3. What effect will each of the following have on the demand for Airline As passenger trafc?...

3. What effect will each of the following have on the demand for Airline A’s passenger traffic?

a. Competitor B improves its on-time performance.

b. Competitor B offers a special promotional fare on the same route as Airline A’s.

c. Competitor C increases the number of connecting flights at a particular airport served by Airline A.

d. A spur line connecting the airport with an interstate highway is completed.

e. The airport authority requests that a commuter airline share ticket and gate space with Airline A.

f. Airline A’s image is tarnished as a result of a recent wildcat strike.

g. Competitor D increases its advertising, accentuating in-flight services.

h. Competitor E experiences a serious crash on takeoff.

i. The economy experiences an upturn, unemployment drops, and business expansion is under way.

j. A hotel chain offers a specially priced three-day package, including rental car.