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.