Ch1
The State Department negotiates treaties/ air transport
agreements between the U.S. and other foreign countries
• Multilateral Air Service Agreements
Agreements negotiated between multiple
countries
• Once negotiated these treaties must be
Approved and executed by the President and
Ratified by the Senate
When Should You
Contact Your FSDO
Office?
• Questions about Airmen & Aircraft
Regulations
• Airmen certification for pilots,
mechanics, dispatchers, etc.
• To report low-flying aircraf
Pilot’s Bill of Rights
Written notification is required to be provided to individuals who are
the subject of an investigation relating to the approval, denial,
suspension, modification, or revocation of an airman certificat
Definitions of Profit
Reward for Effort
Reward for Risk
Return on Investment
Profit to Sales Ratio
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The Department of
Transportation issues foreign air
carrier permits to foreign airlines
designated by their country to
provide service to the U.S. in
accordance with the treaty
The President can
disapprove the permit, but
only for foreign relations or
national defense reasons
Permits can also be
withdrawn or suspended
due to U.S. foreign policy
What Actions Can the FAA Take
Against You?
Administrative Dispositions (Think “dispose”)
Warning Notices
No Response necessary – maybe consider filling out a form via the FAA’s
Aviation Safety Action Program (ASAP) and Aviation Safety Reporting
System (ASRS)
Letter of Correction
Used if problem was rectified on sight, or
Issue an order for remedial training (depending on circumstances)
These go on your record for 2 years
The Need for Marketing in Aviation
Desired fuel is not available
Lack of personnel and services offered
And so on...
The entire business strategy must hinge upon anticipated sales
In order to:
Gain money to run the business
Make improvements
To expand
Reward for Risk
Reward for the risk of entrepreneurship
Higher or lower risks made with one’s own money
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Open Skies Agreement
Designed to eliminate Government
interference in commercial airline decisions
about routes, capacity and pricing
Certificate Action by the FAA
Individual considerations
The degree of the hazard
Nature of the violation
Violator’s previous record
What is Marketing in Aviation??
As the industry and diversified and become more competitive, this sub-field has
likewise become more sophisticated, effective, and important
Aviation and Aerospace companies today need to highlight their accomplishments,
distinguish themselves from competitors, target potential customers, partners, and
investors accurately, and build enduring brands that people trust, often with their
personal safet
Return on
Investment
Net Profit divided by the cost of the
investment or equity
Net Profit ($5) and Equity ($100) the
ROI would be 5% (5/100 = 5%)
This ratio indicates the organization’s
net profit in relation to dollars invested
The intent is that the business owner gets
a similar amount of return as investing
externally, if not better via this method
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International Air
Transport Association
• Trade Association for International Airlines
• Assists in making connection flights between
airlines
• Training for airline and airport management
(Aviation Law, Aviation Security, Pilot Selection, Crew Resources,
Airport Planning)
• Lobbying in support of airline operations
• Publish useful reference works
FAA Action Philosophy
Compliance Program (NEW)
Under the Compliance Program, the goal is to achieve rapid
compliance, to eliminate a safety risk or deviation, and to ensure
positive and permanent changes
Nature of Market Research in Aviation
In general, the money was extracted/spent:
Discretionary income rose
Consumer spending rose
Many new products and services rose
The aviation market is similar yet heavily influenced by industry specific factors
FBO Managers must focus on the factors impacting growth of General Aviation
Profit Objectives
Profit Maximization
Satisfactory Profit
Non-Momentary Profit
Hobby/Business
Social Responsibility
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Federal Trade
Commission
Stop anticompetitive practices such as
airline and manufacturer mergers that
reduce competition, and collusion in
price fixing
Collusion: a secret agreement
especially for fraudulent purposes
that limits open competition (i.e.. Price
fixing, kickbacks, etc.)
FAR
Violations
Accident investigation
Base inspections
Airport surveillance (i.e. Ramp
checks)
Air Traffic Controllers
General Public (3rd largest source)
Fractional Ownership of Aircraft
Who uses these Fractional companies or ownerships?
Smaller Corporations closing their individual flight departments
Business people who are now realizing the benefits of private GA
transportation
Frequent charter fliers altering their method of GA transportation
Realizing Profit
Planning
Marketing Orientation
Information System Design
Records
Depreciation Practices
Inventory
Bad Debts
Managerial Decisions
Cash Flow
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Pam