Download - Aviation Overview Fall 2013
-
8/13/2019 Aviation Overview Fall 2013
1/32
AVIATION 1000
AVIATION: AN OVERVIEW
Aviation Institute
University of Nebraska at Omaha
-
8/13/2019 Aviation Overview Fall 2013
2/32
THE FIRST FLIGHT
When Did It All Start?
December 17, 1903
Wright Brothers
Kitty Hawk, NC
-
8/13/2019 Aviation Overview Fall 2013
3/32
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 -
8/13/2019 Aviation Overview Fall 2013
4/32
3 TYPES OF AVIATION
Commercial Aviation
General Aviation
Military Aviation
-
8/13/2019 Aviation Overview Fall 2013
5/32
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
-
8/13/2019 Aviation Overview Fall 2013
6/32
AEROSPACE INDUSTRY
Aerospace IndustriesAssociation
General Aviation
ManufacturesAssociation
-
8/13/2019 Aviation Overview Fall 2013
7/32
AEROSPACE INDUSTRY
Dual nature isimportant to nationalinterest
FederalGovernment
CommercialMarket
-
8/13/2019 Aviation Overview Fall 2013
8/32
AEROSPACE INDUSTRY
Aerospace industries vital to theU.S. economy
Trade balance
EmploymentResearch and development
Impact on other industries
-
8/13/2019 Aviation Overview Fall 2013
9/32
PRIOR TO THE 1950S
Unsophisticatedindustry
Product line entirelyaeronautical
Long-runproduction
R & D considerablyless significant thantoday
-
8/13/2019 Aviation Overview Fall 2013
10/32
TRANSFORMATION
Transformationtook place in theearly 1950s
Highly specializedindustry
-
8/13/2019 Aviation Overview Fall 2013
11/32
UNIQUE CHARACTERISTICS
-
8/13/2019 Aviation Overview Fall 2013
12/32
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
-
8/13/2019 Aviation Overview Fall 2013
13/32
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
-
8/13/2019 Aviation Overview Fall 2013
14/32
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
-
8/13/2019 Aviation Overview Fall 2013
15/32
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
-
8/13/2019 Aviation Overview Fall 2013
16/32
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
-
8/13/2019 Aviation Overview Fall 2013
17/32
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
-
8/13/2019 Aviation Overview Fall 2013
18/32
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
-
8/13/2019 Aviation Overview Fall 2013
19/32
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.)
-
8/13/2019 Aviation Overview Fall 2013
20/32
AIR TRANSPORT
Principal civil aviation productis the airline transport
Number of Manufacturers
Prior to WWII
1980s and 1990s Boeing/McDonnell-Douglas
FACTORS AFFECTING SALES
-
8/13/2019 Aviation Overview Fall 2013
21/32
FACTORS AFFECTING SALES
Economic Growth World economic growth
Inflation
Fleet Capacity Passenger load factor
Replacement Aircraft
Airline Profitability
New regulations
Cyclical Industry
AIR TRANSPORTATION INDUSTRY
-
8/13/2019 Aviation Overview Fall 2013
22/32
AIR TRANSPORTATION INDUSTRY
All civil flyingperformed bycertificated aircarriers andgeneral aviation
Direct and indirect
contributions to theeconomy
CERTIFICATED AIR CARRIERS
-
8/13/2019 Aviation Overview Fall 2013
23/32
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/ -
8/13/2019 Aviation Overview Fall 2013
24/32
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 -
8/13/2019 Aviation Overview Fall 2013
25/32
DEREGULATION
Airline Deregulation
Act of 1978 Competition
Slow start due to: Airline
managementslack ofexperience
Economic
recession World oil crisis
Chapter 11bankruptcies
DEREGULATION
-
8/13/2019 Aviation Overview Fall 2013
26/32
DEREGULATION
Low fares resultedin increasepassenger traffic
Many communitiessaw improved airservice
SEPTEMBER 11 2001
-
8/13/2019 Aviation Overview Fall 2013
27/32
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
-
8/13/2019 Aviation Overview Fall 2013
28/32
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
-
8/13/2019 Aviation Overview Fall 2013
29/32
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
-
8/13/2019 Aviation Overview Fall 2013
30/32
GENERAL AVIATION MANUFACTURERS
Gulfstream, Dassault,Bombardier, Cessna,Piper
Major decline inmanufacturing
Cessna resumedproduction in 1996.
New manufacturers:Eclipse, Adams, Honda,Diamond
FACTORS AFFECTING SALES
-
8/13/2019 Aviation Overview Fall 2013
31/32
FACTORS AFFECTING SALES
High aircraft prices
High interest rates
Increased operating
expenses
Product liability laws
Changing lifestyles
Tax laws Foreign competition
Gulfstream V
Challenger 604
-
8/13/2019 Aviation Overview Fall 2013
32/32
Questions/Comments?