Handbook

This course covers the economics of airlines, and starts by introducing students to the language and data of the aviation business before analysing the economics of the demand for, and supply of aviation services. The analysis of airline demand focuses on the drivers of demand, travel purposes, mode of transport substitution, destination substitution, demand complements and the various price elasticities of demand. The course then explores the supply-side of the aviation business, which involves an investigation of airline revenue in the short and medium runs, airline cost and profitability. Students will investigate the curvature of the airline profit function and how it may be optimised. The course then moves onto additional topics in aviation economics such as airline relationships and the economics of oil and jet fuel markets. Students are provided with a variety of learning opportunities during the course through a combination of online and face-to-face lectures, and case-based activities that align the course material with current issues in aviation and foster meaningful discussion.