At the time when airline companies waged a tariff war there was a tremendous increase in demand for airplane tickets and at the same time it had changed people's preferences for air transportation services. In connection with this phenomenon, try to explain:

a.Explain economically the link between the reduction in airplane ticket prices and the demand for bus and boat tickets?

b.What factors led to an increase in airline services with relatively cheap ticket prices.

c.According to your income, on the market structure, does this aviation transportation present your argument?

d. What is the competitive strategy that must be carried out by each airline to dominate the market (market leader)?