An airline provides air transport services for passengers or goods, usually with a recognised certificate or operating licence. Airlines or leasing of aircraft with their own, and for the provision of these services and can form partnerships or alliances with other airlines for mutual benefit. Airlines vary from those with a single cargo plane carrying mail or through full service international airlines that operate many hundreds of planes. Airline services can be classified as being intercontinental, or national intracontinental and can be managed as services or charter. Tony Jannus led the United States' first commercial flight scheduled for 1 January 1914 through the streets of St. Petersburg-which, through time and mergers, evolve into Delta Air Lines, Braniff Airways, American Airlines, United Airlines (originally a Division of Boeing), Trans World Airlines, Northwest Airlines, Air Lines and Eastern Europe, to name a few. At the same time, Juan Trippe began a crusade to create a network of air that would link America to the world, and has achieved this objective with its airline, Pan American World Airways, with a fleet of flying boats that linked Los Angeles to Shanghai and Boston in London. Pan Am was the only airline of the United States to go international before 1940. KLM, the oldest carrier still operating under its original name, was founded in 1919. The first flight (managed on behalf of KLM by Aircraft Transport and Travel) English two passengers at Schiphol, Amsterdam, from London in 1920. Like other major European airlines time (see France and the United Kingdom below), KLM early growth depended heavily on the service needs of links with distant colonial possessions (Dutch East India). It is only after the loss of Empire Dutch KLM, which was based at a small country with some potential passengers, depending heavily on the transfer of traffic, and was one of the first to introduce the hub-easy system to facilitate connections. The France began the e-mail service of air in Morocco in 1919, which was purchased in 1927, renamed Aéropostale, and injected with capital to become a major international carrier. In 1933, Aéropostale failed, it was nationalized and merged with several other airlines in what became Air France. In Finland, paper establishing Aero S / Y (now Finnair, one of the oldest still-airlines operating in the world) was signed in the city of Helsinki on 12 September 1923. Junkers 13 D F-335 became the first aircraft of the company, when he received the delivery of Aero is March 14, 1924. The first flight was between Helsinki and Tallinn, the capital of Estonia, which took place on 20 March 1924, one week later. Lufthansa in Germany began in 1926. Lufthansa, unlike most other airlines at the moment, has become one of the main investors in airlines outside of Europe, which provides capital and Varig Avianca. German airliners built by Junkers Dornier and Fokker were the most advanced in the world at that time. The peak air traffic German came in the mid 1930, when the Nazi propaganda ministers approved the launch of commercial service zeppelin: the great airships were a symbol of industrial might, but the fact that they used hydrogen gas flammable raised safety concerns that culminated with the Hindenburg disaster of 1937. The reason, instead of using hydrogen non-flammable helium gas in the United States was a military embargo on helium. The British company Aircraft Transport and Travel started to London to Paris, the 25th August 1919, this was the first regular flight to the international world. The United Kingdom is the flag carrier during this period was Imperial Airways, which became BOAC (British Overseas Airlines Co.) in 1939. Imperial Airways used huge Handley-Page biplanes for routes between London, the Middle East and India: Images of Imperial aircraft in the middle of the Rub'al Dalip Singh, to be maintained by Bedouins, are among the most famous images of the bloom of the British Empire. The first country in Asia to embrace air travel has been Philippines. Philippine Airlines was founded on 26 February 1941, making it the oldest Asia carrier still operating under its current name. The airline was launched by a group of entrepreneurs led by Andres Soriano, hailed as one of the Philippines' leading industrial at the moment. The airline's first flight was made on March 15, 1941 with a single Beech Model 18 NPC-54 aircraft, which began its daily service between Manila (Nielson Field) in Baguio, after expanding with larger aircraft, as The DC - 3 and Vickers Viscount. In particular Philippine Airlines Japan Airlines leased their first aircraft, a DC-3 named "Kinsei. On 31 July 1946, a chartered Philippine Airlines DC-4 ferried 40 American soldiers in Oakland, California by Nielson Airport in Makati City, with stops in Guam, Wake Island, Johnston Atoll in Honolulu, Hawaii, making PAL the first airline Asian to cross the Pacific Ocean. A regular service between Manila and San Francisco, was launched in December. It was during this year that the airline has been designated as the flag carrier Philippines. Another airline to begin operations was anticipated Air India, which had its beginning as Tata Airlines in 1932, a division of Tata Sons Ltd (now Tata Group) from India JRD Tata industrial leaders. On October 15, 1932, JRD Tata himself flew a single engine De Havilland Puss Moth carrying air mail (mail Imperial Airways), from Karachi to Bombay via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Royal Air Force pilot Vincent Nevill. After the end of World War II, regular commercial service was restored in India and Tata Airlines has become a public limited company on July 29, 1946 under the name of Air India. After the independence of India, 49% of the airline was acquired by the Indian government. In return, the airline was granted the status to operate international services from India, as the flag carrier designated by the name of Air India International. Soon even neighbouring countries embraced aviation, in particular Cathay Pacific, founded in 1946, Malaysian Airlines and Singapore Airlines in 1947 (as Malay Airways), in 1949 Garuda Indonesia, Japan Airlines, founded in 1951. With the outbreak of the Second World War, the airline's presence in Asia of a relative came to an end, with many new flag air carriers to give their military aid and for other uses. World War II, like World War I, has brought new life to the airline industry. Many airlines in countries were allies wire leasing contracts for the military, and foresaw a future explosive demand for civil air transport for passengers and freight. They were interested in investing in emerging-bearer of air travel as the Boeing Stratocruiser, Lockheed Constellation, and Douglas DC-6. Most of these new aircraft are based American bombers like the B-29, who had led the search for new technologies such as pressurization. Most deals can be added greater efficiency and greater speed payload. The next big boost for airlines would come in the years 1970, when the Boeing 747, McDonnell Douglas DC-10 and Lockheed L-1011 inaugurated widebody ( "jumbo jet"), service, which is still the norm in international travel . The Tupolev Tu-144 and its Western counterpart, Concorde made supersonic travel a reality. In 1972, he began the production of Airbus in Europe most successful commercial airliners line today. The added efficiency for these aircraft were often not in speed, but in passenger capacity, payload and range. As the economic cycle back to normal, major airlines dominated their paths through aggressive pricing and additional supply capacity, often swamping new start-ups. Only America West Airlines (which has since merged with US Airways) has been a significant survivor of this new competitor was, as dozens, hundreds, went under. In many ways, the biggest winner was in a liberalized air transport. Indeed, the United States witnessed an explosive growth in demand for air transport, as many millions of people who had never or rarely flew first became regular flyers, the membership loyalty frequent flyer programmes and receiving free flights and other exploit their flying. New services and higher frequencies business flyers meant that could fly to another city, do business, and return the same day, almost anywhere in the country. Air Travel's advantages intercity bus lines put under pressure, and most have less away. Thus the last 50 years of aviation have varied from reasonably profitable, a devastatingly depressed. As the first major market to deregulate the industry in 1978, airlines in the United States have experienced more turbulence almost any other country or region. Today, almost every single legacy carrier with the exception of American Airlines have operated under Chapter 11 bankruptcy provisions or have left the business. Many countries have national airlines that the government owns and manages. Entirely private airlines are subject to a big government to regulate economic, political, and concerns for safety. For example, the government often intervenes to stop the actions of the airlines working to protect the free movement of people, communications, and goods between different regions without compromising safety. The United States, Australia, and to a lesser extent, Brazil, Mexico, United Kingdom and Japan have "liberalized" their airlines. In the past, these governments dictated airfares, transport networks, and other operational requirements for each airline. Since deregulation, airlines have been largely free to negotiate their own operating modes with different airports, routes into and out easily, and the collection of air fares and flights of supply according to market demand. The new entry barriers for airlines are lowest in a liberalised market, and so the United States has seen hundreds of airlines start up (sometimes only for a short period of operation). This has produced far more competition than before deregulation, in most markets, and the average rates tend to drop the 20% or more. Adding competition, together with freedom of prices, it means that new entrants often take market share with very low rates, to a limited degree, full service airlines have to match. This is an important constraint on profitability for established carriers, which tend to have a higher cost base. Groups such as the International Civil Aviation Organization all over the world to establish standards for safety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries, designating specific carriers to operate on specific routes. The model for such an agreement was the Bermuda agreement between the United States and the United Kingdom after the Second World War, which has designated airports to be used for transatlantic flights and gave each government the power to appoint carriers to operate routes. Bilateral agreements are based on "freedom of the sky", a group of generalized traffic rights ranging from freedom of overflight of a country the freedom to provide domestic flights within a country (very rarely granted the right known as cabotage). Most of the agreements allow airlines to fly from their country of origin designated airports in other countries: Some also extend the freedom to continue to provide the service in a third country or destination in another country, while carrying passengers from overseas. In 1990, "open skies" agreements became more common. These agreements take many of these regulatory powers from state governments and open international routes further competition. Open skies agreements have encountered some criticism, in particular within the European Union, of which the airlines would be at a disadvantage compared with the United States' because of cabotage restrictions. One theory is that the positive externalities, such as higher growth worldwide due to mobility, outweigh the microeconomic and justify the continuing loss of government intervention. A historically high level of government intervention in the aviation sector can be seen as part of a broader political consensus on strategic forms of transportation, such as highways and railways, both to receive public funding that, in most countries of the world. Profitability is likely to improve in the future, such as privatization continues and more competitive with low cost carriers proliferate. Because of complications and flight planning and maintaining profitability, airlines have many loopholes that can be used by knowledgeable traveler. Many of these secret flights are becoming increasingly known to the general public, so the airlines are forced to make constant adjustments. Most airlines use differential pricing, a form of price discrimination, in order to sell air transport services at prices variables simultaneously at different segments. Factors affecting the price includes the remaining days until departure, the book load factor, the forecast of total demand from the price, competitively priced into force, and variations of weekday departure and by time of day . Carriers often this dividend every cabin of the aircraft (first, business and economy), in a number of classes of travel for prices. A complicating factor, which is origin-destination ( "O & D control). Someone purchasing a ticket from Melbourne to Sydney (as an example) for $ 200 (AUD) is in competition with someone else who wants to fly to Los Angeles Melbourne through Sydney on the same flight, and that it is willing to pay $ 1400 (AUD ). The airline would prefer the '$ 1400 200-1300? Airlines must make hundreds of thousands of such decisions daily price. The advent of advanced computer systems reserves at the end of 1970, particularly Sabre, allowed the airlines to easily make cost-benefit analyses on different tariff structures, bringing to almost perfect price discrimination in some cases (that is, filling each seat on an aircraft at the highest price that can be loaded without driving consumers elsewhere). Discrimination price is considered an anti-business practice, and is defined as price discrimination definition: different prices for identical products. Technically this is the total specific actions of other airlines, without violating the law. The archaic airlines with hub-systems and tariff structures unprofitable, have legally defined this term as an attack on business, although this is not act outside the law. The low cost carriers (LCC) are new on the scene, and had no contacts or resources to prohibit this purely legal definition of a commercial practice (in which they have chosen to participate) as a practical monopoly to those with such archaic price structure. The national carriers have yet to define how a intenionally discrimination is harmful and injurious volitionally act on their business from a competitor. Read to the corporate security can be applied, or those who have the greatest impact can suggest without proof that they are treated unfairly, and can then use their legal status, as agreed to limit the LCC's manuevaribility into the market. An example is the fact that the demand imposed by the United States government for specific airports, which receive national or exemption for a subsidy), the seniority / grandfathering treatment, or b) the legal status of financially on the eve (ie pre-bankruptcy). The nature of intense airfare prices led to the term "rate war" to describe efforts by airlines less than other airlines on competitive routes. Through the computer, the new airfares can be published in a rapid and efficient for the airlines' sales channels. To do so, airlines use the Airline Tariff Publishing Company (ATPCO), which later tariffs to distribute more than 500 airlines Computer Reservation Systems throughout the world. Full-service airlines have a high level of fixed costs and operational, in order to establish and maintain air transport services: the work, fuel, aircraft, engines and spare parts, IT services and networks, airport equipment , airport handling services, sales distribution, catering, training, aviation insurance and other costs. Thus, all but a small percentage of ticket sales income is transferred from a wide range of suppliers external or internal cost centers. Moreover, the industry is structured so that airlines often act as tax collectors. Airline fuel is untaxed, however, because of a series of treaties between countries. The ticket price includes a number of fees, taxes and surcharges that have little or no control, and these are passed through various suppliers. The airlines are also responsible for enforcing government regulations. If airlines carry passengers without proper documentation on an international flight, are responsible for their return to their country of origin. In contrast, Southwest Airlines has been the most profitable airlines by 1970. Indeed, some sources have calculated Southwest to be the best performing stock over the period, outselling Microsoft and many other high-performance companies. The main reasons for this are their product consistency and cost control. The widespread entry of a new breed of low-cost airlines that start at the turn of the century has accelerated the demand that full service carriers control costs. Many of these companies to emulate low-cost Southwest Airlines in various aspects, and how Southwest, which are able to eke a substantial profit in all phases of the economic cycle. As a result, one of the airlines shakeout is happening in the United States and elsewhere. United Airlines, US Airways (twice), Delta Air Lines and Northwest Airlines have declared Chapter 11 bankruptcy, and American has just avoided it. Alitalia, Scandinavian Airlines System, Sabena, Swissair, Japan Air System, Viasa, Air Canada, Ansett Australia, and others have flirted with or declared bankruptcy since 1995, as low-cost competitors to enter their markets, but also at home. Some argue that it would be much better for the industry as a whole, where a wave of closures were actually reduce the number of "" compete with airlines airlines healthy despite being artificially protected from creditors by bankruptcy law. On the other hand, some have pointed out that the reduction in capacity would be short-lived, given that there is relatively large amount of new aircraft that would get rid of failures and replace the market rise as fleets Survivors or base Air low cost for new start-ups. Airline funding is quite complicated, since airlines are highly leveraged transactions. Not only must purchase (or lease) new airliner engines and bodies regularly, they must take more long-term fleet decisions with the aim of satisfying the demands of their markets, while the production of a fleet that is relatively cheap to operate and maintain. Compare Southwest Airlines and their dependence on a single type of aircraft (the Boeing 737 and derivatives) with the now defunct Eastern Air Lines, which operates 17 different types of aircraft, each with different drivers, engines, maintenance, and needs assistance. A second problem is that financial hedging purchases of oil and fuel, which are usually second only to the work and its cost to society. However, the current high price of fuel has become the biggest cost of an airline. While hedging instruments can be expensive, which can easily pay for themselves many times during periods of increased costs of fuel, for example, in the period 2000-2005. In view of the congestion evident in many international airports, ownership of some slots at airports (the right to takeoff an aircraft or land at a particular time of day or night) has become a significant assets for many airlines. Clearly takeoff slots at popular times of day can be critical to attract business travellers more profitable to a particular airline flight and the creation of a competitive advantage over a competing airlines. If a particular city has two or more airports, market forces tend to attract the less profitable routes, or those where competition is weaker, less congested airport, where slots are likely to be more available, and therefore cheaper. Other factors, such as surface transport facilities and connections to involve the use of several airports and some long-haul flights may have to operate from the one with the longest runway. Code sharing is the most common type of airline partnership, this being an airline to sell tickets for flights of the airline another under its own airline code. A prime example of this was Japan Airlines' code-sharing partnership with Aeroflot in 1960 on flights from Tokyo to Moscow: Aeroflot managed using Aeroflot flights, 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, in parts of the world where they can not afford to establish the foundations for purchase or aircraft. Another example was the Austrian-Sabena partnership on the Vienna-Brussels-New York JFK route during the late 60's, using a Boeing 707 with Sabena colors Austrians. Since reservation requests airlines are often made by city pair (such as "show me flights from Chicago to Düsseldorf"), an airline that is able to code share with another company for a variety paths may be able to be listed as an offering One Düsseldorf-Chicago flight. Passengers are advised, however, which manages the airline 1 flight from Chicago to Amsterdam, and 2 Planes continued work of flight (on another plane, sometimes from another terminal) in Düsseldorf. Thus, the primary rationale for the sharing of the code is to expand its service offerings in terms of city pair, in order to increase sales. Often companies combine IT operations, purchase fuel, aircraft or purchase in bulk to achieve higher power. However, the alliances have been most successful in the purchase of supplies and services invisible, as a fuel. Airlines usually prefer to buy objects visible to their passengers to differentiate their local competitors. If an airline main domestic competitor flies Boeing airliners, the airline may therefore prefer to use Airbus aircraft regardless of what the rest of the alliance chooses. Each operator of a charter flight or scheduled airline uses a call when communicating with airports centres or air traffic control. Most of these are signs of call-derived from the airline trade name, but for reasons of history, marketing, or the need to reduce ambiguity in spoken English (so that pilots are not mistakenly navigation decisions based on given instructions to another aircraft), some airlines use Air Force call signs less obviously connected with their trade name. For example, British Airways uses a call-sign Speedbird, named after the logo of its predecessor, while America West BOAC used Cactus society that reflect home state of Arizona and differs from many other airlines that use the ' America and the West in their call signs. The industry is cyclical. Four or five years of poor performance before five or six years to improve performance. , But in good years profitability is generally low in the range of 2-3% net profit after interest and tax. In times of profit, companies leasing of new generations of aircraft and upgrade services in response to increased 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 worsened.
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