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Airline

Airline

:For other uses, see Airline (disambiguation). Airline (disambiguation), one of the UK's largest airlines.]] UK An airline is an organization providing aviation services to passengers and/or cargo. It owns or leases aircraft such as airliners with which to supply these services and may form partnerships or alliances with other airlines for reasons of mutual benefit.

Industry overview

The scale and scope of airline companies are from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes in various types. Airline services can be categorized as being intercontinental, intracontinental, regional or domestic and may be operated as scheduled services or charters. These variations in the types of airline companies,their operating scope,and the routes they serve,makes analysis of the airline industry somewhat complex. Nevertheless, some patterns have emerged in the last 50 years of experience:
- The general pattern of ownership has gone from government owned or supported to independent, for-profit public companies. This occurs as regulators permit greater freedom, in steps that are usually decades apart. This pattern has not been completed for all airlines in all regions.
- The demand for air travel services is derived demand. That is, it depends on other things: business needs for cargo shipments, business passenger demand, leisure passenger demand, all influenced by macroeconomic activity in the markets under study. These patterns are highly seasonal, and often day-of-week, time-of-day, and even directionally variable.
- Notwithstanding these demand patterns, the overall trend of demand has been consistently increasing. In the 1950's and 1960's, annual growth rates of 15% or more were common. Annual growth of 5-6% persisted through the 1980's and 1990's. Growth rates are not consistent in all regions, but certainly areas where deregulation provided more competition and greater pricing freedom resulted in lower fares and sometimes dramatic spurts in traffic growth. The U.S., Australia, Japan, Brazil, Mexico, and other markets exhibited this trend.
- The industry is cyclical. Four or five years of poor performance are followed by five or six years of gradually improving good performance. But profitability in the good years is generally low, in the range of 2-3% net profit after interest and tax. It is in this time that airlines begin paying for new generations of airplanes and other service upgrades they ordered to respond to the increased demand. Since 1980, the industry as a whole has not even earned back the cost of capital during the best of times. Conversely, in bad times losses can be dramatically worse.
- As in many mature industries, consolidation is a trend, as airlines form new business combinations, ranging from loose, limited bilateral partnerships to long-term, multi-faceted alliances of groups of companies, to equity arrangements between companies, to actual mergers or takeovers. Since governments often restrict ownership and merger between companies in different countries, we see most consolidation taking place within a country. In the U.S., over 200 airlines have been merged, taken over, or simply gone out of business since deregulation began in 1978. Many international airline managers are actively lobbying their governments to permit greater consolidation, in order to achieve higher economies of scale and greater efficiencies.

Early development of airlines in the U.S.

Following World War I, the United States found itself swamped with aviators. Many decided to take their war-surplus aircraft on barnstorming campaigns, performing acrobatic maneuvers to woo crowds. In 1918, the United States Postal Service won the financial backing of Congress to begin experimenting with air mail service, initially using Curtiss Jenny aircraft that had been procured by the United States Army for reconnaissance missions on the Western Front. The Army was the first to fly these missions, but quickly lost the contract when they proved to be too unreliable. By the mid-1920s, the Postal Service had developed its own air mail network, based on a transcontinental backbone between New York, New York and San Francisco, California. To supplant this service, they offered twelve contracts for spur routes to independent bidders: the carriers that won these routes would, through time and mergers, evolve into Braniff Airlines, American Airlines, United Airlines (originally a division of Boeing), Trans World Airlines, Northwest Airlines, and Eastern Airlines, to name a few. Passenger service during the early 1920s was sporadic at best: most airlines at the time were focused on carrying bags of mail. In 1925, however, Ford Motor Company bought out the Stout Aircraft Company and began construction of the all-metal Ford Trimotor, the first successful American airliner. With a 12-passenger capacity, it made passenger service potentially profitable. Air service was seen as a supplement to rail service in the American transportation network. At the same time, Juan Trippe began a crusade to create an air network that would link America to the world, and he achieved this goal through his airline, Pan American World Airways, with a fleet of flying boats that linked Los Angeles to Shanghai and Boston to London. Pan Am was the only U.S. airline to go international before the 1940s, and quickly became a symbol of the potential of the American airline industry. With the introduction of the Boeing 247 and Douglas DC-3 in the 1930s, the U.S. airline industry was generally profitable, even during the Great Depression. This trend continued until the beginning of World War II.

Early development of airlines in Europe

World War II in Southampton, and to Croydon Airport]] The first countries in Europe to embrace air transport were France, Germany and the Netherlands. France began an air mail service to Morocco in 1919 that was bought out in 1927, renamed Aéropostale, and injected with capital to become a major international carrier. In 1933, Aéropostale went bankrupt, was nationalized, and became Air France. The German airline industry began with Lufthansa in 1926, which, unlike other airlines at the time, became a major investor in airlines in the developing world, founding Varig and Avianca. German airliners built by Junkers, Dornier, and Fokker were the most advanced in the world at the time. The peak of German air travel came in the mid-1930s, when Nazi propaganda ministers approved the start of commercial zeppelin service: the big airships were a symbol of industrial might, but the fact that they used flammable hydrogen gas raised safety concerns that culminated with the Hindenburg disaster of 1937. In 1919 KLM was founded, still the oldest carrier operating under its original name. The first flight transported two english passengers from Schiphol, Amsterdam to London in 1920. Since the Netherlands is a small country with few potential passengers, KLM has depended heavily on transfer-passengers and was one of the first to introduce the hub-system to facilitate easy connections. United Kingdom's flag carrier during this period was Imperial Airways, which became BOAC (British Overseas Airlines Co.) in 1939. Imperial Airways used huge Handley-Page biplanes for routes between London, the Middle East, and India: images of Imperial aircraft in the middle of the Rub'al Khali, being maintained by Bedouins, are among the most famous pictures from the heyday of the British Empire.

Development of airlines post-1945

As governments met to set the standards and scope for an emergent civil air industry toward the end of the war, it was no surprise that the U.S. took a position of maximum operating freedom. After all, U.S. airline companies were not devastated by the war, as European companies and the few Asian companies had been. This preference for "open skies" operating regimes continues, within limitations, to this day. World War II, like World War I, brought new life to the airline industry. Many airlines in the Allied countries were flush from lease contracts to the military, and foresaw a future explosive demand for civil air transport, for both passengers and cargo. They were eager to invest in the newly emerging flagships of air travel such as the Boeing Stratocruiser, Lockheed Constellation, and Douglas DC-6. Most of these new aircraft were based on American bombers such as the B-29, which had spearheaded research into new technologies such as pressurization. Most offered increased efficiency from both added speed and greater payload. pressurization]] In the 1950s, the De Havilland Comet, Boeing 707, Douglas DC-8, and Sud Aviation Caravelle became the first flagships of the Jet Age in the West, while the Soviet Union bloc countered with the Tupolev Tu-104 and Tupolev Tu-124 in the fleets of state-owned carriers such as Aeroflot and Interflug. The Vickers Viscount and Lockheed L-188 Electra inaugurated turboprop transport. The next big boost for the airlines would come in the 1970s, when the Boeing 747, McDonnell Douglas DC-10, and Lockheed L-1011 inaugurated widebody ("jumbo jet") service, which is still the standard in international travel. The Tupolev Tu-144 and its Western counterpart, Concorde, made supersonic travel a reality. In 1972, Airbus began producing Europe's most commercially successful line of airliners to date. The added efficiencies for these aircraft were often not in speed, but in passenger capacity, payload, and range. With deregulation in the U.S. beginning in 1978, barriers to entry were lowered for new entrants. Typically, a new wave of start-ups would enter during downturns in the normal 8-10 year business cycle. At that time, they find aircraft, financing, hangar and maintenance services, training all relatively inexpensive, and laid off staff from other companies eager and willing to take a job with the new company. Alas, as the business cycle returned to normalcy, major airlines were able to dominate their routes through aggressive pricing and additional capacity offerings, often swamping the new startup. Only America West Airlines Airline has remained as a significant survivor from this new entrant era as dozens, even hundreds, have gone under. In many ways, the biggest winner in the deregulated environment was the air passenger. Indeed, the U.S. witnessed an explosive growth in demand for air travel, as many millions who had never or rarely flown before became regular fliers, even joining frequent flyer loyalty programs and receiving free flights and other benefits from their flying. New services and higher frequencies meant that business fliers could fly to another city, do business, and return the same day, for almost any points in the country. Air travel's advantages put intercity bus lines under pressure, and most have withered away. By the 1980's, almost half of the total flying in the world took place in the U.S., and today the domestic industry operates over 2,500 daily departures nationwide. Toward the end of the century, a new style of low cost airline was seen, offering a consistent, often high-quality product, using new aircraft models, at a price that was well-received. JetBlue, AirTran Airways, and other companies represented a serious challenge to legacy carriers, as their counterparts in Europe, Canada, and Asia did to legacy carriers in those regions. Their commercial viability also represented a serious cost threat to employees at legacy airlines, as they set the standard for wage rates in the industry that were a fraction of the prevailing wage. Thus the last 50 years of the airline industry have varied from reasonably profitable, to devastatingly depressed. As the first major market to deregulate the industry, U.S. airlines have experienced more turbulence than almost any other country or region. Today, airlines representing approximately one-half of total U.S. seat capacity are operating under Chapter 11 bankruptcy provisions.

Regulatory considerations

Government regulation

Many countries have national airlines that are owned and operated by the government. Even fully privatized airlines are subject to a great deal of government regulation for economic, political, and safety concerns. Airline labor actions, for instance, are often halted by government intervention in order to protect the free flow of people, communications, and goods between different regions without compromising safety. The United States, Australia, and to a lesser extent Brazil, Mexico, the European Union, and Japan have "deregulated" their airlines. In the past, these governments dictated airfares, route networks, and other operational requirements for each airline. Since deregulation, airlines have been largely free to negotiate their own operating arrangements with different airports, enter and exit routes easily, and to levy airfares and supply flights according to market demand. The entry barriers for new airlines are lower in a deregulated market, and so the U.S. has seen hundreds of airlines start up (sometimes for only a brief operating period). This has produced far greater competition than before deregulation in most markets, and average fares tend to drop 20% or more, spurring new sources of demand. The added competition, together with pricing freedom, means that new entrants often take market share with highly reduced rates that, to a limited degree, full service airlines must match. This is a major constraint on profitability for established carriers, which tend to have a higher cost base. As a result, profitability in a deregulated market is uneven for most airlines. These forces have caused some major airlines to go out of business, in addition to most of the poorly established new entrants.

International regulation

national airline]] Groups such as the International Civil Aviation Organization establish worldwide standards for safety and other vital concerns. Most international air traffic is regulated by bilateral agreements between countries, which designate specific carriers to operate on specific routes. The model of such an agreement was the Bermuda Agreement between the US and UK following World War II, which designated airports to be used for transatlantic flights and gave each government the authority to nominate carriers to operate routes. Bilateral agreements are based on the "freedoms of the air," a group of generalized traffic rights ranging from the freedom to overfly a country to the freedom to provide domestic flights within a country (a very rarely granted right known as cabotage). Most agreements permit airlines to fly from their home country to designated airports in the other country: some also extend the freedom to provide continuing service to a third country, or to another destination in the other country while carrying passengers from overseas. In the 1990s, "open skies" agreements became more common, which take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism, particularly within the European Union, whose airlines would be at a comparative disadvantage with the United States' because of cabotage restrictions.

Economic considerations

Although many countries continue to operate state-owned or parastatal airlines, most large airlines today are privately-owned and are therefore governed by microeconomic principles in order to maximize shareholder profit.

Financing

Airline financing is quite complex, since airlines are highly leveraged operations. Not only must they purchase (or lease) new airline 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. Compare Southwest Airlines and their reliance on a single airplane type (the Boeing 737 and derivatives), with the now bankrupt Eastern Airlines which operated 17 different aircraft types, each with varying pilot, engine, maintenance, and support needs. A second financial issue is that of hedging oil and fuel purchases, usually second only to labor in its relative cost to the company but with the fuel price touching $70/barrel it has become biggest part of total airlines expenses.While hedging instruments can be expensive, they can easily pay for themselves many times over in periods of increasing fuel costs, such as in the 2000-2005 period.

Operating costs

In a mature industry with low fare new entrants and tiny operating margins, it is imperative that airline managers identify controllable costs. Full-service airlines have a high level of fixed and operating costs in order to establish and maintain air services: labor, fuel, airplanes, engines, spares and parts, IT services and networks, airport equipment, airport handling services, sales distribution, catering, training, insurance, and other costs. Thus all but a few cents on the dollar in ticket sales is paid out to a wide variety of external providers or internal cost centers. Moreover, the industry is structured so that airlines often act as tax collectors. Airline fuel is untaxed however due to a series of treaties existing between countries. Ticket prices include a number of fees, taxes, and surcharges they have little or no control over, and these are passed through to various providers. Airlines are also responsible for enforcing government regulations. If airlines carry passengers without proper documentation on an international flight, they are responsible for returning them back to the originating country. Analysis of the 1992-1996 period shows that every player in the air transport chain is far more profitable than the airlines, who collect and pass through fees and revenues to them from ticket sales. While airlines as a whole earned 6% return on capital employed (2-3.5% less than the cost of capital), airports earned 10%, catering companies 10-13%, handling companies 11-14%, aircraft lessors 15%, aircraft manufacturers 16%, and global distribution companies more than 30%. (Source: Spinetta, 2000, quoted in Doganis, 2002) In contrast, Southwest Airlines has been the most profitable of airline companies since 1970. Indeed, some sources have calculated Southwest to be the best performing stock over the period, outperforming Microsoft and many other high performing companies. The chief reasons for this are their product consistency and cost control. The widespread entrance of a new breed of low cost airlines beginning at the turn of the century has accelerated the demand that full service carriers control costs. Many of these low cost companies emulate Southwest Airlines in various respects, and like Southwest, they are able to eke out a consistent profit throughout all phases of the business cycle. As a result, a shakeout of airlines is occurring in the U.S. and elsewhere. United Airlines, US Airways (twice), Delta Air Lines, and Northwest Airlines have all declared Chapter 11 bankruptcy, and American has barely avoided doing so. Alitalia, Scandinavian Airlines System, SABENA, Japan Air System, Air Canada, Ansett Australia, and others have flirted with or declared bankruptcy since 2000, as low cost entrants enter their home markets as well. Some argue that it would be far better for the industry as a whole if a wave of actual closures were to reduce the number of "undead" airlines competing with healthy airlines while being artificially protected from creditors via bankruptcy law.

Ticket sales

Airlines assign prices to their services in an attempt to maximize profitability. To do this well requires yield management technology and pricing flexibility. They use differentiated pricing, a form of price discrimination, in order to sell air services at varying prices simultaneously to different segments. Factors influencing the price include the days remaining until departure, the current booked load factor, the forecast of total demand by price point, competitive pricing in force, and variations by day of week of departure and by time of day. A complicating factor is that of origin-destination control ("O&D control"). Someone purchasing a ticket from say, Melbourne to Sydney for $A200 is competing with someone else who wants to fly Melbourne to Los Angeles through Sydney on the same airplane, and who is willing to pay $A1400. Should the airline prefer the $A1400 passenger, or the $A200 passenger + a possible Sydney-Los Angeles passenger willing to pay $A1300? Airlines have to make hundreds of thousands of similar pricing decisions daily in their markets. In contrast, low fare carriers usually offer straightforward, preannounced, simple prices. They can do this by quoting prices for each leg of a trip; passengers simply add them together to construct a full journey. The advent of advanced computerized reservations systems in the late 1970s, most notably Sabre, allowed airlines to easily perform cost-benefit analyses on different pricing structures, leading to almost perfect price discrimination in some cases (that is, filling each seat on an aircraft at the highest price that can be charged without driving the consumer elsewhere). The intense nature of airfare pricing has led to the term "fare war" to describe efforts by airlines to undercut other airlines on competitive routes. Computers also allow airlines to predict, with some accuracy, how many passengers will actually fly after making a reservation to fly. This allows airlines to overbook their flights enough to fill the aircraft while accounting for "no-shows," but not enough (in most cases) to force paying passengers off the aircraft for lack of seats. Since an average of 1/3 of all seats are flown empty, stimulative pricing for low demand flights coupled with overbooking on high demand flights can help reduce this figure.

Related topics


- Price discrimination
- Travel class
- Yield management

Airport operations

Where an airline has established an engineering base at an airport then there may be considerable economic advantages in using that same airport as a preferred focus (or "hub") for its scheduled flights. 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 tradeable asset in the portfolios of 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. If a particular city has two or more airports, market forces will tend to attract the less profitable routes, or those on which competition is weakest, to the less congested airport, where slots are likely to be more available and therefore cheaper. Other factors, such as surface transport facilities and onward connections, will also affect the relative appeal of different airports and some long distance flights may need to operate from the one with the longest runway.

Business-to-business relations

Code sharing is the most common type of airline partnership; it involves one airline selling tickets for another airline's flights under its own airline code. An early example of this was Japan Airlines' code sharing partnership with Aeroflot in the 1960s on flights from Tokyo to Moscow: Aeroflot operated the flights using Aeroflot aircraft, but JAL sold tickets for the flights as if they were JAL flights. This practice allows airlines to expand their operations, at least on paper, into parts of the world where they cannot afford to establish bases or purchase aircraft. Since airline reservation requests are often made by city-pair (such as "show me flights from Chicago to Dusseldorf"), an airline who is able to code share with another airline for a variety of routes might be able to be listed as indeed offering a Chicago-Dusseldorf flight. The passenger is advised however, that Airline 1 operates the flight from say Chicago to Amsterdam, and Airline 2 operates the continuing flight (on a different airplane, sometimes from another terminal) to Dusseldorf. Thus the primary rationale for code sharing is to expand one's service offerings in city-pair terms so as to increase sales. Virtually all international airlines practice code sharing. A more recent development is the airline alliance, which became prevalent in the 1990s. These alliances can act as virtual mergers to get around government restrictions. Groups of airlines such as the Star Alliance, oneworld, and SkyTeam coordinate their passenger service programs (such as lounges and frequent flyer programs), offer special interline tickets, and often engage in extensive codesharing (sometimes systemwide). These are increasingly integrated business combinations-- sometimes including cross-equity arrangements-- in which products, service standards, schedules, and airport facilities are standardized and combined for higher efficiency. One of the first airlines to start an alliance with another airline was KLM, who partnered with Northwest Airlines. Both airlines later entered the SkyTeam alliance after the fusion of KLM and Air France in 2004. Often the companies combine IT operations, buy fuel, or purchase airplanes as a bloc in order to achieve higher bargaining power. However, the alliances have been most successful at purchasing invisible supplies and services, such as fuel. Airlines usually prefer to purchase items visible to their passengers to differentiate themselves from local competitors. If an airline's main domestic competitor flies Boeing airliners, then the airline may prefer to use Airbus aircraft regardless of what the rest of the alliance chooses.

Customs and conventions

Each operator of a scheduled or charter flight uses a distinct airline call sign when communicating with airports or air traffic control centers. Most of these call-signs are derived from the airline's trade name, but for reasons of history, marketing, or the need to reduce ambiguity in spoken English (so that pilots do not mistakenly make navigational decisions based on instructions issued to a different aircraft), some airlines and air forces use call-signs less obviously connected with their trading name. For example, British Airways uses a Speedbird call-sign, named after the logo of its predecessor, BOAC.

Airline personnel

The various types of airline personnel include:
- Flight crews, responsible for the operation of aircraft while airborne. Flight crew members include:
  - Pilots (captain and first officer: some older aircraft also require flight engineers and/or navigators)
  - Flight attendants (led by a purser on larger aircraft)
  - In-flight security personnel on some airlines (most notably El Al)
- Ground crews, responsible for operations at airports. Ground crew members include:
  - Airframe and powerplant technicians
  - Avionics technicians
  - Baggage handlers
  - Rampers
  - Gate agents
  - Ticket agents
  - Passenger service agents (such as airline lounge employees)
  - Flight dispatchers
- Reservations agents, usually (but not always) at facilities outside the airport Most airlines follow a corporate structure where each broad area of operations (such as maintenance, flight operations, and passenger service) is supervised by a vice president. Larger airlines often appoint vice presidents to oversee each of the airline's hubs as well. Airlines also tend to employ considerable numbers of lawyers to deal with regulatory procedures and other administrative tasks.

See also


- Air safety
- Airport security — no longer a responsibility of the airlines.
- Cargo airline
- Charter airline
- Commuter airline
- Low-cost carrier
- Airlines at the movies
- Airliners.net
- 1000 Airlines in Color
- Airline timetable
- Red-eye flight
- Transportation Security Administration
- Federal Aviation Administration
- IATA — industry standards organization

Lists


- List of largest airlines
- List of airlines — A fairly comprehensive listing
- List of accidents and incidents on commercial airliners
- List of national airlines
- List of defunct airlines

External links


- [http://airlines.afriqonline.com/ Airline History Website]
- [http://www.airliners.net Airliners.net]
- [http://www.jetphotos.net JetPhotos.net]
- [http://www.airlines.ws/ Airline Directory]
- [http://www.iata.org International Air Transport Organization]
- [http://www.aea.be Association of European Airlines]
- [http://www.skygod.com/quotes/airline.html Airline Quotations]

References

"Flying Off Course: The Economics of International Airlines," 3rd edition. Rigas Doganis, Routledge, New York, 2002. "The Airline Business in the 21st Century." Rigas Doganis, Routledge, New York, 2001. Category:Aviation ko:항공사 ja:航空会社

Airline (disambiguation)

airline has several meanings:
- airline is the common term for commercial aviation transportation service using aircraft.
- Formerly, a synonym for beeline, or the shortest path between two land points regardless of obstacle. As defined by a 1913 dictionary: "Air line, a straight line; a bee line. Hence Air-line, adj.; as, air-line road." As of 2005 this meaning has fallen into disuse). See Air Line Railroad for railroads named in that manner.
- Airline (television show)
- A tube that carries a compressed air supply, including tyre inflators.
- Airlines (computer game), an MS-DOS based airline management simulation game.

United Kingdom

:For other meanings of the terms "United Kingdom" and "UK" , see United Kingdom (disambiguation) and UK (disambiguation). :For an explanation of terms like England, (Great) Britain and United Kingdom see British Isles (terminology). The United Kingdom of Great Britain and Northern Ireland (usually shortened to the United Kingdom or the UK) is a country located off the north-western coast of continental Europe, surrounded by the North Sea, the English Channel, the Celtic Sea, the Irish Sea, and the Atlantic Ocean. It is composed of four constituent parts: three constituent countries—England, Scotland, and Wales—on the island of Great Britain, and the province of Northern Ireland on the island of Ireland. The border between Northern Ireland and the Republic of Ireland forms the United Kingdom's principal international land border, although there is a nominal frontier with France in the middle of the Channel Tunnel. The UK has several overseas territories and the Crown dependencies of the Isle of Man and the Channel Islands come under the UK's sovereignty. The UK also has close relationships with the fifteen other Commonwealth Realms, as they all share the same head of state. The UK is also one of the largest member states of the European Union and a founding partner of both the UN and NATO.

Terminology


- United Kingdom of Great Britain and Northern Ireland: The official name for the sovereign state
- United Kingdom: an abbreviation of United Kingdom of Great Britain and Northern Ireland
- Britain: an informal term that sometimes means United Kingdom of Great Britain and Northern Ireland and sometimes means Great Britain
- British: an informal term that sometimes means from the United Kingdom of Great Britain and Northern Ireland and sometimes means from Great Britain
- Great Britain (as a geographical term): the largest island of the British Isles
- Great Britain (as a political term): England + Wales + Scotland
- British Isles (as a geographical term): Great Britain + Ireland + many smaller surrounding islands. This term is disputed, please see below.
- Ireland (as a geographical term): the second largest island of the British Isles
- Ireland (as a political term): an abbreviation of the Republic of Ireland, a sovereign state on the island of Ireland
- Northern Ireland: a political region of the United Kingdom of Great Britain and Northern Ireland
- Ulster (as a geographical term): Often used to refer to Northern Ireland. It is derived from the Irish Language term 'Ulad.' It was one of the ancient Irish provinces (the others were Connaught, Leinster and Munster.). Although it is normally used to refer to Northern Ireland, Ulster also (traditionally) includes Counties Cavan, Monaghan and Donegal, which lie in the Republic of Ireland. The term Ulster is often favoured by the Protestant community.

History

Protestant Today's state is the latest of several unions formed over the last 1000 years. Scotland and England have existed as separate unified entities since the 10th century. Wales, under English control since the Statute of Rhuddlan in 1284, became part of the Kingdom of England by the Laws in Wales Act 1535. With the Act of Union 1707, the separate kingdoms of England and Scotland, having shared the same monarch since 1603, agreed to a permanent union as the Kingdom of Great Britain. The Act of Union 1800 united the Kingdom of Great Britain with the Kingdom of Ireland, which had been gradually brought under English control between 1169 and 1691, to form the United Kingdom of Great Britain and Ireland. The United Kingdom of Great Britain and Northern Ireland was formed in 1922, after bitter fighting which echoes down to the current political strife, the Anglo-Irish Treaty partitioned Ireland into the Irish Free State and Northern Ireland, with the latter remaining part of the United Kingdom. As provided for in the treaty, Northern Ireland, which consists of six of the nine counties of the Irish province of Ulster, immediately opted out of the Free State and to remain in the UK. The nomenclature of the UK was changed in 1927 to recognise the departure of most of Ireland, with the current name being adopted. 1927 The United Kingdom, the dominant industrial and maritime power of the 19th century, played a leading role in developing Western world ideas of property, liberty, capitalism and parliamentary democracy - to say nothing of its part in advancing world literature and science. At its zenith, the British Empire stretched over one quarter of the Earth's surface and encompassed a third of its population. The first half of the 20th century saw the UK's strength seriously depleted from the effects of World War I and World War II. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous nation. The UK has been a member of the European Union since 1973. Its attitude towards further integration is conservative, and there is significant Euroscepticism in UK politics. It has not chosen to adopt the Euro, owing to internal political considerations and the government's judgement of the prevailing economic conditions.

Government and politics

The United Kingdom is a constitutional monarchy, with executive power exercised on behalf of the Queen by the Prime Minister and other cabinet ministers who head departments. The cabinet, including the Prime Minister, and other ministers collectively make up Her Majesty's Government. These ministers are drawn from and are responsible to Parliament, the legislative body, which is traditionally considered to be "supreme" (that is, able to legislate on any matter and not bound by decisions of its predecessors). The UK is one of the few countries in the world today that does not have a codified constitution, relying instead on customs and separate pieces of constitutional law. While the monarch is Head of State and holds all executive power, it is the Prime Minister who is the head of government. The government is answerable chiefly to the House of Commons and the Prime Minister is drawn from this chamber of Parliament by constitutional convention. The majority of cabinet members will be from the House of Commons, the rest from the House of Lords. Ministers do not, however, legally have to come from Parliament, though that is the modern day custom. The British system of government has been emulated around the world - a legacy of the United Kingdom's colonial past - most notably in the other Commonwealth Realms. The Prime Minister is chosen as the MP who can command a majority in the House of Commons - usually the leader of the largest party or, if there is no majority party, the largest coalition. The current Prime Minister is Tony Blair of the Labour Party, who has been in office since 1997. In the United Kingdom the monarch has extensive theoretical powers, but his or her role is mainly, though not exclusively, ceremonial. The monarch is an integral part of Parliament (as the "Crown-in-Parliament") and theoretically gives Parliament the power to meet and create legislation. An Act of Parliament does not become law until it has been signed by the Queen (being given Royal Assent), although no monarch has refused to assent to a bill that has been approved by Parliament since Queen Anne in 1708. Although the abolition of the monarchy has been suggested several times, the popularity of the monarchy remains strong in spite of recent controversies. Support for a British republic usually fluctuates between 15% and 25% of the population, with roughly 10% undecided or indifferent [http://www.mori.com/mrr/2000/c000616.shtml]. The current monarch is Queen Elizabeth II who acceded to the throne in 1952 and was crowned in 1953. Parliament is the national legislature of the United Kingdom. It is the ultimate legislative authority in the United Kingdom, according to the doctrine of parliamentary sovereignty. It is bicameral, composed of the elected House of Commons and the unelected House of Lords, whose members are mostly appointed. The House of Commons is the more powerful of the two houses. The House of Commons has 646 members who are directly elected from single-member constituencies based on population. The House of Lords has 724 members (though this number is not fixed): hereditary peers, life peers, and bishops of the Church of England. The Church of England is the established church of the state in England. established church]] The two largest political parties are the Labour Party and Conservative Party. The UK has long had a two-party system, but in the last 20 years the Liberal Democrats have re-emerged as a large third party. The electoral system used for general elections is first-past-the-post. The constitution of the United Kingdom is un-codified and partially unwritten, which means that no single document regulates how the government works, and unwritten constitutional conventions are used extensively. The constitution is based on the principle that Parliament is the ultimate sovereign body in the country. There has long been a widespread sense of national identity in the Celtic nations. Throughout the late 19th century the UK debated giving Ireland home rule. The Scottish National Party was founded in 1934, and Plaid Cymru (Party of Wales) in 1925. Referenda for devolution succeeded in 1997 for Scotland and Wales and in 1998 for Northern Ireland. In 1999, the Scottish Parliament and the National Assembly for Wales were established, the former having primary legislative power. Proportional representation is used for the elections, which has resulted in a Labour-Liberal Democrat coalition government in Scotland. Due to internal disagreements, the Northern Ireland Assembly has been suspended since 2002.

Subdivisions

The United Kingdom is a country that is divided into four constituent parts:
- England
- Scotland
- Northern Ireland
- Wales The constituent parts of the United Kingdom have administrative subdivisions as follows:
- The regions and administrative counties of England
- The council areas of Scotland
- The counties and county boroughs of Wales
- The districts of Northern Ireland The Laws in Wales Act 1535 incorporated Wales and England into England and Wales for legal purposes. Although all four have historically been divided into counties, England's population is an order of magnitude larger than the others so in recent years it has for some purposes been divided into nine intermediate-level Government Office Regions. Each region is made up of counties and unitary authorities, apart from London, which consists of London boroughs. Although at one point it was intended that each or some of these regions would be given its own regional assembly, the plan's future is uncertain, as of 2004, after the North East region rejected its proposed assembly in a referendum. Scotland consists of 32 Council Areas. Wales consists of 22 Unitary Authorities, styled as 10 County Boroughs, 9 Counties, and 3 Cities. Northern Ireland is divided into 26 Districts. Also sometimes associated with the United Kingdom, though not constitutionally part of the United Kingdom itself, are the Crown dependencies (the Bailiwicks of Jersey and Guernsey, and the Isle of Man) as self-governing possessions of the Crown, and a number of overseas territories under the sovereignty of the United Kingdom.

Military

The armed forces of the United Kingdom are known as the British Armed Forces or Her Majesty's Armed Forces, officially the Armed Forces of the Crown. Their Commander-in-Chief is the Queen and they are managed by the Ministry of Defence. Ministry of Defence The British Armed Forces are charged with protecting the United Kingdom and its overseas territories, promoting the United Kingdom's wider security interests, and supporting international peacekeeping efforts. They are active and regular participants in NATO and other coalition operations. The United Kingdom fields one of the most powerful and comprehensive military forces in the World. Its global power projection capabilities are second only to those of the United States Armed Forces. The British Army had a reported strength of 112,700 in 2004, including 7,600 women, and the Royal Air Force a strength of 53,400. The 40,900-member Royal Navy is in charge of the United Kingdom's independent strategic nuclear arm, which consists of four Trident Ballistic Missile Submarines, while the Royal Marines provide infantry units for amphibious assault and for specialist reinforcement forces in and beyond the NATO area. This puts total active duty military troops in the 210,000 range, currently deployed in over 80 countries. The UK's special forces, principally the SAS, provides elite commandos trained for quick, mobile, military responses; often where secrecy or covert operations are required. The Royal Navy is the second largest navy in the World in terms of gross tonnage. Despite the United Kingdom's wide ranging capabilities, recent pragmatic defence policy has a stated assumption that any large operation would be undertaken as part of a coalition. Bosnia, Kosovo, Afghanistan, Iraq (Granby, No-Fly-Zones, Desert Fox and Telic) may all be taken as precedent - indeed the last true war in which the British military fought alone was the Falklands War of 1982, in which military action was initiated by Argentina and the UK was fighting a defensive, rather than offensive, campaign. The British army has been actively involved in the Troubles in Northern Ireland. However, a programme of demilitarisation is being gradually implemented.

Geography

Troubles World Factbook Map of the United Kingdom]] Most of England consists of rolling lowland terrain, divided east from west by more mountainous terrain in the Northwest (Cumbrian Mountains of the Lake District) and north (the upland moors of the Pennines) and limestone hills of the Peak District by the Tees-Exe line. The lower limestone hills of the Isle of Purbeck, Cotswolds, Lincolnshire and chalk downs of the Southern England Chalk Formation. The main rivers and estuaries are the Thames, Severn and the Humber Estuary. The largest urban area is Greater London. Near Dover, the Channel Tunnel links the United Kingdom with France. There is no peak in England that is 1000 metres (3,300 ft) or greater. Wales is mostly mountainous, the highest peak being Snowdon at 1085 metres (3,560 ft) above sea level. North of the mainland is the island of Anglesey. The largest and capital city is Cardiff, located in South Wales. Scotland's geography is varied, with lowlands in the south and east and highlands in the north and west, including Ben Nevis, the UK's highest mountain at 1343 metres (4,406 ft). There are many long and deep-sea arms, firths, and lochs. A multitude of islands west and north of Scotland are also included, notably the Hebrides, Orkney Islands and Shetland Islands. The largest city is Glasgow. Northern Ireland, making up the north-eastern part of Ireland, is mostly hilly. The main cities are Belfast ('Beal Feirste' in Irish) and Londonderry / Derry ('Doire' in Irish). The province is home to one of the UK’s World Heritage Sites, the Giant's Causeway, which consists of more than 40,000 six-sided basalt columns up to 40 feett (12 m) high. In total it is estimated that the UK includes around 1098 small islands, some being natural and some being crannogs, a type of artificial island which was built in past times using stone and wood, gradually enlarged by natural waste building up over time.

Economy

artificial island The United Kingdom, a leading trading power and financial centre, has an essentially capitalist economy, the fourth largest in the world in terms of market exchange rates and the sixth largest by purchasing power parity (PPP) exchange rates. Over the past three decades, the government has greatly reduced public ownership by means of privatisation programmes, and has contained the growth of the Welfare State. Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with only 1% of the labour force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial state. Services, particularly banking, insurance and business services, account for by far the largest proportion of GDP. Industry continues to decline in importance, although the UK is still Europe's largest manufacturer of armaments, petroleum products, personal computers, televisions, and mobile telephones. Tourism is also important: with over 24 million tourists a year, between China (33) and Austria (19.1), the United Kingdom is ranked as the sixth major tourist destination in the world. The Blair government has put off the question of participation in the Euro system, citing five economic tests that would need to be met before they recommend that the UK adopts the Euro, and hold a referendum.

Society

Demographics

At the April 2001 census, the United Kingdom's population was 58,789,194, the third-largest in the European Union (behind Germany and metropolitan France) and the twenty-first largest in the world. Its overall population density is one of the highest in the world. Almost one-third of the population lives in England's prosperous south-east and is predominantly urban and suburban--with about 7.2 million in the capital of London. The United Kingdom's high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 and secondary level in 1900 (except in Scotland where it was introduced in 1696). Education is mandatory from ages five through sixteen. referendum The Church of England and the Church of Scotland function as the official national religions in their respective countries, but most religions found in the world are represented in the United Kingdom. Anglicanism is the state religion that has been established in England since 1534 during the reign of King Henry VIII. During his reign, England broke ties with the Roman Catholic church and established the Church of England as the offical religion of England. Reforms to the nature of the church's relationship to the state have been ongoing, especially concerning the nature of the House of Lords and the appointment of a fixed amount of the lordships going to Lords Temporal, bishops of the Church of England. A group of islands close to continental Europe, the British Isles have been subject to many invasions and migrations, especially from Scandinavia and the continent, including Roman occupation for several centuries. Contemporary Britons are descended mainly from the varied ethnic stocks that settled there before the eleventh century. The pre-Celtic, Celtic, Roman, Anglo-Saxon, and Norse influences were blended on Great Britain under the Normans, Scandinavian Vikings who had lived in Northern France. Although Celtic languages persist in Wales, Scotland, and Northern Ireland, the predominant language is English, which is a West Germanic language descended from Old English, featuring a large amount of borrowings from Norman French.The other indigenous languages include the Celtic languages; Welsh, the closely related Irish and Scots Gaelic, and the Cornish language; as well as Lowland Scots, which is closely related to English; Romany; and British Sign Language (Northern Ireland Sign Language is also used in Northern Ireland). Celtic dialectal influences from Cumbric persisted in Northern England for many centuries, most famously in a unique set of numbers used for counting sheep. Recent immigrants, especially from the Commonwealth, speak many other languages, including Bengali, Cantonese, Hindi, Punjabi and Urdu. The United Kingdom has the largest number of Hindi speaking peoples outside of the Indian sub continent.

Culture

Urdu The United Kingdom contains many of the world's leading universities, including the University of Cambridge, the University of Oxford and the University of London (which incorporates, amongst others, Imperial College and University College London), and has produced many great scientists and engineers including Sir Isaac Newton, Charles Darwin and Isambard Kingdom Brunel; the nation is credited with many inventions including the locomotive, vaccination, television, vacuum, and both the internal combustion and the jet engine. The English language has spread to all corners of the world (primarily because of the country’s empire) and is referred to as a ‘global language’. It is now taught as a second language more than any other around the world. Over the next few decades, it is estimated that approximately half the world’s population will be proficient in the language. Playwright William Shakespeare is arguably the most famous writer in the history of the English language; other well-known writers from the United Kingdom include the Brontë sisters (Charlotte, Emily, and Anne), Jane Austen, William Thackeray, J. R. R. Tolkien, John Milton, H. G. Wells and Charles Dickens. Important poets include Lord Byron, Robert Burns, Lord Tennyson and William Blake. Notable composers from the United Kingdom have included William Byrd, John Taverner, William Lawes, John Dowland, Thomas Tallis, and Henry Purcell from the 16th and early 17th centuries, and, more recently, Sir Edward Elgar, Sir Arthur Sullivan (most famous for working with librettist Sir W. S. Gilbert), Ralph Vaughan Williams and Benjamin Britten in the 19th and 20th. George Frideric Handel spent most of his composing life in England. The BBC is the oldest and perhaps the most respected broadcasting network on the globe, with the BBC World Service radio channel and its news output held in particularly high regard. The other main television networks are ITV, Channel 4, five (TV) and Sky Television. Popular programmes in the UK include the three soaps Eastenders, Coronation Street and Emmerdale, as well as the comedy news quiz Have I Got News For You and Reality TV shows Big Brother and The X Factor. Various British TV formats have been exported to other nations, notably Who Wants To Be A Millionaire?, The Weakest Link and The Office. The UK was, with the US, one of the two main contributors in the development of rock and roll, and the UK has provided some of the most famous rock stars, including the Beatles, Queen, Led Zeppelin, Pink Floyd, the Rolling Stones, The Who and many others. The UK was at the forefront of punk rock music in the 1970s with bands such as the Sex Pistols and The Clash, and the subsequent rebirth of heavy metal with bands such as Motörhead and Iron Maiden. In mid to late '90s, the Britpop phenomenon has seen bands such as Oasis, Blur, Radiohead and Coldplay gain international fame. The UK is also at the forefront of electronica, with British artists such as Aphex Twin, Talvin Singh, Nitin Sawhney and Lamb at the cutting edge. The United Kingdom was also associated with music from the Caribbean, with a large number of Jamaicans and other Caribbean nationals being present in the UK.

Sport

A great number of major sports originated in the United Kingdom, including football, golf, cricket, rugby, tennis and boxing. The national sport of the UK is association football, but the UK does not compete as a nation in any major football tournament. Instead, the home nations compete individually as England, Wales, Scotland and Northern Ireland. It is because of this unique four-team arrangement that the UK currently does not compete in football events at the Olympic Games. However, a united team will probably take part in the 2012 Summer Olympic Games, as these are hosted in London. The English and Northern Irish football associations have confirmed participation in this team while the Scottish FA and the Welsh FA have declined to participate. The UK also hosts many world-renowned football clubs, such as Manchester United, Liverpool, Chelsea and Arsenal in England and Rangers and Celtic in Scotland. Clubs compete in national leagues and competitions and some go on to compete in European competitions. Both forms of rugby are national sports. Rugby League originates from and is generally played in the North of England, whilst Rugby Union is played all over Britain. In Rugby League the UK plays as one nation - Great Britain - whilst in union it is represented by the four nations. England are the current holders of the Rugby Union World Cup. Every four years the British and Irish Lions (comprising the best players from England, Scotland, Wales and Ireland) tour other countries. Cricket is also played in the UK, although it is focussed in England. The Wimbledon Championships are an international tennis event held in Wimbledon in south London every summer and are seen as the most prestigious of the tennis calendar. Golf is one of the most popular participation sports played in the UK and St Andrews in Scotland is the sport's home course.

Miscellaneous topics

External links


- [http://www.bbc.co.uk/history/state/nations/ BBC Nations] History of the nations within the UK.
- [http://www.bbc.co.uk British Broadcasting Corporation (BBC)]
- [http://www.cia.gov/cia/publications/factbook/geos/uk.html CIA World Factbook: UK.]
- [http://www.direct.gov.uk Gateway to UK governmental services and websites.]
- [http://www.number-10.gov.uk Number 10 Downing Street]
- [http://www.statistics.gov.uk Office of National Statistics]
- [http://www.opsi.gov.uk Office of Public Sector Information] Source for all UK legislation 1987-present (successor to Her Majesty's Stationery Office).
- [http://www.macs.hw.ac.uk/britishisles/ The British Isles] Independent view of the UK.
- [http://www.royal.gov.uk The British Monarchy]
- [http://www.parliament.uk/ The United Kingdom Parliament]
- [http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=5703&Pos=&ColRank=1&Rank=272 Official Yearbook of the UK] factbook produced by the Office for National Statistics (years 2000 to 2005 available online).
- [http://www.ukcities.co.uk UK Cities] lists a variety of useful resources for every city in the UK.
- [http://www.justuk.org UK travel guide] United Kingdom for travellers.
- [http://www.world66.com/europe/unitedkingdom World66 Guide to United Kingdom] A travel guide written by its users.
- [http://www.multimap.co.uk www.multimap.co.uk] provides online maps and aerial photographs of the UK.
- [http://www.streetmap.co.uk www.streetmap.co.uk] an alternative to multimap.
- [http://www.freeworldmaps.net/europe/united-kingdom/map.html Physical map of United Kingdom.]
- [http://www.upmystreet.com www.upmystreet.com] detailed localised information about places in the United Kingdom.
- [http://www.parks.it/world/UK/Eindex.html UK Parks] National parks, Areas of Outstanding Natural Beauty and other protected areas. ----
Category:British Isles Category:European countries Category:European Union member states Category:Members of the Commonwealth of Nations Category:Monarchies A als:Grossbritannien und Nordirland zh-min-nan:Liân-ha̍p Ông-kok ko:영국 ms:United Kingdom ja:イギリス simple:United Kingdom th:สหราชอาณาจักร

Lease

A lease or tenancy is an interest in personal property or real property given by a lessor to another person (usually called the lessee or tenant) for a fixed period of time, and the lessee obtains exclusive possession of the property in return for paying the lessor a fixed or determinable consideration. In law, there are two types of property:
- Real property is land or any permanent feature or structure above or below the surface. Ownership of land is an aspect of the system of real property or realty in common law systems (immovables in civil law systems and Conflict of Laws).
- All other property is considered personal property or personalty in common law systems (movables in civil law and Conflict of Laws), and this property is either tangible or intangible, i.e. it is either physical property that can be touched like a computer, or it is an enforceable right like a patent or other form of intellectual property. There are three separate levels of rights or interests affecting both forms of property. In descending order of importance they are:
- ownership,
- possession or
- control and use. The legal documents that transfer these rights are respectively: conveyance/transfer, lease/tenancy, and bailment/pledge for tangible personalty, assignments and licenses for intangibles.

Conceptual background

Under normal circumstances, owners are free to do what they want with their property. In the case of personalty, the normal rule is that owners in possession cannot steal their own property, nor can they be prosecuted if they destroy it. Owners can, however, steal their property from another if they have already surrendered possession to that person. This reflects the power of the state to regulate the rights and duties of an owner and to impose liabilities should others suffer loss or be endangered by any use to which the property is put. But, in general terms, owners have considerable freedom of action under all legal systems, both national and international. By definition, owners also have the rights of both possession and control over their property, and they can transfer those subordinate rights to others.

Real property

There are different types of ownership for land but, in common law states, the most common form is the fee simple absolute. An owner of the fee simple holds all the rights and privileges to that property and, subject to the laws, codes, rules and regulations of the local law, can sell or by contract or grant, permit another to have possession and control of the property through a lease or tenancy agreement. For this purpose, the owner is called the lessor or landlord, and the other person is called the lessee or tenant, and the rights to possess and control the land are exchanged for some consideration, usually a monthly rent. Time should always be defined although, in the 1930s, the British government introduced infinite leases, only to remove the power to create these in the early 1990s. A lease may be:
- for a specified period of time (the "term"), and end when the term expires;
- conditional, i.e. last until some specified event occurs, such as the death of a specified individual; or
- at will, i.e. last only as long as the parties wish it to, and be terminated without penalty by either party. Because ownership is retained by the lessor, he or she always has the better right to enforce all the contractual terms and conditions affecting the use of the land. Normally, the contract will be express (i.e. set out in full and, hopefully, plain language), but where a contract is silent or ambiguous, terms can be implied by a court where this would make commercial sense of the transaction between the parties. One important right that may or may not be allowed the lessee, is the ability to create a sublease or to assign the lease, i.e. to transfer control to a third party. Hence, the builder of an office block may create a lease of the whole in favour of a management company that then finds tenants for the individual units and gives them control.

Tangible personal property

An owner can allow another the use of a car or a computer either for a fixed period of time or at will. This can be a simple leasing transaction, or it can be a transaction intended to allow the user the right to buy the car at some future time.
- In a simple lease, P pays O a rental for the use of the car during the agreed period which may be a few days (e.g. for a holiday trip) or longer where it is more economic to pay for use rather than pay for the ownership of an asset of depreciating value. Normally, only P will be allowed to use the vehicle and, in such a case, P has possession and control. But, P could be an employer who allows C the use of the car to visit clients, and thereby gives C control. An explanation of North American vehicle leasing may be found at [http://www.autotraderleaseguide.com car leasing].
- In a lease with the possibility of purchase, O could allow P to lease the car for a specified period of time. If all the rental payments are made in full and on time, P will then be allowed to buy the car at a low or nominal price. It is relatively unusual for the owner to offer these forms of agreement. More usually, a finance company is introduced as a third party into the transaction. Hence, O sells ownership of the car to F, and F then leases the car to P. It is standard for the contractual terms to prohibit P from parting with possession or control of the car to another (if P does part with possession, this can be a theft of the car from F). In the U.S. this is called Closed-end leasing. In other jurisdictions, it is called hire purchase, lease purchase or finance leasing. These transactions are complicated. The most common problem arises when O makes specific representations as to the quality and reliability of the car to P during the initial negotiations. If what is said induces P to buy the car from O, those representations would usually be enforceable against O. But, in this transaction, O first sells the car to F who makes no representations to P. The laws vary from state to state on the extent to which P might be allowed a remedy if the car proves to be of poor quality. To clarify the concept, the owner of tangible movables has the power to keep possession and only to transfer control. This may be for:
- short- or long-term storage ((e.g. leaving a passport with hotel staff or depositing valuable property in a bank vault — a hotel or bank holding property is a bailee); or
- for delivery purposes (e.g. using a carrier to transport goods to a specific destination); or
- it may be a form of mortgage — a pawnshop holds a pledge over the goods deposited until the money lent is repaid.

Real leases

Whether it is better to lease or buy land will be determined by each state's legal and economic systems. In those countries where acquiring title is complicated, the state imposes high taxes on owners, transaction costs are high, and finance is difficult to obtain, leasing will be the norm. But, freely available credit at low interest rates with minimal tax disadvantages and low transaction costs will encourage land ownership. Whatever the system, most adult consumers have, at some point in their lives, been party to a real estate lease which can be as short as a week, as long as 999 years, or perpetual (only a few states permit ownership to be alienated indefinitely). For commercial property, whether there is a depreciation allowance depends on the local state taxation system. If a lease is created for a term of, say, ten years, the monthly or quarterly rent is a fixed cost during the term. The term of years may have an asset value for balance sheet purposes and, as the term expires, that value depreciates. However, the apportionment of relief as between business expense and depreciating asset is for each state to make (all that is certain is that the lessee cannot have a double allowance).

Private property rental

Rental, tenancy, and lease agreements are formal and informal contracts between an identified landlord and tenant giving rights to both parties, e.g. the tenant's right to occupy the accommodation for an agreed term and the landlord’s right to receive an agreed rent. If one of these elements is missing, only a tenancy at will or bare licence comes into being. In some legal systems, this has unfortunate consequences. When a formal tenancy is created, the law usually implies obligations for the lessor, e.g. that the property meets certain minimum standards of habitability. With a bare licence, some states do not imply any significant lessee protections A tenancy agreement can be made up of:
- express terms. These include what is in the written agreement (if there is one), in the rent book, and/or what was agreed orally (if there is clear evidence of what was said).
- implied terms. These are the standard terms established by custom and practice or the minimum rights and duties formally impled by law.

Commercial leasehold

Benefits of commercial leasing

For businesses, leasing property may have significant financial benefits:
- Leasing is less capital-intensive than purchasing, so if a business has constraints on its capital, it can grow more rapidly by leasing property than it could by purchasing the property outright.
- Capital assets may fluctuate in value. Leasing shifts risks to the lessor, but if the property market has shown steady growth over time, a business that depends on leased property is sacrificing capital gains.
- Leasing may provide more flexibility to a business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.
- Depreciation of capital assets has different tax and financial reporting treatment from ordinary business expenses. Lease payments are considered expenses, which can be set off against revenue when calculating taxable profit at the end of the relevant tax accounting period.

Disadvantages

There are some significant drawbacks:
- If circumstances dictate that a business must change its operations significantly, it may be expensive or otherwise difficult to terminate a lease before the end of the term. In some cases, a business may be able to sublet property no longer required, but this may not recoup the costs of the original lease, and, in any event, usually requires the consent of the original lessor. Tactical legal considerations usually make it expedient for lessees to default on their leases. The loss of book value is small and any litigation can usually be settled on advantageous terms. This is an improvement on the position for those companies owning their own property. Although can be easier for a business to sell property if it has the time, forced sales frequently realise lower prices and can seriously affect book value.
- If the business is successful, lessors may demand higher rental payments when leases come up for renewal. If the value of the business is tied to the use of that particular property, the lessor has a significant advantage over the lessee in negotiations.

See also


- Arrangements between railroads Category:Real estate

Regional airline

in the 1990s. ]] Regional airlines are a type of airline service that is intended to feed a larger airline or larger aircraft. It also describes air service between small communities that are not able to support larger aircraft. This type of service is also called a commuter airline. Regional airlines vary in ownership from being independent companies to being wholly owned subsidiaries of major carriers. Their aircraft frequently are painted in the same color scheme as the airline whose flights they support but with a sightly different name, like adding express to the major airlines name. Regional airlines began by operating propeller-driven equipment over short routes, sometimes on flights of less than 100 miles in length. Many of the regional airlines in the United States and to a lesser extent in Europe and the United Kingdom eventually transitioned to jet equipment, providing jet service to small communities by the 1960s and 1970s as the airlines grew in size. This brought the regional airlines into direct competition with the major airlines resulting in many of these regional airlines going out of business. By the 1990s, regional airlines, at least in the US, were still flying mostly turboprop aircraft. The development of aircraft specifically designed for use as regional jets allowed airlines in this market to upgrade to larger and faster planes that offered a more quiet ride and faster service.

United States regional airlines

In the United States, regional airlines were an important building block of today's passenger air system. The U.S. Government encouraged the forming of regional airlines to provide feeder services from smaller communities to larger towns, where air passengers could connect to the major. The government also encouraged regional airline growth with the goal of making convenient air travel within the geographical reach of every American. Some examples of the original regional airlines sanctioned by the Civil Aeronautics Board in the 1940s and 1950s include:
- Frontier Airlines
- Allegheny Airlines
- Bonanza Airlines
- Mohawk Airlines
- North Central Airlines
- Piedmont Airlines
- Southern Airways
- West Coast Airlines Of the airlines listed above, none survives today. Some airlines use these names today; however, they are not the corporate successors to the original airlines.

European regional airlines

European regional airlines serve the intra-continental sector in Europe. They provide essential services for many of the continent's peripheral regions and are a major factor in the provision of transportation services intended to bind together the new European Community accession states with "traditional" Europe. Some of Europe's regional airlines are subsidiaries of national air carriers, though there remains a strong entrepreneurial sector of independents. They are based on a variety of business models, from the "traditional" scheduled carrier through low cost airlines. Innovations are being tried by some airlines including one which is structured as a membership club that one must join before being allowed to fly on it. Some examples of European regional airlines include:
- Air Wales
- VLM
- EuroManx
- Cimber Air
- Styrian Spirit

External links


- [http://www.raa.org Regional Airlines Association (US)]
- [http://www.regionalaviationpartners.org/Home/home.html Regional Airline Partners (US)]
- [http://www.eraa.org European Regions Airline Association (EU)]
- [http://www.raaa.com.au Regional Aviation Association of Australia (Aus)] Category:Airlines

1960s

The 1960s in its most obvious sense refers to the decade between 1960 and 1969, but the expression has taken on a wider meaning over the past twenty years. The Sixties has come to refer to the complex of inter-related cultural and political events which occurred in approximately that period, in western countries, particularly Britain, France, the United States and West Germany. Social upheaval was not limited to just these nations, reaching large scale in nations such as Japan, Mexico and Canada as well. The term is used both nostalgically by those who participated in those events, and pejoratively by those who regard the time as a period whose harmful effects are still being felt today. The decade was also labelled the Swinging Sixties because of the libertine attitudes that emerged during the decade. Popular memory has conflated into the Sixties some events which did not actually occur during the period. For example, although some of the most dramatic events of the American civil rights movement occurred in the early 1960s, the movement had already began in earnest during the 1950s. On the other hand, the rise of feminism and gay rights began only in the very late 1960s and did not fully flower until the Seventies. However, the "Sixties" has become synonymous with all the new, exciting, radical, subversive and/or dangerous (according to one's viewpoint) events and trends of the period.

Events and trends

Many of the trends of the 1960s were due to the demographic changes brought about by the baby boom generation, the height of the Cold War, and the dissolution of European colonial empires. The rise in social revolution, civil rights movements, human rights movement, anti-War movements, and the Counterculture movement are only some of the characteristics that defined the 1960s. Many experts attribute the 1960s "counter-culture revolution" as being the result of the major social and political factors that rose in the 1950s like brinksmanship, continued fighting in the 3rd world, and a return to pre-WWII lifestyle. The new generation was determined to reject a pre-WWII conformist lifestyle with men in suits and women in the kitchen. While many believed it to be just a "Western" phenomenon, the '60s revolution spread far beyond the borders of America and Western Europe. In South America, revolutions were at a height, in the Eastern Bloc, movements were made inspired by the Hungarian Revolution to reject Soviet domination, and in the Middle East attempted to resist Soviet and American domination (see Non-Aligned Movement). Overall, the '60s affected almost the entire globe. It was during this time that protectionist, command, and mixed economies reached their peak...

Technology

Non-Aligned Movement Non-Aligned Movement]
- USSR puts first man (Yuri Gagarin) and first woman (Valentina Tereshkova) in outer space
- The United States puts man on Earth's Moon (see Apollo 11)
- Geosynchronous satellites revolutionize global communications
- Start of the development of algorithmic information theory
- The ARPAnet, precursor of the Internet, is founded in 1969 as a United States Department of Defense project. The numbered series of Request For Comments (RFC) documents begins in order to document the standards and practices of this network, and continues to this day
- Direct Use of the Sun's Energy by pioneer solar-energy scientist Farrington Daniels is published (1964)
- Compact audio cassette introduced; begins to displace reel-to-reel audio tape recording for home users

Science


- Discovery of plate tectonics revolutionizes understanding of continental drift
- Jacques Monod and Francois Jacob discover the lac operon
- Rise of the science of ecology in the awareness of the intelligentsia

War, peace and politics

intelligentsia"]] intelligentsia]
- Cultural Revolution in mainland China causes political and economic chaos.
- Nigerian Civil War begins.
- 6-Day War between Israelis and Arabs in 1967.
- Beginning of The Troubles in Northern Ireland
- Berlin Wall built in 1961.
- Bay of Pigs Invasion in 1961, the United States sponsored an attempt to overthrow Cuba's socialist government and Fidel Castro.
- Civil rights movement in the United States; end of official segregation and disenfranchisement of African-Americans; racial tensions continue with large race riots in Watts (Los Angeles) in 1966, Detroit in 1967, and Hough and Glenville in Cleveland.
- Sino-Indian War in late 1962. China attacks India and gains some land in Kashmir.
- Cuban Missile Crisis in 1962.
- Indo-Pakistani War of 1965 over Kashmir ends in a stalemate.
- The Vietnam War and protests, leading to Kent State University shootings in May, 1970.
- Suppression of uprising in Czechoslovakia.
- The Stonewall Riots in New York City give birth to the gay rights movement, June 1969.
- United Nations imposes sanctions against South Africa to protest the policy of Apartheid.
- Students protesting perceived problems with the status-quo are suppressed with violence by police and soldiers in USA, France, Mexico, Czechoslovakia. See New Left.
- The Quiet Revolution (Révolution tranquille) begins in Quebec - precipitous decline of the Roman Catholic church, liberalism, social-democratic programs, and the birth of modern Quebec nationalism.
- The rise of radical feminism.

Economics


- Many countries in The West experience high economic growth (4 to 8% per year)

Culture


- Rock and roll develops, diversifies, and becomes very hip. The Beatles eclipse Elvis Presley and become the most popular musical artists in the world. "Topical" artists like Bob Dylan and Joan Baez worked social commentary into their music.
- 2001: A Space Odyssey hits movie theaters
- The long running BBC family science fiction show Doctor Who begins in 1963
- Star Trek makes its debut in 1966
- James Bond movies begin. Dr. No is the first of the series in 1962, starring Sean Connery as Bond
- Hippies, drug culture & rock and roll converge at the Woodstock festival, 1969
- In the West, the growing popularity of religions other than Christianity (for example, as discussed in the writings of Alan Watts), and of atheism; Time Magazine asks: "Is God Dead?" See Fourth Great Awakening, Consciousness Revolution
- Memorable expositions, or "World's Fairs," are held in Seattle (1962), New York (1964/1965), Montreal (1967) and San Antonio (1968)
- Progressive rock emerges
- The fine arts begins to move away from exclusively consisting of painting, drawing, and sculpture and begins to incorporate elements from popular culture (Pop art) and begins to favour the ideas behind a work, rather than the work itself (Conceptual art)

Others

Conceptual art built in 1969]]
- Post-Colonialism; many new or previously colonized countries achieve independence in Africa, Asia
- U.S. president John F. Kennedy assassinated in 1963; his brother Robert F. Kennedy assassinated in 1968
- U.S. civil rights leader Martin Luther King Jr. assassinated on April 4, 1968
- Charles Manson gave up his ambitions of becoming a popular song writer to become a cult leader and mass murderer, 1969
- Nation of Islam leader Malcolm X assassinated on February 21, 1965
- U.S. president Lyndon B. Johnson's Great Society program
- In the United States, increase in crime; riots in Los Angeles in 1965 and Chicago, Illinois at the 1968 Democratic National Convention
- Rise of the bab