Authors: William E. O'Connor
ISBN-13: 9780275969110, ISBN-10: 0275969118
Format: Hardcover
Publisher: Greenwood Publishing Group, Incorporated
Date Published: October 2000
Edition: 6th Edition
Thoroughly revised to cover recent changes in the industry, this classic book continues to be the standard introduction to the economics of U.S. airlines.
An introduction to the economics of airline service of the US, both domestic and international, for college students in a one-semester course in aviation administration or economics of air transportation. Overviews the airline industry, then looks at the objectives of foreign countries as they may impinge on US international airline service. Covers costs of and demand for airline service, airline rates, cargo, and current problem areas. Appendices offer excerpts from regulatory documents. Assumes no background in economics. This sixth edition reflects changes in the industry since 1995. The author is affiliated with Embry-Riddle Aeronautical University. Annotation c. Book News, Inc., Portland, OR (booknews.com)
Preface | ||
List of Abbreviations | ||
1 | An Overall Look at the Structure of Air Transportation | 1 |
Economic Regulation Defined | 2 | |
Regulatory Reform | 2 | |
The Federal Aviation Act | 3 | |
Special Economic Characteristics | 4 | |
Other Economic Characteristics | 7 | |
Characteristics of International Service | 8 | |
Structure of the U.S. Airline Industry | 9 | |
2 | How Airlines Serve the Public Interest | 13 |
U.S. Public Interest Objectives | 13 | |
Objectives of International Airline Service | 16 | |
3 | Entry and Exit | 21 |
Airline Entry and Exit Policies | 21 | |
Government Regulation of Entry | 24 | |
Government Regulation of Exit | 40 | |
Mergers and Acquisitions | 41 | |
International Entry - Bilateral Agreements | 46 | |
Current Trends in International Airline Service | 57 | |
4 | The Costs of Airline Service | 67 |
Accounting Categories | 67 | |
Analysis of Costs | 69 | |
The Production Function and Factor Costs | 74 | |
The Two Major Airline Cost Areas | 77 | |
Aircraft Selection as a Determinant of Costs | 86 | |
Impact of Technological Advances on Costs | 92 | |
5 | The Demand for Airline Service | 97 |
Some Demand Characteristics | 97 | |
Methods of Estimating Demand | 103 | |
Passenger Options | 107 | |
Travel Agencies and Computer Reservations Systems | 111 | |
6 | Airline Rates | 119 |
Basic Ratemaking Factors | 119 | |
The Changing Structure of Airline Passenger Fares | 123 | |
Rate Regulation | 130 | |
International Rates - Dealings with Foreign Governments | 141 | |
7 | Air Cargo | 151 |
The Cargo Mix | 153 | |
Types of Aircraft and Their Impact on Cargo | 159 | |
Terminal Facilities | 163 | |
Pickup and Delivery Service | 168 | |
Air Freight Forwarders | 169 | |
Competition with Other Modes | 174 | |
Competition for Cargo between U.S. and Foreign Airlines | 178 | |
The Selling of Air Freight Service | 179 | |
Unitization - Containers and Pallets | 181 | |
Cargo Rates | 184 | |
Contract and Private Carriage of Cargo | 188 | |
Some Current Problems | 190 | |
8 | Current Problem Areas | 195 |
Airport-Airline Relations | 195 | |
Questions for the Future | 200 | |
Self-Testing Questions | 207 | |
Appendix: Federal Aviation Act - Digest of Selected Portions | 219 | |
Bibliography | 229 | |
Index | 235 |