What are some of the advantages of fleet commonality

AVIA 3130 Leadership in the Aviation In dustry

Homework #5

1. Chapter 13 – Answer the following review questions at the end of Chapter 13 in our textbook:

a. Q2, What are some of the advantages of fleet commonality?

b. Q4, Describe what is included in each of the four basic inputs (informational needs) to the fleet-planning process. Marketing strategy was referred to as the “how to” function. What does that mean? And why is this such a key piece of information?
c. and

Q6, Give some examples of items to be considered under the following areas in the aircraft evaluation process: design characteristics, physical performance, maintenance needs, acquisition costs, and operating economics. Give some example of difficulties encountered by airline management in comparing aircraft. What are some of the difficulties in examining a single model, such as the Boeing 747-300? The new generation jetliners were designed with what primary consideration in mind?

2. Chapter 14 – Answer the following review questions at the end of Chapter 14 in our textbook:

a. Q3, Finding the right staff. Airlines have realized that finding the right staff is no longer sufficient. The delivery of high quality service is based on attributes and values of employees. For example, much southwest Airlines’ success is based on a unique corporate culture that promotes positive attributes.

b. Q5, Multitasking and flexibility. The focus of discussion at many airlines is changing from why to how and to in turn of what? Encouragement of productivity growth through multitasking (the application of multiple skills by one person) and more flexible work practices in highly unionized environments will create a challenge of the airline industry.

c. Q6, Control of labor costs. Airline passengers are becoming more knowledgeable and demanding, creating a challenge of how to control labor costs without disrupting customer service. There is a strong argument to place greater emphasis on productivity improvement rather than on salary and benefit cuts.

3. Chapter 15 – Answer the following review questions at the end of Chapter 15 in our textbook:

a. Q4, Why has leasing become such an important source of funding for the airlines? Give four advantage s of leasing. What is its major disadvantage? Distinguish between operating leases and capital leases.

b. Q10, In your opinion, does the industry have the financial capability for fleet replacement and expansion in the early 2000s and beyond?

c. Q11, Why is having too much cash on hand almost as bad as not having enough? Why is the financial community concerned about the cash position of the carriers? How much cash should an airline have on hand? What is meant by cash flow? Give several applications of short-term and long-term cash forcasts.

4. Chapter 16 – Answer the following review questions at the end of Chapter 16 in our textbook:

a. Q1, What were the two principle theories regarding the national sovereignty of airspace? Which theory prevailed?

b. Q6, How many rights of freedom are there? What was the two Freedoms agreement? What is meant by bilateral agreement. Discuss some of the provisions under the Chicago standard form.

c. Q11, What is an open-sky agreement> Cabotage? What was the purpose of the commission to ensure a strong, competitive Airline Industry? In 1995, the commission outlined a “plan of action” regarding future open-aviation agreements. Explain.

Note: Answers should be accurate and descriptive. Answer all the sub parts of each question. Answers should be in paragraph form (thus one word answers will be insufficient). This is an upper division college course and your work should reflect that.