1. What are the current issues facing the air industry? Discuss how each impacts the industry, its customers, and employees.

2. Discuss the ways in which air carriers compete. How have regulatory changes affected this competition?

3. How does the fuel cost and efficiency affect both air carrier costs and pricing?

4. Do air carriers have economies of scale at any level? Economies of density? Discuss and support your answer with examples.

5. Discuss the length of haul and carrying capacity of the air carriers. Explain how they both favor and hinder air carriers from a competitive standpoint.

6. What would be the impact of higher fuel charges on the water carrier industry?

7. The typical pipeline company has fixed costs. What economic factors account for the situation? What special problems do this present?

8. Intermodal competition is more intense than intramodal competition for water carriers. Why?

9. What impediments slow technological progress in the water carrier industry?

10. The pipeline has approximately 100 companies, as compared to the motor carrier industry with more than 50,000. How doesyour account for this difference, given the fact that they both carry approximately the same volume of intercity ton miles?