Air Transport Economics: From Theory to Applications uniquely merges the institutional and technical aspects of the aviation industry with their theoretical economic underpinnings. Its integrative approach offers a fresh point of view that will find favor with many students of aviation.

This fourth edition has undergone extensive updates throughout. It features new material addressing the impact of COVID-19 on the air transport industry, and the efforts made by both the industry and governments to facilitate recovery. A new chapter examines the impact of air transport on climate change and how government policies to address this issue could reshape the industry. Additionally, alongside expanded coverage of revenue management and pricing decisions, this fourth edition incorporates case studies that give real-world examples to reflect current industry practices. Moreover, there is a discussion of the latest computer applications that enhance the effectiveness of the new techniques.

This book offers a self-contained theory and applications-oriented text for individuals aspiring to enter the aviation industry as a practicing professional in the management area. It will be of the greatest relevance to undergraduate and graduate students aiming to acquire a comprehensive grasp of the economics of the aviation industry. The review questions at the end of each chapter have been expanded considerably, and an online assignment has been introduced for each chapter. This book will also appeal to many professionals who seek an accessible and practical explanation of the underlying economic forces that shape the industry.

Table of Contents

1 Evolution of the Air Transport Industry

2 Principles of Economics with Applications in Air Transport

3 Supply, Demand, and Elasticity: Analysis in the Airline Industry

4 Cost and Production Analysis: The General Concepts

5 Competitive Market Structure and Monopolistic Markets

6 Hybrid Market Structure and the Aviation Industry

7 Forecasting in the Air Transport Industry

8 Dynamic Pricing Policy and Revenue Management

9 Ultra-Low-Cost and Low-Cost Airlines: Paradigm Shifts

10 Economics of Aviation Safety and Security

11 International Economics and Aviation

12 Air Traffic Liberalization and Global Alliances

13 Aviation Infrastructure: Operations and Ownership

14 Climate Change and the Contribution of Transport

About the Authors

Bijan Vasigh is Professor of Economics and Finance in the College of Business at Embry-Riddle Aeronautical University, Daytona Beach, Florida. He received a Ph.D. in Economics from the State University of New York and has published many articles concerning the aviation industry.

Brian Pearce is Honorary Professor at University College London Bartlett School’s Air Transportation Systems Laboratory and also a Visiting Professor at the Centre for Air Transport Management at Cranfield University. He previously served as the Chief Economist of the International Air Transport Association's (IATA).