1. This course is prepared under the Erasmus+ KA-210-YOU Project titled
«Skilling Youth for the Next Generation Air Transport Management»
Contemporary Managerial
Tools in Aviation
Introduction to Aviation Management and Contemporary
Managerial Tools
Assoc. Prof. Dr. Savaş. S. Ateş
Assist. Prof. Dr. Mahmut Bakır
2. The provision of a secure, effective, and dependable civil aviation industry is now a critical
factor in promoting global economic growth. Within just over a century since the world's first
scheduled flight in 1914, the commercial air transport industry has evolved to become the
most important high-speed mode of long-distance travel worldwide.
Civil aviation plays a pivotal role in both driving and being driven by the processes of
globalization, the intensification of international trade, and the growing exchange of culture
and social interaction. Additionally, civil aviation has significantly impacted the shifting
patterns of international migration, commerce, and tourism. Overall, the industry has played
a vital role in transforming the global landscape of transportation and has enabled a more
connected and integrated world economy.
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Overview of aviation management
3. Civil aviation is a term used to describe the use of aircraft for commercial purposes, such as
transporting people and goods. It is distinguished from military aviation, which involves the
use of aircraft by armed forces for defense and combat purposes, and government aviation,
which includes the use of aircraft by government agencies for various purposes such as
research and surveillance.
Civil aviation encompasses a range of activities, including the design, manufacturing, and
maintenance of aircraft, as well as airport operations and air traffic control. It also includes
the operation of airlines, which transport passengers and cargo between different locations.
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What is civil aviation?
4. The importance of civil aviation cannot be overstated. It plays a crucial role in the
global economy, facilitating international trade and tourism. It connects people and
goods from different parts of the world, enabling businesses to expand and grow. It
also plays a significant role in emergency response, including medical evacuations
and disaster relief efforts.
Moreover, civil aviation has transformed the way people travel, making air
transportation more affordable and accessible than ever before. It has brought
people closer together and opened up opportunities for cultural exchange and
understanding.
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Managerial Tools
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The importance of civil aviation
5. Aviation management involves the administration of various activities related to the aviation
industry. The components of aviation management include:
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Managerial Tools
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Components of aviation management
Airline
Management
Airport
Management
Air Traffic
Management
Aviation
Financial
Management
Aviation
Security
Management
Aviation Safety
Management
Aviation Human
Resource
Management
Aviation
Marketing
Management
6. • Airline Management: This involves the overall management of an airline, which includes
managing flight schedules, route planning, aircraft maintenance, ticket pricing, marketing,
and customer service.
• Airport Management: This involves the management of an airport, which includes
managing the terminal, runway operations, security, ground handling, and maintenance.
• Air Traffic Management: This involves the management of air traffic control, which
includes managing air traffic controllers, flight planning, and communication with pilots.
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Components of aviation management
7. • Aviation Safety Management: This involves managing safety regulations and protocols
to ensure the safety of passengers and crew, including accident prevention, investigation,
and reporting.
• Aviation Security Management: This involves managing security protocols to ensure the
safety of passengers and crew, including screening procedures, emergency response
planning, and crisis management.
• Aviation Financial Management: This involves managing the financial aspects of the
aviation industry, including budgeting, revenue management, financial analysis, and risk
management.
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Managerial Tools
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Components of aviation management
8. • Aviation Human Resource Management: This involves managing human resources in
the aviation industry, including recruitment, training, and development of employees.
• Aviation Marketing Management: This involves managing the marketing activities of
airlines, airports, and other aviation-related organizations, including advertising,
promotions, and public relations.
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Managerial Tools
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Components of aviation management
9. Organisational and external factors influencing the çivil aviation industry
Budd, L., & Ison, S. (2017). Air Transport Management: An International Perspective. Oxon: Routledge.
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Managerial Tools
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10. The civil aviation industry is a complex and dynamic sector that plays a crucial role in
modern transportation systems. Some of the key characteristics of the civil aviation industry
include:
• High Capital Intensity: The aviation industry requires significant capital investment in
aircraft, infrastructure, and technology. This makes it a capital-intensive industry with high
entry barriers.
• Global Reach: The aviation industry is a truly global industry, with airlines operating
across the world and connecting people and businesses across different continents.
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Managerial Tools
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Characteristics of the civil aviation industry
11. • Seasonal Demand: The demand for air travel is typically seasonal, with peak travel
periods during holidays, summer vacations, and other popular travel periods. This can
create challenges for airlines in terms of capacity management and pricing.
• Intense Competition: The aviation industry is highly competitive, with airlines competing
on price, service quality, routes, and amenities. The presence of low-cost carriers has
increased competition in recent years.
• High Regulation: The aviation industry is subject to extensive regulation by national and
international bodies, such as the International Civil Aviation Organization (ICAO), the
Federal Aviation Administration (FAA), and the European Aviation Safety Agency (EASA).
Safety and security are major concerns for regulators.
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Managerial Tools
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Characteristics of the civil aviation industry
12. • Technological Advancements: The aviation industry is characterized by rapid
technological advancements, such as new aircraft designs, engine technologies, and
digital innovations, which enable airlines to improve safety, efficiency, and passenger
experience.
• Environmental Impact: The aviation industry is a significant contributor to carbon
emissions and climate change. Therefore, airlines are under pressure to adopt
sustainable practices and reduce their environmental impact.
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Characteristics of the civil aviation industry
13. The evolution of civil aviation can be traced back to the early 20th century when the Wright
Brothers successfully conducted the first powered flight in 1903. The following years saw
the development of aviation technology and the establishment of commercial airlines, which
started offering air travel services to passengers.
In 1905, Gabriel and Charles Voisin founded the inaugural aircraft manufacturing company
in France. Four years later, in 1909, Louis Blériot achieved a remarkable accomplishment
by crossing the English Channel in a monoplane. In 1914, the St. Petersburg-Tampa Airboat
Line established the world's first scheduled passenger air transport from St. Petersburg,
Florida in the United States. The first official airmail route within the United States was
established in 1918, spanning between New York City and Washington DC. In that same
year, the US Post Office Department took over the entirety of the airmail service.
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Managerial Tools
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Evolution of civil aviation
14. In the 1920s and 1930s, the aviation industry saw significant advancements with the
introduction of metal planes and more powerful engines. This led to the development of
larger, more efficient passenger planes capable of carrying more people and cargo.
The International Air Traffic Association was established in 1919 in The Hague,
Netherlands. The primary goal of this organization was to foster a mutual comprehension of
international air transportation among its members. As a result, numerous airlines emerged
soon after its formation. These airlines included Qantas in 1920, Imperial Airways in 1924,
Lufthansa in 1926, and Air France in 1933.
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Managerial Tools
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Evolution of civil aviation
15. During World War II, aviation technology continued to advance as military aircraft were
developed for combat. After the war, many of these technologies were adapted for civilian
use, leading to the introduction of jet engines, which greatly improved the speed and
efficiency of air travel.
In the 1950s and 1960s, the commercial aviation industry grew rapidly as air travel became
more accessible to the public. The introduction of large, wide-bodied planes such as the
Boeing 747 allowed for greater capacity and longer-range flights.
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Managerial Tools
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Evolution of civil aviation
16. In the aftermath of the Second World War, the Chicago Convention of 1944 was convened
to reaffirm the bilateral negotiation of "traffic rights" between nations and establish the
International Civil Aviation Organization (ICAO) as a United Nations agency to oversee and
regulate global civil aviation. Subsequently, the International Air Transport Association
(IATA) was established in 1945 to facilitate efficient and seamless commercial air
transportation.
Following the strict regulatory network that had been in place, deregulation was regarded as
a significant landmark in aviation history, particularly after the Second World War. The
United States initiated this in 1978 in response to challenges and issues encountered by
airlines operating in highly regulated environments.
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Managerial Tools
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Evolution of civil aviation
17. Deregulation has had a significant impact on the airline industry, resulting in various
changes. These changes include an immediate expansion of routes and networks for
established airlines, along with the entry of new airlines and an ensuing increase in
competition. A complex fare structure emerged, with discounts being offered in response to
demand. This, in turn, led to a reduction in airfares and a surge in air travel demand.
With deregulation, there was also an emergence of loyalty schemes, an increase in airline
productivity, and a rise in air transport employment. Region-based airlines were able to
expand their services to other regions, and trunk airlines began growing by introducing the
"Hub and Spoke" system.
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Airline Deregulation Act
18. However, there were also financial issues that loomed large over the airline business, and
mega airlines emerged through multilevel mergers and acquisitions. The emergence of
"open skies agreements" further impacted the industry by enabling airlines to fly across
borders with greater ease. Finally, low-cost carriers (LCCs) entered the market, offering
much lower fares and increasing competition.
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Airline Deregulation Act
19. Overview of contemporary managerial tools
The term of «Management»
• Management refers to the process of
planning, organizing, directing, and
controlling resources, including people,
time, and money, in order to achieve
organizational goals effectively and
efficiently. It involves making decisions,
setting goals, coordinating activities,
motivating employees, and ensuring that
resources are used in the most productive
manner.
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Managerial Tools
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20. Managerial tools refer to the various resources, techniques, and methodologies used by
managers to facilitate decision-making, improve organizational efficiency, and achieve
desired goals. These tools include various frameworks, models, software, and strategies
that help managers in their day-to-day operations and long-term planning.
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Definition of managerial tools
21. Managerial tools are crucial for managers as they help them to organize and analyze
complex information, identify potential risks and opportunities, and develop effective
strategies to achieve organizational objectives. These tools allow managers to streamline
processes, allocate resources effectively, monitor progress, and identify areas where
improvements can be made.
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Importance of managerial tools
22. Managerial tools are a set of techniques, methods, and frameworks that managers use to
manage their teams, projects, and organizations more effectively. These tools can be
broadly categorized into the following types:
• Planning tools: These tools are used to create project plans, set goals, and establish
timelines. Examples include Gantt charts, project management software, and SWOT
analysis.
• Communication tools: These tools help managers communicate with their team
members and stakeholders more effectively. Examples include email, instant messaging,
video conferencing, and project management software.
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Types of managerial tools
23. • Collaboration tools: These tools are used to facilitate collaboration among team
members and stakeholders. Examples include project management software, wikis, and
team messaging apps.
• Performance management tools: These tools are used to evaluate employee
performance, set goals, and provide feedback. Examples include performance appraisals,
goal-setting frameworks, and 360-degree feedback.
• Decision-making tools: These tools are used to facilitate decision-making processes.
Examples include decision trees, cost-benefit analysis, and SWOT analysis.
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Types of managerial tools
24. • Financial tools: These tools are used to manage budgets and financial resources.
Examples include budgeting software, financial forecasting tools, and cost tracking
systems.
• Leadership tools: These tools are used to develop leadership skills and manage people
more effectively. Examples include coaching and mentoring programs, leadership
development workshops, and team building exercises.
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Types of managerial tools
