How airbus and boeing develop their twenty-year forecasts

Assignment Help Microeconomics
Reference no: EM131367940

Advanced Aviation Economics - Problem Set

Written Assignment: Estimating Regional Air Transportation Demand

The objective of this and the other written assignments in the course is to show how the managerial economic theory and tools presented in Baye are applied to a current airline industry problem. For this assignment, the objective is to develop an appreciation for the methods used by the two largest commercial aircraft manufacturers, Airbus (http://www.airbus.com) and Boeing (http://www.boeing.com/), to forecast demand for air travel and the market for commercial aircraft over the next twenty years. Fortunately, both make their forecasts available to the public. For this assignment, you are to review the Airbus Global Market Forecast and the Boeing Current Market Outlook. These reports are available on the Boeing and Airbus websites. The location of the forecasts varies from year to year but each can be accessed by a search within the website or from the site map. In your review, concentrate on the factors (independent variables) that Airbus and Boeing employ to estimate the demand for air travel growth and how these are used to generate regional estimates for specific aircraft types. First, look for sections in the reports that provide an overview of the forecast methodology. Regression analysis is used extensively, but the technical details are not provided or important for this assignment. An appreciation for how the estimates are generated is sufficient. After you look over the entire reports - they're lengthy, it is not necessary to read all sections - choose a region of the world for more detailed study.

First, briefly explain how Airbus and Boeing develop their 20-year forecasts. Note the factors that influence projected air travel growth; some factors affect the demand curves while others influence supply. Be certain to distinguish between the two. The connection between the microeconomic theory of supply and demand as presented in Baye and Doganis should be explicit. Then explain the forecasts for growth in the chosen world region. Provide some perspective to forecast growth in the rest of the world.

The paper should be approximately three pages not including a cover page, reference list, and any appendices you may wish to include. Both forecasts provide a wealth of detail that could support a much longer paper, but the objective is an overview similar to an executive summary for one world region, not an in-depth analysis. Managers are often tasked with analyzing business environments or specific problems for senior management review. Senior managers are usually pressed for time and value concise evaluation and recommendation. Discerning and summarizing the critical facts succinctly is difficult. More is not necessarily better; the page limit is intended to foster this skill.

APA style is required including a title page and reference listing. You may have only a few references, but these must be cited in both the main body of the paper and in a separate reference list. An abstract and table of contents are not required. The sample APA paper at the Purdue Online Writing Laboratory provides an excellent overview of the APA style. Even if you believe you have a good handle on APA format, a review is highly recommended. Be certain to include APA elements such as running head, page numbers, headings, source citations, introduction, and conclusion in your paper.

Reference no: EM131367940

Discuss possibility that consequence of economies of scale

Some individuals decry the decline of the small family farm and its replacement with the huge corporate megafarm. Discuss the possibility that this is a consequence of econ

Are the nfl and its members a single entity

Are the NFL and its members a single entity for the purposes of antitrust laws - Is the agreement of NFL teams with Reebok subject to Section 1 of the Sherman Antitrust Act,

Calculate the arc cross-elasticity

Suppose the price of product B increases to 3. What happens to quantity demanded of both products?b. Calculate the arc cross-elasticity between product A and product B using p

What is the price that leads to the highest level of profits

What is the price that leads to the highest level of profits for this firm? Show the area on the graph that represents the above normal profits earned at the profit maximizi

Conduct additional research on your topic of interest

Conduct additional research on your topic/problem of interest to further understand the ethical and legal considerations you must address for a paper that is publishable.

What is required policy mix use is-lm diagram

Now the government wants to change the composition of demand toward investment and away from consumption without, allowing aggregate demand to beyond full employment. What i

Two alternatives

Two alternatives, A and B, are under consideration. Both have a life of five years. Alternative A needs an initial investment of $17,000 and provides net revenue of $4,000 per

How many workers will the firm hire

The problem is belongs to Economics and it is explain about calculation of wage rate for number of workers being hired by a firm with the above marginal revenue product and

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd