What load factor is required to break even using

Assignment Help Civil Engineering
Reference no: EM13539156

A Chicago-based international air carrier plans to purchase a jumbo-class aircraft (Airbus A-340-600 or B777-200IGW) to serve the Chicago-London city pair. Restrictions in landing slots at Heathrow airport in London allowed the purchase of five landing/takeoff slots, one per weekday (Monday through Friday). The carrier does not intend to offer weekend service. Therefore, the carrier will offer daily round-trip flights Monday through Friday. The following table presents passenger demand estimates and fares charged by competitors:

TRIP weekly demand Fare

Chicago-London-Chicago 840 $920

Chicago-London (one way) 240 710

London-Chicago-London 925 960

London-Chicago (one way) 345 770

The airline company estimates that the average passenger load will be 95 percent, due to fluctuations in the demand for travel. Estimated passenger revenue should be calculated by proportionally assigning passengers from the different fare categories. Calculate the revenue for each direction (it will most likely be different).

The round trip Chicago-London-Chicago is 8100 miles and the aircraft choices and respective costs are as follows:

Aircraft Seating Operating Annual Fixed

Capacity cost per cost

seat-mile

B777-200IGW 310 11.25 cents $17.7 million

A340-600 385 11.55 cents $19.4 million

Can the airline operate at a profit using the B777-200IGW? How much profit or loss (per week) is realized using the B777-200IGW?

Can the airline operate at a profit using the A340-600? How much profit or loss (per week) is realized using the A340-600?

What Load Factor (percent of seats occupied) is required to break even using the B777-200IGW?

What Load Factor (%) is required to break even using the A340-600?

Reference no: EM13539156

Questions Cloud

Based on the five sources of power presented in the chapter : Based on the five sources of power presented in the chapter text, which ones are relevant to fostering the diversity competency by leaders
What would be the standard deviation : A student received the following grades: An A in Statistics (4 credits), a F in Physics II (5 credits), a B in Sociology (3 credits), a B in a Literature seminar (2 credits), and a D in Tennis (1 credit).  Assuming A = 4 grade points, B = 3 grade poi..
What is the expected value of app : What is the expected value of your app? What is your utility at that income?
Data and technology mean in the context online education : What do the words data and technology mean in the context online education?
What load factor is required to break even using : A Chicago-based international air carrier plans to purchase a jumbo-class aircraft (Airbus A-340-600 or B777-200IGW) to serve the Chicago-London city pair
A senior colorist at the cosmetic manufacturing company : A senior colorist at the cosmetic manufacturing company
Determine the radius r of the inner core of the shaft that : For a given hypothetical flow, the velocity from time t=0 to t=5s was u=3m/s, v=3m/s. then from time t=5s to t=10s, the velocity was u=2m/s, v=2m/s. A dye streak was started at a point in the flow
A combination of the width reduction and the bottom step : A 50 meter wide rectangular channel is carrying a flow of 250 m3/s at a flow depth of 5 meters. To produce critical flow in this channel, determine
Long-term consequences will be for families losing income : Have you, or do you personally know anyone who has faced a reduction in hours due to the economy? How would your life change if your salary (or your family's income), was cut in half? What do you think the long-term consequences will be for famil..

Reviews

Write a Review

Civil Engineering Questions & Answers

  Engineering ethics and ethical issue

what is the engineering ethics course where to write about any engineering ethical case and discuss the ethical issue?

  Engineering ethics and concept and cases

what is the engineering ethics case related to civil engineering with reference and discuss all the engineering ethics issues which covered the "Engineering etics concepte and cases?

  Transportation and management

In the construction management, there is a lot of procurement route that are necessary and suitable for the construction industry.

  Supporting Investment Promotion: ERNST & YOUNG

Ernst & young is currently providing support to various sectors. In this regards it was felt that if this report is able to document good practices currently being adopted or planned in ceramic sector.

  Personalized Cancer Therapy-A step forward

Cancer is the uncontrolled growth of abnormal cells in the body resulting in tumours that can be benign or malignant (cancerous cells). A proper treatment is necessary to fight with this serious disease.

  Discuss the different environmental companies

Discuss the different agencies, institutes, centers, different environmental companies that are active in UAE.

  Develop a simple urban constructed wetland design

Develop a simple urban constructed wetland design.

  Evaluate company performance in relation to GRI standards

Evaluate company performance in relation to GRI standards and comment on Stigler's theory.

  Water system design

Determine the corresponding error in the computed discharge

  Hydraulic behaviour in open channel

Describe how test flumes and associated equipment are used to assess and confirm hydraulic behaviour in open channel

  Write a paper on steel sustainability

Write a paper on steel sustainability.

  Writing case study about bridge collapse

Writing case study about bridge collapse

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd