Homework Question on Air Transport Economics & Finance
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- ATE: In your own words, briefly discuss the short-term and long-term financial and political implications of slowing down or purposely adding delays in an ATC system in order to control the amount of traffic in the skies.[10-points each]Click here to enter text.
- ATE: What are some of the solutions to the congested airspace and lack of funding for new technology for ATC upgrades? Discuss some of your ideas as well as comment on the idea of charging for the use of airspace (have the users pay for technology enhancements) similar to what they do in Europe and Canada. Are there advantages and disadvantages (both financial and political) for this and the other ideas you have discussed.[15-points each]Click here to enter text.
- ATE: There have been a number of successful and unsuccessful attempts to privatize airports in the U.S. What are some of the implications, advantages and disadvantages (financially and politically) of these attempts. Are they a good idea or will they cause issues for future generations?[10-points]Click here to enter text.
- ATE: What are some of the ways in which the negative effects of an airport monopoly may be countered in the market place? [5-points each]Click here to enter text.
- ATE: Briefly describe the three (3) barriers to trade that a country can impose. How have the effects of free trade (positive or negative)affected the company you have chosen for the final project? [10-points each]Click here to enter text.
- ATE: A number of airlines in the U.S. has been lobbying congress and the U.S. government to stop providing export subsidies to non-U.S. based airlines. These subsidies are provided as part of the Export-Import Bank of the U.S. (http://www.exim.gov/). The airlines claim that these subsidies put U.S. airlines at a disadvantage. Explore this idea using news articles and other means (cite all outside sources used). Do the U.S. carriers such as Delta Air Lines have a legitimate case? Is it an unfair advantage to non-U.S. carriers? What can U.S. carriers do in order to gain an advantage or level the playing field? [25-points each]Click here to enter text.
Homework Answer on Air Transport Economics & Finance
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1.ATE: In your own words, briefly discuss the short-term and long-term financial and political implications of slowing down or purposely adding delays in an ATC system in order to control the amount of traffic in the skies.[10-points each]
The slowing down or purposely adding delay in an ATC system to control the amount of traffic led to the introduction of Coinstar machines which could calculate the amount of change deposited immediately. The machine was faced with the issue of mistrust which was later resolved that the machine would still count at the same speed but the display the results at a significantly slower rate. Besides, the results showed that the corporate workforce’sboardprocedures when applied resulted to increased ATC welfare and decrease in the operating costs. The process also contributed to some of the airlines getting privatized to increase the value of return on investment.
2.ATE: What are some of the solutions to the congested airspace and lack of funding for new technology for ATC upgrades? Discuss some of your ideas as well as comment on the idea of charging for the use of airspace (have the users pay for technology enhancements) similar to what they do in Europe and Canada. Are there advantages and disadvantages (both financial and political) for this and the other ideas you have discussed.[15-points each]
Some of the solutions to the congested airspace and lack of funding for new technology for ATC upgrades would include; improved aviation infrastructure to increase the effectiveness and moderate the congestion that might occur in the airspace in the long run.It is therefore important for the United States toenact laws that would see most of the commercially owned carriers get privatized. The airports that are owned by the private investors and the ATC companies which have been converted into income generating businesses can better respond to changing market conditions, and they can freely tap debt and equity markets for capital expansion to meet rising demand.