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?
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