Cost Structures in the Airline Sector

1. Do you agree that the variable cost associated with a passenger can be zero? Can this be said for both low-cost and traditional carriers?
2. What options do more traditional carriers have to improve their fixed cost base?

Question A2 Cost structures in the airline sector a) Do you agree that the variable cost associated with a passenger can be zero? Can this be said for both low-cost and traditional carriers? (200 words) (3 marks) b) What options do more traditional carriers have to improve their fixed cost base? (200 words)