LGAV Final Exam, 2026 – Aviation Studies Study and Review
Material
an airline's labor force is usually represented by one union - correct answer ✔✔ false
what is the difference between industrywide and pattern bargaining? - correct answer ✔✔
industry wide bargains apply to all firms and their employees, pattern bargaining reflects
agreements between individual airlines and their unions. industry wide bargaining aplied only
to airline pilots.
the large wage concessions granted by unions in the 1980s were used by management to -
correct answer ✔✔ subsidize fare wars
if mediation under the RLA is unsuccessful, the RLA may release both parties to use self help.
what potential problems can be caused under self-help - correct answer ✔✔ carriers can
change employee wages, and unions can start a strike
despite billions of dollars in losses during the early 1990s, many airlines attempted to avoid
bankruptcy through - correct answer ✔✔ wage concessions in exchange for company
ownership stake, massive layoffs and indefinite furloughs, and giving employees profit-sharing
or employee ownership options
if mediation fails, parties can seek voluntary arbitration. an arbitrated decision is legally binding
to both parties - correct answer ✔✔ true
when a dispute between management and a union occurs, neither party makes great effort to
settle issues during collective bargaining. - correct answer ✔✔ true
direct selling is the preferred method of sale by airlines because - correct answer ✔✔ costs are
reduced and savings passed to the passenger
, in the airline industry, marginal cost pricing is derived from - correct answer ✔✔ excess capacity
and perishable inventory
some end-to-end mergers may have facilitated completion by building a broader, more
competitive network - correct answer ✔✔ true
mergers offer airlines the advantages of - correct answer ✔✔ increased market share and
greater economies of scale
after deregulation, common carriers engaged in numerous mergers decreasing the total number
of common carriers. commuter airlines, however, followed a dissimilar pattern by reducing the
code sharing agreements with majors - correct answer ✔✔ false
to achieve economies of scale, carriers utilize the principle of - correct answer ✔✔ labor
specialization
the airlines as a service industry are much quicker to recover than other industries because
spending on air travel is discretionary - correct answer ✔✔ false
after wwi the international chamber of commerce was designed to - correct answer ✔✔
establish a uniform code of international private commercial aviation
it is difficult for us carriers to establish hubs in foreign countries and vice versa because - correct
answer ✔✔ many nations prohibit cabotage, fifth freedom rights limit a carriers flight frequency
and competitive advantage against local traffic
airlines attempted to fix overcapacity problems of the 1970s by - correct answer ✔✔ creating
joint capacity restraint agreements
Material
an airline's labor force is usually represented by one union - correct answer ✔✔ false
what is the difference between industrywide and pattern bargaining? - correct answer ✔✔
industry wide bargains apply to all firms and their employees, pattern bargaining reflects
agreements between individual airlines and their unions. industry wide bargaining aplied only
to airline pilots.
the large wage concessions granted by unions in the 1980s were used by management to -
correct answer ✔✔ subsidize fare wars
if mediation under the RLA is unsuccessful, the RLA may release both parties to use self help.
what potential problems can be caused under self-help - correct answer ✔✔ carriers can
change employee wages, and unions can start a strike
despite billions of dollars in losses during the early 1990s, many airlines attempted to avoid
bankruptcy through - correct answer ✔✔ wage concessions in exchange for company
ownership stake, massive layoffs and indefinite furloughs, and giving employees profit-sharing
or employee ownership options
if mediation fails, parties can seek voluntary arbitration. an arbitrated decision is legally binding
to both parties - correct answer ✔✔ true
when a dispute between management and a union occurs, neither party makes great effort to
settle issues during collective bargaining. - correct answer ✔✔ true
direct selling is the preferred method of sale by airlines because - correct answer ✔✔ costs are
reduced and savings passed to the passenger
, in the airline industry, marginal cost pricing is derived from - correct answer ✔✔ excess capacity
and perishable inventory
some end-to-end mergers may have facilitated completion by building a broader, more
competitive network - correct answer ✔✔ true
mergers offer airlines the advantages of - correct answer ✔✔ increased market share and
greater economies of scale
after deregulation, common carriers engaged in numerous mergers decreasing the total number
of common carriers. commuter airlines, however, followed a dissimilar pattern by reducing the
code sharing agreements with majors - correct answer ✔✔ false
to achieve economies of scale, carriers utilize the principle of - correct answer ✔✔ labor
specialization
the airlines as a service industry are much quicker to recover than other industries because
spending on air travel is discretionary - correct answer ✔✔ false
after wwi the international chamber of commerce was designed to - correct answer ✔✔
establish a uniform code of international private commercial aviation
it is difficult for us carriers to establish hubs in foreign countries and vice versa because - correct
answer ✔✔ many nations prohibit cabotage, fifth freedom rights limit a carriers flight frequency
and competitive advantage against local traffic
airlines attempted to fix overcapacity problems of the 1970s by - correct answer ✔✔ creating
joint capacity restraint agreements
