Question 1

Distinguish between private air carriers and for-hire air carriers.

Accepted Answer

Private air carrier is air transportation owned by a company for transportation of its own personnel or freight in aircraft that the company owns or leases. Most private air is used to transport company personnel. For-hire carriers provide air transport services to customers for a fee. For hire carriers can be separated into two categories-according to type of service offered (all-cargo, air taxi, commuter, charter, and international) and annual revenue (majors, nationals, regionals).

Question 2

Which is the best reason for the increase in airline intramodal competition since deregulation in 1978?

Accepted Answer

A)  substitution of smaller aircraft for larger aircraft 
B)  U.S. carriers forming alliances with foreign airlines such as United with Air Canada 
C)  increased use of discount fares in lieu of full fares 
D)  new air carriers entering given markets 
A)  substitution of smaller aircraft for larger aircraft 
B)  U.S. carriers forming alliances with foreign airlines such as United with Air Canada 
C)  increased use of discount fares in lieu of full fares 
D)  new air carriers entering given markets D

Question 3

Describe the factors that affect price in the airline industry.

Accepted Answer

Ticket restrictions: Staying over a weekend or advanced purchase. 
Business travel: Business people generally pay more due to rigid schedules and they depart and return during high demand times. 
Impact of competition from other airlines. 
Time and day of departure and return. 
Level of service (coach versus first class).

Question 4

Technically, what is a commuter airline?

Accepted Answer

It is a re

Question 5

Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs?

Accepted Answer

A)  flying operations 
B)  Maintenance 
C)  Administration 
D)  fuel 
A)  flying operations 
B)  Maintenance 
C)  Administration 
D)  fuel

Question 6

The traffic manager for WLG, Inc is evaluating transportation modes for shipment of the company's products. WLG's components division produces electronic assemblies according to buyer's specifications. The typical product is high-value--in the range of $30,000 to $50,000, small--less than 8 inches square, very fragile, insurance costs are $1750 per day for each item, and the shipment distance is 2,500 miles. Which mode of transportation would be most appropriate?

Accepted Answer

A)  Amtrak 
B)  Air 
C)  freight forwarder 
D)  Time guaranteed delivery truck 
A)  Amtrak 
B)  Air 
C)  freight forwarder 
D)  Time guaranteed delivery truck

Question 7

Air freight transportation is attractive to shippers because of the lower packaging costs associated with the transport of cargo. Which air transportation characteristics allow reduced packaging by shippers?

Accepted Answer

A)  relatively smooth ride and automated ground handling systems 
B)  higher liability assumed by the air carriers and prompt payment of claims 
C)  quick acknowledgment of liability by the air carriers and prompt payment of claims 
D)  strict safety regulation by the FAA and higher liability limits required by the STB 
A)  relatively smooth ride and automated ground handling systems 
B)  higher liability assumed by the air carriers and prompt payment of claims 
C)  quick acknowledgment of liability by the air carriers and prompt payment of claims 
D)  strict safety regulation by the FAA and higher liability limits required by the STB

Question 8

How much did the U.S. airlines spend on fuel in 2014?

Accepted Answer

A)  $60B 
B)  $46.3B 
C)  $50M 
D)  $60M 
A)  $60B 
B)  $46.3B 
C)  $50M 
D)  $60M

Question 9

Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market?

Accepted Answer

A)  The numbers of carriers did increase initially but has remained steady of late. 
B)  The numbers of carriers did initially increase and the numbers continue to grow. 
C)  The numbers of carriers initially decreased but increased by 1994. 
D)  The numbers of carriers initially decreased and have continued to decrease. 
A)  The numbers of carriers did increase initially but has remained steady of late. 
B)  The numbers of carriers did initially increase and the numbers continue to grow. 
C)  The numbers of carriers initially decreased but increased by 1994. 
D)  The numbers of carriers initially decreased and have continued to decrease.

Question 10

What is the situation as related to airline labor? Be sure to include required skill levels, wages and the impact of unions.

Accepted Answer

Air transportation employs many people w

Question 11

Describe the nature of service competition in the airlines.

Accepted Answer

Primary service competition is on freque

Question 12

Describe Economies of Scale in airline operations.

Accepted Answer

Airline economies of scale result from e

Question 13

Which of the following commodities would be most likely to be shipped on an air carrier?

Accepted Answer

A)  commodities in high volume 
B)  low-value finished goods 
C)  raw materials and partially-finished goods 
D)  high-value and time-sensitive goods 
A)  commodities in high volume 
B)  low-value finished goods 
C)  raw materials and partially-finished goods 
D)  high-value and time-sensitive goods

Question 14

Shippers using air cargo transport may have to pay an over-dimensional charge. The charge is assessed by the carrier to gain a more appropriate revenue in which situation?

Accepted Answer

A)  when the cargo shipped does not weigh much but takes up a lot of space. 
B)  when the cargo is of a gaseous nature rather than a solid. 
C)  when the cargo is a solid rather than a gas. 
D)  when the shipment takes up all the available cargo space in the aircraft and matches the allowable load weight for the aircraft. 
A)  when the cargo shipped does not weigh much but takes up a lot of space. 
B)  when the cargo is of a gaseous nature rather than a solid. 
C)  when the cargo is a solid rather than a gas. 
D)  when the shipment takes up all the available cargo space in the aircraft and matches the allowable load weight for the aircraft.

Question 15

What does the operating ratio measure?

Accepted Answer

A)  number of seats sold divided by miles operated 
B)  operating expense divided by operating income 
C)  stock share price divided by the total number of shares outstanding 
D)  number of airplanes in the fleet divided by miles flown by type 
A)  number of seats sold divided by miles operated 
B)  operating expense divided by operating income 
C)  stock share price divided by the total number of shares outstanding 
D)  number of airplanes in the fleet divided by miles flown by type

Question 16

What are three functions performed at air terminals?

Accepted Answer

Load and unload pass

Question 17

Which aircraft has the highest cargo payload in terms of tons?

Accepted Answer

A)  B747-300 
B)  B747-F 
C)  MD-11 
D)  L1011 
A)  B747-300 
B)  B747-F 
C)  MD-11 
D)  L1011

Question 18

Most airline revenues arise from:

Accepted Answer

A)  freight shipments. 
B)  baggage shipments. 
C)  passenger travel. 
D)  aircraft leasing and support services to private aviation 
A)  freight shipments. 
B)  baggage shipments. 
C)  passenger travel. 
D)  aircraft leasing and support services to private aviation

Question 19

How many people were employed in the air carrier industry in 2013?

Accepted Answer

A)  100,000 
B)  500,997 
C)  374,573 
D)  over 1,000,000 
A)  100,000 
B)  500,997 
C)  374,573 
D)  over 1,000,000

Question 20

Each of the modes of transportation have a market niche in terms of the commodity transported by the mode. Describe the characteristics of the commodities transported by air carriers.

Accepted Answer

Air transportation is suitable for commo

Distinguish between private air carriers and for-hire air carriers.

Which is the best reason for the increase in airline intramodal competition since deregulation in 1978?

Describe the factors that affect price in the airline industry.

Technically, what is a commuter airline?

Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs?

Air freight transportation is attractive to shippers because of the lower packaging costs associated with the transport of cargo. Which air transportation characteristics allow reduced packaging by shippers?

How much did the U.S. airlines spend on fuel in 2014?

Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market?

What is the situation as related to airline labor? Be sure to include required skill levels, wages and the impact of unions.

Describe the nature of service competition in the airlines.

Describe Economies of Scale in airline operations.

Which of the following commodities would be most likely to be shipped on an air carrier?

Shippers using air cargo transport may have to pay an over-dimensional charge. The charge is assessed by the carrier to gain a more appropriate revenue in which situation?

What does the operating ratio measure?

What are three functions performed at air terminals?

Which aircraft has the highest cargo payload in terms of tons?

Most airline revenues arise from:

How many people were employed in the air carrier industry in 2013?

Each of the modes of transportation have a market niche in terms of the commodity transported by the mode. Describe the characteristics of the commodities transported by air carriers.

Global Supply Chains the Role and Importance of Transportation

Transportation and the Economy

Transportation Technology and Systems

Costing and Pricing for Transportation

Motor Carriers

Railroads

Water Carriers and Pipelines

Third Party Logistics

Transportation Risk Management

Global Transportation Management

Governmental Roles in Transportation

Issues and Challenges for Global Supply Chains

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Exam 7: Airlines

Distinguish between private air carriers and for-hire air carriers.

Which is the best reason for the increase in airline intramodal competition since deregulation in 1978?

Describe the factors that affect price in the airline industry.

Technically, what is a commuter airline?

Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs?

Air freight transportation is attractive to shippers because of the lower packaging costs associated with the transport of cargo. Which air transportation characteristics allow reduced packaging by shippers?

How much did the U.S. airlines spend on fuel in 2014?

Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market?

What is the situation as related to airline labor? Be sure to include required skill levels, wages and the impact of unions.

Describe the nature of service competition in the airlines.

Describe Economies of Scale in airline operations.

Which of the following commodities would be most likely to be shipped on an air carrier?

Shippers using air cargo transport may have to pay an over-dimensional charge. The charge is assessed by the carrier to gain a more appropriate revenue in which situation?

What does the operating ratio measure?

What are three functions performed at air terminals?

Which aircraft has the highest cargo payload in terms of tons?

Most airline revenues arise from:

How many people were employed in the air carrier industry in 2013?

Each of the modes of transportation have a market niche in terms of the commodity transported by the mode. Describe the characteristics of the commodities transported by air carriers.

Global Supply Chains the Role and Importance of Transportation

Transportation and the Economy

Transportation Technology and Systems

Costing and Pricing for Transportation

Motor Carriers

Railroads

Water Carriers and Pipelines

Third Party Logistics

Transportation Risk Management

Global Transportation Management

Governmental Roles in Transportation

Issues and Challenges for Global Supply Chains

Filters