Decision-making – Courses of Action for a public transport scenario Statement: Due to a substantial reduction in airfares by different airline services, a large number of passengers who previously travelled by the upper classes in trains have switched over to airline services. Courses of Action: I. The railways should immediately reduce the fare structure of the upper classes substantially to retain its passengers. II. The railways should reduce the capacity of upper classes in all trains to avoid loss.

Introduction / Context:
This problem belongs to the “Courses of Action” category. We are given a factual situation about passenger migration from premium rail classes to airlines because of reduced airfares. The task is to evaluate which proposed actions logically and prudently address the stated problem without introducing unnecessary assumptions.

Given Data / Assumptions:

• Airlines have substantially reduced fares.
• Many upper-class rail passengers have switched to air travel.
• Objective: retain or stabilize railway ridership and revenue in premium classes.

Concept / Approach:
Valid courses of action should be feasible, directly address the cause, and be preventive or corrective with minimal adverse side effects. An action that can be immediately implemented, targets the reason for the shift (price), and remains service-oriented is preferable to an action that reduces service availability.

Step-by-Step Solution:

Verification / Alternative check:
Price elasticity in premium travel is significant. A tactical fare recalibration or value-added bundling (meals, lounge access, better refund terms) tackles the root cause, while capacity cuts merely shrink the product and can amplify loss if demand returns.

Why Other Options Are Wrong:

• Only II follows / Either I or II follows / Both I and II follow: II neither treats the cause nor constitutes a prudent first response.
• Neither I nor II follows: I is a direct, reasonable response.

Common Pitfalls:
Confusing demand-side problems with supply-side fixes; thinking reducing supply automatically reduces loss without considering reputation and future demand.

Final Answer:
Only I follows