emphasis is one of the world’s most important industries—commercial aviation. Below (not necessarily in chronological order) are the topics and concepts that will be covered and that students should be able to grasp. Introduction and overview of the commercial aviation industry AIRLINE ECONOMICS Chapter 1 and 2 (cyclical demand, and airline response thereto, airline pricing, marginal cost pricing, reasons for oversupply, the impact of the S-Curve.) ECONOMIC THEORY: BUSINESS ENTERPRISE & AIRLINE DEREGULATION Chapter 3 (summary of theoretical literature on small entrepreneurial companies, their opportunities, strengths, weaknesses, and growth and expansion strategies, overview of economic theory of deregulation, economies of scale, scope and density, economic and regulatory barriers to entry, contestability, and the model of perfect competition). AIRLINE OPERATIONS Chapter 7 (the benefits and disadvantages of different types of route structure; the challenges of efficient fleet utilisation; the of “cost” incremental flights and the impact of such costs on competitors.) AIRLINE LAW AND LAWYER Guest speakers (insight into how an airline lawyer can have an impact on the operation of the airline.) "Running" an Airline Business REGULATORY HURDLES Chapter 6 (economic regulation; fitness certification process; safety regulatory process; standards and tests employed by both; insurance, advertising, consumer protection regulation; securities regulation). STRATEGIC PLANNING Chapter 7 (an understanding of airline management, theory of organisational structures, impact of size on corporate organisation, different growth strategies.) FLEET ACQUISITION & FINANCE Chapter 7 (purchase vs. old vs. new, strategies to avoid import duties, different types of leases, aircraft purchase legal issues, and registration of aircraft in foreign jurisdictions.) Aircraft finance techniques will be discussed by Professor Donald Bunker. (an overview of financial and accounting AIRLINE FINANCE Chapter 4 and 12 terms, familiarisation with balance sheets and income statements; an overview of the sources of airline finance and major categories of expenditure; an overview of aircraft finance, method of valuing an airline; advantages and disadvantages of public IPOs vs. private placements, and employee stock ownership; costs and cost containment ). CORPORATE STRUCTURE Chapter 5 (the way an airline’s corporate structure may be designed for strategic and competitive advantage. Some particularly creative structures will be examined.) (an examination of Protection BANKRUPTCY and RESTRUCTURING Chapter 5 from Creditors, and Liquidation and the factors that would influence an airline’s board of directors to pursue one of these alternatives).
emphasis is one of the world’s most important industries—commercial aviation. Below (not necessarily in chronological order) are the topics and concepts that will be covered and that students should be able to grasp. Introduction and overview of the commercial aviation industry AIRLINE ECONOMICS Chapter 1 and 2 (cyclical demand, and airline response thereto, airline pricing, marginal cost pricing, reasons for oversupply, the impact of the S-Curve.) ECONOMIC THEORY: BUSINESS ENTERPRISE & AIRLINE DEREGULATION Chapter 3 (summary of theoretical literature on small entrepreneurial companies, their opportunities, strengths, weaknesses, and growth and expansion strategies, overview of economic theory of deregulation, economies of scale, scope and density, economic and regulatory barriers to entry, contestability, and the model of perfect competition). AIRLINE OPERATIONS Chapter 7 (the benefits and disadvantages of different types of route structure; the challenges of efficient fleet utilisation; the “cost” of incremental flights and the impact of such costs on competitors.) AIRLINE LAW AND LAWYER Guest speakers (insight into how an airline lawyer can have an impact on the operation of the airline.) "Running" an Airline Business REGULATORY HURDLES Chapter 6 (economic regulation; fitness certification process; safety regulatory process; standards and tests employed by both; insurance, advertising, consumer protection regulation; securities regulation). STRATEGIC PLANNING Chapter 7 (an understanding of airline management, theory of organisational structures, impact of size on corporate organisation, different growth strategies.) FLEET ACQUISITION & FINANCE Chapter 7 (purchase vs. old vs. new, strategies to avoid import duties, different types of leases, aircraft purchase legal issues, and registration of aircraft in foreign jurisdictions.) Aircraft finance techniques will be discussed by Professor Donald Bunker. AIRLINE FINANCE Chapter 4 and 12 (an overview of financial and accounting terms, familiarisation with balance sheets and income statements; an overview of the sources of airline finance and major categories of expenditure; an overview of aircraft finance, method of valuing an airline; advantages and disadvantages of public IPOs vs. private placements, and employee stock ownership; costs and cost containment ). CORPORATE STRUCTURE Chapter 5 (the way an airline’s corporate structure may be designed for strategic and competitive advantage. Some particularly creative structures will be examined.) BANKRUPTCY and RESTRUCTURING Chapter 5 (an examination of Protection from Creditors, and Liquidation and the factors that would influence an airline’s board of directors to pursue one of these alternatives).
aspl614-airline_business_syllabus-fall_2014.docx