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

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Due to high jet fuel costs, airline carriers are looking for [#permalink]

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31 Jul 2008, 21:01
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Difficulty:

75% (hard)

Question Stats:

52% (00:58) correct 48% (01:02) wrong based on 840 sessions

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Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?
The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
The Federal Aviation Administration will approve Airline A's specific proposal.
The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
There are no safer ways in which Airline A can increase revenues.
Passenger safety is less important than increasing revenue.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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31 Jul 2008, 21:07
A

this statement accounts for revenue and cost and profit
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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31 Jul 2008, 21:15
Initially I thought that C is good, but after reading again the answer C, I realized that it is incorrect.

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31 Jul 2008, 22:19
gmatnub wrote:
A

this statement accounts for revenue and cost and profit

So does C. I dont agree with the reasoning
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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31 Jul 2008, 22:33
goalsnr wrote:
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?
The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
The Federal Aviation Administration will approve Airline A's specific proposal.
The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
There are no safer ways in which Airline A can increase revenues.
Passenger safety is less important than increasing revenue.

Will go with D) ..... There are no safer ways in which Airline A can increase revenues.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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01 Aug 2008, 07:40
Trimmed it down to A and D.

Best choice = A
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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01 Aug 2008, 08:18
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?
The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
This is not conclusion. This can be supporting statement for conclusion
The Federal Aviation Administration will approve Airline A's specific proposal.
Speculation/assumption
The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
This is not conclusion. This can be supporting statement for conclusion
There are no safer ways in which Airline A can increase revenues.
X,Y Z are factors for A. A to get approved we need approval of B. IF B rejects, then its a failure. So there is a possibility of rejection, then why A is considered. Because, the above statement holds.
Passenger safety is less important than increasing revenue.
Its against the statements above

IMO D
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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27 Aug 2012, 09:15
The conclusion can be supported by facts stated in the argument, but not any assumptions. With that in mind, it's easy to eliminate:
B - no statement is made about whether the Aviation Authority will approve the proposal
C - the concept of fuel cost is new, therefore can eliminate
E - no statement is made about the relative importance of safety or revenue

Further elimination can be made logically:
D - Why would this matter? It is an additional logical step to say that the airline wants to balance a revenue against the probability that this proposal will pass through a safety test. That pushes this answer outside the scope of the question. Alternatively, there may be safer ways but the revenue increase would be less. Therefore these alternatives would be less attractive.

Last man standing = A

Hope that helps..
B.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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12 Jun 2014, 04:37
Hi ,

My query is in option A, how could be judge the cost of ensuring these seats meet the safety standards. This is not discuss anywhere in the passage. and in the inference question. We cannot assume outside information.

Correct me where I'm wrong .

Thanks
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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31 Jul 2014, 23:49
goalsnr wrote:
Due to high jet fuel costs, airline carriers are looking for new ways to increase revenues and thereby counteract declining profits. Airline A has proposed increasing the number of passengers that can fit on its airplanes by creating several standing room only "seats" in which passengers would be propped against a padded backboard and held in place with a harness. This proposal, since it relates to passenger safety, cannot be implemented without prior approval by the Federal Aviation Administration.

The above statements, if true, indicate that Airline A has made which of the following conclusions?
The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
The Federal Aviation Administration will approve Airline A's specific proposal.
The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
There are no safer ways in which Airline A can increase revenues.
Passenger safety is less important than increasing revenue.

Go for A, thats the only choice that can be reasonably inferred from the passage. Airline A can increase revenue by adding standing room only seats only if this revenue exceed the cost of additional safety
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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Updated on: 18 Oct 2015, 02:32
2
1
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.
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Originally posted by shasadou on 24 Aug 2015, 11:44.
Last edited by shasadou on 18 Oct 2015, 02:32, edited 1 time in total.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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23 Nov 2015, 07:46
1
1
ANS = A.

Took 3:22. D was close. If the statements are true, then airline A might have decided to go for the new seats room, only after coming to the conclusion that it will increase their profits (after safety costs). Eliminated D coz the main argument is about increasing the profits, not finding ways to increase the profits.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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19 Feb 2017, 05:43
The OA has been added, and explanations provided in the thread appear sufficient. If there are any specific questions, please click again on the "Request Expert Reply" button and post your queries – closing this request.
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Re: Due to high jet fuel costs, airline carriers are looking for [#permalink]

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15 Apr 2017, 13:37
1
As this is a CR Question let’s try to read the question stem before we read the argument. This question talks about – IF TRUE ------ WHICH OF THE FOLLOWING CONCLUSIONS IS MADE, which means this is an INFERENCE QUESTION.

Argument Logical Structure:

High Jet fuel cost, leading decreased profits – Airlines A plans to increase the revenue through some new ways.
Airline A proposes increasing number of passengers that can fit on its airplanes by creating a standing room only seats by making certain arrangements.
Considering this proposal is related to passenger safety it cannot be implemented without approval from Federation Aviation Administration.

(A) The addition of standing room only "seats" will generate more revenue than the cost of ensuring that these seats meet safety standards.
- This looks like correct inference. Considering airlines is assuming that cost involved in accommodating the new seating arrangement either one time (making changes to the airplane) or recurring (customer complains, maintenance, etc.) are less than the revenue generated by these seats. Lets read all other options before we mark this as our final answer choice.

(B) The Federal Aviation Administration will approve Airline A's specific proposal
- It cannot be inference, rather can be one of assumption

(C) The revenue generated by the addition of standing room only "seats" is greater than the current cost of jet fuel.
- Airlines is looking to increase the revenue and not necessarily looking to mask only the cost of jet fuel. As long as revenue increases Airlines should be fine with it but not fuel cost – C is incorrect

(D) There are no safer ways in which Airline A can increase revenues.
- Other ways are not discussed, so this is out of scope

(E) Passenger safety is less important than increasing revenue.
- This cannot be inferred based on given information as Airlines is only talking about increasing revenue through new arrangement. E is incorrect too.

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