Solved: Of the total passenger enplanements in the regional/commuter industry, market share

Of the total passenger enplanements in the regional/commuter industry, market share by the leading 50 carriers has: A. increased B. decreased C. remained fairly constant since the early 1980s D. remained fairly constant since the early 1990s All of the following are barriers to entry into the industry, except: A. financial requirements. B. frequent-flier programs. C. incumbent carriers economies of scope. D. aircraft availability.

Expert Answer

Answer

21:

In air transport industry, from 1980’s the number of carriers has reduced from 246 carriers to 74 carriers, the market share of the major carriers has increased. This is due to efficiency level fo operating the flights. The top 50 carriers have increased their number of flown hours, frequent flights, and better utilization of resources, this indicates increase in the market share in regional/commuter air transport industry.

ANS: A. Increased

22:

In airline industry, the major cost is airplane alone and operating cost at hub. The next barrier is the economies of scale by incumbent concentrated carriers at various hubs. Providing frequent-flyer programs by the major carriers between major points is also major barrier for entry, has the space at airport is constraint.

ANS: d. aircraft availability

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