What type of organization is an airline?


What type of organization is an airline? American Airlines, like most other airlines, operates with both a hierarchical and a functional organizational structure whereby management is organized from the top down, with certain specialized departments or divisions based on the different functions of the business.


What type of industry is the aircraft industry?

The aerospace industry encompasses the manufacture of a wide range of aircraft and spacecraft products (including passenger and military aeroplanes, helicopters, and gliders, as well as spacecraft, launch vehicles, satellites, and other space-related items).


Are airlines part of the tourism industry?

Aviation is the backbone of the tourism industry.


What type of organizational structure does an airline have?

The typical organizational structure of an airline includes operations, maintenance, marketing, and finance divisions. The operations division manages the day-to-day activities of the airline, overseeing the pilots and flight attendants, the flight dispatchers, flight scheduling, and ground crews.


What are the characteristics of airline industry?

The airline industry has three key characteristics. First, the demand for air services, whether for passengers or freight, is a derived demand. Second, the product is very homogenous and, third, it cannot be stored.


What are the key factors of airlines?

Several factors can affect an airline's operating costs, including:
  • fuel prices.
  • competition.
  • economic conditions.
  • the regulatory environment.
  • technological advances.