Straight and Level: Practical Airline Economics

by Stephen Holloway

Straight and Level uses a simple yet powerful model to explore linkages between the fundamentals of airline economics and the volatility of industry performance at the operating level. Part 1 of the book provides a strategic context within which to consider the industry's economics. Part 2 is structured around a model that relates operating revenue and operating cost; it examines the most important elements in demand and traffic, price and yield, output, and unit cost. Part 3 probes more deeply into three critical aspects of capacity management: network management; fleet management; and revenue management. Part 4 concludes the book by exploring relationships between unit revenue, unit cost, yield, and load factor.

The author has rewritten, updated, and expanded the successful first edition. New sections have been added which link the economic fundamentals at the core of the book (covered in parts 2 and 3) to strategic context (explained in Part 1) and to performance outcomes (considered in Part 4). Extensive use is made of practical examples.

Straight and Level has been written primarily for masters-level students on aviation management courses; it should also be useful to advanced undergraduates. Amongst practitioners, it will appeal in particular to managers at the beginning of their careers and to established managers moving from functional posts into general management. More broadly, anyone wanting to gain an understanding of the economics of the airline industry at a practical level and an insight into the reasons for its financial volatility should find the book of interest.

About the Author:
Stephen Holloway is a consultant to the air transport industry specializing in both strategic and financial management. He has worked at a senior level in merchant banking, is a qualified pilot, and holds graduate degrees from Cranfield University, the University of Southern California and the London School of Economics. He is also author of several other books.

Genres: Aviation

654 pages, Hardcover

First published February 1, 1997

Reviews

[Alex Campbell · Rating 4 out of 5]

Any textbook that's over 500 pages will inevitably drag for the reader at some point, but in general I found this to be information-dense whilst not sacrificing readability too much. There is rather a lot in here, much of which can be skimmed in the search for gems - which do appear, though more often in the early parts of the book that discuss competition.
In any case, Holloway neatly summarises the competitive history of airlines and selects some defensive moats - operating at slot-constrained airports or being the lowest cost - none of which are that difficult for prospective investors to work out.

[Ks Pillai · Rating 2 out of 5]

A Dry book, but if you are Aviation Economist, should not miss it