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AvAir, a regional airline, reported miles flown data as shown in Table 1, below. In January 2002 AvAir added aircraft to its fleet and changed the method of scheduling maintenance.
REVENUE SEAT MILES (000's) AVAILABLE SEAT MILES (000's)
2006 2007 2006 2007 January
10,584
13,330
16,100
18001
February
11,100
13,900
16,040
17940
March
11,500
14,145
16,010
17,932
April
12,050
14,895
15,900
17,920
May
12,550
15,110
15,890
17,898
June
12,910
15,892
16,025
17,863
July
13,180
15,925
17,810
August
13,100
15,843
17,765
Sept.
13,106
15,991
15,861
17,722
October
12,900
15,832
17,660
November
13,001
19,952
15,815
17,625
December
13,050
16,012
15,804
17,540
a. Review the data and suggest area(s) where problems or discrepancies may exist.
b. Which forecasting method, from among those discussed in the text and in class, best predicts revenue seat miles (RSM), and available seat miles (ASM)? Justify your answers.
c. If no additions are made to the AvAir's fleet or practices, when do you predict that AvAir will no longer be able to increase revenues from passengers? Assume that non-revenue passenger miles are 5% of revenue miles.
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