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Fortune’s Andy Serwer says a combination of higher oil prices and less demand are hurting the air carriers.

Source: CNNMoney – video report

Date: 6/08/2009

Keys: Marketing, economics,

Link: http://money.cnn.com

Questions for discussion:

  • Summarize all of the reasons for airline distress starting with the rise in fuel costs. What response could management employ that would help mitigate some of these problems?
  • How else would you suggest the airline industry respond in order to deal with the drop in demand for service?
  • What other businesses are also likely to feel the negative effects of rising fuel costs?
  • Can rising prices be good for anyone? Explain your thinking.

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