3. Why might you expect there to be economies of scale in airline transportation? How are the development of hub-and-spoke networks related to economies of scale and scope?

4. In recent years, service stations in North America have in fact become gas stations. Very few still provide automotive repair services. Provide an explanation for why their service bays have been replaced by variety stores.

Answer rating: 100% (QA)

Airlines have put in place several strategies to increase the number of flights Among them ticketselling process optimization inflight meal reductionsuppression alliances and consolidations Economy of Scale EoSconcept assumes that increasing returns emerge at the level of the firm However some authors claim that EoS does contribute to cost reductions ... View the full answer