LGAV 3100 Exam 2 Questions With
Verified Answers
T/F A long-term trend is affected only by irregular variations - ANSWER True
Freehand lines and averaging are methods used in - ANSWER Smoothing
This type of variation reflects weather and social trends - ANSWER Seasonal
T/F Forecasting was used during the mid 1960's to accurately predict the continued
expansion of the aviation industry into the 1970's - ANSWER False
If John MacLean, VP of American Airlines Purchasing needs to forecast demand for
route-planning over the next few years, what type of forecast would he use? - ANSWER
Medium-term
Economies of scope award competitive advantages to - ANSWER Large carriers
Deregulation has dramatically changed how airlines market their product. All of the
following are examples of new market strategies EXCEPT - ANSWER increased
point-to-point service
_______ is the process of selling existing products to new markets - ANSWER Market
development
"Promotional fares" are typically offered - ANSWER all of the above
The objective of "yield" or "inventory" management is to ____ _____ by _____ _____ -
ANSWER maximize profit, maximizing revenue
A change in "non-price determinant" of demand would typically result in a change in -
ANSWER demand
If a price is set below the market-clearing equilibrium level ("too low"), then the quantity
demanded will be _____ the quantity supplied, resulting in a ___ of the product/service -
ANSWER higher than, shortage
"Joint fares" are single fares that cover or apply to transportation - ANSWER over the
lines or routes of two or more carriers
JAMTOs, FTOs and CATOs are examples of product - ANSWER placement
Price levels are determined by - ANSWER demand, production and marketing costs
T/F Over time, air cargo transportation has outperformed expectations by surpassing
passenger revenues - ANSWER False
, Demand for products transported by air is - ANSWER Infrequent, seasonal
Air freight rates are effected by - ANSWER All of the above (characteristics and volume
of shipments, direction of travel, capacity restraints)
Joint rates are often applied to shipments that - ANSWER Are transported on more than
one airline
FedEx didn't become profitable until - ANSWER REA declared bankruptcy
If mediation under the RLA is unsuccessful, the RLA may release both parties to use
self-help. What potential problems can be solved under self-help? - ANSWER Carriers
can change employee wages, and unions can start a strike
What is the difference between industrywide and pattern bargaining? - ANSWER A & B
(Industry wide bargains apply to all firms and their employees, pattern bargaining
reflects agreements between individual airlines and their unions; industry wide
bargaining applied only to airline pilots)
T/F When a dispute between management and a union occurs, neither party makes
great effort to settle issues during collective bargaining - ANSWER True
T/F An airline's labor force is usually represented by one union - ANSWER False
With the introduction of jets, what were some of the problems airlines faced? - ANSWER
Pilots and ground personnel had to be restrained to adjust to the new systems
Code-sharing can - ANSWER A & B (make service on a route economically viable,
stimulate traffic by providing more frequent service)
It is difficult for US carriers to establish hubs in foreign countries and vice versa
because - ANSWER A & B (many nations prohibit cabotage, fifth-freedom rights limit a
carrier's flight frequency and competitive advantage against local traffic)
The pursuit of open skies policy was facilitated by - ANSWER A strong industry
After WWI, the International Chamber of Commerce was designed to - ANSWER
Establish a uniform code of international private commercial aviation
In the late 1960's and early 1970's, scheduled carriers diverted from their two-class fare
structure to a new pricing structure in order to - ANSWER Price different demand
elasticities differently
T/F In crisis communication, sudden, smoldering, and bizarre are three types of crisis -
ANSWER True
T/F Airlines can drive revenue and customer service through social media - ANSWER
True
Airlines use social media for - ANSWER All of the above (brand development, product
Verified Answers
T/F A long-term trend is affected only by irregular variations - ANSWER True
Freehand lines and averaging are methods used in - ANSWER Smoothing
This type of variation reflects weather and social trends - ANSWER Seasonal
T/F Forecasting was used during the mid 1960's to accurately predict the continued
expansion of the aviation industry into the 1970's - ANSWER False
If John MacLean, VP of American Airlines Purchasing needs to forecast demand for
route-planning over the next few years, what type of forecast would he use? - ANSWER
Medium-term
Economies of scope award competitive advantages to - ANSWER Large carriers
Deregulation has dramatically changed how airlines market their product. All of the
following are examples of new market strategies EXCEPT - ANSWER increased
point-to-point service
_______ is the process of selling existing products to new markets - ANSWER Market
development
"Promotional fares" are typically offered - ANSWER all of the above
The objective of "yield" or "inventory" management is to ____ _____ by _____ _____ -
ANSWER maximize profit, maximizing revenue
A change in "non-price determinant" of demand would typically result in a change in -
ANSWER demand
If a price is set below the market-clearing equilibrium level ("too low"), then the quantity
demanded will be _____ the quantity supplied, resulting in a ___ of the product/service -
ANSWER higher than, shortage
"Joint fares" are single fares that cover or apply to transportation - ANSWER over the
lines or routes of two or more carriers
JAMTOs, FTOs and CATOs are examples of product - ANSWER placement
Price levels are determined by - ANSWER demand, production and marketing costs
T/F Over time, air cargo transportation has outperformed expectations by surpassing
passenger revenues - ANSWER False
, Demand for products transported by air is - ANSWER Infrequent, seasonal
Air freight rates are effected by - ANSWER All of the above (characteristics and volume
of shipments, direction of travel, capacity restraints)
Joint rates are often applied to shipments that - ANSWER Are transported on more than
one airline
FedEx didn't become profitable until - ANSWER REA declared bankruptcy
If mediation under the RLA is unsuccessful, the RLA may release both parties to use
self-help. What potential problems can be solved under self-help? - ANSWER Carriers
can change employee wages, and unions can start a strike
What is the difference between industrywide and pattern bargaining? - ANSWER A & B
(Industry wide bargains apply to all firms and their employees, pattern bargaining
reflects agreements between individual airlines and their unions; industry wide
bargaining applied only to airline pilots)
T/F When a dispute between management and a union occurs, neither party makes
great effort to settle issues during collective bargaining - ANSWER True
T/F An airline's labor force is usually represented by one union - ANSWER False
With the introduction of jets, what were some of the problems airlines faced? - ANSWER
Pilots and ground personnel had to be restrained to adjust to the new systems
Code-sharing can - ANSWER A & B (make service on a route economically viable,
stimulate traffic by providing more frequent service)
It is difficult for US carriers to establish hubs in foreign countries and vice versa
because - ANSWER A & B (many nations prohibit cabotage, fifth-freedom rights limit a
carrier's flight frequency and competitive advantage against local traffic)
The pursuit of open skies policy was facilitated by - ANSWER A strong industry
After WWI, the International Chamber of Commerce was designed to - ANSWER
Establish a uniform code of international private commercial aviation
In the late 1960's and early 1970's, scheduled carriers diverted from their two-class fare
structure to a new pricing structure in order to - ANSWER Price different demand
elasticities differently
T/F In crisis communication, sudden, smoldering, and bizarre are three types of crisis -
ANSWER True
T/F Airlines can drive revenue and customer service through social media - ANSWER
True
Airlines use social media for - ANSWER All of the above (brand development, product
