Throughout the course of your studies, you will have so far studied material that has been focused on a specific role or roles within the air transport industry whether it be aircraft design, maintenance, operations or repair and overhaul. The aim of this module is to take a step back and explore how employers within the various sectors of the air transport industry combine all these functions in order to make a profit.
In addition to looking in detail at the overall profit and loss equation:
Traffic x Yield - Output x Cost = Profit or Loss
The module also compares the operation of the air transport market with that in other sectors and, in more general terms, looks at what makes the industry tick. The standard method of recording and reporting financial performance is also considered.
On successful completion of this module, you will not only understand how your future role will contribute to your employer's success but, should you decide to move away from the air transport sector, you will have a firm grounding in the general economic principles by which all industries operate.
On successful completion of the module, students will be able to:
History of air transport industry, regulation and deregulation, demand and supply for air travel, forecasting demand, cost of air transport, pricing policy and revenue management, business models, network design, fleet selection and acquisition, impact of operational and environmental performance, airport operations and economics.
The macro and micro business environment, analysing industries, profit and loss, balance sheet and cash flow, sources of finance, analysing accounts, market segmentation, targeting and positioning, growth strategies, mergers and acquisitions, joint ventures and alliances, budgets, international business, trade barriers, globalisation.
Although strongly influenced by its history, the air transport industry is constantly evolving and is seldom out of the press. The formal lectures will present the core information required for understanding of the topic. Students will be encouraged to read round the topic in both academic journals and in the daily newspapers, aspects from both of which will be discussed during tutorial sessions and during the lectures. As much of the material presented is out of the typical students' comfort zone, it can appear somewhat dry. This is ameliorated by using up-to-date illustrations, many of which the students are encouraged to find for themselves in newspapers, blogs etc.
| Definitive UNISTATS Category | Indicative Description | Hours |
|---|---|---|
| Scheduled learning and teaching | 33 two hour lectures 11 two hour tutorial sessions 5 two hour practical sessions | 66 22 10 |
| Guided independent study | 202 | |
| Total (number of credits x 10) | 300 | |
Summative assessment is made up from:
The coursework will typically consist of an essay on an air transport related topic and an on-line time-limited multiple choice test. There will be a final summative short and long answer 3 hour examination (50%). A range of formative tests and/or daily/weekly questions will be undertaken in class. These will be of relatively short duration and provide the student with regular, detailed feedback so that they can develop an awareness of their rate and level of progress and of their strengths and weaknesses. On-going discussion with both the personal tutor and module leader will assist the student in the development of strategies for improvement and enhancement of their understanding.
| Learning Outcome | Assessment Strategy |
|---|---|
| Assess the potential impact of an airline's business strategy. | Coursework Final examination |
| Discuss the major determinants of air transport supply, demand and cost. | Coursework Final examination |
| Analyse business accounts and, thereby, be able to describe company performance. | Coursework Final examination |
| By means of the appropriate planning and analysis, assess the options open to a business at any stage in its life cycle. | Coursework Final examination |
| Description of Assessment | Definitive UNISTATS Categories | Percentage |
|---|---|---|
| In class test | Written exam | 20% |
| Written assignment | Coursework | 30% |
| 3 hour examination | Written exam | 50% |
| Total (to equal 100%) | 100% | |
It IS NOT a requirement that any element of assessment is passed separately in order to achieve an overall pass for the module.
Stephen Holloway, Straight and Level: Practical Airline Economics, 3rd Edition, Ashgate, 2008, ISBN 0754672581.
Ian Worthington and Chris Britton, The Business Environment, 7th Edition, 2014 ISBN 0273756729.
Peter Atrill and Eddie McLaney, Accounting and Finance for Non Specialists, 9th Edition, 2014, ISBN 1292062711.
Bijan Vasigh et al, Introduction to Air Transport Economics, Ashgate, 2013, ISBN 1409454878
Rigas Doganis, Flying of Course: The Economics of International Airlines, 4th Edition, Routledge, 2009, ISBN 0415447372
John Wensveen, Air Transportation: A Management Perspective, 8th Edition, Ashgate, 2015, ISBN 1472436814
Anthony Curtis, Business and Marketing for Engineers and Scientists, McGraw Hill, 1994, ISBN 0077078683
R Dixon, The Management Task, Institute of Management Foundation, Butterworth-Heinemann, 1993, ISBN 0750606711
Mike Harrison, Principles of Operations Management, FT Prentice Hall, 1996, ISBN 0273614509