Himoyaga ruxsat beriladi Fakultet dekani I f. n A. T. Jo’raev

Air transportation is a major industry in its own right and it also provides important inputs into wider economic, political, and social processes. The demand for its services, as with most transport, is a derived one that is driven by the needs and desires to attain some other, final objective. Air transport can facilitate, for example, in the economic development of a region or of a particular industry such as tourism, but there has to be a latent demand for the goods and services offered by a region or by an industry. Lack of air transport, as with any other input into the economic system, can stymie efficient growth, but equally inappropriateness or excesses in supply are wasteful.

This assigment presents the main role of airline industry in the international tourism market and show the basic attributes of developing tourism industry over the world. The main aim of accomplishing this work is to research the given theme and make a wide point of view in this industry and by gathering all learned informations to determine the optimal options of this industry.

The assigment has been divided into two chapters and is

structured in a way that is simple and easy to read. Each chapter outlines what the issues are, actions you can take to operate more responsibly, and some industry examples of good practice. Sources of further information and a self-evaluation form are also included.

Part I represents an overview and theory of the most important trends and features of airline industry in international tourism market and the basic functions and operation systems of transnational aviation companies.

Part II gives information about an overview and examples of the main issues as a practice. In this part we learn the British Airways company and it’s relationships with tourism markets and it’s performance in different segments of the tourism sector, as well as in other sectors closely linked to travel and tourism.

The tourism sector is probably the only service sector that provides concrete and quantified trading opportunities for all nations, regardless of their level of development. However, it is also a sector where there is clearly an uneven distribution of benefits, which is threatening the social, economic and environmental sustainability of tourism in some developing countries. For many developing countries tourism is one of fundamental pillars of their development process because it is one of the dominant activities in the economy, while for others, particularly by islands and some small economies, it is the only source of foreign currency and employment, and therefore constitutes the platform for their economic development.

The air transport industry is now large – it accounts for about 1% of the GDP of both the EU and the US – and is vital in many industries such as tourism, exotics, and hi-technology5. It is an important transporter of high-value, low-bulk cargoes. International aviation moves about 40% of world trade by value, although far less in physical terms. The market is served by a diversity of carriers, some specializing in long-haul international routes and others in short-haul markets. Table 1 offers some indication of the scale of larger airlines involved. To handle the interface between land and air transport the world’s major airports have grown to handle millions of international passengers and tonnes of cargo7 each year, and many have been significant catalyst facilitating, in particular, the growth of modern hi-technology industries and tourism about them. In 2008, passenger air services globally link around 15,500 airports; with the fastest growth in air services over the past two decades being in the Europe-Asian Pacific markets.

Air access in international tourism depends on the availability and conditions of air transport connecting tourist-generating countries and destination countries (i.e. prices, frequencies, travel time, etc.). Air transport is a major factor underpinning international tourism in the vast majority of developing countries, but its importance for tourism varies considerably from one region to another. It is the means of transport used by the majority of tourists arriving in developing countries. Air transport developed as a result of the increase in demand for tourism-related travel, becoming in turn the driving force behind the development of the tourism industry. In 1998, passengers were responsible for about 75 per cent of air traffic volume and for of the total operating revenues of airlines. It is estimated that up to 40 per cent of air passenger travel is for business purposes (as opposed to leisure or personal travel) and that business travellers account for up to half of airlines’ income. Like tourism, the world air transport industry has expanded at twice the rate of world output growth, and is expected to continue to do so in the next twenty years.Airlines need to use effective planning processes to optimise the performance of their network.

This involves maximisation of the equipment and human resources utilisation against demand pressures, government regulations, and operational constraints, such as air traffic control rules. Interviewees suggested that planning decisions range from long-term strategic issues, such as routes selection and competition monitoring, to operational considerations, such as schedules for equipment and staff rotas. Scheduling implies deciding the number of connections between airports as well as timing and choice of aircraft equipment. Planning and operations departments use Integrated Flight Schedule Management Systems to support airlines in planning their schedules. Such systems need to provide seamless integration with other systems, including Operations Control, Reservations and Revenue Management, Maintenance Control, and Crew Management. They examine historic traffic data and previous load factors as well as forecast demand figures. The proliferation of hub and spoke systems has forced planning departments to manage their network as a whole by scheduling departure waves and coordinating flights. Aiming to maximise load factors and yield management for the entire network, airlines use Flight Schedule Management Systems to predict traffic and to simulate operational discrepancies caused by delays, weather conditions, and other unpredictable circumstances that disrupt schedules.

Now we work with British Airways Company which owes great contribution in travel marketplace. The privatization section is, as the name refers, about the privatization of British Airways. I tried to answer “How, When, and the consequences” of this privatization. The performance evaluation part of this section can be divided into two categories. Analyzing by the help of accounting data and the industry comparison. I do not want to analyze the effects of privatization only by accounting data, which can be easily manipulated by the management. And also, after privatization, the objective of British Airways changed to “profit maximization”. Thus, the accounting data may not be helpful by alone. To overcome this issue, I also find analysis regarding the industry of British Airways. The reaction of competitors, which can show the expectation in the market after privatization and also the new incentives introduced to the British Airways, may provide a better look to the case from a different perspective. British Airways (BA) is the UK’s largest international scheduled airline. It operates international and domestic scheduled and charter air services for carriage of passengers, freight and mail. It has over 550 destinations globally which makes it the leader in the industry.BA has it’s main hubs at London Heathrow Airport and London Gatwick Airport. It’s headquarters is located at Waterside. British Airways is said to be the largest airline in the UK based on fleet size, international flights and international destinations.

British Airways serves nearly 150 destinations including the following:

British Airways has taken a major step towards simplifying its business and improving customer service with the introduction of the Amadeus sales system across the airline. This means all British Airways airport and city sales offices will now make their travel bookings on the Amadeus System. It will also facilitate seamless interaction between British Airways and its fellow “oneworld™” airline alliance members, who are Amadeus system users.