Due to high jet fuel costs, airline carriers are looking for new ways

OFFICIAL EXPLANATION

Only two pieces of information are given about Airline A's standing room "seats" proposal. First, that it is geared toward increasing revenue in order to counteract declining profits. And second, that, since the proposal relates to passenger safety, it must be approved by the Federal Aviation Administration. Airline A must have concluded that the cost of implementation of its proposal is less than the revenue that the new seats will generate.

(A) CORRECT. Since Airline A knows that its proposal would have to comply with safety standards, it must have concluded that the cost of compliance is worth it. In other words, the only way for Airline A to achieve its goal of increasing profit is to implement ideas that will generate more revenue than they cost. Airline A must therefore have concluded that the standing room only "seats" meet this criteria.

(B) The statements in the passage imply nothing about whether Airline A believes that the Federal Aviation Administration will approve the proposal. Although Airline A must believe that the proposal has a chance of being approved (otherwise it's unlikely to have proposed it), the airline might have proposed its specific plan knowing that it might not be approved or, that it might have to be changed in certain ways.

(C) Airline A's goal is simply to "counteract declining profits" caused by the high cost of jet fuel. This does not mean, however, that the proposal must fully mitigate the cost of jet fuel. As long as the proposal increases revenue without a corollary increase in cost, it will in some way (even if it's relatively small) counteract declining profits.

(D) The passage does not mention any other ways that Airline A has considered increasing revenue. Therefore, it is impossible to conclude anything about Airline A's perception of its standing room "seats" proposal to any other ideas.

(E) The statements in the passage do not address Airline A's view regarding the safety of the standing room only "seats". It is very possible that Airline A views its proposal as safe and sees no conflict between passenger safety and increasing revenue, much less that it has made any determination about the relative importance of these two issues.