At Any Given Airport, the Airlines Hold Long-Term Leases for Passenger

question 248

Multiple Choice

At any given airport, the airlines hold long-term leases for passenger loading gates.New gates cannot be added without approval of the airlines.Frequent flier programs are also common in the industry.It is, therefore, more difficult for a new airline to enter a given airport (market) .Such factors: (i) are called barriers to entry.
(ii) tend to decrease the contestability of the air travel market.

• A)i and ii
• B)i not ii
• C)ii not i
• D)neither i nor ii

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Definitions:

Short-Term Debt

Financial obligations that are due for repayment within a short period, usually less than one year.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, inventories, and other short-term liabilities.

Money Market Securities

Short-term financial instruments, typically with high liquidity and short maturities, traded in the money market.

Registration Statement

A set of documents, including a prospectus, filed with a regulatory body to register a company's securities for sale to the public.