Course Outline

MBAA 523 : Advanced Aviation Economics

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Last approved: Wed, 20 Jan 2016 13:54:33 GMT

Last edit: Wed, 20 Jan 2016 13:54:32 GMT

College of Business (WBUAD)
Advanced Aviation Economics
This course pursues an economic analysis of the global airline industry. Topics include the history and economic rationale of government regulation and the effects of worldwide liberalization, demand for air transportation and modeling, pricing and revenue management, supply and route architecture, cost structure and methods of control, and fleet selection and financing.

This is a required course for the Master of Business Administration in Aviation (MBAA) degree program. The course is designed to provide the student with the ability to apply fundamental concepts of managerial economics to the global airline industry. Students will understand the nature of air transportation demand and airline supply, the economic foundation for airline pricing and the complex methodology for managing passenger and freight fares, airline costs and methods of control, and fleet management. Economic theory is applied to current airline management challenges and placed within the greater context of strategic management. Exams and assignments are analytical in nature, requiring the student to bring together a variety of economic concepts. Students will have a broad understanding of airline economics upon satisfactory completion of the course.

Upon course completion, the student will be able to:

1. Describe the role of economic analysis and its application within strategic and tactical management of the global airline industry.

2. Assess the potential for regional air transportation growth given the nature of air Travel demand including the application of factors that drive demand.

3. Describe airline cost structure, the nature of fixed, variable, and controllable costs, and methods of control employed by network and low-fare carriers, and demonstrate the application of airline costs to fleet selection.

4. Explain the major segments of passenger and cargo demand classified by price elasticity of demand.

5. Contrast the various product and route structure alternatives, including the costs and benefits of each, and means for achieving product differentiation, and describe and give examples of various passenger and cargo business models.

6. Compare and contrast competing airline products and assess potential for meeting targeted customer segments and profitability.

7. Describe the economic market types and contrast the pricing and output decisions of firms.

8. Explain the theory of price discrimination and its application to revenue management in the airline and other industries.

9. Discuss the regulatory history of international air transportation and the evolution toward liberalization and competitive markets, and assess the affect of liberalization on air transport growth, product development and pricing.

10. Compare and contrast the economics of the global air freight market with passenger service.

Located on the Daytona Beach Campus, the Jack R. Hunt Library is the primary library for all students of the Worldwide Campus. The Chief Academic Officer strongly recommends that every faculty member, where appropriate, require all students in his or her classes to access the Hunt Library or a comparable college-level local library for research. The results of this research can be used for class projects such as research papers, group discussion, or individual presentations. Students should feel comfortable with using the resources of the library. 

Web & Chat:
Text: (386) 968-8843
Library Phone:  (386) 226-7656 or (800) 678-9428


Written assignments must be formatted in accordance with the current edition of the Publication Manual of the American Psychological Association (APA) unless otherwise instructed in individual assignments.

ActivityPercent of Grade
Input Grading Item100

Undergraduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
60 - 69% D
0 - 60% F

Graduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
0 - 69% F
Gerald N. Cook, D.B.A. - 7/6/2015
Dixie Button - 7/6/2015
Ronald Mau, Ph.D., P.E. - 7/6/2015
Dr. Bobby McMasters - 7/6/2015
Key: 297