In 2003 an airline in United State lost more than half, on average, of the foreign passengers they had previously served each year. Researchers have alleged that this extreme drop resulted from a rise in price of tickets for international lines from 60 to $90 per 1,000 miles**Which of the following, if feasible, offers the best prospects for alleviating the problem of the drop in passengers as the researchers assessed it?**it?Choose the best optionClear ResponseCooperating with other airlines to provide more international lines.Allowing foreign passengers to pay the same as the previous international lineReemphasizing the goals and mission of the airline as serving both domestic passengers and foreign passengersIncreasing the financial resources of the airline by raising the ticket price for domestic passengersOffering superior VIP service for foreign passengers

Worldwide Airlines scheduled December flights based on last year’s travel data. However, when December arrived, Worldwide Airlines cut 1,200 flights. This demonstrates thatMultiple Choiceservice providers may find it hard to customize their services based on the needs and preferences of customers.services cannot be provided at the point of consumption.it is extremely easy for service providers to standardize their output.it can be extremely difficult for service providers to accurately estimate the demand for their services.

Why is the price of jetfuel riskier for foreign airlines as compared to U.S. airlines?

The price of an airplane ticket for a return trip is $600. The airline company attracts an average 500 daily bookings at this price. It has been observed that there is a linear relationship between the price of the return trip and the number of bookings. This is such that for every $50 decrease in price, there is an additional 100 bookings. Form a linear equation that relates the number of bookings with the price of the ticket.

By conducting industry analysis for the  U.S. airline from the module, here is a summary of the findings - Threat of new entry - StrongSet up complex but capital costs lowRetaliation by incumbents a key barrierBuyer power - WeakRetailers - few big retailers (e.g. Expedia, AmEx) but mostly smaller.Some big customers (e.g. large corporations)Customers price sensitiveIndustry rivalry - StrongExcess capacityHigh creation of fixed to variable costs (95%)High exit barriers (protection by chapter 11 - United, Delta, US airways)Long-lived assets (aircraft)Concentration (fairly high)Product difference (low)Threat of substitute - WeakOther modes of transportAlternatives to face-to-face meetingsSupplier power - StrongLabour unions (pilots, engineers)Aircraft manufacturersAirportsWhat does this analysis mean? Group of answer choicesThis industry players have high bargaining power over its suppliers.The industry players have low bargaining power of its buyers.This industry is very profitable.This industry is not profitable.

Multiple Choice QuestionWhat is the result for the United States when the sale of U.S. goods and services abroad is significantly lower than its purchase of imported goods and services?Multiple choice question.The current account experiences a surplus.Foreign debt decreases.Official reserves expand.Foreign debt increases.