Understanding the Structure of the Aviation Industry

When you first think of the aviation industry, you might picture airports brimming with travelers, bustling airlines, and the ever-dynamic roles of pilots and flight attendants. However, as I discovered on my own journey, the aviation market is far more intricate and is composed of a wide variety of players, each performing crucial functions. To give you a clearer picture, I would like to present an overview of aviation activities and their hierarchy. I believe that such an overview with help you to better understand the employment opportunities that the aviation market can present. 
aviation industry
airline
airport
general aviation
ICAO
Author

Olesia Wais

Published

August 20, 2023

When you first think of the aviation industry, you might picture airports brimming with travelers, bustling airlines, and the ever-dynamic roles of pilots and flight attendants. However, as I discovered on my own journey, the aviation market is far more intricate and is composed of a wide variety of players, each performing crucial functions.  

To give you a clearer picture, I would like to present an overview of aviation activities and their hierarchy. I believe that such an overview with help you to better understand the employment opportunities that the aviation market can present. 

Aviation activities can broadly be categorized into two spheres: military and civil. The realm of civil aviation encompasses a myriad of services such as commercial air transport services, general aviation, airport services, air navigation services, and civil aviation manufacturing. It also includes the provision of aviation training, maintenance and overhaul, regulatory functions, as well as a host of other activities that are yet to be defined. The International Civil Aviation Organization, the governing body of the United Nations regarding aviation, established the structure of civil aviation activities, as shown below.

Commercial air transport services

Along with airport services commercial air transport services are the part of the aviation market that passengers are most familiar with. Commercial air transport services are available to the general public for the transportation of passengers, mail, and/or freight for remuneration. The services are provided by commercial air transport operators, from small-scale operators, such as air taxis and commercial business operators, to the largest airlines on the market.  The scheduled part of commercial air transport is represented by airlines, which can be classified into: 

  • Full Service Network Carrier (FSNC): These are large companies that operate on an international scale, offer a variety of classes of service, and employ a hub-and-spoke network system. Prime examples of such carriers are Delta Airlines, British Airways, and Lufthansa AG.
  • Regional airlines: These primarily serve specific regions within a country. They serve the role of feeder flights for Full Service Network Carriers. They operate as a part of the FSNC or based on codesharing agreements. They are the most prevalent in USA and EU. Notable examples include Lufthansa CityLine, Loganair, Horizon Air, and Envoy Air.  
  • Low-cost carriers (LCC): These airlines offer simple products, and point-to-point service, operate on popular tourist routes, and prioritize affordability. The most recognizable are Southwest and Ryanair.

The non-scheduled part of commercial air transport is represented by carriers that offer charter and on-demand transportation without a stable schedule. These are charter flights and, special and inclusive tour flights, other than those reported under scheduled flights, performed for remuneration on an irregular basis including empty flights, air taxi operations, commercial business flights, and blocked-off charters. 

The most well-known part of non-schedule commercial air transport is charters. Charters are essentially air travel services that are not part of the regular flight schedule of any airline. These services are usually hired by individuals or groups for specific purposes, such as group travels, emergency cases, or even transporting goods. The key feature of charter services is their flexibility, which allows customers to choose their own flight times, destinations, and other parameters. Ofter charter airlines cooperate with travel agencies, in which case the flight is part of a bundle deal with accommodation and transportation on sight. Other times charters operate as a part of the national airline and serve its tourist-oriented routes.

Air taxi operations are on-demand, non-scheduled flights on short notice for carriage by air of passengers, freight or mail, or any combination thereof for remuneration usually performed with smaller aircraft including helicopters (typically no more than 30 seats). 

Commercial business flights. These operations involve the use of aircraft by companies for various purposes that support their business. The primary function is the carriage of passengers or goods, which falls under the broader scope of their operations. Additionally, these aircraft are also available for whole aircraft charter, which means they can be hired in their entirety for specific flights. Here, the flying duties are carried out by professional pilots who the aircraft’s owning company employs.  

General Aviation (GA)

GA is diverse, covering a wide range of activities, from private flying for leisure to corporate business travel, flight training, agricultural aviation, light cargo, and emergency services. It’s a vibrant, dynamic sector that contributes substantially to the economy and provides valuable services to society. It’s interesting to note that the lion’s share of the world’s air traffic falls under the umbrella of General Aviation. In fact, the majority of the world’s airports cater exclusively to this sector.  

The main components of General Aviation include non-commercial business aviation, aerial work, instructional, and pleasure flying. 

Non-commercial business flights include the non-commercial operation or use of aircraft by a company for the carriage of passengers or goods as an aid to the conduct of company business, flown by a professional pilot(s) employed to fly the aircraft. It also includes owner-operated business flights.

Aerial work is a vast and diverse part of GA. it is an aircraft operation in which an aircraft is used for specialized services such as agriculture, construction, photography, surveying, observation and patrol, search and rescue, aerial advertisement, etc.

Instructional flying is defined as the use of an aircraft for purposes of formal flight instruction with an instructor. The flights may be performed by aero clubs, flying schools, or commercial operators. All flight schools and training facilities that offer licenses and certifications to aspiring pilots and aviation professionals are part of GA.

Pleasure flying is defined as the use of an aircraft for personal or recreational purposes not associated with a business or profession. 

When it comes to General Aviation, the variety of aircraft available is truly fascinating. The skies are filled with everything from light and ultra-light aircraft to sport aircraft and homebuilt aircraft. You’ll also find business aircraft such as private jets, along with gliders and helicopters. 

Airport services

Airports serve as the physical infrastructure necessary for aviation. They provide runways for takeoff and landing of airplanes, terminals for passengers, and hangars for aircraft maintenance. Airports generate revenue through fees charged to airlines and passengers, retail outlets, parking, and more. 

An airport is a defined area on land or water (including any buildings, installations, and equipment) intended to be used either wholly or in part for the arrival, departure and surface movement of aircraft. Depending on their purpose, size, and available infrastructure there are different types of airports in use. 

On the primary level airports can be divided into commercial service airports and General Aviation airports. Airports for commercial use are the ones that have scheduled passenger/cargo services and are used for domestic and international flights. They have the infrastructure needed to receive large passenger and cargo aircraft. General Aviation airports do not have scheduled service and their infrastructure is enough to accommodate the traffic under the umbrella of General Aviation. Although, there are distinguished airports only for General Aviation often commercial service airports accommodate General Aviation traffic too. 

Commercial service airports can be categorized into three main types: 

1. International airports: These are airports equipped to handle large-capacity, long-distance flights to various countries. They are typically fitted with customs and immigration facilities to manage international passenger traffic. Some of the most recognized international airports include Hartsfield-Jackson Atlanta International Airport, Beijing Capital International Airport, and Dubai International Airport. 

2. Domestic airports: These airports are designed to handle traffic within the same country. They lack customs and immigration facilities since all flights are local. An example of a prominent domestic airport is Congonhas-Sao Paulo Airport in Brazil. 

3. Regional airports: These are smaller airports that serve a specific region or community. They usually have shorter runways and handle less passenger traffic compared to international and domestic airports. Aspen/Pitkin County Airport in Colorado, USA is an example of a regional airport. 

Air navigation 

In my years of involvement in the aviation industry, I’ve come to understand the critical role air navigation plays in the entire ecosystem. This isn’t simply about charting a course from point A to point B, but a complex ballet of safety measures, regulatory compliance, and technological innovations that ensure the smooth movement of aircraft across the globe.

Air navigation services include air traffic management (ATM), communications, navigation and surveillance systems (CNS), meteorological services for air navigation (MET), search and rescue (SAR) and aeronautical information services (AIS). Such services are available to air traffic during all phases of operations (approach, aerodrome and en route). These services are provided by an independent entity established for the purpose of operating and managing air navigation services and empowered to manage and use the revenues it generates to cover its costs. 

Civil aviation manufacturing 

Aircraft manufacturers play a critical role in the aviation industry. Companies like Boeing and Airbus design and build the planes that airlines fly. They’re also responsible for ongoing maintenance and safety updates. 

The main engine manufacturers for the aviation industry are General Electric, Rolls-Royce, and Pratt and Whitney. 

Aviation Training 

One of the key elements in the structure of the aviation industry is the sector pertaining to training. This covers a broad spectrum of professionals integral to the functioning of the industry. Examples include:  

  1. Licensing flight crew members, such as pilots, flight engineers, and flight navigators,
  2. Air traffic controllers,
  3. Aeronautical station operators,
  4. Maintenance technicians
  5. Flight dispatchers.
  6. And other.

Training on different levels of the aviation industry is crucial to ensure the main goal of air transportation - safety. 

Maintenance and Overhaul

Maintenance and overhaul are aspects of the aviation industry that are usually hidden from passengers. They ensure the safety and efficiency of aircraft, protecting not only the passengers but also the reputation of airline companies. 

Maintenance involves regular and routine checks of aircraft to ensure they are in good working condition. It is the performance of tasks required to ensure the continuing airworthiness of an aircraft, including any one or combination of overhaul, inspection, replacement, defect rectification, and the embodiment of a modification or repair.

While maintenance involves routine checks and minor repairs, overhaul refers to the process of taking an aircraft apart for thorough inspection, repair, and replacement of parts. Essentially, it’s like giving the aircraft a complete makeover.

Regulatory functions

Then, there are the regulatory bodies. Their role is to regulate and oversee the industry to ensure safety and fair practices. On the international level, a prominent example is International Civil Aviation Organization (ICAO). ICAO is a United Nations agency, established to help countries as they cooperate to adopt standards, practices, and policies for international civilian flight.

On a regional level, a good example is European Union Aviation Safety Agency (EASA). As an independent and neutral body, EASA ensures confidence in safe air operations in Europe and worldwide by proposing and formulating rules, standards, and guidance; by certifying aircraft, parts, and equipment; and by approving and overseeing organizations in all aviation domains.

On a national, level civil aviation authority is responsible for implementing policies on civil aviation. The main goal of such an organization is to ensure safe, economical, and efficient air travel. In Poland, the agency is under the Ministry of Infrastructure and Development, but in the UK it is nestled under the Department of Transport. 

Conclusions

Now that you have a basic understanding of the structure of the aviation industry, you’ll be better equipped to navigate this complex field. Whether you’re contemplating a career move or simply curious, gaining insight into this industry can be incredibly beneficial.

In the complex world of aviation, information is power. As a young professional, understanding the structure of the industry, from commercial business flights to the roles of various players, will equip you with the knowledge you need to navigate this dynamic industry.

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