EC6003E - Air Transport Economics

Objectives

General objective:

After completing this course, the student will be able to :
<ul><li>Explain how the air transport markets operate, drawing on microeconomic concepts and knowledge of air transport markets.</li><li>Explain the main issues that air transport faces today and its future challenges: the global health crisis, the impact on climate, the evolution of competition.</li></ul>

Detailed objectives:

After completing this module, the student will be able to:
<ul><li>Explain what a market is and what generic types of markets can be defined; describe and explain the microeconomic concepts of demand, supply and equilibrium on a market;</li><li>Characterize airline demand;</li><li>Explain the concepts of variable and fixed costs, price discrimination, product differentiation and barriers to entry in the context of airline markets;</li><li>Describe the strategic behaviour of airlines in relation to the competition structure of airline markets: market entry, choice of business model (Majors versus LCC), pricing and revenue management, network development, cooperation;</li><li>List the main actors in the air transport market, airports, product manufacturers, lessors... and describe their constraints and interactions;</li><li>Determine airline prices and behaviour in a simulated environment.</li></ul>

Hours

• Lecture : 9h
• Labs work : 19h

Form of assessment

Total assessment hours: 2