(a)[3]
What evidence in the article shows that BA’s costs are higher than those of its competitors?
(b)[6]
The article states that ‘the cheapest seats on BA are still more expensive than those of no-frills competitors on the same route’. Explain when price discrimination can occur and discuss whether this counts as price discrimination.
(c)[4]
All airlines list their fares, so each one knows the prices set by rivals. Does this mean that the market for airline seats is perfectly competitive?
(d)[3]
Explain what is meant in the context of the article by the phrase ‘the market has spoken’.
(e)[4]
Is there enough evidence in the article to suggest that BA’s recent policy changes might increase profits?