Course detail
Air Traffic Economics and Management
FSI-OEM-AAcad. year: 2024/2025
The subject provides an overview presentation of the given topics and enables an insight view to them, as well as to develop understanding the terminology in the areas of economics, management, marketing and financial management of air traffic and logistics with the specific emphasis on understanding links and to develop specific skills for the use of selected methods in practice.
Language of instruction
Number of ECTS credits
Mode of study
Department
Entry knowledge
Rules for evaluation and completion of the course
The attendance at lectures and exercises is compulsory (80% at the minimum), and it is checked and recorded. The absence (in justifiable cases) can be compensated by personal consultation with the lecturer and elaboration of individually assigned topics and exercises. Individual tasks must be finished and handed in within the course-unit credit week at the latest.
Aims
Students will understand the context of economic and management topics. They develop their overview knowledge in the given areas of expertise. It also develops the basic skills in the use of the analytical methods in decision-making process applied in managing organisations. The subject also develops presentation and arguments giving skills as well as develops abilities of critical thinking and argumentation through the use of selected analytical methods. It motivates to improve presentation and communication skills of students in group exercises, individual presentations at solving the case studies from the aviation sector.
Study aids
Prerequisites and corequisites
Basic literature
HANUŠ B., Základy ekonomiky dopravy
JANÍČEK, L., Strategické řízení a podnikové strategie, 2018, učební text, Brno
ARBLASTER, Margaret, 2018. Air Trafic Management: Economics, Regulations and Governance. Elsevier. ISBN 978-0128111185. (EN)
EFTHYMIOU, Marina. Air traffic management: principles, performances, markets. New York, NY: Routledge, 2023. ISBN 9780367332440. (EN)
SEDLÁČEK, B., Provoz a ekonomika letecké dopravy I,II
Recommended reading
KOTLER, Ph., KELLER, K.L., Marketing management, 12. vydání, Grada Publishing, Praha 2007
PORTER, M., Konkureční výhoda, 1995, Victoria Publishing, Praha
PORTER, M., Konkurenční strategie, 1995, Victoria Publishing, Praha
Classification of course in study plans
Type of course unit
Lecture
Teacher / Lecturer
Syllabus
The following topics are discussed using examples specific to air traffic and airline management.
1. Economics vs. management. Subject and structure of economics and management.
2. Strategic management. Strategy – categories of strategy. Strategic analysis.
3. Commercial vs. non-commercial (public) sector. Customer-Company-Competition.
4. Methods of strategic analysis.
a. Mission, Vision, Values
b. Strategic aims
c. Business Units vs. Functional Units
d. External environment. PEST analysis
e. Sector environment. Competitive forces. Competitive analysis: 5F
f. Internal environment and resources. 7S Analysis
g. SWOT analysis
h. Competitive strategies.
5. Corporate strategies. Financial, Personnel, Operations, information, marketing and sales strategies.
6. Marketing. Subject of marketing. Marketing vs. Sales.
7. Marketing mix
a. Product. Product life-cycle
b. Price. Price policies
c. Place. Distribution and distribution channels
d. Promotion. Advertising, Public Relations, Sales Promotion, Personal Selling.
8. Market segmentation. Customer vs. Consumer. Target groups.
9. Marketing strategies.
10. Economics vs. financial management. Subject of micro and macoeconomics. Sector economics – mezoeconomics: aviation segment – production and transport.
11. Accounting sheets. Statements – Balance St. Profit and Loss St., Cash Flow St.
12. a. Financial planning. Budgeting vs. costing. Price calculation.
b. Financial analysis. Pyramidal breakdowns. Bonity and bancruptcy models.
c. Investments and their effectiveness.
13. a. Managing costs. Value Analysis a Controlling.
b. International Sales and Payment methods. Methods. INCOTERMS.
c. Managing Risks.
Exercise
Teacher / Lecturer
Syllabus
2. External and internal environment analyses: PEST a 7S.
3. Competitive analysis. 5F Porter.
4. SWOT analysis.
5. Budgeting and cost (prices) calculation.
6. Analysis of financial statements and financial ratios.
7. Analysis of investments effectiveness. Instant, present and future value of money.
8. Calculating and analysing NPV – Net Present Value.
9. Analysing of financial health of a company. Quick-test.
10. Operational Research Methods: CPM. PERT. Net diagrams – creating and solving.
11. Optimisation methods. Linear Programming. Simplex method (implementation aspects).
12. Risk-Benefit a Cost-Benefit analyses.