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Airline economics and finance

Anming Zhang and Yahua Zhang

Introduction

This chapter surveys topics in the field of airline economics. The debates in these areas are explored from an economic perspective to help build an understanding of contemporary economic issues and challenges facing the airline industry, and to provide airline management with an economic way of thinking in dealing with these issues (for airports, see Chapter 12). This chapter also aims to encourage air transport researchers to consider some under-researched areas.

The first two sections of this chapter centre on key issues and debates relating to cost and demand analysis. The core financial issues that an airline faces will then be discussed, followed by a review ...

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