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5. Both Hong Kong based airline, Cathay Pacific (CX) and Singapore based airline, Singapore air (SQ) provide direct flight services: 1. Hong Kong (HKG) -
5. Both Hong Kong based airline, Cathay Pacific (CX) and Singapore based airline, Singapore air (SQ) provide direct flight services: 1. Hong Kong (HKG) - Singapore (SIN); 2. Singapore (SIN) - London (LHR); 3. HKG - LHR. You are an airfreight forwarder, received shipment requests as follows: Shipment Origin Destination Gross Weight (kg) Volume (Cubic meter) HKG SIN 1250 Sell Rate (HK$) /kg HKD $ 15 HKG LHR 1265 5.5 HKD $ 30 SIN LHR 1131 8.5 HKD $ 22 HKG LHR 865 6.5 HKD $ 31 SIN LHR 1450 6.5 HKD $ 20 HKG SIN 920 9 HKD $ 14 There are two potential airlines, offering ULD sale, with details as follows: Q6 ULD: Pivot weight: 2300kg, Max weight: 3000kg, Max volume: 16 cubic meter 1 USD equals to 7.8475 HKD; 1 USD equals to 1.3464 SGD; Route (Pivot weight charge cx SIN and over pivot weight charge) HKG SIN HKD $30,000 ; HKD $13/kg SGD $5,800; SGD $2.3/kg HKG LHR HKD $86,000 ; HKD $31/kg SGD $14,000 ; SGD $5.3/kg SIN LHR HKD $50,000 ; HKD $22/kg SGD $8,500 ; SGD $3.2/kg b. Assuming no equalization scheme offered by both airlines, the charge for consolidation and de-consolidation at Singapore airport is SGD $200 per shipment, charged by the container terminal. Note that shipment staying at the ULD for next journey will not be charged. Compare the cost for both airlines for transferring at the Singapore Airport. What is your profit/loss based on your best decision? (15 marks)
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