GMAT Essays (AWA)

The following appeared in a memorandum from the business planning department of Avia Airlines:

"Of all the cities in their region, Beaumont and Fletcher are showing the fastest growth in the number of new businesses. Therefore, Avia should establish a commuter route between them as a means of countering recent losses on its main passenger routes. And to make the commuter route more profitable from the outset, Avia should offer a 1/3 discount on tickets purchased within two days of the flight. Unlike tickets bought earlier, discount tickets will be nonrefundable, and so gain from their sale will be greater."

Discuss how well reasoned you find this argument. In your discussion, be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion. (used with permission from mba.com)



The above arguments are presented in a memorandum from the Business Planning department of Avia Airlines. The above arguments states that in order to increase the airlines profit and offset the losses suffered by the airline from its main passenger route, the airline should establish a commuter route between Beaumont and Fletcher, which are the fastest growing Business Centers. Moreover the airlines also plans to offer 1/3 discount on the tickets purchased within two days of the flight along with a nonrefundable tickets for such cases. this will increase the sale of the airline to a greater extent. While the airlines claim is not without substance its is poorly reasoned on part of the Airlines.

Firstly, The Airlines assumes that the growing new business at Beaumont and Fletcher will surely help it to improve its profit Margin. The author has not given enough evidences to substantiate his claim. This brings about a very important question which remains unanswered in the premise provided the airlines department. How and Why does it believes that the passengers will take its Flight to travel to these new Business Hub? It can be that these new cities are growing in Business internally and do not require air travel. Then of course the author fails in proving his point. Thus a lack of evidence about why the author believes that the new growing Business will help the airline leaves the Premise unjustified.

Next, The author assumes that losses on its main passenger route can be offset by the introduction of this new commuter route. While the Authors claim may be true but it does not have to be true. The first question which comes to the mind of a reader is why is the airline operating in losses in the main passenger Route? It could be that the Facilities offered by the airline, its operating, its infrastructure or its timing may not be well appreciated by the customers. If any of the above reasons be true then there is no reason for the author to assume that the new route will help it recover the losses. Even if the Airline starts operating in new route and does not check for the reasons for it was going in losses, this new route may also bring in losses for the Airline. Thus we can see that the author's assumption is poorly reasoned as he assumes that all other factors for the airline is fine and only with the growth in new business route will help it to recover the losses.

Next, the author discusses about giving 1/3 discount for the Tickets bought within two days and also unlike tickets bought earlier , discounts ticket will be nonrefundable. While the author may be overtly optimistic about increase in sale but it can also offset the sale if we try to look from Passengers point of view. The passenger may not be will to buy these kind of tickets as they may suffer loss because of these plans.


Thus In summary, it can be seen that the author presents a poorly reasoned premises and unsubstantiated argument before its readers. If the author could have given more information about the reasons of his believe in the premises and arguments then he could have justified his standpoint to a greater extent. In absence of these the above arguments are poorly justified.