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Unit of study_

ITLS6400: Airline Strategy and Supply Chains

Semester 2, 2020 [Normal day] - Camperdown/Darlington, Sydney

Aviation is an international growth industry offering extensive commercial and employment opportunities in airlines, airports, logistic providers, banks, consultancies and other players of the aviation supply chain. This unit covers all aspects of international business and management along the aviation value chain and analysis from the perspectives of consumers (passengers and cargo), producers, distributors, brokers and investors. Students develop industry skills and an understanding of the strategic management and economics of operating airlines and other aviation entities, including financial analysis, risk management, sustainability, logistics, innovations and implications of competitive strategies for the development of hubs and alliances both in the global and regional/remote context. The growth in air traffic (i.e. in the Asia/Pacific region) creates endless opportunities and the unit thus also covers forecasting, entrepreneurship and the role of the private sector in airline/airport business development. As a result of our strategic partnership with CAPA and a number of airlines and airports, students have access to industry databases, guest lecturers, company information and aviation contacts/networks.

Unit details and rules

Unit code ITLS6400
Academic unit Transport and Logistics Studies
Credit points 6
Prohibitions
? 
TPTM6160
Prerequisites
? 
None
Corequisites
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Rico Merkert, rico.merkert@sydney.edu.au
Lecturer(s) Rico Merkert, rico.merkert@sydney.edu.au
Type Description Weight Due Length
Final exam (Take-home extended release) Type E final exam Final exam
Written exam
30% Formal exam period 48 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8
Assignment Individual assignment
Written report
40% Week 10 8 pages
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6
Presentation Presentation
Report, oral presentation
30% Week 11 6 slides, 2 pages
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO7 LO8
Type E final exam = Type E final exam ?

Assessment summary

  • Individual assignment: The report will require students to analyse/evaluate and benchmark three airlines based on their economic, operational and financial performance. Students are also expected to develop strategy recommendations based on their benchmarking findings. Although most of the required data will be available from airline annual reports, the lecturer will provide students with additional data that is available to us through our partnership with CAPA.
  • Presentation: Students will need to demonstrate knowledge of fundamental strategy concepts as well as an understanding of the aviation industry. Student groups will develop a business plan for setting up an airline (passenger/cargo) or airport in the Asia/Pacific region. The teams will be organised similar to the functional organisation of an airline/airport or management consultancy, with one CEO/project manager and several line managers (marketing, forecasting/business development, finance, fleet management) and each team member is supposed to present the view/strategy of his/her department.
  • The final exam / quiz will cover key concepts of the material presented in the course. In order to prepare for the test, students should review the assigned readings and the lecture notes for the unit which will be available on Canvas

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Distinction

75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Credit

65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Pass

50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

As per usual Business School policy

Academic integrity

The Current Student website  provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.  

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 01 1. Introduction to course and air transportation; 2. Framework and structure of global aviation Lecture (3.5 hr) LO1 LO2
3. Strategic analysis and the aviation value chain - Airline distribution case 4. Regional aviation as a business model (industry chat) Seminar (3.5 hr) LO1 LO2
Week 03 5. Demand/analysis pricing and forecasting 6. Cost control and success strategies Lecture (3.5 hr) LO1 LO2 LO3
7. Profit/revenue management exercise 8. Cost and benchmarking exercises Seminar (3.5 hr) LO1 LO3 LO5 LO6
Week 05 9. Financial analysis; 10. Financial ratios Lecture (3.5 hr) LO1 LO2
11. Airline evaluation (industry chat) 12. Strategic airline management and business models (case study) Seminar (3.5 hr) LO3 LO4
Week 07 13. Mergers and acquisitions and alliances; 14. Air cargo Lecture (3.5 hr) LO1 LO2
15. Airline operation, scheduling and route management (cases and exercises) 16. Aircraft/Fleet management and leasing (industry chat) Seminar (3.5 hr) LO3 LO4
Week 09 17. Strategic Airport management 18. Models of privatisation, leasing and private equity engagement; business plan Lecture (3.5 hr) LO1 LO2
19. Airport/Airline relationship management and process innovation in the LCC context (industry chat/case) 20. Airline sustainability (case); Airline spare part supply chain management (case) Workshop (3.5 hr) LO1 LO3 LO4 LO5
Week 11 Airline strategy/business plan group project Workshop (7 hr) LO4 LO5 LO7 LO8

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

While we don’t prescribe a textbook for this unit, the following books may be useful for some background reading:

Budd, L. and Ison, S. (2020): Air transport management: an international perspective. 2nd ed. London; New York: Routledge. 

Halpern, N. and Graham, A. (2018): The Routledge Companion to Air Transport Management, Routledge, London.

Doganis, R. (2019): Flying Off Course, 5th ed., Routledge, London and New York.

Morrell, P.S. (2019): Moving Boxes By Air: The Economics of International Air Cargo, 2nd Ed., Ashgate, Aldershot .  An ebook is available at https://library.sydney.edu.au/about/library-projects/new-library-services-platform.html

Morrell, P.S. (2013): Airline finance, 2nd ed.,  Ashgate, Aldershot.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. develop a clear understanding of the economics, business models and managerial characteristics of the aviation markets
  • LO2. identify key stakeholders and value/supply chains and their interrelationships to each other
  • LO3. critically analyse strategic, tactical and operational issues of aviation management and logistics
  • LO4. develop airline strategies
  • LO5. demonstrate acquired skills that are necessary to pursue a successful international career in the various sectors of the aviation industry
  • LO6. evaluate and develop strategies for airlines/airports based on benchmarking and assessing key performance and financial indicators
  • LO7. demonstrate acquired communication skills through class participation and also through presentations in regards to setting up an airline/airport in Asia/Pacific in a group exercise
  • LO8. demonstrate acquired team working skills through setting up an airline/airport in Asia/Pacific in a group exercise.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

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