The document discusses the typical organizational structure of airline companies. It begins by describing a functional structure with departments headed by executives who report to the CEO. Large international airlines may have 8 executives overseeing areas like human resources, finance, operations, marketing, and cargo. Smaller regional airlines have fewer positions but similar divisions. The document also describes the roles and organization of an airline operations control center, and provides Southwest Airlines as an example of a company that has successfully used a centralized structure.
2. CONTENTS
Typical structure of an airline industry company
Airline operational control center
Organization structure sub division
Small airlines and organisational structure
Corporate structure of southwest airlines
3. If you look at an airline
organizational chart, you
will most likely find it is
using a functional
organizational structure,
in that management is
organized from the top
down, more or less
resembling a pyramid
with airline departments
or divisions based on the
different functions of the
company.
Typically, the airline would
have a president or CEO
reporting to a board of
directors, with executives
below her for the different
divisions. A large airline with
international flights and offices
in multiple companies, for
example, could have eight C-
level executives reporting to
the CEO, each with three to
eight vice presidents below
them, including:
Typical Structure of an Airline Industry Company
5. Chief Human Resources Officer: personnel, human
resources, training, administrative affairs
Chief Financial Officer: finance, accounting, purchasing
Chief Investment Officer: investment management,
international relations, corporate innovation
Chief Development and IT Officer: customer solutions,
IT strategy and governance, strategic projects
Chief Flight Operations Officer: flight operations, cabin
crews, operations control, crew planning
Chief Commercial Officer: ground operations, regional
flights, catering and inflight products
Chief Marketing Officer: corporate marketing, corporate
communications, marketing, domestic sales, regional sale
Chief Cargo Officer: cargo maintenance, cargo sales,
cargo operations
6. TYPICAL ORGANIZATIONAL STRUCTURE OF AIRPORTS IN
GENERAL −
Chief Human
Resources Officer:
personnel, human
resources, training,
administrative affairs
Chief Financial Officer:
finance, accounting,
purchasing
7. Airline
operational
control center.
The AOCC is usually made up of a small group of experts
supervised by an operational control manager. Its role is
to monitor all of the disparate activities required to keep
flights running smoothly. When there is a problem, like an
aircraft malfunction, a sick crew member or a flight
delayed due to weather, the AOCC is responsible for
restoring operations as quickly as possible at a minimum
cost.
9. Small Airlines and Organizational Structure
Looking at the structure of smaller,
regional airlines today, like Alaska
Airlines and Air Wisconsin Airlines,
reveals that while they have fewer
positions than their larger
competitors, the divisions are quite
similar. Air Wisconsin Airlines, for
example, has a CEO and president
followed by three senior VPs in
charge of operations, finances and
technology and business analysis.
Below them are five VPs
10. Vice President of In-flight and Customer
Service
Vice President of Information
Technology and Business Intelligence
Vice President of Flight Operations
Vice President of Safety and Security
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11. Corporate Structure of Southwest Airlines
Southwest has used this structure
successfully while competing with other
major carriers like American, Delta and
United. Rigid chains of command all lead
to a central authority, which benefits the
company in four ways:
As an international, low-cost airline
today, Southwest still uses what is
essentially the same structure it
used when it was a small local
carrier in Texas.
12. Southwest can respond to changes in the
industry and adopt new initiatives very
quickly.
The company can efficiently control
costs, an essential part of its business
model as a low-cost airline.
It minimizes redundancies among
different airline departments.
Its business functions are run by experts
in their fields. The VPs of ground
operations, in-flight operations and
maintenance operations, for example, all
report to the executive VP for daily
operations.