Senilria Airlines has started a new flight from Rome to Palermo, Sicily, once a week on Monday

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Senilria Airlines has started a new flight from Rome to Palermo, Sicily, once a week on Monday mornings and has operated the flight for the last 12 weeks. Senilria offers three booking classes on the flight: B-Class with a fare of €70, M-Class with a fare of €120, and Y-Class with a fare of €200. The demand for each fare class for each of the previous 12 flight departures is shown in Table 9.9.

a. Assume that Senilria has assigned a 200-seat aircraft to this flight for the initial 12 flights and for the next flight. Using the data-driven approach, what would be the recommended booking limits for each of the three classes for the 13th departure? What is the expected revenue?

b. Assume that Senilria is considering assigning a 225-seat aircraft to the Rome-to-

Palermo flight for the next departure. Given a capacity of 225 seats, what are the recommended booking limits for each of the three classes for the 13th departure?

What is the expected revenue? What is the additional revenue from the 25 seats of extra capacity?

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