7019ENG Air Transport Business Environment and Policy Assignment Brief | CU

7019ENG Assignment Task

This portfolio assignment includes 4 written tasks that you must engage with and progressively carry out throughout the 6 weeks of learning.

The tasks are highly aligned to teaching/learning activities of this module; hence you are advised to ensure attendance and engagement with all synchronous in- person and asynchronous activities.

TASK 1: Critical Reflection on Learning Journey in Air Transport Business Environment and Policy (1000 words)

This task invites you to reflect critically on your learning journey across Weeks 1–6. You will draw on your weekly log maintained throughout the module based on the template in Appendix I (There is no word count restriction on the learning log. This must be submitted as an appendix to the assessment) to select key learning moments, debates, and experiences that shaped your understanding of the key theories, debates and principles in Air Transport Business Environment and Policy and your approach to the portfolio assessment. 

Use the following format to write your critical reflection based on your weekly learning log.

1. Key learning Moments: Identify 2–3 significant concepts or debates that challenged or deepened your understanding. Refer to specific lectures, seminars, readings, or discussions. Mention key authors, theories, or frameworks that shaped your thinking.
2. Critical engagement: Discuss any ideas you disagreed with, struggled to understand, or changed your mind about. Reflect on how you how you critically engaged with debates in aviation economics, regulation, or policy.
3. Independent Exploration: Describe how you searched for information beyond the module materials. Explain your search criteria (e.g., keywords, databases, filters). Evaluate the sources you found and explain why they were credible or useful. Mention any use of AI tools (e.g., ChatGPT, Copilot) and critically assess their strengths and limitations.
4. Assessment Development Process: Reflect on how you planned and developed your portfolio tasks. What strategies did you use to organise your ideas? How did you integrate feedback or revise your work? What challenges did you face and how did you overcome them?
5. Mapping to Module Learning Outcomes and Graduate Attributes: Choose at least two MLOs from the module and explain how your learning journey helped you achieve them. Briefly explain how you demonstrated graduate attributes: Act with Integrity: e.g., ethical use of sources, fair critique, professional conduct and Get Things Done: e.g., time management, problem-solving, strategic thinking. Use specific examples from your log and reflection to demonstrate alignment.

TASK 2: Critique of an AI-Generated Response to a question on Air Transport Business Environment and Policy (1000 words)

You are provided with an AI-generated response to the following question in Appendix II: “How do factors in the global aviation business environment shape and influence airline market structures?” The response was generated using Copilot giving the question as a direct prompt to write a 1500-word answer with references.

Your task is to critically evaluate the AI-generated response by identifying:

• Strengths and weaknesses in the content
• Gaps in aviation-specific knowledge
• Gaps in theoretical foundations, key literature/authors
• Misinterpretations or oversimplifications

You must support your critique using module concepts learnt on aviation systems, stakeholder theories and economics and readings, and independent research.

TASK 3: Critical Review of Seminar Discussion on “Is ICAO effective in enforcing global aviation standards?” review of ICAO’s Covid-19 response (1000 words).

This task invites you to critically review the seminar discussion held in Week 2, which explored the effectiveness of the International Civil Aviation Organization (ICAO) in enforcing global aviation standards, particularly in the context of its response to the COVID-19 pandemic (based on the Policy Brief in Appendix III).

You will reflect on the seminar content your group produced and presented as an answer to this question and the perspectives shared by peers in the classroom and the lecturer’s feedback. Your review should demonstrate critical thinking, synthesis of ideas, and application of module concepts with appropriate reference to academic sources. 

Below is a guideline for your critical review

1.Analyse your group’s response to the seminar question and identify its strengths and weaknesses, based on your own personal reflection, peer responses and lecturer’s feedback.

You can conduct this review along

1. How well did you comprehend the seminar question?
2. How far did you use relevant theories and frameworks from lectures and assigned reading materials?
3. What insights did you/your group use from independent exploration of other academic sources, ICAO or any other industry publications, AI tools etc.

2.Based on your above review propose improvements you would make to the group response by outlining

1. Theoretical/regulatory foundation you would use from the assigned reading and your independent exploration to improve the group answer. Cite and reference them and explain how they would be used to improve the group answer.
2. Other changes you would make to improve the group response.

TASK 4: Policy Evaluation Solutions and Advocacy: Infographic accompanied by a 1000-word explanatory text

You must choose one of the following air transport policy topics and develop a policy communication infographic material to be published on social media to advocate your policy opinion on the topic. The infographic must demonstrate critical understanding of the policy context, stakeholder interests, problems and solutions. Prior to developing the infographic, you must study the chosen topic carefully and conduct a thorough evaluation of the effectiveness of the policy/problems associated. You must apply relevant theories and regulatory/ ethical policy principles in your analysis and solution development. To demonstrate your critical application of theory to evaluate policy challenges and develop sustainable solutions and advocate them effectively, you must submit a 1000-word text description explaining how the infographic delivers the below:

1. What and how you applied relevant theories or regulatory/ policy principles to analyse problems/challenges and develop policy solutions?
2. How did you select and apply relevant policy tools, economic metrics and methods and data to support air transport regulation, policy analysis and development?
3. How does your infographic design communicate and advocate your policy solutions and recommendations effectively?

Choice of Policy Topics

1. UK’s JetZero Strategy in reaching UK Aviation Industry Sustainability Targets.
2. Single African Air Transport Market (SAATM) on enhancing Regional Connectivity in Africa
3. India’s Regional Connectivity Scheme-UDAN on enhancing Regional Connectivity in India.
4. ESG Integration in Airline Corporate Governance in the UK.
5. UK Civil Aviation Authority Regulatory Approach to Heathrow Airport’s Economic Licensing.
6. Retained UK Regulation of (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights.
7. UK’s Drone Policy for Safe and Innovative Airspace Integration.

Assessed Module Learning Outcomes

The Learning Outcomes for this module align to the marking criteria which can be found at the end of this brief. Ensure you understand the marking criteria to ensure successful achievement of the assessment task. The following module learning outcomes are assessed in this task:

MLO 1: Critically evaluate and apply economic theories, regulations, and ethical principles to ensure the efficient delivery of customer-centric, secure, safe, and sustainable air transport solutions.
MLO 2: Select and apply relevant policy tools, economic metrics and methods to support air transport regulation, policy analysis and development.
MLO 3: Critically evaluate global aviation challenges and propose sustainable policy solutions considering various stakeholders and drivers in the air transport business environment.
MLO 4: Critically analyse and synthesise current research and practice relevant to the advancement of sustainable air transport policy solutions.
MLO 5: Advocate policy solutions and recommendations with integrity developing a professional approach to written and oral presentation.

7019ENG Assessment Marking Criteria

Appendix I

Weekly Learning Log Template for Air Transport Business Environment and Policy

Appendix II

AI-Generated Response to How do factors in the global aviation business environment shape and influence airline market structures?

Introduction

Airline market structures are shaped and influenced by a complex interplay of factors within the global aviation business environment. These factors include macroeconomic conditions, regulatory frameworks, technological advancements, environmental pressures, and geopolitical dynamics. Understanding how these elements interact is essential for analysing the competitive landscape of the airline industry, which ranges from monopolies and oligopolies to more liberalised and competitive markets. Airline market structures determine how airlines compete, set prices, and deliver services, and are therefore critical to the efficiency and sustainability of the global air transport system. This essay explores these factors in depth, drawing on examples from different regions and airline models to illustrate their impact.

Macroeconomic Factors

Macroeconomic conditions play a foundational role in shaping airline market structures. Economic growth, inflation, exchange rates, and fuel prices directly affect airline profitability, demand for air travel, and investment capacity. In high-growth economies, increased disposable income and business activity stimulate demand for air travel, encouraging market entry and competition. Conversely, economic downturns often lead to consolidation, reduced capacity, and even market exits. For example, during the global financial crisis of 2008–2009, many airlines faced liquidity challenges, leading to mergers and acquisitions that reinforced oligopolistic structures in certain regions (Doganis, 2019). Similarly, the COVID-19 pandemic disrupted global aviation, prompting government bailouts and temporary monopolistic conditions in some domestic markets. In emerging markets, rapid economic development has led to the rise of new carriers, often supported by state investment, which alters competitive dynamics and introduces hybrid market structures. Additionally, fluctuations in oil prices and currency exchange rates can significantly impact operating costs and profitability, influencing strategic decisions such as route planning and fleet composition. Airlines in developing economies often face volatile macroeconomic conditions, which can hinder their ability to compete globally, reinforcing regional monopolies or duopolies.

Regulatory Environment

Regulation is one of the most significant determinants of airline market structure. Governments and supranational bodies such as the International Civil Aviation Organization (ICAO) and the European Union (EU) influence market access, ownership rules, competition policy, and consumer protection. Historically, the airline industry was characterised by state-owned monopolies. However, the liberalisation of air transport markets—particularly through Open Skies agreements—has led to increased competition and the emergence of low-cost carriers (LCCs). The EU’s liberalisation in the 1990s is a prime example, where deregulation allowed airlines to operate freely across member states, resulting in a shift from monopolistic to oligopolistic and competitive structures (Button, 2003). Regulatory barriers such as foreign ownership restrictions and bilateral air service agreements continue to shape market structures. In regions where liberalisation is limited, national carriers often retain dominant positions, while in liberalised markets, competition flourishes. Additionally, competition laws and antitrust regulations play a role in preventing market abuse and ensuring fair access to airport slots and infrastructure. Regulatory stability and transparency also influence investor confidence and long- term strategic planning in the aviation sector. For example, the U.S. Department of Transportation and the European Commission have frameworks that promote competition and consumer rights, which have led to more diversified market structures.

Technological Advancements

Technology has transformed airline operations and influenced market structures by enabling new business models and improving efficiency. The rise of online booking platforms, dynamic pricing algorithms, and data analytics has empowered airlines to optimise revenue management and customer segmentation. Moreover, advancements in aircraft technology—such as fuel-efficient models like the Boeing 787 and Airbus A350—have reduced operating costs and enabled long-haul point-to-point services. This has allowed smaller carriers to enter markets previously dominated by network carriers, challenging traditional hub-and-spoke models (Belobaba et al., 2015). Digitalisation also supports the growth of LCCs, which rely on lean operations and direct distribution channels. As a result, technological innovation contributes to more competitive market structures, especially in regions with supportive regulatory environments. Furthermore, the integration of artificial intelligence (AI) in route optimisation, predictive maintenance, and customer service is reshaping operational strategies and enhancing competitiveness across market segments. Blockchain technology is also being explored for secure ticketing and loyalty programmes, potentially disrupting traditional distribution channels. The adoption of biometric boarding and automated check-in systems has also improved passenger experience and operational efficiency, allowing airlines to differentiate themselves in competitive markets.

Environmental and Sustainability Pressures

Environmental concerns are increasingly shaping airline market structures. Regulatory initiatives such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and national emissions targets are influencing fleet decisions, route planning, and investment strategies. Airlines with the financial capacity to invest in sustainable technologies—such as sustainable aviation fuels (SAFs) and electric aircraft—may gain competitive advantages, potentially reinforcing oligopolistic tendencies. Smaller carriers may struggle to meet environmental standards, leading to market exits or consolidation. Furthermore, consumer preferences are shifting toward environmentally responsible travel, prompting airlines to differentiate themselves through sustainability branding. This trend may lead to monopolistic competition, where carriers compete on service quality and environmental credentials rather than price alone. The pressure to decarbonise aviation is also driving innovation in aircraft design and operational efficiency, which in turn affects the cost structures and market viability of different airline models. Governments are increasingly linking subsidies and support to environmental performance, further influencing market dynamics. For example, Scandinavian countries have introduced green taxes and incentives for airlines adopting cleaner technologies, reshaping regional competition.

Geopolitical and Institutional Factors

Geopolitical stability and institutional frameworks also influence airline market structures. Political tensions, trade disputes, and security concerns can restrict market access and disrupt international routes. For instance, airspace restrictions due to conflicts (e.g., Russia-Ukraine) have forced airlines to reroute flights, affecting cost structures and competitive dynamics. Institutional quality—such as transparency, legal enforcement, and infrastructure investment—affects the ease of doing business in aviation. Countries with strong institutions tend to attract more airline competition, while weak governance may result in monopolistic or state-dominated markets. Additionally, international relations and diplomatic agreements play a role in shaping bilateral and multilateral air service agreements, which determine the extent of market access and competition across borders. Political decisions regarding airport development, subsidies, and strategic alliances also have long-term implications for market structure and competitiveness. For example, the U.S.-China aviation agreement has enabled increased competition on transpacific routes, while political instability in parts of Africa has limited market liberalisation and competition.

Case Studies

United States: The U.S. airline industry is a classic example of an oligopoly. Following deregulation in 1978, competition increased, but subsequent mergers (e.g., Delta-Northwest, United-Continental,

American-US Airways) led to market concentration. Today, the “Big Four” carriers dominate, although LCCs like Southwest and JetBlue maintain significant market share.

European Union: EU liberalisation fostered a competitive environment, with Ryanair and easyJet emerging as dominant LCCs. The single aviation market allows carriers to operate across borders, leading  to  a  mix  of  oligopoly  and  monopolistic  competition  depending  on  the  route.

Asia-Pacific: In Asia, market structures vary widely. Countries like Singapore and Japan have competitive markets, while others like China maintain state-controlled carriers with limited foreign competition. The ASEAN Open Skies initiative aims to liberalise regional markets, but progress is uneven.

Middle East: The rise of state-backed carriers such as Emirates, Qatar Airways, and Etihad has created a unique market structure characterised by high service quality and strategic geographic positioning. These carriers operate in oligopolistic regional markets but compete globally with legacy and low-cost carriers.
Africa: Many African countries have fragmented markets with limited competition due to regulatory constraints and infrastructure challenges. Initiatives like the Single African Air Transport Market (SAATM) aim to promote liberalisation and regional integration, potentially transforming market structures in the future.

Conclusion

Factors in the global aviation business environment—macroeconomic conditions, regulatory frameworks, technological innovation, environmental pressures, and geopolitical dynamics— collectively shape airline market structures. These structures are not static; they evolve in response to external shocks, policy changes, and strategic behaviour. Understanding these influences is essential for policymakers, industry stakeholders, and analysts seeking to foster competitive, efficient, and sustainable air transport systems. While liberalisation and technology tend to promote competition, regulatory constraints and environmental challenges may reinforce oligopolistic or monopolistic tendencies. The future of airline market structures will depend on how effectively stakeholders navigate these complex and interrelated factors to ensure resilience and innovation in the aviation sector. A balanced approach that integrates economic efficiency, environmental responsibility, and equitable access will be key to shaping a sustainable and inclusive global aviation market.

Appendix III