6.What two, sometimes conflicting, goals were established by Congress for the Civil Aeronautics Board (CAB)? 7.What regulated industry was the CAB patterned from? 8.Why did Congress not trust the free market to discipline the U.S. airline industry? 9.What did the CAB regulate? Why? 10.Did the CAB allow airlines to compete on price? 11.Airline fares have declined in real terms since the introduction of the Douglas DC-3 throughout the regulated era. What has enabled this decline? 12.What are the three factors used to compute the Productivity Index? What is the relationship between productivity and standard of living? 13.Describe the differences among Trunk, Local Service, Flag (international), and Supplemental carriers in the post WWII period. 14.How were supplemental carriers and Capital Airlines responsible for early price (fare) competition? 15.How did the introduction of wide-body aircraft (B-747, DC-10, L-1011) in the early 1970s contribute to industry losses? 16.What factors led to airline losses in the early to mid-1970s? How did these losses contribute to the move toward deregulation?
17.What was the result of American Airlines’ Supersaver Fares on the amount of passengers carried? 18.What were the arguments for and against deregulation? What other industries have been deregulated? 19.A decade after the passage of the Airline Deregulation Act, what were the major results of deregulation? 20.What is the relationship between the post-deregulation development of hub-and-spoke route systems and airline mergers and acquisitions that occurred in the same period? 21.How might membership in an airline frequent flier program influence a businessman to book an airline flight which is not in the best interests of his employer? How might a travel agency commission override (TACO) influence a travel agent to book a flight not in the best interests for her customer? 22. Explain how a major hub-and-spoke carrier might drive a small new entrant carrier from its new route the major carrier’s hub city (for example, Frontier Airlines begins service from Los Angeles to Minneapolis, Northwest Airlines’ home and major hub city). 23. Compare process for economic airline deregulation in the US, European Union and China.
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- Fall '16
- Kelly Lawton
- United Airlines, Delta Air Lines, Pan American World Airways, Cab, Douglas DC-3