Question 1

How do airlines create value in networks?

Accepted Answer

All of the answers are correct.

Answer

Through economies of scope

Answer

Through economies of scale

Answer

Through economies of density

Question 2

What is an example of economies of scale on the supply side?

Accepted Answer

Through a bigger operation, products can be produced cheaper

Answer

A bigger network allows for more connections
Services and activities are concentrated and thus, a higher level of productivity and quality exists

Answer

Through concentration of frequencies of flights, more efficient and effective services can be offered to the customers

Answer

A bigger network allows for more connections

Question 3

Which of the following statements is correct?

Accepted Answer

Continuously decreasing marginal costs on the supply side combined with increasing marginal returns on the demand side lead to natural monopolies

Answer

Continuously decreasing marginal costs on the demand side combined with increasing marginal returns on the supply side lead to natural monopolies

Answer

Continuously increasing marginal costs on the supply side combined with decreasing marginal returns on the demand side lead to natural monopolies

Answer

Continuously increasing marginal costs on the demand side combined with decreasing marginal returns on the supply side lead to natural monopolies

Question 4

Which of the following is not an example for hub diseconomies?

Accepted Answer

Dominance of the hub

Answer

Partly capacity overload

Answer

Hub-Load-Peaks

Answer

High delay sensitivity

Question 5

Bigger hubs are…

Accepted Answer

…more sensitive to delays and therefore service quality might decrease

Answer

…less sensitive to delays and therefore service quality might decrease

Answer

…more sensitive to delays and therefore service quality might increase

Answer

…less sensitive to delays and therefore service quality might increase

Question 6

Which statement is false: A hub…

Accepted Answer

…constantly operates at maximum capacity

Answer

…requires high, specific investments within the whole network

Answer

…is dependent on changing environmental conditions and sunk cost might occur if the structure of the hub system has to be modified.

Answer

…produces so called hub-load-peaks

Question 7

What is not an instrument of capacity management?

Accepted Answer

Runway Leasing

Answer

Fleet assignment

Answer

Yield management

Answer

Distribution and sales

Question 8

Which is not a success factor for wide-body airplanes (e.g. A380) for network carriers?

Accepted Answer

Efficient engines and lower weight thanks to carbon fibre construction will enable a larger range of inter-continental point-to-point connections

Answer

mega “hubbing”

Answer

Fuel efficiency per passenger

Answer

economies of scale and scope

Question 9

Which is not a success factor for new small wide-body airplanes (B787) for network airlines

Accepted Answer

Mega hubbing

Answer

Efficient engines and lower weight thanks to carbon fibre construction will enable a larger range of intercontinental point-to-point connections.

Answer

all of the answers

Answer

New technologies concerning air pressure and air humidity lead to increased comfort

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