Aviation is one of the most widely talked about industries in the global economy and yet airlines continue to present an enigma. Between 2010 and 2018 the global airline industry experienced its longest period of sustained profitability; however, huge global profits hid a darker side. Many airlines made inadequate profits or serious losses while others collapsed entirely. This fifth edition of Flying Off Course explains why.
Written by leading industry expert, Rigas Doganis, this book is an indispensable guide to the inner workings of this exciting industry. Providing a complete, practical introduction to the fundamentals of airline economics and marketing, it explores the structure of the market, the nature of airline costs, issues around pricing and demand, and the latest developments in e-commerce. Vibrant examples are drawn from passenger, charter and freight airlines to provide a dynamic view of the entire industry. This completely updated edition also explores the sweeping changes that have affected airlines in recent years. It includes much new material on airline alliances, long-haul low-cost airlines, new pricing policies and ancillary revenues in order to present a compelling account of the current state of the airline industry.
Offering a practical approach and peppered with real examples, this book will be valuable to anyone new to the airline industry as well as those wishing to gain a wider insight into its operations and economics. For undergraduate or postgraduate students in transport studies, tourism and business the book provides a unique insider's view into the workings of this exciting industry.
Table of Contents
Introduction; 1 Characteristics and trends in the airline operations; 2 International regulation – bilateralism or ‘open skies’; 3 Understanding the structure of airline costs; 4 Determinants of airline costs; 5 The economics of the low-cost model; 6 The economics of leisure charters; 7 Alliances as a management tool; 8 Airline marketing – the role of passenger demand; 9 Forecasting demand; 10 Product planning; 11 Pricing for profit?; 12 The impact of ancillaries BY DR. JOHN F. O'CONNELL; 13 The economics of air freight; 14 Strategies for success
Rigas Doganis is a former airline chief executive and was a non-executive director of both easyJet and South African Airways. He has worked as an aviation consultant and adviser to numerous airlines, governments, banks, the European Commission, the United Nations and the World Bank. He was also Professor and Head of the Air Transport Department at Cranfield University, UK.
'This fifth edition of Flying Off Course is the indispensable book for anyone who wants to learn about the reality of running a modern airline. It explains the good, the bad and the ugly of this most challenging and volatile of industries. Prof. Doganis speaks with practical experience as he often fed medicine to sick airlines and cured their ills. I own the first edition and blame the book for embroiling me in this crazy aviation world. I recommend it to anyone new to the industry as it is authoritative, easy to read and, most importantly, reflects the real world of airline business. It is money well spent and many airline executives would save millions by reading it.'
Peter Bellew, Chief Operations Officer, Ryanair
"Flying Off Course is a must-read book for anyone interested in better understanding of the economics of airlines and their marketing best practices. Whether you are a newcomer or a captain of industry, there is so much to learn from this very well written book, as it provides a comprehensive and practical coverage of the airline business and its environment. Many academics and industry practitioner including myself, have benefited from previous editions of the book!"
Fariba Alamdari, Vice President of Boeing Global Learning Institute
"From the first edition, through the fourth, now the fifth I have been taking so many ideas into the real airline business, especially since I took the helm at Vietnam Airlines two and a half years ago. And 2017 and 2018 have proved to be the best two years for us."
Duong Tri Thanh, President and CEO, Vietnam Airlines
"This long established book has been completely updated and includes much new material on airline alliances , on the new pricing policies and ancillary revenues , on the economics of long-haul low-cost and on much more. Peppered with actual examples from airlines around the world , the book provides a practical understanding of the fundamentals of airline economics and marketing." Airline News
"The new edition is again well written and illustrated with real examples and case studies. Rigas Doganis has again succeeded in giving an insider's lucid view of the economics and marketing of the airline industry." Aviation Strategy
"Rigas Doganis' aviation textbook has become one of, if not the, must read item for any student or practitioner in the industry...generations of aviation exponents have devoured its contents avidly. Flying Off Course remains the benchmark for airline economics and strategy." Airline Leader