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Introduction to Air Transport Economics: From Theory to Applications uniquely merges the institutional and technical aspects of the aviation industry with their theoretical economic underpinnings. In one comprehensive textbook it applies economic theory to all aspects of the aviation industry, bringing together the numerous and informative articles and institutional developments that have characterized the field of airline economics in the last two decades as well as adding a number of areas original to an aviation text. Its integrative approach offers a fresh point of view that will find favor with many students of aviation. The book offers a self-contained theory and applications-oriented text for any individual intent on entering the aviation industry as a practicing professional in the management area. It will be of greatest relevance to undergraduate and graduate students interested in obtaining a more complete understanding of the economics of the aviation industry. It will also appeal to many professionals who seek an accessible and practical explanation of the underlying economic forces that shape the industry. The second edition has been extensively updated throughout. It features new coverage of macroeconomics for managers, expanded analysis of modern revenue management and pricing decisions, and also reflects the many significant developments that have occurred since the original’s publication. Instructors will find this modernized edition easier to use in class, and suitable to a wider variety of undergraduate or graduate course structures, while industry practitioners and all readers will find it more intuitively organized and more user friendly.
This book offers material for strategic thinking featuring contributions from key figures in Europe, the US and Asia. The focus of the book expands from economic to legal issues, bankruptcy and safety and security. The carefully selected papers offer a thorough and structured analysis of major current developments in the air transport industry. Fully up to date, topics covered include competitive strength, capacity utilisation and risk. The most likely future scenarios are more or less known. Only, the timeframe remains uncertain. The speed at which the various market players in the air transport chain will implement their strategies remains the key question. This depends on a whole range of exogenous and endogenous variables, as this book aspires to demonstrate. As both an overview of the current issues affecting the industry and as a cohesive set of strategic documents, therefore, this collection will prove invaluable for policy makers and researchers alike.
The air transport industry has high economic impact; it supports more than 60 million jobs worldwide. Since the early years of commercial air travel, passenger numbers have grown tremendously. However, for decades airlines’ financial results have been swinging between profits and losses. The airline industry’s aggregate net average profit between 1970 and 2010 was close to zero, which implies bankruptcies and layoffs in downturns. The profit cycle’s amplitude has been rising over time, which means that problems have become increasingly severe and also shows that the industry may not have learned from the past. More stable financial results could not only facilitate airline management decisions and improve investors’ confidence but also preserve employment. This book offers a thorough understanding of the airline profit cycle’s causes and drivers, and it presents measures to achieve a higher and more stable profitability level. This is the first in-depth examination of the airline profit cycle. The airline industry is modelled as a complex dynamic system, which is used for quantitative simulations of ‘what if’ scenarios. These experiments reveal that the general economic environment, such as GDP or fuel price developments, influence the airline industry’s profitability pattern as well as certain regulations or aircraft manufactures’ policies. Yet despite all circumstances, simulations show that airlines’ own management decisions are sufficient to generate higher and more stable profits in the industry. This book is useful for aviation industry decision makers, investors, policy makers, and researchers because it explains why the airline industry earns or loses money. This knowledge will advance forecasting and market intelligence. Furthermore, the book offers practitioners different suggestions to sustainably improve the airline industry’s profitability. The book is also recommended as a case study for system analysis as well as industry cyclicality at graduate or postgraduate level for courses such as engineering, economics, or management.
The aviation industry is a major driver of world trade. As global markets and economies are constantly evolving, practitioners and academics need more quality information and a broader perspective of aviation management rather than just silo-based knowledge, particularly if they wish to move up the management ladder and progress. Air Transport Management presents the dynamic shifts which have influenced structural changes in the aviation industry, such as the emergence of low cost carriers. These changes have transformed the market, leading to deregulation and consolidation. The author provides a viable road map aimed at giving students and managers in the aviation industry a rigorous understanding on how to manage strategically in complex and turbulent market conditions. Air Transport Management examines the airline industry structure in terms of entry barriers, competition dynamics and competing business models. With the inclusion of fascinating case studies, this handbook assesses different business models used by international companies and proposes best fit management practices which airlines should follow in order to survive.