The article in question this week is titled \"Air Travelers, Get Ready to Pony U

Question

The article in question this week is titled "Air Travelers, Get Ready to Pony Up for Higher Fees". (Note: The answers to the following questions must be typed.) I. Big airlines are raising fees on luggage, ticket changes and other services to cover rising fuel costs without pushing up base fares. Airlines said charging for services like checke bags that were once included in fares? a. b. c. d. e. Is a pricing strategy to increase revenues Gives fliers more choice. Is a form of price discrimination. Fills planes with passengers. Opens up space in overhead bins and spreads passengers evenly throughout planes. II Many airlines imposed baggage fees a decade ago as a. b. c. d. e. the carriers expanded their yield management departments.. the carriers expanded their revenue management departments. discount carriers entered their market. discount carriers increased their market shares fuel prices climbed. III. Discuss at least one way in which the structure of this market affects the fees (i.e., conduct - pricing strategies) charged by airlines? Please consult the SCP paradigm (p.4 of textbook) and be clear on which specific element(s) of market structure affect(s) the ees. Discuss at least one way in which the performance of this market (including firm performance) affects the fees charged by airlines? Provide a complete citation of the WSJ article in question. IV. V.

Explanation / Answer

1) Airlines said that charging fors ervices like checked bags that were once included in fares

option (B) gives fliers more choice.

2) Many airlines imposed baggage fees a decade ago

option (E) fuel prices climbed.

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