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# Abolition of government regulation of airfares has increased

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Manager
Joined: 11 Nov 2004
Posts: 69

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Abolition of government regulation of airfares has increased [#permalink]

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05 Jan 2005, 21:47
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Difficulty:

(N/A)

Question Stats:

67% (00:38) correct 33% (01:44) wrong based on 20 sessions

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Abolition of government regulation of airfares has increased competition among airlines and thus will eventually lead to compromises in airline safety. Anxious to reduce fares in what has, as a result of deregulation, become a highly competitive market, airlines will be tempted to reduce costs by decreasing safety inspections and routine maintenance of aircraft.

Which of the following, if true, would cast the most serious doubt on the prediction that deregulation of airfares will ultimately compromise airline safety?

(A) Consumers select an airline as much on the basis of its safety record as on the basis of its fares.

(B) There are a number of mechanical problems that cannot be detected in the routine inspection of aircraft.

(C) The amount of commercial air traffic has increased significantly since the regulation of airfares was abolished.

(D) The number of airline bankruptcies has increased since the regulation of airfares was abolished.

(E) When airfares were regulated, airlines were more inclined to invest in the development of new aircraft.

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Manager
Joined: 21 Jun 2004
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05 Jan 2005, 23:50
A

if customers are concious abt safety - airline companies wont compromise on that.

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Manager
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06 Jan 2005, 09:38
ItÂ´s not A nor B...

One more try.IÂ´ll post the OA later

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Manager
Joined: 06 Sep 2004
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06 Jan 2005, 09:47
D.

If the airlines got bankrupted, it means they did not compromise on safety to reduce costs.

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Manager
Joined: 17 Dec 2004
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Location: Find me if you can

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06 Jan 2005, 09:57
Initially I picked A.

Now that I know that OA is not A, my next bet would be E.

Reason: Even when the Airlines were regulated Airlines didnot work towards the safety of the aircraft but diverted their attention in building new aircrafts.
So safety is same as it was before.
_________________

Wish you all good luck
Bhimsen Joshi

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Manager
Joined: 31 Aug 2004
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Location: Vancouver, BC, Canada

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06 Jan 2005, 11:57
My inisital choice is A too, but it is not the OA. B is out of the game too.
Then my next pick is C.

C - It says the air traffic increases without mentioning any safety problems, so it implys that the airline safety does not change before and after the deregulation.

D - Backrupty has nothing to do with airline safety.

E - Airline inclined to make new investment in aircraft development before the deregulation means the companys do not focus on the safty issue. Same attitude could persist after the deregulation.

This is a tough one...depends on everyone's reasoning I think.

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Manager
Joined: 11 Nov 2004
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06 Jan 2005, 13:54
Bhimsen wrote:
Initially I picked A.

Now that I know that OA is not A, my next bet would be E.

Reason: Even when the Airlines were regulated Airlines didnot work towards the safety of the aircraft but diverted their attention in building new aircrafts.
So safety is same as it was before.

Well guys OA is E!

Really it is a tough one but the explanation of Bhimsen makes it clear.I didnÂ´t think about E in that way.

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Manager
Joined: 31 Aug 2004
Posts: 161

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Location: Vancouver, BC, Canada

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06 Jan 2005, 14:06
Good job Bhimsen, your answer is right on. This is a very difficult one...

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Director
Joined: 07 Nov 2004
Posts: 683

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16 Jan 2005, 16:58
Janice, where did you get this question from?

I just saw this question in the ETS paper test 55 and it says OA is A...

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Manager
Joined: 11 Nov 2004
Posts: 69

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17 Jan 2005, 20:47
Sorry!!!

I got the question from ETS PBT-55...

OA is A

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17 Jan 2005, 20:47
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# Abolition of government regulation of airfares has increased

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