Buy Airplane Tickets
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An airline ticket is a document, issued by an airline or a travel agency, to confirm that an individual has purchased a seat on a flight on an aircraft. This document is then used to obtain a boarding pass, at the airport. Then with the boarding pass and the attached ticket, the passenger is allowed to board the aircraft.
There are two sorts of airline tickets - the older style with coupons now referred to as a paper ticket, and the now more common electronic ticket usually referred to as an e-ticket.
IATA has announced, that as of June 1, 2008, IATA-member airlines will no longer issue any paper tickets.[2]
A ticket is generally only good on the airline for which it was purchased. However, an airline can endorse the ticket, so that it may be accepted by other airlines, sometimes on standby basis or with a confirmed seat. Usually the ticket is for a specific flight. It is also possible to purchase an 'open' ticket, which allows travel on any flight between the destinations listed on the ticket. The cost for doing this is greater than a ticket for a specific flight. Some tickets are refundable. However, the lower cost tickets are usually not refundable and may carry many additional restrictions.
The carrier is represented by a standardized 2-letter code. In the example above, Thai Airways is TG. The departure and destination cities are represented by International Air Transport Association airport codes. In the example above, Munich is MUC and Bangkok is BKK. The International Air Transport Association is the standard setting organization.
Only one person can use a ticket. If multiple people are traveling together, the tickets are linked together by the same record locator or reservation number, which are assigned, if the tickets were purchased at the same time. If not, most airlines can cross-reference the tickets together in their reservation systems. This allows all members in a party to be processed in a group, allowing seat assignments to be together (if available at the time of the assignment)
Black market[edit source | editbeta]
When paper tickets were still frequently used, a practice existed by travellers to get rid of their tickets (which are person-specific), when they decided to alter the course of their trips. This practice consisted of selling the ticket to other travellers (often at discount prices), after which the seller accompanied the buyer at the time of departure to the airport. Here, the original owner checked in under his name and provided the airline with the buyer's baggage. After this, the buyer boarded the airplane at the moment of departure.[3] However, since most airlines check identification on boarding, this procedure is rarely functional.
As governments met to set the standards and scope for an emergent civil air industry toward the end of the war, the U.S. took a position of maximum operating freedom; U.S. airline companies were not as hard-hit as European and the few Asian ones had been. This preference for "open skies" operating regimes continues, with limitations, to this day.[citation needed]
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, Lockheed Constellation, and Douglas DC-6. 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. Most offered increased efficiency from both added speed and greater payload.
In the 1950s, the De Havilland Comet, Boeing 707, Douglas DC-8, 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 in the fleets of state-owned carriers such as Czechoslovak ČSA, Soviet Aeroflot and East-German Interflug. The Vickers Viscount and Lockheed L-188 Electra inaugurated turboprop transport.
The next big boost for the airlines would come in the 1970s, when the Boeing 747, McDonnell Douglas DC-10, and Lockheed L-1011 inaugurated widebody ("jumbo jet") service, which is still the standard in international travel. The Tupolev Tu-144 and its Western counterpart, Concorde, made supersonic travel a reality. Concorde first flew in 1969 and operated through 2003. In 1972, Airbus 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.
Travel Concepts, Inc., founded by William J. Tobin in 1971, developed the first travel kits to be distributed in First Class and Business Class cabins, and also provided in-flight educational games for children. The travel kits and the educational game programs have been utilized by most major airlines for 25 years.[13][14][15]
US Airline Deregulation[edit source | editbeta]
Pan Am Boeing 747 Clipper Neptune's Car in 1985. The deregulation of the American airline industry increased the financial troubles of the iconic airline which ultimately filed for bankruptcy in December 1991.[16]
1978's 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 pricing.[17] In this strategy an already established and dominate 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.[18] Since deregulation in 1978 the average domestic ticket price has dropped by 40%.[19] 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.[20] America West Airlines (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 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, for almost any point in the country. Air travel's advantages put intercity bus lines under pressure, and most have withered away.
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 emerged, offering a no-frills product at a lower price. Southwest Airlines, JetBlue, AirTran Airways, Skybus Airlines 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 manangement companies, and thus becoming nothing more than operating units and subsidiaries with limited financially decisive control. Among some of these holding companies and parent companies that are the relatively well known, are the UAL Corporation, along with the AMR Corporation, among a long list of airline holding companies sometime recognized world wide. Less recognized are the private equity firms which often seize managerial, financial, and board of directors 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 survived bankruptcy-free. Amongst the outspoken critics of deregulation, former CEO of American Airlines, Robert Crandall has publicly stated:
"Chapter 11 bankruptcy protection filing shows airline industry deregulation was a mistake.[21]"
The Airline Industry Bailout[edit source | editbeta]
Congress passed the 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 11th terrorist attacks. 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.[22] Between 2000 and 2005 US airlines lost $30 billion with wage cuts of over $15 billion and 100,000 employees laid off.[23]
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 Department of Transportation and up to $10 billion in loan guarantees subject to review by a newly created Air Transportation Stabilization Board (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[24] and the DOT Inspector General.[25][26]
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.)[27] In addition, the ATSB approved loan guarantees to six airlines totaling approximately $1.6 billion. Data from the US Treasury Department 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.[28]
Asian airline industry[edit source | editbeta]
A Biman Bangladesh Airlines Boeing 777-300ER parked at Shahjalal International Airport, Dhaka. Biman is the flag carrier of Bangladesh.
Although Philippine Airlines (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 December 3, 1930, making it Asia's oldest scheduled carrier still in operation.[29] Commercial air service commenced three weeks later from Manila to Baguio, 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.[30] Bachrach's majority share in PATCO was bought by beer magnate Andres R. Soriano in 1939 upon the advice of General Douglas McArthur 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 March 15, 1941 with a single Beech Model 18 NPC-54 aircraft, which started its daily services between Manila (from Nielson Field) and Baguio, later to expand with larger aircraft such as the DC-3 and Vickers Viscount.
India was also one of the first countries to embrace civil aviation.[31] One of the first West Asian airline companies was Air India, which had its beginning as Tata Airlines in 1932, a division of Tata Sons Ltd. (now Tata Group). The airline was founded by India's leading industrialist, JRD Tata. On October 15, 1932, J. R. D. Tata himself flew a single engined De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi to Bombay via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Royal Air Force pilot Nevill Vintcent. Tata Airlines was also one of the world's first major airlines which began its operations without any support from the Government.[32]
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 July 29, 1946 under the name Air India. After the independence of India, 49% of the airline was acquired by the Government of India. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International.
On July 31, 1946, a chartered Philippine Airlines (PAL) DC-4 ferried 40 American servicemen to Oakland, California from Nielson Airport in Makati City with stops in Guam, Wake Island, Johnston Atoll and Honolulu, Hawaii, making PAL the first Asian airline to cross the Pacific Ocean. A regular service between Manila and San Francisco 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, newly born Asian countries started to embrace air transport. Among the first Asian carriers during the era were Cathay Pacific of Hong Kong (founded in September 1946 ), Orient Airways (later Pakistan International Airlines; founded in October 1946), Malayan Airways Limited in 1947 (later Singapore and Malaysia Airlines), El Al in Israel in 1948, Garuda Indonesia in 1948, Japan Airlines in 1951, Thai Airways International in 1960, and Korean National Airlines in 1947.
Latin American airline industry[edit source | editbeta]
TAM Airlines is the largest airline in Latin America in terms of number of annual passengers flown.[33]
Among the first countries to have regular airlines in Latin America were Bolivia with Lloyd Aéreo Boliviano, Cuba with Cubana de Aviación, Colombia with Avianca, Chile with LAN Chile (today LAN Airlines), Brazil with Varig, Dominican Republic with Dominicana de Aviación, Mexico with Mexicana de Aviación, Venezuela with Aeropostal, and TACA based in El Salvador and representing several airlines of Central America (Costa Rica, Guatemala, Honduras and Nicaragua). All the previous airlines started regular operations well before World War II.
The air travel market has evolved rapidly over recent years in Latin America. Some industry estimates indicate that over 2,000 new aircraft will begin service over the next five years in this region.[citation needed]
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 three airlines: LAN, OceanAir and TAM Airlines have international subsidiaries and cover a large number of destinations within the Americas as well as major hubs in other continents. LAN with Chile as the central operation along with Peru, Ecuador, Colombia and Argentina and some operations in the Dominican Republic. The recently formed AviancaTACA group has control of Avianca Brazil, VIP Ecuador and a strategic alliance with AeroGal. And TAM with its Mercosur base in Asuncion, Paraguay. As of 2010, talks of uniting LAN and TAM have strongly developed to create a joint airline named LATAM.
Regulatory considerations[edit source | editbeta]
National[edit source | editbeta]
Garuda Indonesia Boeing 737 800 parked at Perth International Airport. This Indonesian Flag carrier is wholly owned by the Indonesian Government
Many countries have national airlines that the government owns and operates. Fully private airlines are subject to a great deal of 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.
Cyprus Airways national airline of Cyprus
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, and average fares tend to drop 20% or more.[citation needed] 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.
International[edit source | editbeta]
Singapore Airlines Airbus A380 lands at Changi Airport. Singapore Airlines was the first international airline to operate the A380, the world's largest passenger airliner.[34]
Groups such as the International Civil Aviation Organization 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 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", 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). 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" 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 restrictions.
Economic considerations[edit source | editbeta]
Juan Trippe, the founder of Pan American World Airways, surveying his globe. The collapse of Pan Am, an airline often credited for shaping the international airline industry, in December 1991 highlighted the financial complexities faced by major airline companies.
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, once the costs include subsidies for aircraft development and airport construction.[35][36]
One argument is that positive externalities, 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 highways and railways, both of which receive public funding in most parts of the world. Profitability is likely to improve in the future as privatization continues and more competitive low-cost carriers proliferate.[citation needed]
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.
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