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1. True False U.S.airlines have been highly profitable each year since deregulation. 2. Which of the following is NOT part of Southwest

1.       True   False      U.S.airlines have been highly profitable each year since deregulation.

2.       Which of the following is NOT part of Southwest Airlines'low-cos business strategy?

a.    point-to-point rather than hub and spoke route structure.

b.     using only non-union labor.

c.      flights using less crowded,secondary airports in many cities.

d.    using only one type of aircraft (theBoeing737).

3    The highest categories of costs for U.S.airlines recently have been

a.   commissions,booking fees,and credit card expense

b.  aircraft (includingaircraftrental,depreciationofcompany-ownedaircraft,andmaintenance)

c.    labor and aircraft fuel

d.  insurance

4) 1.       True False In recent years,most major car rental companies have disposed of many oft their cars after 5to10 months by selling them back to the car manufacturers under repurchase agreements.

5)1.      Initsearlydecades,EnterpriseRent-a-Carplannedtosucceedinthecarrentalbusinessby

a.    providingabroadarrayofpremiumcarrentalservicesatrelativelyhighprices.

b.     focusingitseffortsonservingbusinesstravelersatairports.

c.      doinganexcellentjobofservingtheinsurancereplacementcarrentalmarket.

d.    matchingHertz'sandAvis'sservicesbutcharginglowerprices.

6)1.        SinceCongresscreatedAmtrak,thecompany

a.    hasearnedsmallpositiveprofitsinmostyears.

b.     hashadsmalllossesinmostyears.

c.     haslostmoneyeveryyear,totalingabout$30billion.

d.    hasjustaboutbrokeneven(nearzeroprofits)inmostyears.

7) 1.      Whichofthefollowingmodesoftravelisaninferiorgood?

a.    airlinetravel

b.     traintravel

c.      cruiseshiptravel

d.    automobiletravel

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Question 1: The answer is False. Government regulation era was full of over prices and barriers to entry and exit. Since the... View the full answer

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