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