Reading List:

Lecture 1 – Overview of the Air Transportation System

• The Guardian, “In flight: see the planes in the sky right now,” The Guardian, January 21, 2014.
  • What are the four parts of the article?
  • On what occasion was the data visualization created?
  • At any point in time, approximately how many human beings are in the sky?
• Steven J. Markovich, “U.S. Aviation Infrastructure,” Council on Foreign Relations, May 28, 2015.
  • By what percentage has capital spending on U.S. aviation infrastructure changed between 2004 and 2014? Why?
  • Why airport privatization has not materialized in the U.S?
  • How much will NextGen cost the FAA and airlines, respectively?
  • More Questions:
• • • What percentage of U.S. GDP did civil aviation accounted for in 2012?
    • In which measure of air transportation the U.S. ranks seventh?
    • Why do U.S. airlines now rank among the world’s most profitable?
    • What is the income elasticity of demand for air travel in the U.S.?
    • How many bankruptcies have occurred in the U.S. airline industry since 1990?
    • What is the annual cost to the U.S. economy of delayed aviation infrastructure investment?
    • How much does the FAA spend annually on air traffic control operations and aircraft certifications, respectively?

Lecture 2 – Airline Passenger Transportation Network: Structure and Dynamics

• The Economist, “Ryanair experiments with hub-and-spoke transfers,” The Economist, April 20, 2016.
  • A few years back, Ryanair had a toxic reputation for customer service. When did Ryanair decide to rehabilitate its image?
  • Why is Ryanair reluctant to guarantee its connections?
  • What services has Mr. O’Leary implemented to woo business travelers?

Lecture 3 – Itinerary Reliability and Airline On-time Performance

• The Economist, “Should passengers who pay extra to arrive early be refunded for flight delays?” The Economist, March 1, 2016.
  • Why does the author believe he is deserving of compensation for his late-departing flight?
  • In Europe, court rulings over delay compensation have come down on the side of airlines or passengers?
  • How much can a passenger claim if his/her flight is delayed by more than three hours?
• Jennifer Lee, “Flight Delays Prove Costly, in Time and Money,” The New York Times, February 25, 2009.
  • What methodology was used to measure the cost of delay to the regional economy at the NYC’s three major airports?
  • Why does the author claim that NYC’s air traffic congestion problems are the nation’s congestion problems?
  • In 2008, the cost of flight delay caused by air traffic congestion at NYC’s three major airports was?

Lecture 4 – Fundamentals of Airline Markets and Demand

• The Economist, “Is virtual reality the future of in-flight entertainment?” The Economist, October 4, 2018.
  • Which airline became the first in America to offer virtual-reality headsets on its flights?
  • Why do airlines think that passengers will like virtual reality in the skies?
  • What are some of the concerns of introducing virtual reality on flights?
• The Economist, “First-class air travel is in decline,” The Economist, March 9, 2019.
  • Which carrier sells more first-class tickets than any other carrier?
  • Why is first-class declining?
  • Emirates claims that first- and business-class passengers are _____ percent of the total but generate about ____ percent of its turnover.

Lecture 5 – Estimation of Demand and Market Share

• Christy Rodriguez, “Which U.S. Airlines Dominate Market Share in North America? [Data Study]” Upgraded Points, April 25, 2019.
  • What is the data source(s) for the analysis that was performed?
  • How did the author(s) compute airline market shares?
  • Southwest Airlines seems to dominate most metrics. Why does Southwest have the highest passenger count but not the highest RPM?

Lecture 6 – Air Travel Demand, Load and Spill Analysis

• Matt Stevens, “After United Fallout, Airlines Are Bumping Fewer Passengers,” The New York Times, Aug. 8, 2017.
  • What measure did United Airlines take after the “dragging” episode?
  • What study showed that bumping of passengers off flights was at the lowest rate since 1995?
  • Among the carriers cited in the article, which had the lowest bumping rate?

Lecture 7 – Fundamentals of Airline Pricing and Revenue Management

• Zach Wichter, “What Does Your Airfare Actually Buy?” The New York Times, December 17, 2017.
  • When did American Airlines introduce a fee for a passenger’s first checked bag?
  • As legacy carriers introduced “basic economy” to fend off competition from the low-cost airlines, which among the three legacy carriers in the article provides the use of overhead bins for basic economy passengers?
  • How much did airlines make in ancillary revenue in 2017?

• The Economist, “Why low-cost airlines sell so many tickets for so little,” The Economist, January 22, 2019.
  • How do low-cost airlines make much of their money given that they charge low prices?
  • Which budget airline took Ryanair’s model to the extreme?
  • Why is the low-cost model uncertain in developing countries?

Lecture 8 – Airline Operational Costs and Productivity

• US Bureau of Transportation Statistics, “2018 Traffic Data for U.S Airlines and Foreign Airlines U.S. Flights” US Bureau of Transportation Statistics, March 21, 2019.
• • Which airline carried the most passengers on international flights to and from the U.S. in 2018?
  • Among foreign airlines, which carried the most passengers on flights to and from the U.S. in 2018?
  • Table 1 shows that the average non-stop distance flown per departure in miles increased by what percent?

• Forbes, “Breaking Down Southwest Airlines’ Flight Operating Costs,” Forbes, February 23, 2018.
  • What is the interpretation of the figure in the article?
  • How much does it cost Southwest to operate a typical flight of 160 seat capacity between New York and Los Angeles?
  • What category remains the biggest cost component for Southwest?

Lecture 9 – Airline Scheduling Optimization

• Allison Hope, “The Complex Process Behind Your Flight’s Schedule,” Condé Nash, August 18, 2017.
  • How is block time defined in the article?
  • Name three factors taken into consideration when determining the block time and specific departure and arrival times.
  • What is the average “padding” time for airlines like American and United?
• Dartmouth News, “Airlines and Passengers Save Billions Through Crew Planning,” Dartmouth News, June 6, 2018.

1. • The article claims that sophisticated crew scheduling practices could allow airlines to avoid what percent of crew-related delays.
   • Name the four categories of operational factors related to pilot scheduling in the article
   • What regulations do airlines need to factor when determining crew schedules?

Lecture 10 – Airline Regulation, Alliances, Code-sharing and Mergers

• The Economist, “A lack of competition explains the flaws in American aviation,” The Economist, April 22, 2017.
  • How many U.S. airlines appear on the world’s 30 best carriers, as rated by Skytrax? How about European airlines?
  • The biggest four carriers in the U.S. between them control what percentage of the market? What is the corresponding percentage in Europe?
  • What are the recommendations to promote competition in the U.S. airline industry?

• The Economist, “Stronger together?” The Economist, December 12, 2011.
  • What does the term “metal neutral” mean?
  • Name two benefits of alliances from the article.
  • According to the article, how will alliances affect service quality in the future? Why?

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