IATA-University of Geneva Air Transport Economics ‫ ׀‬2012/13
Course Overview
Study key issues, concepts and developments in the aviation industry, and improve your understanding of
a range of specialized subjects and global best practices. Learn how aviation business planning interrelates with current regulatory and evolving state policy issues. Evaluate current air transport economic
issues and the industry value chain, and learn how to apply your air transport economic knowledge in the
workplace. Some prior industry experience is useful to fully understand course content, although sessions
are accessible to new industry professionals.
Learning Objectives
Learn to think strategically about air transport economic issues, in particular about value chain concerns
at the system level in major air transport sectors. By the end of the course you will be able to identify air
transport system components and related economic drivers, and recognize linkages between value chain
and customer requirements.
The following session objectives have been established:

Explain the goals, strategy and evaluation process for this course

Introduce the economic concepts of supply, demand, pricing and market structures

Study an overview of the aviation industry from an economic perspective

Study the main benefits of air transport economics, as well as, identify, measure and analyze
national economic footprints from aviation sectors

Explain key demand and supply factors affecting the air cargo sector

Explain how aviation players usually act and compete in different market structures (monopolies
and oligopolies)

Explain the value chain concept and industry relationships

Identify the rationale for regulating the industry and analyze samples of economic regulation

Identify major industry pricing strategies

Explain the role of air transport in the global economy and best-practice approaches

Tackle a challenging in-class case study addressing the fundamentals of air transport economics
IATA-University of Geneva Air Transport Economics ‫ ׀‬2012/13
Course Schedule *
Day 1
09:00 - 09:30
Welcome and introduction
09:30 - 12:00
Basic principles of economics
12:00 - 13:00
Lunch
13:00 - 14:00
Overview of the aviation industry
14:00 - 16:00
Air transportation economics
16:00 – 17:00
Course exercise
Day 2
09:00 - 10:00
Air cargo economics
10:00 - 12:00
Competition in aviation
12:00 - 13:00
Lunch
13:00 - 16:00
Air transport value chain, economic regulation
16:00 - 17:00
Course exercise
Day 3
09:00 - 11:00
Air transport pricing
11:00 - 12:00
Course exercise presentation
12:00 - 13:00
Lunch
13:00 – 14:30
Assignment briefing
14:30 – 16:30
Air transport economic impacts
16:30 – 17:00
Course evaluation, wrap-up, closing
*Subject to change
IATA-University of Geneva Air Transport Economics ‫ ׀‬2012/13
Course Preparation
In order to prepare for the course, you are advised to review the following materials:
 IATA, Cargo e-Chartbook Q3 2012
 IATA, “Air Traffic Market Analysis”, July 2012
 IATA, “Airlines Financial Monitor”, July-August 2012
 IATA, “Financial Forecast”, June 2012
 IATA, “Economic Regulation”, 2007
 IATA, “Airline Cost Performance”, 2006
 IATA, “Aviation Economic Benefits”, 2007
 IATA, “Air Travel Demand”, 2008
 IATA, “Value Chain Profitability”, 2007
 IATA, “The Economic Benefits of Alliances and Joint Ventures”, Jan 2012
 Revise the selected slides from the Airline Business Foundation Module
Complimentary Readings
 B. Vasigh, K. Fleming and T. Tacker, “Introduction to Air Transport Economics – from Theory to
Applications”, Ashgate, 2008
 ICAO, “Airport Economic Manual”, Doc 9562, 2
nd
edition, 2006
th
 ICAO, “Air Navigation Service Provider Manual” Doc 9161, 4 edition, 2007
 ICAO, “ICAO’s Policies on Airport Charges and Air Navigation Services”, Doc. 9082, 8th Edition, 2009
 ACI, “ACI Airport Economic Survey 2011”, 2011
 ACI, “ACI Global Traffic Forecast”, 2011
 ACI, “ACI Policy and Recommended Best Practices Handbook”, Seventh Edition, November 2009
th
 IATA, “IATA World Air Transport Statistics”, 56 Edition, 2012
 M. W. Tretheway and T.H. Oum, “Airline Economics: Foundation for Strategy and Policy”, Center for
Transportation Studies, University of British Columbia, 1992
th
 Rigas Doganis, “Flying Off Course – Airline Economics and Marketing”, 4 Edition, Routledge, 2010
 EU,”EU Directive 2009/12/EC” of the European Parliament and of The Council of 11 March 2009 on
Airport Charges
 EU, “EU COM (2006) 819 Final”, Action Plan on the Shortage of Airport Capacity in Europe
 David Starkie & George Yarro, “The Single-Till Approach to the Price Regulation of Airports”
 P. Forsyth, D. Gillen, A. Knorr, O. Mayer, H. Niemmeier and D. Starkie, “The Economic Regulation of
Airports”, Ashgate, 2004
 Rigas Doganis, “The Airport Business”, Routledge, 1992
IATA-University of Geneva Air Transport Economics ‫ ׀‬2012/13
rd
 Anne Graham, “Managing Airports”, 3 Edition ,Elsevier, 2008
st
 Rigas Doganis, “The Airline Business in the 21 Century”, Routledge, 2001
nd
 Dawna L. Rhoades, “Evolution of International Aviation”, 2 Ed., Ashgate, 2008
 Boeing, “Current Market Outlook 2008 – 2028”, Boeing, 2011
 Airbus, “Current Market Outlook 2009 – 2029”, Airbus, 2011
Course Exercise
The course will require you to engage in a case study based on a challenging real-world air transport
economics situation. You will work in teams to:
 Identify the key economic issues facing the air transport industry in the case provided
 Analyze the economic implications of various possible scenarios
 Prepare a brief proposal with economic policy recommendations on how to best address the
problem(s) in the case provided
To prepare the case study, you are advised to refresh your knowledge of economics in the following
areas:
 Regulation and deregulation of markets
 Oligopolies and competition in oligopolistic markets
 Price wars, dumping, collusion and other tactics used by competitors in highly competitive markets
 Antitrust, anti-competitive behavior measures and policies
Course Evaluation
Attendance and class participation (15% - Individual)
 100% attendance throughout entire course duration
 Participation in classroom exercises
 Active involvement in classroom discussions
Assignment (50% - Individual)
 Impress with analysis, writing, presentation and research skills
Team exercise, case study (35% - group)
 Demonstrate the ability to work well in a team environment
 Demonstrate effective communication and oral presentation skills
IATA-University of Geneva Air Transport Economics ‫ ׀‬2012/13
Instructor Biography
Prof. Pedro Pinto, Associate Dean, Aviation Studies is an instructor with over 20 years of experience
in the aviation industry. He is an Associate Dean at the Higher Colleges of Technology in Abu Dhabi,
responsible for all the aviation programs delivered at the UAE Air Force Academy. His expertise includes
technical issues as well as air transport management.
Pedro started his aviation career with the Portuguese Civil Aviation Authority in 1983, as an Airworthiness
Surveyor. Since then, he has held various jobs in the aviation industry and has worked in Europe, South
East Asia, Oceania and the Middle East. He spent two years in Dubai working as a teacher and Head of
Department for the academic wing of Emirates Airline.
Pedro studied Air Transport Management at Cranfield University in UK, and earned an MSc and a PhD in
Air Transport from Cranfield.
View Pedro’s LinkedIn Profile.