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1)Describe the emergence of new types of airline business models

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1)Describe the emergence of new types of airline business models. Discuss whether or not the long-haul low-cost model works. Define a network specialist. Define a product specialist. Define a price specialist.

2)What is an open-sky agreement? Cabotage? What was the purpose of the Commission to Ensure a Strong, Competitive Airline Industry? In 1995, the commission outlined a “Plan of Action” regarding future open-aviation agreements. Explain.

3)What major event prompted the new U.S. policy on international aviation in the late 1970s? Describe some of the goals enumerated under the U.S. policy statement. Discuss some of the objectives of the International Air Transportation Competition Act of 1979. How was traffic affected during the early 1980s? Why were continuing efforts to liberalize aviation agreements hampered?

4)Discuss some of the major changes that took place in international aviation during the three decades following the Bermuda Agreement. How would you describe the CAB’s position toward IATA during the 1970s? What was the problem that the British had regarding the Bermuda Agreement in the late 1970s?

5)How many rights of freedom are there? What was the Two Freedoms Agreement? The Five Freedoms Agreement? What is meant by bilateral agreement? Discuss some of the provisions under the Chicago standard form.

6)Discuss some of the reasons for the Chicago Conference of 1944. What was the purpose of this convention? Describe some of the important articles under this convention. What were some of the areas in which the contracting states agreed to develop “the highest degree of uniformity”?

7)Why is there a need for international air law? What were the major agreements resulting from the Warsaw Convention? How did the Hague Protocol and the Guatemala City Protocol affect the provisions of the Warsaw Convention?

8)Discuss several of the principles governing the drafting of the Paris Convention. What provisions were designed to ensure the safety of air navigation? Discuss several of the principles that were adopted by the convention. What was the primary purpose of the Havana Convention?

9)Why is having too much cash on hand almost as bad as not having enough? Why is the financial community concerned about the cash position of the carriers? How much cash should an airline have on hand? What is meant by cash flow? Give several applications of short-term and long-term cash forecasts.

10)Classify the major carriers in terms of their ability to finance their capital needs in the 2000s. What are some of the alternatives for capital-constrained carriers? Summarize several of the major points regarding airline funding sources.

11)In light of the demand for capital funds by the airlines during the 1990s and early 2000s, how does the financial community view the industry as a whole? Why was the financial community generally against deregulation? Define long-term debt/equity ratio, current ratio, and return on investment (ROI).

12)What were the major sources and uses of funds according to the industry’s balance sheets during the periods 1960–66, 1966–71, 1971–76, 1976–81, 1981–86, 1986–91, 1991–97 and 1997–2004? What is a convertible debenture?

13)What is meant by venture capital? Why has this source of funding become particularly important to the newer carriers? Who provided the backing for the earlier venture capital groups?

14)Why did the life insurance companies in particular become a major lending source in the early 1970s? What are investment banks? What is the difference between common stocks and preferred stocks? How do they differ from bonds?

15)Discuss the relationship between profitability and financing capital needs during the 1990s and early 2000s. What is meant by depreciation? By deferred taxes? How does one distinguish between debt financing and equity financing?