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icanandwill
27 Jun 2017, 17:45
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Argument: "Of all the cities in their region, Beumont and Fletcher are showing the fastest growth in the number of mew businesses. Therefore, Aria should establish a commuter route between them as a means of countering recent losses on its main passgenger routes. And to make the commuter route more profitable from the outset, Avia should offer 1/3 discount on tickets purchased within two days of the flight. Unlike tickets bought earlier, discounted tickets will be non refundable, and so gain from their sale will be greater."
Discuss how well reasoned etc..
My response:
The argument claims that by establishing commuter route between the cities Beaumont and Fletcher, which are the two fastest growing cities in their regions, Aria Airlines will be able to counter the losses on its main passenger route. Additionally, to make this commuter route more profitable, Aria is planning to offer non- refundable tickets, which will be booked within two days of the flight, at one third the price of regular air fare to the customers. This argument relies on assumptions for which there is no clear evidence and has several flaws.
First, the argument assumes that because the two cities are growing at a rapid rate, there will be an increase in the number of passengers travelling between them through flights. However, there is no evidence cited to support this assumption. Owing to the fast growth rate, it is possible that the number of passengers to and from these cities to other metropolitan cities may increase for each of them. However, there is no data to support that the number of passengers travelling between these cities will increase.
Second, even if the first assumption is granted, there is no clarity on the amount of air fare between these two cities. If the distance between the cities is not great, the air-fare will be nominal and the revenue generated may not be sufficient to overcome the losses on the main passenger routes of Aria. Additionally, no information is given on the amount of investment it will take to establish such a route. Without this information, it is quite difficult to weigh in the feasibility of this business plan.
Third, the argument makes an assumption that by offering non refundable discounted tickets, Aria will increase the profit on the new route which is proposed to be established between the two cities. However, this strategy may have the opposite effect. Most of the passengers may choose to book the flight only two days in advance in a hope to get the discount. This will result in decrease in the overall profit for Aria since most of the tickets sold will be discounted. In fact, there may be instances when the passenger may not get the ticket at the last moment since the discounted tickets will be sold quickly leading to customer dissatisfaction and eventually loss of business.
In conclusion, the without further evidence to support the assumptions, the argument stands unsubstantiated and open to debate. As stated above, the author must provide more information to make the argument compelling.
Discuss how well reasoned etc..
My response:
The argument claims that by establishing commuter route between the cities Beaumont and Fletcher, which are the two fastest growing cities in their regions, Aria Airlines will be able to counter the losses on its main passenger route. Additionally, to make this commuter route more profitable, Aria is planning to offer non- refundable tickets, which will be booked within two days of the flight, at one third the price of regular air fare to the customers. This argument relies on assumptions for which there is no clear evidence and has several flaws.
First, the argument assumes that because the two cities are growing at a rapid rate, there will be an increase in the number of passengers travelling between them through flights. However, there is no evidence cited to support this assumption. Owing to the fast growth rate, it is possible that the number of passengers to and from these cities to other metropolitan cities may increase for each of them. However, there is no data to support that the number of passengers travelling between these cities will increase.
Second, even if the first assumption is granted, there is no clarity on the amount of air fare between these two cities. If the distance between the cities is not great, the air-fare will be nominal and the revenue generated may not be sufficient to overcome the losses on the main passenger routes of Aria. Additionally, no information is given on the amount of investment it will take to establish such a route. Without this information, it is quite difficult to weigh in the feasibility of this business plan.
Third, the argument makes an assumption that by offering non refundable discounted tickets, Aria will increase the profit on the new route which is proposed to be established between the two cities. However, this strategy may have the opposite effect. Most of the passengers may choose to book the flight only two days in advance in a hope to get the discount. This will result in decrease in the overall profit for Aria since most of the tickets sold will be discounted. In fact, there may be instances when the passenger may not get the ticket at the last moment since the discounted tickets will be sold quickly leading to customer dissatisfaction and eventually loss of business.
In conclusion, the without further evidence to support the assumptions, the argument stands unsubstantiated and open to debate. As stated above, the author must provide more information to make the argument compelling.
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