module specification

This module serves as a comprehensive exploration and elucidation of the fundamental principles that underpin both micro and macroeconomics, essential for grasping the intricacies of airport and airline operations. Within this framework, the module delves into the analysis of supply and demand, explores the principles governing costs, revenue, and pricing dynamics, and explains concepts related to the productivity and performance of airlines and airports. Additionally, the module will introduce the concept of market failure and look into the economic facets specific to the airline and airport industries, incorporating industry benchmarks crucial for evaluating their overall performance.

 The module endeavors to equip students with the following:

A systematic knowledge and profound understanding of both microeconomic and macroeconomic principles, fostering the capability to adeptly apply these concepts within the unique context of the aviation sector.

The ability to discern and differentiate between the diverse costs inherent to airlines and airports, and a keen awareness of how these costs intricately impact overall profitability.

Proficiency in comprehending and manipulating data derived from diverse sources, facilitating the evaluation of sector performance with adequate scrutiny.

Moreover, the module is designed to cultivate a spectrum of essential skills among students, including academic study skills, proficiency in information technology, literacy, applied analytical capabilities, entrepreneurial thinking, critical reasoning, interpersonal and team-working abilities, effective communication (including oral presentation), and adept problem-solving skills.

An Overview of the Air Transport Industry 

Challenges, threats and Opportunities

Financial condition of the industry

Economic factors affecting the industry 

Global outlook for the industry

Key concepts in economics and their application to the Air Transport Industry

Principles of Economics

Supply and demand analysis, elasticity 

Costs, revenues and profit maximisation 

Theories of the firm: Perfect competition and monopoly 

Introduction to imperfect competition 

Market efficiency and market failure 

Business Models of airline and airports  

Introduction to international trade. 

Scope of economics as it relates to airlines 

The role of the economic system within aviation 

Market equilibriums 

Pricing, load factors and yield management 

Non – aeronautical revenues 

Airport ownership and pricing 

Aircraft leasing 

International economics and aviation 

Open skies 

Competitive market structures 

Airline and Airport Performance indicators 

The formal delivery of the teaching and learning for this module will be structured around three contact hours per week spread over 12 weeks, with an additional enrichment week. This format includes a three-hour workshop comprising lecture and seminar periods.

Various teaching and learning techniques will be employed throughout the module, including lectures, guest speakers, case study discussions, panel discussions, debates, online videos, scenario-based activities, and simulations. The learning experience is enriched through proactive engagement with Weblearn facilities, fostering interactive discussions among peers and lecturers. This platform allows learners to share resources and access external journal articles, websites, and other relevant sources.

Active participation in discussions and debates is actively encouraged, both in the classroom and via Weblearn. Given the diverse backgrounds of students, drawing upon their industry experiences contributes significantly to the learning environment. Proactive and interactive classroom management facilitates the exchange of valuable insights.

Students are expected to prepare for upcoming lectures by accessing module specifications online or via Weblearn, ensuring a comprehensive understanding of discussed concepts and active participation in debates. Lecture content is recorded for reinforcement, with additional materials provided on Weblearn for further reading.

To aid preparation, tutors will outline forthcoming lecture content at the beginning of the term and after each preceding lecture. Students are encouraged to research articles and relevant readings around these themes, enabling them to contribute effectively to discussions and interactive Q&A sessions during lectures.

Reflective learning opportunities are embedded throughout the module, allowing students to contemplate their approach to tasks and discussions. Informal feedback from lecturers on class ideas and submitted assessments further enhances the reflective learning experienceTop of Form.Bottom of Form

On successful completion of this module, students will be able to: 

Demonstrate a comprehensive understanding and adept application of fundamental micro and macro-economic concepts, including but not limited to opportunity cost, elasticity, economic profit, and marginal analysis. They will showcase the ability to proficiently incorporate these concepts into coursework and examination problems, while also articulating a clear explanation of these principles from their foundational principles.

Develop a nuanced understanding of business models within the aviation industry, coupled with the ability to critically evaluate various types of competition. This will encompass a deep comprehension of the underlying principles governing pricing, costs, and load factors, demonstrating an awareness of their implications on industry dynamics.

Exhibit analytical and evaluative skills in addressing diverse economic challenges as they manifest within the transport industry. Students will showcase their ability to discern and assess responses to these challenges, recognizing the existence of both practical and theoretical approaches, thereby demonstrating a good grasp of the multifaceted nature of economic problem-solving in this specific domain.

Core Texts

Bijan, V. (2018). Introduction to Air Transport Economics: From Theory to Applications. £rd Edition

Wensveen, J.G (2018). Air Transportation. A management perspective. 8th Edition

Cowen, T and Tabarrok, A. (2018). Modern Principles of Economics. 4th Edition

Doganis, R. (2019). Flying Off Course: Airline Economics and Marketing. 5th Edition.

Holloway, S. (2008). Straight and Level. Practical airline economics. 3rd Edition.

Ancillary Reading

Belobaba, P. (2015). The Global Airline Industry. 2nd Edition.

Frank, R. (2009). The return of the Economic Naturalist: how economics makes sense of your world. 2nd Edition.

Graham, A. (2018). Managing Airports. 5th Edition

Pilarski, A. (2007). Why Can’t We Make Money in Aviation?. 3rd edition.

Library Talis link https://rl.talis.com/3/londonmet/lists/8B5C5794-A5F5-2B24-CA54-E88878C98896.html?lang=en