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An airline company is currently considering the elimination of its Sydney to Armidale flight route. The net result for the Sydney-Armidale and other flight routes
An airline company is currently considering the elimination of its Sydney to Armidale flight route. The net result for the Sydney-Armidale and other flight routes for the past 12 months is supplied below: Other flight routes Sydney-Armidale route Sale revenue $64,064,628 $5,037,602 Direct staffing costs $44,845,240 $3,778,202 Other direct flight costs $6,406,463 $1,007,520 Allocated administration and facilities costs $3,203,231 $755,640 Net result $9,609,694 - $503,760 If the Sydney to Armidale flight route is eliminated: . 75% of the staff which currently work on the Sydney to Armidale route will be made redundant. All other staff for this route will be retained and allocated to other duties. . $56,000 in transitionary costs will be incurred. Required: Evaluate and discuss whether the Sydney to Armidale flight route should be eliminated or retained. As part of your overall evaluation, consider financial, strategic and social factors
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