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A firm is competing in the economy market with a cost per available seat mile of $0.17 (industry average: $0.21), revenue per passenger mile of
A firm is competing in the economy market with a cost per available seat mile of $0.17 (industry average: $0.21), revenue per passenger mile of $0.22 (industry average: $0.35), and marketing expense of 0.5% of revenue. What would you recommend they do to increase profitability?
A) Offer fare sales.
B) Improve cabin service.
C) Increase marketing.
D) Reduce operating costs.
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