Current event
1. Outline a current event that is related to Delta Future Routes.
You are limited to 100 words.
2. Suppose the cost of operating a 2-hour flight is $2500/hr. The flight is operated with a 90- seat aircraft – 20 first class seats and 70 economy seats. The first class airfare is $130, and the economy airfare is $86.29. Assuming that the load factor for first class is always ½ (half) of that for economy class, what is the overall breakeven load factor for the flight?
3. Assuming that Flight 327 is operated with a 189 seats B737-800 (one class configuration). You have developed a two-tier fare structure with full fare price at $254 and discount fare at $114. The following is the distribution of demand for the full fare over the past12 months, and the partial list of cumulative probability for number of full fare passengers that are likely to fly.
The mean demand for full fare seats is 72 passengers for this flight, with standard deviation of 31.
(a) Please decide a spill rate for the full fare, and how many seats you should allocate to full fare under this spill rate?
(b) Assuming that you can always sell out the discount seats, what would be the expected overall load factor for this flight (mean demand is the expected demand for full fare)? What would be the expected revenue for the flight?