Book Review:
“Flying off Course” (5th edition) — February 2019

Professor Rigas  Doganis has produced the fifth edition of his classic book on airline economics. The theme of this book is that for individual airlines, financial success depends on matching supply and demand in a way which is both efficient and profitable. Entitled as usual “Flying off Course”, it might well this time have been retitled “Flying on Course”, reflecting the vastly greater commercial focus  of the industry and consequent improvement in returns on capital, but publishers are reluctant to change an established brand.

The book focuses initially on how different factors influence airline costs and the degree to which such factors can be controlled or influenced by management. It then covers the perennial details of regulation that pervades the industry. It provides a detailed coverage of the different airline business models with a clear explanation of the modus operandi of each, showing with examples that no matter whether low-cost or high-cost, legacy network or point-to-point, the key for success is to achieve unit revenues higher than unit costs.