Airlines deregulation

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Airlines deregulation

by prakhag » Mon Nov 29, 2010 8:50 pm
When airlines were deregulated in the 1970s, the average price of a ticket was $135. Three decades later, the average price is $275, there are twice as many in air collisions, fliers in small markets are at the mercy of predatory carriers, and air rage is at an all-time high. It is time to re-regulate the air travel industry.

All of the following statements, if true, weaken the above argument except for which statement?

A. Because of inflation, a $275 ticket today is actually 10 to 20% less expensive than a $135 ticket was in 1975.

B. Deregulation has increased the choices available to fliers in terms of both time of flight and carrier.

C. Airlines are currently flying more than five times as many passenger miles per year as they did in 1975.

D. Compared with passengers in large urban aread, passengers in small markets pay, on average, twice as much per mile flowin on domestic flights because their airports are generally served by fewer airlines.

E. Psychologists have been able to determine no connection between the deregulation of the airline industry and the onset of increased levels of air rage.

Please provide explanations for your answers.

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by jaxis » Mon Nov 29, 2010 11:28 pm
C seems to be the best.

Because it explains both price increase and number of accidents efficiently compared with A. And the rest are simply irrelavent.

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by sanabk » Tue Nov 30, 2010 1:09 pm

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by rkanthilal » Tue Nov 30, 2010 2:36 pm
I like C as well...

P1: When airlines were deregulated in the 1970s, the average price of a ticket was $135.
P2: Three decades later, the average price is $275, there are twice as many in air collisions, fliers in small markets are at the mercy of predatory carriers, and air rage is at an all-time high.
C1: It is time to re-regulate the air travel industry.

The passage notes that airlines were deregulated in the 1970's. It then provides four examples of how flying today is worse than flying before deregulation. The passage then concludes it is time to re-regulate the air travel industry. This implies that the author believes that re-regulating the airlines will help ease the current problems.


All of the following statements, if true, weaken the above argument except for which statement?

The conclusion is that airlines should be regulated. Four of the answers weaken this conclusion by attacking the reasons the author has provided for why flying is worse today than in the 1970's. We need the one answer that does not weaken the argument.


A. "Because of inflation, a $275 ticket today is actually 10 to 20% less expensive than a $135 ticket was in 1975." Incorrect. The increased cost of flying is one of the reasons the author gives for why the airlines should be regulated. This answer weakens the argument because it shows that the increased ticket price adjusted for inflation is actually less than the 1975 price.

B. "Deregulation has increased the choices available to fliers in terms of both time of flight and carrier." Incorrect. This answer describes a benefit of deregulation. Since this answer provides a benefit of deregulation it weakens the argument for regulation.

C. "Airlines are currently flying more than five times as many passenger miles per year as they did in 1975." Correct. This answer is at worst neutral and at best it strengthens the conclusion in favor of regulation.

D. "Compared with passengers in large urban areas, passengers in small markets pay, on average, twice as much per mile flown on domestic flights because their airports are generally served by fewer airlines." Incorrect. The author notes that, "fliers in small markets are at the mercy of predatory carriers". This answer states that the reason that passengers in smaller markets pay more for tickets is because their airports are generally served by fewer airlines. This answer weakens the conclusion because it provides an alternative reason for the higher prices at smaller airports. The higher prices are not caused by deregulation, they are caused by the shortage of airlines serving the market.

E. "Psychologists have been able to determine no connection between the deregulation of the airline industry and the onset of increased levels of air rage." Incorrect. The author states that "air rage is at an all-time high". This answer provides evidence that severs any link between deregulation and air rage. Air rage and deregulation are not related. This weakens the conclusion by taking away one of the reasons the author provides in support of regulation.

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by akthegmatcracker » Thu Dec 02, 2010 11:11 pm
I think B is the correct choice.
Flexihours is a very supportive reason.

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by smayekar » Fri Dec 03, 2010 12:40 am
The conclusion is that the Airlines have to be regulated.
Weaken the argument would tell us that why they should remain deregulated.

Also I could consider opposite option as answer chioce i.e. of below, which option would strengthen my conclusion of why airlines need to be regulated.

Option D states that prices have increased.

Hence I think D.

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by kapur.arnav » Thu Dec 09, 2010 10:59 am
smayekar wrote:The conclusion is that the Airlines have to be regulated.
Weaken the argument would tell us that why they should remain deregulated.

Also I could consider opposite option as answer chioce i.e. of below, which option would strengthen my conclusion of why airlines need to be regulated.

Option D states that prices have increased.

Hence I think D.
Another vote for D...

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by rkanthilal » Thu Dec 09, 2010 6:36 pm
kapur.arnav wrote:
smayekar wrote:The conclusion is that the Airlines have to be regulated.
Weaken the argument would tell us that why they should remain deregulated.

Also I could consider opposite option as answer chioce i.e. of below, which option would strengthen my conclusion of why airlines need to be regulated.

Option D states that prices have increased.

Hence I think D.
Another vote for D...
I think you guys are right about (D).
I don't know what I was thinking when I wrote my explanation for this one...

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by arora007 » Mon Dec 13, 2010 3:06 am
I still am not convinced about D. We cannot assume with D, that there is need of deregulation/re-regulation of only small market or urban market airlines. The entire airline industry is being addressed in the deregulation/re-regulation. The net effect is not known.

I still think C could be a better choice. C remains neutral and we will have to assume things to infer strengthening/weakening from it.
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by GMATGuruNY » Mon Dec 13, 2010 3:58 am
prakhag wrote:When airlines were deregulated in the 1970s, the average price of a ticket was $135. Three decades later, the average price is $275, there are twice as many in air collisions, fliers in small markets are at the mercy of predatory carriers, and air rage is at an all-time high. It is time to re-regulate the air travel industry.

All of the following statements, if true, weaken the above argument except for which statement?
Conclusion: The airlines should be regulated.
Premises: The increase in price, air collisions, and air rage. Fliers in small markets are at the mercy of predatory carriers.
Assumptions: That deregulation is causing the problems listed above. That there are no benefits that justify the deregulation. That there are no negative effects that would be caused by re-regulation.

We need to eliminate the 4 answer choices that weaken the conclusion that the airlines should be regulated.

A. Because of inflation, a $275 ticket today is actually 10 to 20% less expensive than a $135 ticket was in 1975. Shows that inflation, not deregulation, is causing the increase in price. Weakens the causal assumption made in the argument. Eliminate A.

B. Deregulation has increased the choices available to fliers in terms of both time of flight and carrier. Shows that deregulation has a benefit. Eliminate B.

C. Airlines are currently flying more than five times as many passenger miles per year as they did in 1975. Shows that an increase in the number of passengers might be causing the problems listed in the argument. Weakens the assumption that deregulation is causing these problems. Eliminate C.

D. Compared with passengers in large urban areas, passengers in small markets pay, on average, twice as much per mile flying on domestic flights because their airports are generally served by fewer airlines. Correct. Strengthens the conclusion that the airlines should be regulated.

E. Psychologists have been able to determine no connection between the deregulation of the airline industry and the onset of increased levels of air rage. Weakens the assumption that deregulation is causing the air rage. Eliminate E.

The correct answer is D.
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by arora007 » Mon Dec 13, 2010 4:20 am
The mist clears! thanks guru!!
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by target_gmat2012 » Thu Dec 23, 2010 9:09 am
nice explanation