Cover; Contents; List of Figures; List of Tables; Glossary of Terms; List of Abbreviations; About the Authors; Acknowledgements; Foreword; Preface to the Second Edition; 1 The Evolving Air TransportIndustry; The Airline Industry; Financial Condition of the Airline Industry; Consolidation and Bankruptcies; Factors Affecting World Air Traffic Growth; Economic Impact of the Air Transport Industry; Outlook for the Air Transport Industry; Summary; Discussion Questions; References; 2 Principles of Economics with Applications in Aviation; Basic Economics; Scope of Economics. The Role of Economic SystemsGovernment Failures and Market Failures; Summary; Discussion Questions; References; 3 Supply and Demand: Analysis in the Airline Industry; Basics of Demand; Basics of Supply; Market Equilibrium; Consumer and Producer Surplus; Disequilibrium; Elasticity; Summary; Discussion Questions; References; 4 Cost and Production Analysis: The General Concepts; Cost Division; Cost Functions; Economies of Scale, Scope, and Density; Airline Industry Cost Structure; Airline Economies of Scale, Scope, and Density; Airline Breakeven Analysis; Operating Leverage. Airline Operating LeverageSummary; Discussion Questions; Appendix: Airline Cost Classification and Division; References; 5 Aviation Infrastructure: Operations and Ownership; Air Traffic Control System; Institutional Problems in US Air Traffic Control; Air Traffic Control in a Government Corporation; Political Obstacles to Reform; Solutions to Air Traffic Control Problems; Airport Ownership and Management; Summary; Discussion Questions; Appendix; References; 6 International Economics and Aviation; Trade Globalization; International Economics and Trade; Why Nations Trade. Aircraft Manufacturing and Governmental SubsidiesInternational Trade Policy in Air Travel -Optimality versus Political Realities; Foreign Currency and Exchange Rates; Summary; Discussion Questions; Appendix: International Free Trade Agreements; References; 7 Open Skies and Global Alliances; Chronology of International Air Transport Agreements; Bilateral and Multilateral Air Service Agreements; Open Skies in Europe; Open Skies in Asia; Global Airline Alliances; Summary; Discussion Questions; References; 8 Competitive Market Structure and Monopolistic Markets; Perfect Competition; Monopoly. Price/Output Decision for MonopoliesMonopoly Pricing and Consumer Well-being; Monopoly Market Power in Aviation; Monopsony; Summary; Discussion Questions; References; 9 Hybrid Market Structure and the Aviation Industry; Monopolistic Competition; Oligopolies; Examples of Oligopoly; Contestability Theory; Kinked Demand Curve Theory; Cournot Theory; Price -Output Determination under hybrid Market Structure; Profitability Issues; Competition and Anti-trust Issues; Industry Consolidation; Beyond Market Concentration Considerations; Anti-trust, Market Evolution, and Cooperation; Summary.