MBAA 523 Advanced Aviation Economics - final

Question 3

Why would a network carrier, such as American Airlines, provide service to a small city that an archetypical low-cost-carrier would not?

Question 4

Most airline routes in the US, Europe, and increasingly worldwide, are intensely competitive, yet most are oligopolies. What model of oligopoly is consistent with the price competition typical of the airline industry? Explain.

Question 5

Define and discuss the major types of air cargo (characterized by the motivation of the shipper or the reason for using air freight instead of some form of ground transportation).