. Based in Auckland, the airline operates scheduled passenger flights to 20 domestic and 30 international destinations in 18 countries, primarily around and within the Pacif ...
are collaborating with leading Brazilian biofuel maker Tecbio
Jet fuel or aviation turbine fuel (ATF, also abbreviated avtur) is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is colorless to straw-colored in appearance. The most commonly used fuels for commercial a ...
, New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
's Aquaflow Bionomic There are various social, economic, environmental and technical issues with biofuel production and use, which have been discussed in the popular media and scientific journals. These include: the effect of moderating oil prices, the "food vs fuel" de ...
and other jet biofuel developers around the world.
* Virgin Atlantic
Virgin Atlantic, a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited, is a British airline with its head office in Crawley, England. The airline was established in 1984 as British Atlantic Airways, and ...
and Virgin Green Fund
Virgin Green Fund was established in 2007 to invest in companies in the renewable energy and resource efficiency sectors in the US and Europe. It closed in 2014.
Investment history
The fund's first fundraising round raised $199m from Virgin a ...
are looking into the technology as part of a biofuel initiative.
* KLM
KLM Royal Dutch Airlines, legally ''Koninklijke Luchtvaart Maatschappij N.V.'' (literal translation: Royal Aviation Company Plc.), is the flag carrier airline of the Netherlands. KLM is headquartered in Amstelveen, with its hub at nearby Amste ...
has made the first commercial flight with biofuel in 2009.
There are projects on electric aircraft, and some of which are fully operational as of 2013.
Call signs
Main Article : Aviation call signs Aviation call signs are communication call signs assigned as unique identifiers to aircraft.
Call signs in aviation are derived from several different policies, depending upon the type of flight operation and whether or not the caller is in an airc ...
Each operator of a scheduled or charter flight uses an airline call sign when communicating with airports or air traffic control. Most of these call-signs are derived from the airline's trade name, but for reasons of history, marketing, or the need to reduce ambiguity in spoken English (so that pilots do not mistakenly make navigational decisions based on instructions issued to a different aircraft), some airlines and air forces use call-signs less obviously connected with their trading name. For example, British Airways uses a ''Speedbird'' call-sign, named after the logo of one of its predecessors, BOAC, while SkyEurope
SkyEurope Airlines was a low-cost airline headquartered in Bratislava, with its main base at Bratislava Airport (BTS) in Bratislava, Slovakia, and another base in Prague. The carrier filed for bankruptcy on 31 August 2009 and suspended all fli ...
used ''Relax''.
Personnel
The various types of airline personnel include Flight crew
Aircrew, also called flight crew, are personnel who operate an aircraft while in flight. The composition of a flight's crew depends on the type of aircraft, plus the flight's duration and purpose.
Commercial aviation
Flight deck positions ...
, responsible for the operation of the aircraft. Flight crew members include: Pilots
An aircraft pilot or aviator is a person who controls the flight of an aircraft by operating its directional flight controls. Some other aircrew members, such as navigators or flight engineers, are also considered aviators, because they a ...
(Captain
Captain is a title, an appellative for the commanding officer of a military unit; the supreme leader of a navy ship, merchant ship, aeroplane, spacecraft, or other vessel; or the commander of a port, fire or police department, election precinct, e ...
and First Officer: some older aircraft also required a Flight Engineer and/or a Navigator
A navigator is the person on board a ship or aircraft responsible for its navigation.Grierson, MikeAviation History—Demise of the Flight Navigator FrancoFlyers.org website, October 14, 2008. Retrieved August 31, 2014. The navigator's primar ...
); Flight attendant
A flight attendant, also known as steward/stewardess or air host/air hostess, is a member of the aircrew aboard commercial flights, many business jets and some government aircraft. Collectively called cabin crew, flight attendants are prima ...
s (led by a purser
A purser is the person on a ship principally responsible for the handling of money on board. On modern merchant ships, the purser is the officer responsible for all administration (including the ship's cargo and passenger manifests) and supply. ...
on larger aircraft); In-flight security personnel on some airlines (most notably El Al
El Al Israel Airlines Ltd. (, he, אל על נתיבי אויר לישראל בע״מ), trading as El Al (Hebrew: , "Upwards", "To the Skies" or "Skywards", stylized as ELAL; ar, إل-عال), is the flag carrier of Israel. Since its inaugura ...
)
Groundcrew
In all forms of aviation, ground crew (also known as ground operations in civilian aviation) are personnel that service aircraft while on the ground, during routine turn-around; as opposed to aircrew, who operate all aspects of an aircraft whilst ...
, responsible for operations at airports, include Aerospace and avionics engineers responsible for certifying the aircraft for flight and management of aircraft maintenance; Aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
engineers, responsible for airframe, powerplant and electrical systems maintenance; Avionics
Avionics (a blend of ''aviation'' and ''electronics'') are the electronic systems used on aircraft. Avionic systems include communications, navigation, the display and management of multiple systems, and the hundreds of systems that are fit ...
engineers responsible for avionics and instruments maintenance; Airframe and powerplant
Propulsion is the generation of force by any combination of pushing or pulling to modify the translational motion of an object, which is typically a rigid body (or an articulated rigid body) but may also concern a fluid. The term is derived from ...
technicians; Electric System technicians, responsible for maintenance of electrical systems; Flight dispatchers; Baggage handler
In the airline industry, a baggage handler is a person who loads and unloads baggage (suitcases or luggage), and other cargo (airfreight, mail, counter-to-counter packages) for transport via aircraft. With most airlines, the formal job title i ...
s; Ramp Agents; Remote centralized weight and balancing; Gate agent
Gate agents work at the boarding gates of airports, assisting passengers in boarding their flights and in disembarking their flights.
About
Shifts vary with the particular airline's flight schedule, and, like ticket agents, gate agents must wear ...
s; Ticket agents; Passenger service agents (such as airline lounge employees); Reservation agents, usually (but not always) at facilities outside the airport; Crew schedulers.
Airlines follow a corporate
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
structure where each broad area of operations (such as maintenance, flight operations (including flight safety), and passenger service) is supervised by a vice president. Larger airlines often appoint vice presidents to oversee each of the airline's hubs as well. Airlines employ lawyers
A lawyer is a person who practices law. The role of a lawyer varies greatly across different legal jurisdictions. A lawyer can be classified as an advocate, attorney, barrister, canon lawyer, civil law notary, counsel, counselor, solicitor, ...
to deal with regulatory procedures and other administrative tasks.
Trends
The pattern of ownership has been privatized since the mid-1980s, that is, the ownership has gradually changed from governments to private and individual sectors or organizations. This occurs as regulators permit greater freedom and non-government ownership, in steps that are usually decades apart. This pattern is not seen for all airlines in all regions. Many major airlines operating between the 1940s and 1980s were government-owned or government-established. However, most airlines from the earliest days of air travel in the 1920s and 1930s were personal businesses.
Growth rates are not consistent in all regions, but countries with a deregulated airline industry have more competition and greater pricing freedom. This results in lower fares and sometimes dramatic spurts in traffic growth. The U.S., Australia, Canada, Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
, Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and other markets exhibit this trend. The industry has been observed to be cyclical in its financial performance. Four or five years of poor earnings precede five or six years of improvement. But profitability even in the good years is generally low, in the range of 2–3% net profit after interest and tax. In times of profit, airlines lease new generations of airplanes and upgrade services in response to higher demand. Since 1980, the industry has not earned back the cost of capital during the best of times. Conversely, in bad times losses can be dramatically worse. Warren Buffett
Warren Edward Buffett ( ; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net ...
in 1999 said "the money that had been made since the dawn of aviation by all of this country's airline companies was zero. Absolutely zero."
As in many mature industries, consolidation is a trend. Airline groupings may consist of limited bilateral partnerships, long-term, multi-faceted alliances between carriers, equity arrangements, mergers, or takeover
In business, a takeover is the purchase of one company (the ''target'') by another (the ''acquirer'' or ''bidder''). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to ...
s. Since governments often restrict ownership and merger between companies in different countries, most consolidation takes place within a country. In the U.S., over 200 airlines have merged, been taken over, or gone out of business since the Airline Deregulation Act
The Airline Deregulation Act is a 1978 United States federal law that deregulated the airline industry in the United States, removing federal control over such areas as fares, routes, and market entry of new airlines. The Civil Aeronautics Boa ...
in 1978. Many international airline managers are lobbying their governments to permit greater consolidation to achieve higher economy and efficiency.
Types
There are several types of passenger airlines, mainly
* Mainline airlines operate flights by the airline's main operating unit, rather than by regional affiliates or subsidiaries
* Regional airlines, non-"mainline" airlines that operate regional aircraft
A regional airliner or a feederliner is a small airliner that is designed to fly up to 100 passengers on short-haul flights, usually feeding larger carriers' airline hubs from small markets. This class of airliners is typically flown by the r ...
; regionals typically operate over shorter non-intercontinental distances, often as feeder services for legacy mainline networks
* Low-cost carriers, giving a "basic", "no-frills" and perceived inexpensive service
* Business class airline A business class airline is an airline concept which emerged during the mid-first decade of the 21st century a number of airlines that operated all-business class service.
History
In the decade of 2000s, several dedicated business class airlines, ...
, an airline aimed at the business traveler, featuring all business class
Business class is a travel class available on many commercial airlines and rail lines, known by brand names which vary, by airline or rail company. In the airline industry, it was originally intended as an intermediate level of service between ...
seating and amenities
* Charter airline
Air charter is the business of renting an entire aircraft (i.e., chartering) as opposed to individual aircraft seats (i.e., purchasing a ticket through a traditional airline).
Regulation
Charter – also called air taxi or ad hoc – flights ...
s, operating outside regular schedule intervals
* Flag carrier
A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.
Hi ...
s, the historically nationally owned airlines that were considered representative of the country overseas.
* Legacy carrier
A legacy carrier, in the United States, is an airline that had established interstate routes before the beginning of the route liberalization permitted by the Airline Deregulation Act of 1978 and so was directly affected by that Act. Legacy carr ...
s, US carriers that predate the Airline Deregulation Act of 1978
The Airline Deregulation Act is a 1978 United States federal law that deregulated the airline industry in the United States, removing federal control over such areas as fares, routes, and market entry of new airlines. The Civil Aeronautics Boa ...
* Major airlines of the United States, airlines with at least $1 billion in revenues
See also
Related lists
References
Bibliography
# "A history of the world's airlines", R.E.G. Davies, Oxford U.P, 1964
# "The airline encyclopedia, 1909–2000.” Myron J. Smith, Scarecrow Press, 2002
# "Flying Off Course: The Economics of International Airlines," 3rd edition. Rigas Doganis, Routledge, New York, 2002.
# "The Airline Business in the 21st Century." Rigas Doganis, Routledge, New York, 2001.
External links
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{{Authority control
Economics of transport and utility industries