aviation business overview 5

Aviation Business Basics - 5

By Dr. Wali Mughni

Federal University, Karachi

AFFILIATED WITH

Institute of Business Administration & Aviation Sciences

Trends and

Impact of Aviation


For every 100 jobs created in aviationIndustry 73 jobs are created in otherrelated industries

The industry conducts more R&D globally than any other industry. R&D is a long term determinant of national economic growth

Ref. p28,Air Transportation, John Wensveen


ACARS Aircraft communications addressing and reporting system.

ACAS Airborne collision avoidance system.

ACMI lease An operating lease which includes aircraft, crew, maintenance and insurance. Also known as a ‘wet lease.’

Aircraft on ground (AOG) A term commonly used to refer to an aircraft that is grounded due to a technical problem. It is occasionally used by leasing companies to refer to aircraft that are not on lease.

Terms


Airworthy aircraft An aircraft which conforms to its Type Design, as approved under the Type Certificate or a Supplemental Type Certificate, to all applicable Airworthiness Directives; and which is able to operate without significant hazard to aircrew, ground crew, passengers or the general public.

Airworthiness Directive (AD) AD’s are used by the certifying authority to notify aircraft owners and operators of unsafe conditions and to require their correction. Sometimes during service the aircraft may encounter problems that may compromise the aircraft’s safety

Terms


Air Operator Certificate (AOC) The approval granted from a national aviation authority (NAA – i.e. CAA in Pakistan) to an aircraft operator to allow it to use aircraft for commercial purposes such as charter.Altitude The height at which an aircraft flies.

Appraiser A person or organization which values (appraises) aircraft. In the US they are usually members of the American Society of Appraisers.

APU (Auxiliary power unit) A generator used to provide power to aircraft on the ground.

Terms


ATP Airline transport pilot certificate issued by the US FAA.ATPL Airline transport pilots license

Business liner Also known as a corporate airliner. A term given to a business jet that is sold as new to be used as a corporate jet but has been adapted from a model available for commercial airlines.

Call option The right to buy. An operating lease with a call option gives the lessee (or operator) the right to buy the aircraft or helicopter at the end of the lease. The opposite of a call option is a put option (the right to force someone to buy something).

Terms

http://www.corporatejetinvestor.com/business-jets/business-jet-guides/corporate-airliners/


Certificate of Airworthiness (C of A) A Certificate of Airworthiness (C of A) is issued for an aircraft by the national aviation authority of the state in which the aircraft is registered. Continuing airworthiness A continuous status of compliance with all valid airworthiness requirements.The Continuing Airworthiness Management Organization (CAMO) The organization responsible for the management and coordination of all continuing airworthiness requirements. The term CAMO was implemented by the European Aviation Safety Agency (EASA) Certificate of Registration Certifies that an individual aircraft (serial number) was entered in to the particular national register under the assigned registration mark

Terms


Concierge services Charter and fractional jet owners will often offer this extra service to customers (as do the hotels these customers stay in.)

Cross-border deal Where a financier leases an aircraft from one country to another.

Cruising altitude The height aircraft climb to.

Deadleg A term used in charter and fractional ownership to refer to a route where a flight is empty.

Terms


Designated Airworthiness Representative The nature, responsibilities and duties of this function are identical with CAMO.

Electronic flight bag – Digital alternative to the real flight bags containing paper pilots carry. Includes flight plans, taxi routes at airports, aircraft operating handbooks, airplane operation manuals etc. Now may be carried on an iPad.

ETOPS: Extended-range Twin Operations. Certification given to two-engine aircraft for long overwater flights. Popular deformation of this term is “Engines Turning Or Passengers Swimming”!

Terms


Fixed base operator (FBO) A provider of support services such as fueling, hangaring, parking, aircraft maintenance permanently based at an airport.

FBW: Fly-By-Wire. Aircraft controls where the pilot’s commands (bank, yaw…) are transmitted to control surfaces electronically or via fiber optics, instead of mechanical linkage. Also called FBL (Fly-By-Light).

FDR: Flight Data Recorder. One of the so-called “black boxes”. It is actually painted bright orange to be easily identified among aircraft debris, and records various parameters like speed, ht. etc.

Terms


Freedom of the air: Commercial aviation right governing carriage of payload between or within countries. Recognized by the ICAO:

1st freedom: the right to overfly a country without landing (for example: Singapore Airlines from the United States to Singapore, overflying Russia)

2nd freedom: the right to stop in a country for refueling without transferring payload (for example: Airblue, from the UK to Pakistan via Turkey for refueling)

3rd freedom: the right to carry payload from one’s country to another (for example: Air Canada flying from Canada to China)

Terms


4th freedom: the right to carry payload from another country to one’s own (for example: Air Canada flying back from China to Canada)

5th freedom: the right to carry payload from one’s country to another, then on to a third one (for example: Jet Airways, an Indian airline, from India to Belgium then on to Canada)

The following are not recognized by the ICAO but often mentioned as “so-called” freedom rights:

6th freedom: the right to carry payload from one country to one’s own, then on to a third one.

Terms


7th freedom: the right to carry payload between two foreign countries as a stand-alone service (for example: BA, a British airline, from France to the United States)

8th freedom: the right to carry payload within a foreign country, as part of a flight originating/terminating in one’s own country (for example: Qantas from Australia to a US city, then on to a second US city) – also known as consecutive Cabotage

9th freedom: the right to carry payload within a foreign country as a stand-alone service (for example: a hypothetical New Zealand airline flying between two cities in Australia) – also known as standalone Cabotage

Terms


FOD Foreign object damage.

Fractional ownership Where a customer buys a ‘time share’

General Aviation Manufacturers Association (GAMA) A trade body representing over 60 manufacturers of general aviation aircraft, parts and components.

HDD Heads Down Display – a flat panel cockpit or electronic flight bag

HUD Heads Up Display – a display system in the cockpit that shows what is going on, on the window of the cockpit

Terms


Maximum take-off weight (MTOW) The maximum weight than an aircraft at sea-level can weigh at take-off.

MRO Maintenance and Repair / Overhaul Organization

OEM Original equipment manufacturer (an aircraft, engine or helicopter manufacturer).

Operating lease An operating lessor owns the aircraft or helicopter and leases it to the operator. Similar to the concept of car hire leases are typically one to five years.

Terms


Put option The right to force someone to buy something back at a set price. Fractional ownership deals typically give owners the right to sell their share back at the end of a lease.

Service Bulletin (SB) With increasing in-service experience, the type certificate holder (manufacturer) may find ways to improve the original design resulting in either lower maintenance costs or increased performance

Sweetheart deal or Sweetheart lease Where a manufacturer or lessor enters into a deal that is very attractive for the client. Sweetheart deals are common when manufacturers are trying to break into a market like China.

Terms


TAWS Terrain awareness and warning system.

TCAS Traffic alert and collision avoidance system.

TODA Take-off distance available.

TORA Take-off run available

Transponder. A transmitter and Responder for identification of aircraft – Squawk mode A or C for altitude to help identification for Air Traffic Controllers. IFF is for military – Identification of Friend or Foe.

Terms


ULD Unitary load device (baggage/cargo container).

VHF Very high frequency.

UHF Ultra High Frequency

XR / ER Extra range.

ZT Zulu time (=GMT, UTC)

Terms

aviation business overview 5

Education

aircraft operator

aircraft owners

aircraft flies

airworthy aircraft

acars aircraft communications

certificate of airworthiness

operating lease

supplemental type certificate