What are economies of density as referred to in the airline industry?
A)Reducing the size of an aircraft used to increase load factor
B)Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network
C)Economies of scope along a given route
D)Economies of scale along a given route
E)Reductions in average cost as traffic volume decreases

Question

Quizplus · Accepted Answer

Economies of density refer to reductions in average cost as traffic volume increases along a given route, which is a form of economies of scale but specifically applied to the context of increasing traffic volume on a particular route.

What Are Economies of Density as Referred to in the Airline