This course aims to introduce students to the concepts of economics and financial management, creating a long-term sustainable environment for their operations. These concepts are essential for airlines to manage demand and optimize revenue; to design strategies for cost reduction at various levels; to tackle complex regulatory and competitive issues; to provide clear, accurate and transparent financial statements, metrics and valuations, to conduct detailed planning and budgeting, and to evaluate investment proposals.
Upon successful completion of the course, students and students should be able to:
- Apply basic concepts and strategies in demand management, costing, pricing, and revenue in the air transport sector.
- Calculate the construction and operating costs of airlines and airports.
- Evaluate revenues (air navigation and non-navigation) of airports.
- Design pricing policies for airlines and airports.
- Understand the differences between various business models of airlines and airports.
- Understand the pillars and structure of cost for airlines and airports and how these can be effectively controlled.
- Assess the role of regulation, competition, and economic synergies in air transport.
- Prepare financial statements, metrics, and assessments of airlines.
- Understand the importance of planning and budgeting for airline operations.
- Evaluate investments in aircraft and examine the role of leasing.
- Assess the economic benefits of air transport operations.