02 Jan Customize your data

3.3 – Discussion: Airline Response to Recession

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The goal of the discussions is to share concepts, theories, ideas, and to learn from the collective knowledge and experience of your peers and instructor. Critical thinking is a valued trait in all career fields and these discussions give you an opportunity to focus on managerial and airline economic topics and practice your critical thinking and communicating skills.

discussion_forum.jpgIn this discussion forum, address the following:

In 2008, the world entered the worst recession since the Great Depression of the 1930s. What would you predict for airline supply and demand?

Review US airline industry demand and supply data from the US Bureau of Transportation Statistics. Explain in terms of supply and demand how the US domestic airline industry reacted to the recession. You may wish to explain only one aspect of the US airline response to the recession such as supply, demand, or pricing.

Data source: The US Bureau of Transportation Statistics supplies a wealth of airline data.

For this project, you will find a customizable data table at Research and Innovative Technology Administration, or http://www.bts.gov/xml/air_traffic/src/index.xml#CustomizeTable (Links to an external site.).

Customize your data by selecting: 1. From 2007 until the end of the recession or to an end point of your interest, 2. Domestic, 3. Scheduled, and 4. Passengers, then select the statistics of interest (scroll to the bottom for selection criteria).

Prices are, of course, another piece of this puzzle. RITA provides a table of national fares. Find these under Data and Statistics/Air Fares Data/National Level Fares since 1995. Use the quarterly data, U.S. Average (Inflation-Adjusted $).

A few airline terms will be helpful. Airline supply is usually measured in Available Seat Miles (ASM). Measures of demand are Revenue Passenger Miles (RPM) and Enplanements. Passenger Load Factor is yet another indication of demand. Should you ever wish to do more research, perhaps for the GCP, the BTS has all the airline statistics you will probably ever need.

Remember to respond to at least two of your peers’ postings. This is a graded activity due on the last day of the module. Review the Discussion Rubric to find out how to maximize your grade.