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Syllabus
AVM 371 - Aviation Industry Regulation
Instructor: Harry P. Wolfe
Southern Illinois University


COURSE DESCRIPTION

A study of the various regulatory agencies of the industry and their functions.

COURSE OBJECTIVES:

1. The student will be able to understand the history of aviation.
2. The student will be able to define and describe the regulations related to the aviation industry.
3. The student will be able to understand and describe the development of the American Aviation Industry.
4. The student will be able to identify and define economic regulations of the schedule airline industry.
5. The student will be able to define and understand the functions of the scheduled airline industry.

TOPICAL OUTLINE

1. History of aviation

2. Development of the aviation industry/aviation industry structure

3. Regulatory agencies - federal

  a. Civil Aeronautics Board
  b. Federal Aviation Administration
  c. National Transportation Safety Board
  d. Others

4. Regulations - aviation

  a. Aviation safety regulation
  b. Aircraft noise emission regulations
  c. Economic
  d. Consumer protection
  e. Industry promotion

5. Applications of aviation industry regulations by industry segment.

APPROACH TO COURSE

This course explains how government "regulates" or controls the aviation industry. It also evaluates the effectiveness of government regulations compared with the market mechanism and competition. in controlling the behavior of the aviation industry. It is designed to provide the student with an understanding of the appropriate role of government in carrying out its regulatory activities.

The regulators to be discussed include federal, state, regional and local agencies, as well as the free market mechanism. The components of aviation industry that will be emphasized include airmen, aircraft manufacturers, airlines, airports, fixed based operators and corporate aircraft operators.

The first weekend begins with a definition of regulation and a comparison of how government regulates behavior versus the free market system. A history of the evolution of the regulatory agencies that control the industry and their current regulatory functions will be reviewed as well.

After discussing key legislation which has created todays regulatory framework, attention will be focused upon the role of the Federal Aviation Administration in ensuring industry adherence to safety standards. The certification role of the FAA, together with its responsibilities in managing the air traffic control system, administering the airport development program, and coordinating the aviation policy and international aviation activities of the federal government will be discussed. In addition to its regulatory responsibilities, the FAA's role in promoting aviation safety and the accident investigation function of the National Transportation Safety Board will also be reviewed.

The emphasis during the second weekend shifts to a discussion of the government's role in economic regulation and the rulemaking process. The role of the Civil Aeronautics Board in regulating the business practices of the airline industry prior to airline deregulation will be compared with the post deregulation competitive environmental. An in-depth discussion of the rulemaking process will be undertaken to provide the student with an understanding of how regulations are developed and how to influence the regulatory process. Key environmental regulations will also be reviewed.

The third weekend is devoted to a discussion of non-Federal regulators including state and local governments domestically, as well as international regulatory agencies. Finally a discussion of the interactions among different regulatory agencies will be undertaken to provide a better understanding of the complexity of the regulatory process.

TEXTBOOK

1. Adamski, Anthony J. and Timothy J. Doyle,
Introduction to the Aviation Regulatory Process,
McNeil Publishing Inc., Westland Michigan, 4th Edition.

PLEASE BE AWARE THAT IT IS ESSENTIAL TO BRING THIS EDITION OF THE TEXT BOOK TO EACH CLASS BEGINNING WITH THE FIRST WEEKEND. A NUMBER OF ASSIGNMENTS TO BE UNDERTAKEN IN CLASS REQUIRE THAT EACH MEMBER OF THE CLASS HAVE HIS/HER OWN TEXTBOOK

BIBLIOGRAPHY

1. Government documents including, but not limited to the Federal Register, the Code of Federal Regulations and the U.S. Code. These documents can be accessed through government depository libraries, and electronically through the internet (please see website http://www.gpo.ucop.edu/ for Federal Register; and for FARs website http://www.faa.gov/avr/AFS/FARS/far_idx.htm)

2 .Relevant articles from newspapers, periodicals, aviation journals, supplemental books, computer databases and miscellaneous other sources of information.

COURSE HOURS

Southern Illinois University has established the following hours during which class will be held: 8:00 a.m. to 4:50 p.m. Please be advised that adherence to these hours is a requirement of both the Federal government and the University. A one hour break will be given for lunch and we will take a short break at the end of each hour.

ATTENDANCE POLICY

Attendance in class is an important element of the Southern Illinois University Off-Campus Aviation Management Program. It is also very important because of the role that class participation plays in the learning process. It will be the responsibility of the student to obtain classroom materials, lecture notes and complete missed assignments and/or exams resulting from absences. Anyone missing more than two days of class will be given a failing grade, unless because of exceptional circumstances, other arrangements are agreed to by SIU.

COURSE REQUIREMENTS: GRADING

1. Midterm Examination 100 points
2. Final Examination 100 points
3. Miscellaneous Assignments 150 points
Total 350 points

Grades are calculated as follows:

315 or more points = A 90% or more
280-314 points = B 80-89%
245-279 = C 70-79%
210-244 = D 60-69%
210 points or below = F 59% or below

ACADEMIC HONESTY

Students are required to abide by the Southern Illinois University rules governing academic honesty and student conduct. If there are any questions regarding SIU rules and procedures, please consult with the Base Coordinator or Program Advisor. A written set of standards is available from Southern Illinois University.



AVAILABILITY OF INSTRUCTOR

Although I am based in Phoenix, Arizona, I will do all that I can to make myself available to provide assistance to students in their research and class preparation. I can meet individually with students before or after class on an as needed basis. If there is a need to contact me between class weekends I can be reached at (602) 254-6300 during working hours; and at (602) 279-7356 during the evening. My E-Mail Address is hwolfeaz@home.com. All students are welcome to contact me with any questions or concerns that they have; and are encouraged to use E-mail. I check my E-Mail every evening and will respond to all requests received.



COURSE OUTLINE/ASSIGNMENTS

First Weekend

Read Chapters 1,2,4 and 6 in Introduction to the Aviation Regulatory Process by Adamski and Doyle.

1. Course introduction
2. Government regulation versus private enterprise
3. The evolution of regulation and regulatory agencies.
4. Introduction to the Federal Register/Code of Federal Regulations
5. The FAA and its role in safety regulation.
6. National Transportation Safety Board

Second Weekend

Read Chapters 3, 5, 7 in Introduction to the Aviation Regulatory Process and pages in the Course Outline addressing the economic regulation of the airlines.

1. The CAB and Economic Regulation
2. The deregulation of the airline industry
3. Midterm examination
4. The rulemaking process
5. Case studies of rules and proposed rules.
6. Research on Rules and Proposed Rules
7. Environmental Regulation

Third Weekend

Read Chapters 8 and 9 in Introduction to the Aviation Regulatory Process by Adamski and Doyle.

1. Environmental regulation (continued)
2. State regulation of air transportation.
3. Local regulation of air transportation
4. International air transportation regulation
5. The future of regulation
6. Final Examination


About the Course

This is not a course that requires memorizing regulations. Its focus
is on understanding the process that federal, state and local
government agencies use to control the aviation industry. Government
regulaton will be compared with free-market practices to stimulate
discussion and to evaluate the effectiveness of the regulatory system.

Several years ago, one of my students asked me with a certain amount
of embarassment "Why does the federal government regulate the aviation
industry?" He was embarrassed because he thought that it was a stupid
question and that the class and instructor might laugh at him.
In fact, it wasn't a stupid question at all. It was a brilliant
question because of its simplicity and because it got to the heart of
the matter so elegantly. After a few seconds of silence, I
responded, "The federal government regulates the aviation industry
because the public expects the government to protect it from things
over which it has no control."

When an airliner crashes and hundreds of innocent people are killed,
the public and the families turn to the Federal Aviation
Administration with outrage and wonder how the tragedy could have
possibly taken place. Had there been more oversight of the airline in
question, the crash might not have occurred. While the criticism
may not always be fair, it certainly does demonstrate why government
is expected to exert its influence over private enterprise.

To my way of thinking, there is no such thing as a stupid question.
What is stupid is being afraid to ask a question that may give you a
better understanding of the subject matter or educate one of your
classmates. Never feel embarrassed about asking a question.
Asking questions adds immeasurably to the class, offers more
opportunity for interaction and helps add variety to the eight hour
class day.

Southern Illinois University Off-Campus Program requires that class be
held from 8:00 a.m. in the morning to 4:50 p.m. with breaks during the
day. While this requirement may appear burdensome, it emphasizes the
premium that SIU places on in class interaction and learning in the
class room. It also sets the SIU program apart from other
universities that are unwilling to adhere to strong academic
standards. When you graduate with a degree from SIU, your diploma
has credibility.
Among the major questions that will be answered in this class are:

1. What prompted the federal government to regulate the aviation
industry in the first place and how did our regulatory system evolve
to the system in place today?
2. What does the Federal Aviation Administration do to ensure the
safety of the aviation industry?
3. How do airlines operate today in a competitive environment,
compared with the pre-deregulation era when their business practices
were tightly controlled by the federal government?
4. How can I participate in the rulemaking process and have some
impact on the regulations issued by the federal government?