AIRLINE QUESTIONS ~ ONE PAGE ANSWER FOR EACH QUESTIONS APPROX

Airline Questions ~ one page answer for each questions Approx

Airline Questions ~ one page answer for each questions Approx

Introduction

This chapter of the study intends to inculcate the explanation of different notion behind the success of Azul Airlines. Moreover, the body of the research will incorporate the notions attached to meet the pretext of the paper. As these notions, will help develop an effective understanding as to why Azul was able to achieve the success it did within a short span of time.

Answer # 1

As an indispensable element of a deregulated and highly competitive air transport market, the airport model has transformed during the last 25 years from a minimalistic, state-owned infrastructure provider to a modern commercial business entity. In order to satisfy capacity demands and commitments to their airline customers, airports are engaged in very long-term planning requiring substantial capital expenditures. However, they have indirect and limited control over this demand and are usually unable to match the short-term flexibility and responsiveness airlines enjoy when affected by the risks and uncertainties to which they are naturally exposed, such as fuel price escalation, geopolitical instability, excessive seasonality, recessions, health crises, terrorist threats, etc. (Christy & Wood 1999, 191).

Answer # 2

An important parameter in the assessment of airport costs is the fact that each airport may be at a totally different point in its planning and development cycle. Hence, the 'short-run cost curve' of each airport corresponds to a certain throughput capacity and is governed by economies of scale, meaning that as traffic throughput increases the unit costs are reduced. Yet, if throughput increases beyond a certain point, the congestion of landside or airside facilities would oblige the airport operator to invest in new infrastructure. This would bring the airport into the domain of a new short-run cost curve, which shall correspond to a new throughput capacity and different unit costs. Furthermore, each airport is confronted with different challenges and requirements under diverse local conditions, while size of facilities, level of service or operational complexity differ from one another thus affecting unit costs. In this respect, the comparison of airport costs is sometimes inappropriate, making difficult the relative assessment of Airport charges which aim principally in recovering development, operating and investment expenditure.

In a careful attempt to identify only dominant trends as well as the rationale and level of uniformity, the structure of aeronautical charges at 70 airports around the world was examined (see Figure 1) based on the latest data published by the airport operators or provided in the IATA Airport & Air-Navigation Charges (July 2007). The total combined traffic of the airports reviewed accounted for more than 2 billion passengers in 2006, and represent the busiest airports in their respective regions covering North & South America, Europe, broader Asia including Australia, the Middle East and Africa. (Boyd 2006, 159).

Answer # 3,4,5

Airports are continually trying to enhance safety standards, address special requirements for new aircraft types, such as the increased ...