AIR TRANSPORT ECONOMICS AND STATISTIC

TOMI RENHAT / D4 PNB 5 / 16011910022

 FUNDAMENTALS OF ECONOMICS

The definition of economics - Economics is a social science concerned with the production,
distribution, and consumption of goods and services. It studies how individuals, businesses,
governments, and nations make choices about how to allocate resources. ... The building blocks of
economics are the studies of labor and trade.\

What is nature economics? Economics is regarded as a social science because it uses scientific
methods to build theories that can help explain the behaviour of individuals, groups and
organisations. Economics attempts to explain economic behaviour, which arises when scarce
resources are exchanged.

What is economics law? Economic laws are like scientific laws which trace out a causal
relationship between two or more phenomena. As in natural sciences, a definite result is expected to
follow from a particular cause in economics. ... Since economic laws are like scientific laws, they
are universally valid.

What is microeconomics? Microeconomics focuses on supply and demand and other forces that
determine price levels in the economy. It takes a bottom-up approach to analyzing the economy. In
other words, microeconomics tries to understand human choices, decisions and the allocation of
resources.

What is macroeconomics? Macroeconomics is the study of the behavior of the economy as a whole.
This is different from microeconomics, which concentrates more on individuals and how they make
economic decisions. ... Businesses use macroeconomic analysis to determine whether expanding
production will be welcomed by the market.

Demand analysis involves understanding the customer demand for a product or service in a
particular market. Companies use demand analysis techniques to determine if they can successfully
enter a market and generate expected profits to advance their business operations.

Demand Forecasting is a systematic and scientific estimation of future demand for a product.
Simply, estimating the sales proceeds or demand for a product in the future is called as demand
forecasting. ... This method is often used when the forecasting of a demand is to be done for a short
period of time.

 Economics and law of supply

Supply is a fundamental economic concept that describes the total amount of a specific good or
service that is available to consumers. Supply can relate to the amount available at a specific price
or the amount available across a range of prices if displayed on a graph

 FUNDAMENTAL OF AIR TRANSPORT ECONOMICS

The airline industry has been virtually grounded by COVID-19 and recovery has been muted in
most markets due to travel restrictions. Deep recession and weak consumer confidence also
hampered the recovery. Global RPKs are estimated to decline by 66% in 2020, which is the largest
decline since the 2ndworld war. In 2021, the availability of a vaccine in the 2ndhalf of the year is
anticipated to be a turning point but the recovery will be gradual since phased distribution of
vaccine will take time.

Global RPKs are forecast to improve by 50% in 2021 following the steep decline in 2020.
Consumers will face lower real travel costs as airlines will continue to significantly discount ticket
prices to stimulate demand. We expect the share of world GDP spent on air transport to be 0.5% in
2021, half of the pre-crisis levels. On the other hand, world trade is expected to rebound strongly in
2021, which will be supportive for air cargo volumes.

What factor that affecting World Air Traffic Growth? It is clear that GDP is not the only factor that
drives air traffic growth. Components such as private consumption, international trade, tourism,
crude oil prices, airline profits and increase in productivity all contribute to the economic factors

Air transport contributes to sustainable development. By facilitating tourism and trade, it generates
economic growth, provides jobs, improves living standards, alleviates poverty, increases revenues
from taxes, and fosters the conservation of protected areas.

 AIRPORT LINE ECONOMICS AND INFRASTRUCTURE

Revenue describes income earned through the provision of a business's primary goods or services.
An expense is a cost incurred in the process of producing or offering a primary business operation.

variance analysis is a process of identifying causes of variation in the income and expenses of the
current year from the budgeted values. It helps to understand why fluctuations happen and what can
/ should be done to reduce the adverse variance. This eventually helps in better budgeting activity.

The key objective of the airport financial management is to understand the economic and financial
aspects. A strong management is maintained by analyzing the current financial trends and their
impact on airport. ... The expected challenges are turned into the benefits of developing the
organizational goals

Air Transport Infrastructure integrates all the ground facilities needed to support airline services
with the adequate levels of safety, reliability, and economy. The two main elements of those
facilities are airports and air navigation services. From the management point of view, they are very
different.

Open Skies agreements are a form of air transport agreement that the U.S. government negotiates
with foreign government partners to provide rights for airlines to offer international passenger and
cargo services. They are pro-consumer, pro-competition, and pro-growth.

The EU–US Open Skies Agreement is an open skies air transport agreement between the European
Union (EU) and the United States (US). The agreement allows any airline of the European Union
and any airline of the United States to fly between any point in the European Union and any point in
the United States.

As implemented by the ASEAN Single Aviation Market (ASEAN-SAM) per 2015, the open skies
policy aims to increase regional connectivity and regional economic growth by permitting airline
industries from each ASEAN member states to fly above the Southeast Asian region without any
barriers or restrictions

Top 6 Ways to Incentivize Safety

1. Involve Everyone. ...

2. Know Where You Are and Where You Are Going. ...
3. Use a Combination of Recognition and Reward Strategies and Tools. ...
4. Recognize Often, Publicly, and Genuinely. ...
5. Focus on Smaller Rewards for a Larger Number of People. ...
6. Understand that to Err is Human.

SOURCE : WWW.GOOGLE.COM