economic essay 8 pages due in 48 hours

1

Economics 2166F-001

ECONOMICS OF

AIR TRANSPORTATION

Instructor

• Professor T. Chung

• Office: SSC 4079

• Phone: 519-661-2111 Ext. 85512

• E-mail: [email protected]

• Course Homepage: UWO OWL

https://owl.uwo.ca/

• Office Hours: Wed. 1 pm – 3 pm

• Undergraduate Enquiries: 519-661-3507

SSC room 4075

[email protected]

Course Description

To introduce students to the economic foundations

of the air transportation industry.

Microeconomic theory will be developed within the

context of the aviation industry including supply,

demand, and cost and production analysis.

This theory will be used to investigate topics

including market structure; firm structure and

business models; aviation infrastructure;

dynamic pricing policy and revenue management;

public policy and regulation.

Prerequisite

• The prerequisite for this course is

Economics 1021A/B and 1022A/B, or

Economics 2001A/B.

Other related courses

• Econ2150 Intermediate Microeconomic Theory I

• Econ2151 Intermediate Microeconomic Theory II

• Econ2165 Industrial Organization

2

Textbook

Bijan Vasigh, Ken Fleming and Thomas Tacker, 2013

Introduction to Air Transport Economics: From

Theory to Applications, 2nd Edition, Ashgate.

Grading

• Midterm Exam: 30 points – Oct. 30

• Final Exam: 40 points

• Essay: 20 points

• Class Participation 10 points

Rules on class attendance

• A half point will be deducted for each absent hour (from class participation points).

• Each student gets free allowance for three absent hours. For example, if you were absent five hours, only one point will be deducted.

• No excuses will be accepted for absence unless officially documented.

• A student who is absent for twelve hours or more will get ‘F’ regardless of other achievement in the course.

EMAIL POLICIES

• UWO Email Addresses Only

• Subject Line MUST include Course number –

EC2166

• Unacceptable Emails – questions that may be answered on OWL or on this course outline

– asking when grades will be posted

– asking what grade a student received

– asking where or when an exam is scheduled or the material

covered on an exam, requests for grade increases,

extra assignments, or reweighting of course components

Course Learning Outcomes

1. Students will learn to identify key determinants of supply and demand

in the context of air transportation and interpret how these factors affect

the coordination of markets.

2. Students will learn to distinguish between economies of scale, scope

and density and explain how various industry cost structures shape

management decision rules and firm structure in the aviation industry.

3. Students will learn to compare industry pricing strategies and interpret

how these strategies are influenced by market structure, elasticity of

demand, and forecasting methods.

4. Students will learn to apply revenue management techniques to

determine optimal pricing strategies for different fare classes.

5. Students will learn to analyze government regulation and policies and

interpret how such policies may affect market equilibrium, aviation safety

, and industry sustainability.

Total passenger traffic trend

3

RPK (RPM)

Useful web links

• http://www.iata.org/

• http://www.atag.org/

Summary

• Aviation industry is a large and growing

segment of our economy.

• Some unique features of the industry can

best be understood in the context of

economic analysis.