airline management final exam review

Question 0

Since the early 1970s, the air carriers have focused on a marketing concept in which research and development plays an important role. This started what is referred to as the

Answer 0

Consumer oriented period

Question 1

Hub and spoke carriers are appealing because they enable carriers to

Answer 1

1) provide service to a larger number of city pairs
2) concentrating the flow of passengers toward a central point
3) able to attract passengers

Question 2

One of the fastest growing airline target markets is the ________ market.

Answer 2

Singles

Question 3

The frequent flier program:

Answer 3

is important because roughly 5 percent of fliers account for about 40 percent of all trips taken annually

Question 4

Hub-and-spoke networks are appealing because they enable carriers to:

Answer 4

All of the above

Allows service of more city-pairs, etc.

Question 5

Airline passenger fares declined during the period 1962-1968 primarily due to:

Answer 5

Economies of jet aircraft

Question 6

Fares which allow two or more carriers to serve a market which they are unable to do so individually are called:

Answer 6

Joint fares

Question 7

Which of the following would probably cause a decrease in demand for air transportation?

Answer 7

Recessionary economy

Question 8

Passengers tend to be elastic in which of the following situations?

Answer 8

Pleasure travel, highly competitive route, a lot of time to purchase the ticket

Question 9

Gains and losses arising from foreign exchange transactions are:

Answer 9

None of the above

Question 10

Landing fees are are a variable cost

Answer 10

True

Question 11

Depreciation of flight equipment is a component of direct operating cost.

Answer 11

True

Question 12

The first air cargo services provided was:

Answer 12

Air mail

Question 13

Federal Express was established to provide:

Answer 13

door-to-door overnight service for small packages.

Question 14

The primary factor in the growth of air freight over the last 25 years has been the:

Answer 14

Larger and more efficient aircraft

Question 15

Mail continued to be the dominant revenue source for the airlines until the arrival of the DC-6 in 1946.

Answer 15

False

Question 16

Today, air mail represents a little over 10 percent of the airlines’ revenues.

Answer 16

False

Question 17

Air cargo represents a much greater percentage of total revenue for U.S. air carriers than European air carriers.

Answer 17

False

Question 18

Which of the following is a maintenance efficiency goal?

Answer 18

All of the above

Question 19

Which of the following factors does not impose a problem in assigning flight crews to a schedule?

Answer 19

Aircraft payload and range

Question 20

Which of the following would be the best time for scheduling a flight from San Francisco to New York?

Answer 20

11:00AM

Question 21

Determining if there are enough gate positions for the number of planes on the ground simultaneously, including a cushion for early arrivals or delayed departures is a major concern of:

Answer 21

Ground operations

Question 22

Which of the following schedule planning problems is unique to the airlines?

Answer 22

Sensitivity of schedule sale ability

Question 23

Hub-and-Spoke scheduling increases:

Answer 23

All of the above

Number of city pairs and airline can serve; congestion and delay; noise and air pollution

Question 24

Operational factors affecting the flight department which must be taken into consideration in schedule planning include all of the following, except

Answer 24

Availability of gates

Question 25

Periodic maintenance is performed on an aircraft at various stations while the aircraft is routed throughout the carrier’s system.

Answer 25

True

Question 26

Pilots bid for their flight schedules; the schedules are awarded on the basis of seniority

Answer 26

True

Question 27

Hub-and-spoke scheduling was first started after deregulation of the industry.

Answer 27

False

Question 28

Airframe commonality between the following models will reach a high of 85%

Answer 28

A330 A340

Question 29

A carrier’s current resources, corporate objectives, projected industry environments, and market strategy are all:

Answer 29

Listed in the federal aviation regulation

Question 30

Refurbishing older aircraft:

Answer 30

Can sometimes cost As much as the original price

Question 31

The hub-and-spoke route system has had an effect on fleet planning in all of the following ways, except:

Answer 31

to postpone the acquisition of new aircraft

Question 32

Which two of the four P’s of marketing are the most competitive variables today?

Answer 32

Price and…

Question 33

Hub and spoke networks are appealing because they enable carriers to:

Answer 33

1) provide service to a larger number of city pairs
2) makes possible service between city pairs that do bit few sufficient pax flows to support nonstop service in a point to point system

Question 34

In flight computer games would be an example of:

Answer 34

Qualitative service

Question 35

The demand for air transportation is said to be inelastic if:

Answer 35

Pax are relatively unresponsive to price changes

Question 36

Indirect operating expenses include:

Answer 36

Costs that will remain unaffected by a change of aircraft type because they are not directly dependent on aircraft ops, including pax related expenses

Question 37

Fixed costs include:

Answer 37

Those direct operating costs that in total do not vary with change in available seat miles (ASM’s)

Question 38

Flight crew salaries are considered indirect operating costs T/F

Answer 38

False

Question 39

Landing fees are a variable cost T/F

Answer 39

True

Question 40

Federal express was established to provide:

Answer 40

Door to door overnight service for small packages

Question 41

Which of the following factors will not be significant for the continual growth of air cargo

Answer 41

Currently aircraft being used for cargo were originally made for pax use

Question 42

Until the mid 1970’s, air express was a cooperative effort by the airlines and railway express agency T/F

Answer 42

True

Question 43

The schedule planner’s most important function is to:

Answer 43

Evaluate all of these varied and partially conflicting objectives and come out with the optimal balance between these several goals

Question 44

Which of the following factors does not impose a problem in assigning flight crews to a schedule?

Answer 44

Aircraft payload and range

Question 45

Advantages a of hub and spoke scheduling include :

Answer 45

• providing an enormous “multiplier” effect as to the number of city pairs an airline can serve with a given amount of flight mileage
• also offense advantages to pax

Question 46

During bad wx, delays at one hub airport creates delays system wide T/F

Answer 46

True

Question 47

With the advance of computers, the analytical work performed by schedule planners has been reduced T/F

Answer 47

False

Question 48

The success of the airbus in the world market is largely attributable to:

Answer 48

Timing

Question 49

Airline labor unions are organized on a :

Answer 49

Group basis

Question 50

The two tier pay system:

Answer 50

Is a form of averaging down wages

Question 51

A method of financing aircraft in which a bank or group of banks lends the required money, but holds the title is:

Answer 51

Equipment trust financing

Question 52

What is the purpose of long term cash forecasts?

Answer 52

Appraise proposed capital projects; provide information needed to establish a financing plan and arrange for long term financing ( the latter not being needed for short term)

Question 53

The largest single source of internal funds for a carrier is:

Answer 53

Depreciation

Question 54

ICAO was formed under:

Answer 54

The Chicago conference

Question 55

An international code sharing agreement can do all of the following except:

Answer 55

• doesn’t give them the right to set fares jointly

- provide little in the way of service enhancements