Several airlines have recently intensified their fierce competition for business by offering tickets that, if purchased 2 days in advance, cost as much 40 percent less than the heretofore lowest-priced "Super Saver" tickets, which require a 30-day advance purchase. The airlines' long-term gains from tickets bought under this new plan will be enormous because, unlike earlier discount tickets, these are not refundable.
The author assumes which of the following about discounted airline tickets in predicting long-term gains in airline revenue?
A. More discounted tickets, advance purchase tickets are purchased than are actually used.
B. Tickets requiring 30-day advance purchase are not profitable for airlines.
C. Few business travelers have taken advantage of 30-day advance purchase tickets.
D. Airlines will have to discontinue offering 30-day advance purchase tickets when they begin offering 2-day advance purchase tickets.
E. The majority of the 2-day advance purchase tickets offered by a given airline will be sold to passengers who have not previously flown on that airline.
Source: GMAC Paper test #42, Section 7, Question #3.
Answer A, there was confusion between C and B. The B option 30-day advance purchase are not profitable for airlines; They are not profitable thats way the airlines have introduced 2 day adv. purc. tickets. So its wrong. Option C - if few passengers purchased that 30 day adv. pur. tic. then it will weaken the argument conclusion. Option A is also controversial; but you can guess, since few tickets are used hence the airline needs to refund the amount of unused / not needed tickets to customers. The new tickets are non- refundable - will make profits as long term gain.