Final answer:
The query is regarding HighFlyer Airlines' business decision to increase airplane cabin space, affecting various design elements like engine and luggage placement, which would also impact operating costs and ticket sales.
Step-by-step explanation:
The student's question pertains to HighFlyer Airlines and their endeavor to build new airplanes with increased cabin space to enhance passenger comfort and potentially raise ticket prices. To achieve this, the airline is considering various research and development (R&D) projects that must meet a certain private rate of return. The airline has created a list of potential methods to enlarge cabin space, which would also necessitate changes to the airplane's design, such as the engine and luggage placement, as well as the optimal aerodynamic shape. The effect of these proposed changes on operating costs and ticket sales has been estimated and the value of the R&D projects has been calculated.
Additionally, the context provided covers the impact of deregulation on the airline industry, leading to more efficient flights with fuller seats, the development of hub-and-spoke systems, and increased safety under government oversight. The introduction of the Airbus A380 as the world's largest jetliner and the changes in the industry such as fare reductions, increased service, and job growth are also discussed.