Management Midterm Questions with
Correct Answers
What are the top 3 costs of an airline? - ANSWERSFuel
Labor
Maintenance
What are the stages of the Airline industry's developement? - ANSWERSRegulation:
What, where, how to fly. Bid on routes
Liberalization: Airlines got more business freedom
Deregulation: Mergers happened. Independent
Re-regulation
Aerospace Industry: What are four factors affecting sales? - ANSWERS1. Economic
Growth
2. Inflation
3. Fleet Capacity
4. Airline Profitability
What are 2 big forces affecting the Government Market? - ANSWERSDefense
Contractors and NASA
What are 3 things the Air Commerce Act did? - ANSWERS1. Encouraged and
developed
commercial aviation
2. Entrusted many government
departments with aviation
3. Began what some would call early
airlines
What did the Civil Aeronautics Act of 1938 establish? - ANSWERSEstablished the Civil
Aeronautics Authority (CAA)
What are 3 things the CAA did? - ANSWERS1. Regulated passenger fares and rates
2. Granted and allocated routes
3. Established Airmail routes
When was the Kelly Act? What did it do? - ANSWERS1925. Provided contract mail
service.
Beginnings of the airlines that would become American, Northwest, and United