module specification

The module introduces the key themes and understanding for the development of new routes and successful interpretation of airline pricing and revenue management and strategic positioning.  The importance of route development cannot be underestimated and is a combination of issues such as the markets available and the ability of the airline to launch operations into the market successfully by managing pricing and products in an appropriate manner.  All successful airlines need to master their market position and technical competencies to ensure success. Pricing and revenue management are at the heart of every airlines competency and thus of paramount importance. Strategic positions require airlines to understand the competitive environment.

The module introduces the key aspects of the business and marketing management of airlines and airports that are critical to their success and development. Understanding the key issues underpinning airline and airport performance is critical to the success of all operators, and is dependent upon sound understanding of the sector’s economics and business practices.

INDICATIVE CONTENT – includes the following areas of study:

Airline Operations:

• Route feasibility studies – new route development
• Understanding aircraft performance and selection factors
• the airline operational planning process (fleet and route planning)
• approaches to airline schedule optimisation (schedules, crewing, maintenance)
• supply channel management
• managing ground and air handling operations and in-flight service
• overview of quality management systems for airlines
• managing disruption and service recovery
• customer services management LO1

Pricing and revenue management:

• Overview of the historic developments in airline pricing and fares
• The role of IATA in the bank settlement plan
• Modern revenue management principles
• Current airline demand characteristics
• airline fare structure
• airline pricing strategies
• cost, demand, service and competition
• differential pricing
• seat inventory control
• overbooking
• scheduling and capacity adjustment
• performance monitoring LO2

Strategy:

• Strategic management concepts, processes and models
• Changing global and business environments and the implications for airlines and airports
• Situation analysis-based strategic planning
• Business, corporate and international strategy
• The role of sales and marketing
• Creating and sustaining strategic competitive advantage through value creation LO3

The formal delivery of the teaching and learning will consist of three-hour weekly workshops involving lecture/seminar periods, and include formal and guest lectures, case studies, panel discussions and debates, films and DVDs, and scenario-based activities.

Within the module, there is significant opportunity to participate in proactive learning activities via the use of Weblearn (VLE) facilities, which promote inter-active discussions between both peers and lecturers and enables learners to share resources and access links to external journal articles, websites and other sources.

Discussion and debate are actively encouraged both within the classroom context and via Weblearn. Students participating in this degree come from a variety of backgrounds and often have a wealth of industry experience upon which to draw. It is useful to access this via proactive and inter-active classroom management. Students have a responsibility to prepare for forthcoming lectures to ensure that they understand the concepts discussed and participate fully in debates and discussions.

Tutors will provide an indication of forthcoming lecture content at the end of each preceding lecture. The student should then research articles and textbooks as appropriate around these themes to contribute fully to discussions and inter-active Question and Answer sessions within the lecture.

Opportunities for reflective learning will be available throughout the module as students will consider their approach to tasks and discussions whilst simultaneously reflect upon informal feedback from lecturers on ideas and concepts spoken in class, and on assessments.

Upon completing successfully this module the student will demonstrate capability to:

1. Recognise and explain the key principles and key components of airline operations planning, including supply channel management, scheduling, and operational optimisation (LO1)

2. Analyse and evaluate pricing and revenue management strategies that are appropriate to different business models and market environments (LO2)

3. Apply strategic business management principles to critically evaluate airline and airport management practice (LO3)

The assessment strategy will involve three elements, including two elements of coursework and one presentation as follows:

• A route evaluation exercise in small groups, using a forecasting tool for route development
• An individual report on the pricing policy for revenue management for an area of sale
• A Presentation of a business plan for a new route start-up for an airport

LEARNING RESOURCES FOR AIRLINE OPERATIONS:

Belobaba, P, Odoni, A. & Barnhart, C. (Eds.). (2015). The Global Airline Industry (2nd ed.). Chichester, West Sussex: Wiley Blackwell.

Budd, L. and Ison, S. (2017) (Eds.). Air Transport Management: an International Perspective. Abingdon, Oxon: Routledge.

Doganis, R. (2006) The Airline Business (2nd ed.). Abingdon: Routledge.

Shaw, S. (2011). Airline Marketing and Management (7th ed.). Farnham: Ashgate.

Taneja, N. (2014). Designing Future-Oriented Airline Businesses. Farnham: Ashgate.

Wensveen, J. (2015/2016). Air Transportation: a Management Perspective. Abingdon, Oxon: Routledge.

Examples of Journal articles :
Fageda, X., Suau-Sanchez, P. and Mason, K. (2015). The evolving low-cost business model: Network implications of fare-bundling and connecting flights in Europe. Journal of Air Transport Management, 42, 289-296.

Examples of Industry Sources :
Air Transport World :  http://atwonline.com/ 
IATA :  International Air Transport Association :  http://www.iata.org
ICAO : International Civil Aviation Organization. https://www.icao.int/about-icao
MarketLine Airlines Industry Profile
Mintel  Academic: latest aviation industry analyses

LEARNING RESOURCES FOR CORPORATE PLANNING:

Ashford, N.J., Coutu, P. & Beasley, J. (2012) Airport Operations, (3rd ed.). McGraw-Hill Education

Belobaba, P, Odoni, A. & Barnhart, C. (Eds.). (2015). The Global Airline Industry (2nd ed.). Chichester, West Sussex: Wiley Blackwell.

Budd, L. and Ison, S. (2017) (Eds.). Air Transport Management: an International Perspective. Abingdon, Oxon: Routledge.

De Neufville, R., Odoni, A., Belobaba, P. and Reynolds, T. (2013) Airport Systems: Planning, Design and Management, (2nd ed.). Mcgraw-Hill

Doganis, R. (2006) The Airline Business (2nd ed.). Abingdon: Routledge.

Graham A. (2013) Managing Airports: an International Perspective, (4th ed.). Abingdon: Routledge

Johnson G., Whittington, R., Scholes, K., Angwin, D., Regnar, P.  (2015) Fundamentals of Strategy, (3nd ed.). Harlow: Pearson Education Limited

Prather, C.D. & Steele, R.N. (2015) Airport Management, Aviation Supplies and Academics, Inc.

Price, J. & Forrest, J. (2016) Practical Airport Operations, Safety, and Emergency Management: Protocols for Today and the Future, Butterworth-Heinemann

Shaw, S. (2011). Airline Marketing and Management (7th ed.). Farnham: Ashgate.

Taneja, N. (2014). Designing Future-Oriented Airline Businesses. Farnham: Ashgate.

Wensveen, J. (2015/2016). Air Transportation: a Management Perspective. Abingdon, Oxon: Routledge.

Young, S. & Wells, A.T. (2011) Airport Planning and Management, (6th ed.). McGraw-Hill

Journals:

• Journal of Airline and Airport Management
• Journal of Air Transport Management
• Journal of Air Transportation
• Journal of Transport Geography
• International Journal of Civil Aviation
• International Journal of Transport Management

Industry bodies examples

CAA  http://www.caa.co.uk/
FAA http://www.faa.gov/
IATA  http://www.iata.org/Pages/default.aspx
ICAO http://www.icao.int/Pages/default.aspx

LEARNING RESOURCES FOR PRICING AND REVENUE MANAGEMENT:

Belobaba, P., Odoni, A. & Barnhart, C. (Eds.) (2016) The Global Airline Industry (2nd ed.), Chichester: Wiley

Boyd, E.A. (2007) The Future of Pricing: How Airline Ticket Pricing Has Inspired a Revolution, Palgrave Macmillan

Cento, A. (2010) The Airline Industry: Challenges in the 21st Century (Contributions to Economics) Physica-Verlag

Cook, G.N. & Billig, B. (2017) Airline Operations and Management: A Management Textbook, Abingdon: Routledge

Philips, R. (20050 Pricing and Revenue Optimization, Stanford: Stanford University Press