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An Introduction to Airline Economics » (6th Edition)

Book cover image of An Introduction to Airline Economics by William E. O'Connor

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

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Author Biography: William E. O'Connor

Book Synopsis

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.

Booknews

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)

Table of Contents

Preface
List of Abbreviations
1An Overall Look at the Structure of Air Transportation1
Economic Regulation Defined2
Regulatory Reform2
The Federal Aviation Act3
Special Economic Characteristics4
Other Economic Characteristics7
Characteristics of International Service8
Structure of the U.S. Airline Industry9
2How Airlines Serve the Public Interest13
U.S. Public Interest Objectives13
Objectives of International Airline Service16
3Entry and Exit21
Airline Entry and Exit Policies21
Government Regulation of Entry24
Government Regulation of Exit40
Mergers and Acquisitions41
International Entry - Bilateral Agreements46
Current Trends in International Airline Service57
4The Costs of Airline Service67
Accounting Categories67
Analysis of Costs69
The Production Function and Factor Costs74
The Two Major Airline Cost Areas77
Aircraft Selection as a Determinant of Costs86
Impact of Technological Advances on Costs92
5The Demand for Airline Service97
Some Demand Characteristics97
Methods of Estimating Demand103
Passenger Options107
Travel Agencies and Computer Reservations Systems111
6Airline Rates119
Basic Ratemaking Factors119
The Changing Structure of Airline Passenger Fares123
Rate Regulation130
International Rates - Dealings with Foreign Governments141
7Air Cargo151
The Cargo Mix153
Types of Aircraft and Their Impact on Cargo159
Terminal Facilities163
Pickup and Delivery Service168
Air Freight Forwarders169
Competition with Other Modes174
Competition for Cargo between U.S. and Foreign Airlines178
The Selling of Air Freight Service179
Unitization - Containers and Pallets181
Cargo Rates184
Contract and Private Carriage of Cargo188
Some Current Problems190
8Current Problem Areas195
Airport-Airline Relations195
Questions for the Future200
Self-Testing Questions207
Appendix: Federal Aviation Act - Digest of Selected Portions219
Bibliography229
Index235

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