You have just been hired as an intern by Easy Air and have been assigned to Sanjiv to help him with the major analysis of Easy Air’s operational and profit performance. As a first part of the task, Sanjiv asks you to do a trend (for example, degree of change, both magnitude and percentage) for all of the performance measurements in Easy Air’s database. These figures are included in the following table (see Summary Easy Air facts and solution template DB 2.3a and DB 2.3b in the workbook for this problem):

REQUIRED:

a. Using the Easy Air database templates for this problem, calculate the magnitude of change for each of Easy Air’s performance measures.

b. Using the corresponding worksheet titled DB 2.3 template, calculate the percentage change for each year. Make 20x6 your base year and work backward in time.

c. Turn in your completed worksheets and then answer the following three questions:

d. What do the trend numbers suggest? Make sure to pay attention to both the magnitude and percentage change numbers in crafting your answer.

e. What would you recommend to Sanjiv? Why?

f. What other information would you like to have? Why?

Transcribed Image Text:

Summary of Easy Air's Performance 20x4-20x6 Performance Indicator 20x6 20x5 20x4 Total flights flown 3,575,240 3,489,434 3,297,515 Total passengers flown 373,369,464 363,557,175 342,354,639 Total revenue seat miles flown (in thousands) 54,405,612 53,796,413 48,215,413 Available seat miles in thousands) $63,557,958 $62,993,458 $56,657,360 Averoge miles per passenger flight 265 260 233 Number of stations 120 112 106 Total operating revenue in thousands) $9,303,359.7 $9,521,965.1 $9,112,713.1 Total operating expenses Gin thousands) $8,899,038.1 $8,536,503.9 $7,430,858.9 Operating profit Gin thousands) $404,321.6 $985,461.2 $1,681,854.1 Average revenue per revenue seat mile flown $0.171 $0.177 $0.189 Averoge expense per revenue seat mile flown $0.164 $0.159 $0.154 Average profit per revenue seat mile flown $0.007 $0.018 $0.035 Average load foctor C% seats filled per flight) 85.6% 85.4% 85.1%