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A Delta flight from ATL to PUJ ( Punta Cana, Dominican Republic ) has a capacity of 1 0 0 passengers and fills up quickly
A Delta flight from ATL to PUJ Punta Cana, Dominican Republic has a capacity of passengers and fills up quickly for the Thanksgiving holiday. Delta does not want any seats to be wasted on this flight due to noshows. The ticket costs $ In the past, noshows have ranged uniformly from to If Delta cannot accommodate a passenger on this flight, the passenger will be sent to Miami on a Delta flight and then to San Juan, PR on an American Airlines flight. The passenger will spend the night at a San Juan airport hotel. The next morning, the passenger will be flown by American to Punta Cana. In addition to the denied boarding compensation DBC based on the USDOT formula, Delta airline needs to pay American Airlines $ for reaccommodation. The hotel and food vouchers cost $ Compute the optimal overbooking limit
a What is the DBC based on the USDOT formula?
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b What is the total denial cost?
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c What is the optimal overbooking limit
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