ESTABLISHMENT AN AIRLINE COMPANY (TOURISM MANAGEMENT POINT OF VIEW)

1. ESTABLISHMENT AN AIRLINE COMPANY (TOURISM MANAGEMENT POINT OF VIEW) Asst.Prof.Dr. Osman N. ÖZDOĞAN ADNAN MENDERES UNIVERSITY TURKEY

2. CONTENT • What is Tourism • Overview of World Tourism Movements • Development of Airlines • Tourism & Airlines Relationship • Charter Flights • Packaged Tours • Establishment an Airline Company via Tourism onozdogan@adu.edu.tr

3. WHAT IS TOURISM The temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs. Tourism is the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes. onozdogan@adu.edu.tr

4. Dimensions of Tourism The tourism industry is divided intofive different sectors: • Accommodation • Food and Beverage Services • Recreation and Entertainment • Transportation • Travel Services onozdogan@adu.edu.tr

5. WORLD TOURISM World’s Largest and Continuosly growing industry... onozdogan@adu.edu.tr

6. WORLD TOURISM onozdogan@adu.edu.tr

7. WORLD TOURISM Europe is no 1 onozdogan@adu.edu.tr

8. WHY PEOPLE TRAVEL??? • Because of God!!! God created us with legs  • Dates back to history of humanity... • Hunt and searching food... Commerce and trade... Movements of troops .. Then in the ancient times whealty greek and romans started to travel for leisure for their summer homes.... Travel for pilgrims... 16th century aristocrats and whealty people travel for art and education.... İndustrial revolution steam power created a revolution in travel... Now middle class start to travel for leisure.. İn 1841 (carpenter)Thomas Cook organized first packaged travel... Paris and Alps was the main favorite destinations... Air travel began after World War II, when a surplus of aeronautical technology and ex-military pilots who were more than ready to fly... Over the years different developments in tourism have changed the way we travel, such as technology, safety and security, costs, social changes... onozdogan@adu.edu.tr

9. Types of Tourism onozdogan@adu.edu.tr

10. Air Travel • First air travel started with zeppelin in 1909 in Germany... • Today there are 1.568 Airline company in the World... onozdogan@adu.edu.tr

11. Air Travel • Today there are 1.568 Airline companies in the World... onozdogan@adu.edu.tr

12. Air Travel In1900s Wright Brothers Benoist XIV1913 The first airliner in the World. Flew in Florida for only months. onozdogan@adu.edu.tr

13. Air Travel Armstrong Whitworth Aw.15 AtalantaAirline: Imperial Airways  (1934) Country: UK Avro Lancastrian Airline: Alitalia  (1947) Country: UK onozdogan@adu.edu.tr

14. Air Travel • Boeing 707-320 seriesBoeing 707-320B prototype in 1959 -for Pan American150 Passengers Boeing 727 series 100   Airline:  Pan American used the early model 727  (1967) 100+ Passengers onozdogan@adu.edu.tr

15. Air Travel Tupolev Tu-144 (1980-1989)Airline:  Aeroflot140 Passengers Airbus A310 Airline:  PANAM  202 Passengers onozdogan@adu.edu.tr

16. Air Travel Airbus A318 (1990-2000) Airline:  British Airways Airbus A318140+ Passengers Airbus 380 (2007) 850 Passengers 295 million USD Boeing 787 250-300 Passengers (2010) 140 million USD Boeing says in 20 years 29.000 aircraft Will be sold… onozdogan@adu.edu.tr

17. Air Travel Tupolev Tu-144 (1980-1989)Airline:  Aeroflot140 Passengers Airbus A310 Airline:  PANAM  202 Passengers onozdogan@adu.edu.tr

18. Map of scheduled airline traffic in 2009... onozdogan@adu.edu.tr

19. Charter flights Flights can be classified as scheduled flights and Charter flights... • Charter : The hiring or leasing of an aircraft, vessel, or other vehicle, especially for the exclusive, temporary use of a group of travelers. onozdogan@adu.edu.tr

20. PACKAGE TOURS Many charter flights are sold as part of a package tours in which the price paid includes flights, accommodation and other services... Package Tours: consists of transport and accommodation advertised and sold together by a vendor known as a tour operator. (Bundled product) onozdogan@adu.edu.tr

21. HOW PACKAGE TOUR WORKS??? TOUR OPERATORS onozdogan@adu.edu.tr

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24. ADVANTAGE OF CHARTER FLIGHTS • Operate by Tour Operators. • Consortium Opportunities with other TO. • High Occupancy rates. • Low costs (no meal, close seat spaces, flys to small and medium size airports) onozdogan@adu.edu.tr

25. SAMPLE CHARTER AIRLINE COMPANY onozdogan@adu.edu.tr

26. SKY AIRLINES PROFILE • Parent Company : KAYI GROUP(1988) • Origin: Turkey • Base: Antalya onozdogan@adu.edu.tr

27. FLEET onozdogan@adu.edu.tr

28. Partner Tour Operators onozdogan@adu.edu.tr

29. PRICES onozdogan@adu.edu.tr

30. Lease Your Aircraft • Wet lease ??? • Dry lease ??? • ACMI Lease • 2500 usd per block hour onozdogan@adu.edu.tr

31. Wet lease ??? Wet Lease: leasing arrangement whereby one airline (lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline (lessee), which pays by hours operated. The lessee provides fuel and covers airport fees, and any other duties, taxes, etc. The flight uses the flight number of the lessee. • Egyptair Airsinai onozdogan@adu.edu.tr

32. Dry Lease??? Dry Lease:leasing arrangement whereby an aircraft financing companies (lessor), provides an aircraft without insurance, crew, ground staff, supporting equipment, maintenance, etc. Dry lease is typically utilized by leasing companies and banks, requiring the lessee to put the aircraft on its own Air Operator Certificate and provide aircraft registration. onozdogan@adu.edu.tr

33. HINTS FOR YOUR ALC!!! • Feasibility analysis (Resources, Market, Cultural etc.) • Attractive name… • Develop your OWN product… • Diverse from others… onozdogan@adu.edu.tr

34. THANK YOU…. onozdogan@adu.edu.tr