The air transportation industry includes all civil flying performed by certificated air
carriers and general aviation. Because this industry is the major focus of this text, it is
important to define exactly what we mean by the terms certificated air carriers and general
aviation.
The Civil Aeronautics Act of 1938 defined and established various classifications within
aviation:1
“Air carrier” means any citizen2 of the United States who undertakes-… to engage in air transportation.
3
“Air transportation” means interstate-… transportation.4
“Interstate air transportation”-… mean[s] the carriage by aircra of persons or property as
a common carrier for compensation or hire. 5 [Emphasis added.] No air carrier shall engage in any
air transportation unless there is in force a certificate issued by the Civil Aeronautics Board
authorizing such air carrier to engage in such transportations.6
Reading these sections of the act together, one sees the airline business as defined by
Congress. The key words are italicized: common carrier and compensation or hire. Therefore,
the appropriate term for airlines is not commercial airlines, but certificated (common) air
carriers.
Having legally defined air carrier aviation, the act went on to define other types of
aviation in a second category in the following way:
“Air commerce” means interstate … commerce or any operation or navigation of aircra within
the limits of any Federal airway or any operation or navigation of aircra which directly affects,
or which may endanger safety in interstate air commerce.7
“Interstate air commerce” … mean[s] the carriage by aircra of a person or property for compensation
or hire-… or the operation or navigation of aircra in the conduct or furtherance of a
business or vocation, in commerce-… between any State and any other State… .8
The first paragraph, which is all-inclusive and embraces all non-air carrier aviation, defines
general aviation as we know it: noncommercial or private use. That paragraph is modified
by the second one quoted, which goes on to define two subparts of general aviation: (1)
business aviation, where the aircra is used “in the conduct or furtherance of a business
or vocation,” and (2) commercial aviation, where people are carried for compensation or
hire, but not as a common carrier—note that those words are omied. Today, general aviation is commonly described as “all civil aviation except that which is carried out
by the certificated airlines.”
Over the past 60 years, the air transportation industry has become an increasingly
important part of the U.S. economy. Aviation is the nation’s dominant intercity mode
of transportation for those passengers and goods that must be transported quickly and
efficiently. It has become so universal that no one questions aviation’s importance as an
essential form of transport.
Aviation employs many thousands of people, and thousands more work in aviation’s
support industries, such as hotels, restaurants, rental cars, real estate, construction,
and manufacturing. Individuals in these industries benefit economically from aviation
regardless of whether they actually fly.
Aviation’s final “products” are passengers and cargo safely and efficiently delivered
to their destination. In 2004, U.S. airlines carried 698 million passengers and registered
28 billion ton-miles of cargo on approximately 9 million scheduled departures. U.S.
airlines also carried more than 11 million passengers and over 6 billion ton-miles of
cargo on approximately 400,000 nonscheduled departures. Although scheduled airlines
provide service to about 800 communities, over 5,000 communities of all sizes can access
the air transportation system via publicly owned general aviation airports, including
nonscheduled, on-demand, and charter flights. The industry estimates that more than
160 million passengers are carried annually aboard general aviation aircra and trends
indicate this statistic is to increase over the next decade.
Most people are familiar with the aviation elements that they see and use—airports,
airlines, and general aviation aircra. They also might be familiar with some of the
support elements—baggage services, travel agents, and others. However, the aviation
industry is much more than that; it includes an intricate set of suppliers of a wide variety
of goods and services, all of which benefit economically from aviation. With economic
deregulation of airlines in the late 1970s, air cargo networks were able to facilitate just-intime
shipping, providing expanded services at lower costs. Optimization of just-in-time
shipping allows short production and development cycle times and eliminates excessive
inventory in the logistics chain, regardless of facility location. Without the availability of
ubiquitous, reliable, efficient air express service, U.S. businesses would be unable to realize
the competitive economies of just-in-time production. Air transportation offers many cost
advantages—lower lead times, quicker customer response times, improved flexibility, and
reduced inventory. Many high-tech, high-value industries have embraced air transport for
its time and cost advantages in manufacturing and distribution and because it improves
delivery reliability by providing time-definite guarantees.
One-stop shopping has become extremely important to businesses in their selection
of logistics service providers and air cargo carriers. The ability to use a carrier that
will provide door-to-door service with single-vendor control makes the entire logistics
chain much less complicated than the traditional method of using several providers
with different delivery functions. The major integrated carriers provide seamless
trucking, warehousing, and distribution service functions in addition to air cargo. As a consequence, shippers are increasingly substituting blended air and surface transportation
services provided by (or through) a single carrier.
In July 2002, DRI-WEFA Incorporated in collaboration with The Campbell-Hill Aviation
Group completed a study titled The National Economic Impact of Civil Aviation. As of early
2006, this is the most recent study. Using 2000 data, the study examined the impact of civil
aviation, which included:
1. Scheduled and unscheduled commercial passenger and cargo operations (including
cargo-only transportation)
2. General aviation (including business aviation and air taxi operations)
3. Their related manufacturers, servicing, and support (including pilot and maintenance
technician training)
4. Their supply chains (indirect impacts)
5. The effects of income generated (induced impacts) directly and indirectly by civil
aviation
6. The direct, indirect, and induced impacts of related industries, such as travel and
tourism, for which air transportation provides an enabling function.
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Maani Sharma [ MBA Aviation ]
Manager Aviation NEWS Project
www.All-Aviation-NEWS.in
www.AeroSoftCorp.com
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