During the 1990s, Several Airlines Were on the Brink of Bankruptcy

question 32

Essay

During the 1990s, several airlines were on the brink of bankruptcy. These same airlines were giving away millions of dollars in free airline travel through their frequent-flyer programs. Do you think it would have been a good idea for these airlines to eliminate their frequent-flyer programs in order to earn higher profits? Explain.

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Definitions:

Accountable

Being responsible or answerable for one's actions or decisions, often within a professional or organizational context.

Transitional Matrix

A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

Job Categories

Classifications of employment based on similar duties, responsibilities, and the level of skill or education required.

Outsourcing

Contracting with another organization (vendor, third-party provider, or consultant) to provide services.