International competition in aircraft market
| Název práce v češtině: | Mezinárodní soutěž na trhu letadel |
|---|---|
| Název v anglickém jazyce: | International competition in aircraft market |
| Akademický rok vypsání: | 2019/2020 |
| Typ práce: | bakalářská práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | prof. Ing. Karel Janda, Dr., Ph.D., M.A. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 31.07.2020 |
| Datum zadání: | 31.07.2020 |
| Datum a čas obhajoby: | 08.09.2022 09:00 |
| Místo konání obhajoby: | Opletalova - Opletalova 26, O314, Opletalova - místn. č. 314 |
| Datum odevzdání elektronické podoby: | 02.08.2022 |
| Datum proběhlé obhajoby: | 08.09.2022 |
| Oponenti: | Mahir Suleymanov, M.Pol.Sc., M.Soc.Sc. |
| Kontrola URKUND: | |
| Seznam odborné literatury |
| Douglas, A.I., Pavcnik, N., 2003. Airbus versus Boeing revisited: international competition in the aircraft market. Journal of International Economics, 64 (2004), p. 223-245.
Shannon, A., 2012. Basics of Aircraft Market Analysis. Forming a Policy to Identify Ideal Assets for Long-term Economic Returns. Aircraft Monitor. Wenbin, W., Hansen, M., 2004. Impact of aircraft size and seat availability on airlines’ demand and market share in duopoly markets. Transportation Research Part E: Logistics and Transportation Review, Volume 41, Issue 4, July 2005, p. 315-327. Berrittella, M., La Franca, L., Mandina, V., Zito, P., 2007. Modelling strategic alliances in the wide-body long-range aircraft market. Journal of Air Transport Management, Volume 13, Issue 3, May 2007, p. 139-148 Cook, A., J., 2008. Boeing Versus Airbus: An Economic Analysis. A Thesis submitted to the Miami University Honors Program in partial fulfillment of the requirements for University Honors with Distinction. Oxford, Ohio. |
| Předběžná náplň práce v anglickém jazyce |
| Research question and motivation
The rivalry of Boeing and Airbus is one of the main driving forces of progress in aircraft industry. As these companies have only tiny competition in aircraft market and none in the wide-body segment, the whole industry can be defined as oligopoly. They are both trying to cut as big share in the market as they can with more fuel efficient, more environmentally, crew and passenger friendly products as their competitor, risking their reputation with introduction of each new model. In my thesis I will be updating an already existing paper written by Douglas A. Irwin and Nina Pavcnik published in the Journal of International Economics in 2004, which focuses on the price level of mostly wide-body aircraft after 1992 US-EU trade agreement on subsidies. Since 2004, there has been more pressure on aircraft manufacturers both from airlines and governments to put more emphasis on fuel efficiency and environmental factors, as green policies have gained more importance in recent years. I will be interested how these policies have affected prices and market shares of respective planes. Contribution As of today, there are almost no papers discussing prices of aircraft in the Airbus – Boeing oligopoly. By updating data in the mentioned paper, I can discover whether changes in price level of aircraft since then are similar or the situation today is inconsistent with expectations 16 years ago. These findings can help determine qualities of the market, if there is a collusion or determine dependency of the manufacturers on subsidies. By analyzing implementation of the green policies, I can explain the falling demand and accelerated decommissioning of three-and-more-engined aircraft in recent years and evaluate manufacturers emphasis on environment. Methodology The model I am going to use comes from the 2004 paper. This model will provide us with estimates of price and cross-price elasticities of demand, which allow us to assess how closely related in demand various aircraft are. The demand system, combined with an assumptions on firms’ market conduct and learning parameter in production, also yields estimates of price–cost markups, allowing us to determine competitive pressures The data will include mostly the list price of aircraft, levels of discounts offered by manufacturers, oil price, average fuel consumption, capacity of aircraft and number of aircraft in operation. This way I can determine the factors most influencing the price and demand for aircraft. The data will come from years 2000 and onwards. An analysis of data on fuel economy, maintenance cost, capacity of aircraft will help to determine the effectiveness of acquiring and operating three-and-more-engined aircraft in the present day. From this test I expect results which will confirm that twinjets are better value for an airline. Outline Abstract Introduction Structure of the market Driving force behind competition Data and model I. Data description II. Introduction of the model III. Computations Results I. Comparing consistency of change with situation 16 years ago II. Determining quality of the market III. Evaluating effectiveness of twinjets Conclusions |