Internationalization of civil aviation

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  • 1. Ekaterina LuchaninovaInternationalization-economics,aviation.Universidad Autónoma de Madrid.Asignatura-Introducción a la ciencia política.Grupo 1611.Internationalization of civilaviation.
  • 2. Internationalization of the economy - the formation of stableinternational relations in the production and economic sphere on the basis ofthe international division of labor. The international division of labor - is asystem or a way to organize interdependent production, where companiesfrom different countries specialize in the production of certain goods andservices, and then exchange them.Civil aviation - an industry that is mosteffective in developing internationalization.Flights from one country toanother country usually regulated by intergovernmental agreements, whichdefine (appoint) airlines for regular air travels.Intergovernmental Agreementspecifies the network, negotiates a common tariff policy. But the airline,which starts flying to another country is facing a number of challenges, suchas the restriction of sales, limiting the route.For example, until recently, theonly airlines to transport from Russia to Spain were "Aeroflot" and "Iberia". Ifa passenger in Moscow wanted to fly to Seville, he had to buy two tickets -one in the agency Aeroflot to Madrid or Barcelona, the second ticket fromMadrid / Barcelona to Seville in Iberia office in Moscow. If the passenger isnot in Moscow, the ticket Madrid-Seville he could only buy in Spain afterarrival. In order to take advantage of each other (routes, network sales)airlines come to the first, most basic form of cooperation withininternationalization - Interline - agreement.Interline agreement -is a recognition of traffic documents (tickets)one other carrier. In most cases, airlines complement these agreementsspecific tariff agreements, so-called, Special Proreit Agreement, whichbecomes the basis for developing transfer tariffs for sale through traffic at thejunction of partners flights.In the case of the interline agreements betweenairlines is becoming available all the established partner company and agentsales network in the territory of another state - a ticket for Iberia flights can bebought in any part of Russia and the CIS, which have offices or agentsAeroflot. And here is obvious direct benefit - when selling to a partner airlineflights agent gets a commission. Selling division Moscow-Madrid-Seville,Aeroflot receives additional income from commissions on the section Madrid-Seville, which will perform a partner airline Iberia.Through flight partners reach goal of attracting passengers a wider network ofroutes. Passengers departing from Madrid to Russia are not limited to fly backto Moscow or St. Petersburg, and can immediately make a flight to anywherein Russia, which is flying Aeroflot eg Madrid-Moscow-Arkhangelsk, wherethe plot Moscow-Arkhangelsk will perform Aeroflot. Moreover, the entirecarriage is issued one ticket using special "through" rates (through fare),which is beneficial for the passenger and entails an increase incompetitiveness.Another obvious advantage in this form of cooperation is through the use ofregistration. Paragraph journey began passenger checks in for the entire route,a running partner airlines. Interline agreements allow passengers to use the
  • 3. most convenient connection flights with different airlines - participating in theagreement. As well as getting luggage to final destination withoutintermediate registration - is the so-called pass-through luggagetransportation.Under the agreements, interline partners use routes, technology,sales networks to each other, do not create their own and in another state, andwithout spending additional funds.Code-sharing - sharing aircraft partner airlines.According to the code-share, an aircraft belonging to one airline (operator), isused for a particular route by several airlines (marketing partner). This form ofcooperation is a higher form of internationaization in civil aviation, as itaffects the basic means of production, the aircraft ..Actually performs one airline flight (operator), but to sell seats on this flightare able all marketing partners involved in this agreement. Operator andmarketing partners sell seats on the same flight on its behalf, so each carrierthis flight has its own code and number, their tariffs.The practice of code-sharing is common in aviation, because it is obviousadvantage of such cooperation for airlines using partner flights, they are ableto reduce the number of its own flights, and that tangible savings. Forexample, in accordance with the intergovernmental agreement on the daymust be made by each of the two flights of participating airlines of 4: 2 in themorning flight, two night trip. Load percentage on each flight does not exceed35%, which is not beneficial to either party. In the event that code-shareagreement flying together - one flight in the morning runs and in the evening -only 2. The cost of performing each flight are reduced to 2, and the payloadrises by 2 times.Airline partners share the costs and revenues. Flight become profitable.Now between Russia and Spain code-share flights operated by airlinesAeroflot and AirEurope, S7 and Iberia.But passengers benefit from such agreements. Under code-share agreementsare defined uniform standards of service, and the base is taken from theexisting higher the partners. Under these agreements applied a single systemfor frequent-flyer (Frequent Flyer Programm), which allows for much fastertyping bonus miles.Globalization - is a more advanced form ofinternationalization.Code-sharing agreements - one of the most powerful tools of practicalembodiment of commercial cooperation in the global airline alliances.Aviation partnership - partnership of airlines, enabling a higher level of international cooperation incommercial air transport. The main reason for the formation of airline alliances - is getting moreefficiency from working together than they could get us individually, as well as reducing costs.
  • 4. Formation of global alliances has mirrored the economic integration processes, which are manifestedin the world. The Alliance is a multilateral scheme of commercial cooperation, in which carriers are combiningtheir route networks and harmonize other business processes. The idea is to build a coherent routenetwork with the most comfortable for the passenger layover between flights of differentcompanies and to negotiate the quality of service to passengers during the flight on a difficultroute received service is paramount. Alliances create a single brand, such as creating a singlelivery (paint) aircraft among airlines of the alliance. Additional means of attracting and retainingpassengers are coordinated programs frequent flyer allowing for mutual recognition of membersof the alliance bonus miles accumulated on flights of other carriers. The result is that thepassenger has to do, as it were, with one big airline offering extensive route network and bonusprogram.Today in the world there and successfully developed three global airline alliance:• Star Alliance; founded in 1997, carries about 500 million passengers. a year;• oneworld; established in 1999, about 330 million passengers.;• SkyTeam; formed in 2000, 462 million passengers.In these alliances together 48 large and medium-sized carriers, which together provide more thanhalf of the world passenger traffic ..All three are U.S. airline alliances (6), China (4) Spain (3), and two - the United Kingdom (2),Finland (2), Japan (2), South Korea (2) Mexico (2) . Airline Aeroflot enters into an alliance with SkyTeam airline Air Europa, which werepreviously signed agreements interline and code-share. Airline S7 (Syberia) walks into analliance with OneWorld airline Iberia.Bibliography-Jim Winchester-Civil Aircrafts(The aviation Factfiles)Jim Winchester-History of Aviation.Civil AviationLinks-IATA- International Air Transport Association- www.iata.orgOnline economic aviation magazine-http://www.iata.org/publications/economics/Pages/index.aspx