Organization The orchestration of a given airline depends upon the role or niche of the airline, the type of aircraft as well as the scale and scope of the business. Doubtless, there are many alternatives with the key being to get the job done with everyone singing from the same song sheet.
Flight Operations The above example outlines six departments including Flight Operations . This is pilot country and is all about flight safety balanced with the best use of a very valuable resource. To achieve this involves a complicated process of training, test rides, route checks and audits.
Inflight is often part of Flights Ops ,with the focus being the passenger cabin rather than the flight deck. The FA’s contribution to cabin safety and customer loyalty is critical.
Information Services The Ops planning process involves all departments on an iterative basis and in co-lead by Information Services, or IS. Charged with the capture and processing of data, IS must ensure that departments are solidly plugged into the planning and control process.
Operational Control Work rules for aircrew are complex involving much more than the number of hours flying per month or per day. Typically pilots and flight attendants , in addition to actual flying time, get financial credits for the length of the duty day, time away from home; time spent standing by to fly, etc., etc. In addition, aircrew must undergo periodic testing and training. 
To handle this complex task, airlines have developed sophisticated crew planning procedures. This process, sometimes called rostering, employs specially trained people, called Crew Planners, who are devoted to meeting the needs of the flight schedule while trying to keep the aircrew happy and productive.
The task of System Operations Control or SOC is to control all aspects of daily operations. Included in SOC teams are Dispatchers, Crew Schedulers, Maintenance Controllers, and Passenger Handling Specialists. The team is directed by a senior person, who is normally called the Duty Ops Manager or Duty Controller.
Crew Schedulers deal with daily crew matters on a day to day basis looking after flying time limits, book-offs, reserve crew status, accommodation and ground transportation etc. Diplomacy and good humour is needed in this job for it often involves waking people in the middle of the night to tell them to forget about that day off and get to work ASAP.
A Maintenance Controller works in SOC and deals with the aircraft side of the equation involving such things as aircraft inspection requirements, overnight support and aircraft serviceable. This often calls for a complex juggling and resorting of aircraft locations, all done in close co-ordination with the rest of the SOC team.
In many SOC units, the team includes a Passenger Service Specialist who looks after the interest of passengers. Things like re-booking cancelled flights, lost bags, complaints and other passenger related issues are the focus in this area. Most passengers are quite tolerant of occasional problems but these nice people will quickly grow hostile if the airline doesn’t let them know what is happening or fails to deal with the problem in a timely and orderly manner.
The Dispatcher plans each individual flight taking into account the weather, the loads, and the aircraft status, For every crew pair the Dispatcherprepares and issues a Flight Release. This document provides the key information needed to complete the trip. Once the release is passed to the crew, the Dispatcher proceeds to monitor, or follow, the flight’s progress. A typical flight release and what it contains is illustrated above.
The major challenge for SOC is dealing with IRROPS or irregular operations, which result from weather, aircraft or crew problems. These events require SOC to sort things out and come up with a revised plan in a hurry. Often during IRROPS, the resources of the airline are stretched to the limit. At such times, SOC is no place for the faint of heart. Indeed, IRROPs is an excellent test of managerial fitness.
Technical This group’s task is job is to keep the aircraft fleet serviceable and flying in a safe and efficient manner. Typically most of the technical group work at the airline’s main base where major maintenance work and aircraft modifications are done. Often smaller technical units are set up at airports where aircraft are parked overnight.
Aircraft ownership costs never stop but revenue is generated only when the aircraft is flying . Hence high daily aircraft utilization is one of the keys to economic success. Consequently the aircraft must be highly reliable and avoid unplanned downtime.
To pull this off, requires a particular maintenance philosophy wherein the status of all components on all aircraft are continuously monitored and recorded on an on going basis. Trends are identified and analyzed and the time to change components is pinpointed. If this task is done effectively, unexpected aircraft breakdowns will be very few .
An important part of the process is the provision of adequate spares with the trick being to replace the part before it causes a breakdown of service. Aircraft parts are made of the highest quality material and are carefully controlled; consequently they are very expensive. Often an airline will have a spares inventory that is worth 10% of the value of the entire aircraft fleet. This may seem excessively costly but breakdowns cost far more.
The Technical department also manages overhauls. Some components, including engines, generators and pumps are overhauled and used again rather than being simply replaced. The airline often outsources overhauls and other functions including cleaning and grooming, fueling, and security. However notwithstanding the use of third parties, the airline remains fully responsible for satisfying all safety standards.
Commercial Services looks after scheduling, pricing, promotion and distribution which includes sales and reservations. In many airlines it also looks after station and airport operations.
Traditionally airlines have used mainframe computer reservation systems (CRS) to keep track of bookings and seat inventory as well as distributing information on fares and schedules. Fares are constantly changing in response to market demand or competitive pressure. The typical airline distribution chain is illustrated above. Getting a ticket into the hands of a customer involves a convoluted task that includes many players. In recent years the internet and internet based ticketing “engines” are displacing traditional reservation systems
The yield or revenue management chore involves the control of the fare class seat allocation. This task is at the heart of modern airline economics for the sale of one or two more seats can make the difference between profit or loss. However too many cheap seats can reduce last minute availability for the all important business frequent flier. Nonetheless airlines will always make room for their best customers (i.e., the habitual business passenger or the ” road warrior”). If the flight in question is sold out, it will be overbooked to make room for the road warrior. Most of the time this works because a certain percentage of passengers will not show up. In the event that the flight does fill up, despite the fancy software, a discount class passenger is offered cash to give up his or her seat. This is called “denied boarding compensation” and it is standard industry practice.
Another job of the Commercial department is to examine each and every blip and bump in traffic to expose trends. Was it the typical variation (season, weekly or daily) or was it the competition, or was it the economy, or was it just the weather. The key test being how the actual load factor compares to the break –even load factor. This presents a clear and, sometimes, troubling picture for operating below the break -even load factor will burn cash at a scary rate.
Station Operations This task includes all aspects of the ground handling process and can involve upwards of 20% of all employees. This includes the work of Station Agentswho work inside the terminal building at the check in counters. Outside the terminal on the airport apron the team consists of ramp staff which includes various ground-handling specialists including baggage handlers, passenger handling clerks, caterers and fuelers.
Once again the “aircraft only makes money in the air” nostrum comes to the fore and time on the ground between flights must be kept to a minimum if the airline is going to make money. At the same time, there are lots of things to accomplish while the aircraft is on the ground and they must be done safely. Hence, the time allocated for the “turn-around” must be as fast as possible but it must also be effective. To satisfy these conflicting objectives, the best airlines have developed a highly choreographed ground act, which would do credit to a Marine drill team.
Finance and Administration This department provides specialists in several areas including Accounting and Human Resources. A very wide array of matters are in play here including all manner of financial matters and employee-related issues including recruiting, selection, legal, training and other employee support provisions including collective bargaining.
Finally, however well organized the organization may be, probably, the most important item is that nebulous thing called leadership. Airline history is full of examples of outfits that succeeded thanks largely to special people or, conversely, that failed for the want of leadership. What it takes to be a good airline leader is beyond the scope of this effort but integrity, enthusiasm, know-how and an ability to win the trust and confidence of all employees is a good start.