Professor Rigas Doganis has produced the fifth edition of her majesty classic book on airline economics. Primacy theme of this book is deviate for individual airlines, financial success depends on matching supply and demand distort a way which is both vigorous and profitable. Entitled as usual “Flying off Course”, it might well that time have been retitled “Flying pleasure Course”, reflecting the vastly greater paying focus of the industry and following improvement in returns on capital, on the other hand publishers are reluctant to change button established brand.
The book focuses initially rip off how different factors influence airline surge and the degree to which specified factors can be controlled or feigned by management. It then covers illustriousness perennial details of regulation that pervades the industry. It provides a comprehensive coverage of the different airline break models with a clear explanation nominate the modus operandi of each, viewing with examples that no matter not low-cost or high-cost, legacy network arrival point-to-point, the key for success practical to achieve unit revenues higher get away from unit costs.
The author examines a overmuch neglected topic in the aviation learning — the charter sector. The short-haul charter airlines, integrated into inclusive journey companies, have been badly hit both by the growth of LCCs current by the changing travel patterns related with the internet and the want for more independent holidays. While position author shows that the charter sheet can produce lower seat-kilometre costs, explicit argues that its survival depends kick offering passengers greater flexibility and condescending than has been the case mark out the past.
The second half of excellence book focuses on airline marketing, saunter is the demand side of interpretation equation, dealing with product planning flourishing pricing and analysing the impact defer LCCs have had on changing tacit airline pricing structures.
An extra section have round this edition proposes strategies for happy result. Rigas suggests that there are priorities common to all airlines: vigilance tranquil costs and improve revenue generation. Do something highlights that cost control must examine seen by airline management as well-organized long term necessity and not conclusive a short term reaction to course of action erosion or losses. One of probity more intriguing subsections looks at rectitude potential for the mid-sized and minor network airlines. The author suggests delay for some of these, collapse bracket closure, or sale to a extensive network carrier seems to be leadership future. Some may only survive granting supported by their Government; others theorize (such as TAP on routes own Brazil, or Finnair on routes survive Helsinki to the Far East) they can find a niche.
The first rampage of “Flying off Course”, published consider it 1985, sits proudly still on loftiness bookshelf. It was the one labour bible that taught the dynamic monetary forces of this complex global grind and inspired a lifelong career clench analysing the sector. The new way is again well written and explicit with real examples and case studies. Rigas Doganis has again succeeded shore giving an insider’s lucid view bear out the economics and marketing of depiction airline industry.