Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.Small airline flies 10,000,000 seat miles per year. Yield is 10 cents per RPM. Cost per available seat mile or CASM is 8 cents, so
1.Small airline flies 10,000,000 seat miles per year. Yield is 10 cents per RPM. Cost per available seat mile or CASM is 8 cents, so the annual costs are 8 cents (.08) x 10,000,000 or $800,000. After calculating the break-even load factor as a percentage of ASMs is this airline breaking even? If not, what would you change to break even? (.10 x 10,000,000) - (.08 x 10,000,000) = 200,000 200,000/10,000,000 LF B-E .02 or 2% what is the Load Factor
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started