Karen Taquechel MKTG 450 Assignments module 6 Assignments

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Embry-Riddle Aeronautical University *

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Feb 20, 2024

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1 Delivering Value in the Air Transportation System Karen Ventura – Taquechel MKTG 450 – Module 6.4 Embry-Riddle Aeronautical University September 11, 2023

2 Delivering Value in the Air Transportation System Introduction : The global airline industry operates within a complex and dynamic environment, shaped by various factors that influence delivery channel decisions, airport operations, and overall industry performance. This analysis will address the general environment driving delivery channel decisions, the success factors of major metropolitan areas in maintaining secondary and reliever airports, the potential of reliever airports in alleviating congestion, and both the positive and negative aspects of a strong regional airport system. General Environment in the Global Airline Industry: Market Demand and Competition: The airline industry is driven by market demand, which can vary based on economic conditions, tourism trends, and demographic factors. Airlines must assess these factors to determine the routes and services they offer. Technology and Connectivity : The advancement of technology has transformed the industry, influencing distribution channels, reservation systems, and passenger experience. Connectivity through online platforms and mobile apps has become crucial. Regulations and Safety : Strict regulations govern airline operations to ensure safety. Compliance with these regulations impacts decision-making, route planning, and delivery channels. Environmental Concerns: Growing environmental concerns have led to efforts to reduce carbon emissions, affecting aircraft choices and flight planning.

3 Success Factors for Secondary and Reliever Airports: Geographic Location : Secondary airports are often located strategically, offering an alternative to congested primary airports. Their proximity to major metro areas is a key success factor. Capacity Expansion : Effective management and expansion of capacity allow secondary airports to handle increasing traffic and offer additional airline options. Transportation Infrastructure : Access to efficient ground transportation, including highways and public transit, enhances the appeal of secondary airports. Carrier Diversity : Encouraging a variety of airlines to operate at secondary airports reduces dependence on a single carrier. Cost-Efficiency : Offering competitive landing fees and operating costs attracts airlines looking to reduce expenses. Reliever Airports and Congestion Alleviation: Reliever airports play a vital role in reducing congestion at major hubs. They provide alternative destinations for both passengers and cargo, helping to distribute traffic more evenly. By accommodating smaller aircraft and relieving pressure on primary airports, they can improve overall system efficiency. However, their effectiveness depends on the extent of their capacity and accessibility.

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4 Positive Aspects of a Strong Regional Airport System: Economic Impact : Regional airports generate jobs and contribute to local economies, promoting regional development. Improved Access : They enhance access to air travel for residents in smaller cities and rural areas, increasing connectivity. Competition : Regional airports foster competition among airlines, leading to more choices and potentially lower fares for passengers. Negative Aspects of a Strong Regional Airport System: Resource Allocation : Investment in regional airports may divert funds from improving major hubs, potentially hindering their development. Congestion : While reliever airports can alleviate congestion, rapid growth in regional airports may lead to congestion and capacity issues at these facilities as well. Infrastructure Costs : Maintaining and expanding regional airports can be costly, especially when considering the need for modernization and upgrades.

5 In conclusion, the global airline industry is influenced by a multitude of factors, including market demand, technology, regulations, and environmental concerns. Success factors for secondary and reliever airports include location, capacity, transportation infrastructure, carrier diversity, and cost-efficiency. Reliever airports provide an opportunity to alleviate congestion and enhance commercial operations, but their effectiveness depends on capacity and accessibility. A strong regional airport system offers economic benefits and improved access but also presents challenges in resource allocation and potential congestion. Balancing the development of regional and major airports is crucial for a resilient and efficient air transport system. References Josephs, L. (2023, July 20). AIRLINES American Airlines raises 2023 profit forecast after strong second quarter . Https://www.Cnbc.com/2023/07/20/American-Airlines-Aal-2q-2023- Earnings.Html . Federal Aviation Administration. (n.d.). Airport Categories. https://www.faa.gov/airports/planning_capacity/npias/reports/categories/ Friedman, J. S. (2003). Regional perspectives on general aviation and reliever airports: A case study of the Phoenix metropolitan area. The Journal of Air Traffic Control, 45(4), 18-23. Metropolitan Airports Commission. (n.d.). Economic impact of reliever airports. https://metrocouncil.org/Transportation/Publications-And-Resources/Light-Rail-Transit-in-the- Minneapolis-Saint-Paul-M.aspx

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