Thursday, March 18, 2010

Airline Structure

One of the characteristic of the products and services that we uses today is... they are produced by organisations or by group of peoples. Gone were the days of craftsmen and tradesmen, where individuals work to produce the goods to be sold directly to the buyers.

Running an airline will require multiple resources and expertise. To make is easier and more effective, these resources and expertise are arranged and organised in a specified way... known as airline structure. So airline structure is the specific ways an individual airline organised itself to produce the required products and earn some money.

Factors Shaping The Structure.
There are basically two broad categories of factors affecting the structure of an airline, the external factors and internal factors.
The external includes: the government bodies, the competitors, and customers
The internal factors would include: the airline vision and mission, staff and business model.

The internal factors.
The management of the airline would decide the business model the airline is going to operate, either a full service carrier or low cost operator. The decision will have to made on how the selected functions of the company will be carried out. For example:
   a. You can have a low cost carrier, operating with a specified type of aircraft and the maintenance of the aircraft is carried out by another organisation. The function of managing and getting the customers are rarely contracted out. This is because the function is the life line of an organisation and formed the core that determine the future success of an organisation.

to be continued...  

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