Sunseeker Airlines Inc. offered weekly charter flights to several destinations in Florida. Its aircraft on the Miami route had a 250-seat capacity. From past experience Sunseeker knew that approximately 10% of passengers who booked seats would not show up, which meant it could reserve 275 passengers for the Miami flight.
In late December it appeared that sales were not progressing well for the late January flights. The sales managers decided to have a seat sale in order to fill up the flights. Accordingly, advertisements were prepared and appeared in three major national newspapers on the first weekend in January offering the seat sale for the January 20^th departure. The sale price offered was $149 rather than the regular fare of $219. Beatrice saw the seat-sale advertisement in the Sunday newspaper. Not realizing that the airline was open for booking on Sunday, she did not call until Monday morning. At that time she was told by the booking agent that the January 20^th flight was fully booked. Beatrice was offered a flight on the following Saturday departure, January 27, at $219. At the time of running the seat-sale advertisement Sunseeker had 3 actual seats available or 27 open reservations available considering the oversale factor. The newspaper advertisement cost over $12,000.
Discuss the issues raised by these facts. What are the rights and obligations of the airline in undertaking marketing activities?

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The Answer of Sunseeker Airlines Inc. offered weekly charter flights to several destinations in Florida. Its aircraft on the Miami route had a 250-seat capacity. From past experience Sunseeker knew that approximately 10% of passengers who booked seats would not show up, which meant it could reserve 275 passengers for the Miami flight. In late December it appeared that sales were not progressing well for the late January flights. The sales managers decided to have a seat sale in order to fill up the flights. Accordingly, advertisements were prepared and appeared in three major national newspapers on the first weekend in January offering the seat sale for the January 20^th departure. The sale price offered was $149 rather than the regular fare of $219. Beatrice saw the seat-sale advertisement in the Sunday newspaper. Not realizing that the airline was open for booking on Sunday, she did not call until Monday morning. At that time she was told by the booking agent that the January 20^th flight was fully booked. Beatrice was offered a flight on the following Saturday departure, January 27, at $219. At the time of running the seat-sale advertisement Sunseeker had 3 actual seats available or 27 open reservations available considering the oversale factor. The newspaper advertisement cost over $12,000. Discuss the issues raised by these facts. What are the rights and obligations of the airline in undertaking marketing activities?