Question
Air New Zealand is negotiating with an aircraft leasing company over the lease contract for some additionalairplanes.The lease company is their only potential supplier of
Air New Zealand is negotiating with an aircraft leasing company over the lease contract for some additionalairplanes.The lease company is their only potential supplier of aircraft.Any airplanes that Air New Zealand does not want can be leased in the United States to small regional airlines, for about $2m per year.
Air New Zealand has a few routes on which it is considering using the aircraft:
- Christchurch-Queenstown: one extra airplane would earnAirNZ an additional $4m profit per yearon that route, two extra airplanes would earn them $5m per year on that route (relative to current profits)
- Wellington-Auckland: one extra airplane would earn them an additional$10m per year, two extra airplanes would earn $13m per year on that route (relative to current profits)
- Wellington-Nelson: one extra airplane would earn them an additional $4m per year relative to current profits
1. How many airplanes does AirNZ lease? On which routes?
Group of answer choices
- Two, for use on the Auckland-Wellington route
- Four; two on the Christchurch-Queenstown route andtwo on the Auckland-Wellington route
- Four; one on the Christchurch-Queenstown route, two on the Auckland-Welllington route, and one on the Wellington-Nelson route.
- Five.
2. What is the negotiated (per year) payment to the lease company? Please enter a whole number with no dollar sign. (So if your answer is $9 million, enter 9000000.)
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