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List of Figures | |
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List of Tables | |
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Glossary of Terms | |
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List of Abbreviations | |
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About the Authors | |
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Acknowledgements | |
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Foreword | |
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Preface to the Second Edition | |
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The Evolving Air Transport Industry | |
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The Airline Industry | |
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Financial Condition of the Airline Industry | |
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Consolidation and Bankruptcies | |
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Factors Affecting World Air Traffic Growth | |
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Economic Impact of the Air Transport Industry | |
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Outlook for the Air Transport Industry | |
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Summary | |
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Discussion Questions | |
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References | |
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Principles of Economics with Applications in Aviation | |
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Basic Economics | |
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Scope of Economics | |
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The Role of Economic Systems | |
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Government Failures and Market Failures | |
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Summary | |
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Discussion Questions | |
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References | |
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Supply and Demand: Analysis in the Airline Industry | |
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Basics of Demand | |
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Basics of Supply | |
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Market Equilibrium | |
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Consumer and Producer Surplus | |
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Disequilibrium | |
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Elasticity | |
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Summary | |
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Discussion Questions | |
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References | |
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Cost and Production Analysis: The General Concepts | |
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Cost Division | |
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Cost Functions | |
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Economies of Scale, Scope, and Density | |
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Airline Industry Cost Structure | |
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Airline Economies of Scale, Scope, and Density | |
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Airline Breakeven Analysis | |
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Operating Leverage | |
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Airline Operating Leverage | |
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Summary | |
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Discussion Questions | |
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Appendix: Airline Cost Classification and Division | |
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References | |
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Aviation Infrastructure: Operations and Ownership | |
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Air Traffic Control System | |
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Institutional Problems in US Air Traffic Control | |
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Air Traffic Control in a Government Corporation | |
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Political Obstacles to Reform | |
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Solutions to Air Traffic Control Problems | |
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Airport Ownership and Management | |
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Summary | |
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Discussion Questions | |
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Appendix | |
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References | |
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International Economics and Aviation | |
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Trade Globalization | |
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International Economics and Trade | |
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Why Nations Trade | |
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Aircraft Manufacturing and Governmental Subsidies | |
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International Trade Policy in Air Travel-Optimality versus Political Realities | |
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Foreign Currency and Exchange Rates | |
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Summary | |
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Discussion Questions | |
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Appendix: International Free Trade Agreements | |
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References | |
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Open Skies and Global Alliances | |
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Chronology of International Air Transport Agreements | |
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Bilateral and Multilateral Air Service Agreements | |
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Open Skies in Europe | |
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Open Skies in Asia | |
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Global Airline Alliances | |
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Summary | |
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Discussion Questions | |
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References | |
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Competitive Market Structure and Monopolistic Markets | |
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Perfect Competition | |
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Monopoly | |
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Price/Output Decision for Monopolies | |
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Monopoly Pricing and Consumer Well-being | |
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Monopoly Market Power in Aviation | |
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Monopsony | |
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Summary | |
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Discussion Questions | |
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References | |
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Hybrid Market Structure and the Aviation Industry | |
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Monopolistic Competition | |
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Oligopolies | |
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Examples of Oligopoly | |
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Contestability Theory | |
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Kinked Demand Curve Theory | |
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Cournot Theory | |
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Price-Output Determination under hybrid Market Structure | |
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Profitability Issues | |
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Competition and Anti-trust Issues | |
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Industry Consolidation | |
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Beyond Market Concentration Considerations | |
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Anti-trust, Market Evolution, and Cooperation | |
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Summary | |
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Discussion Questions | |
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References | |
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Aviation Forecasting and Regression Analysis | |
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Aviation Forecasting Applications | |
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Qualitative Forecasting Methods | |
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Quantitative Forecasting Methods | |
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Descriptive Statistics | |
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Time-series Analysis | |
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Time-series Forecasting | |
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Forecast Accuracy | |
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Regression Analysis | |
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Data Sources | |
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Summary | |
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Discussion Questions | |
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References | |
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Dynamic Pricing Policy and Revenue Management | |
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Dynamic Pricing Policy | |
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Cost-based Pricing | |
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Markup and Price Elasticity of Demand | |
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Bundling | |
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Unbundling and Airline Ancillary Revenue | |
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Market Skimming and Penetration Pricing | |
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Peak-load Pricing | |
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Price Discrimination | |
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Consumer Surplus | |
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Necessary Conditions for Price Discrimination | |
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Degrees of Price Discrimination | |
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Uniform Pricing versus Price Discrimination | |
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Importance of Revenue Management | |
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Scenario: Uniform versus Multiple Pricing | |
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Revenue Management "Fences" | |
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Revenue Management Control Types | |
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Spoilage and Spillage | |
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Leg-based Expected Marginal Seat Revenue Model | |
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Overbooking | |
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Other Issues Associated with Revenue Management | |
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Summary | |
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Discussion Questions | |
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Appendix: Derivation of Overbooking Probability Equation | |
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References | |
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Low-cost and Start-up Airlines: A New Paradigm | |
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The Evolution of the Industry | |
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Characteristics of Low-cost Carriers | |
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Cost Structure Comparison | |
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Incumbent Carriers' Response to Low-cost Carriers | |
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The Future of Low-cost Carriers | |
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Summary | |
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Discussion Questions | |
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Appendix: Select Airline Two Letter Codes | |
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References | |
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The Economics of Aviation Safety and Security | |
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The Basics of Aviation Safety | |
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The History of Aviation Safety | |
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Incentives for Aviation Safety | |
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Causes of Aviation Accidents | |
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Basic Economics of Safety | |
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Politics and Safety Regulation | |
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Accident Prevention | |
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Summary | |
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Discussion Questions | |
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References | |
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An Overview of Macroeconomics for Managers | |
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Economic Growth | |
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Unemployment | |
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Inflation | |
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Monetary Policy | |
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Fiscal Policy | |
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The Sovereign (Government) Debt Crisis | |
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Can the US Avoid Greece's Fate? | |
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What is the Future of the World Economy? | |
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Summary | |
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Discussion Questions | |
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References | |
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Airport and Airline Codes | |
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List of Countries by GDP (2012) | |
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Traffic Movements (2012) | |
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Passenger Traffic (2010) | |
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Index | |