Answered: Which of these costs of an airline must…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Which of these costs of an airline must update most frequently. 1. Flight crew. 2. Fuel cost. 3. Maintenance spending. 4. Advertising spending. 5. Aircraft ownership costs.

Expert Solution

Step 1

INTRODUCTION:

The airline business is a highly competitive industry with numerous airlines competing for market share. To succeed in this industry, airlines need to offer a product that is appealing to customers and provides a competitive advantage over other airlines. There are numerous factors to consider when developing an airline business plan, including the type of aircraft to be used, the routing of flights, the target market, and the pricing strategy.

Airlines must also take into account the expenses related to running an airline, such as fuel, maintenance, and airport fees. Any airline hoping to succeed in the fiercely competitive airline market must have a solid business plan.