1. The airline industry, despite continued rapid growth, has been only marginally

profitable over the last 50 years. What characteristics of the industry result in the lack

of satisfactory profits?

2. Characterize the demand for air travel over time; that is, by time of day, day of the

week, season, and business cycle.

3. Define and discuss the differences between qualitative, time series, and causal

(econometric) forecasting methods.

4. Define economies of scale. Are economies of scale evident in the airline industry? What

is the implication for market entry?

5. Discuss one aspect of the low-cost-carrier business model, such as Ryanair's, that

provides a sustainable cost advantage over a large network carrier, for example, British

Airways.