Content

Weeks	Topics
1. Weeks	History: The period until the World War II, the Cold War years, Company and country rivalries, A post-Cold war world; International Structure: Financial situation of the sector, Consolidation of the sector; Factors Affecting the Growth of World Air Traffic: Higher living standards, Demographic structure, Travel cost, Liberalization, Other factors; Economic Impact of Aviation Sector: Direct effects, Indirect effects, Induced and total effects; The future: airplanes in 2032 and beyond, Covid-19 pandemic and beyond
2. Weeks	Definition and Characteristics of Economics: Economics as a science, Unlimited demands, Scarce resources, Alternative uses of resources, Cost and profit targets, Demand, Competition; Scope of Economics: Microeconomics, Households, Businesses, Pricing decisions, Price elasticity of demand, income elasticity of demand, Output decisions, Marginal cost, market price, Marginal income, Capacity decisions
3. Weeks	Scope of Economy: Macro economy, National income, GDP, Labor force and unemployment, Natural unemployment, Cyclic unemployment, Frictional unemployment, Inflation, CPI, PPI, Interest rate and exchange rate; Economic Systems: Laissez-faire capitalism, Command economy, Mixed economy, Incentives in the economy, Tax incentives, Financial incentives, Subsidies, Tax returns, Negative incentives; Market Failures: Externalities, Positive externalities, Negative externalities, Lack of competition
4. Weeks	Fundamentals of Demand: Income passenger mile, Demand schedule, Demand law, Demand curve, Demand function, Explicit and implicit demand functions; Determinants of Air Transport Demand: Ticket price, competitor price, Passenger income, General view of the economy, Other determinants; Characteristics of Air Freight Demand: Continuous fluctuation, Cyclality, Seasonality and peak, Directional flow, Demand source
5. Weeks	Elasticity of Demand: Relationship between substitution and elasticity, Relationship between income and elasticity, Flight distance and elasticity, Relationship with travel purpose, Types of elasticity, Price elasticity, Cross-price elasticity, Income elasticity; Supply in Airline Services: Factors affecting the supply of airline services, Supply function, Characteristics of supply for airline services, Airline supply-demand balance
6. Weeks	Cost Classifications: Costs over time and sunk costs, Total, fixed, variable, average, mixed and marginal costs, Operating leverage, Explicit, implicit and opportunity costs, Accounting / economic costs; Cost Function: Linear cost function, Cubic cost function, Use of cost functions in making managerial decisions, Economies of scale and scope; Airline Industry Cost Structure: Direct operating costs, Why airlines have difficulty in meeting their costs; Scale, Coverage, Density, Break-even Analysis and Operating Leverage in Airline Economics
7. Weeks	Midterm Exam
8. Weeks	History of International Agreements: Havana convention, Warsaw convention, 1944 chicago convention; Air Transport Freedoms: Transit passage, First and second freedoms, Freedoms in air traffic, Third, fourth and fifth freedoms, Cabotage, Six, seven, eight and ninth freedoms, Sequential and independent cabotage; Open Skies Agreements: Inception, Open skies features, Benefits of Open skies
9. Weeks	Global Airline Alliances: Types of alliances, Strategic alliance, Interline, Code sharing, History of global airline alliances, Three global airline alliances, Star alliance, Oneworld, Skyteam, Comparison of three alliances, Benefits of global alliances, Benefits to consumers, Benefits to service providers, Global alliances disadvantages, Disadvantages for consumers, Disadvantages for service providers
10. Weeks	Overview of Economic and Social Impacts: Airways, Civil aviation, Impact channels; Direct, Indirect and Induced Effects: Employment, Airports, Indirect effects, Induced (Incentive) effects; Catalytic Effects: Tourism sector, GDP, Trade, Air cargo transportation, Air traffic, Efficiency and leading innovation (R&D), Investment relationship; Covid-19 Impacts: Consumers, Airplanes, Fuel, Labor, Infrastructure, Regions, A simple forecast of the future
11. Weeks	Social Impacts: Qualified workforce, Place in social life, Responding to disasters, Supporting UN, unicef and charities, Safety culture, Impact of aviation on environment, Circular economy, Green manufacturing (production), A critical view; Turkish Airlines (THY): THY's economic size and impact, Domestic and international connections, e-commerce and cargo, THY after Covid-19, operating profit and loss
12. Weeks	Perfect Competition Market: Conditions of perfect competition market, perfect competition market and efficiency; Monopoly Market: Characteristics of monopoly market, Pricing and consumer satisfaction in monopoly market, Monopoly market and aviation sector; Monopolistic Competition (Monopolistic Competition) Market: Quality differentiation, Regional differentiation, Price and output level in monopolistic competition market; Oligopoly Market Structure: Oligopoly market and aviation sector, Two different faces of oligopoly markets, Oligopoly market models, Competition in the oligopoly market
13. Weeks	Fundamentals of Safety in Aviation Sector: Accident, Incident, Close contact in the air, pilot deviation, Runway violation, Error and violation, Danger; Evolution of Safety in Aviation Sector: Influential period, Recent period; Incentives that Motivate Aviation Safety: Passenger responses, Labor responses, Financial concerns, Insurance costs and liability risk, Government sanction; Reasons for Decreasing the Safety Level in the Aviation Industry: Flight crew error, Aircraft malfunction, Weather conditions, Airport/Air traffic control, Maintenance activities and other factors; Fundamental Economics and Organization of Safety in Aviation
14. Weeks	Final Exam