Starting at the beginning of 2015, SunDog Airlines replaced its turboprop planes with regional jets for all routes longer than 300 miles.
SunDog sold between 10 and 30 percent more fares in 2015 than in any of the previous five years, yet it recorded substantially lower profits for each quarter of 2015 than for the same quarter in any of the previous five years.
SunDog’s chief executive concluded that the jets' higher operating costs were responsible for the decline in profits.
Which of the following, if true, most seriously weakens the chief executive’s conclusion?
(A) All of the other airlines that operate regional jets on the affected routes saw higher profits for 2015 than for any of the preceding five years.
Every airlines has different financials depending on several factors e.g. fares, routes, vacant seats etc. Therefore, even if other airlines that operate regional jets saw higher profits for 2015 than for any of the preceding five years, it is not necessary that the same may occur for SunDog Airlines.
Incorrect
(B) On passenger surveys conducted throughout 2015, passengers rated the regional jets significantly higher for both comfort and reliability than the turboprop planes that they replaced.
While passengers preferences and liking have importance for airlines, they don't necessarily translate into higher profits or better financials for the airlines.
Incorrect
(C) SunDog has been able to reduce the total number of flights it operates per day on its routes over 300 miles, because its regional jets carry twice as many passengers as did the turboprop planes that they replaced.
Even if regional jets carry twice as many passengers as did the turboprop planes that they replaced, and reduced the total number of flights it operates on its routes over 300 miles, it shows that efficiency was attempted but the efforts still resulted in lower profits but not necessarily because of increased operating costs.
Incorrect
(D) SunDog’s regional jets use less fuel per person aboard to fly a given distance than did the turboprop planes that they replaced.
Regional jets may use less fuel per person aboard to fly a given distance when full than did the turboprop planes that they replaced but still may result in higher fuel per person when running half-full or nearly empty resulting in higher operating costs and lower profits.
Incorrect
(E) Approximately 35 percent of the fares that SunDog sold in 2015 were promotional fares that it sold to passengers on its new regional jets at a price equal to the airline’s own per passenger cost.
Approx 35% of the fares were promotional fares to promote usage of new regional jets at break-even prices for which airlines got no profits. Therefore, without increment in operating costs profits could have been lowered. Therefore, cheif executive's conclusion is weakened by the statement.
Correct
IMO E