1. Make a list of those factors that determine the contestability of a particular air route. 2....

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1. Make a list of those factors that determine the contestability of a particular air route.

2. In the UK, train operators compete for franchises to run services on a particular route. The franchises are normally for 7, 10, 12 or 15 years. The franchise specifies prices and minimum levels of services (frequency, timing and quality). Would this be a good system to adopt in the airline market over particular routes? How is the airline market similar to/different from the rail market in this regard?

3. In a period of rising fuel prices, and thus higher airfares, do you think that the low-cost carriers are more or less vulnerable than the traditional carriers in the short term? Would your answer differ when we look at the longer-term decisions of passengers?

4. In a recession, do you think that the low-cost carriers are more or less vulnerable than the traditional carriers? And in a boom?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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