The Evolving Air Transport Industry

x INTRODUCTION TO AIR TRANSPORT ECONOMICS
4.10 Correlation between fuel efficiency and average stage length l 2006 96
4.11 US crew costs per block hourI 2006 97
4.12 US airline maintenance costs per flight hourI 2006 98
4.13 Comparison of actual and break-even load factors for US airlines, 2006 102
5. 1 The short-term economic effects of air traffic delay 109
5.2 The cost of delay with inelastic supply 111
5.3 Costs of delay over time 112
5.4 Market reaction to changes in supply 113
5.5 Demand for airport services 116
5.6 Recent examples of airport privatizations l 2000-2006 117
6.1 World merchandise trade distributed among regions 125
6.2 Imports and exports in the United States l 1970-2006 130
6.3 Production possibility curve 132
6.4 Production possibility frontier (with and without trade) 135
6.5 The effects of international trade barriers to a domestic market 139
6.6 The effects of trade quotas on a domestic market 140
6.7 Demand for dollars 142
6.8 A comparison of regional trade agreements and their representative
GDP 149
6.9 A comparison of regional trade agreements and their membership
numbers 149
6.10 A comparison of regional trade agreements and their representative
populations 150
7.1 Freedom of air passage 158
7.2 Global airline alliances: countries served as of June 2007 169
7.3 Global airline alliances: destinations served as of June 2007 170
7.4 Global airline alliances: aircraft fleet as of June 2007 170
7.5 Concentration of the top ten global airports by alliance and market
share 174
8.1 Market equilibrium: industry 182
8.2 Market equilibrium: firm 182
8.3 Short-run loss in perfect competition 183
8.4 Industry level 184
8.5 Firm level 184
8.6 Industry adjustment 185
8.7 Firm adjustment 185
8.8 Profit maximization for a monopolist 194
8.9 Loss scenario for a monopolist 194
8.10 Equilibrium price under monopoly and perfect competition 195
8.11 Commercial jet engine manufacturing market share by engine
deliveries 200
8.12 Commercial jet engine manufacturing market share by in-service
engines 201
9.1 Short-run equilibrium: monopolistic competitive market 207
9.2 Progression of demand curve: perfect competition to monopoly 208
9.3 Longer-run equilibrium: monopolistic competitive market 209
9.4 Price competition and market reaction 215
9.5 Kinked demand curve 216