AirlineOnline Problem Solving Questions
Please read the following scenario and answer the questions below. Mark only one option for each question.
Melbourne Airlines has experienced a drop of business over the last quarter resulting is a loss of $500,000. The CEO is very concerned and has asked for your advice to assist in improving the airline’s profit in a number of areas of the airline's operations.
6. In order to make sure the airline is profitable, I would foremost recommend to:
- Increase airfares
- Decrease staff salaries
- Increase load factors
- Ensure RASK is higher than CASK
- Increase travel agent commissions
7. Which one of the following aspects is most important in airline revenue management…
- Monitoring fares and ticket sales
- Monitoring load factors
- Discounting fares and offering high demand routes
- Forecasting and monitoring ticket sales
- Monitoring expenses and revenue
8. The Marketing Manager’s key responsibility is to…
- Manage schedules and fares
- Promote and advertise the airline
- Discount tickets to sell more seats
- Monitor load factors
- Implement sustainability initiatives
9. Why is it important to monitor an airline's load factor?
- Airline seats are perishable
- The airline needs to breakeven
- Airlines can increase their inventory
- Customers book in advance
- Fares constantly change
10. If the CEO decides to reduce staff wages, what is the most likely possible outcome…
- Profits will increase
- Staff will strike
- Load factors will increase
- Passenger demand will increase
- RASK will increase
11. Which of the following would clearly be evident on Melbourne Airline's balance sheet if they leased new aircraft and added more routes last quarter?
- Their expenses increased
- Their short term debt increased
- Their total assets increased
- Their revenue increased
- Their staffing increased
12. Melbourne Airlines had a cash balance of $320 million at the start of the quarter. If the airline generates $17 million from ticket sales and $4 million from cargo, and incurs expenses of $16 million and $3 million in taxes, what will the cash balance be at the end of the quarter?
- $341 million
- $322 million
- $325 million
- $2 million
- $21 million
- These problem solving questions are intended to test cognition prior to the simulation and are specific to each simulation.