Read the following passage carefully and answer the question. For all the disagreement in the industry about the future of aviation, on one point : ‘There is going to be a lot more of it. The world’s air passengers flew a combined 7.64 trillion kilometers in 2017. By 2037, that will rise to 18.97 trillion kilometers, with about 40% of increase happening within five intra-regional markets : China, India, North America, Europe and South-east Asia. That is sparking a battle over the biggest bottleneck holding airports. The governments that still own many of them should be more open to privatisation to cover a $ 78 billion funding gap in needed capital investments. Airlines, airports’ biggest customers see things differently. Costs at privatised terminals are higher and governments should be cautious about such actions in the interests of expanding the aviation sector as a whole. Privatising an airport does not necessarily make it more efficient. A study has found there was little difference between the performance of airports 100% owned by commercially-oriented Government corporations and those majority controlled by private businesses. The key is instead to avoid the structures where the incentives for managers are confused or misaligned, such as where private companies are brought in as minority investors or where managers are swayed by political imperatives. There is a better solution out there, but it is not likely to be very attractive to incumbent airlines, airports, or passengers enamored of the current generation of gleaming terminals : build more, cheaper airports.
What is the key for making airports function efficiently ?
Avoid structures of confused incentives to managers.
The given question asks about the key to making airports function efficiently, based on the provided passage. To determine the correct answer, let's analyze the passage step-by-step:
- The passage highlights that despite disputes in the aviation industry about its future, an increase in air travel is expected.
- It suggests that governments, which still own many airports, might need to consider privatization to bridge a $78 billion funding gap for necessary capital investments.
- The passage states privatizing airports does not automatically lead to increased efficiency.
- A critical point made is that efficiency depends on avoiding confused or misaligned incentives for managers.
- Examples discussed include adverse effects when private companies are minority shareholders or when managers' decisions are influenced by political considerations.
- The passage concludes that the best solution might be to build more cost-effective airports rather than relying solely on the current privatization model.
Based on this analysis, let's evaluate the given options:
- Avoid structures of confused incentives to managers. - This option aligns with the passage's main point regarding the inefficiency caused by confused managerial incentives.
- Provide misaligned incentives to managers. - This contradicts the passage, as misaligned incentives are said to cause inefficiency.
- Make private companies as minority shareholders. - The passage suggests that this scenario can lead to confusion and inefficiency.
- Recognize political imperatives of bureaucrats appointed as managers. - The passage indicates that political influences can contribute to inefficiencies.
The correct answer, according to the passage, is to Avoid structures of confused incentives to managers. This provides clarity and focus for managers, allowing them to act in the best interest of airport operations and efficiency.
Similar Questions
The principles of effective writing useful for both students and teachers are
(a) Stress on hyperboles
(b) Liberal use of adjectives
(c) Clarity
(d) Conciseness
(e) Correctness
(f) use of complex sentences
Choose the correct option from the following:Given below are two statements − one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: Pedagogy and social interaction are two major result-oriented activities of a teacher
Reasons R: Communication has a limited role in both these activities
In the light of the above stated two statements, choose the correct option from the choices given below:Successful educational communication is dependent upon the skills of
(a) Understanding the negative characteristics of the audience
(b) Verbal communication and body language
(c) Estimating time for audience impact
(d) Analysing the audience needs
Choose your answer from the following options:Effective educational communication is
A key element for effective classroom communication is
Why should the governments be open to privatization of airports ?
What is the growth rate in aviation apart from the five intra-region markets?
How do airlines see the move for privatization of airports ?
(a) Feel that costs are high
(b) Governments should be cautious
(c) Interest of the aviation sector is important
(d) It decentralizes the authority to control
Which of the following is the focal inference of the author in the passage ?
In a classroom, communication becomes effective when participants are:
(a) Active
(b) Empathetic
(c) Heterophilous
(d) Homophilous
(e) Silent
(f) Uncritical
Code :
Important Questions from Effective Communication
- Writing will need to meet a number of requirements to successfully pass the readability stage
They are
(i) Sentences must be well formed syntactically
(ii) Sentences should not be below a minimum length
(iii) Recursion must be kept to a minimum
(iv) Choice of words should invary
Choice the correct answer from the options given below : - Effective Development Communication is influenced by which of the following factors ?
(i) Dissemination of Information
(ii) Use of the Information by users
(iii) Location of the users
(iv) Size of the audience
Code : - Arrange the steps in preparing and delivering a public speech :
(i) Organise your speech.
(ii) Rehearese and deliver your speech
(iii) Select your topic and purpose
(iv) Analyse your audience
(v) Research your speech topic
code : The principles of effective writing useful for both students and teachers are
(a) Stress on hyperboles
(b) Liberal use of adjectives
(c) Clarity
(d) Conciseness
(e) Correctness
(f) use of complex sentences
Choose the correct option from the following:Given below are two statements − one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: Pedagogy and social interaction are two major result-oriented activities of a teacher
Reasons R: Communication has a limited role in both these activities
In the light of the above stated two statements, choose the correct option from the choices given below:
