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As the CEO of an expanding airlines cargo division, would you acknowledge that an in crease in your operations would be harmful to the passenger division? Should you be charged for the increased use of shared maintenance facilities? Q12.28

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The increase in operations could be harmful to the passenger division since excess operations may deteriorate the quality of services. Excessive sharing of maintenance facilities will bring a decline in the quality of service. The firm would be having limited resources which are distributed amonst a certain number of passengers. With increase in the passengers but resources being the same, the resources that each passenger gets are reduced thus bringing a decline in the quality of services. As CEO, this has to be acknowledged and taken into consideration.

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