CA4058 - Introduction to Air Transport Economics (2024/25)
Module specification | Module approved to run in 2024/25 | ||||||||||
Module title | Introduction to Air Transport Economics | ||||||||||
Module level | Certificate (04) | ||||||||||
Credit rating for module | 15 | ||||||||||
School | Guildhall School of Business and Law | ||||||||||
Total study hours | 150 | ||||||||||
|
|||||||||||
Assessment components |
|
||||||||||
Running in 2024/25(Please note that module timeslots are subject to change) |
|
Module summary
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.
Syllabus
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
Balance of independent study and scheduled teaching activity
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
Learning outcomes
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.
Bibliography
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