What Is the Aviation Industry?
The term ‘aviation’ is most commonly used to describe mechanical air transportation, which is carried out using an aircraft. The two main aircraft types are airplanes and helicopters, but most modern definitions of the word ‘aviation’ extend beyond this to include unmanned aircraft, such as drones.
With this in mind, the aviation industry can be described as all the industries that surround these activities.
The Difference Between the Aviation Industry and the Airline Industry
The terms ‘aviation industry’ and ‘airline industry’ are sometimes thought of as being interchangeable, but they do actually describe different things. An airline is a business offering air transportation services for people or cargo, with the airline industry being the collective term used to describe these companies.
However, the airline industry forms just one part of the wider aviation industry. In addition to airlines, the aviation industry includes aircraft manufacturers, researchers, air safety specialists, businesses involved with military aviation, and, increasingly, companies that design, produce, and/or use drones.
Why Is the Aviation Industry Important?
The importance of the modern aviation industry is difficult to overstate. Still, one of the main reasons
for this importance is the globalized nature of the industry, helping to connect different continents, countries, and cultures. As a result, global aviation has been key in facilitating efficient travel to distant places, enriching many lives in the process.
The aviation industry has also been a key contributor to global economic prosperity, not only because the tourism industry boosts local economies but also because it has allowed for improvements to global trade.
Meanwhile, the aviation industry also directly provides millions of jobs for people around the world, with examples including everything from pilots and cabin crew to air traffic controllers and aerospace engineers. On top of this, the aviation industry has helped to create many jobs in the wider travel and tourism industry too.
Table: Importance of Aviation Industry to Various Industries
Civil & Military Aviation
The aviation sector has two main flight categories: civil and military. In simple terms, civil aviation
refers to all aviation that is not connected to the military. This includes private and commercial air travel, regardless of whether flights carry passengers, cargo, or a combination of the two.
By contrast, military aviation refers to the use of aircraft within military settings. This air transportation is typically designed to enable aerial warfare or perform surveillance operations. The majority of military aviation is related to air forces. However, the concepts of army, navy, and coast guard aviation also exist.
While the categories of civil and military aviation are distinct in most ways, there is a degree of cross-over too. For instance, some airports worldwide help facilitate civil and military aviation, while certain businesses within the aviation industry cater to civil and military aviation clients.
3 Large Aircraft Manufacturing Companies Within the Aviation Industry
Aircraft manufacturing is crucial to the aviation industry, and the following three companies are among the largest:
Within the Aviation industry, Airbus is a large European aircraft manufacturing company that produces aircraft for both the civilian and military aviation markets. Most of its production facilities are in France, Germany, and Spain, while its headquarters is in the Netherlands. It is currently the world’s largest airline manufacturer, while the Airbus A380, used by airlines like Emirates and Lufthansa, is recognized as the world’s largest passenger airliner.
Another large manufacturing company within the aviation sector is Boeing. Based in the United States, Boeing is generally classed as the second-largest airline manufacturer, as well as one of the largest defense contractors in the world. The company headquarters is situated in Chicago, Illinois. In addition to producing commercial and military jets, Boeing is also heavily involved in manufacturing spacecraft. Some of its best-known commercial airplane models include the Boeing 737, the Boeing 747, and the Boeing 777.
Lockheed Martin has its headquarters in Maryland, in the United States. Within the aviation industry, Lockheed Martin is recognized as the world’s largest defense contractor, specializing in military aviation and producing fighter and reconnaissance aircraft for air forces worldwide. The company was formed through a merger between Lockheed Corporation with Martin Marietta, and some of its best-known airplanes have included the F-16 Fighting Falcon and the F-35 Lightning II.
4 Main Business Models for Airlines
. Full-Service
Full-service carriers are often either former state-owned flag carriers, which have since been privatized, or airlines that are still under state ownership. However, this is not always the case in all parts of the world. Instead, the defining characteristic is the provision of a full range of services, which are included with the price of a ticket.
This means passengers receive their baggage allowance and any in-flight meals at no additional cost. Most full-service carriers have a customer loyalty scheme, rewarding frequent flyers, while lounge services at airport hubs may also be on offer. Examples include American Airlines, Emirates Airlines, and British Airways.
Low-Cost
As the name suggests, the low-cost model is based on the idea of reducing operating costs and selling airline tickets based on the appeal of a lower price. To provide these lower prices, however, many of the additional services included with the price of a full-service airline ticket are either not offered or sold as optional extras.
In-flight meals are not included with the ticket price, with food and drink sold separately on the flight, often above standard market value. Passengers will also typically pay extra for baggage and may not book a specific seat on the plane, choosing seats when they board instead. Examples include Ryanair and Southwest Airlines.
3. Charter
The charter business model tends to be focused very strongly on seasonal tourists. Rather than selling individual airline tickets to passengers, charter airlines will generally enter into a working relationship with appropriate travel agencies, travel management companies, and tour operators, who then fill the planes.
This means that a charter airline will operate services to destinations with significant demand, and travel agents will try to book as many people on those flights as possible. One of the most notable examples of a charter airline is TUI Airways. In terms of services, they sometimes offer a middle ground between full-service and low-cost models.
4. Cargo/Freight
Lastly, cargo/freight airlines primarily or exclusively involve transporting goods via the air. These flights are often scheduled overnight. Some companies are solely focused on transport from one airport to another, while others are actively involved in the subsequent movement of goods across land.
Well-known carriers that are exclusively focused on cargo and freight include UPS Airlines, FedEx Express, and DHL Aviation. However, some of the largest cargo airlines in the world are subsidiaries of airlines that also offer passenger services. Examples of this include Emirates SkyCargo, Delta Air Freight, and China Cargo Airlines