In the mid-1990s,Continental Airlines in the United States chose to compete head-on with Southwest Airlines by launching Continental Lite,an alternative low-fare commercial airline passenger operation.Top executives at Continental had expected its no-frills operation to break even within a year of its inception,but the airline fell short of the goal.A source close to the company explained it by saying,"Its costs were too high,and its revenues were too low." Some observers criticized Continental's marketing efforts.When the no-frills service was first launched,it lacked a distinct name or identity,missing its chance to make a splash.Then Continental tried to sell three "brands" at once-Lite,a new premium service,and its more traditional long-haul domestic flights.As one rival expressed it,"You cannot be all things to all people."
-Refer to Continental Lite.The statement that Continental Lite had problems because "Its costs were too high,and its revenues were too low," after paying for airline activities it suggests that the airline had none of which of the following left over?
A) ROI
B) revenue
C) profit
D) returns
Correct Answer:
Verified
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