The argument states that out of all regions within which avia airlines
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03 Feb 2021, 04:35
The argument states that out of all regions within which avia airlines operate the two cities of Beaumont and Flethcher have shown the fastest growth in the number of new businesses. On the basis of this premise the argument claims that in order to counter losses on it’s main routes the airline should establish a route between these two cities and also very foolishly suggests that a discount of 1/3rd of the ticket price be given two days prior to the flight which will be non refundable to increase their revenues, the argument is based on a conclusion for which there is no clear evidence and hence has many flaws.
Firstly, the argument assumes on the basis of a mere statistic of new business growth in two cities there will be more travel between the cities than their main routes, there could be several interpretations of the following statistic however this is mainly suggested to counter the losses the company faces on it main routes, therefore it would be more advisable to first check the data for which the commuters are travelling between the new cities and a market research of how many would prefer a new air route and actually travel through it. Also the expansion of new businesses does not necessarily mean that the number of passengers from those areas may increase, if on their main routes old businesses are extensively hiring the number of passengers may increase substantially on those routes rather than a new route.
Secondly the argument would have been much clearer if it stated the reason for decline in the number of passengers on their old route, the argument does not take into account the reason for their decline in the number of passengers on their main route, which is important to establish a new strategy, for example, if it is because of their poor service, then the company must quickly adapt to the industry norm or even outperform their competitors otherwise they will meet the same fate on the new route that they face on old routes. Therefore understanding the reason for the decline should be of primary importance to develop a new strategy to increase profits.
Finally the argument assumes without any evidence that a discount of 1/3rd of their price of tickets two days prior to the flight which would be non refundable would be more profitable than their earlier given refundable tickets. This statement in itself has many flaws, for example, flight companies need to prepare for their flights much in advance and if the consumers are aware of this policy they will not buy tickets till two days before even if they intent to travel later was clear, the flight would therefore have minimum or no bookings and would therefore have to cancel the flight, also there is no information given on the average number of tickets cancelled on a flight, without that information it is impossible to conclude what the argument has claimed.
The following argument has come to conclusions without taking into account many different perspectives which is harmful to any company while preparing their strategies, and without the following information the argument remains unsubstantiated and open to debate.