aviation overview fall 2013

8/13/2019 Aviation Overview Fall 2013

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AVIATION 1000

AVIATION: AN OVERVIEW

Aviation Institute

University of Nebraska at Omaha


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THE FIRST FLIGHT

When Did It All Start?

December 17, 1903

Wright Brothers

Kitty Hawk, NC


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WRIGHT BROTHERS

Wrights did notinvent the airplane

Wind tunnel usage

to develop aircraft

Four successfulflights

Nothing about theirsuccess appearedin the newspapers
http://www.wam.umd.edu/~stwright/WrBr/wrights/photos/Orville_Portrait.jpeghttp://www.wam.umd.edu/~stwright/WrBr/wrights/photos/Wilbur_Portrait.jpeghttp://www.wam.umd.edu/~stwright/WrBr/wrights/photos/Wilbur_night_flight.jpeg


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3 TYPES OF AVIATION

Commercial Aviation

General Aviation

Military Aviation


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AEROSPACE INDUSTRY DEFINITION

Includes those firms engaged in research,development, and manufacture of all of thefollowing:

Aerospace systems, including manned and

unmanned aircraft; Missiles, space-launch vehicles, and spacecraft;

Propulsion, guidance, and control units for all theforegoing;

And a variety of airborne and ground-basedequipment essential to the testing, operation, andmaintenance of flight vehicles


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AEROSPACE INDUSTRY

Aerospace IndustriesAssociation

General Aviation

ManufacturesAssociation


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AEROSPACE INDUSTRY

Dual nature isimportant to nationalinterest

FederalGovernment

CommercialMarket


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AEROSPACE INDUSTRY

Aerospace industries vital to theU.S. economy

Trade balance

EmploymentResearch and development

Impact on other industries


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PRIOR TO THE 1950S

Unsophisticatedindustry

Product line entirelyaeronautical

Long-runproduction

R & D considerablyless significant thantoday


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TRANSFORMATION

Transformationtook place in theearly 1950s

Highly specializedindustry


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UNIQUE CHARACTERISTICS


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UNIQUE CHARACTERISTICS

High degree of risk and uncertainty

High R & D costs due to long lead times

Government resource availability

Shorter production runs

Higher skilled personnel

Advance estimation of costs is difficult

Fierce competition

Profit percentages are consistently belowaverage manufacturing industries

Investment return is lower than average


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ECONOMIC PROFILE OF THE INDUSTRY

Principal Product Line 55% aircraft

21% space systems

6% missiles

17% engines, parts,equipment (other)

High:

Performance Reliability

Technology

Unit Value


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U.S. AEROSPACE IN THE 1990S

Difficult time

Industrys worst

downturn in 40 years

1996 began to see a

turnaround Industry shift from

military focus to civil

Demands greater

number of scientists,engineers, andtechnicians


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ECONOMIC IMPACT OF AVIATION

Entire industries can be

changed radically by airtransportation Examples: Flowers and

Food; human tissue

Air transportation candevelop only as far asfacilities permit

Public interest concept

includes: Commerce Postal Service National Defense


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MANUFACTURING

Includes R&D, designconstruction,fabrication, assembly,sales, maintenance,and modification

Commercial airtransport industryrepresents thestrongest segment ofthe U.S. aerospace

industry General aviation

aircraft production isincreasing


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THE TWO BIG MANUFACTURERS

Airbus (380) Government

subsidization byFrance, Germany, the

UK, and SpainBoeing (787)

Large military contractsover the years have

allowed them to offsettheir R&D costs


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COMMERCIAL AIR TRANSPORTATION

Economic effects of theindustry:

Shrinkage of distance interms of time

Expanded transport capacity

of the jet in comparison topropeller-driven aircraft

Increase in the number ofpeople using airtransportation for business

and pleasure Shift of traffic volume from

surface to air

CIVIL AVIATION MARKET


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CIVIL AVIATION MARKET

Characteristics

Requires an enormous amount of capital

Manufacturers must wait about 4 years beforedeliveries begin and revenue is generated frominitial investments

Limited customer base

Volume of orders low

400 to 600 aircraft must be sold before aprogram reaches the break-even point (variable,

depending on the manufacturer, market,economy, etc.)


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AIR TRANSPORT

Principal civil aviation productis the airline transport

Number of Manufacturers

Prior to WWII

1980s and 1990s Boeing/McDonnell-Douglas

FACTORS AFFECTING SALES


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Economic Growth World economic growth

Inflation

Fleet Capacity Passenger load factor

Replacement Aircraft

Airline Profitability

New regulations

Cyclical Industry

AIR TRANSPORTATION INDUSTRY


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AIR TRANSPORTATION INDUSTRY

All civil flyingperformed bycertificated aircarriers andgeneral aviation

Direct and indirect

contributions to theeconomy

CERTIFICATED AIR CARRIERS


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CERTIFICATED AIR CARRIERS

Scheduled Airlines Class of air carriers

holding certificates ofPublic Convenienceand Necessity issuedby the Department ofTransportation (DOT)& authorized to flyscheduled airtransportation overspecified routes and alimited amount ofnonscheduledoperations Includes passenger and

cargo operations

MAJOR CARRIERS
http://airliners.net/open.file/028546/L/http://airliners.net/open.file/100621/L/


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MAJOR CARRIERS

Southwest

American Delta

United

Account for more than of the total trafficof the industry

DEREGULATION
http://www.airliners.net/open.file?id=400106&WxsIERv=Qm9laW5nIDc2Ny0zMzJFUg==&WdsYXMg=RGVsdGEgQWlyIExpbmVz&QtODMg=RnJhbmtmdXJ0IC0gTWFpbiAoUmhlaW4tTWFpbiBBRkIpIChGUkEgLyBGUkYgLyBFRERGKQ==&ERDLTkt=R2VybWFueQ==&ktODMp=RGVjZW1iZXIgMTQsIDIwMDI=&BP=0&WNEb25u=TWFyaW8gQXVyaWNo&xsIERvdWdsY=TjE2MDRS&MgTUQtODMgKE=&YXMgTUQtODMgKERD=OQ==&NEb25uZWxs=MjAwMy0wOC0xMg==&static=yeshttp://www.airliners.net/open.file?id=400157&WxsIERv=Qm9laW5nIDc0Ny00MjI=&WdsYXMg=VW5pdGVkIEFpcmxpbmVz&QtODMg=U2FuIEZyYW5jaXNjbyAtIEludGVybmF0aW9uYWwgKFNGTyAvIEtTRk8p&ERDLTkt=VVNBIC0gQ2FsaWZvcm5pYQ==&ktODMp=QXVndXN0IDUsIDIwMDM=&BP=0&WNEb25u=TWFuYXMgQmFyb29haA==&xsIERvdWdsY=TjE3M1VB&MgTUQtODMgKE=TXkgZmlyc3Qgc2hvdCB3aXRoIENhbm9uIDEwMC00MDBtbSBJUyBMZW5zZQ==&YXMgTUQtODMgKERD=Mjg=&NEb25uZWxs=MjAwMy0wOC0xMg==&static=yeshttp://www.airliners.net/open.file?id=400162&WxsIERv=Qm9laW5nIDc1Ny0yMjM=&WdsYXMg=QW1lcmljYW4gQWlybGluZXM=&QtODMg=U2FuIEpvc2UgLSBOb3JtYW4gWS4gTWluZXRhIEludGVybmF0aW9uYWwgKE11bmljaXBhbCkgKFNKQyAvIEtTSkMp&ERDLTkt=VVNBIC0gQ2FsaWZvcm5pYQ==&ktODMp=QXVndXN0IDIsIDIwMDM=&BP=0&WNEb25u=TWFuYXMgQmFyb29haA==&xsIERvdWdsY=TjE5NEFB&MgTUQtODMgKE=RGVsaXZlcmVkIDA5LTE1LTIwMDE=&YXMgTUQtODMgKERD=MTA=&NEb25uZWxs=MjAwMy0wOC0xMg==&static=yes


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DEREGULATION

Airline Deregulation

Act of 1978 Competition

Slow start due to: Airline

managementslack ofexperience

Economic

recession World oil crisis

Chapter 11bankruptcies

DEREGULATION


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DEREGULATION

Low fares resultedin increasepassenger traffic

Many communitiessaw improved airservice

SEPTEMBER 11 2001


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SEPTEMBER 11, 2001

Devastating impact Air carriers already in a

weak financial positiondue to slight recession

Federal government

relief fund $15 billion to industry

Boeing announced areduction in the numberof aircraft to be

produced Many employees laid

off

GENERAL AVIATION DEFINITION


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GENERAL AVIATION - DEFINITION

Aviation other thanmilitary and commercialcommon carriage

Including businessflying, instructionalflying, personal flying,and commercial flying

such as agriculturalspraying and aerialphotography.

Everything else

GENERAL AVIATION


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GENERAL AVIATION

Represents over 98% of total U.S. civilaircraft

Over 80% of operations at FAA- toweredairports and over 80% of total hours flown

by general aviation and air carrierscombined

Access to over 17,000 airports

Benefits: Business use, time, emergencyapplications, training, etc.

GENERAL AVIATION MANUFACTURERS


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GENERAL AVIATION MANUFACTURERS

Gulfstream, Dassault,Bombardier, Cessna,Piper

Major decline inmanufacturing

Cessna resumedproduction in 1996.

New manufacturers:Eclipse, Adams, Honda,Diamond



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High aircraft prices

High interest rates

Increased operating

expenses

Product liability laws

Changing lifestyles

Tax laws Foreign competition

Gulfstream V

Challenger 604


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aviation overview fall 2013

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