CAPA's Harbison Sees Solid Profit for Chinese Carriers

What is one of the main risks associated with low fuel prices for airlines?

• Increased passenger demand

• Encouragement of additional market capacity

• Higher ticket prices

• Improved customer satisfaction

How might the partnership between China Southern and American Airlines impact their business?

• Reduction in operational costs

• Immediate increase in profits

• Short-term financial losses

• Strategic long-term benefits

What is a potential downside of aggressive capacity additions by airlines?

• Increased market share

• Higher operational costs

• Improved brand reputation

• Decreased competition

What is a significant challenge for Chinese airlines in international markets?

• Lack of domestic demand

• Currency depreciation

• Excessive government regulation

• Limited flight routes

Why is strategic growth considered risky for airlines?

• It can negatively impact the bottom line

• It requires minimal investment

• It leads to immediate profit gains

• It reduces market competition