Module 9 - Discussion- Airlines, Water Carriers and Pipelines.docx - How do air carriers price their services Is the weight or density of the shipment a

Module 9 - Discussion- Airlines, Water Carriers and Pipelines.docx

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How do air carriers price their services? Is the weight or density of the shipment a factor? Explain this factor as part of your answer. How does air carrier pricing relate to the value of the goods being transported?Air carries base their prices depending on the type of service they offer. Cargo pricing is dependent mainly on weight and/or cubic dimensions. If a shipment has a very low weight, it will be assessed by the amount of space which is required, which is usually 8 pounds per cubic foot. This allows adequate compensation to the airline in exchange for the use of space being used. Airline pricing for passenger service is characterized by the discounts from full fare. Dependent upon services offered to the customers. Many factors contribute to this which include competitors pricing, day and time of flight, business vs. couch and weight of baggage. When considering pricing related to the value of the goods being transported, value-of-service is used. Value of service rates are demand based and consider the sensitivity of the cargo being shipped to freight weights. The less sensitive cargo is to rates, the higher the rate will be. What is the role of the government in air transportation? Include both economic and safety inyour answer.Air carriers’ terminals are financed by a government entity. The carriers pay for the use of the airport through landing fees, rent and lease payments for space, taxes on fuel, and aircraft registration taxes. The US Government created the Office of Homeland Security to be the agency to monitor and manage the security of the U.S borders. This agency, as well as the Transportation Security Administration, are responsible for the safety of passengers while in airports and in flight. New screening processes have been implemented for passengers in airports, as well as new guidelines for carry-on luggage. New legislation has been passed to ensure that all freight loaded onto passenger carrying flights is 100% screened.Why are pipelines unknown to many individuals? Do you think the pipelines should advertise to change this?
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