Course Outline

ECON 420 : Economics of Air Transportation

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Last approved: Mon, 11 Jan 2016 19:36:30 GMT

Last edit: Mon, 11 Jan 2016 19:36:29 GMT

College of Arts & Sciences (WARSC)
Economics of Air Transportation
In this course, students will explore the economic aspects of airline service with consideration given to the impact of federal aid and regulation, types of aircraft, airport problems, consumer interests and competitive practices.

The course will prepare the student in the application of managerial principles to aviation, show the philosophical and legal premises for the elaborate governmental machinery which regulates aviation transportation, provide aviation related economic concepts and guidance available to air transportation management and provide examples of the competition between airlines as reflected in rates, scheduling, and capital investment.

Upon completion of the course, students will be able to do the following:

1. Recognize the structure of air transportation, economic regulation and deregulation, and the market structure of the industry.

2. Explain the economic objectives achieved by air transportation, and the motives of governments regarding air services.

3. Appraise the impact of government regulation on the U.S. air transport system, the reasons for increasing traffic dispersion with the United States, and the causes for development of a subsidiary feeder system.

4. Explain the policies regarding airline market entry and exit, and analyze industry take-over attempts or mergers with respect to Federal Antitrust Laws.

5. Recognize federally required accounting procedures and the cost structures of common, separable, out-of-pocket, and fully allocated costs, and analyze the advantages and disadvantages associated with line-haul costs.

6. Define the airline production function and factor costs, contrast labor and capital intensive nations, recognize the impact of advancing technological standards, and identify the monopolistic aspect of airport costs to the airline operator.

7. Analyze the demand characteristics for airline services, develop traffic estimations, and recognize the limitations of Fruham's S-curve theory with respect to carrier market shares.

8. Explain the basic factors that determine airline rates, analyze and develop pricing models possible under price deregulation, recognize the disadvantages of discount pricing, and discuss the future of free competitive pricing.

9. Prepare formal research paper in proper APA format applying economic principles to a current issue in the airline industry.

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

a. Reference publications/supplemental readings: • Aviation Week and Space Technology • Wall Street Journal • Business Week • New York Times • Washington Post • Current airline Internet resources b. Audio visual materials: • None. c. Special equipment: • None.

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
Kelly Whealan George - 3/25/2015
Kelly Whealan George - 3/25/2015
Alan Bender - 3/25/2015
Dr. James Schultz – 3/25/2015
1-14 General Education of Arts and Sciences PO1 - Apply knowledge of college level mathematics to defining and solving problems.
PO2 - Apply statistical methods in the analysis and interpretation of data for the purpose of drawing valid conclusions relating to the solutions of problems.
PO3 - Communicate ideas in written form in both technical and non-technical areas.
PO4 - Communicate ideas in non-written form, such as through oral presentations or visual media.
PO5 - Recognize the importance of professional, ethical and social responsibility.
PO6 - Understand the natural world, to include the impact of the environment on aerospace operations and aerospace operations on the environment, as well as everyday life and professional experiences.
PO7 - Use digitally-enabled technology to organize and manipulate data, perform calculations, aid in solving problems, and communicate solutions, ideas, and concepts.
PO8 - Use scientific information in critical thinking and decision-making processes.
PO9 - Function on multi-cultural and/or multi-disciplinary teams.
PO10 - Apply economic principles to identify, formulate, and solve problems within professional and personal environments.
PO11 - Identify and participate in professional and personal development activities through organizations and self-directed learning.
PO12 - Understand contemporary issues in society.
PO13 - Recognize the complexity and diversity of the human experience, including cultural, aesthetic, psychological, philosophical, and spiritual dimensions.
PO14 - Conduct and report research in accordance with professional standards.
Key: 87