AIRLINE MANAGEMENT AND ORGANIZATION:

The process of achieving an organization's goals through the coordinated performance of

tasks and activities by individuals and groups is known as management. This revision
emphasizes that management involves not only coordinating performance but also includes
tasks, activities, and the involvement of individuals and groups. Management encompasses
planning, organizing, directing, and controlling resources (including people) to achieve
organizational objectives. The formal structure of an organization is shaped by the official
relationships and positions represented on an organizational chart, along with those specified
in job descriptions. This structure functions as a plan to synchronize capital and labor efforts
towards the attainment of shared objectives. Airline and airport management is the
administration of airports and airlines. It includes the activities of setting the strategy of
airports to gather and provide information on airline commercial and operational priorities. It
covers a broad overview of the airline management. It is also studied as a branch of study that
teaches management of airport and airlines. This provides a broad overview of the airline
industry and creates awareness of the underlying marketing, financial, operational, and other
factors influencing airline management. This study provides information on airline
commercial and operational priorities, along with teaching the key characteristics of aircraft
selection and the impact of airport decision-making.
In airline companies, various directors establish and manage the management organization.
The board of directors of an airline is the primary decision-making body responsible for the
strategic management and overall performance of the airline company. The general duties of
the airline board of directors may include:
Strategic Planning:
- Setting long-term strategic goals for the airline.
- Analyzing future opportunities and threats by assessing market conditions.
Management Selection and Oversight:
- Selecting and appointing top executives (CEO, CFO, etc.).
- Evaluating management performance and making corrective measures when
necessary.
Financial Management:
- Monitoring and evaluating the financial status of the company.
- Planning budgets and determining financial strategies.
Risk Management:
- Assessing and managing operational, financial, and other risks.
- Being prepared for and managing critical situations.
Legal and Ethical Compliance:
- Ensuring compliance with relevant legal regulations.
- Adhering to ethical standards and corporate social responsibility principles.
Monitoring the Aviation Industry:
- Keeping track of developments in the aviation industry.
- Strengthening the company's position through competitive analysis.

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Stakeholder Relations:
- Maintaining effective communication with shareholders, customers, employees, and
other stakeholders.
- Preserving and enhancing the company's reputation.
Strategic Partnerships and Mergers & Acquisitions:
- Establishing strategic partnerships and evaluating potential mergers or acquisitions
based on opportunities.

Top Management: The President, Executive Vice President, General Management and Senior
Vice President. The goal is to determine the broad objectives and procedures necessary to
meet the goals established by the board of directors. The top management of an airline
represents the primary executive team responsible for the strategic management and overall
performance of the airline company. The general duties of airline top management may
include:
Strategic Management:
- Setting long-term strategic goals for the airline.
- Developing strategies to gain a competitive advantage by evaluating market
conditions.
Financial Management:
- Monitoring and evaluating the financial status of the company.
- Formulating budgets and determining strategies to improve financial performance.
Operational Management:
- Ensuring effective management of airline operations.
- Setting operational goals such as flight safety, on-time departures, and arrivals.
Personnel Management:
- Creating and implementing personnel policies.
- Providing training programs and career development opportunities.
Customer Relations:
- Developing strategies to enhance customer satisfaction.
- Assessing customer feedback and improving service quality.
Airline Relations:
- Managing relationships with business partners and other airline companies.
- Evaluating strategic collaborations such as codeshare agreements.
Crisis Management:
- Being prepared for emergencies and crisis situations.
- Developing and implementing crisis communication strategies.
Technological Innovation:
- Keeping abreast of technological developments in the aviation industry.

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 - Determining strategies for innovation and digitalization.

Middle Management: Responsible for developing operational plans and procedures to

implement the borader ones conceived by top management.

Operating Management: Lowest level of management. This includes Managers, Assistant

Managers, Section Chiefs, General Supervisors, and Supervisors. The goal at this level is to
put operational plans devised by middle management into action. Generally, these tasks may
encompass:
Flight Operations:
- Creating and implementing flight plans and schedules.
- Coordinating flight crews and aircraft operations.
Air Traffic Management:
- Monitoring and coordinating air traffic.
- Planning landing and takeoff procedures.
Maintenance and Technical Operations:
- Managing aircraft maintenance and technical processes.
- Supervising technical teams and maintenance procedures.
Ground Services:
- Organizing passenger transportation services and ground operations.
- Managing baggage processes and ground service operations.
Security Management:
- Implementing airline security standards.
- Developing and implementing flight safety procedures.
Operational Performance Monitoring:
- Monitoring performance and operational data for flights.
- Evaluating opportunities for improvement to enhance efficiency.
Emergency and Crisis Management:
- Creating and implementing emergency plans.
- Providing quick and effective responses during crisis situations.
Personnel Management:
- Managing operational teams.
- Providing training and development opportunities.

These four management teams constitute the cornerstone that keeps airlines operational.

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INCOME AND EXPENSES OF AIRLINE COMPANIES:
The airline business is both intricate and ever-changing, involving numerous ways of making
and spending money. Airlines need to manage various financial aspects effectively in order to
keep their operations running smoothly and stay ahead in the competition.

Revenue Components:
Ticket Sales: One of the primary revenue sources for airline companies is ticket sales.
Different classes and service levels offered to passengers can significantly impact the
company's revenue.

Ancillary Services: Additional services provided to passengers help diversify the revenue
streams for airline companies. Extra baggage fees, cabin upgrade options, and special food
and beverage services are examples of ancillary services that can boost company revenue.

Cargo Transportation: In addition to passenger transport, airlines generate revenue from

cargo transportation. Especially on international flights, cargo transportation can be a
significant income source.

Loyalty Points: Airlines distribute a currency called airline miles through loyalty programs,
which are under their control. These efforts have led airlines to consider these programs as
their most valuable assets. This was particularly evident in their 2020 financial statements
when seeking emergency loans during the pandemic.

Expenditure Components:
Fuel Costs: One of the largest expenditure items for airline companies is fuel costs.
Fluctuations in jet fuel prices directly affect the operational costs of airlines. Some of the
worst times for airlines have been when oil prices spiked up. Airline companies can prepare
for slowly rising prices by charging more for tickets or by reducing the number of flights, but
sudden moves in fuel prices lead many airlines to lose money.

Personnel Expenses: Personnel costs for pilots, cabin crew, maintenance staff, and other
support units constitute a significant expense. Salaries, training expenses, and employee
benefits fall under this category. During downturns, management looks to cut labor costs by
laying off workers or reducing their pay or benefits. This is a consequence of being in a
competitive business where customers have little brand loyalty airlines generally have to
compete on price rather than quality. Since growing profits is difficult, companies are forced
to cut costs to be more profitable.

Aircraft Leasing and Maintenance: Airlines often lease aircraft and cover regular
maintenance costs. Using modern and fuel-efficient aircraft, as well as minimizing
maintenance expenses, is crucial for financial sustainability.
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Airport Fees: Landing, takeoff, and parking fees, as well as passenger service charges,
contribute to the overall expenses of airline companies.

Marketing and Advertising: In an industry characterized by intense competition, marketing

and advertising expenses play a crucial role. Airlines invest in these areas to increase brand
awareness and attract new customers.

These revenue and expenditure items collectively shape the intricate financial structures of
airline companies. Focused on maintaining a delicate balance, airlines continually strive to
enhance operational efficiency and navigate through the ever-evolving dynamics of the
industry.

REFERENCES:
https://investor.turkishairlines.com/en/turkish-airlines/organizational-chart

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https://prezi.com/hlal-opcybvj/airline-management-and-organization/
https://www.statista.com/statistics/591285/aviation-industry-fuel-cost/
https://simpleflying.com/most-important-airline-income-streams-list/#cargo-operation-
revenue
https://www.investopedia.com/ask/answers/040715/what-are-major-expenses-affect-
companies-airline-industry.asp
https://en.wikipedia.org/wiki/Airport_and_airline_management