Congress established a special labor law for railroad and airline workers for several reasons. Because of transportation’s critical importance to the economy, an essential goal of public policy has been to ensure that both passenger and freight transportation services continue without interruption. Production can cease—at least temporarily—in most other industries without causing significant harm to the economy. When transportation stops, however, production stops. Thus Congress saw fit to enact a statute that contained provisions to ensure that labor strife would not halt rail services. Primarily because of the importance of air mail transportation, the Railway Labor Act of 1926 was extended to the airline industry in 1936.

The first section of this book introduces labor policy and presents a history of the labor movement in the United States. Discussing early labor legislation, Kaps focuses on unfair labor practices and subsequent major labor statutes.

The second section provides readers with a comparison of labor provisions that apply to the railroad and airline industries as well as to the remainder of the economy.

The final section centers on the evolution of labor in the airline industry. The author pays particular attention to recent events affecting labor in commercial aviation, particularly the effect of airline deregulation on airline labor.

Although introductions to courses in finance exist for a variety of fields, Robert W. Kaps provides the first text to address the subject from an aviation viewpoint. Relying on his vast experience—twenty-plus years in the airline industry and more than thirty years in aviation—Kaps seeks not only to prepare students for careers in the aviation field but also to evoke in these students an excitement about the business. Specifically, he shows students how airlines, airports, and aviation are financed. Each chapter contains examples and illustrations and ends with suggested readings and references.

Following his discussion of financial management and accounting procedures, Kaps turns to financial management and sources of financial information. Here he discusses types of business organizations, corporate goals, business ethics, maximizing share price, and sources of financial information.

Kaps also covers debt markets, financial statements, air transport sector revenue generation, and air transport operating cost management, including cost administration and labor costs, fuel, and landing fees and rentals. He describes in depth air transport yield management systems and airport financing, including revenues, ownership, operations, revenue generation, funding, allocation of Air Improvement Program funds, bonds, and passenger facility charges.

Kaps concludes with a discussion of the preparation of a business plan, which includes advice about starting and running a business. He also provides two typical business plan outlines. While the elements of fiscal management in aviation follow generally accepted accounting principles, many nuances are germane only to the airline industry. Kaps provides a basic understanding of the principles that are applicable throughout the airline industry.