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Ekaterina Luchaninova
Internationalization-economics,aviation.
Universidad Autónoma de Madrid.
Asignatura-Introducción a la ciencia política.
Grupo 1611.
Internationalization of civil
aviation.
Internationalization of the economy - the formation of stable
international relations in the production and economic sphere on the basis of
the international division of labor. The international division of labor - is a
system or a way to organize interdependent production, where companies
from different countries specialize in the production of certain goods and
services, and then exchange them.Civil aviation - an industry that is most
effective in developing internationalization.Flights from one country to
another country usually regulated by intergovernmental agreements, which
define (appoint) airlines for regular air travels.Intergovernmental Agreement
specifies the network, negotiates a common tariff policy. But the airline,
which starts flying to another country is facing a number of challenges, such
as the restriction of sales, limiting the route.For example, until recently, the
only airlines to transport from Russia to Spain were "Aeroflot" and "Iberia". If
a 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 from
Madrid / Barcelona to Seville in Iberia office in Moscow. If the passenger is
not in Moscow, the ticket Madrid-Seville he could only buy in Spain after
arrival. In order to take advantage of each other (routes, network sales)
airlines come to the first, most basic form of cooperation within
internationalization - Interline - agreement.
Interline agreement -is a recognition of traffic documents (tickets)
one other carrier. In most cases, airlines complement these agreements
specific tariff agreements, so-called, Special Proreit Agreement, which
becomes the basis for developing transfer tariffs for sale through traffic at the
junction of partners' flights.In the case of the interline agreements between
airlines is becoming available all the established partner company and agent
sales network in the territory of another state - a ticket for Iberia flights can be
bought in any part of Russia and the CIS, which have offices or agents
Aeroflot. And here is obvious direct benefit - when selling to a partner airline
flights 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 of
routes. Passengers departing from Madrid to Russia are not limited to fly back
to Moscow or St. Petersburg, and can immediately make a flight to anywhere
in Russia, which is flying Aeroflot eg Madrid-Moscow-Arkhangelsk, where
the plot Moscow-Arkhangelsk will perform Aeroflot. Moreover, the entire
carriage is issued one ticket using special "through" rates (through fare),
which is beneficial for the passenger and entails an increase in
competitiveness.
Another obvious advantage in this form of cooperation is through the use of
registration. Paragraph journey began passenger checks in for the entire route,
a running partner airlines. Interline agreements allow passengers to use the
most convenient connection flights with different airlines - participating in the
agreement. As well as getting luggage to final destination without
intermediate registration - is the so-called pass-through luggage
transportation.Under the agreements, interline partners use routes, technology,
sales networks to each other, do not create their own and in another state, and
without spending additional funds.
Code-sharing - sharing aircraft partner airlines.
According to the code-share, an aircraft belonging to one airline (operator), is
used for a particular route by several airlines (marketing partner). This form of
cooperation is a higher form of internationaization in civil aviation, as it
affects the basic means of production, the aircraft ..
Actually performs one airline flight (operator), but to sell seats on this flight
are able all marketing partners involved in this agreement. Operator and
marketing partners sell seats on the same flight on its behalf, so each carrier
this flight has its own code and number, their tariffs.
The practice of code-sharing is common in aviation, because it is obvious
advantage of such cooperation for airlines using partner flights, they are able
to reduce the number of its own flights, and that tangible savings. For
example, in accordance with the intergovernmental agreement on the day
must be made by each of the two flights of participating airlines of 4: 2 in the
morning flight, two night trip. Load percentage on each flight does not exceed
35%, which is not beneficial to either party. In the event that code-share
agreement 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 payload
rises by 2 times.
Airline partners share the costs and revenues. Flight become profitable.
Now between Russia and Spain code-share flights operated by airlines
Aeroflot and AirEurope, S7 and Iberia.
But passengers benefit from such agreements. Under code-share agreements
are defined uniform standards of service, and the base is taken from the
existing higher the partners. Under these agreements applied a single system
for frequent-flyer (Frequent Flyer Programm), which allows for much faster
typing bonus miles.
Globalization - is a more advanced form of
internationalization.
Code-sharing agreements - one of the most powerful tools of practical
embodiment of commercial cooperation in the global airline alliances.
Aviation partnership - partnership of airlines, enabling a higher level of international cooperation in
commercial air transport. The main reason for the formation of airline alliances - is getting more
efficiency from working together than they could get us individually, as well as reducing costs.
Formation of global alliances has mirrored the economic integration processes, which are manifested
in the world.
 The Alliance is a multilateral scheme of commercial cooperation, in which carriers are combining
their route networks and harmonize other business processes. The idea is to build a coherent route
network with the most comfortable for the passenger layover between flights of different
companies and to negotiate the quality of service to passengers during the flight on a difficult
route received service is paramount. Alliances create a single brand, such as creating a single
livery (paint) aircraft among airlines of the alliance. Additional means of attracting and retaining
passengers are coordinated programs frequent flyer allowing for mutual recognition of members
of the alliance bonus miles accumulated on flights of other carriers. The result is that the
passenger has to do, as it were, with one big airline offering extensive route network and bonus
program.
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 than
half 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 were
previously signed agreements interline and code-share. Airline S7 (Syberia) walks into an
alliance with OneWorld airline Iberia.
Bibliography-
Jim Winchester-Civil Aircrafts(The aviation Factfiles)
Jim Winchester-History of Aviation.Civil Aviation
Links-
IATA- International Air Transport Association- www.iata.org
Online economic aviation magazine-
http://www.iata.org/publications/economics/Pages/index.aspx

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Internationalization of civil aviation

  • 1. Ekaterina Luchaninova Internationalization-economics,aviation. Universidad Autónoma de Madrid. Asignatura-Introducción a la ciencia política. Grupo 1611. Internationalization of civil aviation.
  • 2. Internationalization of the economy - the formation of stable international relations in the production and economic sphere on the basis of the international division of labor. The international division of labor - is a system or a way to organize interdependent production, where companies from different countries specialize in the production of certain goods and services, and then exchange them.Civil aviation - an industry that is most effective in developing internationalization.Flights from one country to another country usually regulated by intergovernmental agreements, which define (appoint) airlines for regular air travels.Intergovernmental Agreement specifies the network, negotiates a common tariff policy. But the airline, which starts flying to another country is facing a number of challenges, such as the restriction of sales, limiting the route.For example, until recently, the only airlines to transport from Russia to Spain were "Aeroflot" and "Iberia". If a 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 from Madrid / Barcelona to Seville in Iberia office in Moscow. If the passenger is not in Moscow, the ticket Madrid-Seville he could only buy in Spain after arrival. In order to take advantage of each other (routes, network sales) airlines come to the first, most basic form of cooperation within internationalization - Interline - agreement. Interline agreement -is a recognition of traffic documents (tickets) one other carrier. In most cases, airlines complement these agreements specific tariff agreements, so-called, Special Proreit Agreement, which becomes the basis for developing transfer tariffs for sale through traffic at the junction of partners' flights.In the case of the interline agreements between airlines is becoming available all the established partner company and agent sales network in the territory of another state - a ticket for Iberia flights can be bought in any part of Russia and the CIS, which have offices or agents Aeroflot. And here is obvious direct benefit - when selling to a partner airline flights 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 of routes. Passengers departing from Madrid to Russia are not limited to fly back to Moscow or St. Petersburg, and can immediately make a flight to anywhere in Russia, which is flying Aeroflot eg Madrid-Moscow-Arkhangelsk, where the plot Moscow-Arkhangelsk will perform Aeroflot. Moreover, the entire carriage is issued one ticket using special "through" rates (through fare), which is beneficial for the passenger and entails an increase in competitiveness. Another obvious advantage in this form of cooperation is through the use of registration. 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 the agreement. As well as getting luggage to final destination without intermediate registration - is the so-called pass-through luggage transportation.Under the agreements, interline partners use routes, technology, sales networks to each other, do not create their own and in another state, and without spending additional funds. Code-sharing - sharing aircraft partner airlines. According to the code-share, an aircraft belonging to one airline (operator), is used for a particular route by several airlines (marketing partner). This form of cooperation is a higher form of internationaization in civil aviation, as it affects the basic means of production, the aircraft .. Actually performs one airline flight (operator), but to sell seats on this flight are able all marketing partners involved in this agreement. Operator and marketing partners sell seats on the same flight on its behalf, so each carrier this flight has its own code and number, their tariffs. The practice of code-sharing is common in aviation, because it is obvious advantage of such cooperation for airlines using partner flights, they are able to reduce the number of its own flights, and that tangible savings. For example, in accordance with the intergovernmental agreement on the day must be made by each of the two flights of participating airlines of 4: 2 in the morning flight, two night trip. Load percentage on each flight does not exceed 35%, which is not beneficial to either party. In the event that code-share agreement 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 payload rises by 2 times. Airline partners share the costs and revenues. Flight become profitable. Now between Russia and Spain code-share flights operated by airlines Aeroflot and AirEurope, S7 and Iberia. But passengers benefit from such agreements. Under code-share agreements are defined uniform standards of service, and the base is taken from the existing higher the partners. Under these agreements applied a single system for frequent-flyer (Frequent Flyer Programm), which allows for much faster typing bonus miles. Globalization - is a more advanced form of internationalization. Code-sharing agreements - one of the most powerful tools of practical embodiment of commercial cooperation in the global airline alliances. Aviation partnership - partnership of airlines, enabling a higher level of international cooperation in commercial air transport. The main reason for the formation of airline alliances - is getting more efficiency 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 manifested in the world.  The Alliance is a multilateral scheme of commercial cooperation, in which carriers are combining their route networks and harmonize other business processes. The idea is to build a coherent route network with the most comfortable for the passenger layover between flights of different companies and to negotiate the quality of service to passengers during the flight on a difficult route received service is paramount. Alliances create a single brand, such as creating a single livery (paint) aircraft among airlines of the alliance. Additional means of attracting and retaining passengers are coordinated programs frequent flyer allowing for mutual recognition of members of the alliance bonus miles accumulated on flights of other carriers. The result is that the passenger has to do, as it were, with one big airline offering extensive route network and bonus program. 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 than half 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 were previously signed agreements interline and code-share. Airline S7 (Syberia) walks into an alliance with OneWorld airline Iberia. Bibliography- Jim Winchester-Civil Aircrafts(The aviation Factfiles) Jim Winchester-History of Aviation.Civil Aviation Links- IATA- International Air Transport Association- www.iata.org Online economic aviation magazine- http://www.iata.org/publications/economics/Pages/index.aspx