An incentive is defined as a fee reduction, fee waiver, or use of airport revenue to encourage what?

• A. Increased airline service at the airport
• B. Reduced employee wages
• C. Expanded terminal capacity
• D. Marketing expenditure

Answer: (A)

The main idea here is that incentives are tools used to attract more airline service to an airport. When an incentive takes the form of a fee reduction, a fee waiver, or using airport revenue to support carriers, the aim is to lower the cost or increase the value of serving that airport for airlines. That makes the airport more attractive for adding or expanding routes and frequencies, hence increasing airline service.

The other options don’t fit this intent. Reducing employee wages doesn’t relate to enticing airlines to operate at the airport. Expanding terminal capacity is about infrastructure to handle more traffic, not a selective incentive to attract more service. Marketing expenditure could promote the airport, but the specific incentive described is about reducing costs to carriers, not general marketing spend.