Decision making: Evaluating options in context of model

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gary_

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After the U.S. invasion of Iraq, the price of jet fuel used by airlines increased dramatically. As the CEO of an airline company, you have been presented with the following options.

Evaluate these options in the context of decision making model.

a) raise airfares to offset cost increases
b) reduce the number of flights per day in some market
c) make long term contracts to buy jet fuel at a fixed price for the next two years and set airfares to a level that will cover these costs

I am not sure what i am supposed to comment on, can you guys give me some suggestions? thanks.
 
You are supposed to think about them and see what additional implications might be included with your choices.

Very quickly:

a) You might sell fewer tickets at higher prices.
b) You WILL sell fewer tickets in those markets but you might irritate travellers in those areas.
c) You risk expensive fuel costs if prices go back down after you sign the contracts.

OKay, now you come up with some other implications of your choices.
 
ok, so i am supposed to comment on what the effects will be on each option, I see. Thanks.
 
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