A week after each topic has been concluded, each student is requested to turn in his/her answer on the following problems:
Part 1 Airline Economics
Chapter 1
1. One day I heard that SQ and TG officers were exchanging a few words about how to judge which airline was larger than the others. What is your opinion?
2. What the philosophy a small economy might pursue in promotion of air transport services?
3. Some said that if an airline prefers to increase its revenue, it has to decrease the fare. Is it agreeable to you? State your conditions clearly.
4. One proposal pushed forward by a European airline was that the add-ons fare from BKK to any destinations in Thailand was 500 baht. Is it good for our country to give a green light on it?
Chapter 2 Yields & Price
1. Philippines Airlines used to fall into the trap of increasing revenues by decreasing her fares. How did PAL fall short of the target?
2. An airline manager once informed the CAB that airline yield and fares usually go hand in hand with each other. Please make explicit observation on this statement.
3. Some researchers believe that the revenue obtained by an airline is not the most critical thing in airline financial status. If that is correct, what is the MCF? How about yield? Does it play a critical role in airline financial status? How?
4. Once BA has exercised fares from LHR to BKK and v.v. unilaterally. What is your opinion on this? What actions the Government could do for the benefits of the Country?
Chapter 3 Product
3.1 Product or Output
1. What are differences between output and capacity? One people said that supply is generally more elastic in the long run than in the short run. Agree or not, why?
2. What does it mean by “airline attributes”?
3.2 Characteristics of Airline Output
1. Why it is so difficult in pricing airline services?
2. How does the air services agreement come into the process of shaping up the airline output?
3.3 Airline Product
1. Can you apply the concept of “Product Life Cycle” in airline industry?
2. Explain the Ansoff Matrix with some examples on airline industry attached.
3.4 Market Structure and Competition
1. Explain the general characteristics of an international airline market. Reasons are to be attached.
2. Some emerging airline managers strongly believe that their airlines are at a disadvantage compared to the existing ones. Is the assertion agreeable?
3.5 Supplying Output
1. Identify the similarities and differences between “effectiveness” and “efficiency”.
2. Explain the “two closely coordinated legs” in airline’s operating strategy. Is it reasonable for the low-cost airlines to exercise this strategy?
Chapter 4 Unit Costs
1. What are the fundamental cost drivers of an airline? Elaborate each driver in a schematic way with examples attached.
2. Explain the three well-known economies in airline operation. Do they affect each type of airline in the same magnitude?
3. What is the first priority for a severely loss-making airline’s manager to exercise in order to save his airline from bankruptcy?
4. Lufthansa, Japan Air Lines, Air France/KLM and British Airways all have shorter average trip lengths. It is found later that they all experienced higher unit costs. Are there any relationships between the two variables?
Chapter 6 Aircraft Economics and Choice of Aircraft
1. What is the meaning of “aircraft productivity”? How can we measure it?
2. Explain the relationship between payload and range, costs and productivity.
3. TG, in principle, has to evaluate a lot of factors before making any decisions on the scope of network. What are the basic behaviors of an airline in making such decisions?
4. Discuss the concept of aircraft utilization. Show the differences of aircraft utilization between TG and SQ. If TG decides to jack up the figure, what are your suggestions?
5. Dr. Nobody said “Choice of aircraft size depends on market size with an elasticity of 0.35” Elaborate his assertion. Is it agreeable by the CATCATE students?
Part 2 Airport Economics
Chapter 1 Nature of Airport Services
1. Elaborate the structural relationship among airline, airport and end consumer.
2. What does the meaning of “airport commercialization”? What are the three areas of greater attention of it?
3. There are, normally, 5 types of airport privatization. Please elaborate on each of them with examples provided.
4. In what areas do airports can form alliances and co-operation among themselves?
Chapter 2 Performance Measurement
1. What are differences between economic and non-economic of airport performance?
2. Suppose you are assigned to make comparisons of performance between Changi and Suvarnabhumi airports, what are difficulties encountered?
3. Why EBITDA is so essential in the determination of airport stock value in stock in exchange market?
4. Why do we have to make a reference to WLU in airport performance?
5. What are advantages of ROCE?
Chapter 6 Airport Marketing
1. Why do we have to perform the airport marketing?
2. Elaborate core, actual and augmented products in terms of airport product.
3. What is the airports’ two-stage pricing? It is workable under what assumptions?
4. Discuss roles of the government in airport promotion.
5. Discuss the concept of “airport brand”. Is it relevant in airport marketing?
Chapter 8 Airport Strategies and Competition
1. Discuss the Porter’s five forces framework on the basis of airport industry.
2. Discuss the Porter’s generic competitive strategies on the basis of airport industry.
3. Are there any conflicts occurred in the practice of Porter’s competitive strategies.
4. Market penetration, market development and product development are among the main strategic direction. How can we apply them into airport marketing?
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Instructor: Mr. Abhichata Bensubha CATC, Bangkok