Air France CEO on Low-Cost Carrier Startup Plans

The video discusses strategic challenges faced by the airline industry, including new competitors and overcapacity issues leading to decreased revenue. It highlights the impact of terrorism on travel forecasts, particularly after events in Paris and Nice, which have reduced travel from key markets. The discussion also covers the uncertainty of oil prices and their potential positive impact on economic growth and air traffic.

What is one of the main challenges the airline industry is facing according to the first section?

• Lack of new competitors

• Overcapacity and declining unit revenue

• Decreasing oil prices

• Increasing demand for air travel

How has terrorism affected the airline industry as discussed in the second section?

• Higher revenue from international flights

• Increased demand for flights to Europe

• No impact on traveler numbers

• A sharp decrease in travelers from overseas markets

Which overseas markets have shown a decline in travelers to Europe due to terrorism?

• Australia and New Zealand

• Japan, China, and the United States

• South America

• Africa

What strategy is the airline industry using to manage fuel price fluctuations?

• Investing in new aircraft

• Increasing ticket prices

• Hedging against fuel price increases

• Reducing flight frequencies

What potential positive impact could rising oil prices have on the airline industry?

• Reduction in air traffic

• Improved global economic growth

• Decrease in business traffic

• Higher operational costs