Which event marked the beginning of the modern airline industry?
a. The Wrights' first flight at Kitty Hawk in 1903
b. The U.S. Post Office's examination in 1908 of the feasibility of air mail service
c. Lindbergh's flight to Paris in 1927
d. The use of airplanes for mail transport

Mountain Airlines has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake City. This airline would be classified in which air carrier category?
a. major carrier
b. national carrier
c. local hub carrier
d. regional carrier

Air carrier revenues are concentrated in which group of carriers?
a. all-cargo, exempt, commuters and private
b. commuters, charters, all-cargo
c. major, nationals, regionals
d. private, regulated, exempt

Most airline revenues arise from:
a. freight shipments.
b. baggage shipments.
c. passenger travel.
d. aircraft leasing and support services to private aviation

The Transportwriter.com corporation owns four corporate aircraft of various sizes which they use to transport executives to various company locations, and as well as documents and small freight between the company headquarters and its production facilities. What type of carrier is Transportwriter?
a. private
b. commuter
c. exempt
d. charter

What is the percentage of revenue generated by the top 10 air carriers?
a. 75 percent
b. 82 percent
c. 91 percent
d. 96 percent

Air carries face _____ competition from surface modes for either freight or passengers.
a. very strong
b. a limited amount
c. very little
d. almost no

Which is the best reason for the increase in airline intramodal competition since deregulation in 1978?
a. substitution of smaller aircraft for larger aircraft
b. U.S. carriers forming alliances with foreign airlines such as United with Air Canada
c. increased use of discount fares in lieu of full fares
d. new air carriers entering given markets

What is the primary method of service competition between air carriers?
a. frequency and timing
b. in flight cabin service and added amenities.
c. serving new cities to force more competition
d. advertising

Which of the following commodities would be most likely to be shipped on an air carrier?
a. commodities in high volume
b. low-value finished goods
c. raw materials and partially-finished goods
d. high-value and time-sensitive goods

Which is the best reason for the relatively low proportion of fixed costs in the cost structure of the air carriers?
a. private investment in the airways and airports
b. the small number of aircraft that are actually owned by the airlines versus those that are leased for varying periods of time
c. public investment in the airway and airport
d. the proportion of energy and labor costs in the cost structure

Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs?
a. flying operations
b. maintenance
c. administration
d. labor

Which government agency specifies acceptable flight operations and the hours of service for pilots?
a. FAA
b. STB
c. DOT
d. FMCSA

Why do business people pay more for airline travel?
a. The expense of the travel is paid for by their company and the business traveler demands more services than the leisure traveler.
b. They usually arrive and depart during low-demand periods.
c. They have to keep more rigid schedules.
d. Their travel expense is tax deductible and they can afford higher fares to offset the lower fares charges to leisure travelers.

What major factor is the main determinant in air cargo pricing?
a. discounts from full price levels as is done with motor carriers
b. weight
c. empty space on the aircraft
d. direction of travel of the shipment

How much did the U.S. airlines spend on fuel in 2007?
a. $60B
b. $42B
c. $50M
d. $60M

How many people were employed in the air carrier industry in 2007?
a. 100,000
b. 500,997
c. 560,997
d. over 1,000,000

Based upon the number of passengers who was the Top Airline in 2007?
a. American
b. Delta
c. Southwest
d. jetBlue

Which air carrier had the highest operating revenue in 2007?
a. American
b. FedEx
c. UPS Airline
d. Alaska

Which aircraft has the highest cargo payload in terms of tons?
a. B747-300
b. B747-F
c. MD-11
d. L1011

Which aircraft has the highest operating cost in terms of $ per hour?
a. B747-200
b. DC-8
c. B727-100
d. L1011

If aviation fuel is at $2.60 a gallon, what is the price of fuel consumed per hour on a B747?
a. $2,000
b. $6,822
c. $7,163
d. $8,869

Which airline pays a 10 year captains the most?
a. Delta
b. United
c. Southwest
d. Amerijet