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

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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.

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