Route in terms of the airline commercial requirements

Reference no: EM133719593

Question 1) The Traffic rights Freedoms of the air are a set of commercial aviation rights granting a country's airline(s) the privilege to enter and land in another country's airspace. Discuss these freedoms of the Air with brief explanations and examples of each freedom where possible?

Question 2) GM Oils is a company that manufacture oil filters for Aircraft Engines; they have determined that the appropriate Sale price of each filter is $48. The factory fixed costs for production and marketing of oil filters is $15 million. Bearing this in mind, please answer following questions:

1. The product manager estimates that he can sell 800,000 oil filters at a price of $48. What is the largest variable cost per filter that GM Oils Company can pay and still achieve a profit of $1 million?

2. Suppose the variable cost is $30 per oil filter, what profit (or Loss) would GM expect?

Finance formulas that could be used for above finance questions:

1) Sales - Variable Cost VC- Fixed Cost FC = Net Income (N.I.).
2) BEP (Break Even Point) p.u = F.C / C.M.

Question 3) there has been a great shift in the Airline business as a result of Low Cost Carriers (LCC) new business model that had emerged during the last three decades. Many critics state that the LCC new business model had revolutionized the entire Airline industry. Bearing these facts in mind, discuss briefly the main elements of their business model and state the reasons for their success?

Question 4) South African Airways only operates a fleet of Airbus A340-600 aircraft, in a 2-class configuration with a maximum passenger capacity of 350. The aircraft have entered service on a number of short sector routes due to a lack of suitable narrow-bodied aircraft. There are therefore concerns about the feasibility of the aircraft to operate this route.

Your task is to analyze this route in terms of the airline's commercial requirements and the available payload of the aircraft based on an interpretation of the following limitations with corresponding operational flight plan (OFP).

You obtain the following limitations from the manufacturer's Airplane Flight Manual (AFM):

1. What is the reserve fuel requirement for each sector?
2. Based on the AFM limitations, calculate the:
A. Maximum structural payload,
B. Maximum reserve fuel at MZFW,
C. Maximum mission fuel at MLW.

Reference no: EM133719593

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