EC6003E - Air Transport Economics

Objectives

General objective:

After completing this course, the student will be able to :
- Explain how the air transport markets operate, drawing on microeconomic concepts and knowledge of air transport markets.
- 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.

Detailed objectives:

After completing this module, the student will be able to:
- 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;
- Characterize airline demand;
- Explain the concepts of variable and fixed costs, price discrimination, product differentiation and barriers to entry in the context of airline markets;
- 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;
- List the main actors in the air transport market, airports, product manufacturers, lessors... and describe their constraints and interactions;
- Determine airline prices and behaviour in a simulated environment.

Hours

• Lecture : 9h
• Labs work : 19h

Form of assessment

Total assessment hours: 2