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Sample Aviation Research Questions

Homework Question on Aviation Research Questions

  1. ATE: In your own words, define the following terms and use examples to highlight the definition [10-points each]
    1. Dynamic Pricing Policy

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  1. Cost-Based Pricing

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  1. Bundling AND unbundling ancillary services

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  1. Peak-Load Pricing

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  1. ATE & AF: Define the difference between “Price Discrimination” and “Uniform Pricing.” AND briefly describe the conditions needed for successful Price Discrimination.  Which of these methods is used by the company you have chosen to profile?   [15-points]Click here to enter text.
      1. ATE & AF: Briefly describe the three (3) types of revenue management controls? [15-points]Click here to enter text.
      2. ATE: Briefly describe the difference between “spoilage” and “spillage”? [10-points]Click here to enter text.
      3. AF: What are the differences between “futures contracts” and “forward contracts”? [10-points]Click here to enter text.
      4. AF: What is the difference between “hedges” and “speculators”? [10-points]Click here to enter text.
  1. AF: How can airlines or other aviation organizations enter “fuel hedging” markets? [10-points]Click here to enter text.
  2. AF: Briefly describe the following: [15-points each]
    1. What are the advantages and disadvantages of a fuel hedging policy for a company?

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  1. Under what circumstances should a company NOT engage in fuel hedging?

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  1. Can a company use a fuel hedging strategy all the time? Or under what circumstances will the company not be able to use a fuel hedging strategy?

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  1. Given the opportunity, why shouldn’t a company hedge 100% of its fuel?

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Homework Answer on Aviation Research Questions

  1. ATE: In your own words, define the following terms and use examples to highlight the definition [10-points each]
    1. Dynamic Pricing Policy

This is whereby flexible pricing is set based on the market demands.

  1. Cost-Based Pricing

This refers to a method where percentage of desired profit is added to the total cost to come up with the final price.
Homework Help

  1. Bundling AND unbundling ancillary services

Bundling is when certain products and services are combined and offered at reduced prices while, unbundling is a strategy for maximizing revenue per unit for the service provider.

By purchasing call options, buying the oil purchase rights for the future at a price that is agreed on today.

By implementing a collar hedge, this involves a call option and a put option which can allow a sell of oil at a future date to be carried out today.

By purchasing swap contracts, a purchase is locked at a future price at a specific date.