Air Transport Economics and Finance
Individual Coursework: Economics (Resit)
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.