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The Economics of Air Transport Through Examples and Case Studies

via Aeroclass

Overview

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Course description


In this course we go through different economic tools, techniques and analytical frameworks along with various economic performance indicators, and economic drivers to help us to understand what has happened in the industry, how it has evolved, how and why it operates as it does and, importantly, to also give us some clues on how to forecast and make the right decisions in the future.


Course outcomes


At the end of this course, participants will be able to:


  • Understand a range of economic issues, activities and concepts relating to air travel, including the economic factors which influence and drive developments in the industry 
  • Be equipped with the basic tools and techniques of economic analysis
  • Gain insight into an economist’s ‘perspective’ or way of thinking
  • Describe what ‘air transport economic’ is what the linkages, decisions & interactions between economic agents are


Who should attend


  • Industry Analysts
  • Airline Managers 
  • Communication managers 
  • Forecasters
  • Revenue Managers
  • Station Managers
  • Entry level managers at airline and airport
  • Civil Aviation Authorities professionals 


Syllabus

Air Cargo & International Trade

  • Course overview
  • Facts & figures
  • The economic value of air cargo
  • Key challenges in the period ahead
  • Summary
  • Quiz

Business Models and Structural Change

  • Module overview
  • Structural change
  • Business models
  • Key characteristics or points of difference
  • Key drivers of business model evolution
  • Unbundling and ancillary revenue
  • How best to compete?
  • Summary
  • Quiz

Course Overview

  • Course outline

The Economic Value of Air Transport

  • Module overview
  • The industry ecosystem
  • Connectivity
  • The economic benefits of aviation
  • Summary
  • Quiz

The Economics of Industry Profitability

  • Module overview
  • Revenue
  • Price elasticity of demand
  • Cost
  • The three main types of costs
  • Exchange rates
  • Summary
  • Quiz

Fundamental Concepts & Definitions

  • Module overview
  • Economics basics
  • The circular flow model of the economy
  • The economic concept of a 'market'
  • Economic output - goods and services
  • Typical assumptions about economic behaviour
  • Three important economic concepts
  • Economies of scale
  • Air transport basics
  • Freedoms of the air
  • Basic measurements of air transport economics
  • Some definitions
  • Airline operations - hub & spoke vs point to point
  • Summary
  • Quiz

Long-term Industry Drivers & Prospects

  • Module overview
  • Long-run drivers of demand
  • The long-run outlook
  • Air cargo
  • Airline trends over the medium-long term
  • Summary
  • Quiz

Market Structure & Economic Regulation

  • Module overview
  • Market structures and economic performance
  • How do companies compete?
  • Why does competition matter?
  • Market failure
  • Regulation
  • Principles of regulatory best practice
  • An example of regulatory 'failure'
  • Challenges for regulation
  • Summary
  • Quiz

A Snapshot of the Industry

  • Module overview
  • Passenger & cargo
  • Financial performance
  • Recovery – where to from here?
  • Economic factors impacting the industry
  • Summary
  • Quiz

Supply and Demand

  • Module overview
  • Supply
  • Demand
  • Market equilibrium
  • How is supply & demand relevant to air transport?
  • Summary
  • Quiz

Course Outline and Objectives

  • Instructor introduction
  • Course objectives
  • Course outline

Taught by

Andrew Matters

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