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WorksheetsFinancial strategy of Transport
Total questions: 25
Worksheet time: 25mins
Over the long term, investing in airlines can be _________
profitable
risky
dangerous
unprofitable
What had a larger impact to airlines profitability than the 9/11 tragedy?
The pandemic
The recession of 2008
US 2019 Elections
Terrorism
Below are some of the potential external risks airlines face that could impact its profitability EXCEPT:
higher jet fuel costs
economic recession
sudden increase in labor costs
mergers and consolidations
Recent demand shocks that airlines faced were as follows EXCEPT:
9/11 tragedy
SARS outbreak
Economic recession
Thanksgiving 2018
Soon after 9/11, the US Congress agreed to bailout the airlines to the tune of USD_______
10 billion
30 billion
50 billion
100 billion
Pandemic restrictions result in a(n) _______ in travel worldwide.
decrease
increase
upsurge
uptrend
What policy was created to prevent airlines from laying off its workers?
Payroll incentive program
Payroll support program
Payroll system program
Private incentive program
Pilots will have to undergo ________ after weeks of inactivity/vacation.
medical
retraining
rehiring
rehabilitation
Airlines should do this more:
spend cash on stock buybacks and paying dividends
allocate more funds for rainy days and raising wages
invest in new aircraft
pay higher bonuses to top executives
There are two categories of airlines according to industry analyzers:
full service carriers and low-cost carriers
independent and dependent carriers
public and private carriers
low cost and high cost carriers
Full service carriers are more ______ oriented.
business
industry
social
welfare
Central airports that many commercial routes fly through in order to make connections easier is called a (a)
Legacy carriers often have more ________ and ________within their business.
infrastructure/types of aircraft
employees/assets
liabilities/infrastructure
income/assets
Low cost carriers run a more ________ operations.
efficient
streamlined
effective
profitable
Full service airlines tend to be more resilient during economic crisis compared to low cost airlines.
True
False
This airline managed to deliver up to 47 years of profitability.
Southwest
United
Delta
Allegiant
There is always a demand for ______ airfares.
expensive
business
cheap
higher
Until the late 1970s, the government regulated _________. This means airlines had to compete based on what ______ they offered to passengers.
tickets / products
airfares / services
ticketing / class
income / products
When the US government deregulated the airline industry, all carriers are now free to do this: ______ without getting government approval.
set their own fares
set how many classes of seats in the flight
set different pilots for certain routes
set different services for government and private sector
Why does leg room in aircraft tend to shrink every year?
airlines tend to pack in more passengers every year
airlines want to save costs by adding more seats
airlines want to cater for smaller passengers
airlines prefer to cut costs by reducing leg space
The 1978 Deregulation Act forces airlines to shift from ______ type businesses to _______ type of businesses.
free market / utility
small / large
frequent / irregular
utility / free market
Deregulation resulted in many airlines going (a) of business or restructuring their operations.
There have been more than (a) bankruptcy filings recorded ever since deregulation of the airline industry.
A bankrupt airline can still operate normally.
True
False
Why does investing in airlines a risky move? (More than one answer)
The possibility of losing your investment
Airlines rarely make profit year on year
The possibility of investment gains in airline stocks
Airlines constantly receive bailouts from the government
