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Express One International

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By Adelinda Simon. Type of airline. Published at Saturday, March 23rd, 2019 - 16:59:09 PM.

In view of the congestion apparent at many international airports the ownership of slots at certain airports (the right to take-off or land an aircraft at a particular time of day or night) has become a significant tradable asset for many airlines. Clearly take-off slots at popular times of the day can be critical in attracting the more profitable business traveler to a given airline s flight and in establishing a competitive advantage against a competing airline.

Airline financing is quite complex since airlines are highly leveraged operations. Not only must they purchase (or lease) new airliner bodies and engines regularly they must make major long-term fleet decisions with the goal of meeting the demands of their markets while producing a fleet that is relatively economical to operate and maintain; comparably Southwest Airlines and their reliance on a single airplane type (the Boeing 737 and derivatives) with the now defunct Eastern Air Lines which operated 17 different aircraft types each with varying pilot engine maintenance and support needs.

The options facing those charged with responsibility for guaranteeing the general flying population that they can fly without fear of terrorism is either to fix the problems in the existing system or create a new security strategy.

So regulated had the environment been in fact that an airline often had to resort to the purchase of another carrier just to obtain its route authority. Delta Air Lines for example long interested in providing nonstop service between New York and Florida continually petitioned the CAB for the rights. But the regulatory agency felt that Northeast a small local service carrier often plagued by low traffic financial loss and bad weather because of its route system needed the lucrative Florida route s revenue potential to boost it back to health and granted it the authority instead.


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