Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Credit Risk Of Complex Derivatives

Authors: Erik Banks

3rd Edition

1403916691, 9781403916693

More Books

Students also viewed these Accounting questions