Reference no: EM133048736

For each of the following statements, please identify the mistake and explain why it is incorrect. 

1. On a typical directionally imbalanced air-borne trade route, the directionally different freight rates are caused by directionally imbalanced supply of cargo carrying capacity.
2. Currency revaluation will reduce air cargo traffic.
3. Highway development will reduce an airport's cargo throughput because more destinations can be reached by trucking.
4. Any airline owned and controlled by Chinese citizen can operate routes specified in the bi-lateral air service agreements signed between China and other states.
5. A Hong Kong-based airline obtains 5^th freedom for the Hong Kong --> Vancouver (Canada) --> New York City route. To operate this route, the airline can use B747 on the Hong Kong --> Vancouver leg and B737 on the New York City route.