Description
Task:
You are asked to analyse, evaluate and critically discuss, the key economic factors that have influenced the US domestic aviation market during the fifteen year period 2007 to 2021 inclusive.
Your work should cover the following areas:
• Introduction:The nature of the market and an understanding of the key issues to be addressed.
• Type of market structure: Change in market concentration (HHI index), mergers and acquisitions, contestable markets.
• Pricing: Revenue management, types of pricing behaviour (price wars/predatory pricing/subversion of competition).
• Costs: Changing structure of costs such as outsourcing, labour economics and practices.
• Macro-economic environment: Recessions, external shocks and causes (i.e. COVID19). The industry response and consequences.
• Conclusion: Evidence of analysis of data together with the critical evaluation of results to determine the key changes that have occurred and their consequences.
(You are encouraged to use the graphical presentation of data where applicable).
You should produce a concise report that should not exceed 2,500 words.
(Note): The domestic aviation market refers to airline operations/routes only within the specific country. It excludes international routes
Marks will be awarded according to the following marking scheme:
• Introduction 10%
• Market structure 20%
• Pricing 15%
• Costs 15%
• Macro-economic environment 20%
• Conclusion 10%
• Presentation style and layout 10%
IMPORTANT! Keywords that must be included:
key economic factors
US domestic aviation market
excludes international routes
2007 to 2021
Introduction:
nature of the market
key issues to be addressed
Type of market structure:
Change in market concentration (HHI index)
mergers and acquisitions
contestable markets
Pricing:
Revenue management,
types of pricing behaviour (price wars/predatory pricing/subversion of competition).
Costs:
Changing structure of costs such as outsourcing, labour economics and practices
Macro-economic environment:
Recessions,
external shocks and causes
industry response and consequences
Conclusion:
Evidence of analysis of data
results to determine the key changes
2,500 words
